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'Fast Money' Recap: Going With the Market's Flow

NEW YORK (TheStreet) -- The S&P 500 climbed 12.5 points to close at a record high of 1,940.46 on Thursday. 

On CNBC's "Fast Money" TV show, the trading panel took a look at today's action. 

Brian Kelly, founder of Brian Kelly Capital, said the European Central Bank seems to have given the all-clear signal to investors ahead of Friday's nonfarm payrolls report. Kelly bought German stocks, sold oil and copper and covered his short position in gold. 

Karen Finerman, president of Metropolitan Capital Advisors, said she bought protection in the form of SPDR S&P 500 Trust ETF (SPY) put options because the CBOE Volatility Index (VIX.X) is so low, now below $12. 

Dan Nathan, co-founder and editor of riskreversal.com, asked, what's to stop the Russell 2000 from re-testing its previous highs? He is a buyer of quality stocks with reasonable valuations such as Cisco Systems (CSCO), Ford (F), and General Electric (GE)

Pete Najarian, co-founder of optionmonster.com and trademonster.com, agreed with Finerman's decision to buy portfolio insurance in the form of SPY puts. He reiterated that the record low levels of volatility makes it extremely cheap for investors to use options as downside protection. 

Chris Verone, head of technical analysis at Strategas, told traders not to fight the trend. With the breakout over 1,925, the S&P 500 looks likely to challenge the 1,980 to 1,990 level. However, the index is slightly overbought so it could pullback to the 1,910 level, which he called a buying opportunity. Tenet Healthcare (THC) is his top pick and he has a $77 price target. 

Najarian said Citigroup (C) and Goldman Sachs (GS) continue to trade "extremely" well on the long side. He said Citigroup could rally to $60 if it begins spinning off foreign assets. Finerman said she is long Citigroup because it is undervalued.

Nathan argued that the risk-to-reward of being long the broader stock market doesn't look that attractive at current levels. Kelly suggested that investors stay long with "tight" stop-loss. His stop-loss in the S&P 500 is 1,908. 

Nathan said Amazon (AMZN) is likely to lose money on the reported smartphone the company is working on. Najarian added that it's tough to buy shares of Amazon due to the "razor thin" margins and incredibly high PE ratio. 

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