On CNBC's "Fast Money" TV show, the trading panel discussed the broader market.
Tim Seymour, managing partner of Triogem Asset Management, said investors should look for sectors that have been underperforming as the broader market moves higher. Specifically, he referred to the technology and energy sectors.
Dan Nathan, co-founder and editor of riskreversal.com, said the S&P 500 isn't that expensive based on forward earnings because of the record number of share repurchases and large cost-cutting plans. He doesn't find U.S. equities as a whole to have an attractive risk-to-reward setup.
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Brian Kelly, founder of Brian Kelly Capital, said that based on the market cap to GDP ratio, stocks have only been this high a few other times, namely in 2000 and 2007, before selling off severely. At the very least, the market is "fully valued" but can keep going higher for the time being due to low interest rates, M&A, and financial engineering.
Guy Adami, managing director of stockmonster.com, reasoned the stock market did not sell off in 2007 due to valuation but a collapse in the banking industry. He said the market seems likely to continue higher and he pointed out the strength in biotech stocks.
Itay Michaeli, vice president of Citi Research, has a buy rating and $43 price target on shares of MobilEye (MBLY) , which climbed 8% on Tuesday. He said the company's safety products can experience margin expansion in the future. The lower pricing points and high quality allows Mobileye to maintain market share, which also seems poised to grow.
Adami said the industry seems unlikely to be commoditized anytime soon. While the valuation is high, the stock is interesting on the long side.
Kelly asked, what would stop Google (GOOGL) from making the same thing?
Seymour pointed out that MobilEye has a lot contracts and patents that would make it hard for other companies to infringe on its products. He also pointed out MobilEye's strong revenue growth.