NEW YORK (TheStreet) -- The S&P 500 ETF (SPY) - Get Report pieced together its best weekly rally since July. Still, the euphoria was tempered by continuing uncertainty over whether the Federal Reserve will announce a rate hike after its meeting Wednesday and Thursday.
The Fed should "absolutely hike," Guy Adami, managing director of stockmonster.com, said on CNBC's "Fast Money" TV show Friday. "Everything is in place" to justify a rate hike. Economic data warrant higher rates and the lower volatility justifies the hike to occur sooner rather than later.
Adami said stocks could rally on the news of a rate hike rather than sell off as many expect.
David Seaburg, head of equity sales trading at Cowen and Company, agrees "100%" that now is the time for the rate increase. The initial reaction might be to sell stocks but equities will eventually rally, he predicted.
Tim Seymour, managing partner of Triogem Asset Management, added that commodities and emerging markets can also rally following a rate hike. While these assets are negatively impacted by higher rates, investors seem to have already priced in the worst. He also pointed out the U.S. dollar has been heading lower, despite the currency's tendency to move higher with interest rates.
Brian Kelly, founder of Brian Kelly Capital, sees a relief rally on the news since investors have already priced in the worst. However, no one seems to be focused the Bank of Japan, he said. If that central bank eases rates, it could strengthen the dollar, thus complicating next week's action.
Twitter(TWTR) - Get Report was in the news after one of its big investors, Chris Sacca, went on a rant via -- what else? -- Twitter. He said the company needs to name its new CEO -- preferably co-founder Jack Dorsey -- as soon as possible.
Seymour, who is long Twitter, says the stock has a good risk/reward ratio near current levels, and growth at the company is very strong. Valuation is still pretty high but there's upside in the near term.
Seaburg agreed but isn't a buyer of the stock in the long term. Adami said the stock can go down to $25.
What stocks look good under $5? Seymour said Avon Products (AVP) - Get Report is priced like it's going out of business, which isn't the case. The stock is "ridiculously cheap" and the company could eventually be a takeout target.
Seaburg likes Arena Pharmaceuticals (ARNA) - Get Report for its "really deep pipeline" and potential to be acquired, while Adami likes Geron (GERN) - Get Report for its cancer collaboration potential. However, he warned that Geron is a binary play, meaning it has a lot of upside if things work out ora lot of downside if they don't.