NEW YORK (TheStreet) -- The markets were able halt their three-day losing streak, finishing in positive territory on Thursday.
"Fast Money" TV show, Karen Finerman said she is not as bullish about the back-to-school season as she once was. She is still a buyer of
, but wants to avoid teen retailers.
She added that
could continue to lose market share, but thinks that the lion's share is already gone,
Dan Nathan said the
Consumer Discretionary SPDR ETF
is only 1% from its all-time highs, showing that investors continue betting on the sector despite disappointments from individual stocks.
Guy Adami said it might be time to take profits in
were the best ways to play retail.
Brian Kelly said to stay away from
Monster Beverage Co.
because of legal headline risks, but longs already in the name should wait to see if it will bounce off the 50-day moving average.
Carter Braxton Worth, chief market technician at Oppenheimer & Co., said the defense sector has gotten too ahead of itself. He added that the group is 17% above the 150-day moving average and believes it will underperform going forward.
Adami argued the call, saying
not only beat on its last earnings report, but raised guidance significantly. He said not to fight the tape on this one.
, which beat top- and bottom-line earnings estimates, was the first stock on the show's "Today's Trending Trades" segment.The stock is up over 360% for the year to date.
Nathan said it's getting hard to justify the price. Although he didn't advise shorting it, he didn't recommend going long either.
was up 22% on Thursday after reporting earnings. Adami said there could be a bit more upside.
popped higher due to positive Chinese data. Kelly said that he is worried about the validity of the data and suggested taking profits.
Nathan said that he would not initiate a position in
after it beat on earnings.
International Business Machine
was the featured stock on the show's "Street Fight" segment. Finerman took the bull side and said the stock is not only cheap compared to the S&P 500 and tech sector, but is on its own historical price/earnings valuation, too. She added that Europe is getting better and the company's backlog is strong.
Adami took the bear side and said IBM could trade to the mid-$170s. He added that the last couple quarters have not been good and management hasn't provided the same type of clarity that it usually does.
Nathan agreed with the bear side, saying that any investor looking at IBM should look to
instead, citing the stronger balance sheet, bigger dividend and better management control of the company's future.
Adami said he loves
Lions Gate Entertainment
, which beat on the top and bottom lines. However, he said, don't buy on Friday and wait for a pullback.
On the show's "Pops & Drops" segment, Adami said traders could play
on the long side, but cautioned them to be careful when dealing with gold miners.
Fifth & Pacific
was up 4% on Thursday. Finerman said the stock continues to be phenomenal.
ripped 37% to the upside. Kelly said traders should take profits after this big move.
Adami said to buy
ahead of its analyst conference on Friday and prefers the long side until the stock shows some weakness.
is up 28% in 2013. Finerman said she likes the stock and the sector, but prefers Foot Locker.
Kelly says to sell
, which is up almost 300% since 2009. He cited rising input costs and vulnerable margins as reasons to take profits.
Nathan says to buy
for three reasons: The company has no debt, 65% of its market cap is in cash, and the company has been hiring veteran
Finerman recommended selling upward calls against
to eliminate some risk, but likes it over the long-term.
has been trading sideways of late, but if it breaks below $885 he would look to get out.
For their final trades, Kelly was the lone seller, looking to dump the
iShares MSCI Mexico ETF
. Adami was buying
, Finerman was a buyer of IBM and Nathan said to buy Zynga.
-- Written by Bret Kenwell in Petoskey, Mich.
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Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.