NEW YORK (TheStreet) -- Momentum stocks led the market, specifically the Nasdaq, lower on Monday. The Nasdaq closed down 0.9%.
Despite the price action, Tim Seymour, managing partner of Triogem Asset Management, argued that "old tech" stocks not only have solid upside momentum but also reasonable valuations. He didn't consider Monday's price action and economic numbers as a reason to sell.
Brian Kelly, founder of Brian Kelly Capital, said investors should be buying the weakness in momentum stocks. He added that the selloff was not broad-based, and the weakness was not confirmed by the bond market.
Guy Adami, managing director of stockmonster.com, pointed out the big bounce in the iShares Nasdaq Biotechnology ETF (IBB) - Get iShares NASDAQ Biotechnology ETF Report from its session lows. He suggested that it made a short-term bottom.
Karen Finerman, president of Metropolitan Capital Advisors, is long the IBB and the SPDR Biotech ETF (XBI) - Get SPDR S&P BIOTECH ETF Report. She said investors could likely buy bull call spreads in the IBB.
Seymour was a buyer of SolarCity (SCTY) . He said the stock needs to hold $60.
Mark Mahaney, managing director and Internet analyst at RBC Capital Markets, said Netflix's (NFLX) - Get Netflix, Inc. (NFLX) Report biggest costs will be for content and marketing, not the requirements in its deal with Comcast (CMCSA) - Get Comcast Corporation Class A Report. He added that Netflix's biggest competition is Apple (AAPL) - Get Apple Inc. (AAPL) Report, Google (GOOG) - Get Alphabet Inc. Class C Report and Amazon (AMZN) - Get Amazon.com, Inc. Report -- with Amazon having the most potential to be "disruptive."
Adami said shares of Netflix look interesting from the long side at current levels. Seymour was a buyer of Apple.
Dennis Gartman, editor and publisher of The Gartman Letter is bullish on U.S. equities because the stock market has been consolidating for about 1.5 months near current levels. He added that U.S. stocks seem likely to break out to the upside. If being forced to choose, he would rather be a buyer of copper than a seller. He is also a buyer of Chinese equities via exchange-traded funds.
Kelly was a buyer of copper via Southern Copper (SCCO) - Get Southern Copper Corporation Report and of steel via U.S. Steel (X) - Get United States Steel Corporation Report and the Market Vectors Steel ETF (SLX) - Get VanEck Vectors Steel ETF Report.
Carter Braxton Worth, chief market technician at Sterne Agee, said the Nasdaq seems primed to pull back roughly 13%. He came to this conclusion because the index has not touched its 150-day moving average in over 18 months or had a pullback greater than 8% in that same time frame. He argued that a pullback would be healthy for the bull market.
Adami said investors could use $27.50 as a level "to trade against" from the long side in regards to shares of Lionsgate Entertainment (LGF) .
Jim Appleton, president of the New Jersey Coalition of Automotive Retailers, was a guest on the show. The recent ruling in New Jersey that banned direct vehicle selling in the state was the correct decision, he said. The move essentially shuts out Tesla from selling its vehicles in New Jersey unless it is done so through a dealer or if customers buy it outside of the state.
He insisted that many consumers don't understand the ruling was done in order to protect them and other drivers during recalls and warranty issues, which are fulfilled by dealers in a timely fashion. He added that Tesla sales make up roughly 0.1% of the state's auto sales, and reasoned that an exception should not be made for it.
Adami said Tesla seems to be "gravitating" toward $220 but he did not want to trade it from the long or short side.
Herbalife (HLF) - Get Herbalife Nutrition Ltd. Report was up 7% and was the first stock on the show's "Pops & Drops" segment. Finerman said HLF could receive just a small fine from China. This would be similar to Nu Skin Enterprises (NUS) - Get Nu Skin Enterprises, Inc. Class A Report , which said Monday it received a fine, prompting relieved investors, expecting much worse, to start buying.
Finerman said she has more exposure to Bank of America (BAC) - Get Bank of America Corp Report than to JPMorgan Chase (JPM) - Get JPMorgan Chase & Co. (JPM) Report because BofA appears to have more upside.
Adami said investors could trade Twitter from the long side at current levels.
For their final trades, Seymour was a buyer of iShares MSCI Brazil Capped ETF (EWZ) - Get iShares MSCI Brazil ETF Report and Finerman was a buyer of GOOG. Kelly said to buy Cisco Systems (CSCO) - Get Cisco Systems, Inc. Report and Adami was buying Newfield Exploration (NFX) .
-- Written by Bret Kenwell in Petoskey, Mich.
Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter.