On CNBC's "Fast Money" TV show, Dan Nathan, co-founder and editor of riskreversal.com, said a lot of momentum names have been topping out and a pullback to 1,700 in the S&P 500 would be healthy.
Guy Adami, managing director of stockmonster.com, said that 1,740 in the S&P 500 would be an important level for support. He added that the pullback in the Russell 2000 was worrisome, as well as the record level of margin debt at the New York Stock Exchange.
Gordon Johnson, managing director of Axiom Capital Management, said the reaction in the stock market following the European Central Bank's decision to cut interest rates is definitely concerning and investors may have been a little too optimistic.
Sam Hamadeh, CEO and founder of PrivCo, was a guest on the show who said Twitter was priced well and that it will grow into its valuation. As he did on Wednesday's show, he suggested investors wait for the second of the two lock-up periods to expire, on May 14, before buying a big position. He added that in April there might be some form of a follow-up offering, in which investors could consider buying.
Nathan said the stock has incredibly strong growth and is a solid buy in the low $30 range.
Adami said the stock opened so high because demand is strong, while there is a very small supply of shares. He added that it had nothing to do with fundamentals.
Johnson said he preferred Chinese solar stocks over American solar stocks because the Chinese government is propping them. He would be buying on dips and added that he did not like SolarCity (SCTY) due to potential accounting issues.
Tesla Motors (TSLA) - Get Tesla Inc Report had another harsh day of trading, down nearly 8% on news of a third car fire. Craig Irwin, an analyst at Wedbush Securities, was a guest on the show who said people need to consider the situations in which these fires are arising from and what would happen with a normal car. In terms of valuation, he said the stock doesn't trade based off metrics, but on strong growth and belief in its future potential.
Johnson cited expensive valuation multiples and high battery costs as reasons for why he felt the stock was worth only $50.
Nathan said traders should watch for support at $135 and $120 and argued that there's no way the stock was heading back to $50.
LTD Brands (LTD) fell 2%. Mike Khouw, managing director and primary strategist at DASH Financial, said its same-store sales guidance was a little low and the stock reaction is a potential warning sign to other high-multiple retailers.
Nathan completely disagreed, saying the company is going to compete with Amazon (AMZN) - Get Amazon.com, Inc. Report and Costco Wholesale (COST) - Get Costco Wholesale Corporation Report, where it doesn't stand a chance.
Priceline.com (PCLN) rallied after reporting earnings. Najarian said he continues to like the stock.
Johnson said commodity stocks will likely rally from positive headlines out of the four-day Chinese government meeting that starts next week.
For their final trades, Najarian was a buyer of Community Health Systems (CYH) - Get Community Health Systems, Inc. Report, Johnson was buying Micron (MU) - Get Micron Technology, Inc. (MU) Report and Khouw said to short high-growth names via short call spreads. Nathan said to buy eBay (EBAY) - Get eBay Inc. Report with a stop at $50 and Adami was a buyer of WesternDigital (WDC) - Get Western Digital Corporation Report.
-- Written by Bret Kenwell in Petoskey, Mich.
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.