NEW YORK (TheStreet) -- U.S. stocks are coming off the second-best week in two years and are continuing to move higher on Monday despite oil prices falling 4.7%, Josh Brown, CEO and co-founder of Ritholtz Wealth Management, said on CNBC's "Fast Money Halftime" show.
Specifically, he pointed out strength in the technology sector and the profit taking in oil and oil-related stocks. Watch the the Russell 2000, Brown advised. If it can break through 1,200, it could spark a broad-based rally in the market.
There will be a lot of tax-related selling from now until year's end, said Jon Najarian, co-founder of optionmonster.com and trademonster.com. Fund managers will want to take losses and eliminate certain stocks from their holdings before the start of 2015, which could present favorable buying opportunities for investors.
January can be a volatile month, warned Stephanie Link, chief investment officer of TheStreet and co-manager of the Action Alerts PLUS portfolio. OPEC will not cut oil production and as a result, crude prices are likely to remain lower for longer.
Investors should focus on companies that benefit from lower oil prices, like credit card companies, consumer staples, and consumer discretionary stocks, Link added.
There's been a perfect storm for lower oil prices, according to Mark Fisher, founder and CEO of MBF Clearing Corporation. Contributing factors include higher production rates, Saudi Arabia's insistence of driving prices lower and the strength of the U.S. dollar.
Crude prices could drop another $5 to $10 per barrel in the short term, but investors should consider buying Canadian oil companies for the long term. Many of these names, such as Suncor Energy (SU) - Get Suncor Energy Inc. Report , Enbridge (ENB) - Get Enbridge Inc. Report , and TransCanada (TRP) - Get TC Energy Corporation Report , could become takeover targets, he said.
Royal Dutch Shell (RDS.A) is attractive because of its restructuring story. Link explained the company is selling $15 billion worth of assets this year and plans to return $30 billion to shareholders from cash flows over the next two years. Royal Dutch Shell is an AAP holding. Services stocks, like Schlumberger (SLB) - Get Schlumberger NV Report , could get hit when capital expense budgets get reduced.
Brown added that investors will learn more about 2015 Capex budgets in the first quarter. Until then, he's avoiding stocks like Schlumberger. Instead, he likes Chevron (CVX) - Get Chevron Corporation Report . Fast casual dining and apparel companies could see a benefit of lower oil prices too.
Don't forget about natural gas, Fisher said. just because there's short-term pressure on the price of natural gas, doesn't mean some of the great long-term companies, like Southwestern Energy (SWN) - Get Southwestern Energy Company Report , deserve to be sold off.
Link added that Southwestern Energy is a "best in class" company and a "fabulous operator." The stock is worth a look on the long side now that it's down 6% on Monday and 25% on the year. Also, industrial companies will benefit from lower natural gas prices.
The conversation turned to the top technology plays. Internet analyst at SunTrust Robinson Humphrey, has a buy rating on Amazon (AMZN) - Get Amazon.com, Inc. Report and Twitter (TWTR) - Get Twitter, Inc. Report .
Amazon, with its 20% revenue growth, can grow earnings per share "dramatically" by cutting costs and boosting operating margins. Twitter CEO Dick Costolo is unlikely to be the chief executive within the next 12 months, he added. Once Twitter figures out a more efficient monetization process, hopefully in the first or second quarter of 2015, the stock should rally, he reasoned.
CFO Anthony Noto did a "great job" at Twitter's analyst day, Link said. If Costolo steps down, there are some good internal candidates to take his position. She is long Twitter in the Action Alerts PLUS portfolio.
Brown, who's also long Twitter, said the company has a great platform. However, advertisers don't believe it is effective enough. A new CEO could change that perception.
For the final trade, Fisher said he is a buyer of CME Group (CME) - Get CME Group Inc. Class A Report and Intercontinental Exchange (ICE) - Get Intercontinental Exchange, Inc. Report as volatility in interest rates, oil and stocks increases in 2015.
-- Written by Bret Kenwell
This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.