'Fast Money' Recap: A Rally With Legs

NEW YORK (TheStreet) -- The S&P 500 and Dow Jones Industrial Average made all-time highs on Thursday as investors digested Wednesday's FOMC announcement and economic data.

After a record-setting day, Guy Adami said on CNBC's "Fast Money" TV show that he thinks the rally will continue. He added that the markets closed at the daily highs with no signs of slowing down and could run another 20 to 30 points.

Karen Finerman said that data and price action support the bullish case and it's okay to stay long the market. However, she added that she's hedging her positions.

Brian Kelly also noted that interest rates rose Thursday, which is usually bad for stocks. However, he said you can't fight the bullish price action and thinks the S&P 500 could get to 1,750.

Jon Najarian thinks investors need to start putting money to work on the long side. He added the economic numbers are good and that there are a lot of reasons to believe they'll continue to improve.

American International Group ( AIG) reported earnings and Finerman said this was the quarter investors were awaiting. With the initiation of a stock buyback program, new dividend and strong quarterly results, she says to add to existing positions rather than sell them.

Najarian said AIG and Apple ( AAPL) are a few of the stocks out there that still remain cheap while the market makes new highs.

LinkedIn ( LNKD) reported strong earnings results, and Adami said Friday is not the day to chase it. He thinks investors should have bought the previous pullback and should wait for one again.

OpenTable ( OPEN) was selling off in the after-hours session on its earnings results. Kelly said investors might want to look at getting long near the 100-day moving average after waiting a day or two.

Despite the poor guidance, Najarian said that he's interesting in trading OpenTable because the high short interest could drive a short-covering rally fairly quickly on Friday.

Yelp ( YELP) was the first stock on the show's "Top Trades" segment. Yelp traded higher by 23% after beating earnings estimates. Najarian said the high short interest also helped fuel the rally.

MasterCard ( MA) hit all-time highs after a recent earnings report and Finerman said growth has remained strong and that she continues to like the name.

Exxon Mobil ( XOM) reported earnings and the miss was the worst since 1999. Kelly said the stock held the 50-day moving average and traders should give it a couple of days before getting long the name.

Michael Kors ( KORS) was the featured stock on the show's "Street Fight" segment. Adami took the bullish side and said more upside still exists. His thesis hinged on strong operating margins that continue to improve, along with a cheap valuation when compared to a company such as Ralph Lauren ( RL).

Najarian took the bear side and said store sales are only a small part of the overall revenue. The soft recovery in Europe, the outsourced Web site through Neiman Marcus and the low short interest are reasons why he doesn't think the stock will rally next week when it reports earnings.

Weight Watchers ( WTW) reported earnings and got crushed in the after-hours from poor results and on news of the departing CEO. Finerman said that nothing has been going right for the company, but under $40 per share the stock becomes very interesting.

Najarian says to stay long Blackstone Group ( BX) and to buy the dips.

Adami said his year-end projection for the S&P 500 is 1,635, with the highs of the year topping out between 1,730 and 1,750.

Kelly said BlackBerry ( BBRY) doesn't get any respect because of its management, despite quality software and a strong balance sheet.

For their final trades, Najarian was a buyer of Mylan ( MYL) while Finerman was buying protection in the form of SPDR S&P 500 ETF ( SPY) puts. Kelly said to buy the ProShares UltraShort 20+ Year Treasury ETF ( TBT) and Adami was buying Blackstone Group.

-- 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.

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