'Fast Money' Recap: Fading Trends and Strong Trends

NEW YORK (TheStreet) -- The broader market snapped its winning streak, closing in the red on Thursday.

On CNBC's "Fast Money" TV show, fading trends and strong trends fueled the discussion. Dan Nathan said he expects Netflix ( NFLX) to break down, citing a five-year low in the short interest. He added that he still likes Qualcomm ( QCOM).

Karen Finerman said she really liked CVS Caremark ( CVS), but it has become too overvalued at this point.

Jon Najarian thinks shipping stocks, such as DryShips ( DRYS) and Diana Shipping ( DSX) are overextended. He added that he still likes Ciena ( CIEN).

Anthony Scaramucci also does not like Netflix at these levels but would still be a buyer of Facebook ( FB).

Twitter announced that it filed for its much awaited IPO, with Goldman Sachs ( GS) as the lead underwriter. Dan Niles, CIO of Alpha One Capital Partners, was quick to remind everyone what happened with Facebook after its public debut.

He added that the company continues to grow revenue at a strong rate and also has a solid mobile advertising platform. The stock will certainly be in demand, but Niles said he wants to see what the valuation will be first.

Scaramucci believes Morgan Stanley ( MS) will have some sort of role with the underwriting, although not as the lead underwriter.

Mike Khouw said there could be a lot potential in Twitter, unlike what he thought about Facebook. He added that Twitter is a legitimate news source and that it has a lot of promise.

Barbara Marcin, manager of the Gabelli Dividend Growth Fund, said she does not think money will come out of Apple ( AAPL) and go into the Twitter IPO due to its different investor base. She added that if you don't include its cash, Apple is extremely cheap and multiple expansion will eventually come when the company releases new products.

Barney Harford, CEO of Orbitz Worldwide ( OWW), was a guest on the show and said the company's main focus is in the hotel part of the business and driving continued acceleration in hotel-unit volumes. He added the company's recent acquisitions are setting it up well for the future along with the push into mobile.

Najarian said he likes Orbitz Worldwide, but admitted that TripAdvisor ( TRIP) was his favorite in the space.

It was announced that hedge fund manager Carl Icahn has sold the rest of his stake in Hain Celestial Group ( HAIN). Finerman said it would be interesting to see if his firm kept its two seats on the board.

GSV Capital ( GSVC), which has a roughly 14.4% stake in Twitter, moved sharply higher in the after-hours on the news of the potential IPO.

For their final trades, Scaramucci was a buyer of Facebook, Najarian said to buy Arris Group ( ARRS) based on unusual options activity and Nathan said to short General Motors ( GM). Khouw said he was a buyer of long-dated calls in Freeport-McMoRan ( FCX) and Finerman said if traders are going to stay long, they should buy some puts on the SPDR S&P 500 fund ETF ( SPY) as downside protection.

-- Written by Bret Kenwell in Petoskey, Mich.

Follow TheStreet.com on Twitter and become a fan on Facebook.

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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