'Fast Money' Recap: Reacting to Yellen

NEW YORK ( TheStreet) -- All three major indices closed near session highs as investors cheered the dovish tone from future Federal Reserve chairwoman Janet Yellen.

Guy Adami, managing director of stockmonster.com, said the Fed will not taper for a long time, possibly past next summer. He added that he likes Mohawk Industries ( MHK).

Brian Kelly, founder of Brian Kelly Capital, said traders could look to buy Zillow ( Z) for a trade and added that the Fed will remain accommodative.

Karen Finerman, president of Metropolitan Capital Advisors, said she likes Realogy Holdings ( RLGY).

Steve Grasso of Stuart Frankel & Company said Louisiana-Pacific ( LPX) has been lagging behind in the rally and should start to play catch-up soon.

Pete Flint, CEO and Co-Founder of Trulia ( TRLA), was a guest on the show and simply stated that the company is not for sale. He added that they are actively exploring M&A, partLy because of the massive costs of business expansion.

For their favorite housing plays, Adami liked D.R. Horton ( DHI) and Kelly suggested Toll Brothers ( TOL).

Finerman said to buy Bank of America ( BAC) and Grasso concurred, adding that if the stock can clear $14.92 on the upside, it might start to fill its gap back up to $20.

Kelly said investors could buy Move ( MOVE) as a trade.

Warren Buffett's Berkshire Hathaway took a 40.1 million share position in Exxon Mobil ( XOM) and Adami said the stock could trade up to $96, after forming a double-bottom at $85.

He added that FedEx ( FDX) has a lower valuation than United Parcel Service ( UPS) and could continue moving higher.

Leon Cooperman's Omega Advisors took a position in Freeport-McMoRan ( FCX), but Kelly said the divergence between the stock price and copper is very big and investors that think copper is headed lower can short FCX.

Adami and Grasso said Yahoo! ( YHOO) is trading well and looks to be headed towards $40 ahead of the Alibaba IPO.

Ed Yardini, president of Yardeni Research, was a guest on the show and said the S&P 500's earnings should continue to grow at a decent rate. He expects to see a secular bull market for the next two to four years. Specifically, he likes information technology, industrials, financials and consumer discretionary stocks.

Kohl's ( KSS) fell 8% on a disappointing earnings report and Finerman said the stock seems okay to buy at these levels.

Kelly said that Wal-Mart ( WMT) is one of his favorite retail picks.

Grasso said retail looks too extended, but Nordstrom ( JWN) looks to be breaking out technically. He suggested trimming longs in Macy's ( M).

Cisco Systems ( CSCO) plunged 12% from poor guidance in its earnings report and Kelly said getting long is a low-risk trade with support near $21.

Mike Khouw, managing director and primary strategist at DASH Financial, said Twitter ( TWTR) options will starting trading on Friday and are likely to be expensive.

Adami said McDonald's ( MCD) has performed very poorly considering the run in equities for 2013. He added that the stock is not yet compelling enough to buy.

Mark Mahaney, managing director of RBC Capital Markets, was a guest on the show and said YHOO isn't trading higher on fundamentals and has limited upside. He added that Snapchat (which refused a $3 billion takeover bid) would have been a good acquisition for Facebook ( FB). He added that they still like Google ( GOOG), but not as much as Amazon ( AMZN), Priceline.com PCLN and Netflix ( NFLX), in that order.

Adami said JetBlue Airways ( JBLU) is headed higher, possibly to $10.

Finerman said Citigroup ( C) could get to $60 to $65 in the next twelve months without being too overvalued.

For their final trades, Grasso was a buyer of LPX, Adami said to buy Apache ( APA) and Finerman was buying Liberty Interactive ( LINTA). Khouw said he is a buyer of eBay ( EBAY) via long-dated call options and Kelly said to buy the United States Natural Gas Fund ( UNG).

-- 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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