NEW YORK (TheStreet) -- The broader market rallied significantly on news that there could be a short-term resolution in Washington Thursday night.
Tim Seymour, managing partner at Triogem Asset Management, said don't get too excited, a deal has yet to be completed. He added that it will be an issue again in six weeks, even if a deal does get done.
Steve Grasso, of Stuart Frankel and Co., stressed there will be no default, even though there's a risk of it is being pushed out a couple of months because of the short-term deal. He said the selling pressure has been a buying opportunity and still likes Bank of America (BAC) and Tesla Motors (TSLA).
Dan Nathan, co-founder and editor of RiskReversal.com said that although only a few companies have reported earnings so far, they haven't been very impressive and that the economy remains subpar.
Jon Najarian, co-founder of optionMONSTER.com, said Thursday's rally essentially brings the broader market back to flat for the week, although it was good see Washington addressing the issues.
Mike Khouw, managing director and primary strategist at DASH Financial, said industrial and cyclical stocks are still cheap and he would sell stocks with high valuations. He added that now is a good time to hedge or take profits.
Jens Nordvig, head of currency strategy at Nomura Securities, was a guest on the show and said if we can reduce the default risk from the market, it will do much better. Referring to the U.S. dollar, he said it's hard for it to rally because of the uncertainty from the Federal Reserve. He likes emerging market currencies and wants to be short the Japanese yen.
Micron (MU) reported earnings. Grasso said there's still plenty of people holding the stock, looking for more gains and that DRAM prices are pushing it higher.
Najarian loves Apple (AAPL) and thinks it's one of the best long positions to have heading into the holidays.
Best Buy (BBY) was the first stock on the show's "Pops & Drops" segment. Grasso said it's too risky to be entering the stock at these levels.
Citrix Systems (CTXS) fell 12% and Najarian said investors should wait at least one more day before buying.
Gilead Sciences (GILD) jumped 6%, and Seymour said the stock is likely to keep going higher.
Ruby Tuesday (RT) plunged 17%. Khouw said the stock reported a huge earnings miss and that he would definitely avoid it.
Boeing (BA) popped 4%. Nathan said investors are moving back into the stocks that have been working this year. But he would avoid Boeing unless it's closer to $110.
Netflix (NFLX) was the featured company on the show's "Street Fight" segment. Najarian defended the stock, saying costs are dropping while revenue and earnings are growing. He added Netflix now has 30 million subscribers in over 40 countries and is available on more platforms than its competitors.
Seymour completely disagreed, arguing the stock is way too risky going into earnings after its huge run. He added that valuation is rich and the path for international growth is far from clear. He concluded it will go to $225 before making new highs.
The Gap (GPS) fell after missing retail sales estimates. Nathan said he would avoid the stock, which could fall to $35.
Renee Haugerud, CEO of Galtere, was a guest on the show and said corn farmers are unlikely to be selling into these weak prices. She added corn is likely near a low, but should continue to hang near these levels for a while. Haugerud likes natural gas in the short term and expects a colder-than-usual November. She is a seller of soybeans and the U.S. dollar on rallies.
For their final trades, Khouw was a buyer of SPDR S&P 500 Trust ETF (SPY) puts as portfolio insurance, Grasso was buying Wynn Resorts (WYNN) and Nathan was short SPDR Gold Trust ETF (GLD) via long December puts. Seymour said to buy ICICI Bank (IBN) and Najarian suggested buying Arkansas Best (ABFS).