NEW YORK (TheStreet) -- The broader market was able to rally Friday and close in positive territory. 

Guy Adami, managing director of, said the historically high margin debt levels could be a warning sign  there are too many longs in the market. He added that it would be healthy for the S&P 500 to have a meaningful correction down to the 1,670 level. 

Tim Seymour, managing partner of Triogem Asset Management, said the bearish sentiment hit its lowest level since 2005, suggesting participants are a little too bullish.

Brian Kelly, founder of Brian Kelly Capital, pointed out the Russell 2000 got hit hard for the third straight session while the S&P 500 held up fine, which could be a cause for concern. 

He added the broader market is two standard deviations above its long-term trend, suggesting that we're getting "toppy."

First Solar (FSLR - Get Report) was up 18% on Friday. Ben Kallo, an analyst at R.W. Baird, was a guest on the show and said the stock had a high short-interest and needed to play catchup after severely lagging some of its peers. He added the solar industry is not in a bubble and his favorite pick is SunPower (SPWR - Get Report). 

Seymour said he likes SunPower because of its fundamentals and strength in emerging markets. He also likes Trina Solar (TSL) because of its valuation, fixed oversupply issue and profitability. 

Kelly said investors currently long Berkshire Hathaway (BRK.B - Get Report) can hold the stock, but he would not recommend initiating a new position. 

Cliffs Natural Resources (CLF - Get Report) was the first stock on the show's "Pops & Drops" segment. Seymour said China's strengthening PMI data is pushing higher stocks that have exposure to that country. 

D.R. Horton (DHI - Get Report) fell 6% this week and Kelly said he would avoid the stock for now. 

Lululemon Athletica (LULU - Get Report) dropped 8% this week and Adami said he would be a buyer at $65. 

Michael Kors (KORS) reports earnings next week. Adami suggested investors wait for the results before establishing a position. 

Up 379% this year, Tesla Motors (TSLA - Get Report) will also report earnings next week. Stuart Frankel's Steve Grasso said margins will be one of most the important metrics to watch for. 

Groupon (GRPN - Get Report) will report on Thursday. Kelly suggested investors do a stock replacement strategy by taking profits in the common stock and replacing it with long call options. 

InvenSense (INVN) reported good earnings, but came up short on guidance. Behrooz Abdi, president and CEO, was a guest on the show and said the weaker-than-expected gaming industry is weighing negatively on the business. He added that the Android market is doing well and is where his company continues to gain market share. He hopes Apple (AAPL - Get Report) will be a customer in the near future. 

Seymour said the stock is reasonably priced, and Apple isn't a crucial customer for the company to succeed. 

Adami said the stock has technically made a double bottom and a double top, so he suggested buying the mid-point, near $15 per share. 

For their final trades, Grasso is buying Hewlett-Packard (HPQ - Get Report) and Kelly said to buy protection in the form of SPDR S&P 500 Trust ETF (SPY - Get Report) puts. Adami is buying Legg Mason (LM - Get Report) and Seymour said to take profits in Gerdau SA (GGB - Get Report) and Companhia Siderurgica Nacional (SID - Get Report).

-- 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.