'Fast Money' Recap: Topping Out?

NEW YORK (TheStreet) -- The broader market sold off sharply as Twitter (TWTR) made a successful public debut. 

On CNBC's "Fast Money" TV show, Dan Nathan, co-founder and editor of riskreversal.com, said a lot of momentum names have been topping out and a pullback to 1,700 in the S&P 500 would be healthy.

Guy Adami, managing director of stockmonster.com, said that 1,740 in the S&P 500 would be an important level for support. He added that the pullback in the Russell 2000 was worrisome, as well as the record level of margin debt at the New York Stock Exchange

Gordon Johnson, managing director of Axiom Capital Management, said the reaction in the stock market following the European Central Bank's decision to cut interest rates is definitely concerning and investors may have been a little too optimistic. 

Sam Hamadeh, CEO and founder of PrivCo, was a guest on the show who said Twitter was priced well and that it will grow into its valuation. As he did on Wednesday's show, he suggested investors wait for the second of the two lock-up periods to expire, on May 14, before buying a big position. He added that in April there might be some form of a follow-up offering, in which investors could consider buying.

Nathan said the stock has incredibly strong growth and is a solid buy in the low $30 range. 

Adami said the stock opened so high because demand is strong, while there is a very small supply of shares. He added that it had nothing to do with fundamentals. 

Disney (DIS) reported solid earnings but traded lower. Adami called the stock a "no touch" until it returns to and holds $67, otherwise it may head to the low-$60s. 

Johnson said he preferred Chinese solar stocks over American solar stocks because the Chinese government is propping them. He would be buying on dips and added that he did not like SolarCity  (SCTY) due to potential accounting issues. 

As a trade, Jon Najarian, co-founder of optionmonster.com and trademonster.com, said he would be a buyer of First Solar  (FSLR) on weakness.

Tesla Motors (TSLA) had another harsh day of trading, down nearly 8% on news of a third car fire. Craig Irwin, an analyst at Wedbush Securities, was a guest on the show who said people need to consider the situations in which these fires are arising from and what would happen with a normal car. In terms of valuation, he said the stock doesn't trade based off metrics, but on strong growth and belief in its future potential. 

Johnson cited expensive valuation multiples and high battery costs as reasons for why he felt the stock was worth only $50. 

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