'Fast Money' Recap: Closing the Year on a High Note

NEW YORK (TheStreet) -- The S&P 500 surged higher in the final minutes of Tuesday's trading session to close at all-time highs on the last trading day of 2013. 

On CNBC's "Fast Money" TV show, Guy Adami, managing director of stockmonster.com, said Freeport-McMoRan (FCX) has been a laggard for the past three years. However, in 2014 positive news and good results from its oil and gas division could push the stock higher. 

Tim Seymour, managing partner of Triogem Asset Management, likes Walter Energy (WLT) heading into 2014. He added that restructuring efforts at the company and a continued global recovery should help push the stock higher. 

Jim Lebenthal, CFO and CIO of Lebenthal & Company, said Exelon (EXC) should do well in 2014. He reasoned that demand for nuclear power will increase -- which is good for EXC -- as natural gas prices continue to rise and get too expensive. 

Brian Kelly, founder of Brian Kelly Capital, is a seller of Pioneer Natural Resources (PXD), which had a good 2013. 

Seymour said gold could continue lower, possibly to $1,100 per ounce, but he's a buyer of Barrick Gold (ABX) because of its solid balance sheet. He also likes it as a play for an eventual rebound in gold prices. 

Adami said Netflix (NFLX) is unlikely to duplicate 2013's performance but should continue higher in 2014. 

Kelly said Twitter (TWTR) seems likely to head to $70. He raised his stop-loss to $58 and suggested investors do so as well if the stock continues to rise. 

Lebenthal thinks TWTR might head lower, but suggested investors could sell put options as a means for getting long. 

Seymour said Blackstone (BX) continues to have solid growth and he likes the stock. Adami agreed, saying it could get back to $38. 

Lebenthal said American International Group (AIG) is still undervalued based on book value. 

Kelly suggested investors could sell puts on the CBOE Volatility Index (VIX.X), which he predicted will rise in 2014, specifically February or March. 

Seymour likes Hewlett-Packard (HPQ) because of stabilizing PC sales, future increases in free-cash flow and favorable valuation. 

Lebenthal doesn't like Microsoft (MSFT), calling the Windows market "over-saturated." He suggested investors take profits and buy Intel Corp. (INTC) or International Business Machine (IBM). 

Kelly, however, doesn't like IBM, saying its buyback program would suffer as the company's free-cash flow decreases. 

Adami said Cisco Systems (CSCO) seems like it can get back to $25. 

Seymour likes McDonald's (MCD) based on valuation. He also likes DineEquity (DIN), which should benefit from valuation expansion. 

Kelly would buy Darden Restaurants (DRI) if it can get through the $56 level. 

Carter Braxton Worth, chief market technician and managing director at Oppenheimer & Company, was a guest on the show. According to Worth, when the first five trading days of the new year are positive, the month of January ends positive 76% of the time. When the month of January is positive to start the year, the stock market finishes the year positive 82% of the time. 

Worth said commodities should outperform equities in 2014. On this theory, Seymour suggested that the best companies within the commodity business will do better than the commodities themselves.

Adami said investors can own Lululemon Athletica (LULU) with a stop-loss at $55. 

When searching for an alternative to the iShares MSCI Emerging Markets ETF (EEM), Seymour suggested investors look at the iShares MSCI Mexico Capped ETF (EWW) and the iShares MSCI South Korea Capped ETF (EWY). 

Lebenthal is a buyer of Pfizer (PFE). 

For their first trade of 2014, Adami is buying Phillips 66 (PSX) and Seymour is buying General Electric (GE). Lebenthal said to buy Apple (AAPL) and Kelly is buying the United States Oil ETF (USO). 

-- 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.