'Fast Money' Recap: Is Twitter Overvalued?

NEW YORK ( TheStreet) -- The S&P 500 closed flat Wednesday after moving in and out of positive and negative territory throughout the day.  

On CNBC's "Fast Money" TV show, guest Carter Braxton Worth, chief market technician and managing director at Oppenheimer & Company, said the S&P 500 is now lower by 0.6% through the first five trading days of the year. Based on historical price action, there is a 60% chance January will end in negative territory since its first five trading days were negative, he said. 

Worth added that when the month of January is positive, returns in February through December are up on average 8.65%. When January is negative for the month, the return in February through December only averages 1.65%, he added.  

Guy Adami, managing director of stockmonster.com, said he is still looking for a pullback to the 1,750 level in the S&P 500. 

Shares of Twitter (TWTR) were lower on Wednesday from another downgrade. Tim Seymour, managing partner of Triogem Asset Management, said the stock is overvalued compared to its peers. A lot of stock will come to the market in February and May when the current share lockup plans expire.

Jon Najarian, co-founder of optionmonster.com and trademonster.com, said investors might get a buying opportunity when TWTR reports at the end of the month. 

Adami suggested that investors could buy the stock as a trade after Wednesday's selloff. 

Seymour said to buy China Eastern Airlines (CEA) and China Southern Airlines (ZNH). Travel is "booming" in the region and these companies have solid exposure and cheap valuations, he added. 

Adami said he would continue to own Cern (CERN), which has traded well even after some "dicey" earnings reports -- which he considered a good thing. 

Irwin Simon, founder and CEO of Hain Celestial Group (HAIN), was a guest on the show. He said that increasing competition could actually be a good thing because it increases consumer awareness, for which HAIN is well-positioned. He said cold weather is good for sales because more people will cook at home. He also said the beginning of the new year brings plenty of new customers into the world of healthy eating. 

Najarian likes Hewlett-Packard (HPQ) because of its improved balance sheet, CEO Meg Whitman and its potential involvement in the hybrid cloud business. Najarian does not like Netflix (NFLX) at current levels and suggested buying the stock $50 lower. 

Ina Fried, senior editor at Re/Code, was a guest on the show who recently spoke with John Chen, the CEO of BlackBerry (BBRY). She said Chen was optimistic about the smartphone keyboard concept and is looking to renew the company via strong sales to the government, regulated industries and large corporations. Chen also made it clear to her the company was no longer for sale and he plans on keeping the company together. 

Mark Cuban, businessman and owner of the Dallas Mavericks basketball team, was also on the show. He said there are a ton of small, innovative companies that still need funding. However, unlike in the past, these companies cannot come to the public market due to their small size. He's optimistic on stocks in general but questioned how investors would react in a higher-rate, higher-inflation environment. 

Karen Finerman, president of Metropolitan Capital Advisors, said the rebound in commercial construction -- which hasn't gained significant traction as has residential construction -- will be a positive thing for United Rental (URI) and she likes the stock.

She is short Sears Holdings (SHLD) via long puts because the stock is overvalued and has shrinking revenue. She said investors looking to get long retail go for "best in class" names such as Macy's (M).

Najarian is short J.C. Penney (JCP) via long puts. The stock fell 10% on Wednesday and he said there should be more downside. He is staying long Delta Air Lines (DAL) because the sector should continue to do well in 2014.

Adami is a buyer of Blackstone (BX) and suggested investors avoid gold. Seymour is buying the U.S. dollar and selling the iShares MSCI Japan ETF (EWJ). 

For their final trades, Finerman is a buyer of Liberty Interactive (LINTA) and Seymour is selling the CurrencyShares Canadian Dollar Trust ETF (FXC). Adami is buying McKesson (MCK) and Najarian said to sell JCP. 

-- 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.