'Fast Money' Recap: Still in a Bull Market

NEW YORK (TheStreet) -- The S&P 500 tacked on more gains on Wednesday, closing up 0.52%. 

On CNBC's "Fast Money" TV show, Tim Seymour, managing partner of Triogem Asset Management, said the macro-economic data remain encouraging. 

Anthony Scaramucci, founder and co-managing partner of SkyBridge Capital, said equities are still in a bull market. He added that earnings have been decent so far and that investor activism could increase in the first quarter. 

Steve Grasso, director of institutional sales at Stuart Frankel, said the financial sector is pushing the market higher and that most investors do not want to get in front the upward momentum from the short side.

Bank of America (BAC) beat on top- and bottom-line estimates. Jon Najarian, co-founder of optionmonster.com and trademonster.com, said the stock blew through its previous 52-week high on large volume and could hit $20 by the end of the first quarter. 

Seymour said the stock has more room to go because it only trades at 1.2 times price-to-tangible-book value. He added that rising interest rates should help increase profitability. 

Grasso pointed out that rising litigation costs are a concern but investors seem to be putting them in the "rear-view mirror." 

Scaramucci is more concerned with the fact that mortgage originations dropped by 50%. He added they would likely continue to fall as interest rates rise. However, he said small business lending should pick up this year and BAC has a solid long-term growth story. 

Netflix (NFLX) fell 2.30% and Michael Pachter, managing director and research analyst at Wedbush Securities, downgraded the stock. He said if Internet service providers were to start charging NFLX for the data its customers consume, the impact to its net income could be substantial. Pachter said it could range from $144 million to $936 million based on a 1-cent-per-gigabyte fee. NFLX would have to raise prices for its customers based on increased pipeline costs and content costs. 

Rather than investing in NFLX, Seymour likes other content providers, specifically Time Warner Cable (TWC).  Grasso called Wednesday's selloff in NFLX a buying opportunity. Scaramucci did not doubt NFLX CEO Reed Hasting's ability to overcome future hurdles but he's not a buyer of the stock based on valuation. 

Seymour said investors should continue to avoid J.C. Penney (JCP), which announced that it would be closing 33 stores. 

Seymour said Apple's (AAPL) biggest problem in China will be finding the right pricing points to sell its iPhones. He added the stock looks good at currently levels and needs to get through $575. 

Najarian also likes AAPL. He is long the stock and said it needs to break through and hold $575. If that happens, $600 is likely to be the next stop.

Scaramucci said Apple is likely to figure out the pricing points in China, which will become a massive market for the company. 

Grasso added to his Abercrombie & Fitch (ANF) position because there has been some speculative M&A chatter in the teen retail industry. 

Ronnie Moas, founder and director of Standpoint Research, was a guest on the show. He said there is a global issue in terms of wages and there needs to be a redistribution of wealth. He suggested that wealthy companies, such as Amazon (AMZN) and AAPL, do not pay its employees enough. 

Walter Energy (WLT) was the first stock on the show's "Pops & Drops" segment. Seymour said investors could stay long because coal prices seem likely to go higher. 

ExOne (XONE) fell 9% and Najarian said investors should only buy one name in the 3-D printing space: 3D Systems (DDD). 

Alcoa (AA) jumped 2% and Scaramucci said it looks like a technical bounce. He thinks it could trend higher on increased aluminum demand. 

Tesla Motors (TSLA) popped 2% and Grasso said the stock needs to hold the $157.80 level. He complimented CEO Elon Musk on how he's managed the company thus far.

Grasso said the refinery stocks are at risk of losing 30% to 50% of their value if the 40-year ban on crude oil exporting is lifted. He added refineries are able to take advantage of massive WTI crude oil spreads due to international pricing. If the spreads diminish due to the ban being lifted, then the margins will also diminish, crushing many of the refiners.

For their final trades, Scaramucci is a buyer of Morgan Stanley (MS) and Grasso said to buy Qualcomm (QCOM). Seymour said he would continue to own Potash (POT) and Najarian said Applied Micro Circuits (AMCC) could reach $13 or $14 post-earnings, based on unusual call buying activity.

-- 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.

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