NEW YORK (TheStreet) -- The S&P 500 closed higher by 0.46% on Friday.
On CNBC's "Fast Money" TV show, Tim Seymour, managing partner of Triogem Asset Management, said the S&P 500 is only 2% off its highs despite many individual momentum stocks doing much worse lately. He said financial and industrial stocks have upside.
Pete Najarian, co-founder of optionmonster.com and trademonster.com, pointed out the S&P 500 and the CBOE Volatility Index (VIX.X) are essentially unchanged from one month ago. He suggested that if momentum stocks begin to rebound the broader market could move significantly higher.
Brian Kelly, founder of Brian Kelly Capital, said the market should have an easier time rallying as geopolitical issues and international growth concerns begin to diminish.
Guy Adami, managing director of stockmonster.com, said equities will be able to move higher if the financials sector goes higher, and if industrial and transport stocks can bottom out.
Tesla Motors (TSLA) bounced 2.5%. Seymour said he was not a buyer based on forward valuation.
Kelly was a buyer of Tesla, saying investor optimism over the company's future is strong, which is a reason to buy in the short term. Najarian said investors who are long Tesla could purchase put options as a hedge against a price decline.
Adami said to buy General Motors (GM) with support at $34.
Najarian found a bullish options trade in Yahoo! (YHOO) where someone purchased 15,000 of the June $40/$45 bull call spreads. He added that the stock is not overvalued at current levels.