'Fast Money' Recap: Where to Start Taking Profits

NEW YORK (TheStreet) -- The S&P 500 rallied on Monday, closing higher by 0.79%. 

On CNBC's "Fast Money" TV show, Brian Kelly, founder of Brian Kelly Capital, said he would take profits in Caterpillar (CAT). He added that investors can short the stock with a stop-loss at $101. 

Guy Adami, managing director of stockmonster.com, said technology stocks will likely continue moving higher. He was a buyer of Oracle (ORCL) and Microsoft (MSFT) and a seller of International Business Machine (IBM). 

Tim Seymour, managing partner of Triogem Asset Management, said he likes financial and large-cap technology stocks going into the second quarter. 

Karen Finerman, president of Metropolitan Capital Advisors, said Apple (AAPL) needs to introduce a new product category to break the stock out of its current range.

Adami pointed out that cloud technology stocks, particularly F5 Networks (FFIV), continue to trade well. 

Brent Thill, an analyst at UBS Securities, has a buy rating on Microsoft with a $46 price target. He expects the company to begin building a "cross platform" between mobile and desktop computing. He added that the big management change continues to be the bullish catalyst for the stock. He concluded the Microsoft Windows app on Apple devices works great so far. 

Kelly said he'll likely look to take profits in Microsoft near the $42.50 level. 

Seymour said Microsoft's current valuation is historically higher than usual, meaning the company will have to do well when it reports earnings on April 24. 

Adami said the stock needs to beat earnings estimates "meaningfully" in order for the stock to go higher. He suggested being long until the event. 

Brian Marshall, senior managing director at ISI Group, was a guest on the show. Apple is suing Samsung for five patent infringements. Marshall said Apple could sue a lot of companies, but likely will not. He thinks the lawsuit is unlikely to alter either the patent or technological landscape for smartphone makers. He suggested the iPhone 6 will be a big catalyst for the company as more and more customers upgrade to the device. 

Seymour said Qualcomm (QCOM) has great technology and impressive products but could be susceptible to lower margins due to lower pricing points in emerging markets. 

Adami said that a lot of recent news for Tesla Motors (TSLA) has been negative. However, bullish news could be just around the corner, with the company set to report earnings in roughly three weeks. He suggested investors could start a small long position at current levels. 

Seymour said he would get long Yahoo! (YHOO) at current levels, with a stop-loss just below $35.

Finerman said shares of General Motors (GM) will likely be "dead money" for awhile as the company continues to recall more vehicles. She added there is no quick fix to the current issues. 

Adami pointed out GM continues to hold $34 but is starting to look less desirable on the long side. 

On a day when everyone on Wall Street was buzzing about Michael Lewis' new book Flash Boys: A Wall Street Revolt, Irene Aldridge, author of High Frequency Trading and managing partner at Able Alpha Trading, came on to refut his claims.

As a supporter of high-frequency trading, she said computers and algorithms are necessary in today's world of large data. She added that retail investors benefit from high-frequency trading because of the lower transaction costs that used to be associated with traditional brokers.

Dennis Gartman, editor and publisher of The Gartman Letter, said Japan will need to intensify its quantitative easing measures if the country wants to prevent deflation. He was a seller of the yen against gold or against "English speaking" currencies. 

Kelly said investors could go long the WisdomTree Japan Hedged Equity ETF (DXJ) with a stop-loss at $45. 

Seymour said Japanese exporters should continue to benefit from currency fluctuations. He was a buyer of Toyota Motors (TM). 

Doug Bowers, president and CEO of Square 1 Financial (SQBK), said his company generally makes investments or loans to private companies that are connected with venture capitalists. He added that loan growth and deposit growth have grown nicely over the past five years and grew particularly well in 2013.

While many investors may think the company makes loans to less-stable companies, he argued that Square 1 generally sticks to companies that are backed strongly by venture capitalists and have valuable assets. 

Seymour said shares of eBay (EBAY) look "interesting" on the long side at current levels. 

For their final trades, Kelly was a buyer of Control4 (CTRL) and Finerman was covering her short position in SFX Entertainment (SFXE). Seymour was taking profits in the iShares MSCI Brazil Capped ETF (EWZ) and Adami was a buyer of Snap On (SNA).

-- Written by Bret Kenwell in Petoskey, Mich.

Follow @BretKenwell

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Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter.

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