NEW YORK (TheStreet) -- While the S&P 500 only closed lower by 0.11% and the Dow Jones Industrial Average finished flat on Thursday, many momentum stocks sold off hard.
On CNBC's "Fast Money" TV show, Guy Adami, managing director of stockmonster.com, said he was disappointed by what only ended up being a short-term bounce in momentum stocks. He said Tesla Motors (TSLA) still looks the best of the momentum stocks group.
Dan Nathan, co-founder and editor of riskreversal.com, suggested traders who feel stuck in momentum stocks should not be afraid to cut their losses and move on.
Brian Kelly, founder of Brian Kelly Capital, said he sold his long position in Tesla and added to his long position in FireEye (FEYE). He was a seller of FEYE on a bounce higher.
Karen Finerman, president of Metropolitan Capital Advisors, used Thursday's selloff to buy Pandora (P).
Nathan said shares of Pandora could suffer if the company raises its prices and customers respond negatively. He added the stock looks vulnerable.
Twitter (TWTR) was the featured stock on the show's "Street Fight" segment. Kelly was the bull, arguing that sentiment for the stock is way too pessimistic. He added that Twitter is trading just as Facebook (FB) did shortly after its initial public offering before going on a long run to the upside.
Nathan disagreed and bearishly argued the stock is still higher than its IPO price, meaning it has more room to decline. The company initially went public with 80 million shares but 474 million more shares will soon become eligible for insiders to sell, which will weigh on the stock price. He concluded the company has very little growth for being such a young company.
Twitter's price action has not been good, and the stock could decline to $40, Adami said. Finerman was not a buyer of Twitter.
Richard "Dick" Bove, vice president of equity research at Rafferty Capital, was a guest on the show. Citigroup (C) will pay a $400 million fraud charge for its operations in Mexico. Bove said this is only "the tip of the iceberg." He added that Citigroup was the only major bank to experience loan loss increases in the fourth quarter, while revenue declined for the third consecutive quarter.
He concluded that management is not doing its job to run such a complex institution and questioned why investors would rather own Citigroup instead of Bank of America (BAC) or Wells Fargo (WFC).