'Fast Money' Recap: Riding the Momentum

NEW YORK (TheStreet) -- The S&P 500 extended its winning streak to six straight sessions, finishing higher by 0.41%. The Nasdaq finished up 0.97%.

Guy Adami, managing director of stockmonster.com, said momentum names including Amazon (AMZN), Netflix (NFLX) and biotech stocks still look good on the long side. 

Brian Kelly, founder of Brian Kelly Capital, questioned why the market was not up more on Tuesday after many momentum stocks outperformed the broader market. 

Tim Seymour, managing partner of Triogem Asset Management, said the selloff for momentum stocks seemed "healthy," given how high the valuations were. 

Karen Finerman, president of Metropolitan Capital Advisors, said she is generally a buyer of put options on the SPDR S&P 500 Trust ETF (SPY) when the CBOE Volatility Index (VIX.X) is near or below $13. 

Kelly said he added to his long position in FireEye (FEYE) because the stock rallied on bad news, a sign of a potential bottom. 

Dan Nathan, co-founder and editor of riskreversal.com, made a guest appearance on the show. He said the price action in Netflix concerned him. He was a buyer of the May $370 put options at $14.00. He admitted that the stock could continue higher, so he is keeping a "tight" stop-loss on the position. 

Adami disagreed, saying he would stay long Netflix at current levels. He said investors should stay long Gilead Sciences (GILD) and Amgen (AMGN), adding Gilead should be trading closer to $80. Seymour said to stay long GILD. 

Adami was a buyer of JetBlue Airways (JBLU), although the stock has had trouble staying above $9. The stock has a high level of short-interest and is cheap by valuation. 

Kelly said Tesla Motors (TSLA) looks due for a pullback. He suggesting using the recent move higher to take profits. Seymour worried about Tesla's competition in the future. 

Seymour was a buyer of McDonald's (MCD) over Yum! Brands (YUM), adding Yum! faces stiff resistance near $80. Adami disagreed, saying he would rather be long YUM, instead than MCD. 

Richard Bove, vice president of equity research at Rafferty Capital, has a hold rating on Citigroup (C) with a $48 price target. He said the bank has had too many management changes in the past two decades and is currently not managed well. He does not like the level of Citigroup's international exposure. He concluded  the stock is cheap because it has so many headwinds.

Seymour said Citigroup is a buy because the market has priced in its potential headwinds. 

Tuesdays have produced an 8% gain in 2014 versus a loss of 6% for all of the other days of the week. Seymour said the trade is likely over now that investors are aware of it. 

Mark Newton, chief technician analyst at Greywolf Execution Partners, said Biogen Idec (BIIB) has sold off too much over the past seven weeks. He added the stock has found support near its one-year trend line and could move up to $325 in the short term and up to $360 sometime this summer.

In addition, Facebook (FB) could climb to $67 because it has cleared the $63.18 level. Apple (AAPL) looks good on the long side, based on appealing risk-to-reward metrics. 

Michael Kors (KORS) jumped 3% and was the first stock on the show's "Pops & Drops" segment. Finerman called the company a "great retailer" but did not say if she was a buyer or seller. 

Lexmark International (LXK) fell 11%. Kelly said $40 seems to be support but he would sell the stocks on rallies. 

Royal Philips NV (PHG) dropped 6%. Adami said the company reported poor earnings-per-share results but had good revenue. 

Conn's (CONN) popped 8%. Seymour cited hedge fund manager David Einhorn's positive comments and investment in the stock as the catalyst for the move higher. 

Jonathan Weinbach, senior vice president and executive producer of Mandalay Sports Media, said the company plans to debut a nine-episode series about street soccer called Every Street United on Microsoft's (MSFT) Xbox platform. It will be one of the first original programs to launch on Xbox. 

Kelly was a buyer of Disney (DIS) over Netflix. Seymour agreed. 

For their final trades, Finerman suggested taking some profits in United Rentals (URI) and Adami was a buyer of Facebook. Kelly was a buyer of Control4 (CTRL) and Seymour said to buy Citigroup.


-- 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.

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