NEW YORK (TheStreet) -- The S&P 500 eked out a gain on Monday, closing higher by 0.03%.
On CNBC's "Fast Money" TV show, the trading panel took a look at Chinese equities.
Tim Seymour, managing partner of Triogem Asset Management, said Chinese stocks appear to breaking out as macro data continue to be very encouraging. He added that China is the cheapest major emerging market and investors are "far from missing out" by getting in now.
Josh Brown, CEO and co-founder of Ritholtz Wealth Management, said when the Shanghai composite starts to break out then it's "way more exciting." This is because only Chinese residents can buy stocks in this index -- when it gets rolling, it can be very hard to stop, he reasoned.
Guy Adami, managing director of stockmonster.com, said the best way to play a Chinese economic acceleration with a U.S. stock is through Alcoa (AA). The stock seems likely to push up to $18.
Pete Najarian, co-founder of optionmonster.com and trademonster.com, said several industrial stocks with Chinese exposure -- such as Freeport-McMoRan (FCX), Vale (VALE), and Cliffs Natural Resources (CLF) -- along with Chinese Internet names like Baidu (BIDU) suggest broad-based Chinese equities may have been in store for a rally.
Dennis Gartman, editor and publisher of The Gartman Letter, remains a buyer of Alcoa and has reiterated this stance since last fall. He is neutral on U.S. stocks at the moment, but continued to stress that we are still in a bull market. He added the initial public offering surge is somewhat similar to the late-1990s and early-2000s. "I urge caution" in this regard, he concluded.
Gartman made his IPO comments about El Pollo Loco's (LOCO) recent IPO. The stock is up 83% since its going public on Friday.
Adami reasoned that perhaps the valuations in some of the fast casual stocks, such as El Pollo Loco and Chipotle Mexican Grill (CMG), aren't as overstretched as many investors first thought, given the growth.
Brown suggested that investors could buy shares of El Pollo Loco on a pullback. The company has posted 11 consecutive quarter of same-store growth.