NEW YORK (TheStreet) -- The S&P 500 roared 1.15% higher Friday, erasing this week’s losses.
On CNBC's “Fast Money” TV show, Tim Seymour, managing partner of Triogem Asset Management, reasoned that equity markets appear to have "put in a bottom" following what has been a "fantastic earnings season."
Brian Kelly, founder of Brian Kelly Capital, said that he covered some of his short positions headed into to the weekend, reasoning that there is geopolitical risk to both long and short positions right now. He also sold some of his Treasury bond position.
Pete Najarian, co-founder of optionmonster.com and trademonster.com, suggested that a lot of investors just wanted to reduce exposure headed into this weekend, which carries a lot of uncertainty. He pointed out the CBOE Volatility Index (VIX.X) remains elevated.
Guy Adami, managing director of stockmonster.com, added that the market technicals have held up very well, with 1,915 acting as support for the S&P 500. He added that McDonald's (MCD) looks good on the long side.
John Kingston, director of news at Platts, said that it is unlikely for a large amount of oil production to come offline anytime soon, despite the ongoing issues in the Middle East. He added that the monthly Chinese oil demand numbers are volatile, and that investors should look at the trend, not just a particular month when gauging the country’s demand.
Najarian's trade on oil is via long positions in Devon Energy (DVN) and BP plc (BP). Kelly said investors could buy Valero Energy (VLO). Seymour is a buyer of Total S.A. (TOT) for its dividend, as well as Chevron (CVX). Adami is a buyer of Exxon Mobil (XOM), saying shares could run to $110.
Seymour said investors can buy McDonald's for its low valuation and solid dividend. Najarian admitted that McDonald’s has an attractive dividend, but argued that it has no growth. Kelly added that McDonald's is struggling to grow its same-store sales because of the increased competition.
Shares of Tekmira Pharmaceuticals (TKMR) soared 45% on Friday. Najarian said investors who want to play the extremely volatile stock should do so via options in order to limit their risk. Kelly agreed, adding, "Who knows where this is going."
Sotheby's (BID) fell 8% after missing on top- and bottom-line estimates. Adami said investors should buy the stock, reasoning that it could make a run to $42 relatively soon. Seymour disagreed, arguing that the chart of Sotheby’s looks poor.
Kelly said investors who want to buy Sotheby’s could use $35 as long-term support.
Monster Beverage (MNST) climbed 7% and was the first stock on the show’s "Pops & Drops" segment. Najarian said the stock is going higher.
Nvidia (NVDA) popped 9%. Adami said the company's gross margins were impressive and the stock looks poised to climb toward $20.
MercadoLibre (MELI) jumped 15%. Seymour said investors should be careful following the big move to the upside.
SolarCity (SCTY) dropped 7%. Kelly said he is a seller of the stock.
Najarian pointed out the bullish options activity in shares of Louisiana-Pacific (LPX). Specifically, he cited the November $13 call options.
For their final trades, Seymour is buying the iShares MSCI Emerging Markets ETF (EEM) and Najarian is a buyer of American Airlines (AAL). Adami is buying Lions Gate Entertainment (LGF) and Kelly is buying the iShares MSCI Hong Kong ETF (EWH).
-- Written by Bret Kenwell in Petoskey, Mich.