NEW YORK (TheStreet) -- U.S. equities rallied higher on Monday but closed near session lows.
On CNBC’s “Fast Money” TV show, Dan Nathan, co-founder and editor of riskreversal.com, was unsure whether investors should trust this recent rally. Until the market shows more promise, he is selling the rallies.
Tim Seymour, managing partner of Triogem Asset Management, said Monday’s rally looked like a continuation of Friday's. He added the Federal Reserve is the more important market-moving component, not geopolitics.
Pete Najarian, co-founder of optionmonster.com and trademonster.com, disagreed with Seymour, saying geopolitical news is what’s moving the market right now. He added that industrial and large-cap technology stocks are doing well while financial stocks fail to rally.
Karen Finerman, president of Metropolitan Capital Advisors, said she is disappointed in the price action from the financial sector. She is taking a look at the CBOE Volatility Index (VIX.X) on the long side for portfolio protection, following its recent pullback.
Dennis Gartman, editor and publisher of The Gartman Letter, said Libya is another potential geopolitical headwind that is not on many investors’ radar. He added that it could become an issue if the country’s oil production comes offline. He is a buyer of WTI crude oil and a seller of brent crude oil, the latter of which he believes will decline over the next five to six months.
Najarian said investors can look to buy Nuance Communications (NUAN), but only after it has settled down over the next few days. Look to get long near $15.50 or $16, he added.
Nathan called Nuance Communications “dead money” for the time being, saying he would be a buyer at $15.
Seymour acknowledged Tesla Motors (TSLA) for its great products and technology, but is not a buyer of the stock based on its valuation.
Finerman added that she is also not a buyer of Tesla based on valuation, but is not a short-seller either.
Najarian said it’s hard to buy Tesla knowing that it is not yet profitable.