NEW YORK (TheStreet) -- The S&P 500 closed above 2,000 for the first time in its history

On CNBC's "Fast Money" TV show, the trading panel discussed the broader market. 

Tim Seymour, managing partner of Triogem Asset Management, said investors should look for sectors that have been underperforming as the broader market moves higher. Specifically, he referred to the technology and energy sectors. 

Dan Nathan, co-founder and editor of riskreversal.com, said the S&P 500 isn't that expensive based on forward earnings because of the record number of share repurchases and large cost-cutting plans. He doesn't find U.S. equities as a whole to have an attractive risk-to-reward setup. 

Brian Kelly, founder of Brian Kelly Capital, said that based on the market cap to GDP ratio, stocks have only been this high a few other times, namely in 2000 and 2007, before selling off severely. At the very least, the market is "fully valued" but can keep going higher for the time being due to low interest rates, M&A, and financial engineering. 

Guy Adami, managing director of stockmonster.com, reasoned the stock market did not sell off in 2007 due to valuation but a collapse in the banking industry. He said the market seems likely to continue higher and he pointed out the strength in biotech stocks. 

Itay Michaeli, vice president of Citi Research, has a buy rating and $43 price target on shares of MobilEye (MBLY) , which climbed 8% on Tuesday. He said the company's safety products can experience margin expansion in the future. The lower pricing points and high quality allows Mobileye to maintain market share, which also seems poised to grow. 

Adami said the industry seems unlikely to be commoditized anytime soon. While the valuation is high, the stock is interesting on the long side. 

Kelly asked, what would stop Google (GOOGL - Get Report) from making the same thing? 

Seymour pointed out that MobilEye has a lot contracts and patents that would make it hard for other companies to infringe on its products. He also pointed out MobilEye's strong revenue growth. 

Nathan said investors who like MobilEye should only include it in their portfolio as part of their speculative holdings. He advised against selling the stock short. 

Kelly said shares of Smith & Wesson (SWHC) had "got ahead of itself." He suggested the company's weak earnings could be a negative read-through on a company like Cabela's (CAB) .

Pat Gelsinger, CEO of VMware (VMW - Get Report) , said the company did not lower its guidance, it simply stopped providing multi-year guidance at the suggestion of analysts. As for its business, customers should enjoy the secure infrastructure VMware manages for them. 

Adami was uninterested in VMware or EMC Corp. (EMC) , which owns 80% of VMW. He reasoned that both stocks have been roughly flat over the past three years. Seymour agreed, saying VMware is neither a buy nor a sell. There is nothing really bad about the company, but there aren't really any bullish catalysts either. 

Kelly said investors should wait for Microsoft (MSFT - Get Report) to break out over $45.50 to get long. After that, they should use a stop-loss of $45. 

Seymour said he still likes Best Buy (BBY - Get Report) for the second half of 2014. He said the stock is cheap while earnings and free cash flow are improving. The stock has decent support near $29. 

Nathan said Best Buy may rally higher by a few dollars but seems likely to go to "zero" in the long-term. Adami said investors could trade Best Buy on the long side but should use a tight stop-loss. 

Adami called Orbitz Worldwide (OWW) the "loser" following American Airlines Group's (AAL) decision to remove its fares from the site. Priceline.com (PCLN) is the "winner." 

Kelly agreed, saying investors should avoid Orbitz and stick with stocks that provide customers with value such as TripAdvisor (TRIP - Get Report) .

Isis Pharmaceuticals (ISIS) climbed 11% and was the first stock on the show's "Pops & Drops" segment. Adami, who made ISIS his final trade pick on Monday, said the stock still seems poised to "go a lot higher from here."

DSW Inc. (DSW) popped 9%. Nathan said footwear is doing well and the stock could rally into the mid-$30s. 

Trina Solar (TSL) fell 8%. Seymour said he is staying long the stock despite the downward pressure from a spotty earnings report.

Sanderson Farms (SAFM - Get Report) dropped 6%. Kelly said investors should get out of this stock.

Ari Wald, head of technical analysis and institutional portfolio strategy at Oppenheimer & Company, said the S&P 500 seems poised to move higher, possibly to 2,080 following its breakout over its previous highs made in July. He also likes Halliburton (HAL - Get Report) near current levels, arguing that it has underperformed the broader market over the short term. 

The traders were asked for their top "catch up" trades going forward:

Adami is a buyer of General Electric (GE - Get Report) and Nathan is buying Twitter (TWTR - Get Report) . Seymour said to buy Procter & Gamble (PG - Get Report) and Kelly is a buyer of Freeport-McMoRan (FCX - Get Report) . 

On the show's "Street Fight" segment, Adami argued that Treasury yields are poised to decline and therefore Treasury bonds are set to rise. Seymour disagreed, arguing the opposite is true. 

Adami, the Treasury bond bull, argued that rates for the 10-year Treasury bond seem poised to fall to 2% and the iShares 20+ Year Treasury Bond ETF (TLT - Get Report) will move higher. He said if the economy is doing as well as everyone seems to think, then bond yields should be moving higher. "Something is going on here," and no one's really sure what exactly that is, he concluded. 

Seymour argued the ProShares UltraShort 20+ Year Treasury Bond ETF (TBT - Get Report) is poised to move higher as bond prices seem likely to decline amid rising bond yields. He argued bond yields are low due to government intervention and said both the labor market and broader economy are doing well. He concluded that rates will move up slowly over time and not rapidly overnight, but higher nonetheless. 

Nathan said it doesn't seem likely to end well with both Treasury yields falling and stock prices rising. Kelly said he wanted to be a short-seller of bonds but found the current environment to be too difficult. 

CNBC's John Jannarone said Burger King (BKW) has been pursuing Tim Horton's (THI) for a long time the donut company wasn't interested in being bought until recently. Burger King is paying a 57% premium for THI from month ago prices. According to Jannarone, Burger King management says it did not make the acquisition for cost-cutting synergies or for tax purposes, (Tim Horton's is based in Canada). So it would appear the company did the deal as a means to expand its business operations. 

Adami said investors can continue to be long Burger King and McDonald's (MCD - Get Report)   but he admitted to liking McDonald's more at current levels. 

Seymour said the move should help Burger King get more involved with coffee products. He added that famed investor Warren Buffett's involvement in this deal will likely have a big impact in Washington due to the current tax inversion debacle. 

Kelly said investors can get long TiVo (TIVO - Get Report) with a tight stop-loss at $13.50. 

For their final trades, Seymour is a buyer of Best Buy and Nathan said to buy Sprint (S - Get Report) . Kelly is a buyer of iShares Silver Trust ETF (SLV - Get Report) and Adami said to buy Tenet Healthcare (THC - Get Report) .


-- 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.