NEW YORK (TheStreet) -- The S&P 500 rallied on Friday, climbing 0.86%, but still suffered its worst five-day stretch in eight weeks.
On CNBC's "Fast Money" TV show, Pete Najarian, co-founder of optionmonster.com and trademonster.com, said investors should pay attention to the CBOE Volatility Index (VIX.X) now that it is back over $15, but don't be overly concerned about it. He said he remains bullish on equities and is considering selling some volatility.
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Brian Kelly, founder of Brian Kelly Capital, pointed out that energy stocks traded well and WTI crude oil is likely near a bottom. He is a buyer of the Energy Select Sector SPDR ETF (XLE) and the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) .
Tim Seymour, managing partner of Triogem Asset Management, said he remains bullish on equities but suggested that volatility is poised to increase. It might be painful now, but higher volatility is actually good for the market, he said.
Eric Jackson, founder of Ironfire Capital and a Street.com contributor, discussed Yahoo!'s (YHOO) new activist investor, Starboard Value. He said the big opportunity for Yahoo! is not necessarily a merger with AOL (AOL) but with the tax efficiencies when handling its Alibaba (BABA) and Yahoo! Japan stakes. It could be worth $15 to $17 per share for Yahoo! investors. The company could even be a takeover target.
Najarian said he is still long Yahoo! and plans to add to his position next week. Kelly argued that Yahoo!'s core business is being undervalued by too much, and for that reason alone investors can consider a long position. He wondered if Softbank (SFTBY) should consider buying Yahoo!.
Seymour said that the "sum of the parts" valuation -- even without tax efficiency -- for Yahoo! is $46 per share, making the stock undervalued. Adami said he's not sure that Yahoo! will be able to clear $50 but thinks a move above $45 seems reasonable. Najarian reminded investors that Alibaba options would begin trading on Monday.
Kelly said the junk bond market -- and specifically exchange-traded funds such as the SPDR Barclays Capital High Yield Bond ETF (JNK) and iShares High Yield Corporate Bond ETF (HYG) -- seem likely to rally before declining even further.
Adami pointed out the rally in the iShares 20+ Year Treasury Bond ETF (TLT) and said rates on the 10-year Treasury bond seem likely to decline toward 2%.
Agios Pharmaceuticals (AGIO) climbed 19% and was the first stock on the show's "Pops & Drops" segment. Adami said he continues to like biotech stocks, mainly Celgene (CELG) and Gilead Sciences (GILD) .
Altria (MO) jumped 2%. Seymour said the stock has a low valuation and an attractive yield. He is staying long.
Pfizer (PFE) dropped 1%. Najarian said the stock's forward valuation is cheap and he is a buyer.
Micron (MU) popped 7%. Kelly said investors can buy the stock because it seems poised to move above $35.
BlackBerry (BBRY) climbed 5% after reporting a smaller-than-expected loss. Kelly said he added to his long call option position since the company's new phone appears to have enough pre-orders to at least break even. He suggested BlackBerry focus on enterprise solutions, something at which it is very good.
Nike (NKE) jumped 12% on a much stronger-than-expected earnings report. Adami said that while the report was great the stock has moved too high, too fast. He said to buy it on pullbacks. Seymour said he sold one-third of his long position.
Because of Nike's strong report, Najarian said he likes Foot Locker (FL) , which has a low valuation and strong balance sheet.
For their final trades, Seymour is a buyer of Exxon Mobil (XOM) and Kelly said he is covering his short position in the iShares High Yield Corporate Bond ETF in anticipation of a bounce higher. Najarian is a buyer of Yahoo! and Adami said to buy Bristol-Myers Squibb (BMY) .
-- Written by Bret Kenwell in Petoskey, Mich.