'Fast Money' Recap: How to Trade After the Market's Drop

NEW YORK (TheStreet) -- The U.S. equity market is having its worst week since July, with the S&P 500 down 1.62% and the Nasdaq off 1.94% Thursday. 

On CNBC's "Fast Money" TV Show, Pete Najarian, co-founder of optionmonster.com and trademonster.com, noted the financial and technology sectors, which have been pretty strong the past few sessions, took a beating on Thursday. If stocks like Microsoft (MSFT) , Intel (INTC) and Hewlett-Packard (HPQ) open lower on Friday, he is a buyer. 

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Guy Adami, managing director of stockmonster.com, still believes the iShares Russell 2000 ETF (IWM) is headed to $108. However, he said it will be interesting to see if it finds support there or not. The S&P 500 appears to have support near current levels. 

Jon Najarian, co-founder of optionmonster.com and trademonster.com, said the CBOE Volatility Index (VIX.X) isn't high enough right now to be in "panic mode." However, it was actually a good thing to see the market close at the lows on Thursday as opposed to bouncing slightly. 

Brian Kelly, founder of Brian Kelly Capital, said it will interesting to see if investors buy into the market following the recent pullback. He said the U.S. dollar is "way ahead of itself" and ripe for a pullback.

Pete Najarian said the strong U.S. dollar has probably not been priced into the stock prices of most companies that have international exposure. However, he still likes large-cap tech stocks, many of which have mostly domestic exposure. 

Adami said interest rates seem poised to move lower. Bonds should perform better as a result.

Dan Niles, founding partner at AlphaOne, said it seems likely that technology companies will begin issuing negative pre-announcements leading into the upcoming earnings report. He likes stocks such as Google (GOOGL) and Facebook (FB) . He also said Apple (AAPL) is improving its product offerings and will likely begin taking back market share. He is a buyer of Alibaba (BABA) and not Yahoo! (YHOO) .

Pete Najarian said he continues to like Yahoo!, which is being vastly undervalued near current levels. "I think Yahoo! has got much more upside."

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Jon Najarian added that Yahoo! has been sold short by many investors as a hedge against their long position in Alibaba. Once options become available next Monday, these hedges will be taken off and shares of Yahoo! should move higher. The true value of the stock is "well north" of $50, he reasoned. 

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