NEW YORK (TheStreet) -- The S&P 500 traded higher for most of Tuesday until the last hour, when stocks fell in opposition to the strengthening dollar, up over 1%. Oil prices remained strong throughout the day, with the commodity finishing up 1.6%.
Sentiment for oil has "changed quite a bit" as investors seem more bullish, Brian Kelly, founder of Brian Kelly Capital, said on CNBC's "Fast Money." Although the dollar rallied on Tuesday, Kelly says it could be in the middle of a larger correction after such a big rally.
Tim Seymour, managing partner of Triogem Asset Management, said other currencies and emerging markets also traded well. He believes Brent crude oil has "definitely" bottomed and the oil market can trade higher. He likes oil for the long term.
The refinery stocks have been the best energy trade for the past few months, said Guy Adami, managing director of stockmonster.com. However, you might not want to be invested in a company like Tesoro Corp. (TSO) if the stock fails to stay above $85. If it finds support above that level, investors should stay long.
Oil is "still in trouble," according to Tom Kloza, co-founder of the Oil Price Information Service. The second quarter will be rough for the commodity, while prices could increase in the third quarter. But there is simply too much supply right now, as the recent inventory results have indicated. Gasoline prices are also likely to stay low all year.
Many investors believe crude and large integrated oil stocks can outperform the broader market. In the near term, that may be true, according to Steve Grasso, director of institutional sales at Stuart Frankel. However, he reasoned that oil is not a buy at current levels. He also believes the broader market could be headed lower.
Grasso added that he's not in a rush to buy any stocks, having recently sold many of his long positions. If there's one stock out there to buy it's Apple (AAPL - Get Report), he said. Apple has a strong ecosystem, Apple Pay is doing well, and further capital allocation is expected, he said.
Apple is "clicking on every cylinder," Seymour added. iPhone sales remain strong, China is now a large opportunity and the company is positioned to do well over the long term.
Guest Paul Hickey, co-founder of Bespoke Investment Group, said negative earnings revisions for the first quarter is actually a bullish sign. He said as sentiment worsens, stocks tend to do better. He noted 697 companies have had estimates revised lower by analysts for the current quarter, compared to only 305 companies that were revised higher.
According to Hickey, technical study over the past six years has found the S&P 500 tends to decline by 1.2% -- and trades higher just 43% of the time -- when analysts are bullish and revise more earnings higher than lower. In contrast, when analysts are bearish and lower more estimates than they raise, the S&P 500 is positive a whopping 80% of the time, posting an average gain of 2.4%.
For their final trades, Seymour is buying the iShares MSCI South Korea Capped ETF (EWY - Get Report) and Grasso is a buyer of Potash (POT). Kelly said to buy put options on the SPDR S&P 500 ETF (SPY - Get Report) as a means for portfolio protection and Adami is buying Twitter (TWTR - Get Report).