While the S&P 500 fell 0.7%, the transport sector traded well, Guy Adami, managing director of stockmonster.com, said on CNBC's "Fast Money" TV show. He also pointed out the iShares Russell 2000 ETF (IWM) is still above $121, a bullish sign for the overall market.
Adami said if the market were going to sell off, it would have started to do so by now. He said that because it has lingered near its all-time highs, the S&P 500 seems likely to go higher, he said.
"I like the airlines," David Seaburg, managing director and head of sales trading at Cowen & Company, about the transport sector. Specifically, he likes Delta Air Lines (DAL) and Southwest Airlines (LUV). Seaburg also likes financials and real estate investment trusts.
The $40 level in Delta is critical, according to Tim Seymour, managing partner of Triogem Asset Management. If that level fails to act as support, investors need to sell the stock. Because of attractive valuations the airlines are worth a shot on the long side, he said.
Until recently, Delta has been selling off, Adami said. Investors can stay long the stock, but should use Tuesday's low of $39 as their stop-loss. Adami also says investors should stay long bank stocks headed into next week's Federal Reserve meeting, in particular Goldman Sachs (GS), Blackstone (BX) and U.S. Bancorp (USB).
The Federal Reserve meeting and much economic data are set for next week, Seymour added. However, investors shouldn't be too shortsighted and realize that the global economy is improving. With that being said, he likes German stocks and the U.S. dollar, expecting the euro and Australian dollar to both fall.
The news out of Greece is what's driving U.S. stocks right now, said Brian Kelly, founder of Brian Kelly Capital. Investors should simply sit back and wait for the broader market to either breakout or breakdown, especially with the Fed on tap next week.
Twitter is still in trouble because it has no user growth momentum, Seaburg said. Most investors are hoping for a buyout, which is highly unlikely at this point. He's short the stock and looking for it drop below $30.
Seymour took the other side, acknowledging the company has its issues, but also has plenty of potential. Given the recent selloff, he would rather be long the stock than short.
Kelly and Adami think $35 is the level to watch and think ivestors can stay long Twitter so long as the stock stays above that level.
For their final trades, Seaburg is selling Twitter and Seymour said to sell the CurrencyShares Australian Dollar ETF (FXA). Kelly is taking profits in the Financial Select Sector SPDR ETF (XLF) and Adami is buying FedEx (FDX).