NEW YORK (TheStreet) -- Traders don't call it "Turnaround Tuesday" for nothing. After quickly sliding lower on the day and falling by more than 1%, the S&P 500 erased its morning losses and ended higher on the day by 0.6%.
Tuesday's action was very healthy for the bulls, Guy Adami, managing director of stockmonster.com, said on CNBC's "Fast Money" TV show. Investors who want to get long the S&P 500 can use Tuesday's low as a stop-loss. Earnings will be in the spotlight next week and that will be a big driver for stocks, he added.
After the rally, Dan Nathan, co-founder and editor of riskreversal.com, said he's not so sure he'd jumped into stocks given the volatility the market has seen lately. It's surprising how poorly the transport and industrial sectors have done as the economy seems to be improving.
The Dow Jones Industrial Average has declined in two consecutive quarters, pointed out Steve Grasso, director of institutional sales at Stuart Frankel. The last two times this happened was in 2007 and 2000. While he's not predicting a financial collapse, he does expect more downside in stocks.
Because oil prices have declined so significantly, it has also weighed on solar stocks. That's why Karen Finerman, president of Metropolitan Capital Advisors, used some of the industry's recent weakness to buy more shares of Solaredge Technologies (SEDG - Get Report). If oil bottoms soon, this stock should do well.
However, the performance of oil is likely tied to the potential nuclear deal with Iran. According to Helima Croft, head of commodity strategy at RBC Capital Markets, a deal on Friday will likely put pressure on oil prices, which could decline to $45 per barrel. No deal will likely give the commodity support.
In order for oil prices to climb back toward $75 per barrel, suppliers will have to reduce production. The only question is if they will actually do it, she said.
Adami said oil prices will retest the lows, or at least get close to doing so. He's a buyer of refinery stocks like Valero Energy (VLO - Get Report) and Tesoro Corp. (TSO), which benefit from lower crude prices.
Turning to casino stocks, Credit Suisse upgraded MGM Resorts (MGM - Get Report), Las Vegas Sands (LVS - Get Report) and Wynn Resorts (WYNN - Get Report), which rallied 4.3%, 3.8%, and 7.2% on the day, respectively.
This seems like nothing more than a contrarian call. Nathan explained the analyst seems to have upgraded the stocks solely because they have been beaten down so badly. There's no reason to get long right now, he said.
While the selloff is making these stocks more attractive, Finerman agreed that she would not be buying either.
However, not everyone was against the casinos. Adami said investors can expect more upside out of Wynn Resorts and Las Vegas Sands.
For their final trades, Grasso is buying Fitbit (FIT - Get Report) and Nathan is selling the SPDR S&P 500 ETF (SPY - Get Report). Finerman said to buy Teva Pharmaceutical Industries (TEVA - Get Report) and Adami is buying Las Vegas Sands.