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NEW YORK (TheStreet) -- The market seems to be nearing a bottom, at least temporarily, and has provided investors with buying opportunities. Jon Najarian, co-founder of optionmonster.com and trademonster.com, said it seems like there were "capitulations" in crude oil, bonds and possibly even German equities.
Capitulations can be spotted when there are extreme moves in certain assets, followed by strong reversals. Ebola just poured fuel on the fire, he said. Najarian said it's okay to start buying some stocks now.
"I feel better today than I have the past few days," Brian Kelly, founder of Brian Kelly Capital, said. Sentiment got very bad, he said, and so long as there isn't another Ebola scare the stock market is likely near a bottom.
Steve Grasso, director of institutional sales at Stuart Frankel, said the S&P 500 should be able to rally back to its 200-day moving average near 1,905. If the index can't get above that level and find support, it could be headed down to 1,765.
If the market is near a bottom, what should investors buy? Karen Finerman, president of Metropolitan Capital Advisors, bought Gap (GPS) , Manitowoc (MTW) and call options in Bank of America (BAC) and JPMorgan (JPM) .
The bottom might not be in yet, but should be within three to five days, said Mark Newton, chief technical analyst at Greywolf Execution Partners. Small-cap stocks have outperformed large-caps for three consecutive sessions, which is positive. So is the reversal in the energy sector. On the negative side, weekly momentum is waning, now near three-year lows. He suggested investors sell stocks if the S&P 500 bounces back to 1,900. If it can't find support,1,757 isn't out of the question for the index.
Google (GOOGL) slid in after-hours trading after missing on revenue and earnings estimates on Thursday after the close. Neil Doshi, co-head of technology and media at CRT Capital, said the company had a nice surprise with its cost-per-click data, but its paid clicks decelerated. Between the two metrics, Google still has a relatively healthy business, with revenue climbing 19% year over year. Doshi has a buy rating on Google with a $660 price target.
Google is likely to climb back to $600 soon, Grasso said. He used the recent pullback to add to his long position. Najarian added that there is nothing "scary" about these results.
If the stock breaks below $525, investors should sell the stock, Kelly countered. The company's growth is slowing and that's a bad sign.
Netflix (NFLX) reported earnings late Wednesday, then slid 20% Thursday. "The story is over for Netflix," Kelly said, and investors should avoid the stock. Najarian still thinks Netflix is the go-to streaming service, but the stock has more downside. He thinks the stock could decline to $300.
Rich Greenfield, media and technology analyst at BTIG, is sticking with his call after upgrading Netflix to a buy rating with a $600 price target earlier this week. He said subscriber growth took a hit only because of higher prices. Consumers will continue to stream. As the content improves, so should the number of subscribers.
United Rentals (URI) climbed 7% and was the first stock on the show's "Pops & Drops" segment. FInerman said the company had good margins and provided solid guidance.
Chesapeake Energy (CHK) jumped 17%. Najarian said the company is selling its assets from the Utica shale and received some analyst upgrades on Thursday.
Mattel (MAT) dropped 3%. Grasso said he would avoid the stock, which is down some 38% on the year.
eBay (EBAY) fell 5%. Kelly is not a buyer.
Apple (AAPL) released its new iPads on Thursday but they had little effect on the stock, which closed 1.3% lower. Kelly said the stock seems likely to stay rangebound between $94 and $102 until the holiday season. Finerman, who is long Apple, said investors can continue to sell upside calls against Apple.
Apple is likely to be a "safety" play if the market falls, Grasso said, but will outperform if the market rallies.
For their final trades, Jon Najarian is buying Ambac Financial (AMBC) and Kelly is buying the Market Vectors Gold Miners ETF (GDX) . Grasso is a buyer of Google and Finerman is buying call options in Bank of America.
-- Written by Bret Kenwell.
Capitulations can be spotted when there are extreme moves in certain assets, followed by strong reversals. Ebola just poured fuel on the fire, he said. Najarian said it's okay to start buying some stocks now.
"I feel better today than I have the past few days," Brian Kelly, founder of Brian Kelly Capital, said. Sentiment got very bad, he said, and so long as there isn't another Ebola scare the stock market is likely near a bottom.
Steve Grasso, director of institutional sales at Stuart Frankel, said the S&P 500 should be able to rally back to its 200-day moving average near 1,905. If the index can't get above that level and find support, it could be headed down to 1,765.
If the market is near a bottom, what should investors buy? Karen Finerman, president of Metropolitan Capital Advisors, bought Gap (GPS) , Manitowoc (MTW) and call options in Bank of America (BAC) and JPMorgan (JPM) .
The bottom might not be in yet, but should be within three to five days, said Mark Newton, chief technical analyst at Greywolf Execution Partners. Small-cap stocks have outperformed large-caps for three consecutive sessions, which is positive. So is the reversal in the energy sector. On the negative side, weekly momentum is waning, now near three-year lows. He suggested investors sell stocks if the S&P 500 bounces back to 1,900. If it can't find support,1,757 isn't out of the question for the index.
Google (GOOGL) slid in after-hours trading after missing on revenue and earnings estimates on Thursday after the close. Neil Doshi, co-head of technology and media at CRT Capital, said the company had a nice surprise with its cost-per-click data, but its paid clicks decelerated. Between the two metrics, Google still has a relatively healthy business, with revenue climbing 19% year over year. Doshi has a buy rating on Google with a $660 price target.
Google is likely to climb back to $600 soon, Grasso said. He used the recent pullback to add to his long position. Najarian added that there is nothing "scary" about these results.
If the stock breaks below $525, investors should sell the stock, Kelly countered. The company's growth is slowing and that's a bad sign.
Netflix (NFLX) reported earnings late Wednesday, then slid 20% Thursday. "The story is over for Netflix," Kelly said, and investors should avoid the stock. Najarian still thinks Netflix is the go-to streaming service, but the stock has more downside. He thinks the stock could decline to $300.
Rich Greenfield, media and technology analyst at BTIG, is sticking with his call after upgrading Netflix to a buy rating with a $600 price target earlier this week. He said subscriber growth took a hit only because of higher prices. Consumers will continue to stream. As the content improves, so should the number of subscribers.
United Rentals (URI) climbed 7% and was the first stock on the show's "Pops & Drops" segment. FInerman said the company had good margins and provided solid guidance.
Chesapeake Energy (CHK) jumped 17%. Najarian said the company is selling its assets from the Utica shale and received some analyst upgrades on Thursday.
Mattel (MAT) dropped 3%. Grasso said he would avoid the stock, which is down some 38% on the year.
eBay (EBAY) fell 5%. Kelly is not a buyer.
Apple (AAPL) released its new iPads on Thursday but they had little effect on the stock, which closed 1.3% lower. Kelly said the stock seems likely to stay rangebound between $94 and $102 until the holiday season. Finerman, who is long Apple, said investors can continue to sell upside calls against Apple.
Apple is likely to be a "safety" play if the market falls, Grasso said, but will outperform if the market rallies.
For their final trades, Jon Najarian is buying Ambac Financial (AMBC) and Kelly is buying the Market Vectors Gold Miners ETF (GDX) . Grasso is a buyer of Google and Finerman is buying call options in Bank of America.
-- Written by Bret Kenwell.
