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‘Pockets’ of Value in Stocks Remain: Pro

Friday, 10 May 2013 | 2:03 PM ET
'Pockets' of Value in Stocks Remain: Pro
Friday, 10 May 2013 | 12:02 PM ET
Cyclical stocks could still play "catch-up," says Stephanie Link of TheStreet.com.

Even after a week with all-time highs in the Dow Jones Industrial Average and the S&P 500, the market still holds opportunity, TheStreet CIO Stephanie Link said Friday.

"It bothers just a little bit that everyone's starting to talk about the cyclical rotation when we were talking about it for the last two months," she said. "That said, I think there is some more catch-up that you'll see because if you look at the cyclical index just in the last two weeks, they've outperformed the consumer, defensives by 450 basis points.

"And that's vs. the prior five weeks where the defensives outperformed the cyclicals by 700 basis points."

On CNBC's "Fast Money," Link also said that it was time to lock in some gains, adding that she had sold stock in United Technologies.

Link also said that it was time to look at "lagging cyclicals," such as Stanley Black & Decker, Ensco and JPMorgan.

"So, I think there's definitely pockets of where you can buy on the cyclical trade," she said.

Enis Taner of RiskReversal.com said that he still liked the health care sector, specifically seeing value in a name like UnitedHealth.

"I think you have some of the pharma names that are still cheap on a valuation basis," he added. "The area I would definitely still stay away from is commodities. Energy material stocks, I think, are very vulnerable, especially given the dollar rally that we've seen over the last couple of days."

Taner also said that he didn't like staples, utilities or commodities.

"I don't think the commodity sell-off is over by any means, and on top of the sell-off that we've seen, we're starting to get dollar strength, which also could provide a headwind to the sector," he said.

Trader disclosure: On May 10, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Steve Weiss is long HIG; Steve Weiss is long EEM; Steve Weiss is long SODA; Steve Weiss is long AAMRQ; Steve Weiss is long LCC; Steve Weiss is long UAL; Steve Weiss is long ESRX; Steve Weiss is long THC; Steve Weiss is long CYH; Steve Weiss is long BBRY; Steve Weiss is long AIG; Steve Weiss is long QCOM; Steve Weiss is long C; Steve Weiss is long BAC; Stephanie Link is long AAPL; Stephanie Link is long GS; Stephanie Link is long JPM; Stephanie Link is long CSCO; Stephanie Link is long FB; Stephanie Link is long ESV; Enis Taner is long GS; Enis Taner is long AAPL CALLS FLY; Enis Taner is long NEM CALLS; Enis Taner is long UUP; Enis Taner is long FXE PUTS; Enis Taner is long FXA PUTS; Enis Taner is long VIX CALLS; Simon Baker is long AAPL; Simon Baker is long C; Simon Baker is long JPM; Simon Baker is long WFC; Simon Baker is long SBUX; Simon Baker is long FB; Simon Baker is long MSFT; Simon Baker is long GOOG; Simon Baker is long AIG; Simon Baker is long HPQ.

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DJIA
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S&P 500
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UTX
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SWK
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ESV
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JPM
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UNH
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