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Pros: Will Rotation Drive Tech Even Higher?

On Thursday the Fast Money traders were very focused on the Nasdaq , after the tech heavy index notched an eighth day of gains.

The Nasdaq's 8.3 percent gain over the past eight trading sessions is the most for the index in two years.

”It’s trading at 10 ½ year highs,” says trader Tim Seymour. “That’s extraordinary!” He takes the action as a hopeful sign. "It tells me that there's money on the sidelines and that people believe now the some of the black swans are out of the pond. In other words, the market isn't that bad."

Trader Joe Terranova also takes the action as confirmation that investors are much more optimistic and, as a result, rotating out of fixed income and into equities. And he sees gains in the Nasdaq as a sign investors want to be long technology, a sector that typically benefits in an economic expansion. If you’re looking for a play, he says, “I’d own Microsoft and add to my position. PMs are under-invested in these stocks.

If that doesn't float your boat Terranova has a slew of other ideas. He likes longGoogle , which he calls cheap. "It's obviously gotten a little richer over the last few weeks but if you're looking to allocate capital, go there."

Or, if you’d prefer a play on cloud computing , Terranova suggests the SKYY , an ETF of cloud names. Or he says you can just go long Apple . He thinks the stock is headed to $413.

Tim Seymour is a little cautious of Apple. He reminds Terranova that Apple has struggled to break above $360. “If it breaks above that level it’s bullish," he concedes, "but I’m not convinced,” he says.

If you're looking for a long play Seymour likes Intel. "This is the place to play because it's best of breed and it's a value. I'd go for the value at a time when investors are clearly rotating into value names."

Karen Finerman suggests looking at Cisco as well as other big cap tech. “This is a name that went from extremely under-valued to just under-valued,” she says.

Although Jon Najarian likes these names, if you're a trader, he suggests looking at stocks with a little more torque such as Akamai and Acme Packet.


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ANOTHER DAY, ANOTHER NETFLIX ALL TIME HIGH

Yet again, Netflix made another all time high as investors cheered its push into Latin America. But one analyst doubts that Brazil is ready to start streaming M*A*S*H reruns.

Tony Wible at Janney has a fair value target that's 42 percent below Thursday’s close. Find out why. Watch the video now!



















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PAGING DR. COPPER

Copper, the commodity with a PHd in economics is up 8 percent in the past week alone with Freeport McMoran getting a strong bid today as well.

How should you trade the space?

Tim Seymour suggests long Antofagasta which trades in London and Southern Copper .

Joe Terranova is bullish on the spot price. “There are challenges in terms of supply. I think $4.60 gets taken out.”

Jon Najarian likes Southern Copper as well as Freeport McMoRan. “I think there’s move to room in both of those names,” he says.

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BELIEVE RETAIL STOCKS OR GOV'T DATA?

Retailers
blew past estimates on Thursday with the ETF that tracks the retail sector surging on the results.

What happened to all those worries about high gas prices?

Find out from Joe Feldman, Telsey Advisory Group.






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Trader disclosure: On July 7, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Terranova owns (XOM); Terranova owns (HAS); Terranova owns (DIS); Terranova owns (WFM); Terranova owns (LULU); Terranova owns (MSFT); Terranova owns (TM); Terranova owns (JWN); Terranova owns (MCD); Terranova owns (PEP); Terranova owns (MA); Terranova owns (BX); Terranova owns (CAT); Terranova owns (VRTS); Terranova owns (AAPL); Terranova owns (F); Terranova owns (CVI); Terranova owns (IBM); Terranova owns (FCX); Jon Najarian owns (AAPL) calls; Jon Najarian owns (AMKR) calls; Jon Najarian owns (BIDU) calls; Jon Najarian owns (DANG) calls; Jon Najarian owns (SINA) calls; Jon Najarian owns (UA) calls; Jon Najarian owns (WNR) calls; Finerman owns (AAPL); Finerman owns (BP); Finerman owns (CVS); Finerman owns (IBM); Finerman owns (JPM); Finerman owns (MSFT); Finerman is short (SPY), (MDY), (WM); Finerman owns S&P puts; Finerman owns S&P calls; Finerman owns Russell 2000 Puts

For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (CCG)
Virtus Investment Partners Owns More Than 1% Of (CASS)
Virtus Investment Partners Owns More Than 1% Of (CSVI)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (FCFS)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (KRC)
Virtus Investment Partners Owns More Than 1% Of (LDR)
Virtus Investment Partners Owns More Than 1% Of (NRCI)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLE)
Virtus Investment Partners Owns More Than 1% Of (XLF)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLK)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (SUBK)
Virtus Investment Partners Owns More Than 1% Of (WDFC)
Virtus Investment Partners Owns More Than 1% Of (YDNT)
Virtus Investment Partners Owns More Than 1% Of DOMINO'S PIZZA UK & URL PLC
Virtus Investment Partners Owns More Than 1% Of (DRYS)

For Mike Khouw
Cantor Fitzgerald is a market maker in (AA)
Cantor Fitzgerald is a market maker in (AAPL)
Cantor Fitzgerald is a market maker in (AMZN)
Cantor Fitzgerald is a market maker in (C)
Cantor Fitzgerald is a market maker in (CSCO)
Cantor Fitzgerald is a market maker in (CVS)
Cantor Fitzgerald is a market maker in (DAL)
Cantor Fitzgerald is a market maker in (EBAY)
Cantor Fitzgerald is a market maker in (GS)
Cantor Fitzgerald is a market maker in (JPM)
Cantor Fitzgerald is a market maker in (GOOG)
Cantor Fitzgerald is a market maker in (XLF)
Cantor Fitzgerald is a market maker in (XLE)
Cantor Fitzgerald is a market maker in (NFLX)
Cantor Fitzgerald is a market maker in (NYX)
Cantor Fitzgerald is a market maker in (MSFT)
Cantor Fitzgerald is a market maker in (YHOO)

For Karen Finerman
Finerman's firm owns (AAPL)
Finerman's firm owns (BP)
Finerman's Firm owns(CVS)
Finerman's firm owns (JPM) and (JPM) leaps
Finerman's firm owns (MSFT)
Finerman's firm owns (TGT)
Finerman's Firm owns (USO)


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