Traders talk what to trade near Dow 20K

The "Fast Money" traders weighed in on which stocks to buy as the Dow Jones industrial average neared 20,000 on Friday — coming within 1 point of the psychologically-significant milestone.

Trader Brian Kelly shocked the desk by revealing he bought more Tesla shares on Friday. The reasoning behind the trade, he said, is that Tesla isn't a "car company."

Kelly explained that Tesla represents a "bigger-picture play" where the stock will benefit from the "decarbonization" of the electric grid—or the shifting away from the use of fossil fuels to generate electricity. Trader Guy Adami agreed that Tesla's stock has "a lot of room to the upside."

Shareholders from Tesla and SolarCity both approved a merger between the two companies, with Tesla paying $2.6 billion to acquire the struggling solar energy company. At the time, Tesla said it expects SolarCity to add more than half a billion dollars in cash to Tesla's balance sheet over the next three years.

Trader David Seaburg said he likes Amgen, saying there are a several "near-term triggers that could take the stock a lot higher." He sees shares of the biopharmaceutical company growing at least another 10 percent by the end of January. One major decision to keep an eye on, he said, is the possible expansion of the PCSK9—the drug involved in a recent legal battle between Amgen and Sanofi and Regeneron Pharmaceuticals. Sanofi and Regeneron have 30 days to appeal the ruling in Amgen's favor.

Trader Steve Grasso said he hasn't been picking individual stocks lately, instead deciding to invest in broad ETFs. If pressed to pick an individual stock, he said Amazon is an attractive choice because of its upcoming earnings release on Feb. 2.

—CNBC's Robert Ferris contributed to this report.

Disclosures:

STEVE GRASSO

Steve Grasso's firm is Long: VIRT, WDR, FCX, ICE, KDUS, MJNA, MSFT, NE, RIG, TAXI, TITXF, WDR, ZNGA, COG,CUBA, ICE, MJNA, TITXF, AGN, BIIB, REGN, SPY, GLD. Grasso is Long: CHK, EVGN, KBH, MJNA, MON, MU, OLN, PHM, SPY, SQ, TWTR, EEM, GDX. Grasso's Kids Own: EFA, EFG, EWJ, IJR, SPY. No Shorts.

DAVID SEABURG

Opinions expressed by David Seaburg are solely his own and do not reflect the views and opinions of Cowen Group, Inc. David Seaburg and Cowen have a financial interest in EDIT. An employee of Cowen and Company, LLC serves on the Board of Directors of Diamond Offshore

BRIAN KELLY

Long: FCX, TSLA, TLT, US Dollar, UUP, SLV, 10 Year Bonds, Bitcoin; short: Euro, Aussie Dollar, British Pound

GUY ADAMI

Guy Adami is long CELG, EXAS, GDX, INTC, Guy Adami's wife, Linda Snow, works at Merck.