Brian Kelly of Kanundrum Capital is still feeling the burn after going with some networking names as second derivative plays—namely Emulex and QLogic ,which are both down.
So what happened?
On July 13, Intel reported its largest quarterly net income in a decade.
The next day, Kelly said on Fast Money Halftime Report that the results were so strong, it made him incrementally more positive. He thought the data storage growth aspect of Intel's earnings was especially impressive and recommended playing it long via Emulex and QLogic.
"Earnings disappointed," explains Kelly, adding that he's not in either of those names. "I still like the story, but I'm going to have to wait for a better tape."