NEW YORK ( TheStreet) -- The markets pulled back Tuesday as gold got battered.
The Dow Jones Industrial Average added 20.43, or 0.18%, to 11,691.18, while the S&P 500 fell 1.69, or 0.13%, to 1,270.20. The Nasdaq lost 10.27, or 0.38%, to 2,681.25.
Brian Kelly said on CNBC's "Fast Money" TV show "nothing had changed" today except for "a little sell-off." He said the biggest moves occurred in the precious metal space.
Kelly said it was encouraging to see the S&P bounce off 1,260, which he said technically reinforces his belief that the index is heading to 1,280.Tim Seymour said the commodity charts looked incredibly stretched and advised investors to proceed cautiously. He said a number of names could pull back. Joe Terranova said the market is in a reallocation mode, with the precious metals in decline and the financials one of the beneficiaries. Karen Finerman agreed, saying that's the reason why she bought more puts in Freeport McMoRan (FCX). Melissa Lee, the moderator of the show, noted a New York Times report that Qualcomm (QCOM - Get Report) is nearing a deal for Atheros Communications (ATHR) for $3.5 billion. James Faucette, an analyst with Pacific Crest Securities, said it was a smart move by Qualcomm in its competition with Intel (INTC) as the two companies compete for the next generation of computing. Facuette said many other competitions, including Texas Instruments (TXN), Nvidia (NVDA) and Broadcom (BRCM), also have a definite need for more arms in this competition. Terranova said Qualcomm is essentially going out to buy growth that it can't grow organically. With gold down 3.1% down today, investors were rushing to buy puts in the metal. Terranova said there is a reallocation going on, in which gold is no longer the safe haven trade, as investors shift into equities. Seymour said with the normalization of the equities markets, investors are looking for yield away from gold. He said he would love to own gold at $1,250 an ounce.