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'Fast Money' Recap: Which Way Will the Market Go?

NEW YORK ( TheStreet) -- Traders were nervous on Monday, with all three indices closing in the red ahead of some big earnings announcements and economic releases set for this week.

Over the last several trading sessions, markets have seemed complacent as to whether they should continue higher or pullback and go lower. On CNBC's "Fast Money" TV show, Pete Najarian said the financials are still leading the way; until the sector leaders start to break down, he will remain bullish for the second half of 2013.

Dan Nathan agreed on financials, saying it's the only sector to have true earnings growth while the other sectors have been stale. He added that with the Federal Open Market Committee meeting Wednesday and talks of tapering calling for September, he thinks the market will begin to break down.

Guy Adami was keen to the bear case, but said he was remaining bullish. He added that he doesn't think we're going to see the big selloff that everyone has been calling for and is looking for 1,725 in the S&P 500.

As for earnings, Herbalife (HLF) beat on top- and bottom-line estimates on Monday after the close. The company also raised its full-year guidance.

Nathan said that with over 30 million shares sold short and 70 million shared owned long by ten shareholders, this stock was not trading on fundamentals. He added that traders were rolling the August 60 calls up to the August 80 calls, potentially signalling much more upside.

On the show's "Top Trades" segment, Adami said to stay away from Omnicom (OMC) after the announced 50-50 merger with Publicis (PUBGY), but did not recommend shorting it.

Najarian said that Perrigo (PRGO) has become interesting now that it bought its way into the biotech space, although he thinks the company overpaid on its $8.6 billion acquisition of Elan (ELN).

Nathan said that CF Industries (CF) was a buy on pullbacks after activist investor Dan Loeb revealed that he has a position in the company and that the stock can pay out a much bigger dividend.

The United States Natural Gas ETF (UNG) was the first discussed during the show's "Pops & Drops" segment after closing down roughly 2.5% on Monday. Steve Grasso said that he was not a buyer over the long-term due to the supply glut of natural gas.

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