'Fast Money' Recap: Another Down Day
NEW YORK ( TheStreet) -- The S&P 500 declined for a third straight day on low volume over fears of potential tapering.
On "Fast Money," Guy Adami said that although the markets have not had a 10% correction in two years, they have had a couple that got close to the mark, at about 8.5%. He added that it might be time to take some money off the table even though the S&P 500 might get back to 1,725.
Dan Nathan said the gains have been great, but the trade seems like it's getting crowded. Everyone from around the world has been chasing U.S. equities, which pushed stock prices to record highs.
Tim Seymour said the iShares MSCI Emerging Markets ETF (EEM) and other emerging markets are approaching multi-year lows and that there is a lot of value outside of the U.S.Josh Brown added that it's been a buy-the-dip environment and when the markets had a 6% correction in June of this year, buyers rushed back in. He said he's not sure when we'll get a sustained, deep pullback, but that it will shock a lot of investors when we do. Green Mountain Coffee Roasters (GMCR) reported earnings and posted a bottom-line beat on lighter-than-expected top-line figures. Seymour said the stock was expensive and he would avoid until it forms a bottom. Guest Doug Kass, founder and president of Seabreeze Partners Management and a contributor to TheStreet.com, said that it's been a tough six weeks because he has been short. Overall, he thinks there are three major bearish factors to consider: China's sluggish activity, poor economic growth and rising interest rates. He is looking for more downside and hoping that July put in a near-term top. Jack In The Box (JACK) reported earnings. Adami said he understands why some investors would take profits, but would be a buyer of the stock near $37.50. First Solar (FSLR), which missed top- and bottom-line estimates, was the first stock on the show's "Today's Top Trades" segment. Seymour said the solar business will remain important, but the numbers were bad and traders should be careful taking a position.
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