NEW YORK ( TheStreet) -- The markets sold off hard Tuesday on news of a potential U.S. military strike on Syria.
On CNBC's "Fast Money" TV show, Guy Adami said this is going to force the Federal Reserve to postpone any tapering of its bond buying, which should propel the markets higher.
Tim Seymour said the S&P 500 is at a crucial support point, the 100-day moving average. He suggested staying in defensive stocks -- which is not necessarily defense sector stocks. He thinks this will have no effect on the Fed, so tapering should still happen.
Steve Grasso said there's no way the Fed can think about tapering with so much geopolitical tension and with the markets on such shaky ground. The most the central bank can do is a very, very small reduction, he added.Josh Brown said the Fed really needs to pay attention to the emerging markets, which have sold off violently. He agrees with Grasso on the Fed cutting back just a small bit in its bond purchases, thus demonstrating it has some sort of a game plan. David Bianco, chief U.S. equity strategist at Deutsche Bank, expects to see support near 1,600 in the S&P 500. He added there hasn't been a fundamental change in the market and this selloff should be viewed as a buying opportunity. He added the markets could have trouble moving higher if earnings growth remains flat and business spending contracts. Josh Brown said higher oil prices would help Chevron (CVX) and is a good "flight to safety" trade. Adami said CME Group (CME) has been correlated with Treasury bond yield rates. He believes both will continue to head lower. Seymour said crude oil prices could head higher because of geopolitical tensions, but also pointed out that demand from European industrials has been picking up. Brown said oil prices could pop higher, but he doesn't think they'll be able to stay at much higher prices, such as $125 per barrel. He noted that all oil spikes eventually fade when they take place due to geopolitical news.
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