NEW YORK ( TheStreet) -- Tuesday was the first day of trading for the holiday-shortened week, where markets coughed up healthy gains but still managed to close marginally higher.
September is historically the worst month for equities and this year there are quite a few events that could rattle the markets: Congress will vote on whether or not the U.S. military should intervene in Syria, the Federal Reserve's two-day meeting takes place Sept. 17-18 and Congress must act on the debt and whether to raise the ceiling before the next fiscal year begins Oct. 1.
Of all these, Brian Kelly said Syria should be the focus because the debt ceiling and potential tapering are known events. He is long oil, since the oil market has shown that a U.S. attack won't end the threat to a potential supply disruption.
Guy Adami said the Fed will not likely taper its bond purchases in September but he expects an update on what the Fed will do from its meeting. He added the S&P 500 has held up well from its support around 1,625.Karen Finerman said she would be a buyer of retail stocks if oil went higher, since the retail sector will likely be selling off. She added that a spike in oil prices will probably be short-lived. To play a rise in oil prices, Grasso said traders can't just buy the entire energy sector. He suggested they avoid the refiners. He added that Halliburton (HAL) looks the best. Nick Colas, managing director and chief market strategist at ConvergEx Group, a guest on the show, remains bearish on the overall market. He cited outflows of exchange-traded funds, lower earnings estimates and interest rate volatility as his reasons for why the market will head lower. He added that he's looking for an 8% to 10% grind lower and would avoid consumer stocks. BlackBerry (BBRY) was the featured company on the show's "Street Fight" segment. Grasso defended the stock, saying it still has an edge with its software and services division. He added that the company has plenty of cash and no debt.