Brian Kelly said 1,650 in the S&P 500 is the level he's watching and that the market dips remain buyable until that level is breached.
Steve Grasso said he doesn't think either party is looking at defaulting on U.S. obligations and that the market remains buyable.
Karen Finerman concurred, saying that there will be some volatile days leading up to the debt ceiling debate, but isn't changing her strategy because of it.
Steven Rees, private bank head of U.S. equity strategy at J.P. Morgan, was a guest on the show and said he's not expecting a big pullback. He added that they're overweight U.S. equities and that investors should hold onto what they own, while selectively buying on pullbacks. He argued that financials should do well in 2014, when tapering will likely be in effect along with higher interest rates.
Grasso said he would expect more investors to sell stock in Facebook for the Twitter IPO, than sell out of Google. Union Pacific (UNP) warned on its earnings, blaming mild weather and flooding in Colorado for its weaker-than-expected results. Kelly said to be careful on Friday, as the 50-day moving average crosses the 100-day moving average to the downside, a bearish technical setup.
Regarding the recent price action in the broader market, Grasso said this is a huge buying opportunity if the market is selling off over default fears, because that will not happen. For their final trades, Finerman was a buyer of Citigroup (C), Kelly said to buy the United States Oil ETF (USO), and Adami was buying Mylan (MYL). Grasso was a buyer of Bank of America and Mike Khouw said to go long Tenet Healthcare (THC) via short puts.
-- Written by Bret Kenwell. Follow @BretKenwell Follow TheStreet.com on Twitter and become a fan on Facebook.
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