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'Fast Money' Recap: Fear Gauge Retreats but Be Cautious

NEW YORK (TheStreet) -- The CBOE Volatility Index (VIX.X) -- also known as the "Fear Gauge" -- plunged 17% on Friday, as the S&P 500 rallied 1.03% following a geopolitical-inspired selloff on Thursday. 

On CNBC's "Fast Money" TV show, Steve Grasso, director of institutional sales at Stuart Frankel, said there is "not an all-clear" sign for investors to buy U.S. equities. However, nobody appears nervous anymore. He is a buyer of Cheniere Energy (LNG)

Guy Adami, managing director of stockmonster.com, said he definitely didn't see Friday's rally coming. He argued the iShares Russell 2000 ETF (IWM) still seems likely to test the $108 level. 

Tim Seymour, managing partner of Triogem Asset Management, pointed out the Market Vectors Russia ETF (RSX) sold off again on Friday. He added that investors are acting "defensive" by rotating into U.S. large-cap stocks. 

Brian Kelly, founder of Brian Kelly Capital, agreed with Grasso, saying investors do not have an all clear sign to buy equities. "Wait and see" what happens, he advised.

Seymour argued that oil looks likely to go higher. 

Adami pointed out that Schlumberger (SLB) pulled back to roughly $110, a level he was a buyer at on Thursday's "Fast Money" show. He is now a buyer. 

Seymour argued that Germany has the most to lose if the Ukraine-Russia situation escalates further out of on control. For that reason, Kelly said investors could sell the iShares MSCI Germany ETF (EWG) if they think the situation will get worse. 

Grasso said it makes sense for Twitter (TWTR) to use different user metrics if management feels that it will be beneficial to shareholders and help them show the company's progress more accurately.

Kelly added that shares of Twitter had a nice reversal higher on Friday after starting the session lower. 

Adami is a buyer of Facebook (FB) over Twitter. He is also a buyer of United Parcel Service (UPS) over FedEx (FDX)

CNBC's Meg Tirrell discussed AbbVie's (ABBV) acquisition of Shire plc (SHPG). The $54 billion takeover will make AbbVie a U.K. entity, lowering its tax rate from 22% to 13%. It may put pressure on its competitors to make similar types of deals before the U.S. government tries to "close this loophole," she said. Abbott Laboratories (ABT) could be next, she said. As for potential acquisitions, there are BioMarin (BMRN), NPS Pharmaceuticals (NPSP), Dyax (DYAX), and BioCryst Pharmaceuticals (BCRX)

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