NEW YORK (TheStreet) -- The S&P 500 closed flat on Wednesday's trading session while gold rallied 1.45%.
On CNBC's "Fast Money" TV show, Tim Seymour, managing partner of Triogem Asset Management, said he would sell the rally in gold and buy the pullback in emerging market equities. The S&P 500 seems poised to decline to 1,880.
Pete Najarian, co-founder of optionmonster.com and trademonster.com, said investors appear to be fleeing to "safety trades." He added that some stocks such as Target (TGT) appear oversold but most stocks seem to have more downside ahead.
Guy Adami, managing director of stockmonster.com, pointed out that the 1,915 level in the S&P 500 continues to hold. If equities rally strongly off this level, investors should not sell it short. However, he reasoned that the S&P 500 seems more likely to trade down to 1,860.
Steve Grasso, director of institutional sales at Stuart Frankel, suggested that Wednesday's low of 1,911 in the S&P 500 is an important level to watch. If it breaks, 1,860 is in play.
The German equities index, the DAX, has declined 10%, officially entering correction territory. Despite being oversold, Seymour thinks there is another 3% to 4% of downside.
Adami said the Market Vectors Russia ETF (RSX) is almost a buy.
Larry McDonald, senior director at Newedge USA, said that if Russia were to invade Ukraine, the S&P 500 could decline 15% to 20%. He reasoned that WTI crude oil prices should be higher, closer to $115 per barrel, based how much oil is exported by Russia. He also pointed out that many big funds have been buying short-term CBOE Volatility Index (VIX.X) contracts and selling long-term contracts.
Adami agreed with McDonald's scenario but Seymour disagreed U.S. equities would correct by that much if there was an invasion.
Bank of America (BAC) raised its quarterly dividend from 1 cent to 5 cents per share and appears close to reaching a $16 billion to $17 billion settlement with the Department of Justice regarding its mortgage back securities business.