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'Fast Money' Recap: Still Pressured by Russia

NEW YORK (TheStreet) -- The S&P 500 open higher on Thursday’s trading session, but closed lower by 0.56% while the 10-year Treasury yield dropped to a 13-month low. 

Brian Kelly, founder of Brian Kelly Capital, said it will be hard for U.S. equities to rally until the situation between Ukraine and Russia gets sorted out. 

Steve Grasso, director of institutional sales at Stuart Frankel, said that over the next two to three trading sessions, investors should have a good idea of whether the S&P 500 will maintain support near 1,910 and move higher, or break support and head down to the 200-day simple moving average, near 1,860. 

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Dan Nathan, co-founder and editor of riskreversal.com, pointed out that many German companies — such Adidas and Siemens — have been trading poorly. Perhaps U.S. multinational stocks are next, he reasoned. 

Karen Finerman, president of Metropolitan Capital Advisors, said that over the longer term, U.S. equities should be fine and the geopolitical issues are just "noise." Eventually, it will pass, she added.

Ari Wald, head of technical analysis at Oppenheimer & Company, was a guest on the show. It’s too late for many investors to consider selling their equity positions, since the recent selloff happened so fast, he said. Long-term investors can consider buying stock though, as the Dow Jones Industrial Average has pulled back to its 200-day simple moving average. 

The German equities index, the Dax, looks to be at support near 9,000 and seems likely to trade back up toward its 200-day simple moving average, Wald said. Also, the 10-year Treasury yield seems likely to break below 2.4% and “flush” out a lot of investors. Finally, the yield should move significantly higher following that flush. 

Kelly disagreed that the Dax will move higher and he continues to hold his short position in the index. He is also long bonds, reasoning that the 10-year Treasury yield looks likely to break below 2.4%. 

Grasso said that U.S. equities seem poised to rally in September or October, barring any significant geopolitical events. 

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Kelly said investors can stay long CBS Corp. (CBS) as long as the stock stays above $55.

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