NEW YORK (TheStreet) -- Good economic news is leading to market declines. While the economy is improving, each additional set of good news further increases the likelihood of rate hike from the Federal Reserve.

Case in point: The February labor report came in ahead of economists' expectations. However the market went lower on Friday. 

Volatility is back in the markets, too, Pete Najarian, co-founder of optionmonster.com and trademonster.com, said on CNBC's "Fast Money." He suggests investors consider buying portfolio protection once the CBOE Volatility Index I:VIX falls below $14. 

The financial sector traded well early in the session but utilities were crushed, falling 3%. Najarian says to watch the utility sector next week to see if there's continued selling or if Friday was simply a "knee-jerk reaction." 

"Simplify your portfolio," don't overcomplicate it with hedges, said Tim Seymour, managing partner of Triogem Asset Management. He says the euro looks likely to bounce back next week after moving lower this week. Commodities traded relatively well on Friday given the selloff in risk assets. 

The U.S. dollar hit an 11-year high and investors should stick with the trend, according to Brian Kelly, founder of Brian Kelly Capital. 

Investors looking to buy the dip in the stock market should wait for the S&P 500 to decline to 2,000, where it should find decent support, said Dan Nathan, co-founder and editor of riskreversal.com. The selloff in bonds implies that investors expect a rate hike sometime in 2015. 

Apple (AAPL) - Get Report announced its stock will be added to the Dow Jones Industrial Average after the close on March 18. Historically when stocks are added to the Dow, they outperform the broader market by 3% over the next 30 days, according to Toni Sacconaghi, senior analyst at Sanford Bernstein.

The company's smart watch is expected to be revealed on Monday but investors should wait to see how it's received by consumers and not jump to conclusions, Sacconaghi said. Remember the iPad? No one thought that product was needed either, but it has gone on to be very successful, he said. Apple will likely boost its buyback in April, gross margins seem poised to increase over the next 18 months, and the stock is "very, very inexpensive" on a cash-flow basis, he concluded. 

Sacconaghi has a buy rating on Apple with a $135 price target. 

Investors should put less importance on the watch event and more on Apple's next earnings report, Seymour said. However, sentiment for the stock is too bullish and Seymour sold his long position as a result. 

Sentiment for the stock might be good, but it's not good for the watch, Nathan added. Najarian agreed, adding that if the watch is a flop, it likely won't hurt the stock since no one is expecting it to do well. However, if the watch does great, the stock is headed higher. 

Kelly said investors could sell Apple near current levels but he is a buyer at $120. 

For their final trades, Seymour is selling Tiffany & Co. (TIF) - Get Report and Kelly is a buyer of the iShares 20+ Treasury Bond ETF (TLT) - Get Report. Najarian said to buy LyondellBassell Industries (LYB) - Get Report and Nathan is buying protection against a long Apple position via options. 

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