NEW YORK (

TheStreet

) -- The markets closed down Monday on European debt worries.

The

Dow Jones Industrial Average

was off its lows and finished down 6.74, or 0.05%, to 12,653.72. The

S&P 500

declined 3.31, or 0.25%, to 1313.02. The Nasdaq dropped 4.61, or 0.16%, to 2811.94.

Joe Terranova said on

CNBC

's "Fast Money" show that the market overall made a nice recovery from a modest correction. He said the "perfect trade" is in the

Technology SPDR ETF

(XLK) - Get Report

that is comprised of heavyweights such as

Apple

(AAPL) - Get Report

,

IBM

(IBM) - Get Report

and

Microsoft

(MSFT) - Get Report

.

Dan Nathan added

Verizon

(VZ) - Get Report

and

AT&T

(T) - Get Report

with its 3% to 4% dividends to that list.

For a breakout of some stocks from a recent "Fast Money" TV show, check out Dan Fitzpatrick's "3 Stocks I Saw on TV."

3 Stocks I Saw on TV

var config = new Array(); config<BRACKET>"videoId"</BRACKET> =1422462134001; config<BRACKET>"playerTag"</BRACKET> = "TSCM Embedded Video Player"; config<BRACKET>"autoStart"</BRACKET> = false; config<BRACKET>"preloadBackColor"</BRACKET> = "#FFFFFF"; config<BRACKET>"useOverlayMenu"</BRACKET> = "false"; config<BRACKET>"width"</BRACKET> = 265; config<BRACKET>"height"</BRACKET> = 255; config<BRACKET>"playerId"</BRACKET> = 1243645856; createExperience(config, 8);

Melissa Lee, the moderator of the show, noted that

Radioshack

(RSH)

was down 18% after it cited weakness in

Sprint Nextel

's

(S) - Get Report

postpaid wireless business.

Adami said he expects shorts will use Tuesday, which could be a monster volume day, as an opportunity to cover in what he expects will be a capitulation sell-off. He said that situation could be a trading opportunity for investors.

Nathan said he didn't much of a future in the company, while Terranova thought the company is an acquisition target.

Shifting to the financial stocks, one of the big winners in January, Fred Cannon, of KBW, offered some cautionary advice. He said stocks of such banks as

Bank of America

(BAC) - Get Report

will be moving down as they revise their earnings downward.

Cannon said Bank of America has been raising its capital ratio up in a bad way by reducing its balance sheet and selling on businesses. He said investors need to be selective in this space, noting such picks as

US Bancorp

(USB) - Get Report

and smaller regionals as good plays.

The "call of the day" came from Morgan Stanley, which sees Apple's entry into China's telcom market adding as much as $10 to its 2013 EPS, with projections of 40 million phones sold and carriers such as

China Telecom

(CHA) - Get Report

and

China Mobile

(CHL) - Get Report

in toe.

The trading panel was looking beyond Apple at downstream plays, with Terranova eyeing

Cirrus Logic

(CRUS) - Get Report

and Adami looking at

Qualcomm

(QCOM) - Get Report

and

Broadcom

(BRCM)

. Adami said he may take profits in Qualcomm since it has encountered troubles in the past the at $60.

Lee brought in

Wendy

's

(WEN) - Get Report

CEO Emil Brolick to discuss the company's turnaround plans. The stock has been down as it has been losing market share in its space.

Brolic said Wendy's is focusing on sprucing up breakfast with a branded coffee and bakery offerings. He also said Wendy's is making a big push to reimage its restaurants to improve the casual dining experience. The company is reimaging 30 restaurants this year and opening 30 new restaurants, with a significant boost in reimaging plans for 2013.

Adami said the stock, which is trading at $5-ish, has been a difficult stock to own but could be a pretty interesting risk-reward opportunity at this price level.

Lee said there's a common perception that short covering is responsible for turning December's losers into January's winners.

Sears

(SHLD)

is up 50% year to date, while

KB Home

(KBH) - Get Report

is up 40% and

Dendreon

(DNDN)

is up 80%.

Gordon said there is not much evidence of short coming, noting the short interest in Sears is 11%. He credited the January rally to an optimistic turn that could sour as the year goes along. Nathan, though, said it's hard not to believe that there wasn't short covering in a stock like

Netflix

(NFLX) - Get Report

, which has surged this month.

Shifting the gold trade, Dennis Gartman said he remained bullish in the gold-in-euro trade. He said the trade works as the debt situation remains unresolved in Greece and central banks around the globe ease their monetary polies.

Amelia Bourdeau, a director for Westpac Institutional Bank, said she sees the euro going lower after reports of Portugal's 10-year yields soaring above 17% today. She said the situation could get shaky in the middle of the year if talks surface for another bailout package for Portugal.

With the Facebook IPO coming as soon as Wednesday, Lee said the event is already have a halo effect as evidenced in the 20% rise today in Chinese Internet stock

Renren

(RENN) - Get Report

.

Kathleen Smith, a principal with Renaissance Capital, said Renren had the worst IPO return of any the IPOs priced in 2011 when there were serious concerns about Chinese accounting. Now, she said the situation has changed with improved market conditions at the beginning of the year and the huge Facebook IPO drawing investors in.

She attributed the current inflow to small money coming in and some short covering.

In the final trades, Nathan was a buy of VIX calls. Adami liked

Yamana Gold

(AUY) - Get Report

. Finerman liked

Polycom

(PLCM)

. Terranova favored

Interactive Corp.

(IACI)

.

--

Written by David Tong in San Francisco.

>To contact the writer of this article, click here:

David Tong

.

To submit a news tip, send an email to:

tips@thestreet.com

.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC

.

Follow TheStreet.com on

Twitter

and become a fan on

Facebook.