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NEW YORK (TheStreet) -- The Market Vectors Semiconductor ETF (SMH) - Get VanEck Semiconductor ETF Report fell 0.72% on Thursday and is now down 6.2% in the past three days. It's not looking good for many of the chip suppliers, Dan Nathan, co-founder and editor of riskreversal.com, said on CNBC's "Fast Money" TV show. 

The industry was up 30% last year, so its underperformance could be a potential warning sign for the broader market, Nathan added. 

Some of the biggest components in the semiconductor space, like Intel (INTC) - Get Intel Corporation Report, Qualcomm (QCOM) - Get Qualcomm Inc Report and Micron (MU) - Get Micron Technology, Inc. Report, failed to rally much in the session, leading Steve Grasso, director of institutional sales at Stuart Frankel, to call the industry a "no touch" for now. 

It seems like the bad news could priced in for Micron, which is down nearly 30% from its highs. The stock seems to be worth a shot on the long side, according to Karen Finerman, president of Metropolitan Capital Advisors. 

Among the worst hit was SanDisk (SNDK) , which fell 18.5% on Thursday. The stock is now down almost 35% in the past three months, but that shouldn't spell trouble for its peers, says Guy Adami, managing director of stockmonster.com. 

Adami explained that SanDisk's problems are company-specific and not an industry-wide issue. However, given the stock's current valuation, it's starting to look attractive in the long-term future. He reasoned that there is likely a few more days of selling ahead for SanDisk before it becomes a potential buy.

While semiconductors are down on the week, oil has done great, with West Texas Intermediate climbing some 10% since Monday. WTI crude climbed 4.9% on Thursday alone, due to reports over unrest in the Middle East

Reva Bhalla, vice president of global analysis at Stratfor, weighed in on the matter, saying investors shouldn't account for much oil disruption from Yemen, which is a "rather negligible" oil producer. There are concerns about a possible supply disruption by Saudi Arabia's naval blockage, but there's "very little chance of disruption there," she added. 

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With that being said, oil volatility remains high, and the Energy Select Sector SPDR ETF (XLE) - Get Energy Select Sector SPDR Fund Report didn't trade higher Thursday, signaling that there is likely downside ahead for oil prices, Adami said. 

Higher oil prices coming at the hands of a supply disruption, rather than a weaker dollar or higher demand would be a disaster for corporate earnings results, Nathan pointed out. 

 More broadly speaking, Adami said it's important for the iShares Russell 2000 ETF (IWM) - Get iShares Russell 2000 ETF Report to stay above $121 and for the iShares Dow Jones Transportation Average (IYT) - Get iShares US Transportation ETF Report to stay above $150, otherwise the broader market will likely move lower. 

Nathan added that he is a seller of the Consumer Staples Select Sector SPDR ETF (XLP) - Get Consumer Staples Select Sector SPDR Fund Report, because the sector seems expensive and is one of the worst hit groups when it comes to currency woes. He also sold-short the PowerShares QQQ Trust ETF (QQQ) - Get Invesco QQQ Trust Report

While Finerman agreed that the XLP ETF seems expensive, based on valuation, she believes a relief rally is in store for the broader market, after the S&P 500 has declined 2.25% in the past three trading sessions.

The conversation turned to Tesla Motors (TSLA) - Get Tesla Inc Report, as Andrew Fung, an analyst at CLSA, downgraded the stock to underperform from outperform and lowered his price target from $275 to $220.  

When the Model S was first introduced, margins were in the single digits, he said. With the Model X set to be released later this year, most analysts have too high of expectations when it comes to margins. Fung expects lower margins to hit earnings per share, which will weigh on the stock over the next few quarters. he is looking for gross margins of 24.5%, versus a Street expectation of 27.5% for 2015. 

Grasso and Nathan are not buyers of the stock, while Adami is looking to buy Tesla near $177.

For their final trades, Grasso is buying Halliburton (HAL) - Get Halliburton Company Report and Adami said to buy Yahoo! (YHOO) . Finerman is a buyer of Manitowoc (MTW) - Get Manitowoc Company, Inc. Report and Nathan is selling the Consumer Staples Select Sector SPDR ETF.