Although the S&P 500 ETF (SPY) - Get Report fell 0.4% on Monday, the CNBC "Fast Money" traders had their attention on the SPDR S&P Retail ETF (XRT) - Get Report and the Nasdaq Biotech ETF (IBB) - Get Report , beginning with the latter.

The IBB's 10% correction earlier in the year looked like a buying opportunity, but once support broke, it quickly fell from around $400, down to $285, noted Guy Adami, managing director of stockmonster.com. However, the ETF has rebounded nicely since that low and Monday's 2% decline can likely be explained by pension funds simply rebalancing their portfolios. 

Steve Grasso, director of institutional sales at Stuart Frankel, agreed with Adami's assessment, adding that the ETF has rallied 8% since Nov. 16, allowing some traders to take profits. 

Not only has the ETF rallied nicely, but there's a lot of economic events coming up this week, according to Tim Seymour, managing partner of Triogem Asset Management. He explained that the European Central Bank and Federal Reserve will have planned announcements, along with a non-farm payrolls report and OPEC meeting on Friday. Because of these events, it's no surprise investors are reducing some of their positions. 

In general, it might be a good idea for investors to consider taking some money out of the market, Adami said. That way, if there's anything that causes a selloff over the next few data-ridden weeks, investors won't be caught off guard. 

Dan Nathan, co-founder and editor of riskreversal.com, added that recent action in China and Brazil reminds him of the action seen in August, before the S&P 500 experienced staggering losses in very quick fashion. 

Another sector that suffered on the day was retail, with the XRT ETF falling 2.2% on the day.

Adami said he would be a buyer of Nordstrom (JWN) - Get Report with a stop-loss at $54, while Grasso is buying J.C. Penney (JCP) - Get Report

Seymour is long Nike (NKE) - Get Report , and expects the stock to continue moving higher as the company's direct-to-consumer model is doing very well. Lowe's (LOW) - Get Report and Home Depot (HD) - Get Report should continue to benefit from increasing household formations. The two companies are not growing store counts, but are growing profitability and as a result, the stocks deserve higher valuations. 

Nathan expects "cheap" stocks to "get cheaper" in 2016. Companies like Target (TGT) - Get Report and Walmart (WMT) - Get Report will have to invest heavily to compete with Amazon (AMZN) - Get Report , and those investments will weigh on the stock prices. 

Steve Sadove, the former chairman and CEO of Saks, former chairman of the National Retail Federation and currently a J.C. Penney (JCP) - Get Report board member, came on the show to discuss the retail environment. 

Although mall traffic has been sluggish -- a recent MasterCard (MA) - Get Reportreport showed that mall transactions over the Black Friday weekend were flat year-over-year compared to double-digit growth online -- the weekend is likely a success, Sadove said. Investors shouldn't exclude online sales from retailers, as more and more of them are benefiting from online sales too. 

So just because mall traffic isn't growing, doesn't mean sales aren't, and the National Retail Federation's call for 3.7% sales growth this holiday season is likely accurate, he said. 

But that doesn't mean there aren't issues. Third quarter inventories were a little high, so margins in the current quarter could be under pressure, he added. Department stores also need to get their supply chains to be shorter and faster. They can no longer be loading up on inventory six months ahead of time, especially when retailers like Zara and H&M are doing so well. Traditional retailers will also need to get more involved in e-commerce, to improve the shopping experience for consumers. 

"You've got to win by being omni-channel," Sadove concluded.

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