Bullish earnings from tech giant Google ( GOOG) did little to help the markets on Friday. Wall Street witnessed a blood bath that sent the Dow down 367 points on heavy volume. The team at CNBC's "Fast Money" attempted to guide investors through the correction.

Guy Adami lamented that the market wasn't helped by former hedge fund manager Julian Robertson saying the word "recession" all day long on CNBC or by Caterpillar ( CAT) saying Fed rate cuts will not help the economy. Instead, Adami believes the pullback on Friday was healthy and needed.

On days like Friday, Karen Finerman looks at her portfolio to see if things are moving with the market, or are at prices she wants. She didn't do much buying on Friday and also didn't sell her index puts, which she always owns for portfolio protection. She cautioned investors to look at names that are more defensive.

(Need ideas for defensive plays? Check out the Defensive Plays portfolio on Stockpickr.com.)

According to Pete Najarian, the new downtick rule has created more volatility because short-sellers no longer need an uptick to sell stocks. He also mentioned that when volatility gets to 15% or 16% you have to buy protection. Jeff Macke predicts we're going back to 1490 on the S&P 500.

Industrial stocks fell hard Friday after Caterpillar cut its forecast. Adami maintains that the market got ahead of itself with Honeywell ( HON). Now that Honeywell has pulled back, he would look to buy it around $55. Schlumberger ( SLB), in Adami's opinion, has more downside to come, but he would look to buy it on pullbacks.

Gartman's Take

Crude oil traded above $90 a barrel to set a record but then reversed to close at $88.60. Gold traded lower as the U.S. dollar traded higher against the euro. Dennis Gartman, author of The Gartman Letter, joined the "Fast Money" crew to discuss his take on the actions in the commodities markets.

Gartman suggests the U.S. is possibly already in a recession. He is long crude oil, but he plans to be less long at the end of the month. He expects oil to head back to $75. Adami thinks the next $8 to $10 in crude oil is down. Gartman also recommend selling down positions in gold especially if a recession is in the cards.

Next Week's Trade

After Friday's selloff, the market now has to get ready for a number of important earnings reports set for next week. Adami predicts that Microsoft ( MSFT) will knock the ball out of the playing field when it reports earnings, because of strong sales of video game Halo 3 and strong PC sales. He would be a buyer of the stock ahead of earnings. Macke agrees with Adami on Microsoft and he also likes EMC ( EMC) and Amazon.com ( AMZN). Finerman is also long Microsoft.

Adami thinks oil stocks don't want to go higher right now and he recommends selling short Exxon Mobil ( XOM). Najarian continues to like the oil service sector and he thinks investors were just panic selling on Friday. He highlighted that the oil service sector isn't dependent on the price of oil.

Najarian believes big pharmaceutical companies will look to conduct some takeovers in the biotech sector to improve their pipelines. He recommends buying Amylin ( AMLN), Biogen Idec ( BIIB) and Isis ( ISIS) for takeover plays.

However, Macke would rather be long Big Pharma stocks like Pfizer ( PFE) and Merck ( MRK) over Najarian's speculative biotech takeover plays.

Louise Yamada on Charts

Louise Yamada, one of the top technicians on Wall Street, joined the "Fast Money" crew to discuss her take on market technicals. Yamada interprets the behavior in the market is just a normal pullback from recent breakout prices. She points out that 200 points of Friday's Dow decline were caused by seven stocks.

Having said that, she continues to see weakness in financial and retail stocks but strength in technology names. It would be worrisome if the stock market was to break through previous levels set in July and March. Something more serious could be ahead, if those levels were broken.

Yamada thinks as the volatility index, or VIX, gets into higher levels the market may see more corrective action. She advised investors to pick the stocks that are in strong uptrends when they have pullbacks and sell the stocks that have broken through support levels.

Chip Shot

SanDisk ( SNDK) shares fell 15% after the flash-chip maker issued a cautious outlook. Adami says 45 million shares traded hands on Friday and this could be signaling a short-term tradable bottom. Najarian loves SanDisk and he thinks it's in the right place at the right time. He thinks it could be a takeover target for Apple ( AAPL).

Happy 52-Week High to one of the stocks that bucked the trend for Friday, Adobe Systems ( ADBE).

Pops & Drops

Pops -- Biogen traded up 16% after the biotech firm announced plans to explore selling the company. Najarian believes Biogen is fully valued and probably not going higher from these levels.

Nucor ( NUE) popped 5% after beating Wall Street earnings estimates. Adami is starting to like the steel sector and there is a lot of takeover chatter in the group.

Steven Madden ( SHOO) traded up 26% after the shoemaker announced plans to possibly sell the company. It sounds interesting to Finerman.

Drops -- IBM ( IBM) fell 5%. Macke cautions investors not to be a buyer of the dip.

Capital One Financial ( COF) fell 12% after reporting a quarterly loss. Finerman wouldn't touch it with a 10-foot pole.

eBay ( EBAY) dropped 8% on growth worries. Macke gets comfort in the mid-$30s.

Ericsson ( ERIC) collapsed 29%. Najarian remarks that Ericsson has a problem and he wouldn't touch it.

Goldman Sachs ( GS) fell 7% as the entire financial sector took a hit. Adami counsels buying it at $215.

Final Trade

The crew gave their best ideas before signing off for the weekend.
  • Macke recommends Intel (INTC).
  • Adami would short Exxon Mobil for the third day in a row.
  • Finerman likes defensive play Altria (MO).
  • Najarian prefers Apple ahead of earnings.
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