'Fast Money' Recap: Selloff Ahead?

NEW YORK ( TheStreet) -- The markets managed to finish up Friday despite a decline in consumer confidence sentiment.

The Dow Jones Industrial Average rose 13.02, or 0.12%, to 10,607.85. The S&P 500 added 0.93, or 0.08%, to 1,125.59, while the Nasdaq gained 12.36, or 0.54%, to 2,315.16.

Guy Adami said on CNBC's "Fast Money" show the rally in the S&P has been impressive the past two weeks, but he's starting to see evidence of a pullback. "Everything is lining up for a potential selloff next week."

Tim Seymour said he expects an options hangover to last into next week and will be watching to see what happens at the Fed meeting on Tuesday. He said the gold rally is not good news for equities.

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

Brian Kelly said if investors were looking at the technicals away from equities, where the euro and yen reversed and closed on their lows, the situation doesn't bode well for the equities next week.

Joe Terranova also said today's market reversal didn't look good, adding the markets usually don't respond well to FOMC meetings.

Melissa Lee, the moderator of the show, mentioned that Doug Kass, general partner of Seabreeze Partners, had noted that the market seemed to be close to a top and that he didn't like the fact that the recent market tops occurred on light volume.

Lee said tech stocks did well today, with Oracle ( ORCL) seeing nice price action on its strong earnings.

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Terranova said he reduced his stake in Oracle by a half, although he liked the company's momentum. Adami agreed on the move, saying there will be an opportunity to buy it back at a cheaper price.

Lee noted that Hewlett-Packard ( HPQ) was down 3% as it continues its search for a CEO.

Michael Block, chief equity strategist for Phoenix Partners, said it will most likely be an internal candidate, a choice that will not sit well with the market.

Shifting to Research In Motion ( RIMM), Kelly said the Street was disappointed in the company's comments about seeing prepaid as a growth area because it will mean a lower average sales price and revenue.

Terranova reiterated his no-trade position in RIM because its subscription additions were down 70% year over year. Adami said the stock might be heading down to $40.

Adami said Amazon.com ( AMZN) failed again at the $151 level and advised taking profits. Terranova said he was impressed with the reversal in Qualcomm ( QCOM) and sees it moving toward $50.

Lee said gold had a great week, outperforming stocks, bonds, commodities. Victor Sperandeo, founder of Alpha Financial Technologies, said that trend will continue as long as countries continue to print money and bail out ailing companies.

He said when Japan printed money this week to knock down its currency, gold traders stepped in to buy gold futures.

Lee noted that the IPO of Sunfun Holdings ( SFUN) soared 72% on its first day of trading. John Carney, Netnet editor, was wary of the Chinese real estate portal because it has gone through three accounting firms.

Carney said investors don't seem to scared off by that because it is one of the few ways they can play China's real estate market. The trading panel wanted nothing to do with the stock.

In the final trades, Seymour said he would buy Mobile TeleSystems ( MBT). Adami said he would sell Freeport McMoRan ( FCX). Kelly liked Sturm, Ruger & Co. ( RGR). Terranova liked Clorox ( CLX) And Block said he would short Fedex ( FDX).

--Written by David Tong in San Francisco.

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