'Fast Money' Recap: Another Down Day

NEW YORK ( TheStreet) -- The S&P 500 declined for a third straight day on low volume over fears of potential tapering.

On "Fast Money," Guy Adami said that although the markets have not had a 10% correction in two years, they have had a couple that got close to the mark, at about 8.5%. He added that it might be time to take some money off the table even though the S&P 500 might get back to 1,725.

Dan Nathan said the gains have been great, but the trade seems like it's getting crowded. Everyone from around the world has been chasing U.S. equities, which pushed stock prices to record highs.

Tim Seymour said the iShares MSCI Emerging Markets ETF ( EEM) and other emerging markets are approaching multi-year lows and that there is a lot of value outside of the U.S.

Josh Brown added that it's been a buy-the-dip environment and when the markets had a 6% correction in June of this year, buyers rushed back in. He said he's not sure when we'll get a sustained, deep pullback, but that it will shock a lot of investors when we do.

Green Mountain Coffee Roasters ( GMCR) reported earnings and posted a bottom-line beat on lighter-than-expected top-line figures. Seymour said the stock was expensive and he would avoid until it forms a bottom.

Guest Doug Kass, founder and president of Seabreeze Partners Management and a contributor to TheStreet.com, said that it's been a tough six weeks because he has been short.

Overall, he thinks there are three major bearish factors to consider: China's sluggish activity, poor economic growth and rising interest rates. He is looking for more downside and hoping that July put in a near-term top.

Jack In The Box ( JACK) reported earnings. Adami said he understands why some investors would take profits, but would be a buyer of the stock near $37.50.

First Solar ( FSLR), which missed top- and bottom-line estimates, was the first stock on the show's "Today's Top Trades" segment. Seymour said the solar business will remain important, but the numbers were bad and traders should be careful taking a position.

Amgen ( AMGN) is rumored to be taking over Onyx Pharmaceuticals ( ONXX) within a couple of weeks, but Nathan said to avoid it since the price action is not confirming the rumor.

Adami said he likes Chicago Bridge & Iron Co. ( CBI), but thinks it could trade lower by another dollar per share before heading higher.

Brown said he continues to like Lululemon Athletica ( LULU) and thinks it will break out to the upside after it's done consolidating. He added that the company has barely scratched the surface with overseas sales and it remains a growth stock.

Dan Primack, senior editor at Fortune, said Twitter is currently valued at just under $10 billion. He also said there is no push from early investors to take the company public, despite some calling for a 2013 IPO. Instead, he thinks the second quarter of 2014 would likely be the earliest for a public debut.

Priceline.com ( PCLN) reports earnings on Thursday. Nathan said the options market is implying a 6% move. With the stock up 50% in 2013 and after Expedia's ( EXPE) huge fall last week, now is not the time to initiate a position, he said.

For their final trades, Adami said he is a buyer of Oracle ( ORCL) and Seymour was sticking to his long Potash ( POT) call. Brown said to buy First Solar and Nathan was shorting the iShares Russell 2000 ETF ( IWM).

-- Written by Bret Kenwell in Petoskey, Mich.

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Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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