NEW YORK (TheStreet) -- The markets sold off hard Tuesday on news of a potential U.S. military strike on Syria.On CNBC's "Fast Money" TV show, Guy Adami said this is going to force the Federal Reserve to postpone any tapering of its bond buying, which should propel the markets higher. Tim Seymour said the S&P 500 is at a crucial support point, the 100-day moving average. He suggested staying in defensive stocks -- which is not necessarily defense sector stocks. He thinks this will have no effect on the Fed, so tapering should still happen. Steve Grasso said there's no way the Fed can think about tapering with so much geopolitical tension and with the markets on such shaky ground. The most the central bank can do is a very, very small reduction, he added. Josh Brown said the Fed really needs to pay attention to the emerging markets, which have sold off violently. He agrees with Grasso on the Fed cutting back just a small bit in its bond purchases, thus demonstrating it has some sort of a game plan. David Bianco, chief U.S. equity strategist at Deutsche Bank, expects to see support near 1,600 in the S&P 500. He added there hasn't been a fundamental change in the market and this selloff should be viewed as a buying opportunity. He added the markets could have trouble moving higher if earnings growth remains flat and business spending contracts. Josh Brown said higher oil prices would help Chevron ( CVX) and is a good "flight to safety" trade. Adami said CME Group ( CME) has been correlated with Treasury bond yield rates. He believes both will continue to head lower. Seymour said crude oil prices could head higher because of geopolitical tensions, but also pointed out that demand from European industrials has been picking up. Brown said oil prices could pop higher, but he doesn't think they'll be able to stay at much higher prices, such as $125 per barrel. He noted that all oil spikes eventually fade when they take place due to geopolitical news.
Grasso was also quick to note that shares of Tesla Motors ( TSLA) moved higher on Tuesday, as crude rallied. Brown said he is not a buyer of TiVo ( TIVO) despite its legal success against other cable companies and being a potential acquisition target down the road. Douglas Duncan, who manages Fannie Mae's Economic and Strategic Research Group, said that since World War II the average 30-year mortgage rate is 6.5%, meaning today's rates near 4.6% are favorable from a historic standpoint. He added that the housing recovery is far from robust and still faces a lot of hurdles, but home prices are unlikely to start falling. Adami said the SPDR Homebuilders ETF ( XHB) looks awful on a technical basis, but short-term support should be near $28. Brown said he really wants to buy some of the homebuilder stocks but if the current housing data woes continue, there's definitely more downside ahead. The gold miners were the first group on the show's "Trending Trades," which failed to turn green despite the physical metal advancing 2%. Grasso said he wouldn't give up on the Market Vectors Gold Minters ETF ( GDX) just yet. Apple ( AAPL) dropped 2.5% on Tuesday. Brown said the stock got hit with the overall market but is extremely liquid, meaning investors who were looking to raise cash in the selloff could easily sell some of their positions. FedEx ( FDX) dropped 3% and Adami said the company is cheaper than United Parcel Service ( UPS), despite having a smaller dividend. He added that he expects margins to increase. Grasso said the last time the markets were scared about the debt ceiling and U.S. budget issues, it became a buying opportunity. Brown added that he doesn't think it'll be as big of deal as it was last time. Tiffany & Co. ( TIF) was the featured stock on the show's "Street Fight" segment. Seymour said gross margins will begin to improve, there's solid momentum in key international markets, and Asia-Pacific comps increased 13%. He added the company has a cheaper valuation than its peers. Brown took the bearish side and said the stock looks like it's forming a double top. He added that comps were essentially flat in the United States and the valuation is trading at a 30% premium to its five-year historical average. He concluded it's a bad sign when the stock falls on good news, which it did on Tuesday. Brown said he would like to see Brown-Forman ( BFB) fall on Wednesday after reporting earnings, so he can buy the stock on a dip. Adami said he expects Williams-Sonoma ( WSM) to pop when it reports earnings, which will give traders a favorable short entry. For their final trades, Grasso said to buy Potash ( POT), Seymour said to short Deutsche Bank ( DB) and Adami was a buyer of Deere ( DE), because of a bullish double bottom. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell Follow TheStreet.com on
Twitter and become a fan on Facebook.