NEW YORK ( TheStreet) -- Markets started off the week in rally mode as the U.S. appears to be backing down from action in Syrian and the economic news out of China was better than expected, Brian Kelly said on CNBC's "Fast Money" TV show.He added that investors have likely priced in too much tapering at this point and the markets seem like a buy. Jason Parets said he doesn't care for U.S. equities, preferring emerging markets to the U.S. and Europe. Karen Finerman said she is getting a little apprehensive of stocks, but still likes Citigroup ( C), Bank of America ( BAC), and J.P. Morgan Chase ( JPM). She added that she is still short Caterpillar ( CAT). Guy Adami said there was nothing wrong with taking profits in the SPDR Homebuilders ETF ( XHB), which could breakout from its current down channel or reverse and continue lower. Kelly said he likes Europe as an investment and the Euro Stoxx 50 index would be a good place to look. He added that if investors want to be conservative, they could short the S&P 500 against it. Mike Khouw said he likes Europe over U.S. equities on a valuation basis, which also allows for investors to absorb less risk. Looking domestically, investors are watching Apple ( AAPL) for Tuesday's event. Peter Misek, managing director and senior tech analyst at Jefferies, called into the show and said he expects two new iPhones (the 5s and 5c), and a deal with China Mobile ( CHL) and NTT DoCoMo ( DCM). He thinks this will be a "sell-the-news" type of event, and Apple will eventually fall to $450 if it does not take out its previous opening weekend sales number. Also, the iPad Mini refresh could be big, especially if Apple makes a non-retina display version, because of the lower pricing point. Kelly said if the stock sold off, he would definitely be a buyer, with Parets adding that if investors do buy it, they should short the S&P 500 against it. Five Below ( FIVE) beat on top- and bottom-line estimates, but Adami said the valuation is ridiculous. But he added that the short interest is very high, too, and he would not chase near $44.
PVH Corp. ( PVH) beat on the top and bottom lines, too, but Finerman said she would rather own Macy's ( M) because PVH expressed concern over the global consumer. Tenet Healthcare ( THC) was the first stock on the show's "Pops & Drops" segment. Kelly said Monday's low could act as a stop-loss level for longs. Tesla Motors ( TSLA) was down 4% on Monday and Parets said this name is for the very disciplined trader and is one he wants to avoid. Expedia ( EXPE) popped 2%. Khouw said the valuation makes the stock interesting at these levels. Molex ( MOLX) ripped 31% and Adami said he doesn't expect more acquisitions in the sector, but thinks Amphenol ( APH) will be the big winner. One of Finerman's recommendations, Navios Maritime ( NM), popped 5% and she said she might actually like Navios Maritime Acquisition Corp. ( NNA) more now after NM's big move. Wal-Mart ( WMT) was the featured stock on the show's "Street Fight" segment. Adami defended the stock, saying that although sales have been disappointing, margins are improving. He added that the stock is cheap on a historical basis and the market seems to have priced in a slowdown in sales. Parets took the bearish side and said the chart looks terrible. He added that while the broader market has had a terrific year, Wal-Mart has failed to perform well and the momentum has been weak. Dennis Gartman, publisher of The Gartman Letter, was a guest on the show and said Japan's hosting of the 2020 Summer Olympics would have a negative effect on the economy over the long term. However, it should give a boost to GDP, especially as new infrastructure gets built out. He remains long the Nikkei and short the yen. Herbalife ( HLF) was the first stock on the show's "Trending Trades" segment. Shares are is up almost 100% on the year. Parets said this is a good stock to buy on a technical basis and with big investors in the name. Hovnavian Enterprises ( HOV) missed on the top and bottom lines and Khouw said he's still not a fan of the homebuilders on a valuation basis. Finerman said Discover Financial Services ( DFS) has more going for it than transaction fees thanks to its credit exposure. She said the stock is semi-compelling on a valuation basis and might be worth a look. Khouw said Nokia ( NOK) will now be a networking equipment and mapping company, and actually seems like a better business than before. Kelly said he expects a small taper from the Federal Reserve of about $10 billion per month, with $15 billion as the max. He added that at one point it seemed like the market priced in a $25 billion taper. Adami said he would own Principal Financial Group ( PFG) into the analyst day on Friday and then sell it. He added that he would rather own Raymond James Financial ( RJF) instead. Parets said traders could be long Cree ( CREE) above $53.80. For their final trades, Finerman said to buy Foot Locker ( FL) on retail weakness, Khow was a buyer of Deere & Co. ( DE) and Kelly was buying the SPDR Gold Trust ETF ( GLD). Parets said to buy natural gas and Adami was a buyer of Chicago Bridge & Iron Co. ( CBI). -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell Follow TheStreet.com on Twitter and become a fan on Facebook.