'Fast Money' Recap: Getting Defensive

NEW YORK ( TheStreet) -- Markets were able to rally today, closing slightly higher after it was confirmed that Janet Yellen would be the next leader of the Federal Reserve.

On CNBC's "Fast Money" TV show, Guy Adami said the S&P 500 still seems on course to trade down to 1,620, but the momentum names are broken for now.

Stephanie Link said volatility will continue and she is starting to put money to work. She likes select industrial, retail and technology stocks.

Tim Seymour said it makes sense to buy volatility and be defensive. He likes the U.S. dollar on the long side and said to short the rallies in gold.

Karen Finerman said she's optimistic on both her U.S. and European holdings and is trying to avoid the noise and buy what she likes.

Larry McDonald, publisher of Fiscal Cliff Notes, was a guest on the show and elaborated on Fidelity selling out of its short-term U.S. debt holdings. He said money market funds can't absorb any sort of credit risk; when presented with it, they are forced to liquidate their holdings. He added that Fidelity won't be the only firm to sell out in the next couple of days.

Turning to the recent heavy selling in tech, Adami said investors can continue to own Facebook ( FB) into the earnings report and exit the position beforehand.

Finerman said she was long Google ( GOOG), which could do well since it has fallen $60 since its last earnings report.

Seymour said Netflix ( NFLX) would be at the top of his "sell list" due to its extreme valuation.

Link said it's hard to step into tech right now, which doesn't have many near-term catalysts. However, tech looks good for the long term. She likes AOL ( AOL) based on valuation and management.

Regarding Ruby Tuesday's ( RT) recent earnings whiff, Adami said that it doesn't seem company-specific but because of low consumer spending.

Link added that consumers are picky about where they spend their money, which seems to be going towards hard goods and healthy food, such as Chipotle Mexican Grill ( CMG).

Ed Bosek, co-founder of BeaconLight Capital, was a guest on the show and said the $2.3 billion bid from Jos. A. Bank Clothiers ( JOSB) for Men's Wearhouse ( MW) would make sense. While it seems unlikely that it will work, Bosek is glad to see that management is looking at the correct targets. He added that it's about half the size of Men's Wearhouse, making the acquisition difficult, but a big share buyback would also make sense.

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