NEW YORK (TheStreet) -- The broader market ended in the red after the Federal Reserve told investors, through the minutes of its last meeting, that tapering could possibly begin in a couple of months.
Brian Kelly, founder of Brian Kelly Capital, said the Fed finally has an opportunity to taper without shocking the markets and suggested investors shouldn't be nervous. He added the Fed should begin tapering in December.
Guy Adami, managing director of stockmonster.com, said the S&P 500 still seems likely to get to 1,760 this week. He thinks the Fed is unlikely to taper until at least the spring or summer of next year.
Stuart Frankel & Company's Steve Grasso said the markets should sell off 4% to 6%. If the 1,760 level fails to hold in the S&P 500, then it should head to 1,730. He suggested long-term investors should stay long.
Karen Finerman, president of Metropolitan Capital Advisors, said a 4% to 6% pullback isn't that drastic and wouldn't force her to sell any of her positions.
Anthony Scaramucci, founder of SkyBridge Capital, was a guest on the show and said the Fed is unlikely to taper as soon as everyone thinks. He suggested that it will keep "testing" the market by talking about tapering. He added that short-selling is a dangerous play for average retail investors because even if there is a taper it'll only be a trim from the massive stimulus program.
Adami suggested investors could potentially short JCP near $10.
The crew released their best short ideas:
Adami said traders could buy 3D Systems (DDD - Get Report) with a stop-loss at $65. Grasso said there is a lot of risk to retail traders trying to buy the stocks, which might be acquisition targets for big tech companies such as Hewlett-Packard (HPQ - Get Report).
Thomas Flexner, global head of real estate at Citigroup (C - Get Report), was a guest on the show and said the home rental market should continue to improve. Despite REITs getting hit on tapering talk earlier this year, his top three REIT plays include lodging, industrial and multi-family rentals.
Priceline.com (PCLN) was the first company on the show's "Pops & Drops" segment. Adami said the stock is still cheap based on valuation.
Staples (SPLS) fell 1%. Despite it being cheap, Mike Khouw, managing director and primary strategist at DASH Financial, said he would avoid the stock.
Yahoo! (YHOO) popped 3%. Grasso continues to remain long and said Yahoo! is headed to $40 and above.
Deere (DE - Get Report) jumped 2% and Finerman said the company had a decent earnings report. But she prefers United Rentals (URI - Get Report) to take advantage of the improving U.S. construction market.
Trina Solar (TSL) closed 5% higher and Kelly suggested taking profits.
Johnson Control (JCI - Get Report) boosted its dividend and initiated a $3.5 billion share buyback program. Adami warned investors not to chase it, but suggested the stock wasn't that expensive and should be watched for a pullback.
For their final trades, Adami said to sell WDC, Khouw is selling HD and Grasso said to buy Qualcomm (QCOM - Get Report) with a stop-loss at $69.85. Finerman is selling WellPoint (WLP) and Kelly said to sell the Market Vectors Gold Miners ETF (GDX - Get Report).
-- Written by Bret Kenwell in Petoskey, Mich.