NEW YORK (TheStreet) -- U.S. equities took a beating on Friday, with the S&P 500 finishing lower by over 2%.
On CNBC's "Fast Money" TV show, Brian Kelly, founder of Brian Kelly Capital, said it's too early to tell if this is the start of a big correction. He added that continued political and financial issues in Argentina could lead to higher oil prices.
Steve Grasso, director of institutional sales at Stuart Frankel & Company, said the S&P 500 may decline to the 100-day moving average of 1,762. He added the recent selloff is unlikely the start of a 10% correction.
Tim Seymour, managing partner at Triogem Asset Management, said many emerging market issues simply do not matter because economically they are too small. He argued the macro economic data remain strong.
Josh Brown, co-founder and CEO of Ritholtz Wealth Management, agreed with Seymour about the macro economy. He added the market rally has been all about sentiment and a 10% correction is possible, which would put the S&P 500 at 1,665.
Guest Bill Fleckenstein, famed short-seller and president of Fleckenstein Capital, agreed it's too early to tell if this is the start of a bigger pullback but thinks it is unlikely the start of the really big pullback. He added that the Federal Reserve could take tapering off the table if things got bad enough. He said "high-flying tech" stocks are the most at risk of a severe decline because of the overvaluation.
Grasso said it would be a bad thing if the Fed reversed its tapering decision because it would create volatility in the market once again. For his emerging markets play he is a buyer of the Mexican peso and oil companies, such as Halliburton (HAL) and Key Energy Services (KEY), that operate in the area.
Kelly said he is a seller of the Euro Stoxx 50 future indices. He also likes Grasso's oil trade.
Brown said not all emerging market economies will suffer from current account deficits, but it might take a few months to pan out since all of the markets are currently being sold down.
Brian Marshall, managing director at ISI Group, has a strong buy rating on Apple (AAPL) with a $600 price target. He said the quarter should be strong because of the company's product cycles. He added that the March quarter, which is typically weak for AAPL, should be strong due to the increased demand in China. He said the stock is unlikely to fall after reporting earnings on Monday.
Kelly is a buyer of Apple. Regarding natural gas, he attributed some of Friday's rally to short-covering. He said at some point the fuel becomes a sell.
Seymour suggested investors look to coal stocks because of the high price of natural gas.
For their final trades, Kelly said to short the ProShares UltraShort Euro ETF (EUO) and Grasso is a buyer of Southern Company (SO). Seymour is buying YNDX and Brown suggested investors analyze their portfolios and consider raising cash by selling the positions in which they have no faith.
-- Written by Bret Kenwell in Petoskey, Mich.