'Fast Money' Recap: Market Volatility Returns

NEW YORK (TheStreet) -- The Dow Jones Industrial Average closed lower each day this week for the first time in nearly two years. 

On CNBC's "Fast Money" TV show, Tim Seymour, managing partner of Triogem Asset Management, pointed out that volatility has finally started to creep into the market. He advised investors to stayed hedged, partly by selling the Materials Select Sector SPDR ETF (XLB) and the iShares Russell 2000 ETF (IWM). 

Guy Adami, managing director of stockmonster.com, said the S&P 500 could trade down to 1,816 before finding some level of support. He added that bond yields could continue moving lower throughout the rest of 2014. 

Brian Kelly, founder of Brian Kelly Capital, said he sold some of his "risk-off" positions and bought more "risk-on" positions, meaning he thinks U.S. stocks could rally next week. He added that a lot of the current negative news is already priced into the market. 

Steve Grasso, director of institutional sales at Stuart Frankel, said Friday's weakness seems to be overdone. However, he argued there is still a lot of uncertainty in the market due to geopolitical issues out of Ukraine. 

Seymour, who is short the DAX, said German equities are at a bigger risk to geopolitical turmoil in Eastern Europe. 

Gordon Johnson, senior equity research analyst at Axiom Capital, said he's bearish on China, saying the country's debt continues to grow. He suggested that growth in the region could slow as a result of lower lending. Therefore, he recommended short-selling Joy Global (JOY), Cliffs Natural Resources (CLF), U.S. Steel (X) and Rio Tinto (RIO).  

Kelly said investors should avoid shares of Target (TGT) since there are no positive catalysts in the near term. Seymour agreed, saying investors need to wait for Target to bottom before stepping in to buy. 

Grasso said investors should watch Tesla Motors (TSLA) to see if it holds $225. If it does and rallies next week, then they should buy the stock. 

Matt Jacob, senior retail and leisure analyst at ITG Investment, was a guest on the show. His firm's recent report sees Coach (COH) reporting better-than-expected third-quarter revenue for North America.

Despite the fact that Coach continues to lose market share to Michael Kors (KORS), he said the Street is too pessimistic. In the longer term, he sees the turnaround story taking hold, but reminded investors that it would not be an immediate fix. He also liked KORS in the longer term as well. 

Seymour said Sina (SINA) faces tough competition, but he's still a buyer at current levels. 

Grasso said Apple's (AAPL) margins are a concern as Samsung's CEO stated the technology market is "in turmoil" due to tough competition. When competition heats up, margins are at risk of declining.

Seymour called Samsung a "world-class company" but said it's a little too early to start buying the stock. 

Kelly said he is long the iShares MSCI Emerging Markets ETF (EEM), which is heavily weighted to shares of Samsung. He said he is concerned by the saturation in the high-end smartphone market, but admitted that it is a bigger concern for Apple than Samsung. 

Kelly said investors should not buy Keurig Green Mountain (GMCR) on the news that it will be added to the S&P 500. he suggested buying at $110.

-- Written by Bret Kenwell in Petoskey, Mich. 

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Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter.

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