NEW YORK (TheStreet) -- The S&P 500 dropped 1.25% and the Nasdaq fell 2.60% on Friday.
On CNBC's "Fast Money" TV show, Guy Adami, managing director of stockmonster.com, said the S&P 500 had a reversal day, which could signal that more downside is ahead. However, he argued that investors have seen similar price action so far this year that has resulted in new highs for the index.
Steve Grasso, director of institutional sales at Stuart Frankel, also questioned if the market was faking out investors and would soon make new highs. He suggested investors wait to buy stocks until the S&P 500 breaks above 1,900.
Tim Seymour, managing partner of Triogem Asset Management, pointed out the Nasdaq broke below its 100-day moving average for the first time since June. He added that pullbacks are okay and that value stocks still appear attractive.
Brian Kelly, founder of Brian Kelly Capital, took profits in a number of stocks, including Microsoft (MSFT), Advanced Micro Devices (AMD), Cisco Systems (CSCO), and Consol Energy (CNX) while booking a loss in Facebook (FB).
Grasso said value technology stocks are acting as a "shelter" for investors. He added that people are also buying energy stocks.
Kelly suggested that investors could short-sell financial stocks via the Financial Select Sector SPDR ETF (XLF).
Grasso was a buyer of KB Home (KBH), which has solid growth out of Texas and California.
Adami said PayChex (PAYX) should do well if the broader market doesn't continue to pull back.
Seymour said he likes SolarCity (SCTY) near $55. He was a seller of gold.
Kara Swisher, co-executive editor at Re/Code, was a guest on the show. She said the anonymous services business -- like SnapChat and Secret -- is growing rather quickly, especially among the younger generation.
She added that Facebook is likely to get involved, but not through an acquisition. Regarding the company specifically, she said CEO Mark Zuckerberg seems worried about "staying current" and is emulating Google (GOOG) by adopting many different business strategies.
Kelly, who sold Facebook, was still long Twitter (TWTR). Seymour said Twitter looks interesting on the long side at current levels.
Grasso was also long Twitter and said the stock could sell off ahead of its earnings report in May.
Kelly said investors could buy Autodesk (ADSK) as a safer play on 3-D printing. Grasso said his own safer 3-D printing play was Hewlett-Packard (HPQ). He added that Stratasys (SSYS) has a better looking chart than 3D Systems (DDD).
Citigroup (C) fell 1% and was the first stock on the show's "Pops & Drops" segment. Seymour was a buyer of the stock.
Mylan (MYL) jumped 2%. Grasso said investors could stay long with a $50 stop-loss.
Anadarko Petroleum (APC) climbed 2%. Adami said there is more room to the upside.
Workday (WDAY) dropped 4%. Kelly said to avoid the stock.
Regarding recent initial public offerings, Kelly was a buyer of Control4 (CTRL) because it is a good takeover candidate.
Seymour was a buyer of Hilton Worldwide (HLT). Global travel is doing well and the company's Ebitda continues to grow.
Adami said investors could benefit from IPOs via Lazard (LAZ), a banking company that helps orchestrate the deals.
For their final trades, Kelly was a buyer the iPath Dow Jones-UBS Sugar Total Return Sub-Index ETN (SGG) and Grasso was a buyer of Pioneer Natural Resources (PXD). Adami was buying Symantec (SYMC), while Seymour was selling the iShares MSCI Brazil Capped ETF (EWZ) and buying the iShares MSCI South Korea Capped ETF (EWY).
-- Written by Bret Kenwell in Petoskey, Mich.