'Fast Money' Recap: It's A Surprisingly Weak Stock Market

NEW YORK (TheStreet) -- The S&P 500 slid 0.80% on Monday, led by the Russell 2000, which fell 1.40%. 

On CNBC's "Fast Money" TV show, Guy Adami, managing director of stockmonster.com, thinks the iShares Russell 2000 ETF (IWM) will decline to $108. If it is able to bounce, then the S&P 500 will likely go on to make new highs. Tesla Motors (TSLA) looks likely to decline to $225, a level where investors can consider buying once again. 

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Karen Finerman, president of Metropolitan Capital Advisors, said she was surprised by Monday's weak price action given the amount of M&A activity announced that day. She is not a buyer or a seller of the CBOE Volatility Index (VIX.X) at current levels, but reasoned that things seem likely to get worse before they get better for U.S. equities. 

Pete Najarian, co-founder of optionmonster.com and trademonster.com, said investors need to be patient and wait for a more clear pattern to emerge in the market. Large-cap technology stocks like Microsoft (MSFT) and Hewlett-Packard (HPQ)  continue to trade well, as do financial stocks. 

Tim Seymour, managing partner of Triogem Asset Management, said the volatility in the currency market is beginning to spill over into the equity markets. There has been a lot of news in the past few few days and investors are still sorting out what to do, he said.

Ari Wald, head of technical analysis at Oppenheimer and Company, called the current environment a "very selective market" for investors. He is not a short-seller near current levels but said he wouldn't be much of a buyer in the S&P 500 until it declines to 1,935, or the index's 120-day simple moving average. He reasoned that the iShares Russell 2000 ETF needs to find support near $108 or it could head lower, and Tesla needs to stabilize near $215 or risk breaking its longer-term trend. 

Seymour reasoned that a pullback to 1,935 in the S&P 500 would be a pullback of almost 5%, which could rattle investors much more than many probably think. He added that the German equity index, the DAX, and Russell 2000 appear "vulnerable." 

Finerman said one trade that continues to work for her is being long the S&P 500 and short the Russell 2000 because large-cap stocks continue to outperform small-cap stocks.

Shares of Alibaba (BABA) slid 4.5% in its second day of public trading. Najarian said investors will still be able to buy the stock cheaper. He also reasoned that Yahoo! (YHOO) can continue to climb, despite selling off hard the past two trading sessions. It might have trouble gaining upside traction until the Alibaba options go live next week since big investors are selling Yahoo! as a hedge on Alibaba. 

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Adami suggested that Yahoo! has sold off too far, too fast and is worth a look on the long side. There's one more good rally left in the stock, he said. 

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