"I don't think this is a panic," said Pete Najarian, co-founder of optionmonster.com andtrademonster.com. "Volumes are fairly light."
"I'm not selling any of my longs," said Karen Fireman, president of Metropolitan Capital Advisors. "The volatility index has a way to go."
The Dow hit a three-week low in light trading. This stemmed partly from a decline in the transportation index, which dropped below a key trend line. The transportation index is a key component of the Dow and sometimes foreshadows or influences larger trends. It has been languishing for more than six months.
The transportation sector, including rails, airlines, and more recently, cargo companies such as Fedex (FDX).
"Transportation has not been performing since November," said Guy Adami, managing director of stockmonster.com. "I don't think you pull the ripcord yet.
Other panelists saw buying investment opportunities. "The valuations are very cheap," said Tim Seymour, managing partner of Triogem Asset Management. Added Najarian: "I like airlines. They make money either way."
The panelists expressed some concern about the transportation sector dragging on the Dow, but they remained optimistic. "The risk continues to be on the upside," said Adami. The S&P is holding well." He added that technology security company Palo Alto Networks (PANW) had reached an all-time high.
Guest Richard Ross, managing director of Evercore ISI, said that the 150-day moving averages had remained "broadly intact." "I expect the 150-day moving average to hold."
He added that he "was a buyer," and said that investors had to be selective. He pointed to opportunities in financials, technology and the Japanese market. A strong dollar has also hurt markets.