NEW YORK (TheStreet) -- Wednesday was volatile, with crude oil prices plunging nearly 5% and the release of the Federal Reserve's FOMC Minutes creating more uncertainty over when an interest rate hike would come.
The bond market didn't move too much following the minutes, Brian Kelly, founder of Brian Kelly Capital, said on CNBC's "Fast Money" TV show. Stocks initially rebounded but the gains didn't hold. The S&P 500 fell 0.8% on the day. It doesn't seem warranted for the Fed to raise interest rates in September, he added.
Tim Seymour, managing partner of Triogem Asset Management, said the Fed should hike interest rates next month. The economy is not going gangbusters but it's not doing badly either. The volatility index jumped 11% on the day, showing that investors don't seem too comfortable with the Fed backing away from a rate hike.
The Fed will lose its credibility if it doesn't hike in September, according to Guy Adami, managing director of stockmonster.com. The Fed has an impact on short-term rates, but not on long-term rates, he said, pointing out that 10-year Treasury yields were once again moving lower on the day.
Karen Finerman, president of Metropolitan Capital Advisors, said the Fed might as well hike interest rates. It'll likely only be for 25 basis points, which will make little to no difference in the long term.
The global economy is barely hanging in there and the lack of demand is weighing on crude oil, Adami added. Seymour said oil demand is expected to climb 2.5% next year.
Kelly added it's not just oil feeling pain because plenty of commodities -- copper, steel, iron ore -- have too much supply. However, these could rally with a drop in the U.S. dollar, on which he is short. Kelly is also long the euro and plans to take off both positions before the Fed's meeting in September.
While German equities haven't been trading that well, Seymour is looking for the DAX to drop to 10,500 to give investors a better buying opportunity. The region has improving earnings, a declining euro and lower valuations than U.S. stocks.
The NYSE Oil Index does not look good, said Rich Ross, head of technical analysis at Evercore ISI. The index has pulled back to its 150-month moving average, which has acted as very long-term support. If it fails, the index could drop another 10% to 25%.
More specifically, Chevron (CVX - Get Report) is starting to look attractive, Ross said. Currently near its 150-month average, this level has held as support for 30 years, he explained. Exxon Mobil (XOM - Get Report), on the other hand, looks more "grim," he added. It could fall it $70, a drop of almost 10%.
It's better to be late on buying the energy sector after it has bottomed than buying too early and seeing a further decline, Ross concluded.
Adami is a buyer of refinery stocks including Tesoro Corp. (TSO and Valero Energy (VLO - Get Report). He said to avoid Exxon Mobil, which looks headed to $70. The refiners have been the "safe place" to invest during the pullback in oil prices, Seymour said. But once prices rebound, these will get sold quickly.
Oil is impacting more than just energy stocks -- jet fuel prices continue to fall. As a result, airfares in the month of July dropped 5.6%, the biggest one-month drop in 20 years. Valuations are very low, Adami said. His top pick is JetBlue Airways (JBLU - Get Report).