Stocks sold-off Friday, as investors became worried about a slowing Chinese economy and European debt problems.
There now seems to be a double-top, said Guy Adami of Drakon Capital, with the 1,220 level in the S&P 500 being the same high made on Apr. 26.
Stuart Frankel's Steve Grasso agreed, putting resistance in the 1,220 to 1,229 range. He thinks the market can hold onto the 1,170 level, but recommends selling if it breaks through that point.
Both Grasso and Adami now is a good time to buy protection.
Patty Edwards, chief investment officer at Trutina Financial, said investors should be hedged. If you haven't already, take profits and wait this one out, she said. Edwards added that she went risk-off with a few smaller financial names. She bought Bank of Montreal and BlackRock Kelso Capital for its dividend yield.
Options trader JJ Kinahan brought a cool face, arguing that part of the sell-off might be due to some traders having took a four-day weekend in honor of Veteran's Day.
Adami said that might be the case, but he thinks it's more likely the market is trying to tell you something. That is, this might be a good opportunity to get in if you are bullish. He said the levels is at above 1,220 or 1,225.
Kinahan spotted some "Unusual Activity" in the options market Friday.
There are a lot of orders coming in for the Dec. 15 puts in the Financial exchange-traded fund, said Kinahan.
This tells him a lot of people are wanting to protect the gains they've enjoyed lately.
TRADING RETAIL AHEAD OF EARNINGS
The following retail names are set to report earnings results next week:
Lowe's , Nordstrom , Urban Outfitters
Abercrombie & Fitch , Home Depot , TJ Maxx , Walmart
Target , Limited Brands
Buckle , Ross Stores , Sears , Staples
Of all of these retail names reporting next week, Kinahan would watch Lowe's as a read on home improvement. He prefers Home Depot, however, because of its management and dividend yield. Adami also likes HD for these reasons.
CALL TO THE FLOOR: AMERIGROUP
Shares of Amerigroup are at 5-year highs. To talk about that and his outlook for both his company and health care in general, CEO James Carlson stopped by the "Fast Money" studios. Watch the video to see how it went.
CALL THE CLOSE