With Black Friday approaching, "Fast Money" traders questioned whether traditional retailers could cut into Amazon's digital dominance.

Amazon shares touched a new all-time high Monday and have soared more than 118 percent this year. Investors may want to sell a chunk of Amazon stock and buy into Wal-Mart as it continues to invest in digital platforms to compete, said trader Brian Kelly.

Wal-Mart shares have fallen about 30 percent this year.

Trader Dan Nathan contended that Macy's and other traditional retailers could find themselves "stuck in the mud" as they invest in e-commerce. Macy's shares have plunged 39 percent this year and closed at about $40 per share Monday.

Trader Guy Adami noted, though, that Macy's could make a good trade using this year's low of just under $38 per share as stop. He said traders could also use Nordstrom's low of about $50 per share as a stop.

The stock closed Monday at just under $57 per share.

Disclosures:

Tim Seymour

Tim Seymour is long AAPL, BAC, CLF, DIS, F, FCX, GE, GM, GOOGL, INTC, JCP, JPM, KO, LGF, T, TWTR, VRX. Tim's firm is long BABA, BIDU, MCD, NKE, SBUX, YHOO.

Dan Nathan

Long PFE buy-write, Long TWTR & Long March Risk Reversal, Long EEM Dec 35/32 Put Spread, long IWM Dec Put Spread, Long UUP call spread, Long XLU Dec Call Spread, Long PYPL Jan Risk Reversal, Long M Jan16 52.50 / 62.50 call spread, Long INTC Dec Put Spread, Long XLF Dec put spread, Long NTAP risk reversal

Brian Kelly

Brian Kelly is long BBRY, GDX calls, GLD, Bitcoin, Hong Kong Dollar, TLT, US Dollar; he is short Yuan, British Pound, Candaian Dollar, Euro, GSG, Swiss Franc, Yen, EEM, EWC, EWH, EWU, EWG, SPY

Guy Adami

Guy Adami is long CELG, EXAS, INTC, Guy Adami's wife, Linda Snow, works at Merck.