correction necessarily. that's what a lot of participants are saying out there. we'll have to see what comes here. >> it should usually take more sessions than that anyway. we'll leave it there for the time being. mike santoli, sara eisen, thank you so much for your help on "closing bell." on that note, melissa lee take it away. >> thank you, kelly. cnbc's breaking coverage of this historic sell-off continues. if you are just joining us, today was the day wall street looked into the abyss. a day market by fear and chaos. the dow falling 588 points. at the lows we were down as much as 1,089 points. not a single component finished higher. jpmorgan was the worst performer on the day. the dow just registered its worst three straight days of losses since the '87 crash. the s&p fell almost 5% today. it is now in an official correction. energy was the worst-performing sector there. the nasdaq at one point fell as much as 8% in early trading, closed lower by nearly 4%. it has now lost 11% in just one month. is the correction we just witnessed about to turn into a

bear market? guy, what do you say? >> well, mel, it certainly feels that way. let's go back and talk about some levels. this morning was i think one word you used was pandemonium. let's get that out of the way. the resulting rally was violent. but it traded right up to levels that steve grasso has flagged numerous times. 1950. traded up. kissed it. and failed miserably. i thought that move in the mid-day was worse than the actual open. and we can have that conversation later. do think we're going into bear market territory? yeah, i do, because we talked about it just a few minutes ago. there are no catalyst that's i see other than the chinese coming in and doing something extraordinary, that they're going to get the sentiment to change as quickly as we need it to. >> is that the way it feels? >> it definitely feels that way. when you look at what got us here, it's what guy just spoke-b china, credit spreads everywhere, e.m., commodities getting whacked, and now you have technicals to back it up. whether it was the fundamentals or technicals that got us here, felt like a weak close on

friday, felt like a weak close today. it feels like the market wants to go down and retest much lower levels. >> on friday you said you wouldn't be surprised if the market bounced today. what's your thesis at this point? >> i still think we're at point where you should be -- i'm not of the same state of mind. i think we're at the point where we've seen mostly the worst. maybe there's a little more down side here. but i'll tell you, we're at a level that if you have a long-term time horizon you should be stepping in and buying stocks. the headlines out of china we're going to continue to hear them for the rest of our lives. and the fact is are they slowing down? they absolutely may be slowing down to some extent. but i'll tell you what, they have the capacity, they have the balance sheet and they have the willingness to change and to actually move their economy to the next level. the only thing they don't have is the experience. so they're going to make mistakes along the way. you've talked about the little nuances you heard from them. i haven't seen a big uptick in what's occurred. but they're trying and they're going to force it. >> policy last night out of china, they started talking

about pension funds, could put up to 30% of the allocations in the market, got a little strike. means nothing. >> nothing works anymore. >> having said that. so a little bit to what david's talking about, this is a growth scare. let's be collar about what this is. it's not a credit thing. to me this is a growth scare. we saw it in 2011 with effectively the u.s. and the downgrade. we saw it in 2012 with europe. we've seen it a couple of times on the road. what's going to change it? first of all we need to feel the fed is not going to get in the way and i know that's bad news for a lot of people like myself that want them in the game. but that's the other part of this. it gets them out of the picture. that has people more concerned about the market. you talked about the volume. just with kelly. 2011, october 4th was the biggest volume day. this is the second. that was the bottom of the market. i think the analog to 2011 is unbelievably important and interesting because what we're doing now for the next four or five days is i think we're in a period of volatility. remember, the s&p was up 4%, down 4%. up -- after that first trade straight down in august we've got a lot of vol ahead, people. it's not over. >> for those who don't remember 2011, we traded actually higher

off of august and -- >> it was lambs to slaughter in september. you have to be very careful here. >> let's try to find levels if you're playing at home, right? so 1820 back in october, i think it was october 15th, the low that day was 1820. and we had an absolute spike from that level. got us to the levels that we saw in may and then a subsequent move in july when we faded. so i think 1820 is absolutely in the crosshairs. one thing i mentioned about the volatility, the fed's going to step away because of market volatility. in my opinion the market volatility that they created themselves, that's a longer conversation but i think we have ourselves largely to blame. >> i think the fed is in an interesting position because if this is in fact a growth scare what is scarier is that central banks around the world are already easing. so what is there left to do? and now the fed, what? damned if you, do damned if you don't, at this point when it comes to a fed rate hike. >> if you look at commodity prices, this is what pushed the ecb in january with oil at these very levels, pushed them to put their foot on the gas in a way

we've never seen -- well, arguably the fed as well. the fed, this is the whole point. no arrows left in the quiver, as they say. and this is a place where if anything we should be normalizing just for the sake of it. fed comments for the last three weeks, fed's lockhart, the one guy seen as a balanced member of this fed, signals two to three weeks ago that hey, we have to go no matter what. and now that's a little scarier. >> grasso was down on the trading floor in the midst of all this chaos. we broke another key level in the s&p 500 as he outlined on friday. grasso, at this point what are you watching? >> we did break that level. let's just talk about a couple levels. talk about how we got here and where we're going to go from here. guy flagged that level again, the 1820 level. so that's this level right here. that's your level back from october. so where do you come up with these levels? this is where guys draw their marks. 1820, you go up here and you go to 2134. all-time high. guys draw their fibonacci levels from there. guys -- this was the 200-day moving average roughly there. we broke it by 4 1/2%.

so when you do the same velocity of that break, you came up with that number we talked about on friday. we broke that. the key level on friday, 1970. i said if that level didn't hold it was going to be 1920 in short order. you couldn't get to that 1920 level. it didn't stick. so how do you draw your lines? you go from here, the all-time high again, to where we did stop, which is 1867. when you draw these lines, you come up with a couple of retracement levels. not to get too wonky here but you want to look at this level. 19 -- i knew that would happen. so you want to look at the level of -- stay with me. you want to look at the level of 1930 and 1970, let's call it. that's the same level on friday. we were weak. we couldn't make it there. i think we're going to go much lower. this is the level to watch. that's the level to hold. >> all right. so seaburg, i'm just curious. you sea grasso's levels. >> yeah. >> you also agree this looks

like a 2011 scenario. but you're bullish on the market. do you say hold off or -- >> the moves that we've had, we've talked about this in the past, it's been very concentrated in certain names, right? i still believe that there are names that are going to -- people are going to gravitate to and should gravitate to and you should get your shopping list out and take advantage of this pullback in those specific names. the names that you've been watching, the names that you have conviction in, you absolutely use this pullback as a buying opportunity. were there certain names totally overexaggerated to the up side? absolutely. and they've -- >> like a disney? >> let's talk about disney. it's a name i'm long and i like. but i'm not sure, folks, as good as disney is as a company and the environment, this is a company that was trading 25% to 30% expensive to itself and relative to the s&p and then as the s&p went higher in valuation disney trades higher and that's justifiable. in this environment you ask yourself is that the same market i was in yesterday, and today it's probably not. so what's the right level? disney, nothing has changed on

disney's fundamentals. remember that. i don't think anyone is saying the world changes for a lot of these companies but you have to look at the valuations, they are changing with the market. >> programming note be sure to tune in to cnbc's special report "markets in turmoil." that's continuity 7:00 p.m. eastern time. much more live coverage on this historic day. that again is tonight, 7:00 p.m. eastern time. up next, did this morning's gut-wrenching sell-off show that the markets are just as vulnerable as they were five years ago? mark cuban has just phoned in. he's ready to sound off. plus the man who called for a recession is back and this time around eyes got a much scarier prediction that could spell disaster for stocks. and later shanghai's index wiping out this year's gains. we'll go to asia to see how markets are shaping up there and what it means for our markets here in the united states. as we head to break here's a look at what the dow heat map shows on this day, a sea of red. every stock on the dow closing in negative territory. much more "fast money" straight ahead. can a business have a mind?

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bob pisani down here on the floor of the new york stock exchange. let's take a look at the futures. and bottom line here is just a very small move since the close here. now, remember, the futures are going to close at 6:00 p.m. but just down a little bit from the close, maybe two or three points. a lot of people wondered did the machines take over today? i didn't see a lot of panicked machines. i saw a lot of panicked buyers and sellers. sellers right at the open trying to get out virtually any price. and a quick turnaround at 9:35 of people trying to get in virtually any price. there were two problems i did see, though. number one, at the open a rolling open as a lot of people had trouble opening the stocks in the 9:30, 9:31 time frame. some of the big names weren't even open at 9:35. so we had sort of a rolling open. the other thing was that there were people worried because we had such notable drops. some stocks were down 10% at the open. we had people worried that maybe they were erroneous or strange and they might get busted. i haven't seen any of those that actually happened. nothing did that i'm aware of. or at least nothing major.

but that caused i think a little bit of concern at the open as well. melissa, a very weird, very strange open with panicked selling in the first five minutes and then panicked buying in the 15 minutes after that. >> bob, thank you. bob pisani, on the floor of the new york stock exchange. for more on the potential role of machines in today's massive plunge and what he's doing amidst the sell-off we're joined by mark cuban the billionaire investor and "fast money" friends. he joins us on the "fast" line. great to have you phone in. before we get you to talk about what you did in the marketplace, our own eamon javers talked to -- and he was under the impression that the open looked sort of flash crashy to him. i'm just wondering what your take is on that weird 1,000-point drop that we saw initially on the day. >> it wasn't a whole lot of regional investors rushing to call their brokers, that's for sure. right? obviously something happened. the one thing about selling, whether it's an individual investor or fund trade or whatever it is, they rush to

buy, they rush to sell. and when you rush to sell that's an hfp algorithmic trader's dream because don't look to hide it from them. they step in front of you so fast it will make your head spin. part two of that, no one else that trades can move the market hundreds of points in hundreds of seconds in either way. and what we saw today, it was like a three stooges market. yeah, yeah, woo, woo, woo, people going back and forth no, one really knowing. that doesn't happen from normal traders. that doesn't happen from funds taking positions or selling positions. that happens because algorithms watch everything that's happening and everything that's correlated to what's happening in equities and they take action. it will take five years and it will be some i go in london of course that started all of it. but it certainly wasn't just from traditional buying and selling. >> there's an expression selling begets selling, and i wonder if you think this is going to contribute to more selling just

simply because a lot of investors out there are losing confidence. when you see a market that opens down 1,000 points and swings wildly in the session, it's a market you that don't necessarily want to get into at this point. >> it's worse than that. because most people go about their daily lives, they have their 401(k), they really don't look at the stock quotes anymore. back in the day when everybody read the newspaper and they all had stock quotes and you saw it in the business section, that was it, those days are long gone. the only time you see something about the stock market is when something really bad happens. so tomorrow morning when potential retail investors wake up, they're going to see and read all the things on the front page of their new york or the front page of their headlines, whatever they consume, that's all they're going to know about the stock market. it's not just about tomorrow and what trading's going to bring for retail investors, it will impact them. it's for the next five years that people add the flash crash and everything else that's gone on to this big swing that nobody

else understood. because there's no explanation for everybody's guessing and reaching for strauds, you might as well just count the retail investor out except for the anecdotal exam plds. >> mark, i think you have a good understanding as to where the economy is from where you sit. and high frequency, take that out of the equation. what's your view on the economy? does what's going on in the bond market, currency markets, overseas markets, is that affecting you in any way? is that a harbinger of things to happen here at home? >> well two, sides to that. one, in terms of local economies, no. back in 2008 we had people ask for refunds on mavs season tickets. we saw immediate slowdowns in other businesses. leading into today, we haven't seen any of that. in fact, our business has been pretty good across the board. and all my shark tank companies are continuing to do well. that has not been an issue. where you start to see it obviously is with the multinationals because they've been taught and they followed through and seen growth and the

markets have rewarded growth for global expansion. they're dealing with china, dealing with emerging markets, and that's not going to be fixed anytime soon. that's not on the fed. it cracks me up when everybody tries to blame the fed on all this. maybe easy money should have been -- we should have raised rates a little bit sooner. but that's not what this is about. i think china's in a really difficult position. they're trying to control their markets, which we know is impossible. and they've never been through -- >> apparently we've lost mark cuban. hopefully we'll get him back. in the meantime we know he's hanging on to dividend-paying stocks and netflix. if we get him back we'll ask him a little bit more about that. in terms of his stance in scaring the retail investor, it is scary to see these past three days. >> they're very scary. and netflix is a great example of a stock that if you tried to trade this thing intraday you got your manned ripped off. we traded down 2084:00 up to

109. mark's back. >> mark's back. let's ask him about netflix. mark, the last time -- sorry for that int rupths. the last time we spoke face to face was in las vegas. that was about a year ago. and you liked netflix. you're still hanging on. did you add to your position with this pullback at all? >> no, i didn't add to my position. but i've kept every share from back then. it was the equivalent of 50 post split back in september when we talked. now it's 97 or whatever. i'm still a happy camper. you know, i think it's the market leader, it's driving the whole content industry. so i have no problems of holding this for the long, long term. i don't know what level it will take for me to buy more but there is a point. and then i added to facebook because i think facebook's in a similar situation. it's driving the ad economy. it's driving content consumption in so many different ways. they're doing a lot of things right. so i think they're, along with google, they're the dominant force. i added some yesterday i think

at 87 and then i sold puts today trying to take advantage of the volatility when the vix was around 47. so i actually got higher. i got paid more than i expected to get paid on those puts. >> nice "fast money" trade, mark. always great to have you phone in. thank you. >> you got it, guys. i appreciate it. >> mark cuban, billionaire investor. head of the mavs. "shark tank" investor. you name it. >> there's two things he said i thought were really interesting. one he's looking at great companies and companies that in a thematic way facebook, the digital ad space we've been talking about, very good. he's also saying smaller companies that he has funded. no change in the backdrop there. which i would totally agree. the one thing we have to start thinking about is when will the funding market change? when will the venture capital markets change? if real money and look at the dollars change, that's something to watch, but obviously very important to hear an entrepreneur like mark talking about that. >> would you buy facebook? >> facebook i don't think the story's changed. obviously the market has changed but the story hasn't changed.

back out the 85 print as we can back out a lot of prints with a lot of stocks today. stock closed around $97 as mark pointed out. you have this spike from $60 or so in mid may up to 130. the move down today is a textbook 50% correction. and you did it on extraordinary volume. it's all about levels, right? granted it's moved now 30% to the down side in short order. but if you have been waiting for netflix specifically, to me, me, against 95 this is as good as it gets. >> still ahead, countdown to the open in asia. will the selling be even more intense than today? and what it might mean for markets here. we'll take you live to singapore. you're watching cnbc, first in business worldwide. in the meantime here's what else is coming up on "fast." >> the man who called for a recession is back. and he's got an even graver prediction. that could signal this is just the beginning of a much bigger move lower for the market.

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at the margin the u.s. looks like it is slowing down as well. and potentially with the patch being so lackluster there's a chance i mentioned before on the show that there's a probability that the u.s. goes into recession next year alone. >> the s&p 500 is down 9% since raoul pal of the global macro investor predicted a u.s. recession back in march while the extreme volatility in global markets has caught some off guard pal has been sounding the alarm right here on "fast money" for months saying a stronger dollar, cheap oil, china weakness, all threats to the u.s. economy and stocks. raoul pal joins us now on the "fast" line. raoul, always great to speak with you. >> hi, melissa. >> we have seen a tremendous market slide in just the past three days. a market's equities are often seen as predictors, they lead the economy. i'm wondering if you think this slide is predicting a u.s. recession you've been predicting. >> no, i think that's still an early call. i think when you see the data obviously world growth has slowed somewhat, quite significantly. u.s. growth has slowed a lot. i think the atlanta fed is now showing kind of a 1.3% gdp

tracking. i think what we'd knee to see to see this acceleration to the down side would be an actual recession. we usually get a high probability of a 20% or so correction. so i think we need a bit more evidence for the time being but i do think it's coming. >> what happens in your view if the fed raises rates in september? larry summers penned this really interesting op-ed in the f.t. saying that raising rates sooner will basically undermine the fed's three objectives and that would be price stability, full employment and financial stability. what's your take? >> look, i think it's extremely difficult for them to raise rates with any justifiable reason. inflation is imploding. i think we're seeing negative inflation again pretty soon, deflation. i think employment is not as good as people expected. and the fed, we're talking about the employment cost index. and that essentially vaporized last month. so i think it's very difficult for them to justify raising rates here. it's too late, i think. >> hey, raoul.

it's tim. how about the reflexive nature of the way markets work and the imoctober on the economy? you talked about the dollar and you think the dollar is an impediment. over 100 on the dixie. and a lot of people had the dollar by 1.10 at the end of the year. we're going to he is it the 90 level somewhere where we started the year. does this take the pressure off your recession scenario and at what 30i7b9 is the u.s., which is still the largest economy in the world and arguably the largest ex-porter after germany, in a much better position to counteract some of these forces you're talking about? >> yeah, i think that's an interesting point. firstly, the dollar bull market is intact against almost every other currency except the ones in the dxy, which is basically the euro, the yen, and sterling. so it's not really clear using that, is this corrective price action in the dxy? yeah, quite possible. considering the number of currencies that are falling against the dollar right now. >> raoul, how does this play out? i'm wondering because we're

seeing the ripple effects now more and more. more and more people are paying attention to the impact of china. we've seen it in the equity markets and the currency markets. is the next shoe to drop in the e.m. bond market which is by the way you bigger than the u.s. high yield market. >> yeah, absolutely right. i think there's a risk that there is going to be capsule flight from that. if you remember, the thing that i'm concerned about is the $9.5 trillion global carry trade and a very large part of that is involved in emerging market bonds. if there is capsule flight you saw it definitely overnight in asia and in europe. the chances are that's going to involve some problems. >> thank you for phoning in. always great to get your voice on a day like this. raoul pal of global macro investor. >> pretty interesting day in the bond market. if you'd asked me the s&p's going to be down 70 handles or whatever, 100 at one point, what

is going to happen at tnt, i would have categorically said it will be up three or four handles. and it closed lower on the day. it was significantly lower at one point when the market was rallying. i'll give it a pass for one day because i think rates are going lower. but i think tlt could be a great barometer going forward if we are putting in a bottom. >> if you look at the recession risks we talked about this, if the fed moves right here we don't have a buffer between the ten-year and the funds rate. we've usually had 350 i bah basis points. we have at least half of that. look for these down quarters in the dow industrials to signal a much bigger sell-off. the last two times we had it we were off 37% and 50%. >> for me it's all about sentiment right now and i think the news we've seen out of china is possibly going to scare some u.s. investors to slow down or curb their spending habits. that worries me a little bit. that's my biggest concern, is a sentiment shift that could have in the u.s. that curbs the spending people take part in. i look at that and say that is a risk and that's something to be very much aware of.

>> you think europe can help the global economy out? >> look at german pmis last week. they were stronger. better labor force participation. i would also say back tome engineering markets, what's different this time is the macro, the sovereigns are not that debt indeded. they're the ones who feasted on glar debt. the sovereigns are not imploding the way people think they are even though currencies are acting like they are. >> but it's the corporate debt which everyone piled into. >> the corporate debt's a problem but if you look at high yield and that exposure, yes. equity markets are starting to value price to book very interesting in e.f. coming up what today's losses and market volatility means for the fed and whether or not yellen will come to the rescue. later there were five dow stocks that rallied 20% off their lows in today's volatile trade. and the names might surprise you. much more "fast" right after this.

welcome back to "fast money." a wild day on wall street. take a look at this time lapse of the monumental drop in the dow this morning. sinking more than 1,000 points in the first few minutes of trading down 5.6% at the lows. the market spending the rest of the day making unprecedented moves, posting a major 900-point comeback before sliding back further into the red. the dow traveled 3,000 points in

the first 90 minutes of trading, an overall move 4900 points during the session. the s&p and nasdaq down in correction move all down more than 10% for their most recent 52-week highs and the carnage doesn't stop there. crude oil ending the day lower, settling down at 38 bucks a barrel its lowest level since february 2009. while all this recent market vol kilt can be traced back to china. will we see another big drop overnight? adam bakhtiar is in singapore with the singapore exchange. how are we setting up? >> definitely not good, melissa. it's too early to give you a read in terms of the futures markets. we don't have numbers. to gauge how the major equities are going going to trade out here in asia. but i can tell you given the climactic sell-off we saw in the global markets including yours in the united states and also europe put together with a rout in commodities that's already going to affect some of the big commodity-centric markets in the

region. new zealand would be the first to open up for trade. it ended down 2 1/2%. australia of course is going to feel quite a lot of pain just because the market capitalization is made up of so many big global miners. so it's very likely that spy futures in about an hour's time will tell us we will have big declines in the australian market. here in australia look at what hatched to the straits times index, bordering on bear market territory. given the huge fall we saw in yesterday's markets. tokyo will be the biggest market to get off to trade. first this morning and already the futures number in tokyo showing that we could potentially have another 390-point dive in the nikkei 225, which will bring it down to the lowest levels. already trading at 6-month lows. that would get together with the fact the yen has ib creased by 219 pips versus the u.s. dollar. it's going to put global cyclical stocks under tremendous pressure. and remember the financials because guess what they gorge on jgb, government debt also a lot

of cross-share holdings among some of their customers and they wrt hardest hit yesterday we're going to keep a cleese eye on that. in the meantime the root of this sell-off in asia all had to do with china and just take a look at the panicked selling we saw ensue in the domestic markets yesterday. just to give you some stats, only 16 stocks listed on the shanghai composite and the shenzhen ended in positive territory. 80% of the stocks within thain detection ended down by the daily limit, which is about 10-plus percent. and the scores look absolutely ugly of course across in hong kong where we saw a 1,000-point decline. the h-shares, this index is down almost 20% year to date. but i can tell you with these declines yesterday in shanghai, melissa the market is already firmly in bear market territory. it's not looking good today. >> adam, thank you. adam bakhtiar. joining us from singapore, tim it also feels like we are waiting for the chinese zboft to do something, to rescue that stock market so our markets can trade higher. >> i think the asian markets are

following the ghost of the renminbi or yuan deval in 1994 and the impact that led to in 1997. what can they do to counter that? things are so different this time i think people need to relax a little bit i think they have more policy options much more sophisticated money market there's much more depth to these markets but you're stemming a tide of momentum that's been going. there's been a panic since mid-june when these markets peaked. so you're in a place where there's no confidence at home there's no confidence around the world they can fix their markets and we need more policy. they have to cut. and again, aft last night they should have done more on the fix to make it look like they weren't devalling again. they hay policy announcement a couple days after they devalled last week, or ten days ago. we're going to get something again. >> it feels like, though, so many people have been discounting china's impact on the u.s. markets for so long. when we first initially saw the shanghai composite slide mid june or so, people were saying you know what, it doesn't matter because the economy is slowing, it's so strong, et cetera. and now finally china is up there. when you say the markets are

selling off. china is one of the top three reasons why. what's different? >> china's economy has not changed in the last three weeks. china's economy has been falling for three years. >> i separate this. i look at the chinese stock market versus the chinese economy and the impacts on the u.s. stock market. and i look at that and say very clearly some data points have come out that have scared a few people from a multinational perspective in their investments in that. it's absolutely taken the air out of the tires when it's come to our market. but i look at the names that we talked about that are the high-quality names that get discloekted in times like this. you have to step in and buy them. >> like what? >> like we talked about, netflix. we talked about twitter -- i mean not twitter, facebook. and i also look back on other areas like the biotechnology stocks that really led us over the past five years. there were some names like celgene you should be -- >> i thought you were going to give me china-related names. >> oh, china-related no. >> that was the topic. the s&p 500 down 10% fritz

recent highs. this is sth the beginning of a major sell-off or will the fed come to a rescue? all the details next. plus a breakdown of some of the biggest comeback stocks of the day. much more "fast money" straight ahead. isn't it beautiful when things just come together? build a beautiful website with squarespace.

welcome back to "fast money." i'm meg terrill. check out this one name going way up in a sea of red after hours. that is acorda. a big court decision coming down from the patent office just now not to accept two challenges underlying the patents of its big multiple sclerosis drug. the stock now trading up 28% after hours after the patent office decided not to institute two patent challenges by hedge fund heyman capital, that's kyle mass's hedge fund. acorda up 20%. back over to you. >> setback for kyle bass. >> it held 28 in may, held 28 today. if you look at this stock it didn't go down much today. so maybe somebody knew something. down about 3%. in today's date down 3% for these names is not a big deal. i don't think you fade it here. i think there's going to be a short covering rally. you have to tape holds like david and tim thinks it's going to hold and this thing could absolutely print 40 bucks over the next few days. >> talk about an area of the market where the fundamentals haven't necessarily changed. the stories haven't changed. the catalysts, the fda approval

timelines. they have not changed. but the valuations have changed tremendously. >> oh, no question. they backed up a lot. all the dedicated -- the investors that are looking at these biotech names specifically, all were on the sidelines today picking their spots as far as levels to buy a lot of these names. they're buying the high-quality names. all the names that we've talked about on this show before. the celgenes of the world, the biogens of the world. the gileads of the world. they're finding themselves they like and stepping in and buying them. >> u.s. dollar weakening across other major world currencies and speculation the global market turmoil may push back a u.s. interest rate rise. cnbc's senior economics reporter steve liesman has more on whether the fed will come to the market's rescue yet again. i guess rescue is in the eye of the beholder. >> atlanta fed president dennis lockhart he's a centrist whose comments in early august helped solidify market expectations for a september rate hike but he looks to be balking off that call. in a speech in berkeley a couple hours abow lockhart said he

expects a rate hike "sometime this year." but he did not repeat the comments he made twice earlier this month that he was looking for a september hike. he also said when rates rise they will be gradual, not in quarter-point steps. the inflation forecast right now is tricky. the stronger dollar, the weaker yuan and lower growth complicate it. barclays making one of the more dramatic calls, pushing its expectation for the rate hike from september to march 2016. it stems from the fed fears of destabilizing the markets, tighter financial conditions and lower inflation than what the fed wants to see. john silvio of wells fargo says they're considering a similar move from december to september of 2016. melissa, you're exactly right, it's in the eye of the beholder. one way the fed can ease with tightening baked into the market when they back off that tightening it's an effective ease, melissa. >> damned if you, do damned if you don't, right?

>> but is it bakes in, steve? look where the dollar is now and ten-year yields effectively at 2. you really don't have -- we have to watch the short end of the curve. a bull steepening is really what's next i guess. >> put up the ten-year. there we go. there's the dollar. but puppet the ten-year or the two-year, tim, and my snags su get an effective ease by the backing off of those rates. you also get a little bit more inflation and maybe some help to the -- there's the two-year. that mark going over 70 was a clear sign the market was baking in a hike on the short end. there's the ten-year now. it was up all the way 224, 225. so you really for symmetry purposes had almost a quarter point baked out. that's an effective ease. >> steve, real quick, have the extraordinary measures of our fed over the last few years, and i'm not commenting on whether i think they're right or wrong, but do you think they've emboldened other central banks to act in kind and maybe they're not in the same position to act as such? >> so if you're asking me has the apparent success of

quantitative easing emboldened other banks to do the same, the answer is yes. bernanke rewrote the book on quantitative easing, rewrote the book. that became essentially the playbook of draghi, who came forward with his whatever it takes mantra, who came forward and said we're doing this qe until september 2016 at least or until we get it right. so yes, you're absolutely right. that has changed the playbook. probably forever. for how central banks respond at zero. >> steve, going to leave it there. thank you. >> thank you. >> steve liesman. for more on the fed's looming rate hike dennis gartman is the editor of the gartman letter. he joins us now. dennis, you think that the fed is not going to raise until next year. >> i don't think the fed has any choice but not to raise until next year. i think the fed made a very serious mistake several years ago when they didn't take rates higher then. they had an opportunity to do so. they didn't. if you move rates higher now it would be an even more egregious

mavg on their part. i think it would be at least until the middle of next year and now, given the chaos that has erupted in the global capital markets. september the odds of a rate cut in september 1 in 1,000. in december 1 in 100. in march of next year 1 in 50. and it doesn't move up much beyond that after that. they have no choice but to sit tight and leave rates where they are, and they have to come in and do something to ease monetary policy. they need to expand the monetary base. and they need to do something to wre weaken the u.s. dollar. >> steve did a roundup of wall street economists and what their view is on this. a lot of them had mentioned the fact that market turmoil could have an impact on the consumer. are you concerned the fed if it doesn't raise rates until next year it doesn't have anything to do if the economy turns worse? >> i think after what's happened today and on friday on the stock markets i think the consumer's propensity to go out and buy a new car or buy a new automobile

or buy a new suit had been greatly reduced. and i think the consumer pays attention to what goes into stock prices. so i think that's going to way heavily over the course of the next several months. i think the fed understands that. at least i hope the fed understands that. so i think they can't do anything other than -- they can only err toward the side of aggressive ease from here on out or if they do err on the side of tightening it will be a very, very serious mistake. >> just quickly, you came in friday and told us you turned bullish on oil. was that too early given the price action of where wti ended today are you reevaluating that position? >> i was not expecting to see 500 points on the dow or 1,000 points off the opening. overnight you took the ole market down very harply. i had no choice but to say i'm wrong being long of the oil market. it was a clear mistake, a bad timing decision on my part. you have to go to the sidelines. and as i said in my newsletter this morning, no matter what

positions you have on you have to make them smaller. that was one position to be made smaller. no ifs, ands or buts when i make a mistake it's very public and i admit it. >> dennis, great to see you. >> thanks, mel. >> dennis gartman of the gartman letter. >> terrible damage has been done to the crude markets. terrible damage has been done to the technicals on the s&p. you need a couple of days to heal this type of damage. so i would look for much lower prices in crude, much lower prices in the s&p before anyone jumps back in, and quite frankly the fed cannot raise period. they might do a quarter point for window dressing. they're going four this into an inverted yield curve. there's no reason to buy banks without the yield curve steepening and no reason to buy stocks if you think an inverted yield curve is coming. >> so does this mean that when the september roll comes around and the fed doesn't raise interest rates then the markets won't freak out? because a week ago you were say

the markets would freak out if they didn't raise rates because that means things are really terrible. >> what worries me about this trade, what you just said, is there's a lot of things that have already been punished along the road in anticipation of something that's not happening. so again, commodities and e.m. are the ultimate place you've seen these things absolutely destroyed on the expectation -- meanwhile the dollar's going to go back to 9 0rks 93 and change maybe it's not 90, i think it will. this is an environment where you should see commodities rallying. they are not rallying, i think you get to a place where it becomes oversold. >> and talk about a trade that's been destroyed. look at financials. financials, right? have been punished because now the steepening yield curve doesn't look like it's going to be steepening. >> steve just pointed that out. one of the names we were right for for a long time, have been rock for quite some time, has been blackstone. you wonder, couple things that happened now, and i don't know if any of these mean anything but their cfo left to go be the cfo of air bnb, very interesting move at what seems to be the high of blackstone. that real estate holdings, maybe they're in question and maybe there's some energy exposure

there that we haven't talked about. >> interesting. still ahead, a wild ride for stocks. which five names lost and gained billions of dollars in today's session? plus the fear index soaring to levels not seen since the financial crisis. you're watching cnbc, first in bid worldwide. much more "fast money" straight ahead. mornings. wonderful, crazy mornings.

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welcome back to "fast." with the market's big reversal came a number of stunning intraday moves in some of the biggest names. let's go to dom chu for all the details. dom. >> so melissa, guys, if you think about what's happening with the market and these moves you think about small cap stocks maybe swinging huge intraday, but check out these dow components because in the first few minutes of trading we saw some of america's biggest blue chip companies take huge stumbles. take a look at ge, first of all. those shares, again, down by around 20-plus percent in just the first moments of trading, only to rebound. they were still down on the day but still a 20% plus move from the lows to the highs. take a look also at another blue chip stock in the dow jones industrial average. you go perhaps even to a home depot. those shares you can see as well up by nearly around 20% from its intraday lows to where it finally closed. again, still red. jpmorgan, same story there as well. and then we want to highlight a couple of the other ones here.

because they also had huge moves and they're not ones that typically have that. we're talking about names like merck, a pharma giant, also 18% from its intraday lows to where it ended up closing. and then what happened with large cap telecom and verizon shares also making an 18% move from their intraday lows just moments after the opening bell to where they ultimately closed. again, very interesting to see that five large cap stocks in the dow traded by that kind of a trading range on a day like today. back over to you guys. >> thank you, dom chu. we haven't talked so far on the show about apple at all. >> oh, my goodness. not a good day on "fast money." >> it also had a huge intraday swing on the dow as well. >> and to me some of this price action is the kind of stuff that makes apple a lot more interesting to buy now that we've looking through a lot of the insanity. this also comes on yesterday we're hearing that smartphone sales in china fell for the first time ever. around 100 on apple. very important support. it got back above that. i'm not saying you have to buy it tomorrow. if you're talking about facebook

and fundamentals you have to be talking about apple and valuation at 100. >> just quickly on app pl. >> apple yofr sold on rsi. definitely a buy. >> vix hitting a 6 1/2-year high this morning closing at the high level since 2011. brian sutland's in chicago. he trades the vix. he's got the options action. >> yeah, melissa, there were only 69 trading days where we've seen the vix above 50 and those days were all in '08, '09, the credit crisis. so to see it hit 50 today that was quite a bit of capitulation in my opinion and we'll see how that moves going forward here but unless you think there's credit systemic risk like '08 and '09 today it seems a little testy here. when we hit the lows earlier today that seemed like big capitulation, maybe that was an opportunity to buy. if we retest those lows this morning somehow later tomorrow or over the next week maybe look to be a buyer here because a lot

of pure panic a lot of people just paying insurance on whatever to get out of this market, melissa. >> brian, thanks for that. when you pair the vix, the action of the vix that brian was pointing out with the heavy volume that we saw, the highest volume since october of 2011, do you think that maybe at least for now this could be some sort of a short-term capitulation? >> i'd rather trade 1820 and bounce. didn't happen today. but with that said, we're within a couple percent either way. >> all right. more "options action" check out the full show. that happens on fridays. up next the traders will tell you what they're watching ahead of tomorrow's open in what could be another very volatile trading day. more "fast money" straight ahead. jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this. i'd like to put in you're quitting!?. technically retiring, sir.

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a historic day for the market that probably has you wondering what you should be doing with your money right now. i have you covered from the possible down side to the stocks that may belong on your shopping list. and a technical take on the vix. "mad money" is next! you'll definitely want to stick around after "mad money." 7:00 p.m. tonight. a special report. markets in turmoil. for much more on today's stunning market action. again today 7:00 p.m. eastern. time for the final trade. let's go around the horn. tim seymour. >> i mentioned the analog to 2011, august is there. i think we're going to bounce and i think september's going to be dangerous. watch the dollar. the dollar's going to give you a lot of clues about where the funding trade and the carry trades are. the dollar's very important. >> david seaburg. >> i'm going to watch the opening tomorrow. i want to see how u.s. stocks perform right out of the gates. i think if we go higher no matter what happens overseas it will feed on itself and we continue to trend upward. >> 386. >> i've been negative on the marketplace and if you look at that 1867 level i pointed out in the beginning of the show that's the one that has to hold.

but the market is oversold. that's the only shining spot for bulls. >> guy adami. >> mark cuban talked about netflix. $95 is your line in the sand. thanks for calling, in mark. >> i'm melissa lee. thanks for watching. see you tomorrow again for more "fast." "mad money" begins right now. >> my mission is simple, to make you money. i'm here to level the playingfield for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now. >> hey, i'm cramer. welcome to "mad money" welcome to cramerica. other people want to make friends. i'm trying to save you some money. my job is to educate, teach and tell you how to handle markets like this. call me or tweet me @jimcramer. never confuse the day-to-day action in the stock market with the state of the