variety of investment firms. they haven't confirmed those outages like t.rowe has. dow jones reported that customers were unable to log into their vanguard accounts so obviously a byproduct of some of the selling that we're seeing today. back over to you >> thank you, lessee we're done here on closing bell but we're not done today there's a special tonight on today's market turmoil there you have it. 7:00 p.m. eastern. stay tuned "fast money" begins right now. today was one of the most incredible days in stock market history and a very bad day for most investors we lost a lot of value the dow posting its biggest point drop in history. at one point the dow was down nearly 1600 points and entering a correction it came back a bit but it still ended the day down 1175 points

the dow now negative for the year and combined with friday investors have seen $1.5 trillion in market value wiped out. wall street's so called fear gauge, the vix, hitting its highest level in nearly 2 1/2 years. welcome. tonight, the question is quite simple has something changed about this record bull run or is this a buy and dip market or, guy adami, something more severe and more dangerous at work here >> for me to say nothing has changed would be disingenuous. we quite frankly don't see 1600 point moves in the dow jones industrial average every day clearly something has changed. historically, the last seven or eight years, the market opened down, rallied back to unchanged. last six months that rally would have continued and extended higher, would have closed higher obviously you didn't see that today. that is a fundamental change what also changed, something that they've been talking about

for quite some time. the level of complacency has hit levels we haven't seen in the past two decades that's changed ask yourself at home, have you been coerced or do you believe that the market can only go up in perpetuity? a lot of people believe that. >> they did. >> when i ask what concerns you, people don't have concerns that in and of itself -- >> okay. >> -- let's put this into perspective, okay, because not only have we never seen this before, but the intraday drop of nearly 1600 points was not only the intraday drop but it was the biggest intraday drop by 500 points it fell 800 points in 20 minutes. is this a broken stock market? >> well, as we saw, i think we have seen this before. if you layer in what's been going on in the asset classes and put them on and crypto and what's been going on in cannabis and far flung places in the world, you can tell that things have gotten extremely frothy

you bring up the moves in some sense, right, we've never been here before 383 s&p points from the high of friday -- monday morning -- friday when we opened up to where we got on the interday, 311, when some weird stuff happened and the markets bottomed think of the s&p bottomed at 666 for the entire index and we've lost 383 s&p points in a day and a half this is dramatic i agree with guy i think sentiment is not fragile enough here to even psy that it's close to being a place where investors should say, boy, this is that buying opportunity i want >> i kind of think it's close to the buying opportunity i want. i mean, i think tomorrow would not be the least bit surprised to see it trade down a lot on the heels of the rest of the world trading down overnight that could absolutely happen if it does, and we see things getting sold in integers, when things are trading in integers, that's indiscriminate selling, that's an opportunity to buy i know what i want to buy.

i would like to buy some intel i would like to buy some google. i have had -- i'm always long bias today lose a lot of money but i always hone on some amount of market put sold half of those today i'll probably sell the rest tomorrow morning. >> we'll get more ideas as the show goes on i love the optimism. steve, i want to go back to this idea about what happened because around tables tonight at dinner there are going to be people who say we went down from down 800 to down 1600 literally in 20 minutes. i understand the numbers have gotten bigger, so bigger numbers beget, i get all that, however, there's talk about this goldman sachs memo that went around. however, how did we lose 800 points in 20 minutes >> so this is an electronic market with human beings as participants within that overall -- >> felt more like we were passengers today. >> sure. you're going to get those flash crass moments. >> was that today? that's what jim cramer called

it. >> we had a flash crash moment today where people are looking at mocs, market on closed orders, trying to get in there and sell stock on the market and they reassessed the wrong way. they put in way too much liquidity at a certain point during the day and it is we call it a fat finger in the business. you hit the sell button. you don't put in a price and it researches it way down. >> this is important. >> let me give you an example. >> i don't want to be in the weeds. >> down $20 in a matter of seconds. >> the hottest stock in the dow. >> nobody sells boeing down $20 in a click in a matter of seconds. >> no human. no human. >> no human being does that and means to do it that did not happen -- >> although it was an 8% move that's moved 50% since june. >> no one is going to put that number >> the stock gets sold down 30, 40% and people got taken out who possibly either had a sell or a buy order. >> hold on >> that has to be what i think -- again, i'm going to ask dumb questions you can say it's a dumb

question, good one, whatever there are a lot of people who are not normal "fast money" viewers. they see the dow down, what happened to the dow, let's tune in to cnbc you could have sold boeing not at an 8% drop is what you're saying. >> right. >> somebody was screwed up or screwed with the pricing mechanism. >> i've been in the marketplace since 1993 this marketplace has seen all sorts of markets you do not put in an electronic market exchange right now and just hit a button and press sell you don't do it. nobody around this desk does it. you can't do it because you wind up selling boeing down $20 you have to put in limited orders when you do something like this, something was wrong. >> but when you guys say flash crash -- >> microcosm not a huge amount of liquidity so i agree with you, when you say flash crash, it means -- >> it went down from 38 to 110. >> that implies somebody or that the system has broken down i think the system is filled with a ton of passive traders, a ton of algos and ultimately you

get to the place where the machines chase the market down until they don't. >> so someone makes that sale or buys the stock immediately and then the algos chase that move so that's why you saw boeing and a whole bunch of other stocks sell down at the point, the markets sell down 600 points like that. >> but i think in the world that we've been in over the last year and a half where you have a lot of funds that are invested in etfs and have been short volatility on a day like today, that's dynamic people were short volatility people were selling puts sorry, people were selling calls to buy stocks cheaper. they got run over by a steamroller. that's what we call -- >> that action -- >> let's go to boeing. >> that action that we saw today creates this sell side imbalance. >> it's a good conversation. guy, it's a good conversation. we were there -- guy hosted "power lunch" with us today. we watched it unfold come out of the weeds a little bit because here's the thing,

guy. we're getting a lot of viewers writing in saying, come on, sullivan, it's a percentage drop it was the 33rd biggest percentage drop of all time. not the biggest. 33rd is not nothing. i think, guy adami, what worried us on the set, what worries maybe the viewers is the extreme rapidity of the -- we were losing 100 points at a -- a minute i have never seen that. >> that's interesting. >> i've never seen the percentage move that quickly >> no. to steve's point and tim's point, i would -- i would be much happier if the market sold down to 317. close weebly it's accelerated or a move that probably shouldn't have happened i don't think anything recovered all that much and quite frankly if the market were still open now, we would probably be revisiting it as it were. >> whatever they were. >> we're going to get to more of this in a second

the nikkei futures in japan are down 8% right now. let's bring in ubs strategist steve parker what happened today? in plain english. >> in plain english? >> don't say stocks fell >> stocks fell a lot >> thanks for coming you heard our discussion. >> yes. >> the market mechanism, what happened >> when you have a market where end investor liquidity is tremendous after so many years of quantitative easing but trading liquidity has shrunk, active managers don't trade as much, so when you get buying and selling of etfs, you're still buying or selling 500 or 200 stocks i think what we're seeing in markets today is a reflection of that demand for investor liquidity where market liquidity is not there. >> how do we lose 800 points in ten minutes. >> in terms of the dow >> yeah. >> i think you have investors that are watching the tape and fundamental investors that i spoke to today that are seeing,

you know, i still see value opening up, we'll see where markets shake out before, you know, we get involved. >> of course the biggest market percentage decline of all time was in october of 1987, we understand that. the market in '87 ended higher a lot of people don't realize that '87 was actually an up year despite a 22% haircut on one day. that makes the day look relatively small that said, do you expect the same action to happen? what's going on is now but we will ultimately go higher from here >> further consolidation a side as we touch on potential selling pressure tomorrow. at the end of the day the s&p 500 multiple has gone to 18 1/2 times to below 17 below the lows we saw in 2017 we still have the positive back drop of the tax benefit, better growth non-manufacturing ism printed 59, so we're not in that, you know, negative data back drop

that would -- >> all the data is good. >> the data in '87 wasn't falling off the cliff either >> right. >> i think calling this '87 right now is -- i think we're in a very different place the positioning in this marketplace a week ago friday was off the charts, okay i wasn't calling it '87. i was suggesting you can have a big dramatic drop and be fine for the year there are inner workings that occur that are not representative of maybe the bigger picture. >> inherent in that is you need to work off some steam in markets that were overheated to the up side. ultimately this is kind of the point. the fundamentals that may have changed, think about it. all that could have been fundamentally different last week was the fed and payrolls which impact the fed so ultimately have you guys at the house made a difference in your fed call in the last week >> we moved it up one -- in the last week, no. i think we had moved up our fed call, but just touching on that 1987 point, if you look at the

relative earnings yields versus the relative bond yield, equities were screaming expensive then i don't think you have that same argument that you do today. >> what are you looking for from the fed this year? >> so our call is three fed hikes with potentially risk of a fourth should inflation and growth come in higher than we expect. >> keith, when you look at -- you mentioned the tax policy and tax cuts so when i look at the s&p, 350 companies have not upgraded their eps guidance on the back of what tax policy will do, what that tailwind will be. could it be that the market is missing how beneficial this tax policy is really going to be for the s&p 500? >> i think you're there. you're probably 50, 60% pricing that in. where it bottoms up, expert expectations are there further upgrades and positive earnings are in the market 2800, we saw that act fully

priced. >> keith parker, thank you for joining us very dramatic day. we appreciate your insights. all right, guys. score on the table here. did you buy anything today >> well, selling puts under the spdr is the same as buying the market i was really just selling volatility index, which is a fear index it just exploded as guy said at the top of the show. to me, this is why you own puts. you own puts and buy them at volatility, 11, 12 like steve's been talking about for months because when you have a day like this, that's the day -- >> just because today is a little bit odd, we may have some new viewers to cnbc and "fast money. explain to us very simply what you mean by you're buying puts. >> so when you buy puts on the market as protection in case the market goes down. >> that the market will go down. >> i'm long stocks i own stocks i need a little bit of insurance. i pay that premium and buy that insurance and then if i crash, if the market crashes, those puts pay off

>> got to be more expensive today. >> they are way more expensive. >> think about what karp has done very tactical. look at the vix. it went in with a 50 handle. we were at 13 four days ago. so what she's doing is taking advantage of a major move in the market even if it's a short-term move, tactically as a trader it's a smart move when you look at what the market has done, the one thing that i'm watching more than anything is the u.s. dollar. if the u.s. dollar starts to firm up in the way that in the last couple of days it has, that could be very difficult for stocks a dollar that stays in this range. you argue with the folks at home that may be joining us, moves in the dollar are often 18 months in advance of a fed hike and often we price that in well in advance. this dollar's done nothing it's been weaker for the last year the fed is moving. i'm interested to see what the dollar does. >> i'm going to make it really easy for somebody at home trading. you look at the s&p cash and we trade through 2638

i have a three day rule. wait, see if that holds the low and in the dow it's 23923. so those levels need to be kept. >> today ended, officially ended the record 404 trading day streak without being more than 5% away from our highs if you care about that stuff, today ended -- >> a lot of stuff. >> -- the most incredible market lack of volatility in the history, in 200 years of history. >> still ahead, today's selloff sent a number of stocks into correction are any of them worth a buy? the chart master who buy the way pretty much called this last week a handful of names that he thinks might be near a bottom. we're going to break that down the selling not stopping here. stocks around the world reeling, some of them set to reel tonight when they begin trading. we'll talk more about this and which one tim seymour says is a buy now. it wasn't just stocks that crashed, bitcoin falling below 7,000 at one point today

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money. selling across the board bringing dog food with more on the global look. brian, it's not just us. the market meles that we've seen over the past few days have had far and wide ranging ripple effects. it's all about markets around the world speaking in many ways to the idea that markets do tend to trade together, especially in times of stress, especially in times of down side stress. we can look through this lens of some of the mid prep's bigger exchange traded funds that are focused on geographic markets. a developing market like china, they tipped their fxi, it, too, fell today and now is down three days in a row. down 7% since its recent high. that was back on january 26th. what about emerging markets as a whole? a three-day losing streak as well that ticker eem. a three-day losing streak here

after a bigger hit today it's now down around 9% from its recent high on that same date. how about the developed markets especially in europe germany specifically the german etf took a beating. down three days in a row down around 9% since its recent high on january 24th. i guess the point being, stocks are being offered no matter where you go, sold across the globe, even given that risk off mentality we've had here brian, many of these markets are trying to find some kind of footing and can be used as part of a general stage of risk appetite back over to you. >> dom chu thank you very much. tim, let's go to you did you pick up any of these names or markets >> first of all, i think what's interesting to know, emerging to the lows is down almost 9% emerging is not going to find their footing if the staup doesn't has&p doesn't have their footing the ewj which is japan has better eps growth, is 20% cheap

to europe, which is 10% cheap toot u.s where should you be more insulated. all the data that have people nervous about rates is very constructive on manufacturing. i like japan i like the eem in fact, the eem, which has been outperforming the staup dramatically since really december of 2016 is i think going to find a base and you absolutely want to buy it. i wouldn't buy it tomorrow >> guy, let's talk about the german dax all over the dax, worried about it what do you think about the german dax right now >> technically you could take a look and see it's 13,600 or so we put in a bit of a double pop. that's pretty clear for the technicians out here i will tell you in my opinion the dax led the sta&p higher 18 months or so ago where does it find footing that's what you have to figure out. quite frankly i don't think the dax finds footing for another 4 or 500 points to the down side

that's significant take a look at what the dax has done has it let up? yes. >> can i ask you this, guy, too? a lot of people are going to wake up tomorrow morning and look at the european markets that are trading and they're going to wonder, is europegoin to follow us or are we going to follow europe? if the dax is down 4% tomorrow, is that going to lead us or just a reaction to today? >> i think it has been leading us i think a down 4% move tomorrow in europe will be a reaction to today but, again, this is chicken and the egg stuff that i cannot -- tim is probably better suited to answer it. again, i think specifically that is reaction to today. >> i think global markets are going to follow our markets. our markets started this and i think the dynamic is this is where the liquidity is watch european close tomorrow. if we're going to see a bottom, you wait and see where this is you can get some clarity in the market you know, turn around tuesday, you name it, there's a lot of cliches. after this kind of big move, getting a bit of a bounce would not be a huge surprise

i bet we need to see europe close before we get it. >> okay. still ahead, it is hard to admit when you're wrong especially when you're wrong guy adami, three simple rules when you should cut your losses and move on. he's going to break them down. i'm brian sullivan you're watching "fast money" on cnbc, first in business worldwide. in the meantime, here's what else is coming up on "fast." >> city get back in there at once and sell, sell. >> sounds like what investors have been doing of late but the stocks are flashing a bye signal we'll give you the names plus, bitcoin investors are breaking up. and the key event this week could be the make or break moment for the cryptocurrency. we'll tell you what it is and how to profit when "fast money" returns. what's team spirit worth? (cheers) what's it worth to talk to your mom?

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was a bit historic and scary day on wall street that is a time lapse of the dow. at one point the key index falling nearly 1600 points bob pisani is at the desk with a day that will go down in history. >> this is my 20th year. i don't think i've ever seen anything like it it was a roller coaster ride for the record books at one point the dow was down 800 points going into the 3:00 p.m. hour. and then it bounced back 800 points today there were no headlines. inflation risks, valuation risks. none instead there were technical

issues every time the market tried to rally the volume was weak indicating buyers just weren't that interested even at lower prices when the market moved lower, particularly when it kept dropping below the prior lows, the selling picked up indicating sellers were again becoming more active as the market dropped selling accelerated because many sellers have what we call sell stocks where they will sell profits that, of course, begets more selling. one important point, the market functioned normally. we had very high volume, north of 9 billion shares. that's 50% higher than normal. there were no reports that i saw any market malfunction and i checked with the nyse on that. one thing for sure, big names already in correction territory. general electric, look at this, down 51% ford down 24%. p&g down 14% netflix down 11% the recent selling has been driven largely by professional

traders. remember, an historic ocean of money came into etfs in january. north of 55 billion just into stock etfs that's according to etfs.com retail investors were they putting money back to work the volume weighted average price, what we call the vwap, the average price is roughly 27.80 or so. we're 100, 140 points below that that means on average anyone who bought this year on average is underwater by 4% or so how will the average retail investor react when he discovers he's underwater by 4% after bielg the unstoppable s&p 500 just a month ago that is a question for later this week. back to you, brian. >> yeah, it certainly is bob pisani, thank you very much. on friday they said this was an immediate market pop. >> whether we go lower now or over time or whether we're back

in, i think friday it's going to stand as an important intermediate top. >> all right very good call maybe more than he knew. chart master carter, is that more names you could buy possibly on the dip? first, carter, can we touch on the overall market i believe on the s&p, we're very close to that. what are you seeing? >> obviously a lot of moving parts. really i think the most important thing is you have to know who you are in the market each player has to know that about themselves if you're thinking out three to five years, you're 18 years old, just coming into the market, buying stocks, whatever, it's going to be great. if you're a timer trying to time it, if you're on "fast money," probably don't need to step in here now let's look at the markets and try to figure it out this is a very well-defined trend line that the market has bounced off of this is, in fact, the exact plunge low of february of 2016 this is the exact moment of the

election when the weakness just before trump won and this is the mid summer swoon of 2017 and it's a long scale so while it wasn't much of a swoon, the line is coming up quickly relative to price. this is as it stood one week ago. let's bring it forward ready? and then today it literally stopped to the penny on this line again now the first question i ask you, is that because literally everyone is a chartest no, but algorithms are out there. computers are out there. it's not random that it came exactly to that line and stopped. does it mean i have to be over no, but if you are looking to think out long term, there's always something to buy in terms of taking advantage of weakness. let's just roll through a few big names. i've picked out a basket one big tech name, one big financial, one big material stock, a big health care, big

industrial names that you all will know and here they are. apple is your tech name. ups is your industrial allstate, massive financial, johnson & johnson speaks for itself dow dupont i'm going through them individually and then let's talk to them as a basket. this basket is 1.5 trillion. almost 6% of the s&p and it was damaged. i mean, this basket's down 12% from its high versus the market. these numbers were moving intraday we know we're down almost 7.5% now, 7.8 the basket is down some 13, 13.5 let's go through the charts and put it altogether. here is apple, here is apple off of its trend line. so if one is looking to take advantage of weakness off of the line, this is something to think about. let's go onto the next this is allstate here comes the line. it's the same principle, right it's knowing who you are in the market

if you're a three, four, five year investor, of course you do something here if you're trying to figure out whether tomorrow is going to drop another 5% at the open, don't touch it it's important that you play according to your mandate. look at this, another one, exactly off trend, off trend, off trend. play it for a rebound. and then johnson & johnson, here comes the line i mean, this is all -- you know, i don't draw lines the chart's the charts these stocks have all come down quite precisely to lines that have held importantly. let's do one more. ups, move it along here's the line. same principle going to make the bet for the bounce then here is a basket of -- here's the basket. these stocks, the 1.5 rillion, and now here comes the moving average. the 100 day moving average this has literally bounced off this line, off this line and we closed on it there so, if you're a quick trader, maybe you've got a quick bounce.

long-term person, these and others, always something to do it's important to know who you are in the market. >> carter, all right good stuff as always, buddy. why don't you come on over to the desk. >> bring him in. >> yes, let's talk more about this guys, i mean, it's -- you know, we could talk about technicals and, carter, i certainly mean this with all due respect because the technicals matter a lot. a lot of people trade just on them, but when you have a lot of weird things that happen internally today, a lot of talk of algos gone mad, liquidity, people short put the x side, a lot of stuff we're just starting to understand, how confident are you that those technical levels will hold? >> those are technicals. machines look at charts that study pattern. >> more than they used to? >> i think they do and, again, i think the most important thing is is it's not the end of the world, but here's the other thing. why do we have to sign a reason why it's so off? why did they go up so much it was the biggest january in 20

years. you typically went down more quickly than you've gone up. we've unwound the big trend of january. is it such a crisis? >> a lot of those charts look exactly the same regardless of the number what does that slope tell you, the upward slope about where this basket could go if it does, in fact, bounce up. >> where it bounces. in principle, good 45 degree angle. those are about what they are. you get a nice bounce off of that that's the thing where if you're a trader you're looking at 3, 5, 6% if you're long term buying something down 6 or 12 similar to what you did, buying puts it's an opportunity with time on your side. >> carter, you look at some of these setups in the past we've had such a big buildup of etfs and fund close. does this make you feel differently on how you do your technical? >> i don't know how to quantify that think about the headlines as it stands the cost of money is 2.8% and earnings are so good but people are panicked. >> guys, jump in here. get back to this

good conversation. we have some breaking news the white house making a statement on the selloff let's go to eamon javers. >> the white house has been commenting throughout the day. a new comment from the white house just after a couple of minutes after the president arrived from his trip to ohio. the president's focus is on our long-term economic fundamentals which remain strong. historically low unemployment and increasing wages for american workers the statement goes on to say the president's tax cuts and regulatory reform will further enhance the u.s. economy and continue to increase prosperity for the american people. that's the official statement here from the white house. as you know, brian, this is a president who has embraced the stock market, embraced talking about the dow jones to a degree that his predecessors didn't do. they were weary that if youtal about the stock market on the way up, you have to talk about it on the way down that can be an uncomfortable position for white houses to be in typically they stay away from commenting on the stock market's individual movement and 1rid

days this white house has been different. over the massive rally we saw in 2017, the white house embraced the stock market and now they're seeing some of the down side politically on a day when it sells off. >> eamon javers, thank you very much guy adami, the other day the president sort of chastised his treasury secretary for commenting on the dollar do you think the president should be commenting so much on the stock? >> no. i've said that since he was elected as president it's his right to do so, it's just something out of the ordinary i'm surprised that he said and a number of people said the stock market will be a report card for our administration, which is great if the market goes higher each day but obviously you paint yourself in a bit of a corner when you have days like today and friday so what's happened is he's forced to comment now given what's happened over the last year i happen to think that's dangerous. i don't think they should be talking about the dollar or the stock market. >> i also think that he is a business person. i think he gets this this is a sweet spot for him this is what he thinks he understands. >> his report card

>> which 100 million people own stocks this is a report card. pension funds own stock. everybody owns stock, white collar, blue collar. he's speaking the language of the country. i don't have a problem with him talking about stocks. >> wait a minute, the president getting out there making a comment about the stock market when in fact live by the sword, die by the sword ultimately, if you think about some of the dynamics, politics made that a big -- to speak the obvious, we jammed through a tax bill because mid-term elections are coming up, because there was a reason to do it. if these guys are really tethering their success or their popularity to the stock market, that means they're going to be legislating in a way that's not -- >> what's the point? we jammed through a health care thing before the mid terms, too. they do it >> let me ask you -- >> and if the market over heats because we threw gas on a fire when we didn't need it, atlanta fed -- >> there's a lot of -- >> 5.4 in their gdp upgrade.

>> people are going to have a problem with whatever the fed does or whatever the fed doesn't do so out of the -- >> talking about the white house. >> you're the one who just said we threw fire on it. >> the white house did, not the fed. i'm saying right now that there's no -- our tax policy, do you know the last time the tax rate was 21% do you it was 1940. so if it's 35%, that is not competitive on a global basis. this is -- this is humongous tailwinds. >> hold on what does the white house have to say >> it doesn't matter to guy's point, can he -- do you agree with it, two totally different things i have no problem whatsoever if this white house wants to use it as a report card if they pigeonhole themselves, then so be it. >> good discussion, guys we'll see if we get more comments on this for more on today's selloff, be sure tonight to tune in to cnbc's special, markets in turmoil. that will kick off at 7:00 p.m.

eastern time tonight as well. still ahead, as stocks and some of the crypto commodities continue to sell off, when do you know, how do you know it's time to cut your losses? well, guy has three simple rules to admitting when you're wrong, and he will break it down. plus, if you thought today was bad, traders are betting that one major dow stock could tumble 20% wn epheit rorts its earnings tomorrow. that's right we're going to tell you the name and why some traders are nervous right after the break. today, innovation in the finger lakes is helping build the new new york. once home to the world's image center, new york state is now a leader in optics,

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welcome back to "fast money. stocks not the only thing taking a beating. bitcoin breaking below 7,000 seema mody back at hq. >> brian, investors are growing anxious ahead of tomorrow's hearings the sec and cftc will testify in front of the senate banking committee at 10:00 a.m the topic regulatory oversight of virtual currencies. jay clayton will be asked to assess the risk in the crypto space, that means bitcoin and other currencies its commentary on bitcoin and crypto exchanges has been limited. traders will be looking for some type of guidance on whether regulators will pursue a specific strategy like regulators in china and south

korea. bitcoin lost over $1,000 in today's trade and is down about 65% from its mid december high but to put this move into perspective, this isn't the largest drop that we have seen in bitcoin it did lose over 90% back in late 2011. also worth noting, the selloff today not confined just to bitcoin. the rivals ether, light coin and ripple suffering double digit decline. >> thank you very much. for more let's bring in michael boucella he's manager director of block tower, managing crypto investment fund. michael, people going to be looking to you for guidance, perspective and comfort. you may have to play psychologist tonight. >> yeah, that works for me. >> what do you say >> i think we're actually at a pretty exciting type for cryptocurrency on two fronts, the volatility and the opportunity it represents. also sitting at the precipice of what could be one of the most material events for the

evolution of the digital ecosystem, the senate hearing tomorrow morning. >> do you think that's really going to drive down the crypto's dip much considering we've had sells for the last couple of weeks and we didn't have a hearing the next day >> i think it's a confluence of things if you think about large concentrated holdings of digital assets, you have a lot of people who are looking to derisk into this event you have that layered with emotional events which brings it to technical levels which has a lot of ta analysis and a lot of folks go off of that it creates dramatic both draw downs and rallies. >> let me ask you something. as the crypto craze has gone on and sucked in a lot of typical stock investors as opposed to being a counter culture of people who don't own stocks, we have days like today, everything kind of moves down together. do you think that's what's happening here do you think that's a separate phenomenon

>> it could be idiosyncratic if you think about the implied volatility on something like bitcoin of 120 and you compare that to traditional asset classes, it's in the realm of ten times. you think about ten times the type of movement you would see in traditional asset classes what i think about volatility is that it actually brings about the need for regulation, which is helpful in the long run because it creates a framework from, you know, you have a lot of institutional capital and infrastructure development sitting on the fringes and this provides a framework which derisks their involvement in the space. it actually is long-term beneficial for the overall involvement. >> so when you look at the global market for bitcoin and you look at the hearings aside, as you said before, what about just globally asia what does bitcoin -- when everyone looks at the trajectory thi they think the coin is going to get to, can you take asia off the table and still have

something that is constructive >> you can still have something constructive although there is need for global adoption of digital assets it's important to develop that in a systematic way with regulatory agencies behind the movement i think you need institutional adoption and so that would require obviously we're a global economy and will require global adoption as well. >> mike, what do you think on a day like today, having you guys assess a risk off event that relates to what you guys are doing? >> yeah, sure. so, you know, we, again, view volatility as an enormous opportunity. we have a multitude of underlying strategies that we, you know, utilize a very robust risk management process to tap into i don't want to go too deep into individual strategies. >> we'll get you back on a day like today we have to hop back on to stocks. michael bullceo, thank you very much. when do you sell your losers

and buy more also this rather insane market day. we're back with more right after this

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all right. welcome back to "fast money. i want to check this out this is the xiv. it's a credit suisse product it means that it moves in the opposite direction of the fear gauge, the vix as you might imagine, as the vix rise, that falls in fact, it is tanking after hours. i don't like to use the "t" word a lot, tanking

it's down 80%. what is this why do we care what is it saying? let's bring in mike khoe it's a little bit in the weeds i get it this is selling volatility to generate extra income, but we are finding out that when you do these kinds of strategies, you could get wiped out, are we not? >> yeah, no, that's definitely true if you sold a put, let's say a 2.80 strike put on spy last week, you could have collected maybe $3 for that put. now take a look at where that thing is trading when the spy is trading 2.60 so that's $20 in the money ate this point, right?

that basically explains the complexity when you sell any form of insurance. the liability when you sell insurance can be significantly larger than the premium you collect to do it that's kind of what's going on here it's an exchange traded note as you point out rather than exchange traded funds. one of the reasons it appeals to people, if you bought it, the most you can lose is everything you put into it, whereas, if you start selling a lot of derivatives you can lose substantially more than that i think what they're talking about now is it may have busted. you know, usually when we talk about the vix because the vix itself as a percentage, we tell people don't talk about what percent the vix moves this way or that, but in this case actually it makes a lot of sense. why? because if you are basically inverse short something that goes up 100%, you've lost everything, right? so i think that's basically what we're dealing with here if there is any residual value in the underlying hedge

it's probably going to be bad for you. >> mike khouw, thanks for taking a complicated topic. the xiv going to be something we have a feeling about we'll hear more if not tonight, certainly tomorrow morning on cnbc coming up, can't decide whether to sell your losers or buy more guy adami will open up his investment selle gde arsuind it will have simple rules on when to bail on any investment. you won't want to miss it. don't go anywhere. we're back right after this. it's time for the 'ultimate sleep number event' on the only bed that adjusts on both sides

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couple of days may have some of you wondering when to bail on a losing trade, when to hang in there. guy adami here now with three simple rules to know when to cut your losses and when to run. a little segment we like to call, the more you know. >> the more you know thanks, brian. thank you. notice it says trading survival guide. important. it doesn't say investing trading survival guide leave your ego at the door what does that mean? we are doing this show for a long time. i am wrong on a nightly basis. you have to talk about it and discuss it it's okay to be wrong. it's not okay to pretend that you're not second point, know your exit point. what does that mean? fire to buy apple at 150, let's just say, the first thing have you to do is establish where you're going to get out if you're wrong again, playing with numbers. i'm going to buy apple at 160. if it prints 152, i'm going to get out of a portion and

re-evaluate. know where you're going to get out if you're wrong. the last one, this is my opinion, other people differ, but never add to a losing trade. if you put a trade on and it starts to go against you, don't add to it. the first move from a losing trade should be to get out of a portion of it, not to add more >> guy, can a losing trade change on a day like today >> well, a losing trade, yes can it change on a day like today? absolutely this is one thing i say all the time don't turn a losing trade into an investment, and that's what a lot of people do and it happened in general electric i'm glad they put up the chart what happened? people buy ge around $32 saying i'm buying it for a trade and then when the stock gets cut in half it goes from being a trade to being an investment you can't wear both hats in my opinion. >> all right great advice. >> guy adami, thank you very much. coming up next, the final trade. see that's funny, i thought you traded options. i'm not really a wall street guy.

what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade trust #1 doctor recommended dulcolax. use dulcolax tablets for gentle dependable relief.

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all right. big day around the horn final trade. >> all weather stock al true a mo. >> karen. >> i'm going to wait to see how the market opens if it opens down a lot, i'm buying eem. >> i want to screw down some risk i go with etf, xly up 7% year to date that's the one i would take a look at. >> you're here all week. like at micron in the after

hours raised their guidance. stock is higher. >> guys, thank you very much for your insight perspective as always. crazy market day historic market day. be sure, folks, tune in tonight. cnbc has got your back and got you covered. a specia my mission is simple, to make you money i'm here to level the playing field 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 just trying to make you some money. my job is not just to entertain but to educate and teach so call me at 1-800-743-cnbc or tweet me @jimcramer. all right. we just had th