bump stocks, we will ban all devices that turn legal weapons into illegal machine guns. back over to you. >> the attorney general announcing regulation effectively banning bump stocks as well. guys, thank you evan and mike for joining me to close out the week a brutal week it was have a great weekend everybody "fast money" starts now. >> "fast money" starts right now live from the nasdaq market site overlooking new york city's times square i'm melissa lee. traders on the panel today -- tim seymour david seabur steve grasso guy adami the high flying semistocks getting crushed this week. one trader says there is more contain to come. plus the rise of the alt coins. the chief officer at stellar will be here to tell us about how he plans to be wall street's favorite coin. a selloff on the street. the dow now firmly in correction territory, after what had been a wild week.

monday dropping more than 300 points we saw a bounceback. yesterday the dow dropped a stunning 700 points and followed that big move leer today that's good for a total of about 1400 points on the dow that is the second worst week on a point basis for the dow ever second only to a week in october 2008 is the worst yet to come for this market and with stocks near correction territory is the worst still to come, guy >> my instincts say the worst is still to come e. steve grasso last night at 5:35 is a shayed over the plasma and pointed out an extraordinarily important level in the s&p what was that level? >> which one 2585. >> 2585. >> where did we close today. 2588 steve's numbers were spot on next week i would not fade monday's move. in other words, if the market opens higher don't fade it think there is going to be a pretracement if it opens lower don't think we

are going to see a significant bounce that would be my instructions going forward for monday i would say the following. next week i think is the most important week in the stock market probably this the last five years. >> what do you say. >> i would agree with that we are going into easter week. we have a shortened week next week four days next week. people are keying in on where we end the month of march this is extremely important. was today the 200 day? is that a good enough test or do they want to see the 2532 level, the february 9th lows i'm in the camp they want to see those lows but you never want to short a dull market. you could see a pop next week. >> are you worried >> i wouldn't. the desk was quiet we didn't see people panicking there is a comfort level at the core positions but trimming at the edges. i'm not worried about the market imploding and correcting to much lower levels i think it could be a slow bleed for a couple weeks like these guys are talking about and you pick your poison, pick the stocks that you have been comfortable with to add on

weakness certain areas of technology you can add on weakness. i would avoid facebook like the plague, i think it's going to go lower. financials and trill names that i buy on a pullback. >> so much for the pause that refreshed. it was definitely not a pause that refreshed it was a pause that set us up to deal with a multitude of other issues what i would say is i'm starting to get more encouraged at how negative people are feting i felt people were offerly complacent or sanguine about what we had in early february. what scares me about today's close is friday february 9th is when we had a massive intraday reversal we went into the weekend it gave markets to essentially contemplate what were the risks what were not. we closed on the lows two days in a he ro guy's analysis of howway start out next week is probably right. steve's analysis of month end is also rt important because it's also quarter end

there is dynamics at work. you have got holidays for a multitude of faiths next week. there is a lot of people that are going to be checked out. that's not good for the market. >> you have to realize there is uncertain with the 301 we heard a response from china about 2:32 we haven't heard -- [ no audio ] >> could be drastic. when i asked you if you were worried, and you said no, now it sound like you are worried. >> my point is -- no, i said i wasn't worried i think the slow bleed lower i think will

you are not seeing the high touch trading desk come in and get the big order flow that's going to be directional, if the you will, it's electronic trading, i think that's important to recognize. >> what do you do if you are at hem. >> be careful, be patient. >> you should be worried a little bit. >> not worried about a crash, i'm worried more about a slow bleed lower and not seeing a up tick. >> a pash mee teesh is what yout on your shoulders. >> that's a pashmina. >> the more you know. >> the more you know. >> okay. >> february 9th well all of this started happening i couldn't even spell tariff. nobody was talking about it.

in my opinion, this happened long before this tariff talk i think this is one more thing on top of the fire tim pointed that out as well but there is something else going on in the marketplace. i think a lot is the feds changing course. i think that's a big deal. and i'll say it again, there is something wrong with deutsche bank absolutely something going on. if that was a u.s. bank we would talk about it every night. >> and a lot of people have been talking to the broad labor or spreads as a canary in the coal mine possibly. >> yes, you are wise to bring that up. you brought this up. i think deutsche bank though could be one off deutsche bank is going through a painful restructuring. today they launched their asset management arm it traded okay they are supposed to be cutting over $1 billion in expenses this year they are not going to do that. the stock keeps running into issues, which include the ecb. if you look at european financials vis-a-vis u.s.

financials, european financials are lock step. in other words they are both down about 1 to 2% on the year i don't think that europe is worse off. i think on the up side europe is better off my view. >> how would you think of positions come monday? >> so, fur looking at the way we closed, i think we closed weak technically. i do think that you want tosee this selloff last a little bit longer but trying to thread it, trying to time it, i think is a fool's error. i think you have to stay long and get longer if we dip. >> still constructive on the market. >> still constructive on the market. >> still constructive on the market longer term, you are still -- >> my view has been -- i think there are valuation issues. >> right. >> i think my biggest issues with this week was hubris in washington we know these are confident guys, business guys bottom line they got ahead of themselves sopt is not some of the parts it's seat of the pants i think that is whatwe are

seeing right now. >> when you said next week is arguably the most important week for the markets. >> i agree with that. >> 100%. >> absolutely. i don't know what's going to happen we could walk in and the s&p is up 30 handles because the president says or tweets something over the weekend i want fade that move. we saw the same thing on february 10th, 2016, where the market ripped on that kiloon friday. >> you are saying do put anything on play. >> don't make any move on monday is my opinion. >> you are to next guest says the bull chart is still intact let's go to robert, schleimer. >> let's go back to 2016 when all the global cyclicals bottom. the up trend is still intact i think it's premature to make a case we are making a move into a bearish longer term environment. price will be news in this environment where we

have uncertainty over interest rates and lot of political headlines the technicals are going to be very important from my perspective what we have is an established up trend the 200 day conveniently happens to be in the same spot of the lows that we had around 2535 of a couple weeks ago and the market still looks like it's in a bull market. i don't want to be whistling past the graveyard there is a troubling technical pattern here, but so far it's still intact what i think is happening, this is our first move off the low. this is our second major move. i still there is another one into the balance of 2018 and we see sawing into earnings and there is more up side. let's look at the closer term or the shorter term pattern here's -- i'm not sure why it doesn't line up. we closed around the 200 day moving average 2588 2532, 2535 is the low. should those levels break we are looking at a 2420, 2480 level.

this is the third day down when i was on the show last wednesday, steve said he was looking for another swoosh he was right i was wrong. we are into the third day down i still think the market is going to be moving into a broad consolidation. let's look at the nasdaq again, a huge move here at the end of the year. we are still in this big trend cham made a new high. i think we are working our way into the low of that trend, closer to the 200 day moving average that takes us into these levels, there could be more volatility overall i think this is going to be a broad trading range through the end of the month into earnings and i think the market can regenerate at that point lastly, if you look atom sayers areas that still look okay, still acting healthy we are getting hugeu rotation out of leadership to laggards. transportation are acting well not perspect, but pretty well. there is that raping that the transports have been in. and relative strength is

starting to improve. there are porkts, an important barometer, it's still working. >> i think rob comes over. >> daylight today. >> we need that today. >> bring the chair in. thank you. >> welcome. >> when it comes to financials and technology for the week they are down 7% and 8% respectively. do those individual charts reflect what you are seeing in the composite s&p 500. >> i think they do if we take the nasdaq and the extended leadership we had going into the end of the year, beginning of january, tech looks like that. some of these stocks were up 70% off of the february lows semiconductors screamed off the bottom flicks is up 70% off the low it's not unlush to see that type of pattern unwine and get consolidation. financials had a big move. lots of people were overweight it seems the me in the market you are getting leaders unwound, laggards like energy and utilities sort of getting rebound aring. i don't think it's the end of the bull market from what i can

tell. >> rob when you look at the transferral of leadership does everything else since financials and technology are 40% of the s&p now. it's not just one sector that has to hit it can't just be energy. it seems like every sector has to perform what are the odds in a likelihood of that and if we hit that level you are talking about, 24 and change it's over? >> i don't know that it's over we have a long term bull market in place we had a cycle low in 2016 there could be more damage there is our cycle down. you called it last week on the show we have another day on monday. i don't know how it's going to turn out we may violate those levels. but we are getting oversold. we are not getting vix levels up to extremes. volume was higher, but it's not extreme. high yield spreads aren't blowing out. so we are getting lower highs in a lot of the internal indicators which i think is consistent with a market bottom trying to develop. it's early, i don't see it yet

but i think we are getting close. >> last question rob on monday morning as a technical analyst you walk in and look at what on your screen before the market opens. >> the equity markets, bond futures, we are going to look at the high yield spreads we are going to look at the european banks which have been a huge dag the ois spreads are important. that's probably to the going to disappear in one day but i think there is a possibly we come in asians, selling, europeans selling, futures are down, it's scary -- we've seen this show before, where we come down, we open up, it's weak, it's not pleasant i think we start to rebound before the week is over. >> rob, great the see you. coming up, stocks getting slammed this week. there are some charts that are looking so bad they might actually be good we are going bargain hunting with our traders. plus it is a ballots of the alt coins. one of the largest cryptocurrency sellers will be here to tell us how he plans to become wall street's favorite

coin. there is one stock in the energy group the trade remembers betting is about to break out. we will tell you the name. we are live at the nasdaq trading center much more "fast money" after this break what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley

welcome back to "fast money. stocks getting slammed this week and the s&p 500 is now just half of a percent away from correction territory let's get to bob pisani at the nyse floor >> hi melissa. what a week for wall street.

my heavens, the s&p moved in a 150-point range, opening the week at its high and closing at its lows the big problems, the most important sectors, financials and technology aren't showing leadership both sectors were down nearly 7% this the last five days. together they are 40% of the s&p 500. if they are weak, there is no way the market can significantly advance. tech stocks were hit hard. facebook was down 14%. social media is in the midst of an extension crisis right now. all the other fang stocks they were down notably as well, amazon down 4% alphabet 9%. the weakness in bank stocks was in the biggest names as well, morgan stanley, bank of america, key corp, pnc financial, all down 7 to 9% these stocks are sitting at the lows they saw in february. utilities and energy led the charge but they are such a small part of the s&p 500 they can't move the index why the volatility trade protectionism is a threat

to earnings growth it is the main drich of the stock market earnings are expected to raise 20% this year. even a modest threat is going to cause a lot of volatility. that's what we got this week. >> there are some charts out there that look so bad they might be a good buying opportunity. we have asked the traders to come up with their charts. tim? >> my chart is llf from the fed moment to now we are down 7% on the xlf extraordinary move within a whisper of correction time the financials to me with the best suited. best balance sheets. never been better arguably, there is improvement in libor, so the low end of the curve where they have enormous operating leverage -- i don't care about the level of the yield curve, i don't, not here if this economy is worried about overheating from inflation you want to own the bank

this was a tough week. >> as a person who says deutsche bank is something to watch, did you like this chart, tim's chart? >> u.s. banks, they are bein the best shape they have ever been if the market goes down, 70% of the upped lying stocks go down as well. they will get dragged down with the rest of them in terms of fundamentals they make sense. >> you like the ac. >> without he, the same theme as timmy. public 9th you ever a lot of double bottoms, when you look at the charts, xlp, jp morgan, the subsector works. baunk of america breached it just slightly. i'm looking for a bounce but the overall market has to bounce for these to work. >> bac in particular are you asking me on >> my pick is going. the chart is ugly, it's been a lager. i think this is a name where if you see a bounce in that sector

this would be one that gains leadership given the fact that money, incremental dollars may go into it versus facebook they are immune from the standpoint of -- i know there is the eu attacks that some people are concern about when you don't have choices when it comes down to search. and facebook you have a choice if you want to be on their social media you can go the other mechanisms. say goingle. >> guy your chart, please. >> jean real motors. trading at 30% of a valuation of the broader market, trading at a discount to ford five and a half times forward earnings is ridiculous round trip the move from july from 35 to 45 back to 35 in terms of getting a decent valuation it should be a $42 stock. >> you went with the ugliest chart. >> go ugly. >> go ugly or go home i've heard. >> speaking of bad charts if you are holding one we will tell you how you can fix the trade and

cut your losses. that is later this hour. i'm melissa lee you are watching cnbc first in business worldwide. in the meantime here's what else is coming up on fap ♪ pressure. that's what happened to the chip stocks this week. and one trader says it's about to get a lot worse he'll explain why. plus -- ♪ fly me to the moon. >> it is a race to the moon for the largest alt coins. and the cofounder of stellar wi tllell us what's going to turbo charge his coin. much more "fast money" right after this it was my very first car accident.

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welcome back to "fast money. controversy in one of the world's largest cryptocurrency exchange is dragging down bitcoin this week. report surfacing that buy nance has been operating without a license and regulators in japan may shut it down bye nance announced it is planning to open an office in the country of malta the uncertainty putting the crypto universe on edge. how safe is your kroip

let's bring in the cofounder of stellar. you know how secure exchanges might be what's your advice for people out there? >> i mean, you know, i was only involved in the exchange space for a brief period of time i have been more focused on building actually these platforms. but you have to be very careful. obviously, there is a new -- all this technology is new and you know, like try to keep your money in the most reputable exchange i don't have that much advice about the he can change stuff. >> let's move on to the platforms. cofounded ripple and moved on to cofound stellar because of differences in opinion, philosophy differences that you wanted to operate the platform on can you tell us what the key differences are between ripple and stellar? because a lot of people think of these two as the preferred platforms for the financial services industry. >> right so what we are trying to build at stellar is an internet level

protocol i think it's important that that be done by a non-profit entity like if you imagine internet created by a for-profit company we would be in a different world. that's essentially what we are trying to do is make it where payments works, how information works on the internet right now. anything is interoperable you can send money to anywhere you need this governance and structure that wasn't really done in ripple and kind of beyond that it's important to have lots and lots of participants in the network not just a few so one of the things that we are doing in stellar is distributing the unlying asset, the underlying coin widely i think that's a key thing to actually make these things successful. >> one of the interesting things is that one of just sort the fors within the crypto community is this notion that things should be decentralized, right, and the case is made that ripple is a much more centralized sort of platform because it's got and it seeks to partner with some of the biggest financial institutions out there

where stellar is non-profit and sees it self as less centralized or decentralized tell us why that is an advantage from a user standpoint or from a bank standpoint for instance who wants to operate something on the platform why is that an advantage >> it's less -- that's more of a technical consideration. so like technically the consensus. ripple lend itself, it's hard to run nodes outside ripple apps. they are running the majority of the nodes which should be concerning for people, right because basically you ended up with a system that's no better than swift or paypal or the decentralized -- one of these centralized systems. the bigger issue is you have a platform like the internet no one can start charging. that should be of concern to people this is way it can grow and

reach you big with it. the only other network we have seen do that is the internet it's important that it's open. that's the key component. >> we are out of time. we hope you come back to "fast money. we would love to hear from you again. jed mckay leb, cofounder of stellar. >> final trade. >> banks gives you the broadest exposure. >> 32? >> i am a buyer of xl. >> grasso. >> bank of america. >> pete. >> thc, sister. >> "options action" is uafr p te this break pssst. what? i switched to geico and got more. more savings on car insurance?

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out ahead of the storm to minimize any outages. during storm season we want our customers to be ready and stay safe. learn how you can be prepared at pge.com/beprepared. together, we're building a better california. hey there, we are live at the nasdaq market site on this friday afternoon look who decided to stick around for the show guy there with his signature oa jacket and everything. guy and the traders are getting ready. here's what's coming up on the show >> that's what tech investors did this week. and there is something in the charts that suggests even more pain for some of the group's high flyers. we'll break it down. plus -- energy stocks coming into bloom the best performing sector this month. and one of the traders says there is one name