weakness. >> which is the top bank pick of the moment. >> top bank -- i have so many, goldman sachs. >> interesting. >> i was going to say before tomorrow watch "mad money" jim turned cautious yesterday for the first time in a long time that was a good call. >> it was indeed you don't want to miss mchld don't miss "fast money" beginning right now. "fast money" starts right now. with breaking news stocks getting shattered today the dow worst day since february tanking 80 oh point. the sell accelerating into the close. and we close the dead lows of the day. s&p 50 oh worst losing streak in two jeeks .look at the sea of red. the market took no prisoner. tech getting hit the nasdaq falling 4% the worst day since brexit everything from transports to small caps, taking on the chin 66% of the s&p 500 closed in correction territory or worse.

it was a wild day out there as it looks like we are finally seeing panic set into the market are things getting worse before they get better. this a dip you buy. >> we are on the cusp. of earnings snlz we talked about that last night. i'm not suggesting i knew the dow would be down 80 oh points today. but we mentioned the warning signs. the market hasn't care until today. what are the sign sns technology absolutely has been wrong over -- quite frankly it started with facebook a couple months ago down 23% in 7 minutes we talked about how an individual stock can can do that. the small cap index has been going lower. transports have been rolling over i'm of the belief this this whole thing with china is if the settled any time soon. i think that's been a problem. mr. mnuchin today said china, don't continue to devalue currency that was a factor. finally, though the market seemed to care that's the bad news. the good news as i said we are on the cusp of the earnings season that will be strong my concern will be what will

guidance be in the wake of a lot of the preannouncements. >> and maybe bye backs back that was the reason earnings came up a buyback black out. >> maybe you get them to help with the heavy lifting food it was technical and not fundamentals if you look back in january, february similar but we ran up more prior to january so i think all things being equal, we'll right around support 11 levels in the market, the 2 oh oh day. >> guy mentioned ppg proctor and gamble. >> that's the problem. if we hadn't had the earnings warnings and flower corp. offer theever at close today earnings warning if you didn't have those then you might look and say this is an opportunity to buy the tip for the longer run. i'm not clear on that now. i do think in the very short term you say a day like this dow down 80 oh points. this is not the day the to panic. this is to start look at as a trader i want to pick it up. what i'm looking for and maybe it happens tomorrow you wake up,

dow is down two, 300 points, futures in the morning then you get the reversal. that would be very positive and i would buy that. >> all right i agree completely i think i mean -- we're a little bit further down now clearly markets overseas are opening down europe will do poorly tomorrow and we'll probably open down too. i'm sort of intrigued by this. i always say that when things start to trade down integers at a time. >> today we got trampled by the thundering herd of the integers going down but i don't think things traded that much fundamentally in terms of the u.s. kpee i hear guy's point that it's not just about the injures but the guyedens but now the bar is lower for earnings significantly lower in many cases. for earnings. >> but does -- remember we talked about in jrn, february we heard about risk parity accounts

that no one understands, the cta gama that no one understands it felt like that was indegers was part of that it makes it more buyable runs the course derench, derisk. once you get to a certain level it become as screaming buy back and then it evens out a little bit. >> and the 43% spike that we saw today if you believe there are risk parity accounts at work, et cetera, all that was going on that was a catalyst. >> right and all those things are reasons why you want to look to buy this market potentially rather than panicking here and try to buy puts with spiking like that in this is to grasso's point. kind of a technical mechanical part of the economic doesn't mean the economy might not be slowing but the short-term interests a tradeable opportunity here. >> here is my question i'm sure the home gamers thinking the same question we have astute viewers you are thinking what does the

selloff tell us are there questions process about the u.s. kpee when you look under the hood of the market we lost fang back in june pch the average small cap was down 6% or more than that in the month of october down oh 20% from the 52-week highs we have all sorts of growth -- i mean the growth stock areas really falling off didn't that tell us early on that there are questions about growth and thn we get all the warnings. >> the question. >> should i be worried. >> the questions without growth without question however you talk about the u.s. kpee with historically low unemployment rates optimism through the roof. profit margins spiking. >> with headwinds. man made headwinds in the form of trafrs higher oil prices because of the sanctions on iran. >> a lot of it is self-inflicted president trump might be right the chinese might be ripping us off. no question about that i have no idea i don't sit in the meetings but to think there is not

ramification on the broader market is fool zbleesh we had the worries. >> and market doesn't care. >> you will at fundamentals you just started naming have been positive they've been taileneds to the overall economy. that's why it seems that many it's more deleveraging risk off type trade based on things that have been around for some time. >> i'm casting myself in the role of debbie downer. we have not seen the latest right now of impact tariffs warns. >> when you look at powell powell said we analyzed the data points and haven't seen it take oh hold in the data points as of yet. he hastalked had himself. >> tell that to proctor and gamble and pepsi. >> there is a reason why it's in the certain aspects. and that could be transitory >> the question -- transitory is the right point opinion everybody in the market or at least the narrative of the market has been listen, the tariffs are going to be temporary. we are winning this trade war.

it's better come out the other side yesterday, the imf says wait a second maybe not now we get earnings warnings companies saying things might be slowing down tp. the tariffs might be hurting if you think the tariffs go away soon call to it next quarter then yes this is a longer term buying opportunity but i'm not that career on that. it doesn't seem to me these goe away that quickly. you have to be a nimble trader. >> go ahead. >> when i trade on the floor today what i didn't like was that everyone said let's just get the selloff over with as if it's a reset where you have a selloff and everyone is back in place and you're guaranteed another bull market. that's to me speaking of the complainsenscy in the marketplace we've seen. >> i hear a lot of talk about the fed derailing there. but there is inflation president trump said we have inflation in control i'm not certain that's the case. everything we have seen petitioncy, fluor corp. you talked about, proctor and

gamble ppg. they say inflation process if the fed is doing everything right. i'll say this i don't know if people agree if the fed flifrmgs in december because of what potentially could be a market selloff,ive bigger problems. >> doesn't go. >> doesn't goo go. >> even in light of this selloff you want the fed to say full steam ahead. >> for their credibility they need to. for the fed credibility they need to stay on the path. >> and if the market responds to a fed rate hike at this point is it high sfleer if we bounce back and at highs again and the fed raises rates you have a problem. if we are at the lows appear we priced in this december hike then you know that's a sell off. >> it startwood poum's comments october 2nd. the comments october 3rd we start to fall off the cliff. this is generated by powell riffs a risk off event if he backs off- everyone thought he was hawkish to your question if he backs off and is dovish it has to be the inverse of what we have seen

the market has to be bought. >> you couldn't look at it as all right, the fed didn't want to leave the path but they have to things are so bad i think they stay on it. >> what he was saying is we can overshoot a little bit on based onition flags we see pockets of it but not krs the board. >> here a question if you see inflation and you say inflation in the economy is a good thing for the right reasons economic growth. what if you see inflation in the economy and it's man made, self-inflicted brought on by tariffs, higher oil prices becauses of sanctions on inner is this the same kind ever inflation. >> on top that question they have to think about the market implications, they have a job already impossible and then it's extraordinarily impossible they can't try to navigate a market in this environment they can't stick the market landing and try to raze rates and think about everything you just said. it's impossible. >> i think they got to raise rates. >> i agree. >> and i think just step back historically be look at rates.

look at the quarter point we are talking about. i mean, really, since much bagger. >> but the path from 3 process tors 3.25% on the tenure has fraught with volatility. >> what you have to look at for the fed is remember we are talking about inflation. their main indicator is inflation expectations and that hasn't ticked up at all. if i'm the fed and look at this and say, you know, if i don't raise i lose credibility because the market fell count, all the indicators i see as a fed no inflation, expect aches why would i not -- why would i get off the path of raising hikes at this point i think they do go i think that is a headwind for the market but in the short-term you might get the tradeable bounce. >> despite the major selloff the next guest see as year end rally shaping up says to buy the dip for more let's bring in tom lee. this is the dip that you buy >> yes you know it's a dip where the

vix has spiked we had basically a water fall collapse and we know we are going into the period where 74% of active managers are trailing the benchmark. so i think that the urgency or the urge for markets to put capital work to close performance which means a rally. >> do you think that the klinecs we saw in the markets today are as bad as they seem on paper when you take into consideration the role that etfs plays in the markets and that you sell -- when you sell three of the etfs you own you are selling the same stocks over and over and over again? >> there is -- there was a big correlation increase today across markets and part of it is that there is deleveraging when rates are high and volatility speaking and risk parity funds were overweight bonds. this is a lot of position squaring but onces in behind us i think people have to think about where opportunities are especially under inflation and equities are the place to be. >> tom, i know you do a lot of quantitative worng and fantastic

this year. what are the quantitative models saying let's take the emotions out of it what do the machines say. >> you know, acquaint funds almost universally like growth even our acquaint model by sam doctor is overweight growth. one of the things is crowded that's people are long duration, even in credit through bonds or growth stocks, long duration assets so a shift towards higher rates is a shift towards asset intensity. you want to be long assets, not duration, which means you want to possibly think about owning growth value stocks now. >> how are assets -- i mean all stocks are assets. i don't know what you are saying by that. >> the adage used to be that it's harder to make a lot of eto offset pe. meaning in a world of rising inflation an asset intensive business like financials can generate tons of earnings leverage because assets are growing. near deleveraging plus they can earn margin. if you are an asset light

company like r & d based company it's tough to actually keep up with inflation because you have labor costs and the only thing you have is growing is units asset based bits are a value stock. >> getting back to buy the dep devils advocate .s&p down from all-time high albeit 3 percentage points today. what needs to change in order for it to be from buy the dip to maybe this is the beginning of something larger >> the one metric we watch carefully is the yield curve because you can't fight against an inverted yield curve that tells you confidence of the future is so bad that markets are contractionary the curve has been be steepening i find that bullish that we have had sort of future expectations improving. >> so i'll piggy back that you said risk parity the last time we had the risk parity event we were trading down between 11% and 12% guy had said it's down 6%, 3% today basically. is it a technical bounce

or is it a numerical percentage that we are coming off of for risk parity? because risk parity has to be what the same, lain yar, in its very essence of it and we have seen the market run up granted we haven't run up that you have is it percentage or technical? >> it's -- it's probably a little bit both of because risk parity wants to overwraegt low vol and under underweight high vol. at 20 relatively vol it's a spike but actually relatively low. so equities get an allocation. you have to remember the seasonals are good the correction happening in may or the summer is scarey because we have good seasonal now we have good seasonal at a time of performance chasing. i actually think it's a good opportunity here. >> a last question i want to underscore, the message that you send to viewers right now and that is you buy the dip but you want to buy the value stocks going to year enthat's the where the ral issy is is this broad

based rally with the same old players playing along, the fang, tech stocks. >> i have two firms. year end people go back to the favorites on the shelf, all the fang names that have pulled back look cheap because they wanted to buy at these level. paypal in the 70s. but next year i think it's a story of markets are broader it's really narrow this year and it's more asset based, which is inflation -- proinflation trades and it's probably a sift to value. one one of the more important moments happening this year. >> tom, good to see you thank you. >> good to see sfwlu tom lee buy tom's market playbook. >> i'm always a half empty person oop i love to be opt mivg but i'm not. i do believer it's the beginning. ible it's 12 to 15% kbifen the double tops to steve's technical point in the s&p i think there is more pain to come. >> still ahead we are all over the market selloff and we have you covered on every angle after a which would day.

first off a sea of red on the street but zit the pain there were bright spots and we will tell what you they are and what it means plus the tech the big looser down 5% as the market leaders continue to get sold the hardest. but a top technician says there is opportunity amid the chaos. he tells us the beaten down tech names he is buying live from times square, new york city, much more "fast money" right after this are you ready to take your wifi to the next level?

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worst day in mosh 7 years. the nasdaq the worst day since brexit possible pisani at the nyse. >> the nasdaq having the worst month since january of 2016. while the drop was big today, much of the tech sector this was the culmination of months long selloff. fapg stocks hit highs back in june four of the five names are in correction o correct territory apple is a relative winner only 7% off the 52-week high. semi conductor stocks, another good example hit highs back in march of this year big names like lam and micron and amd even sbel is off 22% of the 52-week highs but big software companies held up well until a few weeks ago then they turned south this month. salesforce and adobe by and oracle more than 10% off microsoft down 8%.

this is relatively more contained damage what's process been going on we've been transitioning from low growth, low yield world where it payed to buy technology because it was one of the sectors with significant growth. but now we move to the higher growth higher yield world, where paying any price for growth may not be as attractive as itused to be. now value stocks may be more attractive than growth and treasuries are looking more attractive versus stocks it's important to keep this in perspective by the way we think the world is falling apart. but tech- tech is still up 10% this year. apple, microsoft and sysco are still up 20% or more this year. don't lose track of that back to you. >> thank you so much, bob we o at the new york stock exchange this goes back to what tom lee was alluding to in terms of longer duration stocks tech stocks fall in that category karen when you look at your portfolio you have a lot of big tech names that bob outlined

that we lost the leadership back in june. how are you feeling after the washout. >> like nauseated and poorly. >> aside from that. >> i actually dipped my toe into each of google and facebook, both with call spreads in google, a butterfly in facebook for very little money. it's kind of the weenie approach to putting the toe back in takes one to know one. so, you know, i have no faith that i will pick the bottom. i never have faith that i will do that. but i just think, wow they are coming after them so hard. >> if you look at the seasonality that tom alluded to earlier if you go into year end and most funds trailing the benchmarks, you have to grab where the growthiest names are and unfortunately for a lot of people wanting to get away from this overvalued names, you have to dip back into amazon. you have to dip back into netflix where you get the growth from in the last three months that will torque your account. >> you don't fall into those

categories do you feel you got to get back into amazon or back to netflix. >> i don't think so at all i think there are better places in tech. look at micron that one held up support levels the every other tech stock getting crushed. mike con which has been getting crushed since june or july since bob -- as bob pointed out. >> his name. >> since june, july it's getting crushed. now in a horrible market it has relatively strength. that's the type of name bk likes. >> it's interesting, amazon, you talk about a stock that hasn't traded well. we had a conversation, is it green sale -- clear sailing for amazon we said make it's ahead of itself there's a good chance it goes to 1850 this was when it was at all-time highs. then it rallied above 2,000. it failed and now below 1,800. and facebook never recovered the losses we talked about earlier in the show.

which is also disappointing. the good news is as kirn pointed out the setup into earnings has been the best it's been for some time. >> our next guest says there are two beaten down tech neighborings that may be looking worth the buy. let's go oft charts with todd over at the plasma. >> what are you looking at. >> first before we are get to individual names retires talk about the nasdaq massive selling and we were on power lunch and looked at this same chart and looking at a 7,000 level pch let's go back to the nasdaq. don't get away from the index because the index is everything here i want to first identify kind of the pullback zone of where we need to hold support there is the nasdaq. so we saw consolidation here only two ways market trades, either in consolidation or trend trade. no other way to do it. the trend began here and what you want to do is pull out many some of the retracement tools and any healthy trend you expect the pullback anywhere from one third to 3/4s

and those levels here range from 71.86 to 6680. this is the nasdaq 100 the levels have to hold. this is your pullback zone here. if you hold this is a healthy correction unfortunately not to get evil on you but if you break 6660 on the nasdaq that's trouble and that equates to selling while contained in here fine we can scoop some names. first one up, i think you guys just mentioned, apple, right up until the close people forgot to tell apple we are in the middle of the selloff good strength. i think we closed around 215 here there is support here if the market recovers, that seems to be a buying opportunity in apple just a really really nice clear low volatility trade i'm looking to scoop some. if we hold the support level i mentioned in the nbx that is the strongest we have. next is facebook karen mentioned it

again a really quiet tape appear a pronounced tech sell off we have sport holding at 150 guy said it as well. there is a huge tech sell off happening but the selling already occurred we seem to form a consolidation decreasing volatility, a disinterested selling party above 150. if you look at the rsi one of the technical indicators relatively strength index indicates how much momentum there is behind a trend. all trends aren't the same you can have trends with nnlzing or decreasing rate of change. this symbioticer butt in the lower back here and initial earnings move. we have seen higher lows in the rsis you can have lower prices did you decreasing rate of change. if you hold 150 facebook could be a scoop aaron, add technicals into it and i know you can do it don't be afraid of it i like the idea getting weaker here is netflix unfortunately i think netflix looks terrible

we have a head and shoulders top here not looking good the next line is right along the lows here. if you breck this net flex unfortunately you got to change the channel on net flex. this is not healthy, not a name i would be looking to scoop. finally look at alibaba. even before the last two days of technology selling agy and china has been week. fxi couldn't get a bounce. alibaba, that kind of head and shoulders pattern i mentioned has played out the breakdown was right around here we came back to re-test resistance held. which should have been support that name -- you can't is sell it now but you don't want to buy it i think the chinese names, asian equities are a big reason we see pronounce the technology selloff. >> todd, thank you todd gordon of trading analysis. grasso i know you've been a fan of alibaba in the past i mean 10 cents seems to get worse every day. >> plenty of people buying

alibaba. i have a nices sizable profit if in it but it doesn't matter when you have paper profits and you start to look at them you assume they were yours to lock in but you never sold it. so to me even though i have a profit in it, i still think that when the tariffs start to resolve themselvesable aa is at a reasonable valuation going to be a screaming buy. >> how worried should we be about netflix not only is the long duration growth stock but levered balance sheet. >> a very levered balance sheet. valuation -- there is no valuation, right so that's the one thing we know about this is okay -- it's also -- dwregt is going to be in asia if you talk about the slowing kmienz economy and a levered balance sheet with very little assets asset light business then this does look vulnerable it has support there to me it looks like the same support apple has. i wouldn't be superaggressive

about selling it but if it breaks i would agree with todd. >> we have breg news from the white house commenting on the selloff and the strength of the economy. let's get to eamonafters at the white house. >> that's right. affairs one is wheels down in pennsylvania pennsylvania where the president attends a rally but whie while the aircraft was in the air the white house issued a statement from is a sarah sanders the white house press spokesperson on the state of the economy sheer what he said what smepd. the fd and future of the u.s. economy remain strong. unemployment lt a a -year low taxes for families and businesses have been cut regulations and red tape slashed. paychecks are getting fatter consumers and small business confidence are setting records and farmers ranchers and manufacturers are empowered by better trade deals president trump's economic policies are the reasons for these historic successes and they have created a solid base for continued growth. so sarah huckabee sanders there predicting continued economic growth despite what we saw on the -- in the stock market

today. i should point out melissa that this is now the third statement that the white house has issued today as the market continued to slide. two senior administration officials issuing comments to me kurpg the course of the day before the market closed and now this statement on the record from sarah huckabee sanders after the market closed today. >> they are watching closery eamon thank you. eamon javers at the white house. now, i guess the question for the markets is all what have sarah sanders said is true let's say it's true. >> yes. >> does that mean that it was -- 6% ago or 5.25% ago on the s&p 500 was that pricing that statement in. >> that's a great question because i agree with just about everything she said. right. >> right. >> it doesn't in any way take into account prices. if you read that statement, any price is the right price to pay because of all of the fundamental things are there well we know that's not the case so i understand -- this is an administration that lives by the proxy of the market as their score card

i understand why they have to comment on it. but to me those are two completely different things that's happening. >> and it was the right price where interest rates were. so when you get back the recalibration, if interest rates still continue to rise in the same path but now president trump has a scapegoat in jerome powell he is on record saying he does want -- he has a scapegoat. >> the economy is doing well and we're on a great goegt path then rates should be higher than they are. powell should be doing the right thing in fact might be behind the curve. >> that's back to the economy is doing well and inflation in the right way. that's fine. but man made inflation is not the right inflation to raise rates on. >> they have to do that calculus as well. the comment should be shall did shall today shows us we are a victim of success. the economy is doing so well which is oh why our federal reserve is doing the exact right thing. >> i want to read you comments from president trump trump said

the fed has gone crazy, is too tight. i'm simplied reading the headlines. trump saz the fed has gone crazy, is too tight. >> he is giving ownership if the market sells off. >> int poing the tirng. >> jerome powell and his market everything that sarah said is going to be escalates as a tailened, jerome powell is the headwind with you good cop bad cop. >> first of all the fed should separate era operate int dependently. >> i hope it do he says he respects the independence of the fed even if it's too crazy he respects it. >> during the campaign snlz he hated janet yellen are with are they in we are behind the curve we need to raise rates if it work withes out for him that what the fed is doing then they're great. and if it -- i just think it's ridiculous. >> what did the federal reserve do today -- why did they -- because the stock market sold off? is that why the fed was crazy

they were ihle crazy. >> but if you look on the clarity it's undeniable, october 2nd, october 3rd those are the comments. >> why shouldn't the fed raise rates. >> of course. >> what mels aire just said if you are seeing inflation because there is growth in the economy or is it a transitory man made event that we can sit on our hands for at least one more cycle so. >> i want to see if we can get clair clarity on the comments let's get back to eamon at the white house what do you know. >> i told you air force one is wheels down in pennsylvania. and the president has been speaking to reporters on the ground there and that's where you see the comments from the president coming some striking language here. from the president i'm looking at a summary we should get tape here in a few minutes. but a summary from reporters on the ground who are asking the president about stock market today. he says, i think the fed is making a mistake there is a lot of safety -- the fed has gone crazy the president says in the comments and on stocks he says i really disagree with what the fed is

doing. okay so the president expressing some frustration. this is similar to the frustration that he pressed with me when i asked him yesterday about what he thought about the fed raising interest rates but in language much stronger saying the fed has gone crazy. the president told me yesterday that he has not spoken to jay powell at the fed about his concerns about rising interest rates. he -- i asked him if he met with jay powell actually this year. and he just did not acknowledge that he said i don't interfere i don't interfere with the fed today's language more striking from the president of the united states saying that he thinks the foed has gone crazy. still no indication that he is directing the fed in any which or splesing this in any which to folks at the fed directly. of course they have tv as well. >> thsk they do np eamonafters at the white house does this statement back jerome powell and the fed deeper into that corner where they have to raise rates no matter what the data says at this point. >> just to contradict the president?

is that what you are saying. >> yeah. >> just to show. >> when he says the fed has gone crazy. >> for the fed to not combo at this point in time you have to have a big deterioration in the economy. an order of mag nude to anything that we see at this point. i'm not saying the stock market is going to -- i'm saying you have to see negative growth signs in the economy because i agree this puts the fed in a bad corner. and the market has to digest this this is the type of language that the market is not used to hearing froma u.s. president this is the type of language you hear from turkey, argentina, those countries. >> but he has warmed us up to unusual compensates from the president. >> the president -- the president i'm par phrasing he said this is a strongest economy we have ever seen in the history of the country so the fed is raising rates. how is the fed going crazy given that back drop isn't that sore of the mandate. >> that's a good point. >> i think steve is right. i said it the day joe kernen had

the interview we talked about it he is create the a scapegoat in case the market goes lower. >> everything you said, i agree. the fed is raising rates from the artificially low ridiculous level what the first degree fed should do nothing even as the economy at an all-time high. >> all of us at the table -- forget any politics forget the fed. >> if you think this policy is inflation running away. >> the phillips curve doesn't exist, jerome powell. >> there is hardly any wage growth. >> wage growth is what he is looking for. all of this stuff could be man made which leaves you the ability. >> you don't think we are seeing wage growth. >> we are going to see it we haven't seen it some time we are getting sniffs >> you should wait for the artificially low level and there should be the economy heating up. >> i don't think there is any risk of being behind the curve. >> what's inflation in the country bk. >> 2%.

>> you are talking about. >> that's where we want to have it. >> interest rates are so ridiculous so i'm not an economist. steve liesman come and talk about this the fed is doing it right. and they should continue if the market goes down up on the back of we have gone up of course there is signs of inflation we have five preannounce zbloomts the yield curve will do the same thing, raise rates in the face of inverted yield curve. >> ppg, the list goes on and on of companies seeing inflationary pressure. >> let's listen to the words from the president's own mouth. >> you know, i think the fed is making a mistake they are so tight. i think the fed has gone crazy so you could say that well that's a lot of safety actually. and it is a lot of safety and gives you a lot of margin. but i think the fed has gone crazy. >> okay. so it was exactly what we thought it was the fed has gone crazy is what the president said. >> doesn't take it ut oh of

context. >> perfectly in context and that's exactly what he said. >> well the fed has gone crazy he should replace jerome powell. if you have a crazy fed chair he has said it twice. >> you have though think about. >> after he said oh jerome powell is a great man, blah blah blah. >> that's what he says about everybody before he fires them he says they're a great person see what happens gets on a plane next thing you know here is the pink slip. >> if he replaces joem powell with a low interest rate person which is what he likes what will the markets do. >> down. >> the knee jerk will be higher. >> any went down on rising rates. >> split decision karen what do you say. >> down. >> they go lower i agree. >> knee jerking down >> if you call -- if you call the federal reserve crazy you are call the chair person crazy. and if you have a crazy person in a seat in that magnitude you can't lour that to happen. he used the word twice it wasn't a mistake because he

said it again. >> it's an exaggeration. >> he is the cht of the united states. >> he has a tendency to exaggerate. >> when you look at the expectations for what the fed has been doing, people haven't been surprised in any way, right? >> right it's always been well priced in. >> well priced in. everybody knows it's coming. and he is crazy. yet the market -- i don't really get that that the market seems to have digested and expected and -- and think it's a reasonable -- the market i think generally thinks it's a reasonable path. >> the jury is out coming up it was of an warnings from ppg industries that sparked the selling. and now the traders tell you the next is to stock to report earnings that could have implications for the market. plus if this has new a panic do not worry. guy has you covered. he tells you the three keys to viefrg the selloff first in business worldwide,

much more "fast money" right after this

welcome back to "fast money. stocks getting slammed it might not have seemed like it. but there are bright spots in the market dom chu separates the good from the bad back in the newsroom >> i mean, 17, melissa 17 stocks. that's how many in the s&p 500 finished the day in positive territory during that carnage that was wednesday trading by now the super la actives by how much all of those have made their way around the circuit but as is often the case with broad based down days like we saw today we often try to find sft stories and silver linings as i said before there aren't many that are green stories but there are a handful that are

outperformers. as far down as tiffany retailer fell downous utah off the european luxury house and the lvmh, not all of retail fell by as much as tiffany if you chekt out shares of dollar tree, kolls, dollar general, the u.s. retail chains were up on the day then there are some of the consumer staple stocks like campbells soup and the heels of activist investor dan lobe and jm smucker a or general smils mills each of those stocks in the green today caveat is that many of the staple stocks have been in medium to longtime down trending into recent trait trade attention action and utilities defensively plays having the have been outperformeder and check out ppl and public service and ni the source. and though it did end up

fractionally in the red overall. but the big question outside of the outperformer who wants to buy the dip in the other stocks that got hit but knows were positive ones back to you. >> dom, thank you. who wants to buy the silver lining who wants to buy campbell soup ni source. >> i mean campbell pork and beans is interesting because you have the active it in there. you have a floor in this stock it should kind of buck the trend of the general market. if you looking for a place maybe to be a a little bit cautious. campbell porken beans gets you done and see how i say it. >> porken beans get you done. >> we talked about it a couple days ago on the activist maybe the bottom is in was it yesterday. >> yes. >> it's amazing days go like like this i don't remember on green on a lousy day not bad. >> i agree with that because you do have an activist that could make it happen. in the meantime i want not a terrible place to hide out. >> if you are just trying to weather the market sell off are

there hideout trades out there this the traders have some ideas. guy what is your hideout trade. >> mine is pfizer drug listen down 2% today i'm not say going outperformed everything was down. steve talks about it all the time 93% of stocks were down today worse than usual but i still hink there is upside in health care i think valuations arable reasonable the pipeline is good and the fact that the stock is op a rocketship since president trump tweeted about them a couple months ago about prices says all i need. so with lockheed martin when he came became protective placement. >> hideout stock karen. >> target. they are doing the right things fundamentally. i like who their customer is they are they are not paying so much close attention to the fed dots appear and i think the consumer is strong i know wage growth cuts both ways people have more to aspen and they have to pay more to the consumers. but to their employees altogether i like the valuation. i think it's attract disbelieve

brian kelly. >> for me a name you haven't heard in a while free port mack listen if we get inflation you want to be in some of that asset heavy companies. but then let's take the other side of it and say you know, what if the fed daus pause what happens you get a weaker dollar gold, cop are, those type things go higher free port mack to me is the place you hide out. >> big brain on bk. >> 2009 exactly. >> grasso. >> basically i had two pfizer was one but g.e. the other one if you look at the day ge was in the green. up possibly on a down colossal failure day. when i look at it it's up 23% in the last month now it's having price targets another 20% higher from here believe it or not ge can be a hideout trade. >> so bad it's good. >> yeah. >> how much worse can it get. >> there you go. >> it's the bottom in for ge. >> kwo i don't know if it is backup but it rallies earnings

what he is the thing we play -- the more you know. >> and then a few days later in the same stock and look at it it's a rocketship. >> coming up if today's selloff has you running, guy has your back the three keys to surviving a selloff. but stocks slammed today but a trader says it's the perfect time to buy. he has a way to do it without risking a lot. risking a lot. he break the engine management systems coordinate with autonomous vehicles. financial data, so now we can predict the future. our new flexible propeller design. by collaborating with public schools money" returns ibm is helping students build the skills they'll need for tomorrow. revolutionizing. aerospace industry. it's an entirely sustainable approach. any questions? when you rethink education, everyone can put smart to work.

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efrmts welcome back to "fast money. the market in meltdown mode with the market singing 800 points. the worst day since brexit opinion might have you a total panic but don't worry. guy adami covered with you the three keys to surviving the sell off. he is over the plays that. >> i learned to play that on the piano. i'm do going from piano but that's for mother show surviving a selloff. here we go everybody wants to a selloff that is until it happens when in your mind you can't wait for the market to sell off 5%, six% then it happens you say i didn't think it was selling off because of those reasons and becomes scarey try to take emotion out of it. everybody wants it until it's happening. it's happening now embrace it. it's never for the reasons you thought. number two stick to firm levels. i'll give you a good example we talked about facebook for some time we say it's a good

chance facebook trades at 155 the level we saw when mr. zuckerberg testified make it's a huge opportunity to get in ahead of earnings but if that was the level a month ago stick to the levels. last one no harm in waiting we are going under earnings period i said earlier earnings are fine the estimates might not be good. maybe we see a sell off on the back of that you don't have to jump all in. there is no harm to wait again you get the sell off you wanted if you have levels stick to them if you are apprehensive wait a couple weeks try to take emotion out of it. don't be emotional see that mel, i tried not to be emotional. >> nicely done karen has a question. >> i have a question what if you made a mistake going in and you were levered? >> made a mistake going in and you are levered. >> yes gla in other words you own stocks and under water i think that's the question. >> not underwear o water

it's if you were levered. >> on margin. >> on margin. >> as an individual. >> yes. >> then. >> i don't dt my game. >> i'm not suggesting people do that >> i'm not suggesting that. >> you shouldn't be playing in that deep. leverage is a great thing when it works for you as you know it's a terrible thing working against you. as volatility increases it works against you further. i don't really know how to answer that question hopefully we don't find much of our audience in that position. i'm just speaking for the people that maybe aren't levered and looking for opportunity. >> guy, real quick, what do you look at, put the most importance on, relative strength index, you see if it's oversold or overbought, moving averages or retrace mts for the home game. >> order of importance, relative strength is tough. but every once in a while it's a glaring one. and it happened -- you remember the day it happened in amazon about a month or so ago when the relative strength in amazon was at levels we hadn't seen in 20

years. every once in a while you get it on the upside and every once in a while on the down side. >> the more you know thanks for that coming up ugly day for stocks but one trader says this could be the perfect time to make a contrarien market bet. he will tell you how without the risk plus a sneak beak in the "mad money" studio. jim kramer ab, a big warning about the market last night you won't believe what he says after the big off. more on that at the top tofhe hour meantime in live at the market site in times square more "fast money" right after this

back to "fast money. stocks plunging but our professor co says believe it or not this could be the time to make the contrarien bet. he joins from us san francisco to explain that. what do you mean, mike. >> obviously we have had several consecutive days of weakness and today it seemed cap it laer to, the relative index strength which guy was talking about. it's something i look at from time to time the mechanic obviously was looking extreme by we can. i thought now might be the time to dip in and buy calls which is what i did close to the close today. if this is viewers thinking about it's a way to make a bullish bet without risking a great deal you could look out to the sprd, november, 28 close to the close about $$3 that's a relatively inexpensive just over 1% of the strike price bet you could make

that the spy corraly a bit in the come 30 days which often times happen if you see circumstances where the market is oversold it would it would need to rally by the premium you pen but if the interim if you get the bounce you see the calls get a boost. >> mike co in san francisco. for more "options action" friday 5:30 p.m. eastern time in the meantime we want to get more about the president he is comments made in the past half hour he said quote i think the fed has gone crazy we want to bring in dallas fed president richard fisher joining us on the fastest line dick, great to have you with us. what should we -- when you hear the comments, what did you think? >> nothing i would ignore them. i don't think -- look we have heard the comments before. he was more gentle in what he said the other day but he made it clear he doesn't talk to jay powell he doesn't try to communicate with the fed they have to do their job. it's his personal feeling.

we have gone through this a couple of times now. and it's had in the end no impact so i don't think that's what's moved the market his reaction to it, obviously is his own reaction but i know -- i know how tough jay powell is. and i also know now the fonc the committee views its. they were not political and will not buck the to the president's wishes. >> do you think the fed should take into k-the different kinds of inflation we may be seeing in market we have a spirited debate on this desk about whether or not the inflation was organic to the growth of the u.s. kpee or self-inflicted via the tariffs and sanctions on iran which have driven up oil prices is there a distinction in your view in terms of are how the fed should think about inflation and what kind of inflation the fed should hike into. >> the fed cuts out what happens

on the energy front and as you know cuts to the core. the economy is robust. we see the nfib, the national federation of independent business release a report at dawn saying how incredibly encouraged those people employing a little over 50% of all the workers in america they are not listed companies. they don't trade on the markets but they are the back bone of the u.s. economy so the real economy soo seems to be doing well. the inflationary pressure, the fed looks at expectations. the expectations are rather mild right now. still around a 2% level. and then we have to see what happens in terms of total comp, which as we know is rising significantly more than 2% but the trade stuff hasn't kicked into the system it probably front he had loaded a little economic growth due to inventory build. we haven't seen the inflationary impact yet i want to make one other comment

here because we are all interested in what happens in markets. the fed gave our nation and the market operators a huge gift and that gift was given when we expanded the balance sheet by $1,000,000,000,750 billion by last week of february of 2009. the market bocked at s&p, the 66 of 6 the book of revelations number as we called it back then. it's been oh on a tare ever since. i don't think the fed and particularly jay powell given his background in capital markets is shedding a tear because the market correct the tp it may go back up or may correct further. in has been a one-way street for a long time and nobody with any common sense has been living without an expectation that at some point you have dramatically new volatility and some kind of price reset. the fed cares only about if it affects the real economy right now the real economy is

doing well. >> richard thanks for joining us and quick notice we appreciate it richard fisher the former dallas fed president quickly in terms of tomorrow. >> watch the 200 day moving average in the s&p cash. >> hoping for the huge down and then zbluft 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 save you some money. my job is not just to entertain but to educate and teach you and put this whole thing into context whic