typical or dramatic october kind of bear killing downturn they have happened. >> mike the closing level of the s&p for the week near the lows earlier. >> near the lows about 10% down. it hasn't necessarily kind of given way, right you kind of chopped around the area for a while the february lows 2% below. >> that does it for "closing bell." >> "fast money" begins right now. "fast money" starts right now. live from the nasdaq market site overlooking new york city times square melissa lee. tim seymour here brian kelly. steve grasso guy adami a wild week on wall street as the selling pain ranges we start with the sell i don't have dow slammed again with 500 points lower the nasdaq leading it lower. a red october. the s&p zipping in and out of correction territory now on track for the worst month since 2009 the nasdaq down 11% this month alone. the russell getting hit hardest down 13%

are we in for more selling what stops the bleeding? what should we expect next week. >> five questions in there i have trouble just ramping up -- and you rattle them off three like that. >> do you remember any of them. >> what was that >> do you remember -- >> what should we expect. >> more pain ahead i believe so a couple fridays ago when the s&p was down from the all-time high, i turned to karen and said there is another 7 or 8% on the downside as you mentioned the s&p down 9.55% today. i think we have another three or four%. what shows end to the selling. and by the way you might have seen a little bit of today the vix closed unchanged maybe it has something to do with the fact it's friday. i have no idea that's good. i still think you see a day the market really flushes maybe a 3% day where the vix closes above 30 reverses that's the bottom. >> i hear you saying you think we are not done. but what ultimately is the reason that we keep going lower?

well, now we play back and forth i'm not looking for split screen. >> why the entire month of october could it be kination of the concern. >> i'll answer the question given i pose. >> rhetorical. >> the fed is the reason we are here i think we are the confronting a federal reserve that at least since the fed minutes since that fed powell statement i think it was on october 2nd you have a dynamic here. >> third. >> 3rd are in the markets look at them from that point. granted there is some other parts of the market that we talk about were industrials, banks that have been struggling a long time but the broader market and certainly the indices and semis down 18.5% on the month small cap noted at the start of the show to me this is really concern that the fed is getting more aggressive at a time when there is no data that's coming in right now that's actually telling you the economy getting stoerng. this anything we are running into headwinds and whether it's trade. >> here is the thing the fed was part of this but to me it was more they lit a match

in a dynamite factory. we had concerned over europe, tariffs wab a slowing economy. auchlds the fed comes along and says i'm going to raise rates. then all of a sudden everything starts to sell off semi sold off before that. there was a multitude of things. you pick the reason. what concerned me this woke, though, is we all talked about our earnings going to save the market all of a sudden earning come out and not great. >> doesn't matter either. >> what's left to save it. >> if you look at the -- the fed is definitely the number one concern on investor's minds not the market down october 3rd. fomc minutes on october 17th knocked the market down again. chatter about hawkish fed knocked the market down again. it's all rates that's it. so. >> sure. >> i think -- >> okay. >> so if you look at why the market stops it's fear plus panic equals bottom. we have had fear no panic yet. >> you neat the the capitulation what we haven't seen is the heavy volume, right lows of the

session really feels awful kind of day. >> it did feel like that today. >> not at all. >> even down 400 points on the dow it didn't feel like the panic day out there. if you look in the volatility half hour or so we swung 1007 points in the dow that's not the sign of a bottom. >> we did this last night. we knew exactly what we were getting into today because the earnings weren't great i want to throw something else back there while i agree and said it's fed eps ve revisions this quarter and year to date are down. so this has been not the quarter where people suddenly said it's better for us. if anything the revisions have been done. that's right, down if you think about it that's a big issue for stocks that had good news priced in. >> i would posit the fed hasn't changed the the court much since beginning of the month it's the notion at a it hell bent on rate raising path in the face of markets saying things are not as good as it may seem that sort of divergence.

>> and squawk box they talked about is the market a concern. seems like it's not a concern. the market has to be worse before we consider changing course good for her and i agree i agree that it's something with the fed. but tim is right amazon earnings, not a lot to do with the fed. >> the growth companies. >> not a lot to do with the fed. >> any other environment -- any other environment we had the reports yesterday you would see those as a single stock event. you would see them get hit you wouldn't see them take the market -- the market is looking for these names to save us. >> but they're not just single misses it's not just one offs this is the whole secretary her. it's everybody. >> it's what the comment artery has been in the face of what the fed is doing >> you can't have poor earnings. these aren't great earnings. you can't have poor earnings in the face of higher rates and quantitative tightening. and the corporate tax cuts. >> it's all of those things the fed came along in a dynamite

factory the fed lit a match. boom here we are. >> next week apple, facebook the next two weeks we have in more than earnings. >> about 60% of the market report. >> is the fed earnings that are going to help the markets. >> everybody knew going into the earnings season that earnings were going to be great everybody knew that therefore you have to assume that prices stocks represented that, frkted that then we also were clear that we didn't think any corporate management had any -- there was any benefit any guiding anything but conservativively apple we know because of the sheer size of the company as a percentage waiting in whether the triple qs or s&p and where the returns come from, this is a major risk for the market. not because apple i think is disaping dramatically. but because it's got so much riding on it facebook i'm not specking anything. >> what is going to help you have month end, rebalance with the mechanic 15 billion put to work in equities due to selloff.

you have buybacks coming back. mid-terms that are approaching fast you're getting closure so those are a couple of things that can save the market it's not going to be earnings. >> the glimmer of hope for me was the home builders, actually green in this tape and they have gotten crushed all year you start to see some people come in and say there is value at some level. >> you feel like that dead cat bounce. >> we might have a dead cat bounce in the s&p but looking for where the bottom could be that's a slight glimmer of hope. >> what do you do in the period of volatility where you are not sure the selling is over. >> i'm not sure it's over. i hate this game >> we play games here and she asked a question. >> she didn't ask to play a game. >> but the answer could be do nothing. sit on the -- anything you want it to be whatever you think. >> for knows folks wishing the market would pull back opportunity to buy apple, buy facebook boy some railroading which by the way reported fantastic earnings and getting crushed. that's what you do you make the list and stick by

it now of course it's always scarier than it seems when it's happening as opposed to when you sort of thought about it in your head but that's the which the market works. >> i mean, do you go to some of those hit hard, netflix down 20%. >> netflix to me is a name -- what is it up 70% this year? >> right. >> and not surprisingly this is a name i think doesn't deserve the multiple it has. why did amazon get pushed around so much? the numbers weren't awful. but they aren't representative of a company trading at the multiple -- priced to perfection high multiple stocks you don't chase the high multiple stocks especially ones i think people are taking rost profit in. >> zplo you can try to trade them let's grasso is talking about levels but let's talk around 2600 in the s&p 500. maybe there is support there you get a tradeable bottom here i don't think it happened today. >> all right well a week almost to this exact minute steve grasso walked over to the plays that gave us the

key levels to watch for this week and he nailed it. >> i think we will see this level again, the 2710 level which was our recent low if you want to lock in some profits if we break the 200-day moving average, 2768 you can lock it in and try to play for a bounce off of this if this level doesn't hold, kiss your kids. don't go home. >> all right grasso head back over to the plasma take us through the next level. >> who kissed their kids. >> i did but i'm going home. i'm going home when you say what does the market want to do and you do with the market you have to say there is no panic people sitting on their hands let's look at the charts and see if we can get other information out. these are back to february lows. that level is 25 -- wow -- scratch that clear 2532 okay so today we have a retracement here from this low to this high.

gives you a bunch of retracements today we spanked it right on the nose here, 2629. all right, it was fractions, decimals lower than that, a slight break which is a sign of weakness in the charts the market wants this level. that's what the market is telling us that's what we have to test. we have to test it in short order and then bounce from there. if we do not bounce from here, forget about kissing your kids there is no one home your house is taken away this level if we breach that level you are talking about 100 handles lower for support. see. >> why not 2550? again, i know maybe we are slitting hairs at this point. >> sure. >> i look at the blow off top we had into jarng 26 which august you ared the enormous volatility we had all year np that's the level we need to get back to, no. >> when you bring up the 2550

that's this low here if we tested that, tim that's okay i don't think that anything with a 26 handle is okay. you need a 25 handle to say this was a valid test of the low levels >> hey, steve, which i wonder can it happen in one day or a it is it a bottoming process. >> i hope it happens in one day. three-day rule the low has to hold three consecutive days you make a higher low i hoped it happened today. i wanted to see panic. you can bottom op on a panic day. we don't have panic yet so no bottom in place yet. >> what's your inclination where we land next week? test any of the levels. >> we are testing the levels and the level that tim points out, the 2550 level right about here. >> yeah. >> that's a good level to start. but i think people want to test this level 2532 you fwt to have a sufficient test of the february lows. there is people already saying that that level is not going to hold so you need a substantive test of that level to prove the bears

wrong. >> all right thanks for that steve. we'll be watching the levels next we can. not all doom and gloom a surprising group of stocks shone bright amid the wrecking and we tell what you they are and what it means plus the facebook fallout rages on down now 30 peppers from the highs as it reports earnings on tuesday. one trader looks so bad excuse me it's good he explains why. and later the dow on track for the worst month in since 2010 and one thing guy is watching next week. >> what's that. >> the key to the market's destiny. >> man. >> he tells you what next. live from times square in new rkity. more "fast money" right after this eally? thank you clients? well jd power did just rank them highest in investor satisfaction with full service brokerage firms...again. and online equity trades are only $4.95... i mean you can't have low cost and be full service. it's impossible. it's like having your cake and eating it too. ask your broker if they offer award-winning full service and low costs.

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everything from group one automotive gm and ford moved up mid-single digits amazing. the home building stocks, another group had the stuffing beaten out of it a comparatively strong week. good earnings from pulte toll lennar dr horton into the green. volume especiallily heavy in the home building group. they were buying home builders like crazy at the bottom of the morning. the volume was huenink that has traders kplangs complaining. why? because traders want to see a tradeable bottom that's what they want. when is it over had? they don't see the signs they think the sentiment is still too positive pointing to the huge rally the s&p rose 60 points in the middle of the day. the conventional wisdom is the economy is good. a lot of stocks are oversold and washed out time to buy them these guys they want sentiment more negative. they want the vix higher if not the 50s like in february at least in the mid-30s or higher

that's why most traders i talked to today felt that today didn't settle anything. but it was an indeterminate day. i have to agree with them on that one have a good weekend melissa. >> one question on the home builders, the traders were upset because of the volume was up and the home shld resist and didn't see the whoosh to the downside in capitulation. >> they want the more negative sentiment. they want they think people are picking bottoms on the bean beaten up groups and the home builders and automotive stocks ep they are washed out now let's buy them they want nobody interested at all. >> bob, have a great. >> i don't totally get that. >> have a great weekend long week bob at the new york stock exchange you've been in home builders are you disappointed at the action here. >> i'm okay if it wasn't another whoosh lennar down 33%. fought back down 38% the beginning of the week. you get a shot at lennar if lennar gets back to middle 50s think of the percentage move

you get going into year end. that's where you get the beta case chase ford as well but all the home builders are ripe for substantial bounce. >> home builders apt makers retail ertz any much those convincing where to find value here. >> in my opinion, the home builders bounce because rates have gone lower the last couple of weeks i mean that's. >> and lumber. lumber costs have gone down. one of the major headwinds sorry, guy. >> i think the trend is lower there. autos maybe, tim maybe we finally got the low in ford. i still say you fade the autos as well. >> to me, retail i feel confident on retail first of all the the xrt after under forng the s&py outperformed in the last couple days we are if few weeks ago away from black friday they all start early bottom line is think about what retailers have done in the last year first of all, they outperformed the s&p by 1,000 basis points over the last 12 calendar months most of this the outperformed of

expectations the holiday season which last year weren't great. no matter the macrotells you the skufrmgs story is alive and well in the discretionary consumer name you have value. it's been created but these aren't bombed out because they are structurally broken. they have been you had pulled back with the broader market. >> unless what you think what amazon is saying in is sbik testify. >> amazesen -- go ahead. >> i would say if -- did you buy that or even if you look for a trade here, look at home depot with traded down to major support today. if you get that turn around and you are looking for tradeable bottom that might be the place plus you know what your risk we're ward is today's low or this week's low is what you use as you stop. >> what was interesting was also -- not just today the bounce in sfla we have seen and then today it fell off right when the headlined crossed about the fbi investigation deepening. then the stock came back after all finishing higher by 20 something%. >> that was the most impressive

thing bounced came back from the headlined on a friday after this move to the upside when it gave everybody the taunt that wanted to to sell and it did. but came back. we asked gene munster the question the other day but for elon musk's sweet tweet about funding secured would tesla be north of 400 i think he said yes. quite frank lei will i i said it five times i'm backwards on this so i don't know but i tend to agree with gene. >> can you think of how many funds were short tesla and long amazon imagine that trade coming off when you see the tesla bounce here, a lot of it is short covering as well. >> you know, i realize the short interest in tesla is high. but i don't think that's a trade a lot of big hedge funds have on i think there are a handful that do tesla strads are twrads in its own stras sphere tesla significantly underperformed the triple gs for years.

what's been happening last few months is a tesla story. good and bad you had the company showing generating free cash flow, may not have to borrow may not have to raise money we forgotten at least about th concerns from the doj or s.e.c. even those things are there. for the right reasons for fundamental reasons tesla did what it did this week and i don't think tesla is in any way going to be a beta stock for the overall market. >> outside of the bounces this woke bk where does he look for opportunity. >> really injury it's a bounce market i mean the problem i have is we have earnings that haven't been great. the gdp print today was not great when you look under the hood i think at best you have a bounce market. i think can you look at the home builders like grass orr likes. home depot is something i look at i would look maybe i'll give a hint maybe the bond market. >> km on. >> yeah. >> steve. >> it's what they call a tease. >> for more oh on retail bright spots go to trading

nation.cnbc.com. first in business worldwide here is what else is coming up on fast >> announcer: buckle up. next week could be the most important earnings reports this market has ever seen we'll tell you how traders are betting ahead of the big reports. plus >> may day. yup, that's what the stock market looked like this we can but don't panic. if you think there is more selling ahead we tell you how to protect yourself for less. much more "fast money" right after this

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welcome back to "fast money. we head into the final week of october with the s&p hovering near correction and on track for the worst month since february 2009 we want to go around the horn find out the key thing everyone watches going into affection

woke tim, kick it off. >> right now to me it's still the macro. we talked about the fed. i will reiterate everything from the fed now seems to be a fed that went from asymmetric to a neutral fed right now is a different fed and if anything they are telling us even like messter this morning they could be comfortable with the pace they are on. but the dlarp near eight-month highs in the dollar. you breck out through the 96.70 level. you could see the dollar move. that would be tanker for commodities and trades weakened i'm watching those two things next zbleek beaks. i'm with tim on that the dollar. the other thing i'm watching the bond market. high yield it's been incredibly resilient throughout process thp look at hjg going back to 2016 when we had the last big selloff high yield bond sold off. this time they haven't either the stock market is wrong about the recession or weakening economy or the bond market. >> grasso. >> i don't think that any single stock is going to save the overall market but i am watching apple.

and the reason why i think a.m. is the perception is reality if apple fades because it's been so superresilient in this marketplace, that really puts the death knell in the overall market although it's not one name apple carries a lot of weights. >> guy. >> european banks. deutsche bank closeable at $10 all-time low or close to it. i still think european banks are telling a story maybe the rest of the market is catching up on see how deutsche bank trades next week. >> what a week it has been final trade time tim seymour. >> yeah. >> get airway interest for that lull. >> there he has the. >> emergeening markets picking it of the le brazil best performing market in the world this month thank you. >> bk. >> tell you what if you think the stock market is telling you week me buy tlt rates too heit. >> stock beaten up you heard me say it once or twice any stock green today you want to look at lennar, stay with it it's going to bounce. >> guy. >> huge, huge away tonight

huge 08 it's one of my favorite. probably my favorite show. don't do this i know we got to go phillips 66 energy stock bounce. >> we see you back here monday at 5:00 for fast do t venomo a special "options action" starts right after this so you'll still be here to help me make smart choices? well, with your finances that is. we had nothing to do with that tie. voya. helping you to and through retirement. and then, more jobs robegan to appear.. what started with one job spread all around. because each job in energy creates many more in this town.

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hey there, live at the nasdaq market site on what has been a wild day for markets. the guys getting ready for a huge show tonight while they do that here is what's coming up. >> announcer: that pretty much sums up what investors have been doing this month but if you are worried it could get worse, we have a way to buy protection for just $5 plus ♪ after a wild couple of weeks for tech, the fade of the space hangs in the balance of two stocks reporting earnings next week apple and facebook so, will the tech wreck continue to