over three%. rising rates within falling stocks and trade policies keeping the cfos up at night, guys >> jackie thank you very much for that we'll certainly keep an eye on oil markets again after the big selloff today. that does it for "closing bell." >> thanks, mike. >> all right. >> see you tomorrow. "fast money" starts right now. "fast money" starts right now. live from the nasdaq market site over looking new york city's time square. traders are the pete najarian. dan nathan and guy adami tonight on fast a sea of reed as the mechanic heads back to the october lows which names survive? the top technician tells us the two names he says are a screaming buy right now. plus morgan stanley mike wilson with a warning, do not buy this dip. he is here to explain why it's time for bulls to take a back seat the market selloff the dow sinking 600 points at the lows closing down 550 points.

that's nearly 1,000 points in two days the bears certainly on the attack the dow and s&p 500 erasing gains for 2018 both in negative territory the s&p lirmly in correction with ner neerply half the stocks in the bear market the nasdaq plunging fromhighs down a whopping 15% from the peak seemingly to no catalyst as the market heads in bear country which would be another 10% down from here. pete, what do you say. >> i think it will approach the levels steve grasso was on on power lamkin fantastic with the charts up there. he was talking about different levels and he talked about earlier this year, october but also back to the january, february drop we had. can we test those or break through? absolutely we can test the levels but yes. the one thing interesting to me dan watches like i do. i look at the vix and i think it's more meaningful than we have discussed than you do the fact that we have gone up

and had multiple 500 down days i'm shocked at a vix that's at 22, 23 i think that's many remarkable it's extremely low given the intraday movement p we were down 550. i think we should approaching 30 and by the time we get there subpoena wore o sorry by the time we get there then we will see the whoosh down effect that we haven't seen. >> the capitulation. >> yes. >> if you think about the long-term archl on the vix it's closer to 18, 9. if you think about markets have been this cuts to the central bank put that pulse the volatility out of the markets. you take central banks out of liquidity and put them into tightening and you should be elevated as pete pointed out, the s&p has down 23 i think of 29 days ultimately and we have been 23 of 29 days below the 200 day. this is a dynamic where if you look at markets that should tell you a character change and yes

volatility is higher. >> i would just mention you can focus on the vix if you want and look at other@ i know we're talking about bitcoin. the total collapse this week showing it's correlated risk assets here. that was one of the bold features on bitcoin. cannabis, crude oil. the gap today at the lows after the month it had was nasty when you see risk correlate like that to the downside, that's reminiscent of what we felt in the summer of 2015, the fall of 2016, those periods where we had a lot of volatility. to me, i just don't know what the catalysts are. like you said, mel, the fed could be kurng into a reverse catalyst no what they do. >> cramer says one and done is what jerome powell could say which could be a catalyst. i would posit president trump could say we have a deal on china. but those sorts of catalysts we don't know if they're coming >> no. >> we don't know if they ever happen. >> my pushback to the fed would

be i'm not necessarily sure over the longer term that it's particularly bullish for a day or two that language wobblish the market would say, wait, the fed is not moving for a reason what's behind the door then the market quos goes lower in terms of president trump and the chinese i've said this for a while. everybody thinks when president trump is ready to make a deal there is a deal to be made i don't necessarily grow with that by the way, each day our market goes lower gives more leverage to the chines in my opinion. in terms of the broader market i've been 25, 30 catch for the s&p. it's about 100 give or take points away which isn't a big deal in a broader context. and this is as well in terms of stocks we have been doing the show a long time. people say if apple pulled back 20, 25% that would be the buying opportunity of a loift if facebook moves lower. now we are in the midst. >> let's be clear. >> 00%.

>> apple the last three weeks is reason -- they're not the reason for markets doing what they are doing. but the 25% pullback peak to trough in 30 sessions which is extraordinary. >> the story has changed. >> has the story changed it might have changed. dan is going to the yell at me which is fine. >> sure. >> but the story in apple might have changed for the better. >> it's not just one stock it's the story changed in three of those fundamental reasons you could put your finger on why they started selling off at peak valuations listen, guys, it's not really that hard, right all the gains in the entire u.s. stock market were in five stocks and they all started going down at the same time. >> do you think today, for for example. azmodan look at that, it one time got slapped down 100 pinpoints and rallied back into positive terse. >> facebook to. >> apple did got off the lows never in the green again

was there enough volume there was capitulation in the names? when you see close to tubl what the normal volume is, starts to make you feel a little bit better that maybe we're scratching that. i'd like to see another day of that because it's a sample set up today but maybe tomorrow or next week we see that. >> i think the greatest fierce in the market should be focused on credit. we did a good job on in yesterday not patting ourselves on the back. equity investors need to understand that the credit guys are ahead of them. what we are seeing is high yield 30-month lows. we have seen incriminal knit selling, better in terms of the folks i spoke to in the pits but the credit is deteriorating. that's very different than every other correction in the market in the last couple years we haven't seen a correction in the credit market since fourth quarter of 2015. and a lot of that was around the energy sector. one against we fwoet the outside moves in energy and in the credit markets they're going after this stuff. >> let's bring in mike wilson

chief u.s. equity strategist at morgan stanley great to have you with us. >> thank you. >> you've already said don't buy the dip. when will you know when the selling is done? where are we. >> i like to see the prays action change a little bit the title of our note was really look we are in a bear market don't trade it like a bull market the price action has been changing all year. this is not the first dip that failed we have had multiple dips that have not been rewarded by buying them it just different. it stems back to liquidity and the fed and the tightening of financial conditions that's our teasis, the rolling bear market. i think we are 90% of the way done with the valuation damage that's going to happen we are waiting for now just the earnings cut why are stock selling off? because they know next year is not great. the earnings numbers are too high that's the margin call we think that takes time companies are not coming out appear just take numbers down between and january.

you got to wait more january and april and july next year taking time. like a drip, trip, drip. it's a process process we are waiting for price action to tell us it's better and then we want to see the numbers come down and see the fed say something more dovish maybe they are closer to being over. >> we are through the earnings season whatever guidance cuts we get for 2019 the have already happened and they probably won't happen until the fourth quarter u.s. strategists you come out around this time of year and set price targets for s&p 500 based on the serngs forecast it is it your expectation those coming down meaning flee across the board? because that's it what sounds like need to happen. >> they're done for the third quarter. nobody guided for 2009 typically they don't guide until january. which is why the numbers came down 1.5% for january of 2019 myren. we think it will be slow because kpts don't like to deliver bad news they do that when forced the analysts don't move ahead of

that our forecast for next year are below consensus what we think earnings are going to be but the market doesn't believe mike wilson it wants toknow the consents us. >> is that a third person reference. >> we like to do that. >> what does mike wilson believe in terms of earnings >> up a couple%. >> a couple%. >> at best and the street consensus as a of a couple months is 10, 11. now 8.5. it's coming down interestingly enough in october gross stock accurate stocks came town northern value. our big call is rotation from value to growth. not because value is fantastic but because growth is expense sfleef if a concern is liquidity and concern and that's driven by fed when you see the fed funds rate coming down when it comes to expectations for rate hikes, whether december coming down do 70 or 69% depending on the reading, and next you take out the march hike and go into june, does that make you more constructive on the markets as you see that come down.

>> the two big issues were financial conditions and growth peaks. the financial conditions thing is still tightening. and the fetid is not backing off. we also wrote -- we don't think they should be they are doing their job that's the problem is people expect the fed to bail them out. but that's not their job the job to slow the kpee when it overheats. and it is. people are like the economy is growth we know what happens next it slows down. >> third person thing confused me. >> that's mike wilsons. >> i did introduce him as mike wilson your question to mike. >> i'm asking him a question i keep reading and hearing this is the greatest economy in the history of the republic. and we know the stock market abeconomy are two separate things given that back drop why should the fed slow down. >> exactly that's why we are stuck and the market knows that. i think the market knew that allier what changed in the fourth quarter of last year which got us let bullish -- a year ago i

was the biggest pull bull on wall street. how thingsening change we thought the fed last quarter was moving more dhibtly than since the financial kroisz right so we had a fiscal tax quash the warrant. cpi moving to 2% tp. they should have been moving more deliberately. i don't think people believe them now that they moved in the direction now we have an asset correction it's the normal course of business this is very natural at the end of a bull market that needs to consolidate. >> just to button this up, mike, you like utilities, health care, energy and banks and you like this even though there is more downside ahead. >> that's a value oriented bet it has defensive skew. we did upgrade the defensive stocks in the summer remember value has defensive stock and cyclicals. and the cyclicals stocks have discounted in earnings recession. these stocks are discounted a lot of bad news and will be

first to recover once the fed stops looks for those to lead. >> isn't it great having mike wilson on. mike wilson of morgan stand willy. >> it is and if i were tim seymour i would say if the fed stopped hiking in march i'd be very concerned. and we want to see -- i realize that rate expectations for the december fed meeting are slipping but they're slipping because they could go in january bottom line is i think if the fed fed steps out of the next two cycles it would be a significant indictment on markets. i would point out really quickly, european markets concern me more than anything. i'm talking about italian bond yields, european consensus politically that's breaking down and markets aren't price going in. >> do you buy anything on the pullback. >> the only thing i grand was a regional bank. regioning financial. interesting he brings up energy. energy has been just power for the downside it's unbelievable the bludgeoning they have taken so far.

but mike is talking about most of the damage is done that's what action makes it tricky, if there is a another big push to the downside is it on volume and how does it go. >> >> when you think about what's going on, the economy is overheating but you know what's not overheating, asian and european economy we could be on the cuss of a global synchronized slowdown in a bad neighborhood we use that a lot over the lasti have years one griep group you don't want to be in the money center banks in the u.s. >> they doelgtsly outline performed. >> maybe on valuation. >> but let him. >> you think this late in the cycle and the way they performed the last year can you think a scenario why they should outperform other than based on value. >> jp morgan is down 6%. >> all day long that's the one. >> you done? >> no i'm not, because, yes. >> when you say outperform what.

>> the last two weeks. >> during. >> at least the past month. >> relative to itself in terms of companies off the 52-week highs jp. morgan is 6% off the 52-we can pay way most are down. >> look at the kraemer camera not at me. >> i mean you're a good looking guy for your age i get a really good luck at. >> you jokes are one ato get out of a good conversation. >> banks the most defensible position in terms of record earnings, valuations are the most in line and in interest rates are going higher they're going to be more profitable until there is a credit problem. notice i'm in the box you're not there. you're back. >> it's over >> commercial. >> if you are worried the dreams of a year end rally are going up in smoke don't worry the top technician has twos names that he says survive. crude collapse down 7% hitting the lowest level in a year and energy stocks slammed. we explain why the selling might not be over. later, the retail apocalypse

neuroslough of oregons taken taking town the are the hopes of holiday rally dead on arrival. much more "fast money" right after this 35 days away from christmas, by the way.

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go through the roof. i've kept them done.

they've helped me. right now we have low oil prices i'd like to see it go even lower. >> that was president trump moments ago discussing oil prices as the commodity sank 7% falling below the $54 a barrel mechanic that's the lowest in a year. the energy stocks the worst performing sector. the conocophilips, hal burton sinking double digits in the past month will president trump's wish come interest true? guy has a conspiracy theory. >> his wish is coming true oil is going from $-71 to where we are now, the last $-7 has been basically a vapor trail to the downside do i have a conspiracy theory? i'll say this. it's interesting that oil is going down after this alleged assassination in turkey, whatever happened there. and now president trump seems to be absolving the saudis of any

guilt. one has to wonder the quid pro quo quo. get oil lower and we call it fair and square. can the oil go lower probably yes but markets take over and supply and demand kicks in. >> what's the remarkable industrial growth secretary he agrees in the question the alternative energy space, shale and you name process process o it the part of the market getting destroyed are u.s. companies, a lot of balance sheets that starpted to repair $-80 oil is fine for the economy. let's be chlor higher prices in the form of oil is not ailing the economy. it's input provides, not from energy commodities you want to see oil prices high reporter we don't want to see oil prices lower. i don't agree. >> at what point do you get worried about oil prices. >> when the dollar rallied after qe oil got steroid destroyed then it was a credit event and that got on people's radar listen, this is not -- but again

back to the conversation we were having before. when you see risk ask. >> whamts conversation. >> i'm kidding. >> just so you know my wife -- she goes i never watch the show i just watched it is it always like that? sahr are you need to med the tate all right zblot the thanks. >> thanks for catching. >> right, time. >> you you mentioned the oil space. >> i mentioned ee cona it gots lost it's a rotation we talk about rotation how about the rotation out of things and energy had the nice moveup exxon and chefrp and everything. what you see now is oil is coming down. that's why i think it's such an skrermted move to the downside there is the rotation out of certain assets that's one. along with materials where there is all this selling pressure hitting on top of it. >> is it a read on global growth and demand. >> is it the that or production. >> or supply. >> or bad positioning by traders and parjen calls coming in we are getting taps on the

folders. >> there knee needs to be supply and demand balance in oil. we got no place in two years we worked off tremendous supply. i don't think demand -- it's still up 29.25% year over year demand hasn't fallen off it's supply. >> the tech drain continues as the hot stocks cool off. a top technician tells us what it means for the market. s next chances are you own a few stocks getting swept up in the carnage. how do you know when to sell in the sellout. >> what's guy think. >> he will break it down glad you ask you're watching "fast money" on cnbc here is what's coming up tonight. clrn

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the riskiest job. the consequences underwater can escalate quickly. the next thing i know, she swam off with the camera. it's like, hey, thats mine! i want to keep doing what i love. that's the retirement plan. with my annuity i know there's a guarantee. annuities can provide protected income for life. learn more at retireyourrisk.org . welcome back to "fast money. the once hot momentum trade is losing steam and taking the rest of the market down with it josh lipton is in san francisco to break down the moves.

>> melissa, let's start with the big tech names that drove this market higher. now facebook, amazon, apple. netflix and google parent alphabet have collectively lost about $1 trillion in market cap from the recent highs. put that another way that's what apple was worth towards the peak speaking of apple another tough day for bulls there, the stock down 20% just this month goldman's rod haul slashed his price target to 128, down from the 209 in part because he sees weakness for demand in china and then the chips under pressure some chip names were in theed green in the trade the nvidia, the citron shorted nvidia saying it's now long and micron despite the downgrade from bared social media stocks mixed back twitter in the red snap edging higher in today. and high flying cloud names

salesforce and adobe didn't do much today though they got whacked this week. both still up strong so far in 2018 back to you. >> all right, josh thanks. >> let's trade it who do you think -- which stock is over >> >> in terms momentum. >> i look at semis until we get clard on china it's difficulty to see both in terms of cyclicality and dynamics of trade. jumping into the semis we hit a double bottom add on the smh i don't think this is the time to run back into that trade. >> are you in intel sfwliel i am and intel held up reasonably well but n individually intrigues me. >> why do you hold on. >> i believe in the story. i believe in what what they're doing in terms of different market err areas a i think they are stealing from n individually right now. i got to get a ceo one of these days it seems like this has been a very long time i think if they go in the right direction that gives the stock a

boost. >> one thing worth looking at we were talking about facebook last night. i don't know how twitter doesn't have a difficult 2019. we say how do you not extrapolate the issues of facebook with what is a huge push for bipartisanen regulation there were three things in the yup when if gapped up last month that i thought were troubling, although investors didn't kir. maus they lot. 9 million blaming european regulation and we also had dau, decelerated that growth and gave optimistic guidance for margins for 2019 that's likely to come down if it breaks the nic neckline i think you see it in the mid-20s in 2018. >> i saw a smirk out of chris veren. >> it's a technical term. >> in your mind. all right. chris here says that you should ditch momentum stocks. he has two other stock to buy amidst the carnage

of research partners. >> the we want to talk about what we can't own and what le start to buy start to what with he can't boy the qs well defined uptrend. we have broken that. made a lower lo unthe october lows frankly that rally failed where it should have at the 50-day moving average until the pattern of lower lows changes here i think the burden of proof is op the bears and any bounce is back to the 200-day moving average has to be sold i think ultimately 170 is resistance and we have a tough time doing better if we pick apart some of the pieces and we look at what we really think has more downside, i think paypal is a great example. this is a name that is sitting right on major support this is $73. we think ultimately that fails in correction there are no protected or sacred stocks and ultimately the best get hit.

we think there is more downside to work through here the best of the best is microsoft. this has to be to get hit harder as well sitting right on the 200. with you don't think you can go through the corrective phase with microsoft at 200. we think ultimately 85 or 90 might be right not so 1 what can we buy on the other side talk about a couple. this is an oil play on the other side united airlines. ual with, acting great in the tough tape actually making new relative highs versus the s&p here a leadership name breg out, doing it in relative terms i'll give you one more here in health care. i think amgen is interesting another name making relative highs versus the s&p in a pretty tough tape where on the verge here of breaking out better log stock, relative highs.

amgen uan it's too early on paypal or soft >> the we will bring the chair in there is no vote. >> no voting anymore. >> that's it. >> dictatorship when it comes to inviting people over >> as it should be. >> so was there more downside on the nasdaq does that mean there is more down on theed s&p 500. >> yoend if it happens in the first two weeks. but probably lower prices into the first quarter of 2019. i recognize. sinslety is a tail edwin. >> petes has a bug he is looking funny. >> go ahead. sorry. >> goes with the two good looking guys. >> yes. >> i think ultimately lower prices at some point there is a seasonal tailwind. you could get a bounce but what stood out too many there was more calls on the s&p than puts that's not real fear good lows are accompanied with

cath arctic moments. the trend reading was 1.4 you want that above 2 or 3 there is more work on the downside the question is it next two weeks or next quarter my get is nirs part of the quarter. >> is there a bottom that is made gradually as we see i talk to strategists during the day on power lunch some believe that can happen there doesn't have to be the wig moment of fear capitulation that this happens over time. >> we have looked at lows back to the 1940s i can't find a gootd one without at fearful moment. >> back to the 90s. >> what with see a bang, a high-volume high drama day followed by a whimper, lower volume, less dramatic, even undercut of the low. have we had the bang yet i'm not convinced that we have seen that moment yet. >> chris pete was talking earlier about rotations throughout this year we have seen rotations but a big churn year let's say the megacap tech is not the leadership if we come

out -- if we bottom, is there a couple of groups that can do that, take the place the megacap tech. >> i think this is an important question if we come out of this with a door advance rotation isn't good enough we are getting new money in we need evidence of stocks accumulated. i don't think we have seen evidence of that inthe last 12 months and we talk about the in rotation game. surely f2 the rotation there must be a rotation winner somewhere. i don't know of any. i don't know who is selling tech at the right moment to buy health care at the right the moment i think ultimately real money has to come in we haven't seen that in 12 months. >> not to answer your question not that chris didn't. >> capitulation or triangle of death. >> tops are processes and bottoms are events pete was about to say this but he was going to mention nvidia and we talked about it and he said if you happen to see a day down to 138 on big volume

and reverses that's the big day. >> that's what happened. traded down to 135 level we talked about while i was in the car on thursday while the governor was playing cribbage in the storm if you recall. and that's what happened that was an event. >> what is kripage. >> omnii'm not sure. >> some gim. >> it sounds good. >> on the top of the reversals we have seen -- i didn't look at the volume on facebook or amazon intraday we saw facebook in the dwroen and it reversed are these positive signs >> i think there is enough damage done in a lot of the stocks where a bottom isn't a one-day event. i think this takes months and months and months to prepare, not different from 2015 ob 2016, 1r0u, 1207 it takes time not a singular event. >> quickly chris is there such a thing as the triangle of death. >> it's the first i've heard of it. >> flying over bermuda. >> that's okay

it works -- whatever works for you. >> he is coining phrases right and left some say good. >> we are going to squa into something here. >> salesforce. plunging more than 20% from the high last month. the options market implying another big move what do you see dane. >> salesforce dpg. crm this is uniquely positive sentiment, 9% move over the next week most for earnings. the stock is in connection territory but still up 17% on the year high valuation name. the important thing is when you think about this is how will you react to news that's likely decent this looks like momentum one that is chris was will go at breaking the two-year uptrend. that's dicey look at the 5-year now and puts in perspective the move this stock had breaking out in early

2017 there is not a lot of support if there is no fundamental reason to buy this stock on the downside near term. >> we are off this friday. so you can pop into our vcr rerun of "options action." we will have a full know next friday on 5:30 p.m. targets lowes and l brands getting crushed after earninged to today is this the retail apocalypse plus bitcoin sinking 30% in a we can. but bart smith says he would be allish even if it traded down to penny find out why when "fast money" returns. >> announcer: "options action" is sponsored by think or swim by td ameritrade. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work.

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welcome back to "fast money. the retail wreck raging on today as another slough of earnings reports takes on the group let's get to courtney reagan for details. >> the retail selloff is about a couple of things first the expense of fulfilling online orders and secondly a fear that the good trends are end and the consumer strength is waning but foot locker was beating on profit, revenue and comps and the ceo says the holiday quarter will be stronger shares higher by 13.5% taggart shed 15.0% after a mixed report this morning. revenues boat. comp sales missed slightly but grew 5% with traffic up 5% too

and dlaj sales grew 39%. but margins fell because of the pressure of the fulfilling the online orders plus upping the holiday vrnlt as target expects a strong season. lowes beat on top and bottom line but the comp sales and margin disappointed. but the new ceo is working on exiting non-core businesses and they think the home improvement back drop is supportive for lowes going forward but show shares down. l brand reported after the bell machined but the we canness the retailer named a new victoria secret ceo but slashed dividends in half. they say both moves make sense but fear that the market pressure will continue some time shares down 17%. overall investors seem to be worried the best is hipped us when it comes to retail and the turn around wove been in started last holiday season and could be running out of steam

but target and best buy ceos try to assure the market is consumer is just as strong as it was several months ago we'll be the judge we got black friday coming up this week. >> big day for the retailers and for you court, thanks courtney raying pete to you first. because target down 10.5%. >> still love it. >> still love it. >> look at the traffic numbers and comps appear over 5% that's amundsoning. >> double box. double box put it on what did i say to you last time? what did i say to you last night these are tripping over each other get you your digital stuff. >> the digital growth is over 49%. it's over 70 of the the last two years appear given up some on the margin because of that they added to inventory. and people voo that as negative. maybe they are getting in front of the holiday season where they have the strong consumer. >> if they don't this is what courtney said the compares i got to tone down

a little bit >> the wife is still watching. here is the issue, right we have the all important holiday selling season they had difficult compares. if they don't cut -- if they don't come in better than expected what do you think happens the first few quarter sns not only that how many billions in inincentive did amazon get for the two hq 2s don't you think that makes it hard reporter for other retailers to compete when amazon gets billions in incent zbreefs can i play peace make >> subsidize amazon. >> i have a swech on first of all i think the dpchlt rt is overall sold you have the 29 high pressure day rsi even through the lows of last year before the holiday period. but if i was playing target versus the rest of the sector it's long targetversus wal-mart i think the trillion dollar consumable area is why a amazon want in this space

they want to be in this space with zero margin xrt is oversold into the holiday season where you get good numbers. >> what side of the screen are you on >> pardon me. >> pete side, in the middle with the tim. >> i've been a switch. it couldn't be a more boring place. >> beautiful. >> out in space out there. >> i don't want to offend him but it's true. >> i'll say this pete mentioned inventory. that's what i was going to mention. inventories were up 18 -- 17.9% year over year this is what i say i don't know the answer but this is why people make the big bucks. if you believe that brian coronell is a great ceo the fact that ceos are up maybe he is saying what pete is saying be maybe they are getting in frop of something. but if if doesn't work out with the inventory build margins could be disastrous. i don't know. >> that sounded like switzerland. right down the middle. boring >> it's all in how many people

you hire or if you have hired too many, right. same sort of idea. >> coming up, another wild ride for the markets, the dow falling 60 oh points at the lows. the stocks continue to sell oh off and how due now when it's time to wave the white plague. guy has three things to watch. plus the cryptocrime scene by the waycoin crashing po%. are there clue of a bottom in the cryptoking bart smith will be here. more "fast money" after this

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welcome back to "fast money. bitcoin down more than 30% abthe currency fell to 4,200 the lowest level in a year seema modi with more on the move. >> the that's right bit skouncoin down today, dropping 65% this year. and more than 75% from the all-time high last year. now, the move south accelerated after a contentious zpout over bitcoin cash's hard fork rk sparking investor concerns adding to a whil wind of the regulatory worries against multiple currency digital platforms. they say the broader selloff and shift away from speculative plays to higher quality assets process is driving the pull-upping. the broader crypto space has crumbled with it many the bitcoin peers fallen in tan fem ethereum and rip willing down

it's taken a chunk out of the market cap from the digital currencies from january high according to coin market cap last year bitcoin gained 70% between thifgt and the end of december. meantime, the bitcoin bee tom lee slashed his price target so 15,000 from $25,000. as for technicals some analysts say we could see minor support around 3,500 with the next major level being 3,000. melissa. back to you. >> the seema, thank you. by the way, tom lee's forecast that's a year end. so it's like a month plus. for more on bitcoin jovial let's bring in bart smith. we call him wall street's crypto king great to have you with us. >> hello. >> is this capitulation? have we found a bottom are we close to a bottom where are we in the selloff. >> there are a couple of factors leading to this this number one the on ramp is

difficult. if you are a global institution it's still difficult for you to buy bitcoin the pennsylvania way you might want to. a wealthy individual from the gi generation is not taking a high resolution picture of the driver's license and send it to the website and send money there. they want to invest at fidelity, baepg of america that leads to the second problem without the new capital on ramp liquidity has low. wove scene a stable prize all through the summer it was at 6,000 give or take but volatility got right the end of october. the ten-day realized was like nine. >> no where. >> what happens is in that environment when you have the contentious fork and the the two constituencies conduct might be defined as juvenile and maybe the not generating confidence. and there is no liquidity to absorb without the. on camps with backed and

fidelity and further regulation there is not kpal to soak it off when you have selloffs you can't absorb it. >> is there a fundamental case that can be made for bitcoin the case for store value seems a hard case to make at this point. and also the thanksgiving that bitcoin is a prafrm and that if built and used the price should go up. that doesn't seem it's a good argument anymore either. >> the it was designed algorithm to the last bitcoin would been mined 2140 for a reason. there is a lot of talk last year and it was at 8,000. the thanksgiving before that at 750. the thanksgiving before that at 350 in the 2010 someone bought two busia for $the who thousand bitcoin that today, worth 40 million if you bought the the when they were launched to now has been painful

but every great idea is volatile right, amazon which we talk about over and over on the show went down 95%, from 106 for the $$6. and people wrote it off as dead. a and so i think that, yes, the pris action has been difficult but the idea of having a peer to peer sovereign non-centralized you know store of value or peer to peer cash is something that's been desired for a long time and the price action from now until the he said of the year where tom lee might or might not be wrong into next year is not defining if bitcoin is successful the use of it -- the you're usership has to expand. >> does it hurt the trade if you think of tom lee as somebody from mainstream equity strategy bridging the divide by coverage of bitcoin for him to stand by a 15,000 price target at year end does that ultimately hurt the space in your view. >> i don't do price targets.

if someone asked me where could it go sno i would say taut thanksgivings ago it was at 750 and the last year 19500 sft somewhere in there which is not a great market. i think we in this world think about bitcoin as an asset class. and that's not what it originally was we turn it into an asset class and we have discussions about the correlation to traditional asset chesses and david swenson, who literally wrote the books on endowment investigative. investing money money into it shows there is a value. >> illustrate to businesses, though as opposed to the cryptocurrencies themselves. >> that's correct. for this to be successful usership has to increase and that may or may not mean the value goes up. in the united states it's difficult. like, you know, venmo and american express works well "fast money. that was not necessarily what it was designed for but the desire to have a non-sovereign form of currency has existed forever. remember it came out of the

depth of crisis let's see what happens next year. let's see if the central banks in the united states and in europe can really unwind in thing successfully. >> right. >> and then we'll see what people want to own. >> all right thanks for coming by great to see. >> you thanks. >> bart smith aka wall street' cryptoking. >>s since we started talking about cryptoand other currency processes a a trillion now back at 10 oh 37 low single digits if that's how you want to be exposed to it that's you do it. >> still ahead a broulgts come of months for the markets. and guy will tell you whether it's time to hold them or fold them amid all this selling jim says there is a silver lining what oh could it be? find out, top of the hour. much more "fast money" right after this you've gotdge-to-edge intelligee near real time inventory updates.

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stocks seeing red today. s&p 500 falling back to correction territory erasing gains from the year. nearly half the indexes in bear market down 20% or from highs as the selloff has gotten brutal guy told us how to spot the bottom, how to know if it's getting worse. how to keep your cool. but if you've been burned by the markets he has a new lesson when to surrender to the selling. in the segment we call the more you know. >> hi, everybody you say at home within yeah you tell me this now the market is down 1,000 points.

thanks for nothing, guy. but, you know, things are going to happen again. these are the things you should look for next time around. let's take a look, number one stock doesn't rally on god news give me an example a great example. the first example over the last month or so was netflix. recall, they reported pennsylvania strong quarter. the stock went from 330 to 360 we talked about it it saying it better build otherwise bad things could be in store here we are $100 later you say that's one example yeses it another one. macy as and wal-mart same thing company throws you a curve ball. in the business we call that a uncle charlie or yacker who through us that? apple did. they came with something completely out of no where, startled the market scared a lot of people you've seen that stock

go from $215 when they said it down to now. the market doesn't like curve bulls just batting practice fastballs. but you don't always get them. and this is something pete talks on the other side about. insider selling is sometimes scheduled sometimes it's part of a plan but sometimes you see newark insider selling. i got to tell you something, like he haddy must have beeny in the not trading prays. his mama named had you him klay. i call him clay. if an insider is selling you should be selling. hi tim. >> nasty cheese up and off the flate. great company with you sell it in the market. >> which one. >> apple. >> the no this is a level that people have been bigging for how many times -- i want apple at 180 here it is on that silver plat

zbloer thanks, guy, the more you know up next, final trades.

final trade time pete najarian. >> call buys in sketchers, the recent earnings impressive it's going highe >> tim. >> airlines have been defensive oil prices are not don't sell the winner delta airlines. >> and nathan. >> i'd sell delta in trading raenl. and xlf. you sell. >> split them up

splet them up. >> guy. >> splet them up >> isn't it great that dan's wife is watching and wants him medicated. >> meditating. >> anyway. diagnostics ahead of investment sfl see you back here tomorrow at 5:00. "mad money" with jim cramer starts right now there is always a pull market somewhere. and i promise to help you find it "mad money" starts now >> i'm just trying to save you money. my job is to entertain but to educate. to teach so call me at 1-800 cnbc or tweet me@jim