if the dow and s&p close lower, it will be sixth down day for both. look where major averages are ending the day. [closing bell ringing] we said they would be down probably 200 points at close. look as the screens evaporated there, down 204 points at close. there you go. all of it gone from this morning. that conviction we got from the move out of china evaporated. ashley webster has more how stock ended the day. ashley. >> melissa, fascinating to watch that and a little dismaying to see how markets dropped last 15, 20 minutes. nasdaq as you say down also, marginally the s&p down to 1867. there was a sense throughout the day, in the market, even when we were up 300, 350 points there was lack of conviction. someone said, it was unconvincing the trading today,

not particularly a lot of conviction out there. there were still concerns about china of course. of course of global growth in general. that's why we've seen this sell off. those people that made profits after picking upbeaten down stocks, decided to cash in before the closing bell today. as we see the dow off 205 points after losing some 588 points in yesterday's session, guys. melissa: what was the buzz on the floor, ashley, as we were getting ready for the close? this morning we saw the rally, a lot of people were asking why is this? it was basically out of another move of china. we've seen two in past two months of the was that enough for bounceback? what were traders on the floor saying. >> no. the rate cut was announced by china, fifth one in the past nine months. it didn't do a whole lot for confidence here. as i say from the very get-go the futures jumped to 600 points before we opened. melissa: right. >> stuart varney was complaining

about it all morning, where is the 600 point jump? we only got up 350. we thought we would start to build from there but we never did. as we went on there was sense of dread we would start to lose steam and it really picked up in the last 30 minutes. those buy orders vastly outnumbered sell orders -- rather, vastly outnumbered the buy orders and really accelerated into the close. connell: very interesting after the chinese made that move and there wasn't much reaction to it, ashley as you point out, how do other markets, particularly chinese market do last night. particularly their time. the market hasn't opened since we cut rates and closed in disappointing session? >> they had two very difficult sessions in shanghai. ironically other markets did well. australia, singapore, nikkei in japan made gains. interesting to see what happens in asia overnight. connell: thank you, sir.

gerri willis also with us today in the fox business network newsroom. we're taking a look at some closing stocks, some widely-held stocks, apples and mcdonald's of the world how they're faring as we headed into the close. everything seemed to turn negative and turn up negative gains. how are we doing, gerri? >> that's right. let's talk about impact on individual investor psychology and i think this is hugely negative today and let me explain why. look this is no different from individual investors standpoint what played nut2008, what played out in the dot-com selloff. a selloff is a selloff to individual investors. they thought we made the turn this morning, right? they thought there was a change. that's not what happened. i tell you this can not be good for individual investor psychology. yes they have their money in long-term investments in

401(k)s and not move it. the whole shrug your shoulders is the attitude and that is exactly not what we want to see. when it looks at individual stocks, we were looking widely-held stocks here, we looked at apple up 5.6% after a low at 92. i want to see if you guys have the current stock price because my prices are out of date right now. apple is up a little bit. even though this has been a market bellwether. apple is the conduit for every rumor in the tech market, every rumor about its own future. it seems like everything is baked into this stock. and we take a look there you go, apple shares, you know, pretty strong compared to where they have been. but i have to tell you, individual investors won't keep buying these stocks. won't come back to the bellwethers if they think this is where we're going, it will be this volatile. they don't like that. connell: you're right. you're absolutely right, gerri. thank you very much,

gerri willis in the newsroom today. to get more into this reversal in the markets in the final half an hour of trading first let's look back to take a look where we've been here. last wednesday, for example, in this market, really amazing when you think about the statistics. 35on thursday, 530 on friday, 1600 total points, we'll stablize and get out of it today, not so much. jonathan hoenig, founder capitalist pig hedge fund. scott martin, chief market strategist, united advisors, also fox news contributors. you would think scott would be smiling more. we're paying him for this appearance. >> you're paying me? connell: we have chief investment officer. somebody has to smile today. on that note, bob, why don't i go to you first on this. what does it tell you? what is the message, what is the message that the market is telling us in the final half an hour today. >> uncertainty, fear. certainly fear.

not knowing where it's going. not knowing if it has come to a conclusion at this point. the, there is a lot of negatives out there. connell: anybody surprised. >> a lot of people realize that. connell: we go to jonathan and get scott, any surprised by the way the day played out today? >> i'm not surprised, connell. i'm disappointed. i agree with what bob said. uncertainty, the problem with uncertainty is the following. you know china is in trouble. you know europe has been struggling but i guess what you rely on is strength of u.s. companies and strength of the u.s. economy. when you invest according to the what the u.s. economic data tells you, we have growing economy. connell: right. >> we have jobs being created. we have strong housing market in last three years. it doesn't work to, bad drop in the market, 500 points, 600 points down, that hurts investor psyche. that is where we are.

we're in decoupling, strong economic situation or decent one in what is very bad market tape. connell: first to jonathan, back to everybody else on that. in most simplistic terms how much does china matter? we can argue how much our economy is improving, things are getting better or at least stable. how much does china matter, jonathan? >> it matters bite a bit with the asian contagion with currency crisis. started in one part of the world and ricocheted throughout the entire capital markets. it is very likely you're seeing same type of action here. down me among those surprised by swings we've had. 3,000 point swing in one or two days is something unusual for markets. investors have good reason to be nervous. >> sometimes when we see things, especially investors doing a while, you kind of shrug, these things happen.

in reality these things don't really happen, the type of swings to jonathan's point, bob, we've seen last week or even two days. we don't see days like this very often. just intraday swings like this. >> if you don't mind, let me just ask the rest of the guys on the panel, where is the engine of growth going to come from? globally, globally? connell: relying on china to your point? >> relying on china. i agree with the last comments. china is very important. connell: does anybody have -- >> if you look at gdp in the united states over last four years it is chris phrenic. who says it will not be schizophrenic moving forward. connell: anybody have comment to that? look at china, connell, look at breadth of our own market. put aside international component, looking substantially more new lows and new highs in all major exchange indices.

even taking china out of the picture here, the average stock in the u.s. is not doing well. it is downward because trends tend to persist. this is worrisome sign. connell: bob's point where will the growth come from if it is not -- we didn't think it was in china if we ever think it was, a lot of companies will rely on where will the growth come from, scott? >> it will have to come from the u.s. consumer, who thankfully paid down debt last few years. they were in better financial shape than coming out of financial crisis. in theory they have had a energy rate cut or energy price cut with what happened to oil prices. connell: yeah. >> that is where it could come from, whether it will or not, connell, is the question. i will tell awe decently strong stock market and growing gdp suggest the consumer in the united states is probably in better shape than what we three are giving credit for. connell: we'll wrap it on that. come back to some of the issues throughout the hour. thanks to all three of you guys

joining us here. melissa. melissa: they will stay with us. don't move a muscle. we bring in gary kaltbaum, president of kaltbaum management. thanks, gary, for joining us. does this show you, china coming into the market to give more kool-aid? we saw the market jump 300 points and fad fast. is the magic very thin. >> melissa i have to measure my words. today is somehow the worst of all worlds. >> that is not terribly measured. >> go, gary. >> when you have a market done what it did over last few days, finally have a relief rally, on that same day they drop it on its head 600 points, that tells you big money is still selling and selling ferociously and have no interest in stocks even at these levels, tells me there is more time and price to go which means we are going lower. melissa: yeah. >> worry is, i've been saying

all along, too much margin, too much leverage, that hasn't come off yet. i think dislocation continues. melissa: scott, how do you respond to that? that feels like what it is, you say the economy is stronger than we're giving credit for? i don't know about that. >> the consumer, question earlier from bob where is the growth will come from, that is where it comes from if we get it. i think the overall u.s. economy, given it is largest in the world is little bit stronger than we're giving credit for. whether that will boost stock prices tomorrow, two weeks, two months, that is anybody's guess. if you're looking to invest today, buying stocks a year, two years from now, i think you can be confident buying tried and true names with earnings growth, revenue and cash flows. that those prices make you happy in the future and not destroy you. melissa: jonathan, i don't know how the consumer will come in to be stronger when we're looking at wages that haven't increased.

looking people who replaced full-time jobs with part-time jobs. housing market that has recovered but not robustly. we're looking at interest rates going up. where is the consumer? only conceivable place they get money is decline of price in oil. we haven't seen that being spent? >> melissa, respectfully we don't trade the consumer, we don't trade the economy. you invest in stocks which is really investing in a valuation. not only some names from industry you alluded to that are weak. look at areas led market. reits at new 52-week low. utilities selling off. commodities and high yield and demand in china really boosted this market for many, many years. that type of trend now evaporated. commodities at decade plus low, to answer bob's question what will lead the market higher i'm looking. >> melissa? melissa: give you a second but i

want to bring in charlie gasparino because he just arrived. charlie you were unconvinced of this rally earlier. i heard you on the air, they were talking about the bounce back, you were like, no. >> i'm unconvinced particular at the 2008 financial crisis, and would stare at numbers. the rally never seemed convinces. futures were up 300 points. most we rallied was 300 plus, maybe at most 400, i don't remember, but it was never sustainable. other thing is underpinnings are very weak. i use common sense. fed at some point will have to raise rates? why do they have to raise rates? because they need cushion if they ever a recession during election year when they may need to cut rates. we may get a rate raise in terms of china's problem. we candies count them as trading partner. yes, they have 7% of the our exports. how much of our gdp is dependent on china itself but this is huge

industrial economy. it does a lot around the world. it hiccups, rest of the world feels it to some extent. on top of that our economic growth is not very strong so a hiccup can hurt us. i use common sense, you have to raise rates at some point soon. china is problematic. ray dali-o, investor runs bridgewater associates, the big hedge fund, says things could be so bad he is calling on qe4 next year. i don't like the stock market. that doesn't mean it won't bounce back at some point. i said this today, too, i think this is important, watch how the market closes not how it opens. it was a ugly close yesterday. a real ugly close. this was a complete crap show. only way you can describe it. melissa: charlie makes a great point, the fed painted themselves into a corner, could have raised six or nine months ago. didn't. left it at zero. now china is slowing down. god forbid anything happens they

have nowhere to go. they can't loosen any further because they haven't raised. >> the fed and its credibility has been shot. i'm worried if they announce another round of qe, printing of money, market may throw up a certain finger at the fed and not listen to it. that is something that has to be watched. asset prices are either forecasting a recession here or they're going to cause a recession here. i'm a very big believer, a lot of our economy has been based on bubbling up asset prices and making people feel richer. if asset prices keep going down, they will feel less rich and spend less. here comes the recession. melissa: scott what do you think of that? >> well, i think asset prices certainly have been slumping for some time now but market has stayed up. now if you're looking at the fed and their whole play in this, they could raise rates, melissa in september, they could raise again in december, may not matter. >> no chance. >> look at this way, as the fed

gotten closer to rate hike, guess what happened to interest rates? they have gone down. fed can kick a couple of rate hikes into the market and may not really matter and give them ammo for 2015. i don't think this will be european scenario, in one breath they raise rates and one breath they cut. i think they stay out of completely. connell: a number of elements to dive into. larry shover joins us from the pits of cme to add his perspective. everybody else stays with us as well. what did you pick out today, larry, what a close? >> what a close. roller coaster ride continues. i'm taking outlyer view, this reminds me of object 2014. remember we had 10% peak to trough move in october? there was no singular reason why. i think today the same is true. this is sentiment, not to say we don't have issues and problems but nothing that is clear, nothing's new under sun. china is growing. growing from a very high base.

there is a commodities collapse. keep in mind most of it is supply driven. week ago, two weeks ago, nobody talked about earnings and high valuations except for a few people. all of sudden everybody is worried about it. so i do think, can we drop tomorrow, can we drop next week? sure. common sense for investor right here is there is a huge discrepancy going on between sentiment and fundamentals and right now they do not match. connell: that certainly gives us something to talk about. jonathan, your view then on discrepancy that larry thinks is there or feels there between sentiment and fundamentals? what do you make of that? or do you agree with it and see it differently? >> i think you need to often times forget the fundamentals because the stock market doesn't reflect fundamentals, to gary k.'s point, anticipates them. a forecasting mechanism. >> correct. >> so many elements of market,

high yield, leveraged loans, these are really growth areas and stocks for market quite some time. they're all selling off. you almost feel if something is brewing in this market. until we get the major capitulation hard to come in to put bids in since the market is down year-to-date. >> jonathan, really difficult to gauge china how bad it really is or how good it is. melissa: great point. >> we only know what the chinese government is doing. it is printing money. intervening in the stock market. putting in people in jail who want to short sell. those are concrete things that the chinese government is doing. we don't know, they don't have accounting system over there. we don't really know how bad economy is. jim chanos, great investor talking about this for years. this is very problematic economy that's a bubble. if it ever, got any, if it was exposed to the light, you would see the cockroaches run. it is problematic. so alls we know is what the

chinese government is doing. the market i think is saying, okay, maybe it is growing 5% as opposed to 8% which is still damn good but investors are saying we don't know if that 5% is 5%. melissa: really true. gary, let me bring you back in, who was telling us this? the oil markets were telling us this of the we've seen oil decline and decline and decline. it always has been driven by china. as it went lower and lower you're saying this is the canary in the coal mine. oil is trying to tell us something, there is global slowdown charting in china. go ahead. >> everything has been telling us. commodities topped out 30 reason months ago. semis topped out in march. these are news for you, stock market doesn't drop 16 to 18% in matter of weeks if everything is a okay. >> good point.

>> i get comparison to last october but if you recall last october, europe and japan both announced a trillion or two of their own printing of money. china started easing. that is what juiced things up. i'm not so sure anymore juice is out there. and if it is whether it will help at this point in time. connell: good panel, good discussion and not over yet. we're getting started on "after the bell." we'll continue on a day yes, in which the dow fell over 200 points. hard to believe from where we started. melissa: we'll be right back. ♪

melissa: wild day for the markets, up over 400 points at high. closing down over 200 points in the last minutes of trading.

fox business's liz claman on the floor of the new york stock exchange. liz, i watched it evaporate and go negative on your watch down there. what was it like? >> i have to tell you it is a little more stunning right now to look at final number, melissa. i'm with steven guilfoyle, how many years, 30? >> 32. >> 32 years trading here and working hire. and he told us sometime during the 3:00 p.m. eastern hour watch out for level on s&p of 1905. that will maybe see support. if we go through that, look out below! you can see final hour, we lost nearly 26 points. >> we sure did. happened so fast. could see certain things like that, vix still minus. gold didn't go plus side. a lot of things counter equities didn't have time to react. >> was it stunning to you that we lost as much on s&p and do you. >> i expected some at the close. i expected downward movement but

this was fast and furious. >> art cashin, head of floor operations know him well, he came running past, watch 90% of the trades going through at close will be sell trades. sure enough that is exactly what we saw. he told me that around 3:5. what look at see the negative sentiment, but to see the dow up 400 points and then down 204 points can you tell me where we'll be tomorrow? >> that probably was just a head fake. now we have to see if there is i in hard news coming out of china tonight to see if we reprice this. >> he is saying china still holds the leash on this pup. what do you think? melissa: absolutely. liz, you mentioned that moment with art cashin. i was watching, i had tv on, volume up. i'm listening. i heard him say that to you. i snapped back towards the television. you're right that was little after 3:00. that was surprising moment.

we knew it was fading but he was indicating how much of a fade it would be at close. amazing stuff. >> that is exactly what he saw. melissa: all right. thank you so much. send it over to connell. connell: that is why we're watching so closely with china to see how that opens. market drivers today, almost like you can't plan out what you say ahead of time because things change so much last half an hour of trading. we'll to go inside of dow jones industrial average. stocks taking it down almost 205 points after being up nearly 400 plus in the session. you can almost pick them out here. say, just for example, microsoft, goes down 3% and closes at 40 bucks. look at it intraday. this is 43. microsoft is up 43. this right in here, that is last half an hour of trading. these are biggest laggards in the index or dow jones industrial average. and look at the cliff intraday

that merck is falling off to end up 5% lower. all these big companies and big stocks are similar. j&j, 90.73 at the close. this is 95, almost 9level it is at. gets to 94 and heads down. we're lower, melissa, for six days in a row which is remarkable in itself, firmly in correction territory. almost more than 11% down for s&p and nasdaq now. melissa: thank you connell. let's bring in famed investor wilbur ross on the phone. thanks for joining us. in past 24 hours i've been asked by people what should i do. for you thousand times more. you are a famed investor. what are you telling people they should do right now? >> i think what people should do, pick out the favorite stock that they missed, they failed to buy the last time they had an opportunity and put in some bids

down 5%, or down 10, hope they get hit. melissa: what are you doing specifically? >> similar things. melissa: really? you want to tell us what some of your favorite stocks are? what looks good to you? >> after we buy them i will be happy. melissa: is there anything you picked up in the past 24 or 48 hours you can tell us about? >> no. we put in bids on monday, very early, when it was very, very down but turned around before they got hit. so we kind of recalibrated again today. hopefully we get something today or tomorrow. melissa: did you recalibrate lower from there, now that you see what is going on and you wonder what is going on in china overnight? is your recalibration higher or lower? >> a little bit higher. melissa: interesting. where do you think the market is going over the next few days? because we've seen over the past six days we watched the dow lose 10%. aggregate that. that is a big move. >> it's a big move and it shows that it is a panic-stricken thing this.

is not fundamental driven activity. the idea they took the financials way down this afternoon apparently on the sudden realization that with all the turmoil it was unlikely there would be a rate cut, i mean a rate increase by the fed in september, would have thought people could have figured that out before now. melissa: but you say there hasn't been a change in the fundamentals. i think that a lot of people fear that there has, when you look at what is going on in china and how aggressively they're trying to defend their economy, we all say you can't really believe the numbers coming out of china but when you look at their actions, they certainly is concern. look what happened in oil and collapse there. that tells you a lot about demand around the world. it does seem like fundamentals have gotten weaker. >> as you remember from other times we've talked, we have not believed that china was growing at anything like 7% anyway. because if you look at physical

indicators, electricity consumption, natural gas consumption, steel consumption, railroad freight car loadings, cement consumption, automobile consumption, luxury goods, they have all been getting pasted. therefore that is not consistent with anything like a 7% growth. so we think it is maybe 4ish, 4% or so growth but surely nothing like seven. melissa: you're comfortable what is going on in china? you have that built into already in your view of the world. what do you think the fed should do, what will they do and what should happen? >> i personally have them to raise rates in september. you can always find a reason not to raise, not to raise. melissa: right. >> my worry if we don't get going soon without raises, there will not be any bullets next time recession comes along.

there will be another recession. melissa: is there i in chance that is right now? that is one thing charlie gasparino mentioned earlier, and other people are worrying, the time has passed, we don't have bullets, we might be heading into recession right now? any chance that is the case in your mind? >> i don't really feel that i think commodity price thing is more or less due to china. they are the world's largest consumer of oil, largest consumer of iron ore, coal, grain. go through the commodities, copper, nickel, aluminum. so it is really very individualized, that part of the equation. but some sectors are doing very well. as you know we're in marine transport and particularly crude and product tankers in quite a big way and their businesses actually have been fine because they're a direct beneficiary of the lower bunker fuel cost and

meanwhile the physical volume in oil is very good. oil's problem hasn't been so much lack of demand as it has been excessive supply. melissa: okay. >> and it would be different if supply were constant and price of oil were still collapsing, then i would be worried. melissa: interesting. wilbur ross, thank you so much for coming on. i like what you said. picked out favorite stocks. set a price for them. didn't go low enough to hit that bid, now you readjusted a little higher. that is inciteful to people out there trying to figure out what to do. we appreciate your time, wilbur ross, thank you. not having the best week ever. hits keep coming for fed chair janet yellen as september shapes up to be a little more than she bargained for, connell. connell: we'll talk about the favorite stocks, we'll talk about technology. maybe some of these names are on the favorite list you want to go after, apple, netflix. more coming up. ♪

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you could feel it coming. air was coming out of the markets. as you say the dow finishing down over 200 points after being up over 400 points earlier in the day. not for faint of heart, grab your antacid, call your psychologist. all 10 sectors s&p finished in the red. ironically earlier in the session all those sectors were in the green. just two dow stocks finished in the green, connell. apple finished up .6%. nothing to really shout home about. didn't bring back losses from yesterday. disney gain ad half after percent. big losers, merck, the drug company down more than 5%. chevron which has been beaten up in the energy sector down nearly 3%. microsoft, so much for tech bringing us back, microsoft finishing the day down almost 3%. so those gains quickly evaporated as you say, connell, and certainly in the last 15 minutes got a little ugly. we'll see what happens tomorrow. connell: exactly. you mentioned looked pretty good

early in the session. ashley, thank you, sir. melissa: stocks ending in session lows. the dow down 200 points after being up more than 400. stock market wild swings couldn't come at a worse time for janet yellen and federal reserve with weeks to go until much anticipated fomc meeting. scott, jonathan, gary are back along with lance roberts and lake midel. looking at what janet yellen is staring at now, will the fed raise rates? do they have guts to do it? dan, i will go to you first. >> i think they put it off until december time frame but realistically depends what happens and data dependent out of china. i don't think they want to destablize the u.s. markets and that in fact could happen and i think it is coming next year. melissa: lance, taking a big risk.

we talked about this earlier. moving to a position where feels like fed doesn't have any ammunition. i suppose they could invent something new to do way they did last time but we've seen zero rates all this time. we haven't seen tremendous growth. we're watching china slow down. they have painted themselves into a corner. what do they do if things really go off the rails? >> that is the real problem here. that is again interesting about the conversation about raising rates. why do we raise rates? we raise rates to fend off strong economic growth to increase inflation pressures in the economy, right? we want to maintain price stability. we don't have any inflation and real economic growth as we look below the surface. raising rates would be dangerous. i have been writing for months they wouldn't do it this year and probably next year. fed lizs quantitative easing, asette prices don't translate with the economy. san francisco fed came out with

that study. doesn't leave them policy options of the they may have to raise rates, even though they know there are consequences for it simply to have tools in the gun. melissa: if you could artificially print your way to growth we would have done it for decades. >> absolutely. melissa: now the fed is in the situation where raising rates is dangerous and staying pat is dangerous. what should they do? >> that is absolutely correct. melissa: leif. go ahead. >> they have to stay pat for now. there are is question what rabbit can they pull out of the hat? we've been pulling rabbits out of the hat with all the quantitative easing we've had. this will be tricky. clearly if you look at one to three-year treasury bond index, prices are rising and interest rates are falling. it is not helping any type of a rate change here in the future -- anticipating any type of a rate change into the future. we're hoping that other countries quantitative easing,

european central bank, that that would provide some stimulus, that certainly has not had the impact due to greece and other problems. we're turning to china hoping they will pull a rabbit out of the hat and pull off something spectacular. they're obviously hesitant as well. what did we see today? quarter percent of a rate decrease. melissa: gary, we saw a number flash on the screen. a new ap survey show 70% of the economists see slow economic growth below 3% next two years. we sat at this emergency stance all this time. still all we have gotten for it is below 3% growth? >> don't forget also, they have screwed the savers for the last few years. you get zero percent on your money. there is no more riskless savings anymore. they distorted high yield market to ridiculous levels where price and yield were distorted and that is getting its comeuppance also. now as far as the fed, the

new york knicks will wind nba championship before the fed raises rates. no chance. think about this. they haven't raised rates in 10 years and they will raise rates in the middle of a financial meltdown at this point in time? there is zero chance. i am on record that the next move that you will see, you will see rumors of qe4 and then slowly unleash that. that is all they have left in their ammo right now. melissa: scott in light of this very depressing discussion we heard wilbur ross say earlier in the show that was getting back, got to know what he is talking about. he made billions. he establish ad price which he thought some of his favorite stocks were bargains. he wouldn't tell us what his favorite stocks are. he obviously believes in them. he wasn't able to fill the orders. he is out in shopping despite what all of us are saying and agreeing to. >> i think that is mart thing to do, melissa. while you guys have been talking i've been slowly accumulating guns, butter and canned food. i will share them with you too.

don't underestimate the central banks around the world. don't underestimate our u.s. fed. there is this old saying says don't fight the fed. i agree with gary k. i think they come out with something again going to be more stimulative in the future here. i still think the way to go here is to find stuff you like, like wilbur ross said, whether it is cheaper, whether it is today, if you want to start nibbling start adding that in your portfolios in one to two years you will like where it is going. melissa: we have to go. i know you guys have more to say. we'll keep you around. don't move a muscle. we have to squeeze in to pay bills. thank you very much. connell: knicks are not winning, but mets might win world series before the fed -- anyway, we're down 200 plus, who knew after everything that happened earlier in the day. a lot happened in the commodities complex. oil and gold next. ♪

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connell: if you like markets that are up, you didn't cheer with brutal close. gold was down by $13. we're joined from the pits in chicago by ira epstein, lin group. get a quick take on gold. we had a lot of federal reserve discussions, a lot of dollar discussions. what is going on with gold? >> this environment safe haven came out. gold has gone from 1073, to roughly 1168. if you had a chart showed 100 day moving average of closes the market rallied up to the bellwether number. it stopped. it has backed off about 25 or $30. the question is the next move. it probably has more upside, especially given what is going on now in china. connell: some upside in gold. what about oil? a lot of talk about the oil price of 40. and you know, the two sides of it, where some people said, helping out consumer. we have he lower gas prices. what is the next move for oil do you think? >> it has been on the move.

still on a down move, but probably overdue for consolidation of price. anything near $40 is where i'm looking in that general range, give or take $2 to do consolidation to figure out where is goes next. idea going straight down to 30, forget it. like when gold was 1900, like it was going to 2500, you don't want to get caught in extremes. another 20% drop? difficult. connell: idea, i don't know if it is diverting at all from the main topic, that idea of using your head, keeping your head last couple days, even for you, somebody has been doing this a long time, difficult for markets. >> a lot of hair, a lot of hair. connell: watching way markets are gyrating, staying level-headed about it, not get crazy, is it stuff? >> here is what it is. i've done this four 1/2 decades. done it a long time. saw stocks firms and commodities firms through it. connell: yeah.

>> you go back to your disciplines. don't just start doing things. wilbur ross said it, you have a shopping list in stocks. in futures you know when to pull back. volatility gets too big, what i tell my clients, stop trading. i'm a commission business, stop trading. let game come back to risk you handle. go back into it. this game is like airplane schedule, or bus, always another one coming. pull back, wait for opportunities. connell: there you go, more sage advice. hair looks great, ira. good stuff. >> thanks for having me. melissa: dow down more than 200 points after being up more than 400 at high. dramatic reversal in final hour of trading surprising wall street. tech names managed to eke out gains. deirdre bolton joins us now. these are a lot of names as we've been running into people and talking to people in our own lives last couple days. should i do this now, do this now? they usually mention tech.

>> they do. looking at your screens, netflix, apple, amazon, facebook all these have really been punished in the last five sessions but down as well in the past five sessions. up today. of course the idea, as you've been talking to other people, melissa referencing this, these are names that people want to hold long term. they just got them for cheaper. back to you. melissa: deirdre, thank you so much. we'll see you at the top of the hour forries and he reward. connell: interesting to see how many tech names would be on somebody's shopping list, whether wilbur ross or somebody else. melissa: absolutely. connell: netflix, those type of stocks. dow certainly with the close today, a lot of people wondering what will happen next. down, yeah, down 205 after being up 400 early in the session. melissa: we'll be right back. ♪

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connell: there has been making market news all day long. liz claman covering it at new york stock exchange. this market rebound that wasn't. we digested this, liz, we know. we were down 200 points. it is 5:00 somewhere and almost here and we're thinking about tomorrow what will the next move be because our thinking had to change last hour or so? >> i have three words, china, china, china, oh by the way, china. that is all the traders need to watch. spin it forward to tomorrow, can't. can't do anything until tonight when the chinese markets open 9:30 p.m. eastern time. japan opens a little bit earlier. please keep in mind anything can happen when it comes to the peoples bank of china. as we know overnight last night they cut rates and did couple other things that lessened pressures on financial institutions there. watch tonight. watch the wires. watch foxbusiness.com, china. connell: usually watching

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>> six straight days of losses for dow and s&p after dramatic reversal on wall street today. what will tomorrow bring? connell: magic panel with us, jonathan hoenig and scott martin. are you going to watch, to be honest, scott, will you watch chinese stock market tonight or baseball game? >> probably like every night unfortunately, lately, connell the chinese stock market. connell: i know. >> don't have to watch the cubs anymore because they just win of the look out met fans. i wouldn't be surprised if we open down. i wouldn't be surprised if we rallied a little decently tomorrow, what you will want to look for if you're getting in the market or to show shore up

positions maybe a period of time, next few weeks, you will be in despair, walking outside with people throwing up all over the place, there will be major market reversal. that is bottom for investor. if you have cash on sidelines, like wilbur ross said, shopping list ready, wait for major intraday reversal. wait until everybody is sick around you when you buy when it is darkest. >> what an image. scott is walking around with rucker boots as everyone throws up next few days. jonathan, what do you think will happen tomorrow? >> i agree with scott we'll need some type of real capitulation here. we'll watch futures indeed chinese markets tonight. what worries me the most is credit spreads beginning to widen. there is more and more risk and more and more fear coming into the market. if you were anticipating a '97 financial contagion, now is good as time as any. now time to sit on one's hands.

>> thank you for joining us for full hour and mentioning risk because that is what is coming up next. connell: and a little reward. >> and a little "risk & reward." thanks for joining us. "risk & reward" is joining us right now. >> market rebound evaporates. dow gains of more than 440 points at one time. then in the last 30, last 15 minutes of trade, average turned negative, closed down more than 200 points. liz claman from the floor of new york stock exchange. today was supposed to be the buyback day. what are traders saying to you? >> said had you tuned out from the last day of the session you missed final hollywood ending. it was tear-jerker, not a happy ending. we closed down 204 points. we had been up at highs of the session, 442 points. completely squandered.