Stocks getting slammed the dow falling more than 400 points locking in its worst twoday selloff since brexit the dow hovering around 26,000 these 1 selloffs are a rare occurrence since the last one on september 5, its up a whopping 2 20 . Just in case you got selloff amnesia. Merriamwebster define passeloff as a usually sudden sharp decline in Security Prices accompanied by increased volume of trading. This this be your best chance to buy the dip . Doesnt this feel good . This is something that a lot of people have been asking for. Youve heard the stats, we havent done this since brexit bottom line is the base i think remains very much intact in terms of the Global Economy, in terms of earnings that have been largely extraordinary. An upgrade cycle that would have existed even without a tax deal. Were going to get 12 , 13 ep growth on the s p. Now weve upgraded three or four bucks when well probably upgrade 15 bucks based upon taxes. But do you have to jump in and buy tomorrow i dont think so i think theres still head winds with the fed we feel had a slightly hot inflation number earlier today. We have rates going higher, markets that are concerned about a payroll report on friday that if that shows heat on the wages side people will be more concerned. 2. 7 on the tenyear, that seems to have been the line in the sand. Significant. It is. I think this is about tax reform the upward motion in the stock market, in the economy, is all about tax reform i do think todays selloff was month end. I think it was rebalancing, i think youll see that unwind next couple days or so, having said that, i dont know what these companies will do with the money, with the cash, and nobody does so i think the market is looking ahead saying much higher prices, maybe another hundred handles or so this could be a buying opportunity. Another hundred handles down . I would like to see the market sell off another 2 to get us back into before you dip your toe in . Im fully allocated, im not selling. We think theres another 200 points down . Weve been waiting for a pullback for so long investors have been belly aching that theres not been a pullback deep enough to buy here it is. Its two days im not sure this is it. Look at the actual price moves on some of these stocks in percentage terms we didnt have a blip on the radar screen from the stand point of a ullback at all within the s ps. We saw markets gravitate higher. I know we saw the retail money come flying in the bottom line is you see momentum and volume confirmed trading in tandem with price which is a very bullish signal that hasnt derailed the Global Economy hasnt derailed. So you buy or wait . You buy i think you buy stocks on any pullback. The context i know you were saying this is not long, this is not deep the context is what we said at the beginning. Four 1 pullbacks in 2017. This is fantastic. We havent seen anything in the past year. Karen, you love this, dont you . I didnt do much today. Its a relief sometimes to see it sell off a little bit to me the biggest risk, which are still out there, well see it maybe tomorrow, is the fed feels inflation is getting ahead of where the fed is. If they raise something more aggressive than the market has baked in, that i see as the Monkey Wrench for the market otherwise i dont think not a possibility i dont think the fed can be as recent as december guys, weve been straight up on stocks. Last week you had 35 billion going into eck we ti equities, been an unending bull market for seven eight years. What happened here is nothing and its very healthy. I dont think the fed is going to come out and say inflation is getting ahead of where they think inflation is. Youre saying thats a risk . Thats the biggest risk also tonight, well see what the president s state of the union says maybe you get a bit under infrastructure stocks if he says something thats very bullish on infrastructure, i dont know i think on the heels of him having done what was considered a nice job at davos, i think the bar is a little higher for him here as opposed to last year when the bar was very low and he jumped over it so i dont know that well see a lot tonight. To me the fed and the interest rate, that is the biggest risk for emerging markets they all got clocked today as well. There was no safe haven in todays trade. That was the weird thing also about the selloff. Look at the volatility index. It spiked a little so if it opens up down and we get more juice in the vix, then we can sell. Nothing got a bid today. People think i have a personal vendetta against gold gold has had a perfect set of tail winds for itself and has done nothing, sold off 2 from the highs. Its supposed to be noncorrelated, something that allows your portfolio to buffer. It hasnt been back to what steve said, the month end rebalancing is a significant dynamic, especially in a world when you get rates inching up to 273, 274 equities market have a lot of income in them and at some point people need to think about that. Thats a dynamic that you feel on a day like today. You have to look at it from the standpoint of whats your view point on technology and financials i love tech and i love financials they make up 40 of the s p so from the standpoint of that alone is indicative of the fact that i think this bull market continues to move. That was up 30 in a month. Today was a quandt driven selloff. We didnt see any panicking in our desk whatsoever. We didnt see guys taking take this order to sell x y z, were moving out of this stock. 100 quandt driven from my perspective and we get frothy on the edges. Buy the he can out of this market. When you say there was no safe haven, youre right only utilities caught a small bid. But im going to continue to look and be constructive on housing which has been great, had a great year last year and now its getting caught up where Interest Rates are moving higher i dont think Interest Rates until they breach 4 are going to affect the Housing Market whatsoever im still long. In terms of the state of the union there are different areas to watch deregulation could impact in a good way. Infrastructure. Infrastructure. Financials as well that could be swept up there drug pricing that could be a hit tomorrow what will you be looking for. And how combative he is with democrats, right so if he tries to be somewhat conciliatory maybe he has a higher chance of getting something done if not i think on these other issues hell have a hard time getting something done. I think health care would be interesting in the context of todays news with amazon and j. P. Morgan and berkshire. I think the infrastructure trade we know that there is going to be preference to it how significant i dont know but if you look at how these stocks performed in the afternoon, steel stocks got destroyed today. I started im talking maybe 15 nibble back into steel. Ak was crushed. I think u. S. Steel a more diversified play thats at least going to be ak is if youre exposed to autos and higher grade stuff. The infrastructure trade is alive and well i like cement, i like materials, those are trades that go high we are yields if were worried about yields going higher, you want assets going higher as well. Lets bring in tony dwyer youre here just thursday warn us that a pullback was coming. I wish that was the first time ive done that. Is this it . Its the start. I cant believe the two guys on the set that im the bear out of the two. I have to tell you that i think that this was a fundamental move today and heres how i say that. Last week we did a chart on thursday, it was what happens when theres so few bears in the Investors Intelligence survey, both in 2014 and 1986 you had high volatility. You had upside, new highs each time but you had a number of pullbacks. And i think the reason far is you have a disconnect. As karen was talking about, you have a fed that might be worried about the Economic Data. The Economic Data is strong. Nobody can say that that is not correct. Heres the problem expectations are too lofty so you have the disconnect of a fed that appears to want to be more aggressive on the data anened an investor thats been too high in expectations on the sentime sentiment. So as they equal out youll get this volatility. This will be the greatest opportunity for professional active managers because youre going to get to buy i like to call them wooshes. Youre going get this whoa, what was that thats from a market thats active. A 1. 57 decline on the s p 500. Is that the woosh you buy . No, its not. Lets do what most strategists wont do i will give youparameters to what qualifies as a woosh. I will take the percentage of stocks above their tenday moving average dropping down 10 . From where is it now. I didnt check it at the end of the day probably somewhere in the 20s to 30 the vix at 20 not at 14 as karen pointed out. You need a higher vix so maybe ill miss this one like the last year where you never got to those levels. What happens when investors get optimistic increased volatility with increased upside so im not backing down from my target. Frankly, im 100 points too low. If we wait for your woosh it may never happen do you do anything with this mini woosh or whatever you want to call it well, on thursday i said theres a great saying sometimes, dont just do something, sit there sit there. The fundamental backdrop is fantastic. You have good economy, you have good earnings, you have a fed that even on rates hasnt inverted the curve. So i agree with the setup but you have an investor that doesnt have any powder. The fully problem is the cas levels are lowest in ten years depending on who youre asking they havent been this low in 20 years. And you have a lot of people that say hey, ive done well here and if theyre smart and theyre investors and they realize if youre greedy youre going to get slaughtered our call thursday to our investors, as you know, is if youre levered in equities, levered up, at the three times long or if deep cyclical areas, neutralize it. When you get these wooshes up, you have to neutralize it. You cant stay levered long and not worry about it if you are levered long, neutralize it. If youre significantly overweight, the aggressive sectors, neutralize. It aggressive sectors meaning what tech, industrial, the ones i like honestly. The ones i want to buy on weakness when i look back at the history of the market when you narrowed the yield curve to the current degree it is, believe it or not, over the next six to 12 months you want to be long. So not backing away from the 31,00. Not backing away from our sector picks but if youre levered long after a 7. 5 three week move, maybe you want to take a little off the table. Take a breath tony, thank you. What did you do today health care, bought a lot of health care. I think the biotech names will continue to work bought hospital names on a pullback, some of these insurance stocks on a pullback that was an opportunity for people to step in and make money. I want to start nibbling on the Health Care Space as well. You want to or you do i want to you have to remember im 99 in the market already so if i had to add what are you going to sell . What would you sell . One of my underperformers ive been lucky enough that i had a couple of them but vista outdoors id probably sell and lighten up and buy health care. Vista outdoors was formally the gun stock, right yes. Smith wesson. Heres what i say dont cut your flowers and keep your weeds if youre having a pullback if you have companies that will outperform on the way down, theres a good chance theres a better reason to hold the companies. So this is what people do during this time. But two days does not make a woosh, it does not make a correction and where we ended last week was absurd and theres still a place where you can get the markets to settle out. I agree with steve theres big rebalancing going on and people need to wait for earnings season. By the way, at some point we get through earnings season and theres not a lot of catalysts for markets that arent elevated we have a lot of tech coming, facebook, google. The thing i wrestled with most today was anthem because all the other stuff went down with the market and it will go up or down with the market anthem im trying to figure out how big a threat is this amazon berkshire j. P. Morgan thing. Those three together, thats a threat if you read the release, though, its so vague, it even says at this point we dont have any answers. They dont have a ceo even. Theyve kind of got a lot to do. It s somewhere down the road however, a try yhreesome like t you have to worry. I didnt a a knee jerk reaction, it was a punch in the gut reaction it didnt feel good but im hanging on to t. Coming up, check out shares of amd and Electronic Arts those Conference Calls under way. Well bring you the latest details. Plus steve wynn feeling the heat after numerous Sexual Assault allegations and with the wynn hotel ascenter piece for top entertainers in vegas, have any of the entertainers or conferences canceled we have a special report later, a bitcoin beatdown. The cryptocurrency sinking a thousand dollars today as the cftc and facebook are cracking down the selling could be about to get worse according to one get worse according to one undertheradar market dane chauvel sometimes the product arrives, and the cold chain has been interrupted, and we need to be able to identify much more fast money straight ahead. Much more fast money straight and we developed devices to track environmental conditions. This device allows people to understand whats happening with the location, owf your product, it keeps everybody kind of honest that way. Who knew a tiny sensor could help keep the food chain safe . Welcome back to fast money, check out shares of twitter flying almost 2 , hitting its liest level since november, 2015 shares traded above that key 26 ipo price. The stock is up more than 12 over just the past one week. So the stock was pitched last night, how much higher does it have to go im eyeballing the october, 2015 levels, that brings you up to 32 in the price tag. Thats a healthy move from here, especially since the stock couldnt get out of its own way for the longest time but i do believed nodo is winding up, that negative headline is winding up, people are looking at it, theres the mna activity, theres always been there, or potential, but theyre getting their act together with or without nodo. Do we have an idea of who fills the gap . If they were smart they eat get a marquee name, a marquee player, but twitter was going to recover or not recover with or without anthony nodo the absence of him doesnt mean he wont zblurn do so you have the ceo of square and ceo of twitter and hes obviously divided his time to some degree and then you have noto whos gone, who has a great tale talent and there will be no impact i believe there will be an impact you saw the impact already and thats out of the by way, coole heads were prevailing. Noto is there, stocks were sold off 40 . Hes gone and we should sell it off further . Noto leaving is a perfect indication the company isnt being sold in the near term period he would havent left. He left to be a ceo. Doesnt matter. Number two, lets think about this, its being taken up on takeover speculation remember what happened last time, crm . All these stocks took a dirt nap when they thought this company was going to buy what is a dirt nap . They sold off massively crm sold off massively why . Because the Shareholder Base that owns those stocks dont want them to own that company. They dont a monetization problem, they have a user growth problem. They cant solve that problem. No growth manager will touch the story. So its up on takeover speculation. Theres no reason why this is not a fundamental rally back, in other words. Correct. I respect your thoughts, i think anthony noto as people are knocking is a challenge. He was a stabilizing force but theyre returning to Revenue Growth theyll be u. S. Gap profitable for the First Time Ever probably so the engagement on twitter is only growing the platforms importance in a world of probably very decentralized media which is trying to con sal da trying to consolidate again, thats good. You notice the Production Team was playing rocking robin on the way in they dont miss a trick. Crack staff up ahead, steve wynn, the center of Sexual Assault allegations. Are corporations or entertainers pulling away from the Wynn Organization im melissa lee, in the meantime, heres what else is coming up on fast. Announcer the death sthar that is amazon is at it again, taking aim at health care. But now may be the time to buy those beaten names well explain. Plus, yeah, thats what bitcoin investors are doing and if you think youre going to get saved, a top market watcher says think again. Meinchged about bitcoin. Hell be here to tell us about hi, im bob harper, and i recently had a heart attack. It changed my life. But im a survivor. After my heart attack, my doctor prescribed brilinta. What that is when fast money returns. An 100 milligrams as it affects how well brilinta works. Brilinta helps keep platelets from sticking together and forming a clot. In a clinical study, brilinta worked better than plavix. Brilinta reducedof having another heart attack. Or dying from one. 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Morgan stanley welcome back to fast money, bitcoin falling below 10,000 as regulators cracked down on crypto, now facebook is joining the fray were at the New York Stock Exchange with more hi, bob. More news on bitcoin. It wasnt just a tough day for stocks, it was also a tough day for cryptocurrencies in general. Bitcoin dropped below 10,000 once again but it closed frac