On fast money we try to make sense of what is going on and more importantly, what you should be doing about it your traders on the desk on this very important night are steve grasso, brian kelly, Karen Finerman and brian adomy let get right to it. Todays market plunge, taking the s p 500 negative for the year all of the gains, theyre gone energy, tech, consumer leading the selloff what are you doing with your money following a day like today guy adami, if anything because somebody a lot of somebodies, were selling i think you have to understand and we talk about this, markets go down a lot faster than they go up i dont think today is all that surprising in the context of what we have been seeing over the last couple of weeks and past couple months to answer your question, what do you do you have to sosht of draw your line in the stand. As much as we the root for selloffs to buy things cheaper, when they come, they never feel the way you want them to feel. Thalz seem scarier try to take emotion out. Lets talk about microsoft i go back to february 11th when we talked about it, huge move to the upside, traded 190 1 2 or so reversed a close later on huge volume that said, textbook reversals you have to see. Whats next . Look for a level to buy at 162 gives you sort of a level we bounce from. The same thing with apple weve talked about figure out what your levels are, draw that line in the sand and buy the stocks when they get there. In terms of s p, and steve may or may not agree with me, but 3030, 3,030 is the level. I want to give you a big shout out. I know you guys have been doing this for years and you take a lot of heat and people say you cheerleader of the market. I think it was two years ago where i said we wake up one day and coronavirus has 100 cases in america or spread around the world, what happens to the market i believe it was you guys who said the dow falls 1,000 points. That was an exact quote. And it fell 1,031. And also what makes sense for a market bottom . We will talk about that later. I will say it again, unfortunately, i didnt think this coronavirus was anywhere near being contained and now were finding out its not, but i also say this, a lot of things that have been moving were moving way ahead of any time coronavirus was even a thought in anybodys mind. Streev grasso,we talked ou on power lunch earlier today, what we need to remember is for every selloff, there must be a buyer. There were people, as much as today was bad, there were buyers somewhere, i presume, stepping in what was the mood today . What was the feel and the trade . In the morning, you always want to look at as a trader is where is the panic and is there any panic this morning i felt for the first time in a very, very long time, because this market has let everything roll off its back, i felt as if there was some element of panic during the opening session for the fist half hour to play. Them you watch people sort of bottom fish. And then it failed thats the problem with bottom fishing. When it fails, to guys point, everybody wants the market to sell off and whether it sells off, you have a chance to buy so you nibble and get run over again. Are you talking margin calls tend to hit what, 2 30 p. M. And i wondered if margin calls generally for people in the markets come up short and theres going to be activity the market came up 200 points off the low. It tried to claw back and failed. What happens is because its too early now. Everyone is trying to reassess and say, maybe we havent factored in what this whole coronavirus, the true extent it could have on the overall market you throw out all of the growth names that are fluffy or in the markets idea are fluffy, you try to buy them back and then you cross your finger and you hope when youre wrong, you get so nervous, you throw everything out that you just rebought what did you do today, karen . I didnt do a lot really. Just watched i was short jpmorgan calls and i closed those but theyre very long. This isnt a good day t l wise but i do think there are opportunities i didnt buy anything significant today i kind of would like to see us come in tomorrow off a bad overnight market and have a big whoosh down and then look to buy. You want to see more losses tomorrow because we ended just off our lows. I think i would like to see that most of todays move was coronavirus but not entirely look at the smh. I know it sold the last couple of days but that was straight up it happened to be coronavirus, i think there would be something to take the fraught off a lot of these stocks i would like to see it come in tomorrow. Big technology has been leading this market up, up, up today it largely led us down bank stocks down 4. 1 , apple lost nearly 5 only two nasdaq 100 names, gilead and rejen areaen, both seen as coronavirus plays, closed higher on the day as karen noted, Semi Conductor companies lost money today the fmh down 4 1 2 . Smh up 33 in a year even with todays drop so we look at it as a big down day and still a forward up market, or the turn and end of the bull run im not to the point i think its an end of the bull run yet. In general thats what you have to ask yourself in this environment, is Something Like the coronavirus a big enough shock to the Global Economy that it tilts the u. S. And the rest of the world into recession . And what everybody else has said is a lot of these symptoms were kind of out there already in that you have weak Economic News in germany, weak Economic News out of japan, prior to the virus scare. A trade war a trade war for a year and a half all of these things had been adding up and the market didnt care now you have this spread of the coronavirus and the thing about it is we dont theres too much uncertainty right now whether or not this is going to end in three weeks or is it something that lasts the summer . Nobody is pricing that in. Thats why you have the selloff today. That being said, im kind of more in karens camp where as a trader, im looking for a down open with a reversal tomorrow. That to me would signal, all right rngwere got a short term bottom here, or at least something i can trade against in this market. I think if youre looking at other signals, capitulation comes in the form of a couple of things in my world, volume is a huge indicator and works on the way up weve outlined that a couple of times. I mentioned microsoft when it traded two times normal volume a couple weeks action on an alltime high in reverse you are looking for trying to find a bottom in some of these names you look for a slimmer move to the downside, why the price capitulates on two, three times volume buying and you didnt get anywhere close to that today just on levels, 3,160 is the next level to watch, 100day moving average, 3,275 is 509day moving average and were along way from the 200day or another day of downward trading. You got to know the levels because you just want to puke them and all of a sudden you see the support and the market rips back in your face. We did not end on our lows. Correct. But we lost a lot of team in the last 30 minutes or so. We tried to recover, as you noted. What does that tell you about the setup that is likely for tomorrow. First, we have to see what asia does and what leads us into the market the overnight markets will be very important so Pay Attention to that. If the global story gets worse and not better in the next 12 hours, then look for, as karen and b. K. Noted, that whoosh to the downside you dont want to have it go green premarket because then its set up to fail. You want to see a whoosh to the downside, up want to see a redfree market. And then in the first hour and a half or so, but look for the european close around 11 30, see where the markets are. If theyre rallying back into that european close, odds are theyre going to rally the rest of the day. And by the way, totally random but not interesting but important is tokyo is closed today, it was the emperors birthday holiday so we can see a wild open on the ne nikkei tonight we will have a special later tonight. And bank and financial stockholders, is bond yields continuing to fall, which could slam earnings at big banks its a warning Warren Buffett acknowledged would be difficult for the sector heres what he said about it earlier today on cnbc the banks are going to make more money if theres there are higher rates with a steeper curve. The curve is more important, in other words, tenyear versus shortterm rates, they make more difference than the absolute level. But american banks have made very good money with very low Interest Rates. Good money with low Interest Rates. Does that work, karen, for the long term . We know you love jpmorgan. Tomorrow is their investor day its going to be a very important conversation. It has been working, right . Theres this motion banks are all Interest Rate driven, thats their whole business, which it is not clearly Net Interest Margin is very, very important but theres Asset Management business, equity markets, capital markets. So im hanging on to my bank for sure i think we will see a recovery and ultimately i think we will see higher numbers. You know whats interesting i think about today is a positive on the day when the dow is down a thousand, the yield curve didnt flatten even though we had yield curves go lower, the difference between the yields, which Warren Buffett was talking about, remain the same its still quite small theres not a lot of Net Interest Margin to be made there. But if youre looking for something to say wait a second, maybe the bond market is telling you, this is about as bad as it gets. You had a fed that was projecting, guy, what 3 1 4 fed fund rates at the end of this year were now talking about rate cuts from already cuts and a bond yield, tenyear yield which is a couple of dips off 100year lows. Yeah. Well, i mean, youre leading me down a path to fricksy of the federal reserve. I have done that on a number of nights but tonight is probably not the night to do it but as bad as infinitum, they are worse. And you can take that as a glimmer of hope but ive said it a couple of times, the line in the sand in terms of tenyear yields is 140. Below 140 you get that the points of diminishing marginal returns in terms of what it means for equities and were pro carysly close to that level. We have a market flash related to the coronavirus lets get back to dana with more. Modernas numbers are higher after confirmation it shipped its first batch of Coronavirus Vaccine to the next ih a small temporary vaccine may be by the end of april. This is incredibly quick for Vaccine Development and youre seeing modernas stock up almost 6 1 2 on the news. Thank you very much lets talk about this as well. Biotechs, anybody out there in the market in the biotech space . Yeah, the problem though with the biotech space is you have headwinds that are political so biotech and hmos, you have those headwinds coming then you have the tail winds of maybe a vaccine. But the problem is when you look at the charts, theyve already given back all of those moves. Meg just talked about a stock that rallied aggressively a month ago based on a vaccine and then came in aggressively or more so. So you cant trade it off vaccines, you have to trade it off political headwinds, and i still think the base is still a sell on every pop. Sell on every pop. This sector, in my view, was going to do quite well up until about june then you end up with these political head hadwinds. I would think if you get any type of a rally here going into the end of the First Quarter or second quarter, you would want to probably sell these names and take profits now, lets turn to the days and the years and the decades biggest loser of all, and that is energy, of course the sector falling another 5 today. Oil also fell again. Lets give you an example, exxonmobil, down 4 1 2 . Down 19 just this year. Exxon is worth 238 billion. Which may sound like a lot until you consider it was a 520 billion company, biggest in the world, back in 2007. The number of debtladen Smaller Oil Gas suppliers falling more than 10 today as well is there help anywhere for this long, struggling sector . For trades there are. We had this conversation a couple of weeks ago. For example, there was a great trade last summer into the fall. You pick up schlumberger off the bottom, 2 1 2, 3 months its redone the whole thing back to the down side. You mentioned exxonmobil i will tell you categorically on this desk we told you to avoid for quite some time. You mentioned 56 stock. We have not seen 56 in exxonmobil in about a decade or so and thats what is on a tremendous market tape like the autos, if it cant rally in this environment, when is it . The answer is its not in my opinion. In the space, the refiners, their input costs are going down but the problem is a glut of oil and lack of demand and we see country by country shutting people in and people are staying home, other than streaming videos, youre not doing a lot to use any type of this output the problem is we dont know the demand drop. 14 Million Barrels of oils a day used in china. We dont know if thats down by a million, 2 million, 5 million . How many cars on the road . How many airplanes you do have, i will tell you this, libyas offline. Iran is down significantly venezuela not zero but theyre not close. If we didnt have those things offline, b. K. , you could see oil do a print 35 a barrel. If you look at the chart, yeah, 35 probably in the cards. I think the other then to add into there is look at the big importers you mentioned. Talking about china, and what about japan . That was going into recession prior to these issues. Thats whats holding up against oil. The only problem with selling oils down 5 today is saudi arabia and opec. At any point in time they can come in, cut supplies and it rips 10 in your face. What i would do is wait for them to cut supplies, wait for the 10 rip and sell it from there. This implies opec is going to be able to do that because russia has not been on board theres a meeting scheduled for march 5th and 6th. Theres some people talk, hinting around will they get together because who wants to be in a room with a bunch of people who have been traveling all over the place at this point in time, maybe to a zoom Video Conference call, karen. Absolutely. Let me ask you, is china buying . Are they stockpiling for their reserves the charter ships and its still imports because chinas using cheaper prices to try to fill up their inventories so demand may be pulled forward a bit. If you run out of storage and you still got the demand destruction then were going to find out. Let talk more about todays selloff and get realworld advice joining us now is julian emanuel. To be fair, you have come on this program many times and you have said, i think we will have a pullback and pullback will be healthy. But is this what you were referring to so when you have days like today within the context of the fact we are 5 off the high but were only off the high in less than a week, you have to step back and you have to say, as has been the case throughout this bull market, 11 years of this, rg be prepared to be a buyer down 10 to 15 . You have been paid to be that way every single time. Now if you are an investor and you are uncomfortable with your holdings now, particularly if youve got lots of profits and highflying Technology Names out 50 , 100 in the last year, you might think about trimming there. So to us, this is part of the selloff we think theres a bit more to go here. Trimming even into this weakness and how much more do you think there is to go if our point of view if you look at the past episodes of what we would call a growth scare, essentially Something Like ebola in 2014 volmageddon that we had in 2014 those were almost straightline down over the course of two, three weeks. Very, very scary but ultimately viable again, we dont know, is we have no medical insight on what the progression of the coronavirus is we just know, a, that the market has started to come off in a reasonably violent fashion but we would have liked to have seen a little more capitulation today. I would suggest that rather than sort of a reversal tomorrow, maybe look for reversal on wednesday instead after the democratic debate. Julian, the capitulation in terms of the volatility index, the divix, has come into form maybe three different occasions in the last 2 1 2, 3 years i think we closed at 25 today. Is that sort of what youre talking about . Yes, basically we think that if youre going to go down ten, we talked about the 200day moving average around 3040, 3045 in the s p 500, youre going to get to a number thats 30 or above, and thats the kind of really almost healthy but shortterm panic that we think is viable given the fact theres a lot of liquidity out there. We talked about countries being weak before this, economies being weak is this a big enough shock for you to change any of your earnings numbers not at the moment and the reason that we say that is because, again, if you think about all the stimulus in the pipeline that china hasnt granted a lot of this is in the pipeline now because 5. 5 Million People are in an apartment but the point is we think theres a potential for upward moves. Julian emanuel, bti, b. K. , thank you very much. Were just Getting Started here on a very busy fast money. Up next we found one bright spot in todays big drop the stocks and what to do about them and plus what did todays selloff mean for market multiples . Are stocks still on sale or too pricey we will be joined by the man they call the dean of valuations and we have more on tonight markets in turmoil 7 00 p. M. 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