160 points at the low of the session, and that was within the last hour or so. The s p down 16 and the nasdaq down 46 there. A lot of people watching the tenyear treasury yield as well, looking to that as they have for weeks now. Right. Kind of a broader reflected gauge of where we stand in the economy, where is this all headed and to what extent, if you look at the performance of these markets since the Federal Reserve meeting over the last eight sessions or so, thats really where youve seen the rotation from growth into value. How much does it have to do with the tapering and tightening if you want to call it that. A day that when they sell the stocks they buy the bonds because the yields on the long end of the curve have been come down today. Let talk about it and get to our closing bell exchange. Quincy crosby and anthony chan from chase, Michael Guyette from Pension Partners and winner, by the way, of the 2014 dell aware and samir samano and jim lacamp from ubs and Gordon Charlotte from rosenblatt securities gives us a traders eeye view. Gordon, whats going on and lets take it back a few days beyond that . You know, this selloff is accelerating, if anything else. Why . Aksccelerated through friday and into the morning, bill, but, you know, almost get a sense that maybe were starting to stabilize a little bit certainly off of the dead lows from a couple hours ago. Were sort of in nomansland until we get to earnings season, and i think what you see generally is a little bit of a riskoff situation, and you were talking about that, kelly talking about it before with the tenyear. The rubber meets the road when earnings comes out and well see what this market has. Michael, how are you positioning . Rotating into value along with it seems the rest of the market . We actually rotate it had to treasuries. Bill, you mentioned defensive plays. Mother of all defensive sectors is utilities, and in the intermarket rotation to beta rotation, my partner and i showed since 1926 when utilities lead the market, when they outperform they tend to precede periods of high volatility and corrections. Whats the best performing sector this year . Utilities. Whats happening to bonds . They are rallying. Yields are falling despite fed tapering. Whats happened to emerging markets, the honey badger moved overseas. This is a risk dark off environment if youre looking at everything except emerging markets. Looking at emerging markets, looks like they are starting to price out that crisis that never existed. Jim lacamp, what do you see happening here . Weve blown through support levels here the last few trading sessions. We have. Go ahead. We have, bill, and thats what makes thats what makes this selloff more harsh than what weve seen over the last several quarters, and as you mentioned its the harshest selloff since 2011 but look at whats happened. Youve seen Consumer Discretionary which was leading the market. Its down about 14 from its highs, you look at technology, down over 14 from its highs. You look at the biotech index. So its these growthy areas, midcaps, small caps and high growth names that have been hit far harder than the averages have, but they are not finding support. Weve found support on these names at the 50day moving average in february and all throughout last year. Now were seeing more selling. That suggests to me that weve got a bigger selloff afoot. Lets not forget at every Midterm Election year weve had corrections going all the way back through the last century, on average about 20 , so it shouldnt surprise anybody that the market is hesitating here. Quincy, are you guys raising cash levels . What are you doing here . Well, weve been telling clients all along that we were due for an important correction. 5 , 6 , 7 is not an important correction, its norm a. Its the kind of pruning that you have to do to get to and have the levels that you have commensurate with valuations. So we have been putting clients in very good quality stocks. Ones that, by the way, have been cheaper than the high momentum stocks, and weve had a diversified portfolio accordingly, and its selling off, but were telling clients to get their lists ready because there will be more of an opportunity. Quincy, what are some of the names . We like some of the bank stocks being hit right now, but we do think that the Economic Data get better, that the yield curve sweetens a bit and the banks and Insurance Companies will get a nice bear. Youre calling for a further correction, even though you think the fundamentals are improving. Yes, absolutely. Ill tell you something. Credit markets right now are telling us that ultimately this will be a buy on the dip, but were not yet there. Anthony chan, will those fundamentals get better . Is the economy improving . Well, guess what, bill, not only will they get better, they are already getting better. Today we got Interesting Data showing delinquencies are down 30 on a year over year basis. As that magical event occurs, namely spring, were starting to see the Economic Data roaring back. We saw car sales. We are starting to see that this week when we get the Consumer Sentiment numbers on friday, i think it will be important because it will tell us what retail sales will do for the month of march. I think Consumer Spending will end with a bang, rather than a whimper. I expect retail sales to be double the growth pace we saw last month. Let me push back a little bit. Housing has been spotty, and the job growth, while good, is not great. Were not really seeing a pickup in that area yet. Those are two very important parts of the economy. Well, guess what, bill, looking at that employment report, it was a lot better than what weve seen over the last couple of months. Even the number of discouraged workers, seen that number at multiyear lows. Seen the number they werent good numbers though. They were not good numbers, and were not seeing any aks accelerati acceleration, any escape velocity. Weve been hearing calls for this economy to take off. One at a time. Look at the yield curve. The yield curve is saying flattening out, saying that the Economic Data is very soft here, and those jobs numbers werent good. They were better than some expected in some components of it, but they there wasnt a good number there. It was improving from the numbers that weve seen over the last couple of months. Remember, we came from a financial crisis. When you come from a financial crisis, you dont see miracles right away. Samir, we havent forgeten you. Have so jump in once in a while. Where do you stand on all of this . I would take a different tact saying its way too early to say its a risk dark off move. Fixed income marks, spreads havent blown out or anything along those lines. Two, one of the guests mentioned emerging markets which are holding very well. This really isnt a riskoff move. Theres a little bit of rotation. Youre seeing some of the highflying names come back, and thats really all it is, and its an opportunity to buy stocks. All the same, samir, its interesting to look at the financials today, American Express down 2 . Why do you think that, you know, if we had a day where they were outperforming the market, i could understand your point, but why do you think they are lagging here today . Well, i think that they are lagging because you have to sell something. Samir first. Hang on. Sure. Its just its normal profittaking. I wouldnt read too much into this. I go back if you look at the broad indices they are holding up pretty well and above their support levels. Its only when you look at the industry groups, internetrelated stocks or biotech that youve gone through support. Everything is pretty much intact, trends there and a great chance to sell forecastsed income at low yields when you get to rotating the stocks. What could be better. Go ahead, quincey. Inflation would be better. Go ahead. Well, what i was going to say is if you take a look at loan growth we started to see a nice pickup, not great, not stellar but a pickup in loan growth for commercial real estate. We started to see it in commercial and industrial loans. That is always a very good sign that the economy is gaining some demand, and this is all about demand. And quincey, when you see cni roll over, guess what happens afterwards. The economy is getting better. Hang on, one at a time. Commies at the stock market. Exactly. When you see cci loans accelerating, that usually means employment growth will pick up. One last point with regard to the employment report. When you look at the payroll income proxy, how many more workers than wages, it was running at 3. 5 in the fourth quarter. Now we are seeing that number run is at 4 . Jim lacamp. Not run together races, but 4 seems to me okay. The economy is getting better, were five years into a correction, five years into a correction. Weve printed now 3. 7 trillion since 2007, and so we have some traction, some improving economy. Its not enough. We need to do a lot better and stocks have had a fiveyear bull market in the meantime, yes, were due a correction and i dont see how you can possibly say its not a riskoff correction. It is a riskoff correction because every group has been hammered. Let me go back to something you said off the top, michael. Samir said dont make too much of this, not a risk dark off event but you said thats what it is. When toltal return treasury indices outperform on the long end, the next month ends up being quite volatile for stocks. Theres talk about credit spreads and how they are still tight, not indicative of a riskoff. May 2012, credit spreads blew out towards the latter part of the month. Stocks falling for several weeks. Could see a period like this. A notion that you have to have ved it spreads blow out first and then a correction, quite the opposite. Credit spreads can begin to widen which is really risk darkoff. And that would suggest were more towards the beginning than the end. Exactly. Gordon, before you go, thoughts on the last hour of trade. Lately real on the open in the morning and then it sells off the rest of the day. Today its sort of the opposite and were coming back a little bit. Thats the way its acting to me. Want to point out one more thing. The panel made a lot of great points. One of the things weve noticed is the calendar is full, had a good run last week with a bunch of new names that were oversubscribed and looking for more action out here this week. When you look at today, you start to see them stabilize here. I wouldnt be surprised if they held them at this level, maybe reverse them a little bit more right into the bell. You get a sense we came in friday with that sense that were going to continue to sell into monday. They have done that. Its over. We may be finding a level of support here and whether its risk on or risk off, still feels like we may have found a level here right now. All right. Well see. Thank you all. Appreciate your thoughts on todays market. Lively. Just below the 1850 level, important psychologically perhaps if that can hold as we head into the close. Exactly. 50 minutes to go. The dow at this moment off 123 point,. 75 of 1 . And the nasdaq off more than 1 . Remember the dotcom bust nearly 15 years ago . Two wall street heavyweights tell us they think this is the start of something similar to that or if its just a healthy correction that you need to be buying. Plus, well speak with two stock womeners to find out whats on their Shopping List these days. And later a tale of two Housing Markets. Vacation homes are selling like hot cakes once again and firsttime home buyers are having a tougher time getting in. This has a lot to do with who is in the stock market and who isnt. More on that when we come back. Tall the building is, or how ornate the halls are. It doesnt matter if there are granite statues, or big mahogany desks. When working with an investment firm, whats really important is whether the people behind the desks actually stand behind what they say. Introducing the schwab accountability guarantee. If youre not happy with one of our participating Investment Advisory services, well refund your program fee from the previous quarter. Its no guarantee against loss and other fees and expenses may still apply. Chuck vo standing by your word, thats what matters the most. Afghanistan, in 2009. Orbiting the moon in 1971. [ male announcer ] once its earned, usaa Auto Insurance is often handed down from generation to generation. Because it offers a superior level of protection. And because usaas commitment to serve current and former military members and their families is without equal. Begin your legacy. Get an Auto Insurance quote. Usaa. We know what it means to serve. Work with equity experts. Who work with regional experts. Thats when expertise happens. Mfs. Because there is no expertise without collaboration. Welcome back. Another tough session for markets today. Not necessarily shaking off any anxiety over the weekend. Instead the dow is off more than 100 points. Off the session lows. What did you say, it was down 72 at one point . Cut it in half right now. Sciola modi, give us a roundup of the movers. Seeing selling across the board here. Lets begin with pfizer falling despite reporting some positive trial data for its Breast Cancer drug. Investors, were hoping for better results from the phase two study. Now a tough debut for lands end, the stock taking a hit on its first day of trade after being spun off by sears, not very much better. World wrestling entertainment plummeted despite saying its on track to getting 1 million subscribers for its network by the end of the year, baron saying that might not be enough to counteract the drop in payperview event revenue. Intel shares are moving higher after Pacific Crest upgraded the chipmaker to outperform from sector perform noted improving pc demand and will end on Procter Gamble gaining ground after increasing its Quarterly Dividend to 63 cents a share. Bill and kelly. Thanks very much, seem avrnlgt the bright side to a couple of sessions like this that some stocks will be unfairly punished by the broader falling market. Call them sort of the babies in the bath water stock. The key is knowing how to spot them, of course. Our next two guests say they have feel like they have identified some names that fit that category. Joining us, David Sieberg and craig hodges, coPortfolio Manager of the hodges smallcap fund. David, does that suggest that theres an irrational selloff going on right now if they are selling everything. Selling things broadbased. Its an orderly selloff but theres a riskoff mentality going on and it seems to be more broadbased. When you look at different sectors you have to break it down in an intelligent way. Look at tech. Tech, is you know, a general riskoff, sore institutional holders sell these names and go into more value tech names. Biotech, largecap biotech extremely difficult. Not seeing the core holders take money off the table. Maybe trimming here and there, but were not seeing them bolt out of those names. Not seeing broadbased selling. I think its a very different way to look at the two sectors. My two picks, gilad and biogen. Should be bought here and bought aggressively. Gilad, the one that started this whole thing when henry waxman and congress questioned their pricing of a drug, right . Yeah, absolutely. The stocks come back. Stock came in from what, roughly, i dont know, sub 71 from 85. Stock is going higher. Got a 95 target on this stock. Okay. And ill tell you, this drug that they have is a very, very it eradcates hepc, pricing shouldnt be an issue. In the meantime sorry, go ahead. I said pricing shouldnt be an icing, kelly. Yeah. Craig, whats interesting to me about one of your picks is almost important. It has the ticker hero. Im assuming thats just a coincidence. Hercules offshore. What we see is we need a correction. We need, you know, its been i guess two and a half years since weve had a 10 correction. I thought that was a long time, but i noticed there was no 10 corrections between 90 and 97, and there wasnt one between 03 and early 08, so these things can go on forever, but it appears the market is running out of buyers here, so a good correction i think would bring in a lot more buyers. Theres parts of the market are very expensive, but theres theres a big majority of the market thats not. Talk to us about a couple of the places that you see value. Sure, sure you. Mentioned herculez offshore. Stocks pretty close to its 52week low. They are a jackup rig company in the gulf, mostly in the gulf. I mean, the deep water rates are soft, but the jackup market is pretty good. The executives there have been insider buying. Stocks around 4. 5. They see the outlook for gulf the strongest they have seen in over30 years. Down 36 in the past year. Yeah. So i guess if you liked it before, you love it now, is that the idea . It should earn 60 cents this year, so the stock is extremely cheap from that standpoint. We also think you ought to be you know, the strongest stocks that were in the market before this selloff, you know, kind of focus on those. Okay. Stay away from the high multiple stocks. Weve been a proponent of American Airlines before that u. S. Airlines for a couple of years. We think we could see 7 earnings out a couple years, so the stock at 35 is about five times earnings. We think that thats a good growth vehicle. David, just to zoom back out for a movement you mentioned a couple weeks ago the fact that this market wasnt very hedged. Do you think its something to do with the aggressive selling that weve seen, especially when you look at the Hedge Fund Returns for the first quarter. Dont look that great. Tech funds really, really hit hard in march. What does that tell us . What is the message there . Well, i mean, kelly, the tech funds, they were hit hard. A lot of guys, they were short the value names to buy the fund to fund the growth newspapers and that trend reversed on them so they got crushed and got it from both sides. Look, i think that no, i dont think people are really hedged right now. A lot of the selling that weve seen has been, you know, lets say a manager is taking a percentage of their weighting in certain indexes down a little bit specifically in biotech. Etfs have been a big culprit of this, and i dont hear a lot