Street hands in its worst day of the year the selling was widespread all 11 sectors finishing the day deep in the red led lower by technology the cause china. That nation effective i. Weaponizing its currency sending the yuan lower, turning the the trade war into what many are considering right now a fullblown currency war. Weve got full Team Coverage of this dramatic turn of events lets things off with bob pisani live on the floor of the new york stock exchange. Hey, bob and melissa, we had a tough day here i want to give a sense of what happened last time china devalued its currency. This was about five years ago in august 2015. The last time china devalued its currency was in august 2015. That happened on three consecutive days of devaluations that was beginning on august 11th the market was very different back then. It was a different picture for the overall markets. Chinas currency was appreciating back then thats a big difference to now the stock market in china was just roaring it was up about 40 . The shanghai composite in the first half of the year through june but then the economy began slowing down and the chinese stock market simply collapsed after june and into early august by august 11th to 13th they started the devaluation. The s p here didnt react too much we were only down about 1 on the first day of the devaluations but then our markets dropped about 10 a week later. It rallied back but the gig deal was it was sort of acting in constant where the other global markets. It wasnt just china a fear of Interest Rates being too high similar concern today. And the Global Economic slowdown that began manifesting itself around that time the yuan devaluation of 2015 is also famous because it weakened other emerging market currencies and it also led to a big drop in commodities. For example, oil dropped 30 between july and august. Copper dropped nearly 20 . I think the concern here, melissa, is that the added component here is that the trade war is very, very real right now. That component wasnt nearly as front and center in 2015 as it is today so we have a new overlay thats making people a little more concerned. Back to you. All right, bob, thank you bob pisani so with all that said is 2015 any sort of a blueprint of what we can expect Going Forward here after todays massive selloff what do you do with your money, guy . I think it is weve mentioned august of 2015 a nuv times on this show and go back do a little History Lesson and see what happened. By february of 2016 if you recall the s p was cratering down to 1810, bottomed on the day when jamie dimon announced 54 he was buying jpmorgan stock. We had something come out out of opec i believe that night and there was also a deutschebank bond offering. Those three things pointed to the bottom of the equity market. But in my opinion i think youre in for a couple months of some rocky roads. I dont think today is it. We can get into any number of reasons why but the small caps have been telling you this and quite frankly i think the gold market has been trying to tell you something for quite some time if today is not it, what else is there theres ripple effects, right . I think you have to ask yourself the question of what else is going to go on out there were in a currency war of some sorts. What does that mean . You look at korea, the korean yuan had a big move today. A lot of the other Southeast Asian currencies had a big move today. And its going to force all of them to devalue as well. So there are ripple effects to that you see our bond market, people coming in and buying bonds what do you buy in this environment . You buy bonds, you buy gold, you buy bitcoin. All of those were up today and i think you can still stick with that playbook at least for the time being because we havent seen all the ripple effects. We dont have a fed funds futures for currency devaluations no. And the u. S. Treasury is theres no way of handicapping is what im saying what the next play is. So how in that scenario do you invest in the stock market lets hope sorry lets hope in some case that we know that history doesnt rhyme, it tends to repeat itself. And lets hope that history repeats itself in terms of how we approach our currency on the global stage, which is not to go in there and devalue is t. You talked about 2015. I think its important to understand the context in 2015 this is prebrexist this is preprotectionist around the world, pre our elections, pre a change in stance on how weve been using sanctions and trade restrictions in addition to tariffs in a Global Environment where every other country in the world has started to do this themselves or is reacting to what we have done. So you talk about the setups and think about why we were so scared also in basically june to august of 2015 is that when china begins devaluing the currency, whether you believe its warranted or not. And theyre going to claim right now is warranted we have a case where it means massive risk of capital flight it means if you think about chinas economy, which Everybody Knows has significant debt and credit issues behind it. The fear of capital flight, the fear of a disorderly depreciation i think is part of whats going on in the markets so the bottom line of that is that the setup for this time around is worse . Significantly worse significantly worse how are you feeling today . Not very good you know, i try to sorry, karen. On a day like today im long, im always long oriented i always have long exposure. So a day like today this is just blood everywhere but what i try to do is think about what do i want to own, what do i think could really get overdone im not out there buying today but i do have some things that i really do think i want to own at better prices. Google, for example, has reversed almost, not quite but almost that entire runup from their earnings so thats one i would want to buy. I think bank of america, the most u. S. Centric of the banks, i think thats looking pretty good but i think things are starting to feel a little bit out of control. Right . And that they could get more out of control and so that concerns me. The one thing that i had that worked today was s p puts. I talked about you need to have the protection, particularly two weeks ago, they were practically giving it away so now what do you do with the vix here at 24 1 2 that to me is a little more dufault a decision than where do you buy. Because these things could just get shell lakdacked. Right . Im thinking tomorrow it might get a little bit worse, ill probably try to sell some of those as difficult as it may be. We probably have new viewers tonight and this is going to sound somewhat counterintuitive but most Everyone Wants the market to go higher and if you do you want tomorrow to open lower in a meaningful way. And what is that meaningful way . Go back and look what the s p low awas on i believe december 24th it traded down to 2709 excuse me 25 09d gi 2509 give or take. Recent high in the s p was 3025 give or take so a 50 retracement of that entire move is about 4 or so per kent from here which is not unreasonable to think we cant make overt last couple of days puts you at around 2720 in the s p 500. In my world thats a huge support level. And quickly, i dont want to get too wonky on this, and i dont know what the answer is, but i dont think its the chinese necessarily devaluing their currency as much as it was them no longer supporting their currency, which is nuanced but important. Well, i think that is the key question for this market is this a currency war or is this a currency crisis theres a difference between the two. A war implies china has control over the currency. A crisis implies they are beginning to lose control, which means that the ripple effects into the equity markets, into the stock market will go on for longer than we expected if things just stabilized here. And i would just say that china for the last five to ten years, whether its msci inclusion whether its commodities settled in unior recommendminu renminbi chinas doing everything they can to basically become a global reserve currency so to think theyre kind of willie nilly throwing around some numbers and deciding dish think every move here they see as critical. And i know that maybe no kidding. But for people that think that chinas going to mess around i think its very clear that the capital flight issue is a very important one. What karen said in terms of options, one of the things you should not be doing in this environment is people tend to add a lot of bells and whistles to a portfolio, they tend to gross it up, put on some hedges against things that dont necessarily make sense, simplify, dont get more complicated at a time like this. Lets bring into the conversation the chief investment strategist at blackstone joe zidle, great to have you back here on a day like today. Do things in your view, does your Market Outlook turn much dimmer and less optimistic after a day like today i think clearly number one, no one wins a trade war is point number one and point number two is no one wins a currency war. So the risks are definitely he will vait elevated but i continue to believe well arrive at some sort of agreement with china the probably not anytime soon. My guest is we dont see any resolution to trade in 2019. So i think for the rest of the year we will see volatility and my view is that the highs that we hit just a couple weeks ago will probably end up being the highs for the year so i do think well see a more volatile and choppier market but if you think about the markets they sort of operate like a pendulum. The further you swing to an extreme on one side youre going to swing back to the other side. And i think were beginning to see that in the markets over the course of the last week and certainly today. So i think if theres a Silver Lining its that this is going to probably feel a lot like the period from september 12th of last year to december 24th, which is something that guy just mentioned a minute ago and in that instance in the Fourth Quarter last year we saw equities leading credit lower. And thats always in my opinion, that is a classic false alarm when equities lead credit lower and thats what weve seen again over the last week equity markets have faulten far more than credit spreads have widened out. That tells me that this is still in the financial markets, which means i think it will just lead to buying opportunities. So your price target for the year is 2875 four sectors that youre recommending, two of the sectors are extremely exposed to trade war and currency impact. Industrials and materials. How do you get your head around saying that we have got limited upside in the s p 500, this trade war could get worse and yet we want people to be in these two sectors . I think as we put together our buy list it would be those global cyclicals, it would be those companies that are exposed to consumer discretionary. And the underlying reason behind all that is i dont think this is the end of our economic expansion. I dont think our economic expansion is going to end with a trade war or these sorts of policy mistakes. I see this as a mid to late cycle pause you where we do see volatility but i do see this is an economic expansion that can go on for years. The base case is we do get some resolution to trade with china granted, the currency escalation, its a big risk. You cant ignore it. You bring up credit markets, which is really important because they maybe theyre weakening a little but not a lot. So if you say credit follows equities, thats a mistake, what then makes credit unravel if not equities they dont just unravel in a vacuum no, you raise a great point the difference between an Equity Investor and a Credit Investor is this. When youre investoring in equities youre thinking about quarterly profits, youre thinking about cash flows and Equity Investors tend to get really geared toward quarterly profits or the profit cycle whereas Credit Investors are primarily concerned with return of principle, right . Are they going to get their money back as a result Credit Investors tend to get more geared toward economic cycles. So the reason why were seeing credit hanging in there is because theres this view that this is not the end of an economic expansion what would cause credit to unravel in my opinion is if we are facing the end of an economic expansion, if were facing the beginning of the next recessi recession, i dont think were anywhere near that yet i think we dont see a recession until 2021 at the earliest and i think this is a psych that will can go on longer than nap. When youre talking about whether this is a currency war or a currency crisis at this point if its a war weve only got china firing the one shot on its side if the u. S. Does try to intervene to the best of its ability, we dont know if it really has the firepower to do so, but if it does does that make your Market Outlook worse i think it would. Theres a couple things to consider, right . Number one, its china versus the u. S. , which we saw today but at the same time its south korea versus japan where the korean won plunged to threeyear lows against the yuan. The countries have removed themselves from favorable export treaties, curbed imports you also have to consider the possibility of the u. S. The dollar versus the euro thats something President Trump has talked about there was supposed to be a bipartisan bill introduced into the Senate Last Week that would have effectively forced the treasury to devalue the currency congress is now on recess. Its unlikely thats going to go anywhere but i think it does represent or its symptomatic of that underlying tension thats there. These things are all rhys sxukz dont want a currency war just like you dont win a trade war if they spiral out of control its a risk. What i would watch to consider whether these risks come to fruition or not is ceo confidence weve seen it roll over. If ceo confidence continues to fall then you can forget about capex and you can forget about hiring joe, great to see you thank you. Joe zidle, aka j. Z i like it septembers a very important time for ceos. Thats when they decide what money to spend, what plants to build. Think about the backdrop theyre looking at right now in terms of everything joe said and weve been saying for the last 15 minutes its not all that encouraging. If youre at home and trying to figure out this whole high yield thing. Its not a perfect instrument but put hyg on your careen and watch that it closed today only down a percent. To joes point it wasnt a disaster and ill say this quickly. Youd better hope its a currency war and not a currency crisis and again, the distinction that b. K. Made is if this is a crisis, and i say it all the time, youre going to walk in one day, golds going to be up 100, everybodition going to discount, it its going to happen for the next three days in a row thats what we should be concerned about. Weve got much more on todays market meltdown. Be sure to catch a cnbc special report markets in turmoil. Thats tonight at 7 00 p. M. Eastern time coming up, commotion in the commodities market metals moving big off trade fears. One top technician will tell you why theres even more trouble ahead. Bitcoin roaring back to life as investors flee stocks with markets in turmoil could this finally be a new dawn for the crypto currency or new moon maybe were live from times sqre in ua new york city. Much more fast money right after this wn ways. Somos muy diferentes. Muy diferentes. vo verizon knows everyone in your family is different. There are so many of us doing so many Different Things. vo thats why verizon lets everyone mix and match different unlimited plans. Sebastians the gamer. Sebastian. This is my office. vo and now with more plans, everyone gets what they need without paying for things they dont. New plans start at just 35. The plan is so reasonable, they could stay on for the rest of their lives. Aww, did you get that on camera . Thanks, dad vo the network more people rely on gives you more. So, every day, we put our latest technology and unrivaled network to work. The United StatesPostal Service makes more ecommerce deliveries to homes than anyone else in the country. Ecommerce deliveries to homes here, hello starts with hi mple. How can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. Welcome back to fast money. Commodities getting crushed in todays selloff crude falling more than 1 while brent dropped nearly 3 . Copper also tumbling today toyotas 2019 lows. Our next guest says more pain could be coming for commodities. Lets go straight to the chart master hard at work to break it down carter, what are you looking at . So many things obviously. But this is in many ways the center of the storm. Theres beta in commodities. And they are sort of a gambling chip in many ways when trade wars are in play, et cetera. And so forth the Commodity Index itself, its an equal weighted index from corn and cotton and soybeans to steel, oil, gas, copper. And you know, you could say theres not a lot there yet at the same time you could draw lines. I would think one way you could draw lines is as follows that you have a fairly welldefined series of higher lows and then a big old plunge same thing here. A welldefined series of lows. Its the importance of levels. And both of these in a way set up like that too so you get into the apex you get into the apex. And you drop not good no way around that so a longerterm chart these are the lows in 2016 and what i would say you can see is the following that weve just now lets zoom this in here. You can see weve just now broken below that minor thin line on the bottom so i think the setup here calls for substantially lower moves in commodities. Lets pull it back and look at a few other iterations here is an etf you can play. Its the gsci, symbol gsg commodity etf. And what we know is this has already broken you can see it here too. Zoom in there so you can see it. Youve actually breached a lower level. Thats not a good setup. And its a fairly welldefined low from which weve just again come apart in terms of crude, which is the big one, its all the same general setup. Its the precision of the levels it should make no sense fundamentally. And yet it happens all the time. And this kind of setup is more if not resolved the same way and finally, copper. Copper is hovering ominously at welldefined lows. And the betting here of course is that we break sharply it really doesnt matter what commodity. Theyre all under pressure and the presumption is generally lower. Carter, come on over. We need you here at the desk jonah will bring a chair, and as he always does, thank you, jonah. This dollar chart indicates the dollar will go higher . Theres a relationship longterm between the dollar and commodities. And yet in any given month or hour, this is just not true. All right . And so while the dollars broken out i think of course the big play if you want to get into that real macro sort of thing the ultimate currency is going to be gold, silver, bitcoin here, for instance, rather than the dollar gold, silver, bitcoin, those look good to you they do and also as classically defensive, what held up today, utilities, reits, just as would be expected. Have any charts been broken today . Broken in terms of in terms of the major Market Indices or major sectors well, sure. I guess the real the thing is day to day, could one say its overrun . I think it is. But its early about this. Either one accepts or doesnt accept the fact that Global Equities peaked in january 2018 and its never gotten better since. And that this has been an impressive rally this year but their market rallies usually are. Carter, im curious on the oil chart. Ive heard a lot of people talking that it could be going much lower just based on the technicals, last time we had kind of a credit issue oil went down to 20 bucks. Is that in the cards it peaked in what, july of 08 at 147 a barrel. It got down to what, 24 or thereabouts in 16. And here we are in the mid 50s why not . Why cant it lower as much as the imagination will allow carter, if you look at a chart of copper, on some level that to me is the most concerning because to me thats actually the one commodity thats probably got the most supplydemand bounce of all of them i actually think copper could have some potential for disruption but it looks to me like a head and shoulders. Talk to me i didnt happen to draw it that way, but one could have one should all right carter, thank you. Thanks, guys. Carter braxton worth. Tim, youre mentioning emerging markets got crashed. Oversold as they have been since twfsh which says a lot for emerging markets and continues to make fresh nineyear lows on a relative basis to the s p. Thats scary yeah. Karen . Its interesting to me. When things get so, so ugly im going to start to i have some exposure im going to start to look to ed you can read more about todays commodities selloff on cnbc. Com meantime heres what else is coming up on fast. Stocks slammed as trade tensions grip wall street. Is now the time to rethink your Investment Strategy . Were breaking out our protection playbook. Plus bitcoin surging again today as investors dump on the stocks. So is this the beginning of a bigger breakout . Stick around fasmoys ckft ts quick break. Hi quadrupled their money by 2012 . And even now many experts predict the next gold rush is just beginning. So dont wait another day. Physical coins are easy to buy and sell and one of the best ways to protect your life savings from the next financial meltdown. [narrator] today, the u. S. Money reserve announces the Immediate Release of u. S. Governmentissued solid gold coins for the incredible price on your screen. These Gold American eagles are official gold coins of the United States and are being sold for the price on your screen. Pick up the phone and call americas gold authority, u. S. Money reserve. With nearly two decades in business, over a billion dollars in transactions, and more than a half a million clients worldwide, u. S. Money reserve is one of the most dependable gold distributors in america. [narrator] today the u. S. Money reserve is releasing official Gold American eagle coins at cost for the incredible price on your screen. These governmentissued gold coins are official u. S. Legal tender made from solid gold mined here in america and fully backed by the United States government for their gold weight, purity, and content. Do not delay, call now to purchase your Gold American eagles for the amazing price on your screen. Gold is now on sale at prices unseen in years and this year could be one of the greatest goldbuying opportunities of all time call now while vault inventory remains. As one of the largest u. S. Gold coin distributors in the country, the u. S. Money reserve has proudly served hundreds of thousands of clients worldwide. Dont wait another minute, call now to purchase your American Eagle coins at cost for the amazing price on your screen. Eamon javers at the white house with the latest. Eamon. Yeah, melissa, south korean media now reporting that the north koreans have fired two what theyre calling projectiles toward the east. No indication of what these projectiles might be, if theyre missiles or Something Else or even what type of missiles they might be no confirmation of that from the u. S. Side just yet and no word in reaction in the past couple of minutes here from the white house. But you remember last week there was a similar weapons test from the north korean side firing off two projectiles. At that time the president sort of shrugged that off last week suggesting that because of the type of missiles the north koreans had fired last week he wasnt as concerned. It didnt violate his agreement with kim jong un this is a president who was eager to keep those talks on track with the north koreans the dialogue that hes had with kim jong un. Well see whether this amounts to anything more significant than we saw last week and ill bring you an update as soon as we get it from the pentagon or the white house, what type of missile we might be talking about here, melissa. Keep us posted, eamon, thank you. Eamon javers at the white house for us you were mentioning the won. The korean won this is yet another thing to put on the plate not really put on the plate but i would notdismiss this as being Something Different than the trade war and or currency war crisis that were having right now. We know that china has very strong ties in north korea so this is one more thing to add. Lets get back to the u. S. Markets here it was a rough day on wall street stocks closing out their worst day of 2019. Tech, energy, financials bearing the brunt of todays pain. So whats next for your money . Lets bring in head of research tom lee. Tom, great to have you with us yearend price target is 31. 25. How do you feel about that today . Still feel very confident about it i feel like were watching another horror movie, a movie trailer. Fed miscommunication, trump tweets, china retaliates but at the end of the day i think u. S. Is still the equity tina theres no other place to go the pmis will strength enby the end of the year. The longterm credit curves been communicating that for 16 months and this is the best year for equities since 2009. So as much as i understand why markets are nervous i still think this is a bullish setup. Youre not worried about the possibility of a currency war . Yes, i think that there not only is there a currency war, i think that theres a lot of nervousness across a lot of markets. But i had i tthink the u. S. Is pretty well positioned fundamentally. If you think about how much is priced in. The vix price structure inverted today. Its not like markets are just discovering nervousness. Theyve been nervous for six days and today was a big crescendo. Bond markets rirnting we talk about this all the time. 5 of sovereign bonds. Negative yields. Swiss 50year yields some stuff you would never even have considered ten years ago. Is any of this problematic at all . It really speaks to i think the divergence of demographics to make things even worse, 14 issuers are issuing at negative rates. Populations been shrinking we have negative yields its a deflationary setup. U. S. Is still growing organically. And i think real gdp and i think u. S. Corporate profits strong. Its a divergence. If you look at s p versus rest of the world its really broken out to new highs were talking 50year highs. And i think thats really the next coupleyear story so global turmoil, volatility in the equity markets, currency war, those would all be good things for bitcoin and yet you dont think necessarily theres a currency war thats going to happen so why do you think bitcoin is going to launch to new highs on the back of all this yeah. Well, bitcoins done something pretty interesting this year last couple years its been really correlated to dollar. So weak dollar has been good for bitcoin, strong dollars been weak and its been really correlated to risk markets. This year its delinked from the dollar because the dollars been strong, bitcoins been up, which is a real breakage its gone negative on correlation to the equity markets. And now its positively correlated to gold i think bitcoin is proving itself this year to be a hedge against global risks i think that makes it an authentic institutional source of diversification i think thats going to help propel it to new highs is it couldnt rah dictatery to say were confident about a rally to 3125, we dont see all these worries everybody else is factoring in those worries as real threats and yet we do see b bitcoin rallying because its going to be a hedge. So not to be too glib, s p going to 3125 is a 5 in the second half of 2019. So its basically what you expect in a normal year for equities after a really strong first half does s p and bitcoin have to move up on the same days they dont weve sort of been bullish on bitcoin because crypto won us over and the technicals are improving and i think theres a whole road map of how theres more fiat to crypto onramps developing thats really bullish for bitcoin but it doesnt have to be bullish for equities. Tom, great to see you tom lee of fund strap. Where do you think bitcoin goes now . I think certainly new highs the one thing i would say about bitcoin, for the First Time Since ive been in since 2013, we are actually starting to see real institutional players using bitcoin as a hedge and buying intoability coyne. That was not the case a few years ago. If you remember in 2017 we were all waiting for this herd to come and they never head showed up the herd is here right now and people are allocating to it. That is a change this year the part of the bitcoin story is changing from the alternative to Central Banks and fiat currencies, would you say . I think people the narrative of why you own bitcoin is starting to unfold in front of our eyes. Were seeing that happening with these currency wars. And the thing about bitcoin, i dont want to get too far off here but its reflexive. The higher it goes the more you want to own of it because its a better store of value as it goes up lets say you are like many people out there watching the show and you dont want bitcoin and dont think its a hedge if notability coyne then what as your hedge in times like this . First of all, u. S. Treasuries theyre going to go lower. And if you look at the relative spreads between europe and all these 15 trillion in negative yielding bonds but also a flight to quality youre going to get that theres no question gold took basically five years to break out through 1350 and weve had a couple now surges in the last two months that not only reinforced that move but certainly tell you gold can go higher still ahead taking the tech what should you do if you own this name . Well get some answers but first a rare green arrow in todays sea of red the one feive densstock that held up in the selloff. Were digging into that name when fast money returns. Welcome back to fast money. Three big movers standing out in todays selloff caterpillar down 2 1 3 . China confirming it will stop buying Agricultural Products from the u. S cat has always been a trade war stock, tim it has been and i think actually the correction that was made in both the Mining Supply out there and their core markets was done five years ago for this company the companys never been run better and to the extent that you are seeing a slowdown in global pmis, though, i have to tell you i still dont feel the need to chase the stock even though the valuation isnt that difficult right now. You would have thought or i would have thought that it would have been down more. I actually would have thought this would have been the epicenter of it. Given the fact that the dow was down almost 800. Over 900 at some point in time this has been kind of ground zero for the trade war so i wouldnt call this actually a relative win today lets move on to target here. The retailer finishing lower but it held up relative to peers the stock getting some support thanks to an upgrade from deutsche bank. Karen, you own this. I do own this yeah, i thought it was a win today here as well for all of the macro uncertainty and the trade war, the consumer is still doing well. We havent yet seen how these tariffs chinas paying them so the consumer doesnt need to worry about it but it could be the consumer might have to pay. Still the consumers doing well, theyre employed and wages are rising i like the space and i think they could take on amazon are you surprised it held up even well after there was a threat that it would be 25 on the remaining 300 million in goods imported from china . Again, karens talking about a consumer of targets who basically is doing very well right now. The same people by the way that are spending at mcdonalds and the same people supporting a lot of these other trades that remain very defensive in this environment. We havent seen the feed through to pricing and thats something guys who have higher labor costs it is something to be concerned about. Here is the rare bright spot in todays sell skrof. Northr Northrop Grumman finishing the day higher not expensive pushing up against levels we last saw april 2016 i believe i think its telling you something the same way targets trying to tell you something target was people rotating out of walmart, getting into target. Maybe i think that makes sense but the fact this stock is up today i think people are saying wait a second, not that expensive, probably somewhat insulated from all the nonsense thats going on. I think you can own the stock for another 12 to 15 defense, defensive . Defensive and if you think theres going to be some other things going on perhaps you might put some money to work here but i think even more impressive, this is a 220 stock at the end of 2018 so on a day like today to hold up this well after a rally like that says theres tremendous relative strength. Coming up semis having their worst day since may. Well break down the chip and tell you if there are more troubles the selloff overseas. Ena you can expect when asia ops few hours from now well head live to singapore when fast money returns. S to , causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. Healthier brain. Better life. Stand up if you are first generat crowd cheering ent. Stand up if youre a mother. If you are actively deployed, a veteran, or youre in a military family, please stand. The world in which we live equally distributes talent, but it doesnt equally distribute opportunity, and paths are not always the same. Im so proud of you dad. [man] i will tell you this, Southern New Hampshire university can change the whole trajectory of your life. uplifting music . Or trips to mars. 4. 95. Delivery drones or the latest phones. 4. 95. No matter what you trade, at fidelity its just 4. 95 per online u. S. Equity trade. Stocks hit hard in todays selloff the group having its worst day since skran. Lets get to aditi roy in San Francisco with more. Hi, aditi. Hi, melissa the semis definitely took a beating on troid worries at the board chipmakers were in the red. Some of the top losers included nvidia, universal display, lam research and amd and micron. And the smh has its worst day since the beginning of the year down more than 4 . Goldman sachs recently putting out a note listing the russell 1,000 companies with the greatest exposure to china and qorvo, qualcomm, micron and nvidia are among the top Six Companies on that list chipmakers are affected by the tariffs in a couple of different ways first these companies rely on huawei, which uses their chips for smartphones and laptops. Huawei is on a blacklist that prevents u. S. Companies from selling its products to the chinese firm also in the latest list of proposed tariffs the largest categories include smartphones, pcs and game consoles all of which use chips. Analysts are taking note mizuho chimed in on last weeks announcement by the administration saying it does not leave much time for suppliers to build inventories or pull in meantime some ceos of chip manufacturers are also speaking out about the trade impact micron ceo sanjay mahotra said during the companys most recent Earnings Call with economic and trade challenges facing the industry the near term continues to be uncertain. And just last week amd ceo lisa soo said during amds Earnings Call while we remain cautious given the fluidity of the situation the impact to date has been limited and offset by growing momentum in other parts of our business. Meantime, the Semiconductor IndustryAssociation Says year to day sales during the first half of 2019 were 14 1 2 lower than the same point in 2018. Back to you, melissa all right, aditi. Thank you. Aditi roy in San Francisco its not just the chip stocks, by the way apple had its worst day since may. The stock has been under intense pressure since last week when President Trump announced tariffs on an additional 300 billion of chinese goods is the worst still yet to come for apple and the semiconductors tim. First on semis youre down almost 13 in eight sessions this was after going up 36 in 25 sessions. So the volatility here shouldnt surprise anybody to me if you want to look at the smh, the etf that tracks the semis, i think somewhere around 104, 105 youd better find some support. But right here i think theres enough headwinds in terms of the global cyclicality again, threeyear lows on tenyear lows on hong kong pmis. Most of asia is in negative territory. And to apple, look, we have fresh data points. We certainly have fresh reinvigoration in terms of the services story i am a longterm holder here i dont see the current environment more than the cyclicality of the moment being a reason to trade apple. Guy well, its interesting. Apples become a pretty decent i understand why you want to own, it not look at it because over the course of the last ten years its been astronomic astronomical i get it but go back to august of last year when the stock made an alltime high of 227 and then look where we cratered to by the fall and then look at where we just topped out and we talked about this not only with apple. We talked about it with the set skrup in facebook and with the setup in amazon. Point is where is your entry point . Again, i dont know if it gets there. But if youve never been in the name and youre looking for a level that makes sense on a number of different metrics, the 175 level sets up really well in aapl weve had the discussions on whether or not appsale a trade war stock or not before. I think it is when you listen to the Conference Call and where the growth is outside of the services, theyre talking about china being a growth area. We heard some anecdotal evidence of originally people in china kind of boycotting apple because it was an american product so i think its exposed just like anybody else because jut remember they make a lot of those things over there. If we think about china where do we hit them that really hurts . Whats an Iconic Company so boeing on the corporate front and for consumers apple. Weve tried to dismantle huawei havent we given them ample opportunity to do something dramatic to this point in terms of pushback on i realize the stakes are escalating here by lets be clear. We basically we charged the daughter of effectively the daughter of steve jobs and threw her in jail. But movements toward huawei in the latest round of talks so to the extent this trade war is ramped up now weve pulled back that olive branch and you know, then they say yeah, boycott. Guys pointing this out and today it feels like it with an exclamation point. We are farther away from a trade deal of any kind than weve ever been because of all these little battles along the way on stuff that frankly was not what we were here to fight about buying ag products right now shouldnt be throwing the world into a tizzy well, we are just a few hours away from markets opening up in asia could be a rough ride following todays wall street selloff lets go live to singapore with the early asia setup hi, sri. Hi, melissa were looking at a another round of heavy selling today in the asian markets. The rix aversion is back you guys were talking about it the volatility is back really driven by this tariff escalation the nikkei at a twomonth low yesterday. And really aggravated by the dollaryen rate. So money heading into the relative safe harbor of the japanese yen, that took the currency to its highest level in seven months against the dollar. So expect the same playbook today. And currencies, you guys were talking about it, again, squarely in focus with dollaryuan. The chinese currency breaking seven against the u. S. Dollar. Highly significant politically a very highly charged level. It creates outflow risk. At the same time challenging to dollar denominated debt you remember and of course it could potentially spark off a round of competitive devaluation in this region so summing up, we are looking at another round of heavy selling heavy losses today in the asian markets. And i do want to single out hong kong and the hang seng as a market in particular that could underperform today and not only is it at the pointy end of the trade conflict but also its having to contend with some pretty nasty and unprecedented political unrest today as well. Back to you now. All right, sri. Thank you. Sri jegarajah in singapore for us we havent talked about the yuan fixing thats happening in three hours time thats going to be a key event to see whether china first pressed on the yuan after yesterdays fixing at a lower midpoint. I want to point out that a break of 7 on the yuan is not necessarily of significance on an economic level. Its not a ppp level its not a level that suddenly throws them into a area where they cant be competitive. This gets to a place where we start to feel like there will be speculation against it let the markets now be the ones that determine what chinas going to do because capital flight from china has been an issue at various times for the last four years that markets have struggled with. What are we looking for when asia opens what are the indicators for the u. S. A couple Different Things one, the u. S. Dollarjapanese yen, which is trading right now, if the u. S. Dollar drops versus the japanese yen thats a risk off signal you also want to watch the rmb, the chinese currency there are two chiennese currencies one that trades in beijing one that trades in hong kong the one that trades in hong kong is indicating were going to get more devaluation for the rmb just to be clear the one that trades in hong kong is called the offshore yuan and its more freely traded than the one that trades in beijing. Precisely and the spread between those two at the largest level since 2016. Weve been watching here on the desk the tenyear yield. Weve been watching all morning but it just touched 1. 709 thats the lowest level since october 2016 its back up to 1. 718 but shocking. We were at 3. 25 in november. So effectively in eight months weve almost cut it in half. Think where we were the night of the president ial election if im not mistaken we were down 1. 52 or something. Im trying to recollection in the tenyear. And were within a whisper it certainly appears that way. If we test that what does that mean for u. S. Equities . I think equity markets will be down. Yeah but im going to be a little positive on a day like today what . Think about the things we talked about we have lower yields, which are going to be great for the u. S. Consumer, particularly in housing, and lets say oil drops even more. Dwlurz quote unquote tax cut for the consumer there is some Silver Lining out there. Its just weve got to get through this period of volatility coming up one options trader just made a 5 million bet against the markets. Full details ahead plus youre looking at the cramer cam jim is garg up for a very big show hell break down todays selloff at the top of the hour on mad money. Much more fast money still ahead. [leaf blower] you should be mad at leaf blowers. [beep] you should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. But youre not mad, because you have e trade which isnt complicated. Their tools make trading quicker and simpler. So you can take on the markets with confidence. Dont get mad. Get e trade and start trading today. Dont get mad. From the 5am wakers, to the 6am sleepers. Everyone uses their phone differently and in different places. Thats why Xfinity Mobile created a Wireless Network that auto connects you to millions of secure wifi hot spots. And the best lte everywhere else. Xfinity mobile is a different kind of Wireless Network designed to save you money. Save up to 400 a year on your wireless bill. Plus get 250 back when you buy an eligible phone. Click, call or visit a store today. Welcome back to fast. As trade tensions ratchet higher one options trader is betting 5 million bucks that the pain has only just begun. Mike kh ouchlt w in San Francisco. We usually see 20 million contracts trade in the u. S. Listed Options Market on any given day. Today we saw over 30 million trade. And in spx, which is basically the biggest proxy we have in most of the markets to trade, the s p 500, one of the trades that we saw where puts were double the volume of calls and also double their average daily volume was a purchase of 2250 of the october 31st expiration 2500 strike puts for 22. 30 each. Thats a bet of a little over 5 million against the risk that the s p 500 could decline below its the lows for the entire year that would obviously represent a significant decline from where we are right now to put some perspective on the size of this trade that would be a hedge against a portfolio of about 560 million thanks for the action options action. We have breaking news here you might have seen it at the bottom of your screen. Treasury is designating china as a currency manipulator there is a question as to whether or not this is a trade war. The u. S. Has fired back it seems with the u. S. Treasury saying that china is now a currency manipulator. What do we look for now . Well, thats not bullish. And they have been a manipulator except theyre manipulating it the other way. Theyve been trying to prop up their currency for the last 18 months much different conversation. To answer your question, thats another shot across the bow. Thats not bullish we dont have futures trading so we dont know what the reaction is. Whats your guess . Well, we do have u. S. Dollarjapanese yen trading. Thats making new lows thats highly correlated with the s p. I could wo think the s p trades much lower tomorrow. Thats more bid to the safe haven. More bid to the safe haven, yeah final trades up next. See thats funny, i thought you traded options. Im not really a wall street guy. Whats the hesitation . Eh, it just feels too complicated, you know . Well sure, at first, but jj can help you with that. Jj, will you break it down for this gentleman . Hey, ian. You know, at Td Ameritrade, we can walk you through your options trades step by step until youre comfortable. I could be up for that. Thats taking options trading from wall st. To main st. Hey guys, wanna play some pool . Eh, im not really a pool guy. Whats the hesitation . Its just complicated. Stepbystep options trading support from Td Ameritrade on a scale of one to five . One to five . Its more like five million. Theres everything from happy to extremely happy. Theres also angry. Im really angry clive actually, really angry. Thank you. But what if your business could understand what your customers are feeling. And then do something about it. Turn problems into opportunities. Thanks drone. Customers into fanatics change the whole experience. Alright who wants to go again . I do i do i have a really good feeling about this. On the worst day of the year for stocks ive got your back. Im putting the madness into context. A green spot in this market. Im eyeing some names that are worth buying mad money is next breaking news that came across in just the past five minutes. The u. S. Treasury department now designating china a currency manipulator. So the currency war is on and weve been looking at the reactions in the market. B. K. , youre pointing out u. S. Dollarjapanese yen is really feeling the most yeah, this is a riskoff indicator. Youre seeing a big move there so we are noting that 1. 709 on the 10year yield watch that tomorrow. Time for final trade tim. Delta to me is a cheap valuation. B. K given whats going on i still think you can buy tlt. Yields going lower. Karen selling some puts viacom cbs has legs viab that does it for us on a very big market day thank you so much for joining us be sure to catch live coverage markets in turmoil tonight my mission is simple to make you money. Im here to level the playin ins there is always a bull market somewhere and i promise to help you find it. Mad money starts now hey, im cramer. Welcome to mad money. Welcome to cramerica other people want to make friends, im trying to save you money. My job is not just to entertain but educate and put this in context. Call me at 1800743cnbc or tweet me jimcramer. Wh