Its got another 7, 8 worse to the down zblood really. The market has three things going for it steve mentioned one. There is a kmans chairman powell backs off hawkish languaging. That would be encouraging in the shortterm. Okay. In the shortterm number two i think there is a chance maybe President Trump and president xi get together and get some accord. Maybe there is pain on both sides for them to come to the table. Number two number tlie on the verge of earn earnings and those and guidance will be good thats the in the bull camp. How do you know its over . There is a day the market washes out and the volatility index up pretty much all day today despite ralliying at a point will be down when you soo he that day thats when the bottom has been put in. Today was pretty heavy volume is this it. Today was heavy volume. But you need the threeday rule. You need to see it stabilize 27065 broke it violated it 2710 thats the low. Why do you think its negative if they back off raising rates ill switch gears quick. Just, well if they back off because he feels he needs to answer to the president , thats bad. Were not hearing that. He is just backing off or stay the course. But if he does it now a day after the president says he is crazy, then it looks bad the optics are terrible. He has been going on for weeks. There is never a time he can do it without the president saying something. I dont know about that i think there is plenty you get some kind of weak data point, Economic Data point, that gives excuse but if you look at an economy which right now is doing fantastic, then you really should be raising rates. And i dont think do you think the economy is doing fantastic . Is that what the markets tell us is it doesnt feel like. It doesnt. The market tells you that rates are too high at this point in time for the market its digesting the fact of a rotation i can come up with a lot of reasons. We have a trade war that continues. Thats going to lead to high inflation, low growth. Thats not great china is slowing the rest of the world is slowing. Ultimately. The question is when do you buy it when do you by when not sell it. I didnt say we were selling. The question was the first the question is it bad if the fed fax backs off yes for credibility. Number two whats the market tell news its telling us there is a rotation going on and we are worried about the rest of the world. Are you worried. Im always worried. Am i that worried . Not really i think the market it doesnt use a tiny scalpel to get to exactly efficient prices we dont know theyre never exactly efficient. To your point could it the go down 7 or 8 . Thats quite a bit i would i dont foresee that. But who knows. Its hard to know when the bottom is in you really only know for sure after. I do think when you are at the maximum pain where you absolutely cant stand it anymore and the inclination is to sell everything thats a god time. Are you at that point. No. I bought a tiny bit of fedex today. Yesterday i saw i bought a tien yao weenie amount i think i said of google call spreads facebook call spreads. So i dont think that i hear what you are saying about the risks. I think the economy is doing really well. We will see. Get a good look tomorrow not only at jp morgan earnings for themselves but they have great insight into what is the economy looking like right now what does it foresee thats important. There was some panic today. I didnt see the panic yesterday. I heard it today. When did you see the panic. Ripping through moving average, program order. All during the day when you starred to breakthrough through Different Levels and didnt hold thats when they sold. When the positive trade headlines it bounced and didnt hold which made the selling more ferocious to the soundside. So the scenario of down 7 to 8 or so. From here. Why is that so straesk. What are the bear points getting us there. Good earnings and a company saying good Forward Guidance is lousy. That will exacerbate the selling we have seen there is a good chance we see four Major Companies say that. The inflation pressures they feel and talk about the fed in the next block but its backing up what the fed is doing thats number one. You saw a huge emerging market risk the markets have been down no bounce seemly in sight. You have the chinese currency kinning to devam thats a headwind. The risks are out there. The other risk by the way is passive investing is great on the way up in the etfs and everything is beautiful and bob pisani talks about it and we wax poetic pass seven great on the way up but when it becomes active and people are saying whats going on and people freak out, you see it manifest itself. And you saw it today i mean the market went down from down 300 to down 600 in a minute and a half you tell me thats normal. Its not. Thats based on derisking quantitative stuff, the computer spetz out how much you have to deleverage and derisk. And the price of the market where you have to the derisk and derench. What turned it around then . If its down like that on those factors what turned it around. Its almost like a rebalance. If you do it ahead of the game the level was 2719 in the cash if you broke that level it was supposed to trigger about 50 billion in notional s p futures for sell as soon as it triggered we raled five handles lower than that we sold ahead of that to get to the level. That was the 100day moving average. The 200 day but thats the 2719 level was where risk parity accounts decided through their models where they had to sell the market its not precise. When computers do it it still doesnt feel good. You see the volatility index spice spike. A bid to gold which we havent seen a strong bid to bonds. Doesnt feel good. It doesnt feel good at all maybe we got 7 or 8 i will give you my rule of thumb i use to know when there is a bottom when i wake up in the morning and look at the market and i want to throw up on my shoes thats when you buy. You did feel that way. I did not today im with guy probably there is a time you thought i thought it might be this morning you have a big down day. Rips higher and stays thats where you want to say im adding one third position here and how we look at it. I think its a tladable bounce and we have to see with earnings earnings mtd fluor corp. Concerns me the margins compressing concerns me. You have a tradeable balance and then we see. Its funny you and karen say youre not ready to throw up. I can throw up without selling everything. What do you do before you feel that capitulation bottom. What do you in this period if you dont think this is the all clear. You create a list of stocks that at a certain price you buy regardless of whats going on. Everybody loves apple for reasons we talk about the last dozen years. If apple gets to a certain level whatever that is and my head 185 makes sense. It doesnt matter what i think fischer traded well today. We talked about that, upgrade. Maybe that stock is interesting now. You make a list of stocks that at a certain price you buy regardless and you stick to it and you dont allow fear to interfere. One thing i do try to do is look at taxes. If i have big shortterm losses i will look to sell that and buy something moving with it right . So that that way you can take the shortterm loss maintain the position in the trade. You have to have a couple of days, lets call it three still. When you say threeday rule, do you mean from yesterday or the today. The selloff day. Okay. Two days ago. But you have to have you cant make another new low if it goes now a fourth day where there is another new low then it resets again you have to have sfablt in the market for two or three days before you actually buy the market. All right well if you are tempted to buy our next guest as a simple piece of divides dont. Its different lori is the head of u. S. Equity strategy at rbc greats to have you. Thanks for having me. Why not. We said dont buy the dip yet. Eventually we will but were not at the point yet. Well tell you you are. You guys felt a bit of panic. I sensed complainsancy yesterday. I was out seeing investors wasnt looking at my phone got back to my office shocked to see how much tech went down. I was not sensing investors were paying that much attention to it in the meetings. That tells me we have a ways to go. What will tell that you panic has is at a level on the vix. Well. The volume. I think on the tech stocks ive been a bear on tech its been a long lonely trade for me. But when people stop arguing that theyre sick secular and dont have cyclical components there is so much pushback on the perfection of fundamentals that has to break before you buy that sector i think we are a long way from that. Lets get outside of tech and look at sectors that have been beaten up. Lets look at materials maybe. Lets look at some asset heavy names. Is that where people should rotate into. Materials is a tough one. We are neutral that sector and getting mixed signals. It looks expensive if you look at it relative to cash flow through yesterdays close. I think there is damage to be done in that space. Speaking of valuation, is there a valuation level at which you say the market is definitely a buy . Is it does it get trying reported yet or duv other things with the valuation. You have to see other things. Valuations themtz are not a reason to buy or sell right now. As of yesterdays close we were at 16. 8 times on the forward pe. Your longterm average is 159. 8. At the least id like to say its getting close maybe close to the average then we have to resess. But we are not back to cheap valuation territory yet. Do you have the uksry of waiting knowing the seasonality is the end of the year is coming do you have the luxury of waiting for all of these things to get in line im not a big believer in seasonality to be honest i think even if you look at issues like the midterm elections right people trying to make arguments about that right now. The market traded completely the opposite of the way it does in a typical midterm year im not even into that issue frankly. Okay well get back to the vomit. Thats a better signal. What are you seeing in terms of clients want be the flow of funds. I think whats really been tough the last few days is there is a different thing resilient on different days. One day youll have the reflation trade back in vogue. We have had had days where energy had a nice move and industrial caught a bit. Then that doesnt work then everything that is defensive bids up. We think you should tiptoe back in the confessives we have been telling that for a kwhiel people have to get past the rising rate fears. I like the Energy Sector you have cheap valuations. Geopolitical risk. You have a bullish Oil Price Forecast and you have an appear at this time where investors look at the space. Because they are running out of options. Lori good to see you thank you. Rbc. I think she is right about complacency. One of the trade strategies for people has been short volatility that doesnt go away overnight thats not something going away over the course of a week. We saw it in january and you see it now to think it cant continue to exacerbate to the down especially when facebook went down we talked about it went down 23 in 6 minutes that was crazy thats a 600 billion company. We said the same thing could potentially happen in the Broader Market you see it now these air pockets are not going away overnight. What did we do today, day two of the market selloff. You can take time and reposition the portfolio if you are concerned about inflation, concerned about rising rates because of inflation, look at what free port, up in a down market. Copper and gold bid there. Why not put the portfolio in that and hedge against Everything Else . Maybe you dont look necessarily at tech again as buying the dip. But look at things that outperformed or at least had relatively strength versus the market to me its free port mack. Karen. I bought a little bit ever fedex. A couple of things lower i would buy some more. Ge was down a by preponderate thats on my list. Jp morgan to add somewhere but its a question mark into oregons tomorrow that will obviously read through to the other Money Center Banks as well as Goldman Sachs and Morgan Stanley knows are the kind of things that are on my list. And then there is some retail stuff thats getting attractive. I mean macies there is stuff to do if you can separate the emotions whats awesome to me is lennar has been catching a diana olick had a great interview with the chairman of len you see in gaining momentum to the upside. Maybe this is the laggard in a terrible tape where it corraly. Coming up its the showdown of the century President Trump calling the Federal Reserve crazy and out of control. And blaming it for the market selloff. While the fed chair, does he fight back details. Plus judgment day for the banks hours away make or break moments for the markets . We tell you why this could be the most important earnings season ever. Later high flying techs getting crushed. But guy says there is a name thats a screaming buy he gives us his fast pitch ci, choryomes square, new rk tymu me fast money right after this experience a blend of refined craftsmanship. And raw power. Engineered to take the crown. The lexus ls 500 and ls 500h. Experience amazing at your lexus dealer. Welcome back to fast money. Chaos reigns in the markets. The s p down almost 7 from the 52week try. And President Trump isnt staying quite. Blaming the fed and calling it lock o and crazy and out of control. Lets get to eamon javers on this developing story. The president has been heaping the red hot retiric on the Federal Reserve the past 24 hours. Take a listen to the toughest criticisms over the past day. No, i think the fed is making a mistake. They are so tight. I think the fed has gone crazy the fed is going loco and there is no reason for them to do it. And im not happy about it. I think the fed is out of control. I think what theyre do something wrong. So crazy, loco, out of control, all of those are the adjectives that the president uses to describe the Federal Reserve policy of raising Interest Rates the president frustrated he doesnt want to see the economy stall or the dow stall into the midterm elections in november thats the big frustration for the president thats causing him to speak out the way he has been but larry kudlow and cnbc suggested there is one line the president isnt crossing bursting through a number of president ial norms of the past but the one line he is not crossing is larry kudlow says the president is not directing the fed to change the rate policy he is not directing them to slow down thats the line that larry kudlow suggested this president is not going to cross because, he says, the white house respects the independence of the fed. The president spouting off here but retaining in image of an independent fed. He actually said in one of the interviews this morning, the president that is, that he would not fire powell, which i think is an Important Message to the markets as well. Right . Sure. To at least say, he is going to be in the job. Important nuance there, because if the president says he is not going to fire powell, he is assuming that he has the authority to fire powell and there is some gray area there about whether the president could fire a fed chair if its not for cause. So there is some questions in terms of the process there this president clearly believes he can fire jay powell if he wants to and but saying he is not going to because, again, the white house suggesting that the president respects the independence of the fed despite all of the rhetoric he has been pouring on the past 24 hours. He had had so many interviews and im sure you watched all of them close sflie yes. Has anybody pushed back and said if the kissimmee so strong why wouldnt the fed raise rates . Isnt that a reflection of the strength of the economy. Larry kudlow said that on cnbc this morning. You hear the president making that case slightly he says i get there is safety there. What he is suggesting is he understands the fed needs to raise rates here so that in the future if there is another calamity like we saw in 2008, the fed has wiggle room to lower rates again and gives enemy ammunition to work with. The president in all the criticisms says he understands that he just thinks they are moving too quick and should low down. Long day for eamon at the white house. Shortly after jeffly gundlach weighed in. Its clearly he is crazy like a fox with the fed rhetoric where he doesnt want to take the blame if the fed overtightens and leads to a problem in risk assets, which you know is starting to come out in realtime in the last week or so so he is basically saying, you know, if the market goes down its on the fed. So is there truth to trumps accusations here is the fed to blame for the selloff grasso what do you think. If you look at the time where powell had the statements. And you look at the time of the selloff. Its hard to imagine that its not responsible or on the feds lap for the selloff. I mean thats when i look at the kmart i dont know what you could garner from it other than that. Well what about what about italy . What about a trade war what about slowing. All the things there the past couple months. Exactly. Raising including. He just had to show up. He just had the conversation affecting the bond market and filtered through he just had the conversation i mean. It was a conversation. Its been a conversation six months we have known this is coming a quarter point, drops the market this much i mean, come on. Our kissimmee that weak we have bigger problems. Its not what he said he said how much he is willing to go past neutral. We have known that. There is. No, there was i think it was seen as hawkish the market told me the market told me it was seen at hawkish. At the same time we had problem was italian debt at the same time we have the yuan weakening. Margin was earnings warnings. Maybe its not so maybe its everything. I agree. But its a little too convenient to have the day that he speaks about it, the bond market fall apart or rising rates and then to have the market fall apart. Doesnt mean its its the cause just because its convenient doesnt mean its the cause. I took calculus, causation. Thats algebra. 10year yields have gone down 150er yields spiked at 328 you could say its a flight to quality. Doesnt matter what it is. If the fed caused this, if the stock market cant stack this we have bigger problems plus if you thought the market was going hire in the face of the Federal Reserve going about face for a year and a half you are hoping against hope that its the case. There is going to be hiccups along the way. The market cant goe up for ten years with the fed at its back and the fed think its going to continue when the president talks about derailing the economy he is talking about derailing the stock market when he became President Trump talked about being a report card for his administration we said back then if the market goes down he needs somebody to blame. And le blame the Federal Reserve. He has a scapegoat. But can we all agree that deleveraging the Balance Sheet with raising rates is a double affect of tightening. Okay. But in didnt happen in a vacuum its not like it wasnt telegraphed for a long time. One thing the market hates is surprises. And this was not a surprise. That they were shrinking the Balance Sheet. Three years ago they laid it out there. They laid out a year ago what the path of tightening was like. Karen i could push back and say all of the other things you are Say Something the reason why the market fell were out there as well. Whether it was trade, whether it was yuan or anything else it was out there as well. Well trade has been getting worse. Right. Second round of tariffs. Trade when china getting worse. Trade with mexico got a nafta two or mca or whatever but trade with china getting worse. Im not sure its worse. Its not Getting Better. Maybe today they see. He wasnt meeting at the g20. Now sending a team meeting at the g20. Hopefully thats Getting Better i think the market reacted to that that is the bigger threat. The one thing i do think is important is everybody it o is talking about the fed being tight. I dont see that if you look at the Chicago Fed National financial conditions index. We are at the easiest conditions since 1994 look at the taylor rule and these take ut the emotion out of the taylor rule says the fed funds rate toub at 5. 25 . Thats a great intellectual argument but isnt it the rate of change and the change we have seen where was the 50er treasury yield six months ago and it went up to 3. 26 whatever that was and change . And now it was 2. 8. It just means we had a change. We had a change. The doom is price stability and employment full employment. Full employment and no inflation. We have no inflation. Look at Inflation Expectations they are at 2. 2 thats what the fed looks at fully anchored. Are we in any danger ever inflation running away. Maybe. Maybe or. Maybe is it the fed as job to go ahead of time. Maybe sounds like he can skip one. Could he skip one or is it a travesty to skip one. They ruin the credibility or destroy the credibility. They actually get credibility. Its data dependency its a beautiful graph. You said they destroy the credibility prior to jumps recent comments about the fed. Would you have said they would destroy the credibility. No. So lets not introduce that into the conversation. Thats what i said last night. So if trump shut up they are allowed to skip if trump shuts up they can skip. All of the things being equal, the economy doesnt change, if we have anchored Inflation Expectations, maybe oil comes off a bit, then there is the economic reason for them to skip. But if they do it just because the day after he says something and nothing has changed then it erodes credibility. Erodes everybody credibility. I think we could have the conversation all night for more on jeffs take on the war on fed cnbc here is whaels is coming up on fast announcer sums up what investors were do doing at fear gripped wall street. And history suggests its about to get worse well tell you how bad plus in the battle for your money, one group of stocks is getting crushed. But the chairmanays at sths creating a great buying opportunity. Opportunity. She will tell us wha 1. 50 futures contracts . What about a dedicated service team of trading specialists . Did you say yes . Good, then its time when fast money returns. E plae that gives you the edge you need. Looks like we have a couple seconds left. Lets do some card twirling twirling cards e trade. The original place to invest online. Move to the enterprisegrade cloud thats built to handle all your apps. The ibm cloud. The cloud for smarter business. The ibm cloud. Whooo want to take your next vacation to new heights . Tripadvisor now lets you book over a hundred thousand tours, attractions, and experiences in destinations around the world like new york from bus tours, to breathtaking adventures, tripadvisor makes it easy to find and book Amazing Things to do. And you can cancel most bookings up to 24 hours in advance for a full refund. So you can make your next trip. Monumental read reviews check hotel prices book things to do tripadvisor welcome back to fast money. Its judgment day for the banks as citigroup and jp morgan and wells fargo kickoff the earnings z season. It could be the most important ever for more on what to expect lets get to leslie picker at headquarters. These three banks jp Morgan A Citi and wells fargo are important not just because of what they say about the healthy of the Banking Sector but what they say about the macro picture as a whole analysts and investors will zero in on loan growth are they keeping base with Economic Growth and lending to consumers and businesses in the Second Quarter the growth was muted but as banks rice they have the opportunity to earn more from the interest charged on loans the streets consensus is that earnings per share at all three banks will be higher this year than last and the combined profits within the industry may be a post record high after the financial crisis the recent market volatility should benefit the banks equity trading business we will be looking for comments on that tomorrow now, that said, the Kbw Bank Index is more than 5 lower yeartodate, compared with a 2 gain in the s p 500 despite the recent pullback. Valuation on price to earnings basis are below postaverage pricing. Leading some to believe that decent fundamentals could jump start shares. Leslie back at headquarters i think a lot of people thought that about banks for a couple of quarters i cant wait for jp morgans conference call. What jamie dimon has to say about the economy is very interesting. And very telling. I think the earnings are really going to be secondary. Certainly this past quarter earnings unless they are dreadful but i think thats secondary guidance, i think. But really its his nobody has a better view on the economy than he does and i think i dont know, i want to hear what his view on the fed is i dont know if he gives that view sometimes he speaks out of turn and but id love to hear his view on the fed and whether he is concerned the fed is tightening too quickly. He is unvarn i should in commentary and thats what makes it so valuable. It is and they deserve the premium valuation they get they are within ear shot of the 52week high Morgan Stanley made a 52week low today. There is clearly the capitalism between haves and have knots gets larger. Thats continuing. Look at Goldman Sachs which ive been a bull on for sometime. But the change in management and seemingly the way they change the Business Model overnight gives me some concern. So i think jp morgan is going to be fine. The banks having to prove themselves are the investment banks, specifically gs and ms. They act like they act like death though. All the banks you could have said that six months ago the regulation coming out of them was the biggest tailened we have seen. I havent seen any clients kited about buying banking stocks. They are going to fintech, visa, master card and areas like that but not traditional banking. Do you think if jaimie dimon says the economy is aok, strong, strong, every indication is fine, the markets respond. I think they do to somebody like jamie dimon and i think the stock responds the one thing about the selloff is the bar is low. They dont have to to do much just be in line and say, yeah, you know, were not seeing signs of weakness out there. I think the stock market and jp morgan stock does well. Jamie dimon was on record saying where the 4 the 10year impedes growth. If he moves off that where he says, okay now its more of a velocity issue. For more on what to expect for the earnings tomorrow lets turn to the options mechanic mike is out in San Francisco to break it down. What do you see. The Options Market implying good sized moves to the bank about 3. 8 for citi bank 3 tt 2 is the implied move in jp morgan opinion 3. 8 also in wells fargo. Granted jp morgan the largest of the three that 3. 2 actually translates to 12 . But where we saw the most direct direct o drexel activity even though above average options active was wells fargo where where saw 2 times the average daily put volume and most activity concentrated in the weekly 51strike puts. Pierg tomorrow he saw 6,400 of those trading for 40 cents those are bearish bets the stock could be below 51 by the 40 cents they pay by the close tomorrow they are betting that wells fargo could drop the other two flows in both directions despite the negative activity today. Mike with, thanks for that. For more options action check out the full show tomorrow at 5 30 p. M. Eastern time still ahead, stocks getting slammed today with the nasdaq falling into correction territory and a number of of high fliers getting crushed but guy says there is a stock down 15 percent this month alone that he would love to buy right now he will give us the name and stick around later for cnbc markets in turmoil a packed hour featuring jim kramer and even these buys, the fast money trader that starts at 7 00 p. M. Eastern time. At 7 00 p. M. Eastern time. More fast moneyyeah, that too. I dont want any trade minimums. Yeah, i totally agree, they dont have any of those. I want to know what im paying upfront. Yes, absolutely. Do you just say yes to everything . Meantime right after this. Mm. Yeah, they say if you blanch it its better, but that seems like a lot of work. No hidden fees. No platform fees. No trade minimums. And yes, its all at one low price. Td ameritrade. Welcome back to fast money. October has been a scarey month on wall street and we are only 11 days in we have already seen huge loss was American Airlines down 24 down 18 for amd amazon, netflix and Electronic Arts down 15 month to date. Are any of the names oversold and worth a buy. Netflix is. Because i dont think it should be caught up in the whole trade war epic saga we see. Its kauts up in the high Interest Rate saga a leveraged Balance Sheet situation. I think that going into year end you have to make a choice. Do you want returns on the money . Or just want to hide i think funds are paid to manage money and show the positive return you will be forced into growth stocks, netflix is still a growth stock yes, head winds. But. Some of these give a nice rip. Something like netflix, the wrng move has been to bet against netflix the last several years i dont know if its time to bet against it for tradeable bounce. I think amd a name im long as well that might not be bad that didnt seem to sell off and even today had relative strength i do think there are tradeable buys here. Once we see that market start to return. Friday at 5 30 there is a great show. Options action. Options action. Sometimes you o we let. You you do. And in Early September you allowed me and dan nathan and i went on and he put on a bullish tradein electric ib arts. Proved to be a good trade by dan. I know he is listening but i think there is a good chance that Electronic Arts trades back to december 2017 level at about 100. Here we are. I think Electronic Arts is overdone on the soundside at 19 times or so earning its fair valuation. And two analysts just both upgraded the stock, 145 price targets. I think ea is interesting here. Do any of the stocks tempt you that we went through. Im long one of them. American airlines. American airlines we saw good news out of delta today. Should translate, somewhat, not entirely to American Airlines. Delta was kind of a nice positive surprise. Especially on the on the higher class more expensive tickets. But i dont know in terms of cheapness, this is pretty damn cheap. Well, guy here, he is not scared says you should buy one of the names. Why dont you head over to the plasma. Should i get up now. And deliver the fast pitch. I walk to the plasma. It may scare you and im doing a power pitch. Its called fast pitch this is what we do slide it errol. Amazes and are you are you kidding me crazy valuation got to be nuts. I am but im not nuts favorable into earnings. The stocks went to 2040 in Early September to ought of 1,800 now. That is one of the biggest moves we have seen in a while. But we have seen moves of this magnitude over the last five, six years all of which have been found buying on the back side. Fundamental change in the business no, nothing changed in terms of what amazon does there is no fundamental change its the same company it was a month ago when we walked about it racing toa trillion dollar market cap and bezos raising minimum wage at amazon, why do i think thats interesting . As much as i like to think he did it because he is charitable and out of the kindness of his heart injury thats part of it part of it was to get the media offer his back because he hasnt been as charitable as he should be but did he it to make walmart and target and all jack up prices as well that has a two fold effect of potentially hurting competition. Here a chart i mentioned still in a decent upfriend we havent broken yet i think there is a chance into earnings and amazon sets up as well as it could in this environment. So, guy, question for you, looking chinese amazon in the form of alibaba beaten down, amazon is up 47 alibaba down 17 are you worried that you get guys rotate out of one and continue to rotate and buy the other. Thats fire listen, if you have some china accord and president xi and trump are shaking hands, alibaba will rip and maybe you see selling in amazon. Could happen i have no idea ill take my chances that wont happen and ill take my chances amazon will be a buy in earnings. No more questions time to vote on guys pitch, buying or selling. Steve grasso. You said me at hello. Buy amazon ive been a lover of this stock. I think it turns so many different valves in the investment world i am worried about the alibaba rotation. Neat handwriting you wrote that yourself surprising. Karen. So if you have been waiting if you have been waiting for the chance, nothing has change i agree with guy on that completely if you have been waiting time to buy amazon brian kelly. I hope you can see it im saying hit the buy now button. Thats a you noticed the snuck the bitcoin b in there. Yeah. Thats weird. I still think buy amazon. Would you step in and buy amazon here . Phone our twitter poll at cnbc fast money. We reveal the results later in the show but as stocks sell off a shift from value to growth under way Karen Finerman explains. We have more fast money right after this hi, im joan lunden with a place for mom, the nations largest seniorliving referral service. For the past five years, ive spoken with hundreds of families and visited seniorcare communities around the country. And ive got to tell you, todays seniorliving communities are better than ever. 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The past ten years growth has outperformed value and by a lot. Growth stocks were up 260 since 2009 value is up only 160 look at the bill difference np no one buying vape you want to buy a company chief compared to value of assets. A low price to book ratio. That is the traditional criteria for buying value there are others but thats traditional. Value stocks can change overtime but right now missouri most value kbaul in three sector consumer staple was energy and bank stocks. In the last week there has been some evidence that investors prefer value or at the least that value is not sold as much as growth. Tech stocks, the ultimate growth sector are down 10 this week. The banks and energy and Consumer Staples down only 5 or 6 shifting the value would be a big deal for ten years we have been in low growth and low rates in that environment it made sense to buy the only secretary we are growth, which was technology and it almost it didnt matter how much you paid but now things are changing. We may be moving into an era of higher growth and rates. And in that environment owning tech may not be as desirable as it used to be. Thats the problem it may be more desirable to own value stocks unfortunately, we still need to have the dust settle before we can see a really clear trend back to you, mels aire. Bob thank you bob pisani tp. How can you tell the difference between a growth stock and value stock what does it pleen. Karen is at the plasma with the more you know. We hear about the talk about rotation out of voting into gral lets talk about what makes them value or growth. Certainly we start with fundamental price. High pe thats in the growth camp not a surprise obviously low pe would be in the value camp one of the other things some true, true Value Investors love to see is dividend that definitely goes in the value camp we see so many Growth Companies that couldnt pay a dividend Something Like a cult following stock, doesnt happen in value definitely in growths. So now lets go to a particular industry and see what kind of names we have and where they fall in the growth value spectrum right, so best buy this is definitely a value one we all know the story here, that amazon threat, the stock trades cheaply and have been able to survive. Thats definitely in the value camp stitch fix, for sure in the growth camp. We saw what happens when the growth isnt there the multiple is compressed the stock really gets crushed. Thats the downside of growth. On the value side, we have macys have been able to turn it around a bit and yet the stock is very cheap, low pe multiple and sort of medium between stitch fix a and some others is alta, high pe not superhigh. But this is a cult following tremendous growth but if they miss that stom could come in what i like to find garpy stocks growths at a reasonable price. That leads plea to the bulls with o eye, target you get growth and a reasonable price. Both growth and value. Karen its bk. Hey bk. Very interesting presentation my question is we have had a lot of people conoh saying you want to buy the value stocks with assets of the value ones, target or macys which of those own the most real estate that might be able to hedge you in an inflationary environment. Well macys for sure owns the most the most valuablereal estate however they have been trying to monetize that and hasnt been happening as quickly as people like so thats some asset to fall back on. But that was supposed to be a driver for the strategy and hasnt been. I think you got to look at it more on the operating business, how are they doing with that and thats cheap. Karen, thanks for that. The more you know with Karen Finerman coming up, square getting smashed after cfosarah fryer leaves the payment firm. Adding to the pain for the once hot stock. Is it about to catch cold for good plus trump isnt the only one sounding out on the fed. There is jim sounding out about a warning for rate hikes much more fast money still ahead. Do you hear that . No. Its quiet. Too quiet. Xfinity home cameras. Xfinity home gives you an extra pair of eyes to help watch over your family. Plus, you have added peace of mind from 24 7 professional monitoring. Xfinity home. Simple. Easy. Awesome. Xfinity customers, add xfinity home and get a great offer. Plus, ask how to get free installation. Call, go online, or demo in an xfinity store today. Welcome back to fast money. Time for a buzz kill check out square, sinking more than 10 adding to the so percent drop yesterday after cfo sarah friar announced her departure. The one highflying stock hit a high on october 1st but dounl from there shares down 30 more the month so far losing 12 billion in market cap hitting a new low today. It still doubled in 2018 you own the stock grasso. I made my first purchase below 13 doesnt make it better because these were profits you would love to take this hurts trading in. But there is payments. There is financial services. There is software. There is still a host of reasons to own the stock. You stale own it. Despite the fall off, despite sarah fryer leaving. Snishlly the selloff was the momentum versus sell offoff. The sarah was the last leg of the selloff. I still pleef in the story i stay with it. Karen. I agree steve i think the selloff today was 2. 5 billion frech on sarah friar because paypal was up today. Which is a close comp. Thats a statement she is a talented executive, no question but as steve said there are a number of divisions here hardware, square capital, Marketing Sales and all run by people with great experience, right . And they all report to jack. So thats interesting. She is a very talented executive. I dont mean to take anything away from her but there are a lot of buckets of value that report to jack and thats important to know. We talk about the fact that you know the banks havent traded well. Part of it is because Companies Like this disrupt the payments you want to be invested in the things that disrupt the old school stuff so its its a loss obviously to havesarah fryer go. But i still think here you want to be in square. Is this a loss for twitter . That jack doorsy doesnt have a talented number two executive to lean on over at square while he is also the ceo of twitter. But karen. Can i answer that they are doing a very expansive search, david veinier im not pronouncing the name right veinier is sort of a east coast finance guy, combined with a contest coast tech guy they together are doing a search the company is so big now and growing so rapidly they are getting somebody good. Twitter impact. Yes, but i mean then you have to ask its going from 45 to 27 over the course much two and a half months. How much of this is in a name. Twitter was actually higher not that it means anything but on a miserable day twitter showed life. I was wrong a couple days ago. I thought twitter 29 turned the corner that didnt happen but i think there is value in twitter. She is not leaving because of something with the stock she leaves because she has the ability. She is never going to be jack une t o th oc p xtheneecstk that steve grasso says looks so bad its actually good we have the name ron soh really . Going on at schwab. Thank you clients . 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Welcome back a very important programming note after hunl days for the market stick around. Tonight at 7 00 p. M. Eastern for market selloff special markets in turmoil you might see some familiar faces. You want to watch that you know what can you buy on amazon a cd of the sound track. You can listen to this immortal sound track. After america bought his pitch for amazon 57 we have not seen that in a long time. Its amazing. The final trade grasso. Alibaba been beaten down too long. Too far. Alibaba. Fedex i bought some today. I think the kpee is fine. Brian kelly mine is a blast from the past. Foss fates mosaic. Guy. Basking in the glory of the victory, mel facebook was higher today. Fb. Back here tomorrow at five fo mad money with jim cramer starts right now my anything is simple to make you money im here to level the Playing Field for all investors. Theres always a bull market somewhere, and i promise to help you find it. Mad money starts now hey, im cramer. Welcome to mad money. 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