 the roller coaster session that we saw early buying lift all the major indices off the canvas and then a self-inflicted wound by the administration. I'm not talking about President Trump's criticism or displeasure with Jay Powell in the Federal Reserve, which by the way I think is legitimate even a brilliant political move that we'll discuss later in the show. The Dow climb, it erased those 100 points, it was building momentum and then Larry Cutlow contradicted a report of a possible meeting between President Trump and China's President Xi. Well with so much uncertainty swirling in the air it was a really ill time moment for such confusion. The rally effort lost traction and the Dow well now it's down almost 1400 points in the last two sessions. Now the session was interesting because finally we had all the hallmarks of panic wiping away the veneer of calm that I think that was actually a good thing. Massive rotation out of the spiders, 400 percent volume increase there. We saw some funds going to gold up 3 percent and some go back into bonds. Right now history tells us to be looking for opportunities. Now that said I hear your frustration when the experts say buy the dip every day. We know you only have so much money and right now probably even less nerve. I get that. Here's the trick. Don't focus on picking the bottom. The investors that get in a little bit early I think will be those that make the big money while those who are waiting for the bottom will miss the bottom and they'll continue to wait. In fact millions of would-be investors are still waiting for the retest of that March 2009 low. At this point look for the names that you know have great fundamentals and watch the tape. Let the market help you narrow your selection. Here to help us break it all down Jeffrey Cleveland, Peyton and Regals, Chief Economist, Stockswoosh, Melissa Armo and David Nelson, Bell Point Assets and Management's Chief Strategies. David what did you make A of the session? Late it felt like okay we had capitulation off almost 700 points and then we were down less than 300 points and then again we just drifted into the low. I think we all kind of expected it to continue because coming into the session the VIX just wasn't there. When this all started the VIX was down around 12 a lot of complacency. This is the fear index. Fear index and and you know if you look back over the last five years these bottoms tend to happen with the VIX somewhere north of 25 and the good news is that we hit that today and then I would say that right now you're probably within one to two trading sessions of at least the tradeable rally. Melissa? Well like I said last night if everybody watched the show the banks report tomorrow morning so the market could recover tomorrow but after a sell-off like yesterday wasn't surprised we gapped down this morning where we're down big last night we tried to rally today we tried to hold on we couldn't do it we dropped so tomorrow morning if the banks don't perform I think it's going to be very problematic and really what I'm concerned about with the sell-off even though I'm bullish on the market in the long term even into the end of the year even into 2019 even into 2020 I'm concerned that we're not that we opened the year at the Dow 24,800 around and so now we're about 25,000 in the close today and that isn't that good as far as looking at the whole year and we're in October that's the only thing I'm like you know what I mean? As an economist what should we be concerned about is the market telling us something about the economy that perhaps two weeks ago we hadn't thought about? Charles whenever you have big moves like this in markets as an economist you sit back and take what's changed has something changed in the fundamental story and the answer is no and in fact the data that we've seen in the last seven to ten days has been even better we've got an unemployment rate lower than it's been since the 1960s so I don't think the fundamental story has changed what's changed is we've had a nice run-up in stocks well we've had a couple of companies this week industrial names and material names that have warned and those stocks took it on the chin pretty good so and they're talking about higher cost they're talking about currencies particularly emerging market the currency's been weak we see weakness among the Chinese consumer hurting some of our luxury goods makers so does that work into your equation at all? I think globally you do have a little bit of weakness in the data we look at global purchasing manager indexes and you see that China in particular is teetering right on the 50 thresholds so right on the brink of expansion or contraction the world though as a whole is still growing I think this year at about four percent which would be a decent rate of growth so I'm not too worried and the thing that jumped out to me today actually Charles was Netflix I think Netflix was off eight percent are you telling me something in the last couple of days changed with the U.S. consumer such that Netflix was due I got to take the other side of that Charles because I look overseas when I see credit default swaps blow out and even sovereign debt like a developed nations like Italy that tells me something's wrong out there is Italy a developed nation I'm only being halfway facetious here but go ahead well look uh emerging market is problematic because in the end these are our customers and if they're hurting and likely because of the Fed right now which exacerbates that problem in the end 40 percent of S&P 500 revenue is international so we need these we need these economies doing better than they are right now that's a big problem for the market right now I think overall though remember if you buy right around that 2009 beginning of the Dow was around 10,000 you are up more than a hundred percent return in investment what if you didn't know and you've been waiting you know because again I started out explaining how a lot of people told me they were going to buy as soon as we retested that low of course it never happened and believe it or not millions of people missed the subsequent rally the question now is when is the opportunity for them because you seem to think this is going to be short-lived if you think we're going to rally into the end of the year I think again I'm positive because we're going into earnings season I would have a different outlook if it was the end of the year are you not concerned about some of the warnings that we've already seen warnings meaning what earnings war no no no no they don't know what they're going to report no no nobody knows nobody knows well we know you know the CEO of a company tells us that something's wrong we've got to suspect yeah but again something's wrong surprise you the banks gapped up and then they fell and sold off so they report tomorrow they report tomorrow morning and we'll see we'll see how that pans out but you know right now the yearning season when a company reports there's a report card also of how good or bad the analysts were predicting the number and right now expectations are pretty high my my fear is that we're going to fade that as we as as these companies I'm actually excited that they're high I want these expectations to be why yeah why because I want us to eclipse high expectations I want the bar to be very high I want to correct them they're much higher and of course the key is going to be guidance as we go into next year the comparison comparisons to this year are going to be extraordinarily difficult let's talk about those banks for a moment they have to come through three big banks Wells Fargo, PNC, JP Morgan I think all lies in JP Morgan now we know they're going to make a lot of money trading particularly this kind of volatility what do they have to say about the economy though from your point of view I think what they have to say is it's right out in front of us we're seeing four percent GDP growth here in the third quarter we're at 112 months in this expansion Charles it's going to be the longest expansion on records so we're going to eclipse the 120 month record of the 1990s this expansion is going to carry on and I think in a year's time investors will look back on this this period of as volatility but equities eventually end up going higher because equities go higher as long as the cycle continues the big question for investors is are we on the cusp of a more serious downturn as my friend says there are some signs of weakness globally but I don't think that that's a risk to my view I don't think it spills over this this contraction that we've just seen right now it's pretty normal right now and the one thing that I look at I put an S&P 500 chart and you look at 12 month forward earnings that's still pointed north at this point and it's in the end in the long run stocks follow earnings so right now you have to I started putting a list together today the names that were intriguing I was at 11 before I had to bolt out of the income day this show a lot of stocks in this carnage are looking pretty good like they're finding bottoms already what do you use as a buy signal Melissa as a technician strengthen the pre-market and post-market so that's what I want to see I want to see jp mortgage I want to see these stocks gap up and unlike previous earnings earlier this year they could rally because we've had such big sell-offs in other words just think of the common sense if all these stocks sold off in the last week so all the sellers are really out and the shorts are up so on good earnings and just think of this common sense on good earnings you're going to get people are running and waiting on the sidelines to buy in so any excuse any reason even though remember we talked about the data this up tomorrow morning it's not a big deal but if it's good any excuse any tweet from trump anything at all people are ready to pounce and that's what you want to look at you want to possibly have five or six hundred points tomorrow no I'm not going to say that I'm not going to say that at all I want to see it I want to see where we are tomorrow morning like it's 7 a.m. 8 a.m. 5 a.m. when these banks possible if we get good numbers from jp mortgage we could be up 500 points tomorrow that's a tough number but if you got a real blowout number you could you could certainly see a strong right I'm going to say four or five hundred is possible if we get the right combination anything's possible charles thank you very much def you can come back anytime all right folks now we we got some crucial changes in our fox business show lineup that we've got to share with you first off starting on Monday this show will be moving to 2 p.m. eastern after all the show's name making money and we want to be there with you during the markets to help you with these volatile moves so we're moving out of the 6 p.m. spot in its place will be the evening in it elizabeth mcdonald will be moving her show to this hour that starts on monday as well so obviously you want to keep it right here in fox business not coming up the president pointing a finger or several fingers if you will at the fed for this market's fall is the federal reserve and j pal are they local we'll debate it next