On Monday chatter on the floor wasn't about higher or lower - it seemed most everyone agreed on lower - instead the chatter was all about how big the next down move might be.
If there was ever a day to run for the exits – Monday looked like the day.
First, the fundamentals were terrible - Reports suggested the Super Committee failed to reach a deal and borrowing costs for deeply indebted European countriescontinued to edge higher.
But something else bothered our pros.
“The euro spiked higher but the S&P didn’t spike higher and that’s troubling for the bulls – it suggests the market wants to explore lower levels,” says pro trader Steve Grasso.
Trader Abigail Doolittle agrees. “It’s the first time in a long time we’re not seeing the equity markets follow the euro on an intra-day basis.”
All told, investors were cashing out rather than risking a whoosh lower.
“Perception is reality,” reminds Grasso. “To me, – it feels like we’re on the precipice of a big-sell off.”
”It all suggests risk off,” adds Doolittle.
Looking at the technicals, Grasso suggests watching 1183. “It’s a retracement level – 50% form the highs to the 1074 lows.
If key levels don’t hold, look out below. “I think it goes down to 1120,” says Doolittle.
That's not to say everyone is bearish - trader Pete Najarian isn't.
"We're not seeing the Vix explode above 40," he says. "I'd expect more volatility if we were on the brink of something big."
In fact, Najarian is a strategic buyer. "Look at rails that have been beaten down – CNI under $75 and Mosaic in the ag space – are attractive. Also big Pharma. I think there are definitely opportunities."
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Trader disclosure: On Nov. 21, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Weiss owns NFLX puts; Weiss owns HPQ; Weiss owns RIMM; Weiss owns SDS; Weiss owns UGL; Weiss is short CAT; Weiss is short FLR; Weiss is short JEC; Weiss is short EUR; Weiss is short QCOM; Najarian pending; Grasso owns AKS; Grasso owns AMR; Grasso owns ASTM; Grasso owns AVAV; Grasso owns BA; Grasso owns BAC; Grasso owns D; Grasso owns LIT; Grasso owns MHY; Grasso owns PFE; Grasso owns PRST; Grasso owns S; Grasso owns XLU;
Brian Marshall
No disclosures
Deborah Weinswig
Citigroup Global Markets Inc. or its affiliates beneficially owns 1% or more of any class of common equity securities of JC Penney Co Inc, Saks Inc, SUPERVALU INC. This position reflects information available as of the prior business day.
Within the past 12 months, Citigroup Global Markets Inc. or its affiliates has acted as manager or co-manager of an offering of securities of Dollar General Corp., Target Corp, Wal-Mart Stores Inc.
Citigroup Global Markets Inc. or its affiliates has received compensation for investment banking services provided within the past 12 months from Dollar General Corp., Kroger Co, Target Corp, Wal-Mart Stores Inc.
Citigroup Global Markets Inc. or its affiliates expects to receive or intends to seek, within the next three months, compensation for investment banking services from Kroger Co.
Citigroup Global Markets Inc. or an affiliate received compensation for products and services other than investment banking services from CVS Caremark Corp, Dollar General Corp., JC Penney Co Inc, Kohl's Corp, Kroger Co, Macys Inc, Safeway Inc, SUPERVALU INC, Target Corp, Walgreen Co, Wal-Mart Stores Inc, Costco Wholesale Corp in the past 12 months.
Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as investment banking client(s): Dollar General Corp., Kroger Co, Target Corp, Wal-Mart Stores Inc.
Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as clients, and the services provided were non-investment-banking, securities-related: CVS Caremark Corp, Dollar General Corp., JC Penney Co Inc, Kohl's Corp, Kroger Co, Macys Inc, Safeway Inc, Saks Inc, SUPERVALU INC, Target Corp, Walgreen Co, Wal-Mart Stores Inc, Costco Wholesale Corp.
Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as clients, and the services provided were non-investment-banking, non-securities-related: CVS Caremark Corp, Dollar General Corp., JC Penney Co Inc, Kohl's Corp, Kroger Co, Macys Inc, Safeway Inc, SUPERVALU INC, Target Corp, Walgreen Co, Wal-Mart Stores Inc, Costco Wholesale Corp.
Citigroup Global Markets Inc. or an affiliate received compensation in the past 12 months from Dollar General Corp..
Analysts' compensation is determined based upon activities and services intended to benefit the investor clients of Citigroup Global Markets Inc. and its affiliates ("the Firm"). Like all Firm employees, analysts receive compensation that is impacted by overall firm profitability which includes investment banking revenues.
The Firm is a market maker in the publicly traded equity securities of CVS Caremark Corp, Macys Inc, Costco Wholesale Corp.
Matthew Czepliewicz
No disclosures
Kulbinder Garcha
The analyst(s) responsible for preparing this (RIMM) research report received compensation that is based upon various factors including Credit Suisse's total revenues, a portion of which are generated by Credit Suisse's investment banking activities.
The analyst(s) responsible for preparing this (AAPL) research report received compensation that is based upon various factors including Credit Suisse's total revenues, a portion of which are generated by Credit Suisse's investment banking activities.
The analyst(s) responsible for preparing this (HPQ) research report received compensation that is based upon various factors including Credit Suisse's total revenues, a portion of which are generated by Credit Suisse's investment banking activities.
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