Stocks tumbled to 5 year lows on Wednesday as investors grappled with an increasingly dire outlook for the global economy. Also a growing belief that ratings agencies such as Moody’s ignored warning signs in the mortgage securities market eroded investor confidence.

Also, a plunge in emerging market assets and widespread de-leveraging were seen as further signs the credit crisis that has plagued the United States and Europe has begun to hit developing countries. Stock markets around the world have fallen sharply over the last two days.

In another sign of a dismal outlook for global economic prospects the price of copper, a major industrial metal, dove to a three-year low.

How are you trading?

I’m seeing massive liquidations in Brazil, Russia and other emerging markets and I think that’s what took down our market, says Tim Seymour. Corporate debt markets around the world are a mess. If you’re looking for a trade I would get short the iShares MSCI Germany Index Fund
, Seymour says.

The day’s action seems overdone to me, says Karen Finerman. The idea of slowing global growth is not new.

I put on a shiny happy trade, says Jeff Macke. I bought McDonald’sand I lost money. I’m also long the dollar via the PowerShares DB US Dollar Index Bullish ETF and long the Ultra Short S&P 500 Fund ETF. Those trades did well

We’ve been trading between 8200 and 9500 in the Dow , adds Guy Adami. Play the extremes.

This is a bear market, adds strategic investor Dennis Gartman. Rallies are to be sold and weakness is not to be bought.

What do you think? Tell us now!