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Tim Seymour: Market is Starting to Price for Implosion

Both the Dow and S&P tumbled on Wednesday after a string of negatives sent investors running for the exits.

Again, concerns about Greek debt presented headwinds after tens of thousands of people took to the streets to protest new austerity measures.

Meanwhile, banks came under fire after Moody's said it may cut the credit ratings of French banks, citing exposure to Greek debt.

The latest economic data was equally discouraging. New York State manufacturing data unexpectedly contracted in June, falling below zero for the first time since November.

Also Ford spooked the Street after it said higher commodity costs would likely pinch profit margins.

It's no secret that there are plenty of reasons to be pessimistic, but is there too much pessimism in the market?

Trader Tim Seymour sure thinks so. He concedes that we’re seeing signs of a global slowdown but he’s adamant it’s not a meltdown. “The data that came out wasn’t that bad on the growth side. It was weaker but still growing,” he says.

If the market goes much lower Seymour thinks it will be priced not for a slowdown but “for a complete implosion of the entire global financial system,” and Seymour does not expect to see anything nearly so dire.

Trader Karen Finerman is focused on the Vix trading over 20, which she takes a sign panic is coming into the market – and that could be bullish. “There is so much pessimism in the market I think at some point you’ve got to step up (and buy). But not yet,” she says.

Trader Steve Grasso thinks the market will trade completely on technicals. He points to a lack of clarity. “People don’t know what to expect so what can people trade – technicals.” He goes on to say the market is almost picture perfect, technically bouncing at established levels of support and fading at resistance.

Trader Guy Adami is very much focused on 1249 on the S&P. He fully expects the S&P to test that level – which is the March low. “I believe there’s a selloff of a larger magnitude on the horizon,” he says.

Adami points to the action in Google , Goldman Sachs , Freeport and Apple as market ‘tells.’ They led the rally as the market climbed and he thinks they’re now leading the S&P lower.

What do you think? We want to know!

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Trader disclosure: On June 15, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Adami Owns (AGU); Adami Owns (C); Adami Owns (GS); Adami Owns (INTC); Adami Owns (MSFT); Adami Owns (NUE); Adami Owns (BTU); Grasso Owns (AKS); Grasso Owns (AMD); Grasso Owns (ASTM); Grasso Owns (BA); Grasso Owns (BAC); Grasso Owns (C); Grasso Owns (D); Grasso Owns (HOV); Grasso Owns (JPM); Grasso Owns (LIT); Grasso Owns (LPX); Grasso Owns (MHY); Grasso Owns (NDAQ); Grasso Owns (PFE); Grasso Owns (PRST); Stutland Owns (BAC); Stutland Owns (GS) Bonds; Stutland Owns (GM); Stutland Owns (GOOG) Bull Option Spread; Stutland Owns (MSFT) Bonds; Stutland Owns (WMT), Is Short (WMT) Calls; Stutland Owns Silver Bear Option Spread; Stutland Owns (GLD); Finerman Owns (MSFT); Finerman Owns (BAC); Finerman Owns (AAPL)

For Brian Stutland
Stutland's Firm Is A Market Maker In (WMT) Futures And Options Holding Positions
Stutland's Firm Is A Market Maker Holding Positions In VIX Futures And Options And VXX Stock And Options

For Steve Grasso
Stuart Frankel & Its Partners Own (ABX)
Stuart Frankel & Its Partners Own (CSCO)
Stuart Frankel & Its Partners Own (CUBA)
Stuart Frankel & Its Partners Own (GERN)
Stuart Frankel & Its Partners Own (HPQ)
Stuart Frankel & Its Partners Own (HSPO)
Stuart Frankel & Its Partners Own (MU)
Stuart Frankel & Its Partners Own (MSFT)
Stuart Frankel & Its Partners Own (NYX)
Stuart Frankel & Its Partners Own (PFE)
Stuart Frankel & Its Partners Own (PFST)
Stuart Frankel & Its Partners Own (SDS)
Stuart Frankel & Its Partners Own (UAL)
Stuart Frankel & Its Partners Own (XRX)
Stuart Frankel & Its Partners Are Short (QQQQ)
Stuart Frankel & Its Partners Are Short (AAPL)

For Karen Finerman
Finerman's Firm Is Short (IWM)
Finerman's Firm Is Short (MDY)
Finerman's Firm Is Short (SPY)
Finerman's Firm Is Long S&P 500 Puts
Finerman's Firm Is Long Russell 2000 Puts
Finerman's Firm Owns (AAPL)
Finerman's Firm Owns (BAC) Leaps
Finerman's Firm Owns (MSFT)
Finerman's Firm Owns (WMT)

For Brian Kelly
Accounts Managed By Brian Kelly Capital Are Long U.S. Dollar
Accounts Managed By Brian Kelly Capital Own (GLD)
Accounts Managed By Brian Kelly Capital Own (SLV)
Accounts Managed By Brian Kelly Capital Own (USO) Puts
Accounts Managed By Brian Kelly Capital Own (IWM) Puts
Accounts Managed By Brian Kelly Capital Are Short (SPY)
Accounts Managed By Brian Kelly Capital Are Short (JJC)
Accounts Managed By Brian Kelly Capital Are Short (EWJ)
Accounts Managed By Brian Kelly Capital Are Short Euro
Accounts Managed By Brian Kelly Capital Are Short Yen
Accounts Managed By Brian Kelly Capital Are Short Pound
Accounts Managed By Brian Kelly Capital Are Short Australian Dollar



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