'Fast Money' Recap: Selloff Worries

The markets were shaken Monday by a broad-based selloff.

The Dow Jones Industrial Average fell 187.13, or 2.13%, to 8,612.13, while the S&P 500 dropped 22.49, or 2.38%, to 923.72. The Nasdaq lost 42.42, or 2.28%, to 1,816.38.

Melissa Lee, the moderator of CNBC's "Fast Money" TV show, said the stocks fell the most in a month and ended up near the session's lows.

Guy Adami told investors they should be concerned about today's market action. He said the next significant leg is down, anywhere between 8% to 10%.

Joe Terranova said the new normal is to take the risk off the table. However, he said he wouldn't short any of the resource or commodity names. Rather, he said he would be a buyer of them on dips.

Pete Najarian said the pullback on the commodity space is natural after the huge runup in recent weeks. He said volatility is back because "not all of the problems have been fixed."

Terranova said the market needs the financials to participate and can't be sustained on just oil and resources.

Lee shifted to the decline in the financials, which were led by Bank of America (BAC Quote), which was off 2.92%.

Terranova said investors need to wait until second-quarter earnings next month to see where the banks stand and whether they can show "normalized earnings."

Tim Seymour said President Obama's speech on Wednesday on tougher regulatory measures for the financial industry will also play a role. "I'm sure the banks are going to have much heavier constraints and less profitability."