'Fast Money' Recap: Selloff Strategies

The markets sank on a big selloff Monday on fears of a global contraction.

The Dow Jones Industrial Average lost 200.72, or 2.35%, to 8,339.01, while the S&P 500 was down 28.19, or 3.06%, to 893.04. The Nasdaq slid 61.28, or 3.35%, to 1,766.19.

Melissa Lee, the moderator of CNBC's "Fast Money" TV show, said stocks suffered their worst drop in two months as the S&P moved into negative territory for the year.

Tim Seymour said the World Bank's downgrade spooked people, adding it felt as if there was more room for deleveraging.

Guy Adami said the next stop for the S&P is 870, which, he said, may be a good time for people on the sidelines to get in.

Joe Terranova said today was different from other trading days because every sector was down.

Dennis Gartman was equally as glum, saying he sees two to three more weeks of downside movement. He said he was shorting Potash(POT Quote) and throwing Alcoa(AA Quote) overboard.

He said he spent the day trying to get out of commodity trades on which he was long.

The selloff was pronounced in the financials, led by Bank of America (BAC Quote), down 10% and the Dow's worst performer.

Instead of trading on the long side, Adami said he would short names such as JPMorgan Chase(JPM Quote) and Wells Fargo (WFC Quote).

Shifting to tech, Lee brought in Jim Goldman, who reported that employees at Apple (AAPL Quote) had told him that they had seen him at work today.