NEW YORK (

TheStreet

) -- The sell-off intensified Thursday as the markets tanked on fears of another recession.

The Dow Jones Industrial Average

dropped 512.76, or 4.31%, to 11,383.68. The

S&P 500

lost 60.27, or 4.78%, to 1200.07. The

Nasdaq

lost 120.51, or 4.48%, to 2556.39.

Melissa Lee, the moderator of

CNBC

's "Fast Money" TV show asked the panel what they were doing today during the meltdown.

With the market in oversold territory and the S&P's RSI at 17.3 that matched the low of March, 2009, Tim Seymour said his company had a hot list of stocks it wanted to buy but "we're not sure we want to get back in."

For a breakout of some stocks from a recent "Fast Money" TV show, check out Dan Fitzpatrick's "3 Stocks I Saw on TV."

3 Stocks I Saw on TV

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Guy Adami said investors need to take the "emotion out of this." He said one stock he liked was

Walter Energy

(WLT)

whose price has been cut in half.

Karen Finerman said she was caught off guard by today's plunge, having fully expected a bounce. She said she sold some puts and had her eye on few stocks that looked attractive, including

Mosaic

(MOS) - Get Report

and to a lesser extent,

Ingersall Rand

(IR) - Get Report

.

She advised investors to have their hot lists ready. "Pick your price. Put it out there, and be disciplined."

Joe Terranova said he found refuge in the

iShares iBoxx $ Investment Grade Corporate Bond Fund

(IQD)

. He said he would be investing only in the tech sector and such stocks as

EMC

(EMC)

,

VMWare

(VMW) - Get Report

and

Aruba Networks

(ARUN)

.

Options trader JJ Kinahan said a lot of traders had learned their lesson from 2008 and had bought puts. Terranova said the selloff was exacerbated by high frequency trading, as evidenced in a sharp decline in silver from $42 to $39 in 30 minutes.

Seymour attributed the selloff to the "risk of policy mistakes all over the place." He alluded to the Bank of Japan's intervention in the currency markets against a strong yen, the European Central Bank's weak efforts to deal with euro zone financial crisis and the hints of another round of quantitative easing.

Finerman said the bar has been set very low for Friday's unemployment report. She said the market has priced in a pretty bad number. Adami said the S&P will head down to 1180 and then rally.

CNBC

political editor Steve Liesman said the Fed might intervene if the current situation continues but it will take a "hue and cry before it happens."

He said investors should be looking for stocks of companies that are less levered to international growth and companies that are not levered to U.S. government spending.

Adami said he liked

AT&T

(T) - Get Report

, while Seymour picked

Unilever

(UL) - Get Report

. Terranova said the dollar looks like it's reversing, a move that could weaken the gold trade. And Finerman said she liked

Altria

(MO) - Get Report

.

CNBC

reporter Kate Kelly said there was collateral damage felt from today's selloff among corporation acquisition targets owned by hedge funds including

Ralcorp Holdings

( RAH) and

Temple- Inland

( TIN).

Anthony Scaramucci, of Skybridge Capital, said the impact on hedge funds was lessen because most of them had taken steps to derisk coming into June.

However, he said hedge funds might have a problem with their 5% exposure to gold if the U.S. dollar strengthens and risk returns to the markets.

He said analysts at his hedge fund believe there is 50%-to-60% likelihood that there will be

QE3

to stave off another recession. He said the U.S. economy has been stymied by a dysfunctional government, business leaders sitting on cash and a huge unemployment problem, with 14.5 million people out of work.

He said the only part of the government that is working is the

Federal Reserve

.

Adam Parker, chief U.S. equity strategist for Morgan Stanley, said the S&P multiple will likely contract because of decelerating growth. He disagreed with Scaramucci on QE3, saying it's not a structural solution to the woes of the economy.

For a chartist view, Chris Verrone, of Strategas Research Partners, said bear rules apply in this type of market, which mean rallies should be eyed with suspicion and used as opportunities to sell.

Verrone said the next area of conjecture for the S&P will be 1170 and 1120.

Jens Nordvig, head of G10 FX Strategy at Nomura, was glum about the situation overseas. He alluded to the Bank of Japan's massive currency intervention against the yen and a broad-based bond crisis in Europe that is creating tension and havoc for the Swiss franc.

Although the financial sector was bruised in today's selloff, Chris Whalen, of Institutional Risk Analytics, said there were "better quality" bank stocks for investors who wanted to be in the financial space. His picks included such lower-beta, lower volitality names as

US Bancorp

(USB) - Get Report

and

PNC Financial Services

(PNC) - Get Report

.

In the final trades, Seymour said he liked

Petrobras

(PBR) - Get Report

. Adami said he believes the market will hold at 1,180 and rally. Finerman liked Altria while Terranova advised scaling into EMC Kelly said he would buy

EMC

(EMC)

.

--Written by David Tong in San Francisco.

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David Tong

.

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.

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.

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