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.

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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) - Get Bank of America Corp Report

, 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."

Lee brought in Dick Bove, an analyst with Rochdale Securities, for his assessment of BofA. He said the bank will encounter a few setbacks in the next few weeks but sees the stock, which closed at $13.33, soaring to $32. He said BofA can overcome its terrible loan-loss problems by the end of the year if the economy improves.

Adami, while respecting Bove's opinion, doesn't think it's a buy here and sees the stock heading down.

Lee noted the shares of homebuilders suffered today. Terranova said that will continue to happen until there is a bottom to housing.

Adami said

Home Depot

(HD) - Get Home Depot, Inc. (HD) Report

works as a trade because people are willing to put some money to spruce up their homes.

Lee said the industrials got clobbered, including stocks such as

Honeywell

(HON) - Get Honeywell International Inc. (HON) Report

and

General Electric

(GE) - Get General Electric Company (GE) Report

.

Terranova said he didn't know whether the sector is going to move forward to show any kind of leadership. Adami said investors should be cautious about

Caterpillar

(CAT) - Get Caterpillar Inc. Report

, saying he believes it "trades down."

Najarian said it's normal to expect profit-taking after such a runup. He said stocks such as

McDermott

(MDR) - Get McDermott International, Inc. Report

,

Foster Wheeler

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and

Fluor

(FLR) - Get Fluor Corporation Report

finally got caught up after they were up by as much as 35% to 40%.

TheStreet Recommends

Lee brought in Patricia Edwards, founder of Storehouse Partners, for her assessment of the selloff. She said a lot of her clients are scared and content with bond returns. Her best trades in this bearish market are

Wal-Mart

(WMT) - Get Walmart Inc. Report

and

Target

(TGT) - Get Target Corporation Report

.

Carter Worth, chief market technician for Oppenheimer & Co., came on the show to talk about making some money in pairs trades at a time when equities are dead. He said the theory behind these kinds of trades is that two normally highly correlated stocks have diverged but are expected to converge again.

His recommendations include buying

Daimler-Chrysler

( DAI) and shorting

Ford

(F) - Get Ford Motor Company Report

.

He would buy

Accenture

(ACN) - Get Accenture Plc Class A Report

and short

IBM

(IBM) - Get International Business Machines (IBM) Report

.

And he would buy

UBS

(UBS) - Get UBS Group AG Report

and short

Credit Suisse

(CS) - Get Credit Suisse Group AG Sponsored ADR Report

.

Lee brought in Win Thin, senior currency strategist for Brown Brothers Harriman, to comment on any possible market-moving news from the BRIC summit, which begins Tuesday.

He said he doesn't think leaders from Brazil, Russia, India and China will be talking down the piles of Treasuries and dollars they are sitting on. Rather he expects them to adopt a "responsible" tone with regards to the dollar after having emerged strong from the global economic crisis.

In a segment on Turkey, Seymour said the country is in a crossroads as it tries to rectify itself with an ambitious plan of tax cuts and an Obama-like stimulus plan.

He said the best way to play a trade on that country is with

iShares MSCI Turkey Index Fund

(TUR) - Get iShares MSCI Turkey ETF Report

or

Turkcell

(TKC) - Get Turkcell Iletisim Hizmetleri A.S. Sponsored ADR Report

.

In the final trades, Terranova was long

Microsoft

(MSFT) - Get Microsoft Corporation (MSFT) Report

, Adami liked

Wal-Mart

(WMT) - Get Walmart Inc. Report

, Seymour liked Turkcell, and Najarian liked

Sprint Nextel

(S) - Get SENTINELONE, INC. Report

.

"Check out

"'Fast Money'Portfolios of the Week" on Stockpickr every Thursday.