pullbacks. great dividend, low multiple, and we want to be in it for capital market. >> carrie? >> amazon. if you look at the charts of amazon, walmart, costco, all right up to the right, we like what they're doing there and the platform seems to be what everybody wants. >> along with meta and alphabet, while nvidia and microsoft are in the red. "the exchange" is now. ♪ ♪ >> thank you, scott. welcome to "the exchange." i'm kelly evans. here's what's ahead this hour. we're still just at the beginning of tech's industrial revolution, and you can't draw a straight line to the winners and losers. we tells us where to look for opportunity, and it's not nvidia, it's not even just tech. she surprised us with her picks today. our technician is looking at the charts, where she's seeing bullish momentum right now. as we count down to the big

jobs report tomorrow, evan sloan is back, seeing an interesting trend that could be signaling big changes on the labor front. let's get to today's market and dom chu with the markets. kind of an odd day. >> but a record-setting one, kelly. what we have right now is a mixed session where it's just about maybe flat for the dow, marginally lower for the s&p 500 and nasdaq. but i'm going to try not to bury the lead. we did hit record highs. the s&p at one point hit a record high, and so did the nasdaq, as well. the dow at 38,828, up about 20 points, relatively flat on the session. 5343 is the level for the s&p 500, down about 10, 11 points. we were up higher by about eight points at one point today. down 14 points tat low, so tilting towards the lower end of that trading range. similar percentage move for the nasdaq composite index, sitting at 17,152. again, record highs intraday for

the s&p and nasdaq. we're keeping an eye on the retail side of things, that's the more retail oriented stores geared more towards value consumers. five below. results for quarterly results came in below estimates, and then their outlook wasn't as great, so shares down 13%. and that's well off the session lows. check out names like ali's bargain outlet, down 5%. dollar general, down 3.5%. dollar tree, moving lower after its earnings report. and tjx companies down about three quarters of 1%. so there's a little more stress on that lower income, value oriented bargain consumer. so keep an eye on the discount stores. the stock of the day, the year, the decade, whatever you want to call it, has been nvidia. we were down by 2.5%, which puts the market cap now below that $3 trillion mark, which it hit

yesterday. just around $2.95 trillion. but the relative strength or momentum tell well above its 50-day average price and the 200 day. the point here is, kelly, you could have a notable pullback in nvidia and this would still be a momentum driven trade, as well. so keep an eye there. and nvidia is just about 6.5% away from overtaking microsoft as the world's most valuable company. we know nvidia shares can do that on any given day. >> dom, the best stat from our chat yesterday was that if you had valued nvidia last year based on the actual earnings that it produced in the following four quarters, it would be trading at six times forward earnings. >> that's why everyone is looking at this price-to-growth earnings ratio, because if the growth is there, then maybe some folks feel more comfortable paying for it. we'll see what happens. >> dominic chu, thank you, sir. nvidia may be super hot

right now, especially with the ceo saying we're in a new industrial revolution thanks to ai. but my next guest used that language a few weeks back and advised investors to have patience. back for more is kim forest. kim, you took the words out of his mouth. >> i did, i did. maybe he was listening. no, totally kidding. i'm sure he has bigger plans for his day than listening to what i have to say. but i do have to say that it is the beginning of an industrial revolution like movement that he is helping bring to market through his unbelievably high-priced chips. >> unbelievably high-priced chips. so the nub of this is that while you kind of are on board with the vision for this ai industrial revolution, you're not necessarily saying that nvidia would be the best place to lay your bets right now. why? >> well, i mean, it depends on

what your timeline is. it's for the next short while, nvidia has a lead over just about everybody else. but if you can -- if you were in a business with 77% gross mar margins, the target's on your back. that's pretty much the easy thesis of this. and then you go to competitors that are most likely to be able to catch up, and that would be amd, and even intel. but i think you cannot just set it and forget it in the beginning of a change in thinking in technology. and that is exactly what ai and especially generative ai is. >> if you look back at the rise of the cloud computing, the mobile era, sometimes the investing strategy was pretty simple. it was kind of do the obvious thing until there's no reason -- until there's a reason not to. in other words, you bet on apple, you stick with it. you bet on the big cloud platform companies, you stick with that. it feels like the obvious thing

to do for now is to stick with nvidia until there's a reason not to. i'm not sure that reason has materialized yet. >> i agree with you, but you should be on the opportunity for what the next thing is. i have to say that ai, the momentum for investors, has to keep going by companies using at least this first tranche of ai is openai or generative ai or, you know, all this stuff that's close to that. now, my concern is this -- it's kind of goofy, you know, right now. you get some pretty goofy -- you know, there was the how do you stick cheese on pizza? you glue it says google's ai. there's some goofy things going on, but they have to make this productive because somebody has to pay for it. and businesses are the ones that are going to pay for this, because they need to enhance productivity. i truly believe, based on

everything i know about computer science and what this can do, these technologies can deliver it. it's just a matter of when and how. and that's what we're trying to figure out here as an investor is when is nvidia going to slip from its leadership position, if ever? and how is this technology going to be put to use, and where can we invest, that we can get a return on people using generative ai? >> and you have traditionally been sort of an investor in semis. so it sounds like you're still sticking with the intel and amd and figuring they can catch up enough to participate in this broad wave. do you have a view on the software companies? are they going to get can cannibalized by this change? >> no, i think they're going to probably, you know, buy rights to use some form of, you know, one of the big platform generative ai machines and try to start playing around with it.

i can't emphasize how expensive it is to train this stuff. and it really behooves companies like salesforce and even apple and microsoft to join with another company to be able to access the technology. and then invest in making it work for them, or solving a problem within their wheel house. but i do think out of nowhere can come another company. i'm always on the look for that, with a better way to use ai. and i think investors need to keep reading and looking for that company. >> all right. quickly before we go, the most interesting thing, sort of even as we're talking an't this major investment theme is that you're most excited about a couple of non-tech areas right now. what are they, quickly? >> sure. it's energy company exxonmobil and believe it or not, urban outfitters, because they have pants that apparently people want. but the thing to remember, both companies use technology very well, which makes them

productive. so tech is a thread in everything i think about. >> and denim has been a thread here lately, as well. kim, thank you very much for joining us. good to see you. let's turn now to a stock that went public today. it's smart glass company gauzy, priced at the lower end of the range at $17 a share. valuation at $250 million, nearly half of what the $500 million of what the company was aiming for. let's talk to the company's ceo. >> hi, thanks. >> congratulations on the ipo regardless. there are so many -- even this week we hear about the texas stock exchange that might go public. do you still think nasdaq is the best value proposition for an ipo these days? >> for gauzy it is. i mean, we're early on our growth, but with our customers and the business we need to do,

you know, our next step being -- our next step we need to be a public company for various reasons. we're serving oems in the aerospace industry and the automotive industry. we're retro fitting complete cities like london with its public transportation with no mirrors, and to take it to the next step, the flexible -- the flexibility we have as a public company kicks in. and also the confidence that customers can give us as a public company rather than a small, private company. >> let's talk about some of the technology that you have. it's a smart glass, and light company if i'm saying that correctly. but basically, you can do stuff with glass to make it dim and brighten. am i kind of getting it correct? >> 100%. we're developing materials that enable the control of light,

such as glass. so you need to control light through a facade of a building or through the window of a car instead of a sun visor on your windshield or roof top of your car or in the cabin shade of an airplane. gauzy manufactures the ability to control light through glass, and the company serves today for distinct end markets with our technologies. the aerospace industry, automotive, architecture, and the commercial vehicle space or any commercial production. >> i think it's interesting that -- i would love to -- i'm sure it's expensive, but if you had a car that could deploy fully your technology, i wouldn't drive home with the sun beaming in my face, and even the rear-view mirror, you think you can include mirror componented to eliminate that in the long

run. it would be nice to see innovation on these fronts that we haven't seen in sometime. >> yeah. i think you're exactly right. we could replace sun visors on your windshield and have only the area in the wind shield which interferes with the driver's line of sight tinted. and, you know, for better safety. i mean, that's why you have a sun visor for better confident, for better ambient control. today, most evs come with glass roofs because you're sitting on batteries and losing head face, so they're putting these thin, glass roof tops in. so one issue they have is the sun and with our technologies, you can solve that. you can control fully the light through electronically. that goes for many different application. >> you guys are also head quartered in tel aviv.

you're the first israeli company to ipo since october 7. i wonder if that has had any impact on your ipo? >> we really think it didn't. we're very proud to be head quartered in tel aviv. we're a global company today, about 25% of our employees are in tel aviv. but we are incorporated in germany, france, the u.s. we have not seen a real effect, our best quarter was q4 of '23 and even better in q1 of '24. we have not been impacted. we took some measures. 20% of our production is in israel, so we had some unique production capabilities redundant in our other sites. but we're a global company, and we're happy to show the resilience as a company, as also as a country. and we're very proud to be -- to

be here today and make this important mark in this -- in the u.s. exchange. >> it's a major milestone for any company. thank you for joining us to talk about it. >> thank you very much. coming up, while this week's data has been pointing towards a jobs slowdown, recruiter.com is reporting one key uptrend in hiring. we'll dig into that and why it could mean a big shift for the labor market. shares of lulu are shaking off disappointing second quarter guidance and up about 6%, but one analyst says valuations are perhaps a little overstretched. the warning signs he seizes ahead. "the exchange" is back after this. but it's not the critic who counts. with every swing and block, your game plan never changed. ♪♪ some still call it luck. let them.

because you know what it's always been. inevitable. ♪♪ ♪♪

welcome back. with a market flash here, roaring kitty roaring yet again. he just posted they'll be live streaming on youtube tomorrow to discuss gamestop holdings. gamestop is up about 16%. we're going to get the options trade ahead later in the show. i wanted to mention the significance of this, since roaring kitty has been talking

about his options, which will expire june 21, a lot of people have been wondering why they haven't seen him on youtube like they used to a couple of years ago, perhaps wanting to address the conspiracy theorys about what he is doing. we'll be hearing from him directly. gme up about 17% on that news. weekly jobless claims hitting a four-week high. could be an anomaly at the end of the school year, hiring shows signs of slowing. but skills based jobs remain high in demand, and recruiter.com reports roles that require a college degree dropped to 51% from 60%. jeanette chin went to the career expo on construction and trade here at bergen community college and spoke with trade organizations and job seekers alike. here's what they told us. >> it's a very severe problem right now, because a lot of the

people in the field are aging out and retiring. in the last decade or two, a lot of the students coming out of high school are being encouraged to go to colleges, so they're not going right into the fields that are requiring them right now. >> throughout my whole life, my family has been pushing college, college, college. i learned about trade school, and it really opened my eyes, you don't need a college degree to be successful. >> i'm here because, you know, i wanted to learn more about the construction industry, you know, it's always something i've been interested in. >> the fact that he could potentially go to a -- get a job and be trained tat same time while making money with benefits and health care, so he's provided for financially, his career goals was very interesting and exciting. >> getting the word out to kids in middle school, these careers

are not a fallback option, they're an opportunity to make money, to get an education without a lot of debt, and, you know, i mean zero debt. and a good opportunity to build a life, build a career for themselves. >> let's welcome back evan soan. that is a big drop. do you think it's an anomaly? >> no, i don't. and first of all, thanks for having me on the show. this is a prediction that we made earlier in the year, that the job market is shifting from degree to skills, we're seeing that. it also happens to be that the only three industries that we saw uptick in the recruiter index were really i.t. jobs, hospitality jobs, and then staffing and recruiting, which could also be industrial work. so those roles are less focused on college degree areas. certainly, we're looking to hire

skills, people that have the skills we're looking for. >> it's interesting to watch lifestyle wise, a lot of the people who have been working in those industries 20, 30 years. here in jersey, they have vacation homes, houses down the shore. so there's no emails to answer at 9:00 p.m., and in any case, broadly speaking, what do you expect is going on with the labor market? does this diminishing importance on the degree itself tell you things are tight and solid out there? >> yeah. so on the one hand, you know, are we going to stay below 4% unemployment? probably, hopefully. that might be the only shining light that we're seeing. but look, as you just showed, sentiment is down 2.7 out of 5, one of the lowest scores we had since we attracted overall recruiter sentiment. the other thing we look at is the actual number of open jobs that the recruiters are working on also is at a low. we went from 15.3 in april to 11.3 in may. so the number of jobs recruiters

are working on are also lower. so that doesn't point to an actual good job report for tomorrow. >> this is kind of the most, i don't want to quite say pessimistic, i don't think we're there yet, but a little more of a down beat commentary than we've had in some time, wouldn't you say? >> yeah, i hate to be the bearer of bad news, but if you look at month over month, the areas that have done incredibly well, the government jobs and the health care jobs. and they're ticked down in the recruiter index. and in other indexes in terms of these bedrock industries that have lifted the overall job market. and hospitality and i.t. which hire at lower rates. >> we focus so much on the big numbers, for obvious reasons.

but to also look closely at the industries tomorrow, if we add a net 180,000 jobs but a lot are in the areas you're describing, it's not a sign that the economy is plugging along. >> i couldn't have said it any better. they're coming out of school, and there's a great report done about the lack of industry level jobs. everybody wants somebody with experience. at the top of the interview, we said everybody wants someone with the skills necessary to get the job done. so these entry level jobs are having a hard time. and i think it is a reason that things could be a little on the more -- -- if i need a job and i have to have a job and i can't get a job with my college degree in the skill i have, i'm going to pick a job that's available in the hospitality sector or any sort of staffing role, because i need to work.

keeping that unemployment number low. what is is going on, on the wage front? >> so pretty consistent. a little bit higher this month in terms of the bulk of the recruiters seeing wages being stable. a few actually saw it tick down. so very, very few. 71% saying that they're the same, 18% seeing more. i think that's a trend that we were looking for in this soft landing, that wages are not really increasing and the only thing that's changing is that we did see in a report the number of people that quit was slightly higher than it was the month prior. so there's still this notion that i can quit my job and have the confidence that i'll find a job because the unemployment rate is so low. >> soft landing, let's hope these are the characteristics of one. evan, thanks so much. appreciate your time today. >> thank you, kelly.

coming up, the ecb, the bank of canada, both cutting rates by a quarter point this week. will the u.s. be next? we'll discuss with just six days until the fed's next decision. and gamestop up 20% now. if you have the risk appetite to piggy back on roaring kitty's -- "the exchange" is back with all of that.

welcome back to "the exchange." i'm tyler mathisen. here with your cnbc news update. the fda is reversing its 2022 ban on juul e-cigarettes. the products will still be allowed to stay in stores as it reviews information from the vape maker. today's action only puts the products under agency review. it's not an indication they will be fully cleared. steve bannon must report to prison next month to start the sentence -- start a sentence after being convicted for being in contempt of congress. a judge granted a prosecutor's request to force the former trump white house aide and republican provocateur to begin his four-month prison term after

an appeals court upheld his conjik shun. but the judge said he could appeal. and premier league teams will continue to use video assisted referees next season. at the meeting, the teams decided against scrapping the technology, despite a series of controversial calls last season. kelly, back to you. >> oh, boy. tyler, thank you. see you soon. coming up, nvidia battling it out with apple to play second fiddle to microsoft's market cap. but one technician says it could spell trouble for the broader market. he'll explain next. and check out shares of tesla under pressure this year, down nearly 30%. but that's not discouraging tesla's board chair when it comes to musk's potential $56 billion pay package today. he said musk has earned it. >> put yourself in his shoes. you've worked really hard,

incredibly hard over six years to lead the company through a transformative growth. nobody thought these gun oals w possible . shareholders would say what are you going to do, what's is the board going to do when he doesn't hit the goals and he's demote veited? so to me, after all of that effort to again have somebody overturn that package, with a deal that was struck, how would you feel?

welcome back. the ecb cutting interest rates today for the first time since 2019. just a day after canada became thefirst g7 country to cut. the question now, are they setting off a global race to lower rates? let's bring in steve liesman. steve? >> you know, kelly, it can't be a global rate cutting party until the fed shows up. even in europe, the ecb is not so much partying or easing as it says it's reducing how restrucktive its policy rate is. so it's being described as a cautious cut, the ecb reducing

its deposit rates by a quarter point to 4.25. it's the first rate cut by the ecb since 2019. you can see there, it's now late to the rate cutting gathering, which including europe, switzerland, and canada, as well. ecb president explaining the put by saying that underlying inflation has eased. inflation is forecast to decline over time towards the 2% target. and the real rates are more restrictive with the decline in inflation. importantly, she described the cut not as an easing but a removal of excess restriction. she suggested the ecb remains restr restrictive, so there could be further cuts to come, because the rates are still restrictive and far from neutral. she said they are data dependant. jpmorgan writing in the page of the cuts that in september, it is much more likely as there will be new staff projections to take stock of the outlook.

rates in the u.s. and europe are little changed today, and the outlook for fed rate cuts pretty much the same. but the ec b's reasoning for cuts that real or inflation adjusted rates have become more restrictive applies to the u.s., as well. it remains to be seen if fed chair powell is, you know, takes the same invitation to the party. >> it's become more restrictive they would argue because core inflation has come down somewhat? >> come down, exactly. i was just looking at those numbers. i couldn't get a chart ready for you, but let's call it, let's see, we're now -- i've got to put my glasses on. i'm sorry, kelly. 2.58 is the inflation adjusted rate if you use core pce. let's say a year ago, july 23, it was 0.93 real. so it's more than double the real rate when we're at much higher inflation rates. >> that would be a significant

change. a discussion that was percolated before our inflation rate started getting sticky again. >> that's really important, kelly, because we have sort of dropped that discussion, right? you had waller talking about that. i think even williams was talking about that, that you needed to bring down rates to keep from being more restrictive. that discussion isn't happening in the u.s. right now. >> we'll see if it picks back up. steve, thank you. steve liesman. sticking in the euro zone, european equities are gaining strength against u.s. stocks. joining me is katie stockton, a cnbc contributor. as someone of a skeptic in the long run, i love this take. many people have said you can hunt for value in europe. but you're talking more broadly. >> well, listen, european equities have been a source of long-term underperformance versus u.s. equities. that's been no different over the past year and a half or so. but since february, very

quietly, we have seen some outperformance unfold. it's been gradual, but if you take benchmarks, an etf relative to the spx, you'll see that the trend appears to have shifted. some of those ratios are getting above their down trending 200-day moving averages. and that's more meaningful than the relief rallies for europe that we have seen in the past in relative terms. both markets are in cyclical goal trends, so that's good news. they have positive, long-term momentum. but we think this could be the start of in-line performance over the coming year or so. if not, slight outperformance to continue for european equities. >> that's interesting. somewhat reassuring that both european and u.s. stocks appear to be in an uptrend. let's talk about bond yields. what do you see going on in the ten-year charts? just as we were breaking higher, now we're breaking back down.

>> we've been in the belief that ten-year yields are in a corrective phase within the context of a secular uptrend. that corrective phase could last even a year or two years, having started last october with the peak around 5%. just recently, we had a short-term breakdown in yield terms that was mirrored by etfs like tlt, a very popular traeshly bond etf or agg, another u.s. bond etf. so we're actually interested in taking advantage of this short-term shift here. we're looking for perhaps a bounce in yields tomorrow on the back of the jobs data, which could be an opportunity to add to the u.s. fixed income exposure to take advantage of the rising prices as yields come in a little bit. we don't think it will be dramatic, though. more of a sideways to lower trend, as effectively the gains in yields are digested going way back to that 2020 level. >> that's interesting, it tells

people maybe you can look at owning bonds and stocks again as we did through the whole 2010s, but your point is it might be a year or two we could be in this zone of lower for yields. so let's move on from the big picture discussion then. since you're here, i have to ask about nvidia. without talking about the market cap implications, what do you think about the stock move broadly speaking right now and where it might be heading next? >> it's really just been a beast. it's got such good strong upside momentum. and there is no loss of momentum at this time. so that's good news for those that hold nvidia except there is some risk. the initial support for nvidia is around $974. that's based on former resistance. there's been a series of gaps on the chart that could be closed and could be closed fairly quickly based on the nature of these gaps that are sometimes exhausted. we also for nvidia have some sign of upside exhaustion, our

trend exhaustion, that goes for on the weekly bar chart and also soon on the monthly bar chart. it just tells us that nvidia is not immune to consolidation and probably will begin to consolidate in the very near term. and with that, the market is tested a little bit, because the market has had such narrow but strong leadership from nvidia and the broader semiconductor complex. >> how do you square that then? if nvidia peters out, but at the same time, you say they still appear nb to be in this long-te uptrend, how will it play out? >> we are short term looking for a pullback in the equity market, especially those benchmarks that are weighted towards the heavier mega cap names. and yet we're still very bullish long-term. even intermediate term, we have seen a lot of breaks that suggest in the next three to

four months the market will be higher. we're not getting too concerned about a pullback. we think that one is likely from current levels. our message to clients has been perhaps hedge personally, but wait to add exposure, wait for the market to come to you. >> katie, thank you so much. coming up, shares of lulu lemon may be higher on the back of earnings, but the next guest is seeing right through those numbers and joins us with his take on lulu. don't go anywhere.

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welcome back. take another look at shares of gamestop, which have been paused and reopened a few different times. up 35% on news that roaring kitty, keith gill, will be hosting a youtube live tomorrow he said on reddit, and around noon eastern time. that, of course, could answer some questions about where exactly he's been. we've gotten his tweets but we haven't seen him on youtube.

this anticipation is sending shares skyrocketing, up 39% today. we'll keep an eye on it. lulu lemon shares are up around 5% after beating on the top and bottom line in their q1. but guidance for the current quarter was weaker than expected. a slowdown in north america was a headwind, and my next guest says profit margins are still lagging, markdowns are getting worse and making him wonder if the brand is overstretched. joining me now is my next guest. simeon, great to see you. >> good to be here, kelly. >> is it as simple as they're off trend now and denim is winning? >> i'm sure plenty of people a lot smarter than i am would say the answer is yes. but all i know if i deleted the word lulu and show you the report that just came out last night, you would tell me it looks like the bottom of the pack for retail reporters this cycle. lulu has been the outperformer forever, and it's a fantastic

brand. what they have done is tremendous. but we're used to talking about them as being the best story in retail. last night's gross margin just lags the group. and that raises questions we have to ask when you're at this size. >> so, in other words, in the past they could basically put whatever price they wanted on their clothes. they were so in demand, people would snap them up, even if it was $118 for some of their beautiful yoga pants. now they can't move the merchandise without significant price cuts or -- because why? because they just -- it seems like the customer -- again, this is my interpretation, they're minded elsewhere. they're not as excited to buy that lulu fashion. what is the company saying about what think they is going on here? >> their america business still grew. so it's not that people are running away, but what is the cost to drive that? lulu is going to get a big knock.

i think the question is simply did the brand overstretch? we have talked about forever brands have ubiquity levels. consumers see them as less cool. when that happen, they can drive revenues, but it comes as the cost of profit and brand health. that's what i'm looking at. so conversations around denim no longer being skinny mean there is's no long ear reason to buy leggings, in lulu's revenue they just put up would argue against that. but when we think about what should this company be worth and what is the brand worth? that dreaded word, that markdown word, all that means is that it costs them more to sell the same. >> exactly. >> that is something we look for, before brands hit that peak. >> you made a point, you think lulu is at an important crossroads and they have done quite well. you said the healthy level for brands and where they peak is around the $3 billion mark in america. lull su double that.

so the question investors have to ask how much retrenchment, if lulu sales were a technical chart, where are they trying to put in a bottom now? >> yeah. listen, technicals are beyond my intelligence scope, as well. but you're right, what we do know, for whatever reasons, moat brands are healthy at $3 billion. when they go up, they stretch. there are exceptions, like nike, but they have a lot of other things, lower price, higher markets, and ultimately more brands. i think what they need to figure out, looking at where the stock is. it's come down a lot, but $40 billion of market cap for a business that's doing $10 billion in revenue. that's a big discrepancy. so i think what we do need to internalize is, we're talking about a stock, i think the brand is strong and done a nice job. if the brand becomes less strong, we start looking at that gap. and that's a big delta if you

think about where these other businesses trade. so i think that's the question we need to answer when i look at this. if i can't pick lulu out without knowing its ticker, should i pay more for it than the other businesses? that's our biggest question right now. >> very good point. at this point, your target is still above the market or do you to bring it down, wait and see? >> i think right now we're at 25 times. that's our price target based on where the street is it's closer to 20. if lulu has brand equity, 20, 25 times we'll have risk. if it does not, people will say it used to be 30, 35. so it's really important to see what the next step is. if lulu shows america continues to grow, international will give them room. if america declines and this brand is push today far, we'll see that multiple come down. >> very well put. simeon, thank you for your time today. coming up, shares of gamestop soaring today after

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idris elba works here? mm-hmm. ya, he's super nice.

♪ welcome back. let's check gamestop again. it appears to be halted with a 27% gain and it happened a couple of times already and after roaring kitty has announced a livestream tomorrow and that brings his apparent position to an on paper value of over $200 million in the stock. the majority is a june 21st call options. our next guest says hitting the 40 level on the stock and we're at 40.18. she just took a position a few moments ago. let's bring in danielle shay. she's vice president of options at simpler trading. this is like hollywood drama in stock trading, danielle. what's running through your mind here? >> kelly, this is absolute craziness and i just want to point out that i'm not taking a position because of roaring kitty, however, he has started a short squeeze. the stock has 25% short below and it has earnings next week. it's very common that you'll see short sellers vying to cover before this earnings report and

it has a high volume breakout move. so for that reason, you know, i like to trade along and follow along. >> in other words, you think he's now going to drive the stock much higher and you're along for the ride? >> yes, that's correct, and i will just point out that this is a typical pattern that will happen in this stock before earnings anyway. so i think that he's just added a lot of fuel to this fire. >> i don't know what exactly you got in, you but how do you know how you can get out and if it were me i'd jump in at $10 higher, but how do you know how to get off? >> if you're a swing trader or a day trader. if you're a day trader you'll use perhaps a 15, maybe five-minute chart and you look for a break at the low in the high bar and you look for a loss of momentum and high volume, however if you're a swing trader you'd be using the timeframe chart and perhaps the 30-minute and you'd look for the same pattern. for me, progersonally with the

short squeeze day and i would like to use high volume because typically in that instance it will gap up the next morning. >> you're at 40 now and you were looking at that level to say the squeeze is on. >> yes, that's correct. >> could it double or is it more muted this time around or don't we know yet? >> in this kind of trade i don't like to make predictions like that, you know, $100 a share. what i like to do is trade it from one level to the next. so because we've just broken the recent previous high i'm looking for the next fibonacci extension targets which will be around $50 a share. however, as i note, if it does lose momentum you're not going to make the $50 price target so you take what you can get with this momentum move. >> i'm really curious what will happen here on june 21st. i know everybody is. i guess the questions are can he afford to buy all of the stock

he could -- and quite -- it's going to be a lucrative trade, right? depending how this pans out, but it's a huge amount of money to have to put up and we spoke to chris murphy at susquehanna the other day talking about how he can short the stock at the same t time. this is above my sophistication levels and what do you think he and others might be employing here in the next ten or so days? >> well, you know, kelly, i have to say that i'm very suspicious of that actual options expiration date because if you look at gamestop, it just doesn't make any sense. if you look at the last four quarters, for example, gamestop has traded three out of the last four quarters post-earnings. so i don't want to hold this position through earnings at all. i'm just looking at a trade for the next three, four days because they're reporting earnings on tuesday, and so i don't think it's a good idea to be holding this massive position after that earnings report and it's not something that i would recommend for me or any of my

traders. >> that is super, super interesting. any parting thoughts on this one before we go? >> well, you know, i think this entire thing has been incredibly entertaining, right? i know that people like to get involved and to have people asking me non-stop how you can get into gamestop. with this stock you can trade those out of the money calls, but just be careful because this is a stock that's being highly manipulated by an influencer online, so you can only risk what you can afford to lose. >> aren't those wise words for all of this? danielle, we'll leave it there. check back soon. thanks for your time. we appreciate it. >> thank you. >> danielle shay with simpler trading. that does it for "the exchange." tyler is getting set for "power lunch" and we'll pick that up after this break. don't go anywhere. music) ♪

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♪ ♪ [ inner monologue ] i knew what i had to do. because they never stop. no time to waste. this isn't sci-fi. this is precision ai. ♪ ♪ good afternoon, everybody. welcome to "power lunch," alongside kelly evans. stocks are moving higher on the dow and lower on the s&p and s&p. when i say a little bit, i do mean a little bit on the dow, 0.09, kelly. >> on the global rate cuts. a day after passing apple and the $3 trillion level, nvidia now the target of regulators. antitrust investigations have been opened into the two