bank of canada is not worried about the stability so much in the here and now, but the time europe buys what are they going to do with it? i believe that's a major topic in mexico this weekend. >> thanks, guys. see you later. what a day for you to be with us, mandy. >> we've had this fantastic team of guys doing heavy lifting for us. so, you know -- >> that's it for us. "fast money" coming up right now. see you tomorrow. >> have a good evening. live from the nasdaq market site in new york city's times square i'm melissa lee. reports coming out fast and furious about coordinated central bank action. pushing stocks into a whipsaw rally. steve liesman joins us to break it all down. steve, tell us what we know right now. >> here today there was a story from reuters about 3:05 saying there was going to be coordinated central bank action. that was followed by a series of comments from finance officials suggesting, for example, from japan, that they would act if it

was -- if the yen needed action from other countries, for example, from canada, an official saying that the minister there was suggesting that they should act to counter the effects of whatever happens on the greek election. i have skepticism about this story, melissa, because the only central banker who talked is mervyn king. he's talked about there will be additional monetary easing coming from england and for england and only for england. the idea of global coordinated action, melissa, at this moment is not corroborated by any other central bank officials. the ecb declined to comment. we've not heard anything from the federal reserve yet, melissa. >> let's be clear, steve, the reuters carl citing many sources for this. >> g-20 sources which typically, melissa, they involve finance officials or their leaders, not the central bankers who, as i understand it, bernanke is not

going to be in cabo at the g-20 meeting. >> we've seen what so many finance official assistant types, how it's unfolded in the european crisis. lots of conflicting headlines out of that, steve. thanks so much. i want to get the traders' take on this. joe, this comes as so many firms on the street are having this conversation that you had this morning. what is the exposure going into the weekend, to what is going to go on in greece? >> you're trying to protect yourself against potentially what could happen in greece. what could happen in europe. the situation. i think it's an unknown and i don't think central bank coordination should come as a surprise to anyone. i think all hands are on deck. when you look forward to the next week, an fomc meeting, a big meeting next friday in rome. hosting hollande and merkel. most importantly, look at the market from bottom-up now and enjoy the fact it appears financials and energy have found a trough. >> couple things. joe makes a good point. managers, hedge fund managers, traders, whoever's talking today in their investment committees not only about the downsided of

greece but the upside of greece. this is kind of the razor's edge it feels like the market is on. options traders probably have the best call here because i think people are predicting something significant in either direction. but, again, in terms of the contingencies we have to be just as concerned about how do we deal with greece on monday, in an upmarket move. we're running a very small book here which is intended to be very defensive. i do think based upon the reaction we saw today, steve pointed out the only thing we do know is that there's going to be a conference call amongst eu officials that evening. of course they're going to talk about the greek elections. they were going to do this. there's no surprise there. as he said, the bank of england is doing stuff for themselves. bank of swra pjapan, the whole of all this will be strengthening of the yen. they're basically, it's almost a battle cry. it's like look, people, if you do this you're going to continue to squash our economy by making our currency stronger. so, again, the yen will appreciate if all this activity takes place. that's what's kind of interesting because not everybody has the same interest here. >> the finance minister in japan has already said they will come out and defend the yen, that

they will -- the battle is on among central bankers. >> yeah, where there's smoke there's fire. to steve's point, it hasn't been corroborated by anybody, but i think it all plays into what's been going on in gold. if you look at gold, it's had a nice balance since the lows we put in in may. i think we spr a little bit of a double bottom from january and i think we're about to break a down trend we've been in since effectively september. so i do think gold will win to this. i know it's been a hard trade to be in. i still think that's where you need to be right now. >> whether or not this report is strew, karen, this shows how quickly the markets react to anything, any shred of hope, any shred of disappointment. that for a lot of people out there would make it a much harder market to invest in. >> it's a hard market to invest in. when i think about monday morning, however it turns out, immediately everyone's going to turn to well, what's next? we had a little bit of clarity on the greece situation, but what's next? where's funding for spain? where's italy, or you know, we had the french downgrade. so i think this is sort of a red herring.

it's an interesting distraction at the moment. but it is just one of many stories to come. >> well, listen, we take risk for a living and if you want to step out and take a little risk here, i think you could have some solace in the fact that we have, today, all these supposed leaks coming to the forefront. so in greece, you've got some polling that suggests the new democracy potentially is leading. 75% of greece wants the euro to stay in existence. now you have this ecb report as well. keep in mind, in terms of fiscal unity, it is incredibly silent right now. i think the only voice you could look at is look at the german ten-year bund which appears to now be trading similar to a lot of the periphery sovereign debt. you're seeing selling pressure there, yields which is 1.12, closer to 1.50. >> it's great we have jon najarian here, too. the option, the volatility factor, what markets are going to be dealing with tomorrow going into the weekend. this announcement this afternoon if it was anything real, on some level appeared as though people are trying to take the weekend

out of the e equation, give the markets a weekend to trade and square books on what may be happening. >> let's bring in an author, our "fast money" friend, larry mcdonald. larry, always good to see you. steve liesman is the reporter and he has some doubts about this notion that there will be coordinated central bank action. what are your thoughts? >> well, i was on with maria a couple weeks a s ago on "closi bell." bernanke was briefing senators about emergency managers. there's truth to that. i confirmed that with my friends at acg analytics. the next week, i would be long volatility. i think the banks in spain own -- the three big ones -- own $180 billion of spanish bonds that have gone from 108 to 92 1/2 in the last eight weeks. be long here. >> at the same time, the reuters report where this got started made it seem like the three elections happening over the

weekend, not just greece, it's egypt, it's france, that the outcome there will determine what the central bankers may or may not do. is there a scenario over the weekend, something good happens such as the pro-bailout party wins and that's actually a bad thing for the markets? >> well, i thing you have to go back to lehman. they know a potential bad outcome could happen next week. they want to have almost, foaming the runway, potential good news with bad news. i would say, another reason i want to be long here, say you get -- you're going to have the negotiations behind the scenes where different parties will be communicating with each other through the press. which can get really ugly, scary headlines and that's going to increase ball. >> in terms of behind the scenes negotiation, i mentioned before, you have the german bund that lost its bid oddly in month of june and is trading like the peripheries are. when you look at that, do you see potentially a pooling of debt collectively in europe? is that the message?

>> that's a good sign in the sense the market is starting to say the collateral liabilities of germy a many are building up. if germany is moving to the center those liabilities are more likely, means they're not going to go the deutsche mark. i noticed the spread between the u.s. ten-year and the german ten-year has come into the tightest level since february. so it's a sign that maybe they are softening. >> hey, larry, how at risk would be a backup in spreads here? in fact, we probably have the bet on the other side of this next week, no matter what, at least expectations are, that twist or some other factor comes in. so how would you be playing this vol? i know you're looking at this typically from treasury and credit spread perspective, but, you know, where do you think is the greatest opportunity, probably not there but probably more into risk assets? i'm not sure. >> yeah, you always look at the vix, call spreads on the vix, futures. i'm not really a vol guy. i would say 1340 on the s&p is a real big level. we failed up around this level a

few times. i think if you get north of 1340 i'd want to be -- i wouldn't want to be long vol. >> oddly enough, 1340 to larry's point is the correction of the recent low we made at a 1266.74 in the 52-week high. that number rings true. but i think you're sort of in the somewhat apocalyptic camp than i am. what's the worst case scenario for all this if it plays out? >> the worst case is the span irk banks have so much of the spanish bonds. it's such a large amount that the bond market doesn't trust them. they can't come to the capital markets over and over again to issue paper. the ecb has to come in and give them a bailout, has to be there to buy their bonds in public markets then provide a bailout. that would be -- that would create some serious volatility. >> so, larry, bottom line for us, you know, a week out, we look back and see that central banks have taken coordinated action and what would the market reaction be if that is the case? >> well, if you see coordinated

action, and i think the real bazookas are the deposit guarantees scheme and the esm banking license. >> right. >> you want those deposits to be guaranteed like we did in the united states. that really helped when bernanke pulled that move. it would allow the esm to loan money directly to the banks and wouldn't increase spain's debt to gdp and wouldn't subordinate the existing bonds. >> okay. larry, good to see you. thanks for stopping by. larry mcdonald. author of "a colossal failure of common sense." steven, our contrarian yaian, w do you think the outcome is? >> the way to play this is wait for the market to pop from nervous shorts out there. like we saw today. covering and shorted on the pop. >> so did you short on the pop today, steven? >> you know, i wasn't quick enough because the pop went away so quickly. frankly, i'm flat exposure because i think you're not going to see much. i think we've given the european

central banks way too much credit. deposit insurance should have come in already. the outflows of capital have been enormous. to give them the credit they're coming out with a massive plan where they can't agree on where to meet or what bottle of wine to order at dinner is sort of ludicrous. i think the aftermath, whatever they come out with, is what you're going to want to sell because nothing's getting better over there. >> right. in terms of the fop today, one sector that really reacted very big was the financial sector. it surprised a lot of the european banks, actually surging. a trade update at this point. shares of credit suisse for the outlier today, plunged 10% and stayed down by almost 10%. last week our own jon najarian had this to say about c.s. take a listen. >> they've loaded to the upside, in fact. credit suisse is up 3.9. i own that one as well. >> doc, are you telling ining d be putting money into these banks right here? >> i did into those three. bacrlays, bcs, credit suisse and

deutsche bank. >> picked the wrong one. >> two out of three bad. well, the problem -- the news, of course, swiss national bank saying credit suisse improved, suspend its dividend or issue shares. >> true. what happened is credit suisse did run, folks, from $19.05 up to $21. so that was, you know, a pretty night windfall on that move. lucki luckily, i'm out of credit suisse. i still own barclays. i still own deutsche bank. i'm looking for more moves here from some of these and depending on exactly what the news is, whether or not steve leaiesman right or whether or not we do have that coordinated effort by the g-20. i think this could really rock these banks to the upside still, melissa. >> but at this point, doctor, what's your base case scenario as to what happens? i imagine being in the three european banks you wouldn't want to necessarily have a position going into the weekend unless you had real clarity in your own mind. >> you're right. i may take them off tomorrow

depending on what happens. what happened here was, of course, they were fold by the swiss national bank, get your money out. >> it was not their godfather, by the way. they can't make them do that. they're not their regulator. >> the fact they were saying it so publicly it's like, you know, taking them out and sort of take them to the wood shed. that's what happened to the shares. they fell down to these levels. tim, as you know, they've sold off insurance. they don't have insurance, the same kinds of exposure to insurance anymore which is one revenue stream. the other revenue streams are a lot of wealthy people from around the world that got exposed because of u.s. investigations. that took away another revenue stream for them. so they don't have as many revenue streams available as they did in '08, so they might not recover as fast. as far as the swiss banks. >> doctor, see you later on in the show. jon najarian. meanwhile we're continuing to monitor the action out of europe. we'll get the latest from the ground live from greece. later, what lies behind this is one of the best trading ideas on this desk tonight. drilling down on a name that is

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nat gas, prices surging when an unexpected bullish storage report released. oil spiking nearly 2%. sitzi i sitting back above $84 a barrel mark. what's the catalyst for this trade? >> the catalyst for oil won't be until after july 1st. the trade you go with right now is natural gas. that was a huge move in natural gas. biggest move we've had since september of 2009 and it was on the back of really the storage figure. the build coming in at $67. five-year average is $88. producers clearly are cutting back now. you're going to get warm weather

coming in next week. you had contango come out of the market, front of the board up 33 cents. the year, up 10 cents. plain this in the ung i know you like. i'm playing it through upl. other names you look at is gas cog and apache. guy adami. >> apache had their analyst day today and the stock was up 4%. against the $80 low. bit of a double bottom from back in october. in terms of a trade, it's a lot farther away than it was a week or so ago. i think apache sets up nicely. >> i want to go back to the big story of the day, europe and the upcoming greek elections. how will it derail the rally potentially? let's go to michelle caruso-cabrera in athens for more on this. how is it looking? >> reporter: there's three possibilities come monday northern momonday morning more the markets. could see no outcome, could be

so indecisive that greek doesn't still have a government. you'll possibly see the markets around the world fall. another negative for markets would be if we see the young upstart, tsipris, he's been campaigning on renegotiating the bailout terms, rejecting the bailout and trying to on vince the greek people they can stay in the eurozone under the circumstances though the european union leaders said don't necessarily think so. we could definitely see the marts fall on that outcome. antonio samuras, head of the conservative party wins, i think we see rally in the markets worldwide. at the same time we could see violence in the streets in the coming days because the people on the ground here are very upset with the austerity measures and would rather see them rejected even if that would ultimately be a pipe dream. back to you. >> michelle, it's tim. real quick, what happens if the prevail, i think, view, which is that no government can be formed no matter who wins takes place. where are we? because there's a lot of bills to be paid by early july.

people feel like obviously if they don't get the person in place. what would be the next round of elections we should be looking for? i don't think anybody is looking forward to that run-up. >> reporter: no. well, it would be yet another month. if, indeed, we arrive on monday and it becomes pretty clear they're not going to form a government we would have to go through yet another election a month later. i have to tell you, though, there's a lot of optimism here, that, indeed, there will be a government formed. a month ago there were all these splinter parties that got decent chunks. most of the splinter parties have seen support fall away and seen the greek public fall more toward two leading parties. roughly commanding 30% each. when you start gaming out all the numbers and they're all these pundits who do it just like in the united states, we think that if either one of those parties commands a percentage lead, that either one of them can form a government. with a razor thin margin, but looks like there would be a government formed.

>> michelle caruso cabrera on the ground in athens. what's the talk trade ahead of the elections? go around the horn. joe, we started the snow off, i asked you about the conference call you had at your firm and how people are positioning. >> european exposure. it was highlighted last friday when they released the same-store sales, mcdonald's. it's a name i'm adding to here, 38% ex-po exposure. great franchise, trade of the day last week, trade of the day rather that we put on last week. adding to it heres it goes from where it is at $89 up to $93, $94. >> it is a defensive play yet it's not a defensive play perhaps in this environment with fx headwinds, with european exposure as joe mentioned. your thoughts especially given the goldman sachs' downgrade yesterday of mcdonald's? >> we talk about mcdonald's, selloff of this magnitude the last two years have been tremendous opportunities. i lean to joe's camp here.

if you want my trade ahead of this, i'm no bull irk ish if you want my trade ahead of this, i'm no bull irk i on the world. today you saw a reason to get low on the stock in terms of a reversal. so with a pretty relatively tight stop for this name, probably 31.50ish, 32, the reversal we saw to the upside in fcx sets up. >> it's not surprising, i have a value portfolio, walmart, target, macy's which we talked about yesterday. you know, things don't work out well, i'll probably get somewhat hit there. certainly not as bad. walmart, oil trading down, walmart has been a fbeneficiary of that. i have jp morgan, bank of america. i see a banking crisis around the world, there's no way they'll trade up. i can't win all the time. >> i would echo what guy's saying. deutsche bank's having their big resource conference and a few other people reaffirmed guidance they'd given on production for next year.

even hp who's been somewhat about medium term commodity prices this is your play. if you look at charts on a lot of these companies they have ground through the last probably four weeks of horrendous global growth data which is what should be driving what these guys trade on. however, i think if you look at where these valuations are you're more than compensated unless, of course, you have the eu implosion which the stocks are not trading on. again, i would guide myself toward the resource companies with the companies that have given you fresh guidance. we're a month away from earnings. this valely t lyis the call. we don't know where the order book is for a lot of the guys. you have to wait for fresh data. >> some people might say volatile volatility is the top trade. let's hit the volatility playbook. there's definitely options activity today that caught your attention. >> yeah, you know, it's interesting because of course with everything coming up it's not surprising a lot of people have been buying puts. when they to that, they drive the price of puts up. somebody realized maybe they might be getting too expensive. at least relative to the calls that is. what we saw was somebody selling about 6,000 of the spy july 120

puts and they used the proceeds to buy ten times as many upside calls. both the calls and the puts are about 10% out of the money, but because those puts have so much premium in them, they did this trade for even. that essentially means they get ten times the exposure to the upside that they, of the risk that they're taking to the downside. that is essentially how panicky people are. if you went 5% out on both sides you could get four times the leverage to the upside. from my perspective, those are favorable risk/reward relationships and i'd lean to taking a bullish bet but using options in that way to do it. coming up next, our special series with the best stock pickers on the street continues. stay tuned. a top ranked analyst is revealing his best picks in one of the hottest pockets in tech right after this. stay tuned.

what have you learned from this? >> never, ever, get complacent in risk. challenge everything. >> what was your first reaction when you were told this is a much greater problem than we first thought? >> this could be a little breathless. i'm telling everyone, you know what, it's going to be really tough. we need people to put on their jerseys, figure it out, help and we're going to get through this. we have to run a business. every day people are buying and selling and making loans and trading and that's, you know, we're -- i'm spending much more time on this than europe. [ male announcer ] how do you trade? with scottrader streaming quotes, any way you want. fully customize it for your trading process -- from thought to trade, on every screen. and all in real time. which makes it just like having your own trading floor, right at your fingertips. [ rodger ] at scottrade, seven dollar trades are just the start. try our easy-to-use scottrader streaming quotes. it's another reason more investors are saying... [ all ] i'm with scottrade.

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across the board today, not every stock can be a winner. qualcomm big buzz kill, losing more than 4% on rumors they may miss on earnings. stephen weiss, you actually flagged this. there are some concerns it's a supplier to the lumia phone. with nokia's woes, that's not positive for qualcomm. >> there are concerns hand set sales are slowing down. part wasnokia, samsung, scuttlebutt coming out. they had the worst possible rumors coming out at qualcomm. the 38 nanometer chip said consistently it won't be full on board again in terms of capacity until the end of the year.

concern they may lose share on the iphone 5 coming out. it drove the stock down. i still own it. to me it's a core position. i did not buy anymore. if it drops any further -- >> let's be clear on the 28 nanometer. there's not much you node eed t know except it goes into the iphone 5. >> exactly. let's move on to our next trade. top stock picker series continues. "final times" compiled a list of the top ten u.s. stock pickers beating their benchmarks by more than 17% in the past year. they're coming on the show this week at "fast money." we dive into the tech hardware space with charlie woolf. congratulations on the accolade. i want to let the viewers wait for your top stock pick at this point. i want to first talk about nokia and rimm. they're real standouts. you actually have hold ratings on them. despite your amazing track record and performance compared to your benchmark, you got hold ratings on them.

why do you think you missed in those stories? >> i did -- i was too optimistic. obviously, i was not recommending those stocks. >> right. >> and even in retrospect, i should have had sells on them. >> right. how do you think the nokia story ends at this point? because you don't have sell ratings on them now. >> well, i mean when the stock is down $2 or $1.50, it's kind of silly to put a sell on it, but i would say that with respect to both stocks, both nokia and rimm, both of them could conceivably disappear. >> really? >> if events don't conspire to sort of improve their prospects. >> your top stock pick at this point, charlie, is? >> my top three are apple, apple, apple. >> surprising. >> but it's been that way. i was the first analyst on the

street to raise my opinion on it back in 2003. so -- >> wow. and so since then it's been a buy. your price target on apple right now is what? >> 620. >> you're conservative. >> the reason being, i only revise my stock targets twice a year. apple is due for one in about a month. so it's likely to go up quite a bit. >> charlie, we're going to leave it there. i have to ask you, how long have you been an analyst? >> since 1985. >> so many -- >> and before that i was a professor at columbia business school. so -- >> okay. charlie, it was a pleasure to meet you in person. >> thank you. >> charlie wolf. >> my pleasure. >> let's stick with technology, go out to mike who's looking to make a trade on charlie's top pick, apple, using options. >> yeah, i'm specifically looking at the july 600 calls. you can pay just over $8 for these. i think they closed at $8.05. they were $8.65 when i looked at

them. 1.5%. it's interesting because this will capture earnings which come out in july. usually i favor buying longer data calls and selling the near data ones. in this case apple options have gotten a little bit cheaper than they were not that long ago. i think this is a good way to make a very sort of low-risk bullish bet on apple. >> low risk bullish bet. joe? >> apple, listen, again, we go back to what we talked about with facebook. apple was the facebook atm. it bottomed at that point. what you saw this week with the worldwide developers conference, it was a software refresh. it was a challenge to its competitors. it was a challenge to google, it was a challenge to microsoft with the upcoming windows 8, mac line looks great. we'll see them on the desk here soon hopefully. no reason not to own it. >> i'm just curious, tim, nokia was your girl at one point. >> i dumped her. i dumped her a long time ago. let's establish that. she was no longer a special -- i will say that -- >> if you would call her every once in a while.

>> you know how it gets. look, i would say nokia -- >> no, we don't. >> nokia's fall from grace was actually i think more extreme than rimm's. if you look at what's gone on there, because this was a company that was so far ahead of their field in a place where they really -- they owned the medium to lower range both cell phone and smart phone business. mel is still giggling over here. i would point out i think the samsung s3 release is actually going to be more important than the iphone's next release. i think actually if you look at it -- >> by the way, everybody's giggling because of the "you know how it gets." more options action tomorrow. on friday. >> what could that mean? >> 5:00. concentrate on dates. on twitter. coming up next, one of the leading voices on europe. we'll talk to him in another "fast first." sean egan is here. it is an interview you'll want to pay close attention to here on "fast money." stay tuned.

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welcome back welcome back to "fast." we're live. egan jones cuts its rating on france from bbb-plus to a-minus

this afternoon. joining us is sean egan, founder of egan jones ratings. sean, always good to have you with us. >> thank you, melissa. by the way it was "a" to bbb-plus. >> yes, of course it was being a downgrade and all. i want to get your take on the coordinated central bank action, sean. i wonder if you believe that is the case and if that does happen if it would change your outlook on sovereign ratings. >> we expect the central governments, central banks will react. the real canary in the coal mine, so to speak, is the funding for spain. the ten-year has gapped out to about 6.9%. it's up about 100 basis points over the past couple weeks. and that's probably the thing you have to worry about most. and in the case of france, if you look at the growth in the debt versus the gdp it's surprising and it's resulted in a fairly high debt to gdp. >> hey, sean, it's tim. how about, though, in france, the cost of funding for the french banks and knock-on

effects? because last year we were -- there was certainly plenty of rumors going around about the solvency of the two largest banks in france. we know who they are. so are you more concerned, because, again, in spain, it's less about the public finances even though ultimately they will bear them. it really is a banking system and private sector that needs to be transferred over to the public sector. how about france? >> tim, history has shown that the bank, the credit quality of the bank and the governments are joined at the hip. basically over the past year and a half or two years, every country whereby the banks have gotten in trouble, including the u.s., the governments have come to the rescue. and we don't expect that's going to be any different. we had an article that came out, it was about last july, where we identified banks that were in difficulty. there was a follow-up piece in "baron's" just this past weekend. those banks were down 39%, and you add another 12% for the

decline in the euro. it basically declined 50%. you can read the article. we had other things we pointed out we think are going to happen over the next year. >> in terms of the outcome over the weekend, sean, of the greek elections, do you anticipate making any ratings -- is there a scenario that would lead you to downgrade other countries based on what happens in greece this weekend? >> the problem, melissa, throughout all the eu is we question there's the wherewithal to pull them out of that. greece is obviously the country that's in the most difficulty. we don't think -- we commented on your show that there was no ability of greece to carry any debt. the gdp -- they have a huge deficit. the federal budget. the yields are gapping out above t 20%. there will be another restr restructuring. the ultimate recoveries won't be

any more than about 10%. >> sean, we're going to leave it there. thanks for joining us. sean egan of egan jones downgrading france today. meantime, we want to go to brian kelly, "fast money" contributor, of course, joins us on the fastline. you were making trades today in anticipation of what ended up happening today, coordinated announcements, reports of coordinated action. >> yeah, there's been chatter several weeks there's going to be some sort of global coordinated something or other. so today it certainly was heightened. obviously ahead of the weekend. and then finally with this leak from the g-20. i would say, though, i'm not exactly sure what they said. i mean, they said that they'll be there with liquidity, but there's a huge difference between liquidity and globally coordinated easing. i wouldn't buy too much into this. central banks will be there if needed if things fall apart. i think the biggest signal is they're just as nervous as anybody else. >> in terms of the reports of this happening versus it actually potentially happening, is the trade done?

>> i think the trade is done. absolutely the trade's done. they've told you that it's going to be liquidity only. i don't think any central bank in the world is going to put themselves under the g-20's control. and they can't because they have to control their own economy. so, now if they come out, perhaps the uk, with their new program, there might be a new trade in the uk. ewu is your trade there if you want to buy that. in terms of the u.s. markets and the globally coordinated, that trade is done as of this afternoon. >> brian, thanks a lot for phoning in. by the way, brian, happy birthday. >> happy birthday, b. >> he chose to spend it not with us? nice. >> shares the same birthday as our last guest as it turns out. that gentleman who was here, same year and everything, beakers. >> oh, really? >> he's still there. >> oh, the other guy. >> the other guy. >> i thought you meant the guy that was just -- now i get it. >> beakers, enjoy. want to go out to stephen, we

iss. stephen, you know, earlier in the session today there were thoughts the fed would enter a stimulus when it met last week. do you think that's a more credible belief as opposed to coordinated central bank action out of the g-20? >> no. >> neither. >> the reason is is that unless europe comes together with the real plan that works, not what they did with spain and banks, the fed is throwing good money after really bad money and it won't help. it all centers on europe, so i think they really hold their powder until it gets much worse than doing anything there. >> all right. let's move on to our next story. the supreme court due to rule on president obama's health care reform sometime this month. some stocks are already seeing some big action ahead of the decision. so what are you seeing right now? >> really strong activity. >> if you cross the $5 barrier, you bring in people that haven't been playing in here for a while. and somebody stepped up, bought

about 14,000 july calls. obviously the june calls expire tomorrow. so this is a play that extends into when the supreme court should rule. and as far as just one other, if i could, melissa -- >> of course. >> in the final hour, pete was telling me this. he was trading it, i wasn't. so i'm kind of ticked. but pete saw this huge surge in the spyder activity. the spy. and it is tens of thousands blocks of 90,000, 80,000, like rapidfire. as fast as you could fire them. i mean, this is, you know, pretty much the high frequency trading in options. they swept multiple exchanges. everything they had. so as far as whether or not this dies out tomorrow, there were an awful lot of bets this doesn't die out tomorrow. they traded 300,000 or 400,000 at one strike and they did the 129s, the 130s, the 133s. all the way up. buying calls. in the spy. they did it all the way up until the end of the day. >> so the action would indicate that there would be follow-through rally. is that what your belief is

personally? >> their basic bet is that something big pops even overnight from here. and that's why they're in these june options. that they only have those many options to trade. >> doc, good to see you. thanks a lot. if you're looking for the next big thing in tech, there are few people better to talk than our guests after this break. when we come back one of the earliest investors in names like twitter, zynga, facebook, is telling you the kpcompanies tha should be on your radar right now. stay tuned. ♪ there'll be the usual presentations on research. and development. some new members of the team will be introduced. the chairman emeritus will distribute his usual wisdom. and you? well, you're the chief life officer. you just need the right professional to help you take charge. ♪ what happens when classroom teachers get the training... ...and support they need? schools flourish and students blossom.

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coming up next hour on "mad money" don't miss cramer's special sell block, two body shops, drag race, and only one survives. plus the ceo of nat gas, spectra energy. all coming up at the top of the hour on "mad money." facebook stock struggles after its less than stellar ipo. the next big thing. who better to ask than sv angel co-founder david lee? sv angel funded several successful startups including facebook, twitter and four-square. pleasure to have you with us. >> thanks for having me on. >> i want to ask you a couple questions about facebook and the ipo. from underwriters perspective it was successful and raised money. stock perspective it's down 30%

from its ipo price. has that changed the discussion of exit strategies in silicon valley? >> not to my knowledge right now. in silicon valley, at least in my world, i should preface this by saying, our expertise is at the other end of the market in the startup world. and so we've really been insensitive to that in terms of it hasn't really affected our world whatsoever in terms of the start -- excuse me, the startup end of the spectrum. >> it hasn't affected at all the amounts of money given, it hasn't compressed valuations at all? >> no, we're not seeing it. i mean, for now, it's been really business as usual. we spend most of our time talking to the founders and the founders are really heads-down in terms of their main focus is building their company and building their product. >> you say at this point, forget facebook, that's old news. you want to go to twitter. obviously twitter would be the next potentially most anticipated ipo after facebook. what sort of valuation at this point would you put on this

company? >> well, again, you know, that's really outside -- that's out of my league in terms of valuations, but we do think we're very sort of enthusiastic investors in the company, users of the product. and we think it's going to be a great business. >> dave, let me ask you then, idc has a figure on display online ads somewhere around $20 billion to be spent by 2015. how it is exactly do you slice up that pie? you've got facebook announcing today the facebook exchange. how do you get that share? >> in terms of the startups or in terms of -- >> facebooks, twitters, the companies, themselves, that are vying for that $19 billion worth of ads. >> well, i think it's, you know, traditionally display advertising is the amount -- it's a function of the inventory, time spent on site and obviously people are spending a ton of time on facebook, other sites and services. >> correct. but you have today facebook coming out with this realtime bidding process. is that something that would

allow them to gain more of the market share? >> i would imagine. again, this is -- my focus is primarily on the startup world and what the startups are doing, but i would imagine that's going to help them. but i can't really speak for them. >> david, this space changes so quickly. everybody seems to know these days about four-square and drop box. that's all old hat. what's the site, what's the business that people should start looking at right now because it is going do be the next big thing? >> you know, it's hard for us to talk in terms of companies. we really talk in terms of themes. one of the themes that we've been looking at is the changing way in which people are shopping online. if the last five years were, you know, i call it, or we call it really transactional shopping. where you're looking for the digital camera. you search for it on google or on amazon. what we're seeing now with services like pinterest, people are going online using technology for the experience. so for some people actually shopping online is funner than

shopping offline. we actually think that's a huge opportunity. the second theme that we're looking at is this area of social discovery. again, you talked about facebook. facebook and other social networks were really about using technology or mapping your offline friends to the online world of social networks. we're seeing more and more startups use technology to create relationships and connections offline using technology. like airtime, which was started by sean fanning and sean parker. >> david, we're going to leave it there. thanks for your time. we appreciate it. david lee of sv angel. i know you use airtime. >> all the time. >> and war v. parker all the time. very important. >> listen, you know -- in all seriousness, everyone comes on and talks about the facebook valuation, twitter valuation, they talk about the social aspect in connecting you and i. it comes down to earnings and it comes down to monetizing the product and tell me how are you going to monetize it? that's where i was going with my

question. you have $20 being illion in ad. how are you going to slice up the pie and earn money in. coming up next, the moment we've been eagerly awaiting for all show long. three short minutes tim seymour will reveal what is behind the curtain. it's a rocking treat as you see there. lots of similarities. >> that's so uncanny. >> stay tuned for the trade. that's next. you have to dig a little. fidelity's etf market tracker shows you the big picture on how different asset classes are performing, and it lets you go in for a closer look at areas within a class or sector that may be bucking a larger trend. i'm stephen hett of fidelity investments. the etf market tracker is one more innovative reason serious investors are choosing fidelity. get 200 free trades today and explore your next investing idea.

let's do it, tim. >> all right. we talked a lot about europe and talked about the neighborhood which to me presents major opportunities at a time when commodity prices have been selling off. i'm going for total. tot. here's why. first of all, here's a stock that has a couple issues with it. clearly france, clearly european stock markets. one of the biggest plays a proxy play. the spill was a big deal, it was a big deal, it should be a big deal. people remember the bp fiasco. total has this solved. this has been, the stock lost $10.6 billion alone on the news. this is why you put the trade on. this is ridiculously cheap.

this is six times earnings. this is a 3.5, and that's versus exxon around five or six times. exxon at ten times earnings is ridiculously expensive. 8.4 dividend yield. this is a stock i want to hold. if you want to hedge this thing, exxon's a -- >> you definitely hedge it with royal dutch shell which trades over here. if you want to listen to a little bon jovi, slippery when wet put these guys on the map but holds up to the test of time. >> it does. >> you've often said to you -- >> you've never said that to me. i do understand your comment about, you know how it goes. >> we'll come right back. stay tuned. want to get behind the wheel of your future? then it could be time to rebuild your portfolio. tonight i'm taking a look under

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