dangerous. he had a blood soaked hand, then had to undergo reconstructive hand surgery to repair the injury. >> you better not be playing with drones at home. concerned about you with your new tech mania. >> that does it for us on closing bell. thank you so much. really appreciate it. time for "fast money" in just moments. actually, melissa lee, straight over to you guys. skroop thank you, kelly. live from the nasdaq market site overlooking times square, this is "fast money." i'm melissa lee. traders are tim seymour, dan nath nathan, karen finerman and guy adami. carson block of muddy waters will unveil what he called the latest pump and dump scheme. you will not want to miss this interview. plus, while executives are arguing over twitter, the stock has officially entered into a brutal death cross. we'll tell what you that means for investors and how you can profit. first to our top story and the potential reason why america's most loved stom apple is on the

cusp of surging hire. according to reports they are set to sell a new bond. each time they have gone to the bond market it's coincided with a nearly 20% gain in the stock in the six months immediately following the sale. the stock stuck in neutral right now and apple expected to tap the bond market this week. is now the time to buy? guy adami, what do you say? >> let me be clear, tim and karen have had apple spot on for a long time. i have not. but how do you trade it now? just look at the pattern of the stock since september. you had this big run up into september, followed by a little bit of a sell-off, flat line for a while, next leg higher in november/december followed by a flat line for a couple months. now you're in the same type of pattern. had this huge run-up basically into march. we flat lined since. i think it's basing until the next leg higher. $155 is the number i've been talking about. you're talking about a 20% gain. that puts it at $156.

so can it move higher? absolutely it can. pattern recognition suggests the stock goes higher. >> think about what poe sengsly $1.6 billion could be used for, stock repurchases. >> an acquisition. but this ain't their first $1.6 billion. i mean so i don't really know what incrementally that does. i think that cannot be a reason to own apple. and i think the correlation between the bond move and the stock is probably due to something else i think. so, you know, the capital allocation story is a good one. po me though this wouldn't be the reason to do it. >> i think what karen is saying, when apple did their first $17 billion deal in april of 2013, the stock was at the lows. the stock was at $55 in presplit land and this was a stock that needed a lot of different catalysts and one of them was the capital markets thing. to say another bond deal is another reason to get exciteded

about money going back to shareholders. to assume they can do anything close to it because they're now changing their religion, i think is absurd. i think we're in an environment right now where if you're a corporate treasurer and you're not thinking about how to borrow money as cheaply as possible you're not doing owe your job. to say this company is going to use it as a catalyst, worldwide developer conference coming up, not a catalyst either, but that's at least a place you should start talking about fundamentals of the company but there are no new products. it's about the apple refresh and that's it. >> what is the catalyst then in. >> the catalyst has always been products. here is a company that has bought back $80 billion of their stock over the last 2 1/2 years or so. they have $193 billion in cash. to karen's point, this is not their first $1.6 billion but a lot of that cash is overseas. to continue to fund the buyback and dividends they have to raise cash because a lot of it overseas. they're waiting for the repatriation.

that's going to be a massive catalyst at some point in the future. it's probably after the next presidential election though because there's so many u.s. caps that have all this cash. i'm going to say i think the wwdc is important, not that there's anything that's going to come out of it. there are the potential for surprises. i don't think expectations are high, but this is a company that needs to trade on new products and i think the one they just released, they're going to spend some time with the software developer kit for the watch, we're going to really need to see why this is a compelling product. to me so far as a user, i'm not convinced. >> kar karen -- >> your family has like six iphones, the watch, and you hate this -- >> i have every other one of their products and i love them all. this is a very uncompelling product. it really should be in data like the google glass was. i just don't know. they're going to have to tell us why we need to use this in the ecosystem. >> i thought your theory was this will now put rolex out of

business. >> it should have put swatch out out of business at the right price point. >> prices will come down. >> you can say that but their asps for all their products actually went up other than ipad and i think this thing the way it exists right now will go the way of the ipad. >> what is the next catalyst in your view? what are you looking forward to? you are a shareholder of the stock. what do you say this is going to hahn and that will jolt the stock. >> definitely capital allocation has been part of the reason because valuation, so much of that is made up of capital allocation. i don't think it's the car. i'm not in it for the car at all. i think it probably is something more of an ecosystem with software. apple pay hasn't -- to my knowledge i don't think it's really been part of the story, but something where they capture the user in a way that isn't a hardware product. >> catalyst is that apple -- i think what the genius of apple is, they make people feel like they are compelled to own their

products. watch notwithstanding, most of their stuff is pretty eubiquitos at this point. everybody mabs makes a cool phone, everybody makes the tablet. they're pretty much the same but there's a cachs cachet that goe apple. the next leg to me is up to $155. >> so you would be a buyer of the stock here at these levels? >> yes. >> i have been wrong for a while. i said at the top of the show but, yes, to answer your question. >> tim cook era they seem to be a lot more shareholderer jor ge yented than jobs ever was. for jobs it was about putting a dent in the universe. >> you hold stocks. >> yes. >> i think down at $110 if you can get it there, that's the level. next year earnings and sales growth expected to be about 6% and 7%. that's a far cry from the big bump that they had this year.

so the stock at 13, 14 times is probably adequately valued when you think about it. >> so no. >> no. i think there's a floor on it because i think they will always buy stock aggressively. they have done it accelerated. they will do it down 10%, 15% aggressively. >> that's down 15%. i bought the stock two weeks ago. i own it. wwdc will point out the things they're doing and doing well. i think you can own the company right here. >> intel confirming a nearly $17 billion altera purchase for a huge premium. this as the nasdaq hit a new closing high last week. take a listen to what the ceo of intel said about the deal moments ago on "closing bell." >> we compare it against the advantage of investing in our stock or giving dividends and it has to pass that hurdle. >> so as tech companies continue to shell out massive amounts to buy out others, is it safe to

say the tech market is actually undervalued? there is a buyer here. the buyer being the other companies. >> on the altera deal, i think this is kind of a tuck in for intel. i think the deal wasn't terribly accretive. the best thing intel could have done is buy their own shares back which would have been 15% accretive in my view. are they paying with shares or are they paying with cash? that's part of the barometer how you look at a deal. but big cap tech right now is very cheap relative to the market so no. i think a lot of these guys are in a good position to buy stock and doing accretive deals. >> relative to intel's cash balance or altera but when you think about the broadcom of either deal, that's a bigger stretch. intel paid eight times sales for altera. on an expense basis that's really, really expensive. there aren't too many large cap semi stock that is are trading at that. you know what broadcom went for? four times sales. >> when a company chooses to use

stock, does that mean they think their own stock is fully valued. >> they think it's valued enough. it depends on the rest of the balance sheet. if they have cash and choose to use their own stock, i think that's a very bad sign but if you look at the microsofts, the oracles, those kind of names, even hp and ibm can afford a lot of acquisitions. so those guys aren't expensive but i would rather see them use cash than stock. >> look at the last couple quarters for altera though. have not been great. it is slow based but it is a declining business in both revenues, eps, and in operating margins. they absolutely paid up. $15 billion to tuck in. i guess it is. but that's still not an insignificant deal. i think they would have been much better off to tim's point buying back their own stock, far more accretive or if you want to get aggressive, instead of going into the server world, by fireeye or palo alto networks.

build on what you did with mcafee and then rebuild off of that. but to me altera, you're buying a declining business, you want to get into pcs and get into server clouds, i get it. i think there are better moves. >> hedge funds are logging their best move against the yen and dennis gartman said they're about to make a ton of money. plus biotech stocks on the move today. but there was one interview that you may have missed that could make you a lot of money. we'll bring it to you later on. later, the man himself, carson block, the famed short seller who has taken down a number of companies. he's on to the next pump and dump scam and it's sure to rock the market. don't miss our live interview with him all on "fast."

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tesla kicking off our top trade. ceo elon musk making headlines taking on "the l.a. times" article claiming his companies are receiving government subsidies. phil lebeau asked musk how crucial the incentives are for developing his businesses. >> none of the incentives are necessary. this is an important thing to

appreciate. none of them are necessary. they're all helpful. what the incentives do is they are catalysts. they improve the rate at which a certain thing happens, and the reason these incentives are put in place is because the voters want a particular thing to happen and they want it to happen faster than it might otherwise occur. >> the other point he made was that his industry is getting 1/1,000th of the subsidies the oil and gas industry has been getting. >> if you look at what he's doing for his industry, that he is no question people should be listening to everything he has to say. this is where i come to a place with tesla where i'm getting more interested. it's not about the incentives but it is about what's going on with the whole utility business, the power pack or stationary storage. this is where analysts really have no idea how to value this company and they can throw all kinds of darts. it could be 25% of eps by 2020.

for someone that's been very critical on the valuation of this as an auto company, this is exactly -- and the incentives and everything they're doing for the sector is why you should be excited and why tesla is more important than as an auto company. >> you like it as an alternative energy company. >> i do and i think the news will get better. looking at inventories and looking at receivables and production profiles is something you haven't been able to track. they've been pushing the numbers out. let's listen to stationary storage. >> $250 is still a tough level for tesla to cross and hold. >> but the fact is stays around $246 for a while leads me to believe it will make the next leg higher. i don't think the market gives you that long a time to sell what would be the top. against $225, levels in tesla have been extraordinarily strong. i do think there are tailwinds to the name. i'd stay long tesla here. >> mel, you asked a tough question, what about the model x. we need to see this suv and we need to see mass market. he actually did a great job i

think of talking about this mass market opportunity when talking about the auto industry in general and that's where this needs to be, but to tim's point and to guy's point, i know guy has been all over this thing, you really -- it's really undefinable what this power wall means and what it's going to do to the grid and the way we use energy. to me, yes, it is a very exciting story. i can't get excited about it at $250 after it just went from $180. >> i'm glad you mentioned the model x. i asked him if the factories were ready, if the lines were up and ready to go, he said i'm not going to say. we have a shareholderer meeting. i thought that was peculiar. next up, a huge day for go pro anuncing a revised hero action camera. the hero plus lcd which adds a built in touch screen display. it will go on sale in the u.s. $300 this week. the stock is up more than 50%. from its march lows. >> the last two weeks it's up 16% over that period of time. we were right about -- i was right about the stock in october, been wrong ever since,

but it feels to me like it's got its mojo back. i think it comes in the form of the first quarter of the report at the end of april. the quarter was strong. revenue guidance for the second quarter was up 59% year over year which is pretty remarkable. this is not to me it's not a mature company. plus they're making investments in the media arm, making investments in software, this relationship is google now. i think for thisist stock there still tailwinds. i think jpmorgan has a $70 price target. i think it could absolutely trade up to that level. >> i could see tailwinds also to the story. this could be an iphone, you introduce it, it's wildly popular, you introduce another one and you get that same audience again and the gadget guys who trade up. i know dan will hate it because, you know -- >> why is this any different than it was three months ago when you probably would have also said, hey, there's going to be a camera company coming out with something.

sunt matter what round two is. these guys are a commoditized entity and a media company -- >> i will throw that right back and say what about -- you love apple. there's so much competition in the space. somebody else will come out with something else. it's the same issues there. it's a competitive space, i don't doubt that. it's just i think that we're earlier on -- >> it's not a competitive space yet. i think that's tim's point. right now they have the brand, the mojo, everything going on. when you see two days and two consecutive weeks where the stock rallies 6% on product announcements, i don't think you short it here because it has 25% shorters or whatever. until they have a real hiccup, that's when you lay into this one. >> yen falling to its lowest level against the dollar in 13 years and it appears the smart money is getting behind the yen trade in force. hedge funds increased their bets against the yen by the largest margin in more than two years. how much money can they expect

to make? dennis gartman is the founder, editor and publisher of the gua gartman letter. good to see you. >> good to be seen. >> if you had to put a forecast on the dollar/yen what would that be. >> a lot higher for the dollar over the course of the next several years. when i started trading dollar/yen in the 1970s, i remember trading a lot of yen at 285 yen to the dollar. i can remember trading a lot of yen at 200 yen to the dollar. i think we're clearly going to 175 yen to the dollar. it's not going to happen by next tuesday. it's going to happen over the course of the next year and a half or two, but i think it's abundantly clear that the monetary and political authorities in japan want and will get a weaker yen, a stronger dollar. now that we have broken above 124 which had been an area that had stopped the market in the past over the course of the past 18 months, now that we've broken out to the upside and you talked

about the fact that the hem funds had increased their position in the yen, their largest amount in the past year and a half over the course of the previous six months they had decreased their positions dramatically having gotten bored with the trade. now they're piling back in. i think it's just the start and i think we're going to 175 over the course of the next two years. >> is a corollary trade necessarily higher nikkei? >> i'm not sure it's necessary, but certainly that's what's going on. i think there are several trades that you want to be involved in. one, you want to be short of yen against the u.s. dollar. you want to be short of yen against, as i have said, the english speaking currency, sterling, u.s. dollar, canadian dollar, the aussie, that he is another trade. you want to be long of gold against yen. that's another trade, and i guess you want to be long on the nikkei all things being otherwise equal, it will probably be beneficial to the japanese stock market over the course of the next several years. >> dennis, we're going to leave it there, thank you. there's also a rumor late in the session the nikkei that the

japanese government would start buying etfs propping the nikkei up. >> with abe they're doing a lot of unorthodox things. people don't realize even in dollar terms, japan has outperformed the u.s. and europe this year significantly and most people are underweight their benchmarks. look at the names that are underweight here that i think have very good earnings growth, canon, mizuho, some of the other banks. you can play them in adr form. these are names that are growing because not only the weaker yen but because the businesses are better. look at eps explosion. >> still ahead, what do the grim reaper and twitter have in common? it's got a little something to do with a scary looking chart that dan nathan has got himself up in arms about. here is what else is coming up on fast. >> more than 30,000 doctors and big pharmacies gathering today to discuss the late nest biotech breakthroughs, but we've got the one interview that you might

have missed that can make you big money. plus, when this man speaks, wall street listens. >> but they'll never take our freedom! >> famed short seller carson block who has taken down a number of stocks before today will unveil what he's calling the next great pump and dump scam and it's sure to rock the markets. that's all ahead on "fast money." make faster, smarter, better trading decisions with vectorvest mobile. the most powerful app or managing your portfolio from the palm of your hand. only vectorvest mobile analyzes, ranks and graphs... ...over 16,000 stocks worldwide, everyday,... ...and gives you clear buy, sell, hold recommendations... ...on every stock; anytime, anywhere. vectorvest mobile comes free with your vectorvest trial. get it now! visit vectorvest.com/mobile to get started hey, what are you doing? you said you were going to find out about plenti, the new rewards program. i did. in fact, i'm earning plenti points right now. but you're not doing anything right now. lily? he's right. sign up, and you could earn plenti points

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the biggest cancer research meeting of the year is under way in chicago and cnbc's meg terrell had the chance to speak with all the big pharma and biotech giants about the latest catalysts in their pipelines. what's the biggest detail from today's event investors are missing? hey, meg. >> hey, melissa. we have to focus on drug prices because there's been increasing focus over the last few years on this topic. as the hot new immunotherapy drugs get approved, doctors are concerned about what the price of these is going to be on the health care system and on patients. we talked with astrazeneca ceo this morning and i have to highlight what he said because it underline what is might be a new paradigm for pricing cancer drugs. >> if you cure or really turn cancer into a condition, then

you become cost-effective. alternatively, look at pricing for the treatment of a tumor type. instead of selling you one, two, three vials of products, we'll actually charge for the treatment of lung cancer and come up with a price that is sustainable. >> now, he's talking about charging for the indication, not necessarily charging separately for which drugs are used there. so that's a really interesting idea. of course, we've seen these drug price wars hit hepatitis c companies really hard. whether that will come to cancer is yet to be seen. of course, express scrips came out last week suggesting this new model of pay for performance. it's possible that we'll see a paradigm shift over the next few years as driven by these hot new immunotherapy drugs and the advances being highlighted here. >> meg, thanks for joining us. how do we trade this? if there's a new model, we don't know who will bear the brunt of this, whether it's the drug companies or pharmacy benefits.

>> i'm in cvs but also maybe the insurers. that could be the most interesting i think if there is pressure downward on prices, we're long anthem. you saw humana i guess up for sale, possible deal. so that to me is a more interesting way to play it. >> real quick, juno therapeutics, when they reported, the trade is to the long side. the stock went from $40 to $55. i think there's room on the upside. up next, the moment we've been waiting for. one of the most infamous short sellers on the street is here to lay out the next great pump and dump scene. carson block. and lauto stocks are stuck n neutral. take a look at the one auto stock that's about to buck the trend. that's later on. stay tuned.

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welcome back to "fast money." stocks are kicking off the month of june with a high note. the nasdaq and s&p 500 are both about 1% from all-time highs. here is what's coming up in the second half of "fast money." stuck in neutral, americans are paying more than ever for auto loans, but carmakers can't seem

to kick into high gear. what's behind the disconnect? phil lebeau has a special report. plus, twitter having a rough ride since reporting earnings in late may and one chart is pointing to another big drop in the knnear future. let's start with china. chinese stocks on fire. the shanghai composite jumping 5% today and up 136% in the past year. our next guest says buyer beware. he has a stronger warning about the hong kong stock market and you want to listen to him because carson block has correctly called for the collapse of several chinese companies. carson, welcome to the show. good to see you. >> thanks for having me. >> what's your take on this run that we're seeing in chinese equities? >> well, in the mainland, and this is clearly being driven by liquidity being crammed into the system, policymakers were starting to take the air out of the real estate bubble, and then they stared into the abyss and thought, oh, my god, we don't want to do this.

they tried to reflate the property bubble a little bit. didn't work. so then they started running op-eds saying that buying stocks in mainland chinese companies is patriotic, and they've really been pushing that. so that's what's been going on in mainland. in hong kong you've had some spillover liquidity from the mainland, but you've also had what we think is in the aggregate probably the largest pump and dump in history with the number of companies share prices likely being manipulated upward, many cases by over 500% in the past year. >> can you walk us through how this pump and dump is actually working? who is doing the pumping and who is doing the dumping in this? >> okay. so what we've seen is, and it's really hard to get granular data. obviously the regulator is going to have the best access, but the way that the mechanics of this seem to work is that a lot of these stocks trade up significantly going into the

close. so the last 30 minutes or really the last 10 minutes of trading they'll get pushed up, and with these companies listed in hong kong, it's important to understand that really the free float is pretty small. i mean, it's maybe around 25% nominally. we think in many cases it's actually in reality smaller than that with the chairman and his proxies controlling a lot more, so the chairman will trade -- and his proxies will trade back and forth, especially into the close pushing the stocks up. and what happens in some cases if the stocks get a large enough market cap, then they get included in the indices, so index funds come along and have to buy them and that gives the chairman and his proxies a way to exit from their positions. >> and so that's where the dump caps. and this is what you think happened with hanergy which was an explosive trade in terms of

the decline of this company that made it into a lot of the indices. it was in the solar etf here. people didn't realize a company traded in hong kong kocould impt their portfolio in the way it did. >> i strongly suspect that the stock was manipulated and i think that this was a pump and dump where the manipulators did exit at least in part to foreign index funds. >> so does this make your job as a short seller easier in some ways? i mean, you say that you're onto this sort of scheme going on, so how are you capitalizing on that? >> well, we dipped our toe into the water this past november when we shorted a hong kong listed company called superb summit. they at the time had a market cap of $1.6 billion u.s. and it's really an empty box. there's nothing there.

and within -- we put out our first report. so we were going to do a multipart series and i think within about 45 minutes of putting out the first report, the company halted the stock, and the company has not attempted to resume trading in that stock even until today. the company has not even responded to our report. so it's a very strange situation in which to be. so one of the things with short selling in hong kong is that companies can keep their stocks halted for years if they want to. >> so given what's going on in hong kong with what you have identified as a pump and dump scheme but also the intricacies of shorting in hong kong and given what you say are overvaluations in the mainland chinese market, where is a short seller finding more opportunity? >> well, i think it makes sense to be selective. there are still interesting opportunities whether they're listed in hong kong, maybe even some things that are listed in

the u.s. there have been some controversial u.s. listed chinese stocks in recent months. so there are selective opportunities, but it's very, very difficult in this environment because you have so much froth underpinning valuations that it is hard to short these profitably. they have to be really bad companies and glaringly obviously bad companies in this environment in order to make money. >> are you thinking of any chinese stock listed here in the united states in particular? there have been a couple stocks that have come to light -- not come to light but have become more battleground stocks and more publicly battleground stocks lately such as vip shops. wondering if you have done any work on that? >> there's nothing that, you know, that i really can discuss on vips. it's obviously a very large market cap and it has become controversial.

so what's also kind of rare about this situation is that some people who are usually publicly shorting stocks have also come out and attacked one of the short cases that was put out recently. so it's definitely an interesting stock to watch, but at this point i have no view on it. >> and do you like to get into stocks where there aren't many public positions being taken or would you jump into one that has been made public in terms of the bull and the bear case being fought out? >> we generally prefer to be the first to speak publicly about a company. when we're generally not the first to really short it, but, yeah, we like to add value by bringing a new perspective to the market. it's not always the case that we'll come out on something that nobody has talked about before, but that's definitely our per fered situation. >> we hope you will join us again with your next interest. carson block of muddy water. good to see you. >> thank you.

>> what do you think? >> they do an interesting job and they have been out there for a long time. these guys have been in front of a lot of trades. i will say that if you think about the hong kong market and you look at the valuation right now, it's very different than the mainland. trading at 12.1 times forward versus a long-term average of 13 times. people looking at ways to play hong kong over there, people looking at the fxi, other things that have been rallying, you should not be running for the door and saying this is an entire ponzi scheme. i think what they're talking about is easy to manipulate some stocks who have a short float. you need to separate the true story from what is very good work being done but not necessarily what's being done across the board. >> that story about them halting indefinitely would terrify me as a short seller. how do you know they couldn't just be bought in because they decide we're buying you in? do you need to borrow when you short there? >> if -- well, in the same way -- if i'm shorting china mobile, i need to get the borrow. if i'm shorting locally in there, i don't know what the local custodians are doing but

certainly here. >> well, i want to mention one point. it's become a self had be-fulfi prophecy. when they put out a negative report, the chinese equity is going down. the important point to take away is he said there's some goofy stuff going on in chinese listedad rs here. his point is do your work i think. >> guy? >> 48.5 has been a level at -- i think the cleanest way is fxi. it's a level it's held a number of times. to me if you want to be there and get a run into space, fxi against 48.5 will get you done. >> time for pops and drops. big movers of the day. a drop for juniper networks down 3%. >> the stock was up last week. they had a new 52-week high. reports possibly that ericsson was looking to make an acquisition here in the u.s. in the switching base. mkm partners put a sell on the stock. down 3%. it gapped up on earnings.

you probably have a decent long entry somewhere in the gap below $27. >> pop for dollar tree. >> i think it was added to ubs high conviction list and they're also selling some stores to be able to close the family dollar deal. it ain't cheap but it ain't expensive. i think they can do some nice synergies on the cost side with family dollar so i think it's okay right here. >> dopp for pier one down 6%. >> downgraded at web bush. held 11.5 bucks. that's where it held in october. held there again basically in february. traded down there today. then bb&t put out a report that maybe william sonoma should buy pier one, $19, $20 price target. decent short interest. i can't believe i'm going to say this but you get long against 11.5. wicker will get you done. >> 1% drop for pandora. >> it's almost an affirmation

things are getting better for this stock. there's a lot of reasons to say the competition has blown these guys away. what's going on with the local business, local advertisers is 23% of revenue. price is much higher and that's the reason why the company still looks interesting. i like the chart. i would be long the chart. >> still ahead, the car strr is booming but the stocks are stalled. the road map you need to see for stocks after the break.

car prices are soaring and bringing auto loans along with it. cnbc's phil lebeau is in chicago with all the details. hey, phil. >> we just got word that both kelley blue book as well as true car, they are saying that the average transaction price for the month of may was up 4%. well over $32,000 depending on exactly what math you're looking at, and that's backed up by what we've seen in terms of the latest data about the types of loans people have been taking out this year. first quarter data from experian shows record highs in terms of the types of loans people have been taking out, almost $29,000 financed on average by people taking out a loan to buy a car. that works out to $488 a month loan payment.

the average length of the loan has been stretched out again. now at a record 67 months. the type of loan people are taking out, it's clear they are gravitating towards those six and seven-year loans. almost a third of all the loans in the first quarter were for six and seven years. because of that some people are saying i don't want to take out a six or seven year loan. i may only have this car for two or three years and i want a lower payment. that's why they're going towards leasing at an increasingly frequent pace. 32% of all new autos financed in the first quarter were leased. the average monthly payment down to $405. you compare it to the $488. that's why leasing has become more popular and as you take a look at shares of fiat, chrysler, and all the automakers, the domestic automakers, keep in mind that tomorrow we will be getting may auto sales numbers and the expectation is that the sales pace is going to be very strong. 17.3 million, 17.4 million. this will be the second month out of the last three where the

sales rate, the rate, the pace of sales, will be above 17 million vehicles. melissa? >> phil lebeau, thanks so much. as phil showed you, auto stocks have been pretty much stuck in neutral for the most part over the past two years. so could this signal trouble for the markets? carter worth is at the smart board with a look at the charts. hey, carter. >> it's a mess. as a value proposition there's nothing here. blue line, one-year chart. equities in general, s&p. you're up 28%. purple line -- orange line, excuse me, this is a global index of asian manufacturers like nissan and toyota, things like daimler, chrysler. up 18% and then the green line, of course, is u.s. there are only two, ford and general motors, and basically we're down 3%. no value, u.s. no value relative to the market global. and then there's this. this doesn't pass the laugh test. this is a five-year chart.

this is ford and general motors. they've delivered you zero. here is the market up 75%, and presumptively at or near a peak in a cycle. auto sales at a record, quality of sales low. sell. sell them both. >> all right, that's pretty clear, carter. tim, what do you think? >> i tell what you, it also makes me say that they priced in a lot of bad news. and if you make an argument these stocks have been punished because the sales quality hasn't been terribly good, it tells you these guys have actually on some level, i think they have held onto the bottom line and the margins. when you look at some of the global stories, fiat, chrysler has been one of the best performing in the world because of the whole chrysler story and that's part of it. daimler, bmw, those are weak european kind of euro stories with an export component also to the luxury base in asia. that to me is why they've outperfoou

outperformed and i think the u.s. stocks are undervalued. >> you're spot dab in the middle of the range. i think there's more upside than downside in ford. but there's nothing really compelling about owning gm or ford right here. >> supposed to report good numbers tomorrow. >> i actually think of the auto loan side of it, like ally, the old gmac. what could go wrong, right? that actually is more interesting to me. it's not expensive and i don't know. i think there's room to run in that business. >> all right. carter, in terms of those charts, we're looking at the automakers. are the auto partsmakers, do they have the same sort of trend or because they're global suppliers they have a different story? >> considerably better. johnson controls, delphi, magna, the charts look good. if one wants to have skin in the game, i would prefer to do it

through names like that. >> tim, are you in tata still? >> i'm not. those are guys that have tough comps coming up. the margins haven't been very good but the growth story has been phenomenal. >> you wanted to say tata. >> better her than me. thank you carter worth. still ahead, why a stock could be headed to a huge plunge. dan explains in a special "options action." right after the break, the ceo of target reveals how he's taking on the high end competition with a big bet on organic food. more "fast money" still ahead.

40% of the streetlights in detroit, at one point, did not work. you had some blocks and you had major thoroughfares and corridors that were just totally pitch black. those things had to change. we wanted to restore our lighting system in the city. you can have the greatest dreams in the world, but unless you can finance those dreams, it doesn't happen. at the time that the bankruptcy filing was done, the public lighting authority had a hard time of finding a bank. citi did not run away from the table like some other bankers did. citi had the strength to help us go to the credit markets and raise the money. it's a brighter day in detroit. people can see better when they're out doing their tasks, young people are moving back in town, the kids are feeling safer while they walk to school. and folks are making investments and the community is moving forward. 40% of the lights were out, but they're not out for long.they're coming back.

moments ago target's ceo sat down with jim cramer who asked him about the growth prospects for organic food. take a listen to what he said. >> the guests is telling us we want both. we're not walking away from conventional products. we recognize there's great traditional brands. they're in the pantry, we're going to make sure they're in our stores and we know our guest is focused more and more on wellness. they're asking for more organic, natural, gluten-free products, cleaner labels. we've had to deliver both. >> full interview tonight at the top of the hour on "mad money" along with the ceo of pvh.

when you heard about organics and target you midly thought of one particular stock. >> i thought of irwin simon and payne. he's done a tremendous job buying brands, infiltrating many markets and sadly it's the last i don't know how many points without me. >> is it expensive? >> he's watching right now on long island. come on out here. >> other one you think of is whole foods. it looks like they're going straight to zero and they're not but this is a company that has totally lost out to competition. has done nothing to change their whole margin model and this is at least a stock right now that is broken and at a time when you'd think they would be crushing it. >> they should be crushing it. >> let's talk about target. we saw walmart get destroyed. costco lost some of the momentum. it's made a series of lower highs.

it feels like it wants to go back and test the april low. i'm not a buyer. >> is twitter about to get the kiss of death? dan nathan is going to head over to the smart board. off troubling chart, don't you? >> i'm not particularly worried about this chart but it's an interesting formation here. today the options market, there wasn't a whole lek of a lot going on. there was a buyer of 500 of the july 2nd weekly 42 calls paying 18 cents. let me tell you something, that's about a ten delta. that means the option market is saying only a 10% chance those are in the money a month from now but the chart caught my eye and i tweeted it out earlier today and got a lot of response and that tells me the thing is pretty controversial. this is the one-year chart of twitter. this is the 50-day moving average. this is the 200-day moving average. the 50 is about to cross below the 200. some technicians call that a death cross. we had this big gap on earnings. that's why the 50-day moving average has moved down so

quickly. sometimes it works very well. we've talked about it on the show before. i used it in january in tesla and the stock dropped 15% and i used it back in the fall in goog google. when you had that waning momentum short term cross below the long-term momentum. there is the one year here. it's kind of hitting support at 35 almost. here is the two-year since its ipo and look what it does. it just does this and this and this. at some point very soon it feels like it's getting pretty oversold. it really, really needs to hold 35. i'm long it and i'm hoping it does. and then here is the last chart. this is implied volatility. the price of options. they're basically trading on a short-term basis at the all-time lows. for those of who you worried about that death cross and think you could get a break of 35 on the next bad piece of news, maybe you define your risk and buy near dated calls. >> guy, what is wrong with twitter. >> i like the sign curves. he worked that board, it's unbelievable. >> serpentine almost. >> what's wrong with twitter?

they can't monetize and they're worried that half their user base are probably -- dan just said $35 has been support a couple times. i'd rather own it against $35 looking for a pop or play the death cross on a close below $35. so right here i'd rather play from the long side. >> all right. more "options action" check out the live show 5:30 p.m. eastern time on fridays. we got your first move tomorrow when we come right back. stay tuned. here at td ameritrade, they work hard. wow, that was random. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that.

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time for the final trade. tim seymour? >> i have said it before, we talked about hong kong, china mobile trades in hong kong. this is a stock that's been beatbea beaten up. it's tough but get long. >> i haven't said this before but linkedin popping over 200 i think you play defined risk. 200 is the level. i'm playing for a move up to 220. >> karen. >> dorian ticker lpg. demand in china for lpg going

up. and day rate is very strong. >> guy? >> may 27th was a capitulation day in kors. tim bought it last week. michael kors. >> sure, get my mission is simple -- to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now. hey, i'm cramer! welcome to "mad money." welcome to cramerica. other people want to make friends, i'm just trying to save you some money. my job is not just to entertain you, but to educate and teach you. so call me, or tweet m me @jimcramer. is the market too expensive? are stocks overpriced? should we be worried that