more. >> it's in the end. >> i don't know. >> just like we will close the alert. >> santelli and i had a private bet going. >> a shame is what you remember? >> he only brings it up when i fail. >> once again, i have to be the adult and say everybody stop talking now. have a good weekend. have a safe trip back to walk. >> that is it for "closing bell." "fast money" starts right now. >> "fast money" starts right now. overlooking new york city's time's square t. traders are tim seymour, steve grasso and guy adami, i'm mellissa lee t. top strategist fang says it is the perfect time to buy. he'll be here to explain why. amazon causing a flash crash in the stock, surging if seconds. it could be a major warning for the markets. plus the bank is on fire hosting the best week of the year. one trader says it's a time to

get short, tell us why it's worried. we start off the sector having its worst day since the brexit sell-off. the nasdaq soaring to record highs, turning lower, on no news, one of the worst sessions of the year on extremely heavy volume, taking the rest of the market with it. it was the fang stock with the extra egg in it. the most widely held stocks in america that took it on the chin, facebook, amazon, netflix, goog. . it wasn't just the well known fang stocks. it was widespread in the tech space and video rolling over, square fake i taking salesforce down. this is a huge real this year the tech moves you too far, too fast. you buy the tef or have we seen the top? >> i don't think you have to buy the dip today, but i don't also think that this is a warning sign that everything is a worry. because you look at what happened in the other market, if i saw bond going higher, yields

going lower, if i saw a rush to the u.s. dollar or if i, frankly, saw any other sector in the s&p 500 really get hurt. to me, this was a rotation. just like we saw, remember back in november, after the elections, you saw people taking money out of tech. going to banks, that's to me all this is. so you don't have to buy it today. there will be a chance to buy it. probably just not monday morning. >> it is the rotation. i believe it's rotation. we talked about it the last week with iwm. small caps. small cap was basically flattened year-to-date performance. amid a backdrop up 8% or. so you see guys that need performance. we're june, a couple handful days in. here the back half. you get it with iwm. you get it with xle and you want to get wit xlf. if you look at interday performance, you start to see algorithms start to engage each other. have you this inverse correlation. when it starts to come you a, you see the machines go crazy.

they go ballistic over it. goldman sax talked about it. people got complacent. we all talked about the five or six stocks that have ruled the market. i do think it's rotation. i don't know if it's trailer trade now. >> i would argue it was constructive. i would argue today felt violent. you looked up. apple close to 5 amazon 4.5. i agree with steve, it felt heavial go-related. there is a lot of -- heavy algo-related. this was absolutely overblown sectors. people taking tech and as goldman pointed out, multiple house versus pointed out, today and in the last couple days, valuations are difficult. goldman says let's call it epic fang. they threw microsoft in there. it's a growth plate, a momentum plate. he rightly pointed out to a company checking on all cylinders. a lot is on the bet of the future and the growth we think they will dominate on. so you get back to reality.

valuations, value over growth, a conversation we have been having for weeks. that's what today was. it doesn't scare me at either. >> but if financials and energy were difficult buys in yesterday's session, why are they solid buys in today's session? >> that's the goods news. >> back to buys for four days now. >> i'll buy yesterday. >> -- compared to technology? >> i think the good news for today is you saw the rotation steve was talking about. the financials were caught up all day long. energy, which has been a total lager had a decent day. to me that's the food news the bad news rkz if there is bad news the vix made a five-year low, i try it printed 537 had a 12 point and closed positive on the day. that's a little disconcerting. >> a huge outside reversal. >> a huge outside ve versal, names like nvidia, closed a big reversal, 90 million typically it's 20 million shares. you have a lot of armchair

talking number of stocks and potential indices as we go into next week. >> your point, we have xlf. if that will stop contributing. if you have energy in the last couple days, we seen the actual commodity be under pressure. you see guys chasing. i will use that quote/unquote chasing exxonmobile. you get caught up on a yield play, on a valuation play. if that happens now, yesterday you guys talked about nordstrom's. that's running to be private. there's going to be other companies, american eagle, abercrombie. you watch these guys who is going to go home short these names? they could get dragged private. it's not worth the risk. it's not worth a bright future. i think it takes that short overland and forces people to buy a retail sector that's been thrown out. >> we talked about trades and the impact of ets, particularly the qs. the qs today we saw extremely

heavy volume, 4.5 times the volume traded in this particular session. did we see that race for the exit? >> to me, again, i think in the qs, you have a liquidity trade. you have a lot of people being very defensive, playing the qs, playing the big names in the qs. we have an enormous amount of volatility. i would make the argument it was a reaffirmation for growth. i could feel very good and say forget what happened, if you read the papers, at least a lot around here, it tells you we have a lot of hot water ahead of us. the market told you whether we get any policy or not reasserting the trump trade and we overuse that term. reasserting a growth trade. again, rates were higher. >> it's cyclical. >> cyclical trade doct. >> why are they all of a sudden the hot trade? banks in particular is because of bond. now i know a lot of people say oh it doesn't matter about the long bond with banks.

it's a sentiment type thing. it touched 212 earlier this week. we talked about that being the bottom of a technical figure. now you see that reverse. all of a sudden people say you know what, rates are -- >> dodd-frank, though, too, that was the major bullet. i think that was the fundamental bullet and financial sector the last couple weeks. >> what do you do with sectors now? >> i think you stay with them. we talked about exxon, that's a trade closed above 24 today. i have to say this, i say it all the time, it's worth mentioning now. i like to say the market doesn't give you a long time to tell the high. look how short a period? it's all time highs, for that matter the s&p made an all-time high earlier in the day. it reversed hard. at one point it was down 30 handles from the highs today. it bounced late. so again, one 24 hours does not a day make or a trend make. however, next week sets up for one of the more interesting weeks we've seen in a long time.

just last week on this show, wall street's most accurate adult proclaimed his fang, now he says is absolutely the time. tom lee joins us from hong kong. thank you, we do appreciate it. obviously, you love fang you know last week. so down this percent and i'm sure, what makes you convinced this sell-off isn't the start of something bigger? >> i think what's going on in stocks is a pretty good structural increase in demand for technology. right. it's the cloud. this is a lot like the 50. so i think there is a real secular backdrop. but on top of that, now, if you look at the last 16 years, when you seeds leader -- see leadership like fang, 2015 is a

great example. they were up 30% in the first six months. they were up 40% the second six months. so i think a day or two, a touch-up in finances is healthy. >> was there anything about today's market action, tom, that caused you to say, you know, let's wait and see, anything specifically the volume is very heavy. it didn't seem to be sparce. the sell-off didn't seem to be sparked by anything new here t. vix stayed relatively calm. >> yeah. >> that's right. i mean, a day like this tells you that it's not any headlines behind it. there could be profit taking. but again, i think the backdrop is so positive for the task in general and i think he clearly brought in microsoviet and nvidia makes a lot of sense.

>> tom, we will leave it there. thank you so much. tom lee. the connection is a little trippy, he's calling in all the way from hong kong. in terms of the tech dip today, anybody buy? >> no but i mean, it really was disingen -- >> why? >> we talked about how cloud these trades are, one day does not reverse that. it's still cloudy. it's in the twiple qs -- triple qs. in fact, i'll tell you right now i would like to buy google cheaper, i would like to buy facebook keeper. i'm not sure about amazon. the price action at home may see this mini crash. maybe that's the wrong time to apply. >> why didn't you buy? a lot of us are fully invested. you have to sell something to make room for it. a lot of us have these positions. so that comes back to that ro takes. so the key is, you have these companies are that quality companies. have you an apple, a facebook, an amazon, you don't -- or ali

baba. you don't want to sell those so you have to go somewhere else. >> if you feel fully vested -- you buy more. >> the time is -- >> i bought more ali baba early on this week before that big pop. so i doubled up on my ali baba position. to time it, first of all, that was lucky to buy it a couple days before it pops. to now thread the needle with a mark sell-off like the worst is almost unrealistic. >> they need to surf the wave. i'm not sure is something below. >> you sell something. so what do you sell? i think either you sell large cam or iwbm. >> whatever stock you want to pull out of the hat here, would you buy it on that dip? apple shares, would you buy it 3.5% lower? that's the question. >> it's 3.5,. we've had a tremendous run of these things.

naturally you think you will have one more of a correction. it takes a couple days, maybe a week. it's in basketball right, you never go for the first shot. you never get tricked by that. >> the name square, this is a company to me was a part of this life in the tech sector. these guys had a multi-faceted business model. the name on long. you see it pull back 10%. it makes you say, hey, should it have gone in the two-and-a-half mont months. without the defense, growth was mot working on the theory on the headline on the macro, i think people wake up after today and say i don't need to be in these trades. >> given the volume and the reversal and the volume, the market surprises me almost every day, i would be shocked if today were a one-day event. it seems to me this may be a week to ten days. we will see how it shakes out.

given the volumes, on the reversal, it should last more than one day. still ahead, amazon is shedding billions of dollars in large cap in a matter of seconds today. is this a warning sign the bottom market could be vulnerable neighborhood, plus financials are the best week of the year. one says this is about to come to a screaming hal. he'll explain why. snap is falling to $7 ipo price. we sponsor a way if it goes up, down, or nowhere at all. how's that? we'll explain, back after this. t oh, they even paid it off! wow! yeah, it's nice that every bad decision doesn't have to be permanent! now you can ditch verizon but keep your phone. we'll even pay it off when you switch to t-mobile.

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>> amson briefly taking an 8% dive, losing billions in market cap in a matter of seconds t. action could start off a broader warning. we september guy over to the plaza to break it down. >> thanks, mem. i do think nobody was ever able explain to me at least what happened in may six or seven years ago when the market had a flash crash of some 1,000 points. it was never explained. she probably knows a little more than i do. the fact is, if a move like there can happen in a name like amson, where the stock basically went from 980 to 927 in a

straight line, what's the stop that happened in etfs or the broader market in general. i'm not trying say there is some cataclysmic event that happened. clearly something went on today. can you say it was a fact finger, you think about the black home the stock traded it. who's to say the next time we won't continue to mover. so my point is, in an era where we love machines and machines have been taking the market higher. you see how quickly in amazon today things can go pare shaped and to shuth it couldn't happen in indices or the broader market, itself, i think we are putting our heads in the sand. >> i'm not sure if we should invite guy back. >> well, what happens -- he's going to 33 hess view in. >> where do i go? >> where do you go? >> are you going to be on tv. what was your interpretation?

>> so, when you see, you called eight fat finger trade. yes. >> usually you start to look at the effects that this shock could happen. so you look at the qs and the whole space was sold off. so you put off any other chart in that space you will see it. i thought what was extremely interesting, few look at the retail name, it had the exact opposite happened. it spiked higher. it was a flarn higher. so to me it tells me guys are putting their algos,er that run away robots. they're selling amazon and they're selling that trade. so that lines up. so guys want to play low underneath radar, be dark and showing tole book protection. so you get these slices and dices that happened for the retail investor and any investor. have limits on your orders so you don't get sucked in or taken

out on these trades. >> does it show anything about the broader market? >> no, it has no impact. it came right back. so what, there's machines out there. i have been working on goods that don't cancel orders. institutional investors, this has been going on, it came right back. if are you a retail investor and you are trading on that mump of a microsex, are you ten times better than i am. ten times better than a machine. >> you are fast. >> it's not going to happen. i wouldn't worry about it. do make sure to make limit orders. >> that is a key. you don't want to get caught in one of these down drafts. >> we also had the sense, we had so much liquidity, somebody flipped the switch. for people that don't have the courage of their conviction and can't stand in there, i want to own the stock now, 5%. it was a very painful moment. i got calls from friends in the market that maybe aren't in touch with the trading close and said, what happened today, frankly, i'm talking about

professionals that were concerned. today it's the passive flows. that was day you are like -- >> that's a question we have been asking all day, i ask this again, we looked at the volume on the qs. you saw the action, this is passive money. are we sees the we cans? >> no, you cannot trade by definition. maybe i didn't make my point correctly. my point is, when things like this happen, there needs to be an explanation and it stopped this time, that's true. next time maybe it doesn't stop, in a low vol environment where we are in right now, people become in a word complacent. you have to worry the next time it doesn't stop and just as the machines can take things up, they can take things down and it goes down as you saw it today. >> what's down with that? do we always have to go straight up? >> no i'm saying, we have to be aware that this is absolute -- amazon today illustrated the potential for this to happen. >> but this was constructive.

this was my point out of the gates. we saw a violent move on trades that got very -- not bad. >> still ahead, snap is up to $17 bucks a share. we will tell you how can you make money no matter which way it goes next. i'm mellissa lee. you are watching cnbc the first in business world wide. in the meantime, here's what is coming up on "fast. >> yeah, that's what apple investors did today. if you are worried about stock, we have a way to protect your holdings for free. plus, bank stocks are soaring today. if you are tempted to buy, there is something in the charts that suggest you may want to wait. we'll tell you what that is when "fast money" returns. [ music playing ] you may think you can put off checking out your medicare options until you're sixty-five, but now is a good time to get the ball rolling. keep in mind, medicare only covers about eighty percent of part b medical costs.

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. welcome back to fast money. fast food stocks holding up. they are on fire so far this year surging double digits. check out mcdonald's, whopping -- whopping? 24%, chip otherly jumping more than 22%. starbucks surging 22%. analysts expecting there is more room to run. they are saying these stocks are still under valued, so do you keep betting on the fast food trend, tim? >> first of all, chipotle. >> mcdonald's is expected.

relative to what i think on the transition, about dominos that was emblem atic of the trade. >> bpz i think to tim's point, if you see a rotation out of the stocks into the under performers. guys will finds different areas of retail. they will mover away from those food stocks. you have to really search for food companies that haven't done well. i will probably rotate to those. i will be a seller of domino, mcdonald's, anything that's performed well. i think if this rotation is a trends, not a trade, you have to get out of them. >> i think it is right. can i go to starbucks real quick? why not in charles schultz, to tim's point. >> you go to your next latte almond frappucchino, enjoy that. >> a couple months ago, it was

an all-time high before mr. schultz says sayanara. the bad news is we topped out at the 65 level we topped out at the end of 2015. so for me, i would rather buy this on a break of a buck 65. i think right now given valuation which is probably a little stretch, this stock has a chance to go back to the high 50s. >> well, this saturday, one lucky individual or individual could win the eighth largest powerball prize in history. in lew of our final trade, they have the jackpot stocks for to you cash in on. tim, what's your pick? it's u.s. steel. this was a stock obviously a jackpot in the trump trade. you don't need that. my point is this stock so oversold because if this was taken auto of it. nucor rates or prices up. >> bk. >> when i think about the jackpot, i think of something that can spike up. biotech, that's the one, ibb, to break out. >> central eant.

i am bag it for 20 or 30. >> i can't wait for the big show. bk sold me on that amd, what is that bitcoin? >> yes. all right. >> thanks for watching us. don't go anywhere. "options action" is on right after this. and i had all these points from my chase ink card. so i bought ingredients, utensils, even made custom donut cutters. wow! all with points. that's how i created the ripple: the doughnut in a doughnut in a doughnut. suddenly it's everywhere. i mean, it really took off. what will you create with your points? learn more about the ink business preferred card.

>> okay, we're live at the max nampblth it's been a tough day for technology. guy is getting ready behind me. while they're doing that, here's what's coming up in the show. >> snap out of it. >> that's what investors in snapchat hope will happen. there is something in the charts that suggest now may be the time to buy. we'll explain. plus, this is the market and this is your portfolio. and if you are trailing, we'll tell you how to catch up. and -- ♪ fire >> banks are on fire having the best week of the year, but there is a key et vent