a catalyst behind it >> it needs a different name, something like ceipo >> create a whole tier >> you're trusting the management skill to just go and execute. and i'll think about it tonight, but something catchier along those lines. >> make sure you, you know, e-mail it to yourself so you have a copyright on it and all the rest >> it will be brilliant. michael, thank you very much as always that does it for "closing bell." "fast money" starts right now. "fast money" starts right now live from the nasdaq market site overlooking new york city's times square i'm melissa lee. tonight on "fast," general electric shares are cratering, the stock sinking, an additional 6% we've got a special report plus there's one dow stock quietly surging to all time highs and one trader thinks there's even more gains ahead. we'll tell you the name. first, the dow sinking more than 150 points before coming back and ending the day nearly

flat but even with stocks near record highs as represented in this graphic by the happy scuba diver, there's warning signs lurking beneath the surface. it all boils down to this. do the moves in these areas in the market make you nervous about this rally at what point could they break through that surface, pete >> quite honestly, i look at this market and think the rotation has been going on we've seen it time and time again in energy, something lags, whether it's technology, financials, whatever if there's a concern right now of what's maybe lurgeking, we'r completely blind to the fact that north korea is still out there, quantitative tightening is still out there there are catalysts that could push us to the downside. we're in a pause phase, it feels like to me

mike from morgan stanley was here, he waited until last week and said, you know what, it feels like it's a time for a refresh or pause it makes sense to me based upon what we've had and what are the catalysts? we've had earnings, we've gone through the majority of the cycle of earnings, they've been great, we hit record highs, and now we pause >> everybody assumes it's a the pause that refreshes, and it has been i'll tell you what's lurking out there is the two-year note now at 170 it's been slowly on a tear it's up 35% since september. if you look at high yield, look at the jnk etf that is a scary -- >> look how big that shark is compared to that dinky scuba diver. >> the scuba diver looks a little bit like dan. the high yield hasn't traded below 200, momentum is dead

since the first quarter of 2016. em closes on the lows. transports are down 6.5% iwm, small cap stocks. you get the picture. anything that's cyclical has been under a lot of pressure this is lake placid on the surface but a lot of stocks are making new lows. >> 25% or so is telecom. >> the only thinking that's going to derail the market is seeing these mega cap names sell off or the global growth narratives short shift, which is not what we're seeing. >> there's no sharp to you >> no, the reverse i'm not being ultrabullish here -- >> so you're that skook aboutcur >> i'm that scuba diver. from mid-august to october 5th, we've seen the market rally. since then it's rallied 1%

we haven't seen a pullback for the buyers that want to buy the pullback to step in and sort of be there we sort of are grinding there a little bit trading sideways, if we start to rachet higher again, you'll see people jump in and it could force kind of a springboard effect to the upside >> it could. and it could not the s&p has had these ten handle rallies getting back to unchained, it feels like it was going to be that day where we have a 1% down day i think all of whatyou guys ar saying makes a lot of sense. it's important to make sure that we're going into a holiday shortened week next week, then that period of time between christmas and new year's >> should it be a run for the races? if everything is so good >> at this point with the s&p up 15%, the nasdaq obviously up a lot more, the uncertainty that pete was talking about, you didn't even talk about debt ceiling, you didn't talk about tax, all this sort of stuff that's going on in washington. it's scandal-ridden. people are holding on for dear

life >> two weeks ago bullish sentiment was at all time highs, dan. if you look at the bull indicators -- [ simultaneous speaking >> i'm not saying it's reason to be bullish it's actually fairly bullish action which speaks to what you're talking about, rotation this is a name that caught my eye today, t.j. maxx their earnings and sales are growing, trading at below market multiples. aren't they kind of amazon-proof, recession-proof? i look at those things under the surface that freak me out a little bit the russell, that one and the transport. >> the reflation trade is supposed to be alive and well. copper is down 2% today. look at energy stocks, oil has gone into cantanga, that's

negative, that's bearish glencore, if you follow commodities, that's the mothership, they're highly leveraged. that traded straight through the 50, through the hundred. >> icahn disclosed he sold 7 million shares at the end of the june quarter >> which i think is bullish, by the way, that was months ago, got a big seller out of the way. and copper has rallied substantially since then it's yesterday's news. >> anything that's had its massive performance into the end of the year or that's had a year to date, who is going to sit there and take profits right now? the mutual funds, the way they're investing right now, it's a buy and hold strategy taxes, tax structure is going to change, possibly the hopes of that, why would you take that now, when there could be a lower tax rate next year? >> the broader market's not giving those opportunities but individual names are and i think any time you see names where we already know the facts about the companies, we've gotten through the earnings season when you see 10% pullbacks,

those are the ones to buy. but we have not seen that in the market [ simultaneous speaking >> you liked them and you smartly said at some point momentum was broken. >> can i ask this basic question before we bring in rich ross who is in the pantheon of analysts who come on the show, et cetera, et cetera. who is at this point the scuba diver and who is the shark who believes there are things that are lurking beneath the surface and who believes the markets are okay shark, raise your hands. >> i see sharks. the fed is much more aggressive. look at that two-year note takes your shark >> you guys are the diver. >> i'm comfortable, moving along, not worried about what's lurking. >> i don't see right now -- [ simultaneous speaking i make the argument that the losers get pressed harder because they'll sell the tax laws like crazy. >> 10 to 12 is where we've been

consistently you can protect a position there. from that perspective, i like the opportunity, even if there is a shark in the water. i'm talking about still the individual names when you look at these numbers, when we've gone through the earnings numbers, absolutely incredible numbers for the most part across the board, those are the opportunities. if they get sold off, those are the opportunities. >> what's the catalyst between now and the end of the year? >> i'm with you, there's a lack of catalyst. >> the week of december 8th through the 13th, we have the budget we forecaget what it's like whe the fed raises its rates to me, i don't see the catalysts. i like mike wilson, he's saying, i think the best thing for bulls would be -- an uber bull -- would be to say, the sec back at 2500 then you have some sort of reset and you can see how some of these huge gainers act on a 3 to

4% pullback. >> let's go off the charts with rich ross, hi, rich. >> hi, melissa i like to go back to a place i know i'm loved and there's no better place than the face we're looking at, facebook here. textbook bullish is sending triangle we've already emerged from that pattern here and importantly, as we've seen that volatility tick up, facebook tests and holds that key break point, that tells me that facebook is ready to get another leg up here, and the next chart, we're going to go back to law school here, we're going to take a look at jd.com this stock is fresh off a victory in singles day, that's like black friday. $25 billion in sales in china, these guys are the amazon of china or at least one of them. you can see the neckline of a potential head and shoulders top. but let's not get ahead of ourselves because when the head and shoulders fails to break down, what happens is we get a commensurate move in the

opposite direction and this neckline is a springboard to higher prices. by jd on the pull back finally, a real battleground stock here this is tesla. i've brought up the weekly chart to sort of mute the volatility and easy the pain of the long since the stock has come down from 380 to 300. look at this, you've got this big multiyear base of support in the stock. you're testing and holding for the time being the magenta line, your 50-week moving average, and that neckline of support, 280, 290. you want to buy that pullback because with 21% short interest, if that neckline holds and i think it will, you'll get a sharp move in the opposite direction which in this case is higher there's three great ways to play a compelling longer term bullish setup. >> since rich sits in the pantheon, he definitely comes to sit, arielle will bring the chair in

i want to be clear here on tesla, they have a big event coming up which could be a major catalyst for the struck, the semi truck unveil that happens on thursday. you're saying wait until 280 is tested >> no, for traders i would use that as your protective stock. with a stock in and around let's call it 308, 310, you're saying, great, 10% stock, but this is a highly volatile stock. below 280, you're a seller i think it can break out to new highs and see 400 in the first half of next year. >> i like your facebook trade. i agree with it 100% tesla, i do agree with it as well i think it's a little bit more risky. i would stick with the facebook setup there. from a fundamental perspective it's lined up as well as the technicals >> interesting going with jg.cojg.co jd.com, it's the little brother to alibaba these guys are anti-apparel. >> just got a downgrade. >> and they've will some guys upgrading. we've gotten a lot of numbers

out of the way people are more concerned about the big brother effect and alibaba pushing them around. they're doing that, pressuring merchants. chinese consumption should be bought >> you're an avid viewer of "fast," we started this show off with the notion of the shark and the scuba diver. do you think technically the markets are okay or do you look at what's lurking and say there's some caution >> would you like to be swimming in that menttal cage >> are you a shark or a diver? >> these dangers have been lurking all year the surge in two-year yields keep in mind the curve flattened throughout both of the last two secular bull markets in the u.s. from '94 to 2000 and from 2002 to 2007. of course those moves ended badly but it always ends badly, that's what an ending is you have still have two basis

points to play with. as we've talked about before, the banks, the jpmorgans, citibank of america, they're trading off two-year yields, not ten-year yields. it's taking those banks higher what was up today? bkx. banks are doing well >> the banks have come off 5% if you look at jp morgan, bank of america. citigroup especially, back towards those recent breakout levels is that a level where you get back in and reload on those things >> i think that's exactly it, the bkx pulls back and tests and holds the 50-day the high end of that well-defined trading range, jpmorgan these are stocks that are poised to test and hold and move higher again. that's exactly where we're set up to be >> rich, thanks. pete, what did you do today? >> he's not nervous. i can tell absolutely not nervous i only had one big trade today i actually didn't do as much as i normally would it was an interesting day. i brought something in the reit

space. it's in senior living. because we saw some incredible, unusual activity in there. that brought me into brookdale >> i sold some halliburton today. i've been constructive on the energy center, halliburton is well positioned. we've had a massive run in energy we've got perfection priced into opec vienna, november 30th, nothing wrong with taking some profits here >> shorting foot locker, these are stocks that are going to continue to trend lower. we saw dick's trade lower today. foot locker reported on friday, not a pretty quarter that stock will go lower i could see the stock trading a couple of bucks. >> every once in a while i get a trade idea from you guys >> what does that mean >> it hasn't done well so pete and john are in agreement about the consumer staples i'm looking at that nice little bounce, 52 to almost 55. that's a short entry >> there you go, giddy-up.

>> we'll see coming up, general electric getting crushed again today, even after some reassuring words from ceo john flannery traders are betting it's about to get a lot worse, we'll explain. plus home depot crushing earnings today will other big box retailers following suit tim has a new stock set for t pter breakout, we'll step up tohela later this hour much more "fast money" after this for your heart...

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welcome back to "fast money. coca-cola pops to a fresh all-time high. wells fargo updated the price to 51 a share, coke may move into the booze system tim, have a coke and a smile >> at one point i made the comparison to what's going on in mcdonald's you have new leadership after languishing on their reputation, it could be a positive event at their earnings call. a weaker dollar has been great for their core business. >> are you more bullish or less

bullish if coke gets into the booze business >> i want to see what the results are. the expense to build that business, i want to see that before i jump in to buy, for that reason alone. it may not be positive, they may not talk up things, they may talk down guidance that would be a relief for the stock. >> not up the way it is, trading at 25 times earnings, not a relief the xlp, the consumer staple conversation we had last fight >> that you're short now >> when you think about the top five holdings, coke, pepsi, these stocks are all trading at 22, 25 times earnings. you have 2 or 3% earnings growth >> you're lunch them all together coke is not facing the same headwinds. they're totally different stories. coke has got a lot of exciting catalysts.

>> i'm just telling you i don't see why these stocks deserve to trade 25 times next up, home depot blowing past wall street's earnings expectations as repairs from recent devastating hurricanes and wildfires help boost sales is it good news for target and walmart? target has been missing the mark, stock down 17% home depot and walmart are both up more than 25%, fresh off all-time high. can target catch up? you said last night home depot is your choice >> right, i own home depot, and coke and pepsi, by the way what's running coca-cola, they're moving away from carbonation and are making incredible acquisitions. it's phenomenal. the big box space, walmart has done a great job obviously their transition to the online world has been great. home depot, again, 20% online, 23% last quarter any continue to crush it there but they continue to crush it everywhere, they raised their full year guidance

target concerns me because i think they've been late to this whole game because of that, i think they're at least one or two quarters away before we start to see target become more like what's happening with walmart >> i love that you talk about big box retailers. you went to coke because you wanted to rub it in dan's face >> you're wrong on coke and you're wrong on pepsi. pepsi has the mix. coca-cola wants to get away from carbonation. >> smoke and mirrors, it is absolutely priced to perfection. and i think that mark laurie, there's no question he is talking up the game from the e-commerce perspective, trying to get almost, you know, an internet type bid. >> because they're compared with amazon, when you talk about valuation, aren't those -- >> i think the problem the people are missing is cost the cost to get to that next level is to get to scale their cost to get there is -- >> they've got 4600 stores

across the united states >> maybe you weren't paying attention last night >> probably not. >> amazon to go for retail sales at very low margins. walmart has $500 billion in expected sales this year, almost all of it is in retail, very low margins. amazon obviously has had -- [ simultaneous speaking >> so walmart can compete with anybody on margins but the bottom line is it's a losing game there's so much competition and too much floor space >> target over walmart ahead, roku taking investors for a wild ride, the stock still up more than 100% in the past week and massing a major milestone. i'm melissa lee, you're watching "fast money" on cnbc, first in business worldorldwide meantime here's what else is coming up on fast. >> here's what's happening to ge shares something just happened that suggests it could go a lot lower. we'll explain. plus tim's bringing the heat pitching one bank stock that's up 30% this year and he says the rally is just

begun. the name when "fast money" returns. we're on to you, diabetes. time's up, insufficient prenatal care. and administrative paperwork, your days of drowning people are numbered. same goes for you, budget overruns. and rising costs, wipe that smile off your face. we're coming for you too. at optum, we're partnering across the health system to tackle its biggest challenges.

the workings of the committee are a bit mysterious it's clear there's no price limit because you drop below a certain price. at&t was 33 when it was removed to 2015.

alcoa was eight. bank of america was 14 hewlett-packard was 22 kraft was 39 when it was removed. citigroup had dropped to $3 when it was thrown out in 2009. gm was 27 cents. there's no pattern here. it's clear there's not any cutoff price that will get a company kicked out of the dow. the price relationship with other stocks may be more important because the dow is price weighted david blitzer, the chairman of the index committee, says he prefers the ratio of high toast lowest price stocks to be less than ten to one. by that standard ge is definitely a candidate to be thrown out, it's about $18 the highest priced stock in the dow, boeing, is nearly 15 times the price of ge. another way to look at this is not the price but where the committee is at. the committee dropped alcoa in 2013 raw material companies weren't as important as they used to be. but the best parallel maybe hewlett-packard. it was dropped from the dow in 2013 because it was a former tech giant that had fallen on hard times

the company's board of directors struggled and the company seemed unsure of where it should be going and what it should be doing next melissa, does that sound familiar at all? >> it certainly does are there regular meetings dates of this committee, bob >> yes, they meet fairly regularly. but obviously they don't meet -- they don't make any decisions -- they make decisions very irregularly on when things should be thrown out it's been a couple of years since any of this happened >> thank you, bob pisani at the new york stock exchange. i mean, given the ratio that currently has, the price weighting in the dow >> it's kicking itself out >> yes >> you made this comment yesterday. if you look at the price action today, the question mel posed yesterday was, was this a tipping point. >> can a ppitulatiocapitulation >> capitulation. you had a stock that traded 3% off the lows to finish respectably down 4.5 or 5%

did we get more news i still think people are concerned that flannery has not been straightforward about the management sheet you don't jump in with both feet in a name like this. when the stock goes down 20%, that's 20 blips in your portfolio, not something to lose sleep on but you'll have a name in your portfolio that you can start to follow and work on >> when flannery was asked why should investors buy this stock, he said, we're not managing for today or tomorrow or next week, this is a three to five-year story, you're buying for the three to five-year story the problem here and the reason why that answer is so unsatisfying is who knows, he doesn't know what the three to five-year story is at this point. that goes back to bob's point about hewlett-packard. it didn't know where it was going. >> that's an incredible point. i'm a portfolio manager and my performance is horrible for two, three years, i get a bullet in the head, i lose my job.

i'm not going to buy the stock, it's going to take an enormous amount of firepower to move this ship >> but you didn't buy it yesterday. why think about yesterday's move it's tomorrow's move >> it's probably two years from now's move so it's dead move in my opinion. maybe you could buy stock and collect the dividend but that's it >> the options are indicating this thing is going lower. we saw today a huge rolldown, 16,000 contracts moving down to 18 1/2 puts, saying hey, we made a lot of money, we were buying puts before, now we're looking for even more money buying puts still. the biggest problem i have with this name now is when do we ever see true growth. i mean, i want to buy stocks that are getting hammered for the wrong reasons. everything i look at ge right now is they're getting beat up for the right reasons. they don't have anything right now that shows me, hey, look, we are ready now to start turning maybe in a year, maybe two years. i would rather be somewhere else for the next year or two years while i'm waiting. >> let's take a listen to what

john flannery, the ceo, said on "squawk on the street" about what the company is going to do to move forward. >> the company has been around for 125 years. we've reinvented ourselves many, many times we're in that process again. we've constantly leveraged our technology to reinvent and move the company in different directions people who want an exciting, new direction, i'll recruit anybody and talk to anybody. but people are going to have to want the battle, want to change, want to move the company forward. people want an easy task i don't want too much challenge, that's not for us. and that's not for them. >> so he's basically saying it's going to be a huge challenge >> yeah. it's interesting, we've been talking about this now for two weeks. >> and you've been enjoying the elongated conversation >> yeah, it's a fascinating story. >> considering it is a position that you have right now. >> so just real quickly i'll say, you can't put your

fingerprinting today on why the stock was down another 7% other than people are dissatisfied with what they're hearing, they keep selling to your point, either the stock is going to really crash and go much lower, maybe they're down $15 or something like that it bottomed out in high single digits, back in 2009, or it's going to find some room, the sentiment has shifted too far, too fast, and you'll see the stock back up to 20. then you'll let this story play out, as long as there's faith in john flannery in doing this. he probably is the right guy to right this ship. to me, you're probably setting up with a good trading opportunity. i'll look to sell it up towards 20 if we get a snap towards that a, if you've been long the whole way, this is a great opportunity to sell it the story isn't going to get fixed in 2018, probably not q1 in 2018 either >> what's going to bring it back in 2018? >> at the end of the day,

sellers' exhaustion. >> right now it doesn't look promising. [ simultaneous speaking >> it was $15 at the high end, basically 15 was being super generous our price target is $17, that's a year ahead of time >> your guy did a great job pointing out today, maybe it was on "power lunch" or the noon show, these guys have been buying back stocks for three or four years, people say how smart. these guys eradicated -- >> worst use of capital. >> duly noted. >> think about awfulel debt they could have paid down all right. one trade certificate betting there's more pain ahead for ge pete alluded to this >> what pete was alluding to was short term protection, somebody who basically had this put spread put on and short dated, i think it was december, rolled them down to a lower strike as the stock keeps going down today total options volume is 2 1/2 times average daily volume one trick that really stuck out if you're looking at this sort of action. there was a buyer that had

10,000 of the january 2019, okay, more than a year from now, tern strike puts paying 16 cents to open. that's not a whole heck of a lot of premium but when you think about it, we have a chart of implied volatility here, and obviously it's been ticking up it's in the mid-30%. if you look at it over the last two years, last ten years, when things really got distressed, this could be a 50 vol day, 60 vol day. these options could get bid out pretty easily. this is more of a vol trade than someone saying i want protection below ten. that's what we're talking about right now. se sentiment is really important. watch analysts' downgrades, and at some point you'll have a shift. >> this is not protection. because it would be the most foolish protection ever bought but it does have a reminiscent scent to it like we had in the financial crisis, bear stearns

is buying the 30 strike put. why are you buying a ten strike put when the stock is trading 18, $19? somebody looking for something even worse going on with ge to potentially go lower doesn't mean they're right this is -- >> way, way. >> and if you did get the stock -- >> people said that about bear stearns too. >> i get that. >> those options went from 30 cents to $30 >> how many guys are out there at ten bucks and is this an active, open interest option >> no. you weren't listening. tune in at 5:30 friday >> you've been tuned out all night. >> "options action," full show 5:30 p.m. eastern time roku closing down 13% after strong start to the session. could this be your best chance to buy this -- what did you say? we'll explain. plus tim's had the hot hand knocking pitch after pitch out of the park. he's got another ne, fd t aminou what it is when "fast money" returns.

well, it's earnings season once again. >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade.

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welcome back to "fast money. time for an instant replay back in may tim seymour stepped to the plate to pitch qualcomm

>> if you look at the stock, it's now around 55 off those lows there's very good support. it's a key level here. if you take the stock going back, this is the level that we found. if you take this chart back even further, you've got a company that at $50 you have multiyear support. this is for a company that struggled with china royalties, that struggled with lawsuits around the world they keep coming back for more it's a sum of the parts valuation, it's very compelling at these prices with a lot of bad apple news in the stock. >> since that call on may 31st, qualcomm has soared up more than 15%. so what do you do with the stock now, tim >> we did this price is right i believe yesterday. >> we did, you said higher >> and again, this is a company we know two-thirds of the royalty payments could be in question they're involved in other businesses clearly the value of the stock is being fought over >> does it go higher regardless of whether or not the broadcomm bid comes through, higher bid?

>> it's established a floor. it sparked awareness of where these guys have core businesses. >> the qualcomm call worked out pretty well. tim, why don't you head over to the plasma and give us your best shot >> let's talk about a bank financials had been a very interesting place to talk about and a lot of people, no matter what they've felt, have said weakness is the right thing to do let's talk about bank of america. that's my fast pitch i want to get into the story here bank of america, like a lot of the financials, has done almost nothing over the last six months if you look at the stock, bac is flat since february. i think there's three primary facts here that i think we can look at. there we go. bottom line is, the company first of all is benefiting from cost cutting they have done an enormous job of cutting savings $620 million in the first quarter. their efficiency ratios are up to 59%

it's only going to get better. the increased capital returns are very important banks, you should not be playing them for dividends or buybacks bank of america now, because the regulatory target is off their back, is able to raise their dividend as they did in august, 60%. the capital controls on the banks are now actually a tailwind that balance sheet has never looked better. and again, finally, the third point is higher interest rate sensitivity. we complain about the yield curve going flatter. bank of america increased their net interest margins by about three basis points overall to 2.36% i wanted to bring up a chart on the stock and show you ultimately what we're talking about. we have a stock, if you click on the year chart, banks have basically come here. since this point, though, this stock has really done very little it's now down 6% off the highs and you're at a place here, think about what's happened since february a 60% increase in the dividend the regulatory hurdles, he

resigns and suddenly banks are able to breathe again. you have a dynamic where you have four interest rate hikes that are probably coming next year and a fed sensitivity that's only going to help these guys, their balance sheets have never been better. this is a great time to buy weakness in bank of america. >> take a breath with your power pitch. >> fast pitch. what show are we on? >> we talk about who is in the pantheon of technical analysts on this program. that's the worst support resistance line i've ever seen, i've never seen an analyst come on "fast money" and actually piece it together. >> do you have a question for him? >> where is the stock trading? at $26 you have great support for the stock. there's no reason this stock needs to trade below that level. these are key levels >> which levels? >> the rally would be valralliep to in february >> seriously, not fast pitch we've seen this over the last couple of quarters, a lot of

bank ceos have come out and talked down banking activity will that give you a better level to buy this thing closer to $24 >> it's possible but i think at 26 you do buy it. you may not get there. in the second quarter their interest rate sensitivity businesses did very well it was in some of the long growth, fixed income and capital markets are weak >> are you buying tim's pitch on bank of america? dan, kick it off i wonder what you're going to do >> i'm a seller here >> really? >> shocker >> an opportunity to buy it at 24 between now and the end of the year power pitch. >> it's fast pitch >> tim, that was an amazing fast pitch. i think you did a great job. i am a buyer of bank of america. i think the stock is amazing i've been buying it since 14 bucks. i think it will continue to move higher, easily in the near term it goes up to 28, 29 bucks a

share and higher levels next year >> pete? >> despite tim's lack of, you know, charting skills that dan was so critical of, i'm a buyer. i own it i own the calls in it as well. and i'll tell you what, warren buffett, giddy-up, big dawg in a big way. got the right people >> two buys, one sell on the desk plus warren buffett, buy category we want you to vote in our twitter poll @cnbcfastmoney. roku continues to outperform are these your bcoest rd cutting plays? the traders weigh in when "fast money" returns easy to analyze and take action? how about some of the lowest options fees? are you raising your hand? good then it's time for power e*trade the platform, price and service that gives you the edge you need. alright one quick game of rock, paper, scissors. 1, 2, 3, go.

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welcome back to "fast money. the streaming wars are heating up as another skinny bundle jumps into the race. julia boorstin is in san francisco with all the details hi, julia. >> reporter: melissa, another alternative for traditional tv, this one for cord cutters who don't want to pay for sports, philo launching a bundle for $16 a month, four $4 adds another nine channels. the folk is broadly entertainment, including comedy central, the food network, mtv and nickelodeon, but with no news or sports the channels are supplied by discovery communications, scripps networks interactive, viacom and a&e networks. those are also philo's backers, investing $25 million into the startups these media companies are

looking to create a new revenue stream to battle rising cord cutting and cord shaving which was consumers switching from traditional tv to skinny bundles. viacom's channels are not included in hulu tv's bundle. those digital bundles are up against a different kind of free content from the social giants, facebook just yesterday announcing an original show starring bill murray about my knowledge -- about minor league baseball, free and ad-supported. all of these options are competing for ad dollars as well as eyeballs with the broadcasters who are suffering from declining ratings and subscriber declines as well. one factor working in the traditional broadcasters and cable companies' favor, there are so many options and potential combinations of services and bundles, sticking with cable tv starts to look

like a simple choice >> thank you, julia boorstin in san francisco. as the bundles get skinnier, the competition in the streaming space tightens check out these mega bundle busters. they have been crushing it newcomer roku scored 57% since going public, making at it best performing tech ipo this year. netflix jumped an impressive 58% this year. is it time to ditch the bundle are these bundle busters the best cord cutting play, dan? >> netflix has obviously been the one. roku, the jury is still out on what julia said is important, now that facebook is going to enter the game, google will soon, apple is in the game you have content, distribution, and hardware too that's what roku is, i think roku is very challenged. netflix is where you want to be. disney, the stuff they're doing, this is going to be increasingly complicated, just as you just

said to me, i think there will be huge competition from the guys who have $500 billion market caps >> the idea is they are another entra entra entrant, people are accepting roku can compete here and there's more competition >> they're offering a simple solution the more that amazon and google do with these google homes and alexas and stuff like that, they're going to have something that's going to put roku out of business >> they're transitioning to a service model. a transition like that is very ditch to difficult to achieve it's not something i look at and say that composition can't come in, exactly what you're saying >> netflix because of scale. >> from a scale perspective -- >> it makes sense to me, i agree with that. otherwise there's absolutely

zero mode. when disney takes your best content, and some of your content walks away for other unfortunate reasons. >> it's the same problem that roku will have [ simultaneous speaking >> you look at the volatility of this stock, holy smokes, in a volatile market we've been in, you look at the s&p, we talk about 10 to 12, it's absolutely nothing. it's tough to find volatility out there, some of the trading units out there. all of a sudden you look at roku and some of the moves this thing has been making, absolutely astounding same day moves, up, down, all around >> stay away >> i would stay away from roku personally if you were going to be in there, maybe call spreads, put spreads, something to offset it. netflix is much more mature and you've got the international that continues to grow coming up, warrebun ffett making interesting moves, we've got the details when "fast money" returns

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youtube people getting scared. [screaming] but what about that one? [screaming] tv that's more than tv is awesome. get netflix, youtube and more. now on xfinity x1. xfinity. the future of awesome. welcome back to "fast money. the latest round of filings are out and billionaire warren buffett made some interesting moves. let's get to leslie picker in the newsroom with more >> reporter: the oracle of omaha always interesting he's been trimming his expectations, telling cnbc he's been reevaluating the company. >> i don't value ibm the same way i did six years ago when i started buying it.

overall, the six years that i've revalued it somewhat downward. >> reporter: after he said he was paring back his stake, the stock slid he declined to say in august whether he was selling more. today we learned that berkshire actually did, his shares are still worth $5 billion, though the firm continues to build up its stake in another tech name, apple. berkshire increased his stake in apple by 3.9 million shares during the quarter you'll also see a new stake in bank of america on berkshire's filing that's due to the warren buffett spot during the financial crisis, earning a paper profit of about $12 billion, melissa. >> got to be one of his best trades ever. leslie, thank you, leslie picker from the newsroom. how do we trade this granted, this is as of the end of the last quarter. so it's june so -- or excuse me, not june september. >> basically what they did from

june to september. if you look at apple, great trade. in fact, 4 million shares, roughly 20 bucks higher, you can do the math at home. the ibm trade looks like a poor trade, they had a nice shot up after their numbers, it's come back down to earth he's probably right. ibm could be one of those names, we've talked about it a long time, like the ge story. >> i agree, i wouldn't touch ibm. bank of america i continue to buy, phenomenal trade. frankly, apple computer, i love apple, apple's going to work, 185, 190 bucks, you take it off. >> it looks like he's still selling ibm. ibm gapped up after their q3 results and filled that entire gap. it's not the sort of thing you would expect to see after the first decent report where there's a massive move, that must have been the biggest one-day move in ten years in that stock 140 to the downside is probably the next level >> paulson and company dissolved its stake in apple

the oracle of omaha is adding to his stake. >> most of these guys are saying we're going to fade it into the release. it makes sense, it was the right playbook, and apple has defied that logic >> i also add, i was getting a chance to look at his top six holdings, all tech micron, apple, across the board. facebook, google, you name it, he's got it. i still think apple has plenty of upside and i think there are enough out there that there's still belief in that as well up next, are you buying tim's pitch for bank of america? still time to vote, head to itr ghnow. we'll reveal the results right after the break. you always pay

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with my advisor's help along the way, it's finally my turn to be the host. when you have the right financial advisor, life can be brilliant. ameriprise welcome back drum roll, please. america has spoken and apparently they like tim's charting skills, dan, because they're buying tim's pick for bank of america. that means tim is having the time of his life >> it's a little bit of sweet. it is nice to crush dan and all those flimsy arguments >> haters are haters >> i've got a stock that's my final trade, i own it, it's going higher because of international growth and will replace ge, in the dow, ge >> tim >> bank of america, people i'm not saying anything else

>> i'm a seller of foot locker >> i'm a seller of coke. >> and bank of america and this . >> and bank of america many miselsa 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 hay i'm cramer welcome to m.a.d. machine. welcome to cram america. other people want to make friends item trying to make you money. call me at 1-800-734-cnbc or tweet me @jim cramer here we go again s. every time this morning pulls back like it