that as well but i don't know how you get from here to there. >> the price of bitcoin was below $10,000 either early today or yesterday somewhere around $11,000. >> almost retraced that whole post thanksgiving ramp from $8,000. >> i remember that ramp. that does it for thoib michael thank you. "fast money" begins right now. >> "fast money" starts right now live from the nasdaq market site overlooking new york city's times square i'm melissa square item, karen, and dan tonight on fast, united airlines flying high. the stock taking off after earnings the cubic inch conference call is happening right now phil lebeau is manning the red phone. he will give the us instant reaction from the call later this hour. later on, crypto in limbo. bitcoin sitting in purgatory after its month of hell. if you don't know what's going on, brian kelly is here to break it down and give you three golden rules for crypto trading. first we start out with the

breakout in two groups of stocks this year. just like the karate kid they are the best around. big tech and biotech kick off the year qqq up about 9% in 2018. and ibv up about 10% this year when it comes to hunting for growth in a raging bull market what is the best bet, tech or biotech? dan. >> on a day like today, when you see netflix, a name that a lot of investors keep a close eye on as they think about tech, up at new all time highs, up 10% google has gone berserk before they reported earnings one sector that's more interesting could be biotech we have been talking about two big deals that we've seen already. when i think about the ibb it made 52 week highs but it's down 10% from its 2015 all time highs. sell gene, boyio yen and gilead are still off considerably from

those high they have been aquarsor are going to be acquires if we are going to continue to make new highs in the market the ibb looks to be a decent bet to get back to those prior highs. >> if you look at the chart the last year half, this has been one of the kind of slow and steady wins the race israel evaluation argument, you have had either macro, regulatory, there are risks in every one of these names but this has arguably been one of the safest places to be investing the last 18 months you can make an argument as dan pointed out the top four or five names in the ibb make up 75% in the xbi, the top five names make up six or seven percent different companies, different balance sheets, different cash positions. ibb is a defensive play. i think we have proven that. >> that's the point. xbi, the smaller biotechs are going to be bought out it is a higher risk trade.

the me i think it has higher reward it doesn't mean that ibb isn't a great trade. i get it looks like it's going to get back the new highs but xbi is filled with the ones that everybody in the bigger ibb are going to buy for me i would rather play that momentum and play that take hoefr game. >> yesterday we had $20 billion worth of deals in this one sector and others say there is more to come sell gene, some are are saying sell gene is not going to be done even after yesterday. >> that was a huge amount of activity i think it's been pent up for a while. we have been waiting to see big deals for a while. maybe that continues, talking my book, i have technology for google, alphabet, facebook to me, i would much rather own those businesses. >> why >> if you are looking for takeover or cole dagss at play to me that's riskier than owning an extra other cash flow business that every day rings

the register people cannot stan the stress of waking up and having failed some trial. we haven't even heard yet from alphabet i think they report next thursday what are they going to do with the cash pile they have? i don't think they are getting a lot of credit for it everyone knows it's there. that's no secret but this is an extraordinary business it is my biggest position by a lot. i would much rather own it than xbi or ibb. >> i agree with google again we are at this place in markets where you have to feel good about the valuation and the multiple and the great company there is a lot of great companies executing in an environment where there is a lot of tail winds. but buying a company that's not expensive on a yearly basis is significant. gilead, what i like about them is yes they have made an acquisition. i think it was a catalyst for the company. what they are doing in cart t, what they are doing in the cancer space is very important because the hcv business, hiv

business are ones where people question whether they are going to stay as profitable or be a victim of their own success. they are stabilizing i sense with the top four biotech stocks there is a lot of news in the stock, the valuations are good, why not own the whole thing. >> what concerns me is later in 2018 when the midterm elections come into play and the issue of drug pricing has come to the fore as we saw in 201. >> i think it's easier to make a case that the government coming after these tech monopoly is going to be a much more focus. >> the regulatory risk is bigger in amazon, google, facebook, that sort of thing, when you think about the monopolies and the power they have, the lower tax rates, cash hoards, billionaires running these companies. >> whatever you want to call it, we are at a place where a lot of the companies have been oppositional to the white house.

they have certainly a sense of balancing where they need to protect people's identities, their information, their data. they have bigger targets, for sure. >> second half of 2018 is a lifetime in the environment. >> in bitcoin time, orever. >> like forever. in this market to worry about the regulatory things in the second half of the year with the momentum that the biotex have now i think they blow it off. not that it's not a concern. but in this environment for for the next quarter or so, you have this momentum that everybody is going be the playing, we are getting takeovers, biotech is hot and they are going the blow of any concern about a regulatory issue >> are we going to have a blow off period netflix is up 30%. amazon -- >> that's what i'm saying. >> it's scary. it's not scary if the you are long happy. how much longer can this go? when you look at the concentration of these top five

tech names. >> we are analyzing at 135%. it's bitcoin scary we are not supposed to be there at this stage this rally but know there is a lot of good news, people are saying analysts haven't been able to price in. as companies are reporting we are getting clarity. we have upgrated 4.5% on a tack deal that inning a re grate is increasing eps 10 to 15. >> bottom line would you rather. tech or biotech. tim, clear answer. >> biotech looks more interesting. based upon the track record of the last 18 months people have been cautious and confident. >> karen. >> i wouldn't short biotech but tech. >> does biotech interest you at this point >> i think there are animal spirits, deals are in the works. that gets bankers sal vagt so you could see more deals on heels of that. that wouldn't shock me. >> bk. >> biotech even though it has had a run.

>> dan. >> xbi making a new all time high confirms what i think is going to happen in the ipb. >> would you call it -- >> i don't like charts that look like amazon when they go like this, straight up. >> why is it one of the most constructive charts? >> it is a nice stare step and it seems some of the head winds that were in the space moved away now we are seeing this m and a, which we know benefits the acquirers. >> what about that chart do you like i said it's constructive it's been making a series of higher lows and higher irs that. like your stare step, the term that you use >> that's fine. >> and it looks like there is an air pocket from the highs of a couple years ago >>. [ overlapping speakers ] >> moving on, where does the world's largest asset manager see growth let's ask.

here now is terry simpleson black rock's multiaset systems investor what's the best bet for growth >> a lot of countries across the world are experiencing above average trend global growth. weaver positivan that story. as an investor you want to ask yourself is this priced in right? the number we get asked on these shows, is it priced into the markets in the economics and the fundamentals and what the markets are giving us there is still reason to be positive and have risque sets in your portfolios that's had we are tilting towards. equities, belts, bonds we think there is opportunity there. >> sector wise. >> seccor wise, we still like financials, technology i tell you technologies, you were talking about it. it's up with of those loved sector because you are getting revenue growth and eps growth. but the financials are interesting because it's still underweight in a lot of portfolios so there is opportunity there for investors still looking for bargains >> we have seen oil go up.

in addition tees have rallied. inflation trade. obviously now rates are going up at what point do you start to get keshed and say you know what that's going to be rates, 3% on the ten-year where do you stand on that is that a concern for you on this whole market? >> i feel like these are the good times we are looking at what is the beerest catalyst we have been debating this a lot at blackhawk a last couple of weeks or months if you extend it out. if you are looking atorer higher rates, you have to see if it is a result are of growth prospects, manufacturing data, if that's the case it can be positive in that context we come back to the theme we talked about three or four years ago, the great rotation we still see a lot of money flowing into bond f. you have higher interest rates that's going to spook the bond investors. what is the better return? the equity market. something to think about there if it's not that dramatic. >> do you expect higher earnings

or a multiple change >> good question we are trying to adjust our client's expectation for this year last year was a good year for eps growth out bubble digit earnings for eps growth we still think it's decent this year less on a multiple expansion but the better opportunities this year, emerging markets last year we had a 30% run up. less so in the developed markets. >> if i had a fresh dollar today would you put it in emerging markets or technologies, et cetera. >> we still like emerging markets. but from the economic growth standpoint we know there is a sensitivity of emerging market to develop market growth where is global growth happening today, developed markets what we found is that sensitivity, that beta increases as the expansions gets longer and stronger

from a fun flow perspective, karen always asks me this, we still see a lot of people putting money in but it hasn't come back to where it was in the last five or seven years. >> terry simpson, block rock tim what did you do today. >> terry and black rock have been talking about this for a long time. global markets have continued to outperform it's nothing to -- about the s&p you should besmirch but i would say if you look at the growth that's come from emerging, what they are talking about is a weaker dollar is a huge benefit to these places, southeast a, vietnam, ooefts are on fire. a shares are up 9.5% when china is chugging like this emerging markets are going to outperform they have outperformed the last three weeks but unperformed by 40 fundraise in the last five years. >> what did you do today >> i was looking at the dollar for exactly this reason. if you look at what terry is saying, where is this global

growth, what's that's going to impact it could impact care's tech secretary auto you have a tail wind from a lower dollar, i have global growth, emerging markets. >> this is now your sector by the way, you own it. >>. [ overlapping speakers ] >> not a bad one to own. >> karen, what did you do today j i didn't do a like i do like eem. this rally is great here but maybe we are near the end of the beginning. that would seem somewhat obvious because their rally started much more recently. if i had to put your fresh dollar to work, it would be -- in tim's eem. >> in tim's -- >> that dollar is down 10% year every year down 10% on the last year. >> dan >> last week i got annoyed -- >> wait, wait. >> be more specific. >> an analyst put a price target on texas instruments. >> i thought you were talking about something completely different. >> no, i was about to put on my body armor. >> do you remember like in two days the stock went immediately

to its price target? >> yeah. >> here it is, texas reports, maybe later in the show. now he's down eight points today after earnings you know what i mean i think the smh, i have been trading around it, i have been trading around, pulled the rip cord a couple of weeks ago. >> how do you feel about bitcoin? >> just kidding. save that for another show. >> i love when dan says remember last week when i got pissed off at an analyst. >> which one are you talking about. >> a block or a block, which one are you talking about. phil lebeau is monitoring continent's al's call. what the ceo is saying that sent the stock lower. bitcoin is stock in crypto purgatory. even as though look vulnerable, brian kelly has three golden rules for investing in the space. stocks are at record highs

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united airlines. what happened? >>s that cost story. the cost stories that they are outlining right now in the midst of this analyst call are substantial, and it is a capacity story if you want to grow revenue, ultimately you have got to add seats. to add seats, you ad aircraft. you drive up costs what we are looking at for united airlines, think about this, they are looking at their cost per available seat to be flat to up 1% in 2018. then when you look at their available seat mile growth over the next three years, up 4 to 6% 2018, 2019, 2020, essentially, they are going to be growing a lot their domestic capacity. they say this is the only way they are going to be able to make houston, denver, and their main hub in chicago more competitive in terms of driving higher profit from those small markets across the united states they need to do that in order to catch up with delta and american they have just outlined how they have fallen behind delta and

american over the last six or seven years by pulling back in many of these large hubs, especially with domestic capacity as a result they are outlining how they plan to grow future profits and future profit margins by expanding capacity in the united states. sounds good on paper but whenever you have investors melissa hearing capacity growth of 4 to 6% per year over the next three years that spooks investors. we will talk with oscar munoz tomorrow morning on squawk on the street about this new plan to catch up with delta and american when it comes to profit margins. they are about ten points behind delta was a profit margin of 17% in the fourth quarter. it was 6.7% in the fourth quarter for yunited >> do you think thissers cloo the deck for 2019. they seem to have something that they needed to get off their

chest. >> yes they have absolutely done that i think they are willing to take a hit right now because there is a strong economy and strong demand they truly believe you have to be either number one or number two not just in your hundreds but in all the markets around the country. they used kansas city as an example. they went down the list in termts of the four areas you want to compare airlines, hub scale, connectivity, in other words where do the hubs connect to revenue connect, and efficiency, how well are you using your assets they are number three, or number four in those areas. >> phil, let me ask you, do you think the discipline of the industry is now in question? >> yes, because any time you see this much capacity growth it raises the question not only what will the other big players do, delta and american and southwest, what happens with the

smaller discount carriers? they are going to fight like heck to protect those little pockets of strength that they have around the country. and so i think the real concern among investors is, does this spark a capacity war we've seen this in the past. you know what happens when there is a capacity war. nobody wins. costs go up, airfares may stay contained or lower beside which obviously hurts passenger revenue per available seat mile stereo we are seeing concern reflected in the shares in the airline stocks in the after-hours session, phil. do you think based on what we've heard already from other airlines, namely delta, is that concern valid in your view. >> i think that delta -- and we are going to be hearing from doug parker, american's ceo when we are down in dallas on thursday i think both delta and american will talk about remaining disciplined when it comes to capacity having said that, nobody wants to fall behind in any market so when you see competitors become more aggressive, you have

two choices. do we fight back or do we pull back over the last seven years, united, for a variety of reasons, pulled back they are seat growth in some of their largest hubs dropped 8% while american and delta raised their seat growth ask. they looked back and sid, what did we get by being more disciplined here we ended up losing now we are going to got aggressive so i think while delta and american will try to be disciplined. don't would be surprised if they have to start responding at least initially market by market. >> this sort of market expansion does it precede pricing wars or more cuts the prices. >> yes, usually. usually you will see it precede price wars now they have the benefit of a strong economy right now and there is a lot of demand to out there so they don't have to get super aggressive on the pricing. but you know, this is -- it's not magic here there is only so many seats usually in a particular market before you are going to have to cut those prices

and that's the question i think investors are worried about. that's why the stock is moving lower. >> yeah. >> does this spark a price war, a capacity war and this is an industry that has terrible track railroad when it comes to that. >> phil, thank you, united shares down about 6% right now i feel like it's a boom/bust cycle when we are talking about the irns la. we finally get over those worries and then they enter the market again and investors get spooked. >> this is exactly what these guys did back in july. they posted a first quarter update january 9th it was very positive but they pointed they were doing an investor day like event instead of an earnings call a lot of people said they are going to give us more and it might not be great hunter k. was the one that said it would be noisy and they are going to try to clear the deck for 2019 $80 for the stock. you are right back at the highs. it's almost as if it was planned. >> yeah, listen, i know they have a terrible history of not being disciplined but just take a step back and understand

what's going on is that they see demand they are not going to expand capacity if they don't think there is demand there. people want to buy their product. i think you take a beat. you wait maybe a day or two and see how this trades. but this could be the turn around story for 2019. it could be that kitchen sink idea is this what's your take? >> i'm long delta american and united in that order i hate to see this because phil sort of addressed it, do they try to be disciplined or do they feel like they have to jump in and do the same. >> yeah. >> i don't love that i want to dig down and see where that capacity is, because we are seeing improvements in some atlantic market, latin america. >> international. >> international. >> it's actually not bad. >> that could be high margin business but i don't love -- i mean three years of it, i don't love that. >> stocks moved 40% off the lows let's be clear, also the airlines have been great trading stocks they have given you opportunities here and by the way, sentiment erodes very quickly i don't think --

>> do you dip in >> no. you don't need -- i own united and delta and i am not selling on this news. >> still ahead this stock is at an all-time high tim see more says it is the perfect time to buy. we will tell you the name. i'm melissa lee. here's what else is coming up on fast ♪ we bring good things to live in we bring good things to light ♪ >> not of late, as ge shares continue to slide. and there is something to suggest it could get a lot worse tomorrow we'll explain. plus, bitcoin is crashing. bitcoin is surging bitcoin is crashing. >> i'm confused. >> don't be. because resident crypto baller brian kelly says investors are ignoring the biggest rule about buying bitcoin and he will tell us what that is when "fast money" returns. you always pay

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>> welcome back to "fast money." bitcoin bouncing today, still on pace for its third week of losses, the longest such streak since september. since then, it has been stuck in bitcoin purgatory. lower highs and false hopes, and mineless tweets to the platform with silly arrows drawn. it is where many bitcoin investors find themselves. it has been trading between $10,000 and $11,000 and happy been able to break out it is down 45% from the highs it made in december when it was a stone's throw away from making $20,000. could this be a sign that bitcoin fever is fading. >> that was dramatic music, too, brian. >> that was very dramatic. >> did that have you did -- >> no. here's -- from my perspective, here's what's going on you had a lot of fear -- a lot of fud, fear, uncertainty and doubt about what's going on in the regulatory environment in

asia korea is cracking down, and starting to regulate them. china is effectively don in banning bitcoin. from the retail asian invest to the japan institution investor but the money is still coming in when we talk about bitcoin up at $20,000. everybody is excite, running around, how great it is. those are the times to be cautious when everybody is saying it's over, that's it, bitcoin is dead for the 17 ate time now is the time you start looking at it on the buy side. >> what makes you think this handoff is actually occurring? we can't track -- >> if you were in my office in the phone and hearing the phone ring off the hook you would know that the flows have not stopped. >> that's just me. i want to know why it's going down every day you >> hung up a few times on me. >> you will matly, brian, couldn't it be a healthy

colization, the fact that we are settling around a level and you had people that could have sold it down a lot further that are hanging in >> this is healthy for the eke o'system in my view, you shake out the weak hands, get strong hands in there this is not the end of bitcoin i'm really happy this happened because when it starts going up 10, 20% and it's up at 20,000 people get excited and start buying the highs they don't understand this is an extremely volatile asset as we have seen. i think this -- sometime it's feignful but it shows you it is extremely volatile. >> so the crypto fever is not fading, what are some of the golden rules crypto traders should follow. >> let's do it the crypto rules aren't too different than some of the other trading rules. but there are three big things that you should keep in mind when you are trading crypto. first the of all, remember, this is an extremely, it is a new technology things break this is internet in 1995 so you only want to risk 1 to 5%

of your investable assets on this the reason why i say that is, if this is really going to be the next internet then you are looking at a 10, 20 x strom here and your 1 to 5% of your assets is going to grow exponentially let's say it doesn't work. if that's the case then 5% of your assets are gone and you lost it. it hurts but it's not life changing that's number one. number two, don't sell too soon. if something is up 20 or 30%, you want to hold on to that. it's what the crypto kids call hodling that comes from a misspell a long time ago the hardest thing i learned is once things start moving, once there is momentum, you hold on to this thing. okay the last thing, do not panic when things come down. understand that you are in an incredibly volatile market these things can move 20, 30% in a day. this is why -- if you sell on the lows, that's what the crypto

kids call getting rekt don't get rekt when you want the puke on your shoes in the morning you buy those are your three rules. >> great spelling. when you talk about crypto how do you differentiate between bitcoin and some of the other cryptocurrencies that you are looking at >> there is a myriad of them what i look is the foundational current sees, bitcoin, ripple, and payment systems, bitcoin cash as well and the platform, ethereum, eyoes, couple theories that you can build smart contracts on top of i separate into those two. they are the core of my portfolio. >> you mentioned platforms and you talked about how this is internet 195 is it more betting on a

platform ethereum as a bitcoin platform. >> if the you want to invest -- here's the thing i say about ethere ethereum it's starting to happen with bitcoin. there is a smart contract second layer coming root stock rsk but with ethereum there are thousands of the smartest minds around the world working on it i know when you put that many smart people together something builds something incredible. if you want to close your eyes and say how do i get in, ethereum is probably the way to go. >> still ahead, ge's moment of truth, stock go from worse to worst. sitting on multiple year lows and earnings out tomorrow. there was a large and troublesome trade today. we will tell you when that's about. as more sp more stocks hit record highs how do you know where and had he to put your money to work. we'll break it town when "fast money" returns nvestor satisfactn

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welcome back to "fast money. i am in washington where j. powell has secured enough votes to be kfld as the next chairman of the federal reserve the vote is ongoing but so far he has 81 senators supporting his nomination a a dozen are opposing it. all he needs is a simple majority of 51 and then he will confirmed as fed chair once the gavel comes down this vote comes with a little

time to spare, janet yellen the expected to step down on february 3rd earlier today, mitch mcconnell said that jay pow sell a steady voice at the fed and that he will be a thoughtful leader. now he appears to have enough votes to be confirmed as the next federal reserve chair with support coming from both republicans and democrats. la lista, back to you. >> thank you elan moi in d.c. stability at the fed for all intents and purposes here. >> not shocking of course that this happen. be careful what you wish for it could be a bumpy road for the fed coming up. i dothink there is a real chance of an inflation spike. >> good question. switching gears to general electric jumping 4% ahead of its earnings before the bell tony despite the move higher the stock has gone from worse to worst. sinking more than 40% in 2017 making it the worst performing stock on the dow j u.s. this year losing $6 billion in market cap.

now the sec worst performing dow stock. let's go back to headquarters to talk about what investors looking for in tomorrow's report. >> expect the results to be messy. they announced they would take a charge related to the legacy insurance business and a charge related to tax reform. earnings for full year 2017 are likely to come in at the lower range of 1an 05 to $1.10 according to its latest updated guidance but the street will be most interested in what's coming next current guidance for 2018 is $1 to 1.07 for for earnings and 6 to $7 billion in cash flow bank of america, which down grated the stock yesterday thinks the outlook could be lowered if the feign and power has worsened the conference call will be the focus as the street looks for more commentary regarding a potential breakup of core industrial businesses especially as analysts argue that the sum

rt parts valuation doesn't support a full break up. investors will be looking on updates on the plan, $20 billion and other divest tours as well including transportation and lighting and whether ge will exit its stake in baker hughes when that lock up expires nextee also any updates on the board that is shrinking from 12 directors to 18 with three spots expected to be filled. ahead of the results, stock closed up 4% after breaking below $16 yesterday to hit a multiple-year low. melissa, this is after this was the best performing dow component to start the year. we have seen a lot of volatility here >> thank you morgan brennan at headquarters tim, as a holder what are you looking for? >> the precash flow number i think the 2017 precash flow number is 4.2 or 4.5 as morgan pointed out, people are really focused laser on free cash for 2018 because of the insurance reserves that they have to put against ge capital, which i agree, they can't break

up this company because of ge capital. i think there is a lot of crossover between the reserves that are promised from one business to another. i think the industrial will earn 25 cents, ge capital, two or three. i think people are not expecting anything i think the comps could get worse in power i think that's people should be concerned about. i think they are going to talk about 5% down in terms of where they are going to be on their power business i think they -- i think the move in the stock over the last week, which has been related to breaking up the company, is fair except for i don't think they are going the break up the company. >> all right so even if they are not going to baek up the company is there any hope here? >> not for me anymore. i have tried a bunch of times. even like a week or so ago i thought maybe this is the bottom here and i gave it another shot and you know, i -- they must have a whole slew of kitchen sinks because they keep throwing them out eventually they are going to get it eventually they will write everything off but bk is done with ge for a while. >> the bank of america down guide that morgan cited the

analyst points out in november and january they cut its guidance and believes they are going to cut guidance had he this report tomorrow how many times did can you do that to an investor base that also already been burn these are months apart when it comes to disappointments. >> this is a 100-year-old business, a complicated business to value flet knicks told us last year they had losses of $2 billion on their spending and gained $10 billion this the aftermarket and this stock is trading near 10 or 15 year lows it's interesting what investors are willing to give the benefit of the doubt for at the end of the day. adon't know. sum of the parts, some have it down in the low teens. >> cowan in november, but it was 11 to 15 back in november. >> that's a very smart guy and a very good call but i'm not sure it's relevant. because if you are not breaking up the company, and this is a

company that also has i think a lot of intrinsic value in some of these assets. sum of the parts is useful but we don't do sum of the parts when it's in somebody's favor either i could push back on that. >> any interest. >> maybe something way out there is a lot of leverage if it works it could really work or you could see it down dramatically. >> speaking of options, option traders are betting on more pain for ge actually. dan, what do you think >> today was an interesting day in the options market. ge has been volume tight the options market is implying a 5% move tomorrow the ten year average one day move has been about 3% 2.25 over the last four quarters the most options akts action with the january 26 this friday week eexpiration 16 puts er traded at an average of 15.5 cents e. when i looked at that a bunch of those were opening,

20,000 of them it could be long holder looking for some protection near term just on the event that those puts would break even down at 15 5. that's down 6% from the implied move. >> check out option actions 5:30 p.m. eastern time. >> coming up the crypto craze races on and one fund manager on wall street is betting big on bitcoin. why he is so bullish in the face of all this selling. today 70 stocks hit a record when is it safe the buy at all-time high? s tim see more will tell us the one name at corerd highs he sees soaring to new highs much for "fast money" straight ahead. two,that was awful. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches

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washington crossing the delaware turnpike? surprising. what's not surprising? how much money sean saved by switching to geico. big man with a horn. fifteen minutes could save you fifteen percent or more. welcome back to "fast money. stocks are on fire according to fact set, 35% of stocks in the s&p 500 hit record highs so far this year don is in the newsroom >> it sound like a broken record, right, record high, record high, record high it's because they have hit that many record highs just so far in 2018 today marked the 12th record intraday high out of just the first 15 trading days of the year if you needed any more market superlatives how is this for you. according the lpl's ryan dietrich today will mark the 296th day in a row that the s&p has closed within 5% of a record

high that broke yesterday's record streak, which broke the record of 394 days, going all the way back to the mid 1990s. around 70 members of the s&p hit regard intraday records today. alphabet, the parent of google, microsoft as well. and amazon, too. if apple and facebook, they are right now about a percent away from their own record levels, if they can hit those it would mean that the five biggest weightings in the s&p could hit simultaneous all-time highs. melissa, the worry now is with all of these stock superlatives how deep could any potential pullback be. who has forgotten what a pullback looks or feels like. >> thank you dom how do you know it's okay the buy at a record high i'm going to buy this stock and it's sitting at a record high. >> i understand that feeling i felt chumpish myself many

times. if you step back over the history of the market it's always been okay to buy at a record high. because here woulder. >> at another record high. >> if you step back and take that perspective, it gets easier i also always say going home long is the same as buying it on the close. i bought jp morgan today essentially. >> because you own it already. >> at a record high. >> you bet. >> so, you know, i can live with it i might end up being a chump but i still want to own right here it's the same as buying them on the close. >> good use of chump. >> i think it is an underutilized word i thought for this conversation it was appropriate it's not just price. obviously, you want to see other metrics in growth, i would suspect. >> right, right. you want to see some kind of catalyst out there to me if i'm buying record highs i generally want to buy the first couple record highs. first day of a record high, maybe i don't buy. but then i am going to be buying the second and third record high

on that. now potentially the market is telling me something changed if i can couple that with a catalyst something different about either the company or the market then i know i have got something really nice. >> if you are wondering how to know when it's safe to buy at all time highs fear not, tim seymour is going to head over to the plasma and break it all down for the more you know. >> the more you know, mel. part of this is truly educational as an investor, what do you do when you are buying at record highs first of all to beat comfort i need to know that the fundamentals have actually changed there, has been a rerating we had a lot of tax reform, there is a lot of companies. not just the market factor, but what's doing on in the corps business two, a transformational event, a balance sheet event. ultimately there needs to be a momentum shift in many cases stocks are unloved. look at retail, the airlines sometimes you need to see a momentum shift inthat's ultimately whatter

setting up for the company that i would like to talk about buying at all time highs alibaba, fundamentals. gmv is growing there is a catalyst, february 5th you have december quarter events i think the street is upgrading. finally an ascending triangle. a horizontal line here and higher lows all the way up creates a right angle. today's breakout was magic this stock is going higher at all time highs. >> what do you think of tim's pick. >> i like it but there is a difference between netflix the other day up 15% making all time highs for ten days and what he is talking about with alibaba the stock has been consolidating. he identified a catalyst he's convicted those are the ingredients that get me interested in a stock playing for new all time highs not the set up like netflix. i like this pick. >> exactly what i was talking about, you buy the first or the second all time high

broke out today. all time high. i want the buy tomorrow. particularly now i can couple it with the catalyst that tim was talking about. it is a buy. >> karen >> for me it is a pi normally i would say it is expensive but it is a great business and if you own eem, which i do, it is the fourth largest holding there, i'm long it that's my book long already. buy. >> still ahead, move over bitcoin. what is the next big coin ready to hit the market. we will be joined by a crypto fund manager for what he is calling the next big thing for "fast money" after this break. ablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards e*trade. the original place to invest online.

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welcome back to "fast money. at an eft conference the biggest top sick bitcoin, naturally. bob is at the eft conference in hollywood florida with a special guest. hey bob. >> hunter hoarsely runs bit wise asset management which has a cryptocurrency index fun first, underhadar you and john went round and round the s.e.c. this their letter last week has thrown out so many questions about a bitcoin eft. the answer is he for is no. >> the s.e.c. had 30 questions or show and they shared the things that are important to them valuation, liquidity, custody, the probability of manipulation. i think what it means is they are being thoughtful and they are not going to -- they are going to be patient in trying to evaluate this opportunity. >> that's a political answer

i appreciate it. can the industry address the concerns we have been talking about the liquidity and the custody. is it possible >> yeah. >> they seem to be saying no folks it's not happening >> i think it's possible trade volumes are way up in 2017 i think they are on the order of 10 billion custody is being worked on by a number of organizations, traditional institutions as well as new technology companies seeking to solve this. price can be indesignationed i think they are addressable in time we just need to make sure they are done in a trustworthy way so when a vehicle is introduced to the public it's rock solid. >> why do we need bitcoin efts so much. how many people ion own coin base accounts 10 million. >> 13 million is the last public number. >> suppose fidelity was to announce you can set up a bitcoin account? why are we all stressed-out about efts >> that's an interesting point a lot of the motivation behind the eft is to provide broader

access in the moontime direct access has been brought to the market if it takes long enough, people may find their way to buy the asset directly. >> maybe that's the way to go. your cryptocurrency index fund >> it is limited to accredited investors. >> it hold the top ten crypto assets that represent 85 to 90% of the market by market cap. last yearway say bitcoin go from 85% of the market to 35% of the market bitcoin is a specific bet to make it's no longer general thing it used to be the index gives investigators a way to get brot market exposure. >> hunter, come back again and let us know your thoughts in the future and if you think the s.e.c. is going to do something we want to hear about it, of course. >> melissa back to you. >> bk, quickly, what are your thoughts about how quickly an eft could hit the market >> for bitcoin, i think we are a long way off

i rewi hunter. i think we are a long ways off on that. >> up next, final trade. your brain changes as you get older. but prevagen helps your brain with an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember.

final trade time tim. >> buy the ascending triangle. buy alibaba. >> karen. >> yes, go lumbar mlp, it goes to glng. i like them both >> brian kelly. >> payments are changing, square at the epicenter you buy it. >> dan. >> the gap and crap as we call

it in the business, i think we have to look at the smh here i think we see weakness in the next days. >> i'm ma listily, that's the end of "fast money 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 make you some money. my job is not just to entertain but to educate and teach you so call me at 1-800-743-cnbc or tweet me @jimcramer. if you want to understand this market, i mean, really understand