didn't say it was a slam dunk. and the over the top offerings and details on that. i always say, ever quarter, that the stock tend to do okay during the conference call because they are able to kind of point to, the studio and the things that are going well and the film pipeline. >> julian said the subscription loss has abated in the quarter talking about -- that was "closing bell." "fast money" starts now. >> "fast money" starts right now. i'm brian sullivan your traders on the desk tonight are pete najarian, tim seymour, dan nathan, and guy adami. tonight on fast, we are all over the after-hours movers, disney, gilead, snap, and chipotle all reporting numbers hoemts ago. their conference walls are underway as we speak we will bring you the details as they break. plus he has been sounding the alrm on the ticking time bomb in your portfolio volatility as it rips through stocks. he will be here to tell us what

he sees happening next. how is your neck feeling if you felt whiplash today you are not alone, it was indeed a katy perry market. hot and cold the dow traded in a 1,000 point change here's how this turn around tuesday went down of the we began with nerves high the dow dropped 500 at the open. boom buyers stepped in. and we shot up 400 points at the blink of an eye. then volatility and negativity again. and then it went to the bulls. the dow closed up over 500 points guy adami. welcome again. >> i'm here all week >> is it safe to go back into the market obviously some people thought so today. it was in many way as more volatile market today than yesterday. >> i agree with that so in that question what you are implying is volatility over now have we seen the last of

volatility >> i would answer i think we are seeing the beginning of volatility but is it safe to get back into individual stocks? yes. we talked about home depot and micron yesterday they raised guidance and that stock was up 10% i think have tilt here for a long time. the mark were in turmoil yesterday, and again today other than the fact that we have closed up near 600 points. now you can see the winners from the losers >> what is troubling is i think traders and investors want to put it in a neat backs and say this was spurred on my higher realized volume timt on friday selling as risks heightened selling more getting essentially back the neutral. this is part of what we had. we can blame it on the xiv the voletf

>> i hear you. i mean it's the velocity of what we were watching when we were talk about the rates that's upside. you have got to figure algorithms, the margin calls that were happening on friday and i think as well yesterday. maybe we flushed some of that out. i wonder if we have hit a level in the volatility index in the 30s where we go somewhere from the 30s back towards the 20s i think we may find ourselves in that kind of a rain. the reason i say that, later in the day we saw monstrous put buying. >> let's be clear. the medias has a bias to the upside we like of ther whitd when numbers are up not down. you ten to worry less. here's the point i feel like if it would have ended down 600 there would have been more concern. i didn't like the market action even though we ended higher it felt like we were literally all

over the map and there was a lot of conflicting programs going on today. >> i mean here's the thing as a trader when you see a three day move like we had into the morning you are covering shorts if you have shorts and you are looking to deploy some capital if you had actually been smart enough to take some profits into this sort of event so to me, we have been saying this now for weeks and weeks even the most bullish guys on the desk the level of complacency was getting nerve-racking and the fact that the market in january only went up jim cramer had ceos calling him all last month saying why is my stock going up like this i got it last year why is it going up this year when you see buying ratios where they were out of, what, selling not buying, insiders we had to shake out people with weak hands it's fomo situation. when you ask about volatility.

it is a healthy thing. the healthiest thing, if you were a long term bull for the aboutance of this year is the see some shake out and get -- >> is this the pause that refreshes? something the market can now build upon. >> everything seemed to be moving together in the equity market you mentioned home depot and micron that preannounced last night. we might see dispersion. we might see people rewarding companies that are doing well and people piling into those stocks a la amazon did you see how google underperformed facebook and amazon today facebook and amazon had good numbers and google didn't. >> here's a better question. was what we saw friday and particularly yesterday and maybe this morning -- was it a short-term thing caused by this implosion of this obscure short volatility instrument that was forcing liquidation and selling. >> no. >> or was this a sign of things.

was it a one off or is this going the happen again again. >> i don't think you can put it in a neat box. the question is did we have a catalyst which was this vol fund. >> we definitely did. >> yes, except for the markets were so overbought on the 26th of january we had to get to a place where you got some sanity back in terms of as good as boeing has been, should they be trade at a 23 multiple they traded in the mid 20s at best even though the s&p at a four multiple at 16, 16.5 right now looks interested. >> you saw put buying in the volatility index but in the twebts. if we were to -- >> at the 20 strike itself >> they weren't touching that before >> well, it's almost twice the normal volatility we've seen over the last couple of years. even if it were to trade there, that's heightened volatility my point is that's the environment people --

>> there are some people smart paper in the options more than -- >> what side >> i will give you an example. they were buying the 35 strike calls in february about a week or two ago those slightly paid off because roll tilt index hit 50 today. >> and they were probably free two week ago. >> almost nothing. you are right. >> yeah. >> because you are talking about the volatility index is trading at 14, 15, or something like that and suddenly -- >> how about that trader in hon done that bought march 24 calls on the vix at 49 cents each a month ago. that's good pay date. >> last tuesday we were on "closing bell. we were talking about in the spiders. they were rolling down and they were taking off huge profits, brian, but they were rolling down even further, going 20 points lower to buy even more not all the money that they made on the trade but they still wanted to be in the trade on the spieder. >> hold on, we have breaking news right here. hear that? that's a cramer alert. >> he is still chewy from the super bowl

"mad money's" jim cramer you heard our comment there there is almost more turmoil today overall. what do you make of today's moves? >> i think we got oversold i watch the s&pst proprietary oscillate. it's remarkable of the it only happened five other times in the last three years i have been listening to you guys look, the if you know problems with the market had to to with mechanics. the fundamental problems with the companies had to do with valuation. both seemed to be cured for a little bit but i have got to tell you, we are helped tonight by good numbers. i think we have made people realize the market can go down as we rally i think we will lose people, not gain people. >> you know, jim, said something on twitter yesterday i think -- it's been so chaotic the last hours and days really where you said the market needs help, call the s.e.c., thing are broken we took the xiv and flushed it

looks like it's for the most part gone. do you worry there is more tough stuff like that out there? >> playing the volatility trade as if a volatility is some sort of asset class maybe that -- there are still some others out there. that whole concept has to go out the window what i say to you, in the money management business, what kind of clown gives their money to someone who takes advantage of that ridiculous piece of paper that got wiped out today i have got to put that in quotes who gives their money to these people honestly, guys, i mean, these guys are such buffoons, how do they raise capital they open up a new fun it's about the fang fund like we are fang >> yeah, i mean, jim, hey, it's tim. i think this comes from the excessive market where volatility was so suppressed >> right. >> but team got so used to the central bank put that selling nickels in front of a steam roller worked for long time until it didn't. >> i independent confuse it shameless. the creation of these products

is what i was talking about. the s.e.c. started blessing this stuff. they blessed it incorrectly. the theory was that the stock market is deep enough to handle any of this. we know that's not true, but the s.e.c. hates to admit it made mistakes so it creates this double and triple kind of nonsense we are seeing today we understand that this stuff is bad, we understand that this stuff is reckless. but there are a lot of hedge funds that -- they just can't avoid it they should just go to the track. that's how valuable their thoughts are. >> jim, it has been five years since you coined the term fang for the fang stocks not for fang energy, which is another fang you might like what do you think about the fang stocks now, five years later >> i have to admit, that i had some help from my friend bop lang on coining the term i use the term help leadership

liberally. amazon is up, facebook is up, net application is up. alphabet is only up 183% of course that's a 534% urn are. nasdaq is up 124%. s&p is up 78%. that makes alphabet look okay. fang works that's because these companies have unbelievable growth they are defying the law of large numbers. these are multiple $100 billion companies. i think amazon is going to raise itself to 17 >> jim, jim, jim, jim -- >> yeah, yeah. >> you were a hedge fund manager. you went to law school, goldman sachs, best selling author -- you. >> sound like my mom. >> i know i'm going to get in trouble with this. but compared to the eagles victory, how can you put -- contextualize for the people at home what that meant to you on sunday. >> i cried like a baby i weeped i mean, i had to it was the greatest thing that ever happened. i said to myself, maybe i don't even have to do anything more on

this earth it's with me i'm going back and -- they call me coach some of the players called me coach. i dressed the team at the anyoning of the year it was in july i said listen, guys. we got in a huddle, and i said you must promise underpromise and overdeliver. the whole season you have to underpromise and overdeliver and i said you will go to the super bowl and win the super bowl if they do it what did they do in the playoffs they underpromised and they were the underdog in the game against the falcons. they underpromised against the vikings, underperformance against the pats this is the greatest upod performance i have ever seen >> you have one more thing which is going to $1 trillion in market cap first apple or amazon. >> amazon. yeah, it's -- amazon is just a coiled spring. by the way, it picked up a lot

of bears in the last 48 hours. what do they know? hey, did you see the trucks downtown today i mean all they said to me -- that's when you see the satellite trucks, from the local news what they said to me was buy amazon >> yeah. >> yeah. buy amazon by the way we are so oversold on the the s&p oscillator, four other times we bounced 10% i think this one can last a little when you saw it at 3:47 a.m. when we had the spike in the futures. when you go back to sleep or in my case have the trainer beat the heck out of me for two hours. mark will steen, he was a giant fan when he lived in livingston. all i can tell you is that this market is as phony as baloney. o-s-c-a-r m-a-r -- you get me. >> you know what's real?

the eagles victory and i don't think you are going the take off that green tie for 60 days and you haven't slepd for 60 hours. >> i haven't slept because unless i can dream of the eagles it is a long time to not think about having won the lombardi trophy as carson wentz said, get used to this. >> carson who? >> e-a-g-l-e-s, eagles. >> jim, we will see you tonight. >> fly eagles, fly. >> we didn't even practice that. >> case keenan -- >> what is going to happen to foals, starting for the dprouns mex year jim has an historic day, anniversary of the fang stocks tonight at 6:00 eastern. let's go around the horn what did you buy goldman sachs. the best stock that has been punished too much. it's too cheap and volatility is what they have needed to be a

better company than morgan stanley. >> i bought ember air. >> likes brazil. hates america. >> on the open i watt a semiconductor etf. >> chicago mercken to be when things trade, cme works >> we are not going anywhere we are on deck we are all over the after-hours action remember that, disney, gilead, snap up 20% right now. chipotle all reporting their earnings those conference calls underway. we will bring you the latest numbers and the latest comments on those stocks. >> it may be a ticking tom bo the man who has been warning us about it for months is here to explain what going on. >> bitcoin the crypto commodity crashing below $7,000 bk says there is one thing you

need to know about the selloff, which may be close to being over he will explain a. lot more to do you are watching "fast money," stick warned around. unmanned aerial systems, we're attracting the world's best talent to central new york. and turning the airport into a first-class transportation hub. all while growing urban areas into vibrant places to live and work. across new york state, we're building the new new york. to grow your business with us in new york state, visit esd.ny.gov. to grow your business with us in new york state, directv has been rated #1 in customer satisfaction over cable for 17 years running. but some people still like cable. just like some people like banging their head on a low ceiling. drinking spoiled milk. camping in poison ivy. getting a papercut. and having their arm trapped in a vending machine. but for everyone else, there's directv. for #1 rated customer satisfaction over cable,

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we have an earnings alert on gilead >> the q and a on gilead's call going on right now the ceo talking with analysts. one thing people are trying to get a hold of is the future of

its hepatitis c franchise. the stock went down after-hours. potentially under 2018 forecast. big questionfor gilead of course is how are they going to return to growth and a lot of that could potentially come from m and a. gilead says it's going the repatriate $28 billion in crash this year. a big question people have is what are they potentially going to by. gilead and gel gene have been the most aggressive management teams talking about m and a this year and celgene just did two big deals. gale yad was asked about the technologies he wanted to bring in jeeb editing companies, he highlighted four companies, all between 1.4 and $2 billion in market cap they named blue bird by yoes and spark therapeutics both in one time gene therapy

treatments intercept. they are in liver diseases and biomarin a bigger company in liver disease. these are all names that gilead is potentially looking at. >> we will let you get back on the phone. let's trade it pete najarian. >> we knew what was going on this, hepatitis c was going down we know hiv is strong. international growth is something they can lean on cash is king right now they have got it $41 billion. the kite acquisition is just one. i think we are going to see more. >> i think they missed on the hgb. still ahead, everybody owns them, everybody seems to love them do you know what's inside the etfs you own item item -- tim seymour is going to break down everything you need to know you are watching cnbc birs in business worldwide here's what else is coming up.

>> mom dad. it's evil. don't touch night that's what a number of investors are say being leveraged etfs and you would be surprised what's lurking in your portfolio. i'll explain. plus w bitcoin crashing, what are some of the biggest crypto ballers doing at a bitcoin conference holding their you know what off in cancun. and we are live on the ground to hear why original crypto baller brian kelly isn't worried. when "fast money" returns. chwab? index investing for that low? that's three times less than fidelity... ...and four times less than vanguard. what's next, no minimums? ...no minimums. schwab has lowered the cost of investing again. introducing the lowest cost index funds in the industry with no minimums. i bet they're calling about the schwab news. schwab. a modern approach to wealth management.

i thyou never got the brakes looked at?l... oh yeah. no. at cognizant, we're helping today's leading manufacturers make things that think and do automatically. imagine that, a world of new digital products and services all working together for you. can i borrow the car when it's back? get ready, because we're helping leading companies see it- and see it through-with digital. welcome back to "fast money. judgment day for volatility may be upon us maybe it already because the fear index spiking sending an obscure but popular investment vehicle crashing, all but wiped occupy we are talking about the inverse xiv exchange traded note it was a bet on lower volatility which collapsed last night after the vix went crazy

let's go to the new york stock exchange and bob pisani. traders who traded this needed an iv. >> exchange traded note. it is an debt obligation from a financial company like credit swiss or goim. they are tied to an index or a benchmark like the s&p 500 or a commodity or a volatility index. many are leveraged if the index is up 1% you will get 2% others are inverse if the index is up 1% you could lose 1%. like the product there is a fundamental difference between an etn and an etf. etn investors don't own anything assets nothing. the etn is backed by the credit worthiness of the credit issuer. the etn world is small

as compared to efts. many cuff assets classes that were not able to be held in efts etns are -- the s.e.c. and the sfpc repeat lead warned about leif rans and inverse products, many of which are etns the efts community is also concerned. they tried to get ahead of the problem with this statement here inverse and leverage exchange traded products are not efts they don't perform like efts that's why black raak strongly supports a regulatory classification system that would leverage an inverse etp, inverse traded products differently than plain vanilla efts in order to

clarify for regulators and investors the risks associated with those products. the bottom line is the eft community has been taking in oceans of money for plain vanilla efts and they don't want any kind of other aspects of this business to get in the way of those oceans of money that's coming in. >> they can try that but you have got acronyms out there. and if you are a retail investors it's easy to say that's one thing and that's another. you do got lumped in babb pisani. appreciate that. >> guys let's trade this you can come out like black rock and say efts aren't etn or etps, whatever it is a wake up call to investors. be careful. >> everyone should take accountability over what they buy. if something is called an etn, you should find out why it is not an eft i know that sounds obvious there is no such thing as free lunch. it means at some point you are

paying for the leverage. you don't hold a lowle vol eft prefr. >> this was a $1.1 billion product. that's not a lot of money on wall street. we look at if it didn't do all the damage it contributed to a lot of of the damage, right? this is one thing that did all of that. it has a 171 page prospectus according to leslie picker and here we are one day later and everything is fine. >> we have all become -- >> nerd. >> ph.d.s in the fine print. >> xivs. >> the real question is is this over, is it ended now with the death of xiv >> that's the only question. >> of course not feet and i will go back and forth. he is probably right, vol will trend lower but in the low to mid 20s that's much higher than we've seen over the natural course of events the last five years. >> i think it's just a time frame, too because over a short time frame yeah we can be up in the 30s

again. i think if you extent that out a little bit, i'm only talking weeks, we are going to find ourselves back in the 20s consistently, toer less, rather than going into the 30s and trading higher than that one thing about the volatility index. it is a measuring stick. i never trade the volatility index. i talk about it every day. i trade off of that through the ciders the spy, the s&p 500 i trade that and look at the volatility index only as a measure. >> the ixx is up up next the man who has been sounding the alarm on volatility marco, the director of quantitative stroij at jp morgan is this over snrks this volatility laden giant moves up or down done >> we put out a note yesterday and we basically said the worst of the selling, which was coming

at the back of the hedging of s&p index options and to some extent some of the products that you mentioned we think the worst is over. we will say volatility persists it's not going to disappear but this is the time to get into the market we think fundamentals both on a corporate side as well as on the market side did not change as well we see this more as a technical market glitch that will have some sort of repercussion force volatility, meaning have tilt is going to stay a little bit elevated but it's time to step into the market, prime opportunity to buy. >> marco >> yeah. >> why do you think this relatively small instrument -- maybe it wasn't blamed or responsible for everything -- $1.1 billion, that's nothing in wall street parlance why was that able to do so much damage i don't think actually it was the sole drive of it i think it was one of the contributors i think the bigger exact was from hedging of whole s&p index options. you know, keep in mind clients

tend to buy put options market makers tend to sell put options. when the market falls there is a rush to hedge that if those calls become large it can overwhelm the market it can overwhelm the liquidity of market makers what we saw today, at 3:10 du was down 6.5%. basically liquidity disappeared. electronic market liquidity disappeared. the vix issue and etn issue oound compounded the problem my guess is some dealers or hedgers tried to proxy hedge futures with s&p vix futures twang as smaller part. it was one of the more dramatic moves when you have a wipeout of a product and the vix futures going to 38. i don't think it was the only driver i think there were a few them. >> it's tim. first of all, great call on this i think you were right there with this. in your note you also point out the payroll numbers, it boosts

up the realized vol of the market that's a fuchk of what the centralized banks are doing. why doesn't this continue to haunt us >> i personally believe bond yields moved up. if you look at the bond speculation, numbers for bond speculation short, they are at record highs i don't think we will see a linear increase in rates i think rates may stabilize here in 2011, 2010. we had yield 3.5%. we had weaker growth i think people should put all these things in the context. i don't think the inflation scare or such, this is more a technical glitch, systematic strategies, ctas did start selling sort of yesterday midday that compounded as well. you had the volatility hitch and the gamma hedging dloez that overwhelmed electronic market makers we have this electronic liquidity when things get bad they pull liquidity quickly.

that's similar to what happened in august of 2015. this happened in the middle of the day. in 2015 it happened before the market so it looked worse. but essentially the same thing happened. >> there was a great scene in the movie airplane which i won't get into but i happen to speak new yorka. let me synthesize what he just said he said there is no systemic risk here. it seems to be a two day event that could extend a few days more but we shouldn't be worried about the last two and a half days of trading. is that correct. >> basically that's correct. >> don't agree with him. >> he said basically, you are partly wrong. >> i think the volatility complex, the s&p complex, that is done. and that's probably the biggest punch to the market. you will see some sort of aftershocks because we talk about the volatility targeting funds. when volatility goes up they need to slightly derisk or

derisk at the same pace. i think these outflows could persist for a week or two but we don't think they are big enough to further crash the market. and we think the strong fundamentals both on the corporate said and on the macro side will draw in investors who went equity exposure here. so we think probably the worst is behind us. >> marco, we appreciate that i'm sorry for butchering your name at the beginning of the segment. and at the en. >> and at the end. you know i'm good, but i ain't perfect. >> when you stop laughing why don't we get serious and trade >> one thing i'll say, what is being about the move, you think the riskier asset classes would be underperforming eerge inning markets outperformed and broke higher on what has been a long term trend of their rebounding back despite this risk off environment riskier asset classes have actually come back very well. >> tom thank you pat.

>> what we continue to see over the last couple of trading days is people rolling down people have been expecting a little bit further push to the downside, including today. despite the fact that we are up 500 points to finish the day, there were points during the day where it looked like we were going lower. i think we are still going the see lower lows than we've already seen and people are going to shake a little bit but that's okay for now. >> i would add one other thing, when there is a lot of uncertainty, nobody one can put their finger on why this happened the market traded detectivecally look at the russell 2000, where it bounce of the 145 s&p bunsed at 2600 there were levels that were prior breakout levels, prior support. it kind of held there. so you may have a one step forward. >> in the final two hours, the acceleration of margin calls you watch the acceleration of how we dropped, it was absolutely perfect yesterday the way it worked. >> bar close saying they think

there could be $225 billion in leverage sold if we see volatility spike up. if something to watch we have seen the spike in the vix. the options market seems to think the surge in volatility is go to simmer down a bit. dan what did you make from today's action. >> when you put jim cramer's comments about the xiv, what kind of hedge fund manage remembers betting on this environment of short volume, he said they can go whatever this trade in the vix was interesting. it was a massive trade total volume in the vix was three times the average daily volume a big chunk of it came before 11 oeb today when a trader exited a long vol position in the vix let me tell you exactly what they did it was a march expiration. they sold to close almost $250,000 in the march 15.25 call spreads. they told them at 3.25 and they bought to close $350,000 of the march 12 calls to puts. it has been a popular hedge fund

trade where they sell at downside to buy call spreads they do it for little premium and they have upside exposure this trader took the opportunity on the vol pop to get out of this trade. >> for more "options action," check out the full show at 5:30 p.m. eastern time with dan dpan and some other guys. do you own an eft? odds are most of you out there do how well do you know what you are buying tim seymour has three simple guidelines for eft -- that's four. >> that's four, tim. >> marco, be careful. >> he is going to help you save a lot of money later on in the show. two big after-hours movers include disney and snap. snap by the way surging. we are going to hear from the kroets of th cbeoming up after the break. >> that was dangerous. oh, and there's the closing bell. (sighs) i hate missing out missing out after hours. "options action" is sponsored by think or swim by td ameritrade

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♪ i say whip it. >> devo. >> welcome back to "fast money." it is time for another earnings whip disney and snap reporting their numbers after the bell today both of those stocks on the move in the after-hours session disney rallying more than 2% snap chat snapping up more than 20%. and we have got a dynamic duo breaking down those moves. julia boorstin has been on the tabs with disney

what did the ceo say about the quarter. >> it beat expect ragss thanks to parks and resort divisions which benefitted from higher attendance here in the u.s. and as well as higher consumer spending plus it saw higher growth in kroous ships in disneyland paris. bob iger also talked to us in a way that gave investors to be confident about challenges to the network decision and espn in particular saying dakotaal distribution is helping to compensated for cord cutting and subscriber declines are slowing. he said he is seeing signs young people are coming into the tv subscription service that many people thought were cord nevers and they are adopting packages like hulu's new tv service, over the top service, the fact that it costs $39 he says is proving appeal to that younger generation he says he sees that as a very

good sign especially considering the fact that espn and all the other disney channels are in those services as well iger involved details of the company's direct to consumer app, announcing that espn plus which will launch this spring will cost $4.99 a month. >> sometime in the spring, we are going to launch a completely revised and basically redesigned espn app that will include an array of live programming that is not available -- live sports, live sports events, not available on the current channels and that's by the thousands. >> one interesting other announcement from bob iger he just announced that the upcoming marvel film, back panther, it launched friday, he says ticket sales are outpacing those of any other super hero movie ever made. >> i know there is a lot of optimism about that movie as well it looks fantastic julia boorstin thanks very much. disney, not the greatest

performer in the last couple of weeks. anybody here buying it >> they deserve a premium valuation without question the question is what is the right valuation? i think it's too rich. eps beat, revenue miss, that's been disappointing for quite some time. are people going to spend 5 bucks on this app? i could watch contradict on my regular screen i have no idea if it works. >> wouldn't you say these guys deserve that premium, their effective tax rate comes down probably five points disney is the one you go with here. >> and they have growth. when you look at the parks that is impressive. some of those numbers are bigger than people expected >> stock 8 1/2 off of its 52 week high. >> let's go to snap. dreer contract >> yaend earnings per share and

revenue beats. its ad trags making an important transition here's what even speigle just said on the call. >> our advertising business changed profoundly over the past year as we migrated the sale of our snap ads to an automated auction. over 90% of snap ads were bought brat programmatically for q 4 which means that the augmentation for snap ads is largely behind news the auction based model is what going cell and facebook use for it to work, snap is likely attracting more advertisers. that's what's important there. back over to you. >> deirdre, thank you very much. appreciate that. guys, snap, obviously maybe a little short covering happening? maybe a lot? >> i think for now that's it i tell you why a lot of investors were worried about this redesign of the app you saw they haven't fully rld it out it's going to be rolled out by the end this quarter but the fact they used as many daily active users as they did i think is a great sign. and now that they have this

programming advertising shift this could happen all at once. >> rpu was impressive. to say this is all short covering and they are done this is back to the ideal price. >> there is five buy ratings, 18 holds, 11 sells. what i'm saying is there is more upside. >> [ overlapping speakers >> the way you presented it it sounded like -- >> it is done. it's done. they put a low in here >> giddie yup, dan >> giddie yup, dan. >> shortage ratio is 1 reasonably high. snap chat, we are keeping it we played whip it. >> devo, devo. >> dennis gartman went to high school with devoe. they knew each other. >> class of 1938 >> you can see that. >> coming up, bitcoin -- bitcoin has gone bonkers, surging more than $1500 since the lows early this morning has it finally found a bottom?

bk, brian kelly will join us from an undisclosed location. plus, do you think you know what's inside your efts? think again, because tim seymour who just want to be on camera constantly tonight. >> as much as i can, brooib. is going to give you some stuff about some other stuff right after this break let's create jobs, build bridges, insure prosperity. as investment management professionals, let's measure up. cfa institute.

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while all of this has been going down, where has our resident crypto baller been for the last couple of days we decided to track him down using the find my iphone function he is in sunny cancun mexico at a big crypto conference which for some reason is in cancun bk you have been at the conference presumably a couple of days. obviously we are coming into a slide at $10,000 or so what is the mood what is the feeling? what is the sentiment around bitcoin? >> listen, i mean i understand you guys in the equity markets might have experienced volatility in the last couple of days welcome to the crypto world. that's what wits' like here. the mood here is still optimistic there is about 175 people here that are some of the smartest people in the world that are building the products on top of the blockchain bitcoin ethereum and those other protocols.

and they are very optimistic about the future yes the price has come down. yes, there has been eforria and panic. but my perch, nothing has stopped. the development hasn't stopped the institutional interest hasn hasn't stopped in terms of the catalysts going forward. those are all still on track. understand the optimist. the cleveland browns sell out the stadium every year and they have a tough year seemingly every year. >> year. come on. >> i'm complimenting cleveland. >> oh. >> if you believe in something, you stick with it. the crypto buyers obviously believe nitd they stuck with it but people have been bruised i'm sure what's the other side. >> of course >> there has to be some frustrati frustration. confusion. what >> of course the other side of it is that people that had xa. dollars three weeks ago to build their product only have half of that x at the point in time. there is still plenty of money going around

it's not to say people aren't bruised. not to say that people haven't gone oh, my god we are at $20,000 and now we are at $6,000 frankly, we do this every night on the show, when there is panic, when there is blood in the streets that's the time that investors and speculators need to come in yes it's brutal. horrible now is the time to be getting in -- >> do you think the hearings were a win for crypto in general today brian. >> no question about it. they were able to home run today. you couldn't have asked for more from the missions. they were reasonable they say this is a new tech noolg we don't want to stifle innovation but at the same time we don't want people being defrauded. exactly what we want our regulators to do absolute home run. green light for the space. >> investors feel like it's 1995 developers feel like it's 1998 point out what that difference means. >> i'm glad you pointed that out

tim. that was the one takeaway from this, is that investors are saying we are going to build all these things, the next facebook, the next amazon on top of this and the developer is saying hold up, folks, you know, we are still at the stage of the f-80 we are barely out of the arounda net era of the internet. we are still building the tools that somebody like mark zuckerberg is going to build a fake on. now that everybody in main street and wall street are in, i think they are ahead of the developers >> have fun down there. >> i will bring you back a opinion yachta. >> bring that toby letter own you brought from switzerland more than one. >> one >> on a serious note there will be equities that have

been correlated the overstocks of the world, the riot, block chains of the world they are getting walloped >> forget about the equities let's talk about the cryptos it had a moon shot in november and december and then has crashed. we have had guests on every night for months i don't think we have had a single guest who you go to issed that you should have more than 5% of your investible assets in these sorts of things. when we are talking about the pain it's not likeyou are seeing your fang portfolio going down 10% in three days this should be a very small part of your investible assets. to me, i don't see that argument. >> still ahead, they say that you should own what you know but that's always the case when it comes to efts and other products like it how do you know what you are really buying? tim seymour eventually is going break it all down for us when "fast money" returns

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welcome back you think you know what you are buying when you invest in an eft. you might want to think again sometimes because they are not all as transparent as they seem or the name implies. don't worry, tim has got your back three simple guidelines in eft investing, a segment we call, the more you know. >> thank you brian it's really important to know your eft we've talked about what's going on in that space three bullet points. waiting. is this an market cap or equal weighted eft when you think about the eem, ten september and baba are on top. they are the biggest names the

index. ori or is it weighted straight across >> active versus passive will they adjust daily we can lee, monthly, you name it. and when you look at the description page or the fact sheet of an eft you have typically looking at the fees and what this will cost you. those are come down like most fees, and how much liquidity is there. how big are the components of the market cap that make up where this thing is going. let's give you what i want to bring up, the srt, it covers the retail secretary offer it has a run through it pulled back like everything else the question is what do i want to own in the retail space we bring up this eft because ultimately you have to know

what's inside. this is a bit of a misnomer. when i think retail i think i'm going the macy's, walmart, home depot when in fokt fact those are not the components this eft. doesn't mean it is a bad eft in fact it's diverse but what is in here, shutter fly netflix. netflix? well, maybe. cole's that's the point know what's inside the eft and that'sor wk you should do on your own before you by. >> and that's one to grow on up next, final trade

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pete, final trade. >> goim. >> baba is oversold. get in there. >> stay with intel. >> alibaba, intel. guy adami? >> 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 so call me at 1-800-743-cnbc or tweet me @jimcramer. was this the bottom? not so fast. if yesterday's decline on the