session, closed up just 46 accelerated selling after the fbi raided the office of president trump's lawyer michael cohen. nvidia shares spiking after they upgraded it's plunged 12% in the past month. up 2% today. michael, we're owl of time. >> we'll do it again tomorrow. >> we'll do it again tomorrow if they let us. that does it closing bell. "fast money" begins right now. "fast money" begins right now. overlooking new york city's times square, i'm melissa lee. your traders on the desk are pete najarian, brian kelly, karen finerman and guy adami mr. zuckerberg goes to washington, getting ready to face the heat in congress tomorrow and wednesday we'll tell you what it means for the stock. plus, the crypto crush rages on if you're getting wrecked, don't worry. brian kelly has the one coin he thinks is going to break out first, we start off with a stormy session for the market. the dow surging 400 points the highs before selling off hard into the close this as it was revealed that the fbi raided the office and hotel

room of trump's long-time lawyer michael cohen. for more on this developing story, let's go to aim eamon javers for the details. >> she is not going to have any comment at any time soon here on the search warrants executed by federal law enforcement officials on michael cohen, the president's personal attorney. but we do have a statement now from michael cohen's own attorney whose calling into question some of the tactics here used by the fbi and federal law enforcement, saying the decision by the u.s. attorney's office in new york to conduct their investigation using search warrants is completely inappropriate and unnecessary. it resulted in the unnecessary seizure of protected attorney client communications between a lawyer and his clients now, we don't know the extent of this raid, exactly what materials the fbi agents gathered, or even what exactly it was they were looking for but you can presume that this -- a raid of this magnitude would

not have been signed off on unless law enforcement officials were confident that they were hot on the trail of something significant. the question is what is that and how effective will these arguments be by the cohen attorney and cohen's legal team that this is attorney-client privilege material between michael cohen and the president of the united states donald trump. so all of that to be sorted out. we're just in the first hours of this story here, and we'll wait for some more information as the evening goes on, melissa but right now we do know that those search warrants were executed at michael cohen's office, and we do know that his attorney is saying that some of the material gathered was inappropriate, melissa. >> is it presumed, eamon that this is all in connection with the investigation into russia or perhaps other charges or other allegations may have emerged >> well, we don't know what we know is that it's been reported that this is a referral from the special counsel's office, robert mueller's office, referred this to new york authorities who then took the steps that we saw unfolding this afternoon. what we don't know is what exactly is at the heart of all

this, whether this is something that was key to mueller's investigation or some other matter that they came across during the course of their investigation and said you know what this bears some looking into we've got to refer to it federal authorities in new york. >> eamon, thank you. eamon javers, i'm sure he'll be on top of the story as the evening progresses the drama in d.c. seems to be reaching a fever pitch the chaos derailed stocks. we saw the interaction today, guy, to this development. >> i think your question hit at the heart of it. i don't think the market cares necessarily about president trump's relationship with ms. daniels, i don't think that's anything to do with it but what the market is concerned about, does this give president trump the ammunition or does it put him over the edge in terms of what he'll do with mr. mueller. if he fires mr. mueller. that's what the market is reacting to. i have no idea if that's under consideration. but to me that's what the market reacted to today market on friday held very critical levels. had a miserable day friday, but it held exactly where it needed to technically and today the follow-through was

outstanding. and we've been talking about that right now except for this so what does it mean it means to me there is still the key level in the s&p is 25.80. and we'll see if we protect it tomorrow >> agree this could be something really big. we don't know. >> right. >> but one thing to me that was interesting, even earlier in the day, before any of this happened, before we saw this and the market was up a lot, vix was still very high. why is that? because we've had such volatile sessions even so a rise like we had today -- that was a signal to you, a warning line perhaps. >> yes >> i was watching the currency markets all day. you saw strength in the yen and weakness in the dollar and that had occurred well before this raid happened. so then you look at the bench you. start to put those dots together and there was certainly under the surface here a risk-off type of tone, risk-off signals going on, and this was kind of fuel on that in my view. >> i think until we get back to the markets and it's more

focused on mr. trump and what's going on in terms of the oval office and some of the decisions and the tariffs of last week that we're going back and forth between the united states and china and all of that, when we get to the facts, when we start getting to the earnings again, then i think we'll start to see some of that vix come off. but i was sort of a little bit surprised, but at the same time, we were up 440 points today. that's a pretty magnificent run to the upside. when you look at the kind of move we're talking about there, it actually makes sense that volatility would maybe stay in the market as opposed to everybody else in the world, i understand the vix i think as well as anybody and i can tell you this. when you get moves that are one and then 2% to upside, the vix is going to start to show some of that. it doesn't always go down because the market is going h h high. >> would you call it magnificent rally to the upside? it was also magnificent loss to the downside today. >> it was a -- i think if the market was open another 45 minutes or so, we would probably be talking about the market

closing negative on the day. karen actually said they better close it soon or this is going to be red. it was equally magnificent to the downside again, put into it context the low we saw in the s&p was 25 or 35 or there about a month or so ago we really haven't tested that level again. it is the level in the sand. despite all the gyrations we're seeing, the market has held critical levels. now, i don't know what tomorrow brings, clearly, what happens overnight. and if mr. mueller is fired, i think that's catastrophic for the market but until something like that happens, at least you know what you're trading against. >> i will say this earnings can't come fast enough because we've got get the focus back on the markets and what's going on with the markets. it's been on emotion it's been on politics. it's been on everything but it's not really been about the fundamentals of what we see within the markets going on right now. the earnings season i think is going to be something where if the growth is anywhere close to what people are estimate:00 it to be, that should be a pretty impressive quarter. >> it will be interesting because president xi is going to be speaking at a forum tonight

correct me if i'm wrong, its first time he is actually responding to what has gone on in terms of the tit for tat, et cetera. >> in public. >> in public, right. >> we'll see what happens there was some reports today that perhaps china wasn't going to buy u.s. treasuries. and of course this is all ju posturing. >> there is a report they had already stopped. >> and the devaluing of the yuan >> it's hard for them to stop buying treasuries. i would discount that report the release valve is the devaluation of the currency. that's kind of the nuclear option for them. and we'll see if he hints at it that could royal the currency markets. >> and quickly, the last time we saw that in a meaningful way was august 2015. and by february of 2016, the s&p had traded down to 1810. not suggesting, just for context in terms of what it means to the market. >> for what all the drama out of d.c. could be for the u.s. market, let's bring in jonathan begala good to have you with us. >> good to be here. >> certains season going to be

the magic bullet for the markets? >> i hope it's going to be the magic bullet and we don't talk about trade anymore. i do know one thing. this is going to be a really strong earnings season it's going to be a bit confusing because of this tax stuff. not only big in terms of growth, but the beats are going to be much larger than normal. >> so we sort of know that key one -- q1 is going to be a good quarter. are you as confident about q2 given the uncertainties that we are seeing in the markets? >> if you look at analysts' estimates are, they're for somewhere between 17 and 20% upside for this year versus last and even if you strip out, you know, 7% benefit from taxes, this is not the credit suisse phew view, but the broad market view, something like 13%, 12, 13% upside ex-taxes in year 9 of a psychle? it's unbelievably strong on this quarter, every single sector is supposed to deliver

pretty solid revenue growth. not a single quarter with down revenue growth in the beats of the early quarters are coming in at something like 8 or 9% which is very, very strong. >> so you're talking about a very strong fundamental background. >> yes. >> we just spent the last few minutes talking about external nalts, talking about investigations that may or may not be coming to fruition or something like that. if we get a headline and the market is down, the s&p down 30 handles, is that a massive buying opportunity going into eschings >> i think it has to right now everybody talks about the market being expensive but the market is like a 16 multiple on a forward basis. the market was at 18.5 in january. so the market is on sale and if you smack this thing down any further, especially tech stocks i mean they're on sale when you consider the fundamentals. unless something really goes wrong with these names, you got to want to buy them. >> what are you thinking about for the fed moves this year and

how that's going to affect the market >> you know, the official move, the official read from credit suisse is that we're going to have four this year. and i think the view is that wage inflation is ultimately a problem. you know, if you look -- and i think the key thing to focus is what's going on with the economic data out of europe and elsewhere, which is a tiny bit softer and if we start to see that continue, it may be three. but i don't think the fed is any desire to put cold water on this thing, especially interest rates now are at 20 basis points on the long end of the curve. the fed is not going to want to even give any inclination to want to flatten out that curve or invert it if the long end softens up, the fed is not going to do four. >> here is a question that has really been gnawing at me for the last week and a half or so >> that's painful. >> it is painful because i think it's a real question that everybody is grappling with in one form or another.

when strategists like yourselves or economists come on and try to predict the impact of what a trade war, it's affecting these sectors, it could wipe out this much in gdp. a very surgical view what we've seen in the market is everything sells off across the board. it's not a surgical view so what makes you so confident that it's not going to have an impact >> if we have a full-blown trade war, first of all, this belief that you sell surgically, which companies are specifically associated, forget about it. you want to sell something sell the banks interest rates are falling the market going to start reading a recession concern. the question is how likely do you think that we're going there? and i think the answer is not that likely. but if you -- if you really think this is going to go bad, then sell the market and you want to be selling the most -- in the highest volatile, most speculative stuff. and the banks are a big loser. but i don't think we're going down that path. >> all right, jonathan, thank you. jonathan golub of credit suisse.

>> sumplt. >> we talk about the markets going higher >> and that could be the explanation for this very well. or you could see the declines in the semiconductor sector and say you know what? semiconductors, they get about a quarter of their global revenue from china and if there is an inkling of a trade war, that's going toe hit them really hard sell that sector first. >> you've seen what happened to evaluations. intel was having a marvelous day at one day, closed lower on the day. i think technology wants to go higher, but it keeps getting sort of hamstrung by all the headline risks that we're seeing. >> yeah. >> well, forbe me, i'm looking for that flush that's why i asked jonathan the question you've got great fundamentals. we've had the market come off. unless you think we're going into a recession over the next several quarters, then any sell-off, and i think maybe 2500, and i know that's a big number from here, but i think if we got something like that, 2500, that's where i want to be buying this market >> how are you feeling in the

risk tolerance meter >> i'm a little -- a little bit nervous. i actually would prefer to buy on a day not down 2500 then i would be crying under my desk but i prefer to buy on a day where we're down 500, maybe. a day like today, i don't love to buy on a day like today that's actually a little scary to me. to your point about surgical, i totally agree. it's much broader than that. it's getting back to we don't know what policy there is no certainty anymore. and one of the things that made the trump trade so successful was much more clarity on business regulation and taxes. and if we go back to uncertainty, that's bad. >> you know, there is always something you're looking for and you're looking for an opportunity. and i would tell you that the only thing i bought today, but in the last couple day is bought other things i bought ibm last week i bought hilton last week, some polaris. but the one thing i did buy today with conocophillips. we've had people get up on the board and tell us it's time finally for energy whether that's true or not, i'm not sure but it seems to me that you can

still get great yields you've got great companies that we think are some growth there, and it's going to start to could back because of, that i like a make like conocophillips. >> coming up, it is a moment of truth as mark zuckerberg arrives on capitol hill for two days of questioning. we'll bring you the latest plus, pot stocks getting hit. why is this one stock going up in smoke tim seymour joins us from california where he is doing some on the ground research with a special report crypt cosector is looking a little break, but brian kelly with the one sector he thinks will be a breakout he will explain. you're watching "fast money" from times square in new york city back right after this. we use our phones and computers

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you can get up to 5 lines of talk and text included at no extra cost. so all you pay for is data. see how you could save $400 or more a year. and get $200 back when you sign up for xfinity mobile and add a new line of unlimited. xfinity mobile. it's a new kind of network designed to save you money. click, call or visit an xfinity store today. welcome back to "fast money. we've got breaking news on verifone kate rogers is in the newsroom with the details kate >> the payments company soaring up over 50%. this on news that it's going to be acquired by a group led by p.e. firm francisco partners the deal is worth $3.4 billion or 23.04 in share. that represents a 54% premium to verifone's closing right all cash, $3.4 billion and the stock, as you can see, is up by more than 51% right now. back over to you, melissa. >> all right, kate, thank you.

kate rogers. let's go to karen, you used to own this stock. >> i used to be short this stock. >> oh, short >> way back when i haven't looked at it in a while. i like the payment space they do if you go to various retailers, you may very well use a verifone machine or taxi cabs. it's interesting private equity, that's interesting. i guess for the names that would be up on the heels of that would be ingenico or ncr which also has that kind of technology. >> or maybe extrapolating a little more something like a square in that they're providing terminals as well. so it bumps that valuation up a bit. that's where i would look tomorrow. >> square's valuation is already super high, right? >> bump it up -- in other words saying this is a 30, 40% in the after market. >> that's true all right. >> and they're coming off -- the guidance look for the next quarter wasn't particularly fantastic. but it's interesting what is deal book? who does that? andrew sorkin. i think earlier this month they had a little piece maybe elliott

was interested in taking a stake. just throwing it out there now obviously this comes on the heels of that ars. >> cutting edge. >> cutting edge. >> that was behind the scenes. >> ooh >> we haven't seen him file yet. >> all right shares of facebook in bear market territory, down 19% so can mark zuckerberg convince washington and wall street that the worst is over for the social media giant? top technician will weigh. in i'm melissa lee you're watching "fast money" on cnbc, first in business and worldwide. in the meantime, here is what is coming up on "fast.." >> dead dogs how do folks feel about the airlines now >> please, sir, i want some more. >> they can't get enough and it could spell more gains for airline stocks we'll explain. plus, brian kelly says he may have found the next crypto coin to break out. we'll give you t ne heamand tell you how to profit, when "fast money" returns

welcome back to "fast money. stocks selling off into the close when it was revealed that the fbi raided the office of michael cohen. bertha coombs is standing outside trump tower in new york with the latest. bertha >> melissa, and we are told that fbi investigators are continuing to search his personal residence at the loews regency hotel, which is about ten blocks away from here. meantime, what we know is that they conducted several raids using search warrants, although mr. cohen, his long-time attorney and attorney here for the trump organization -- mr. cohen's personal attorney called the searches inappropriate and

serving a search warrant inappropriate. the fact that investigator seized what he said were personal privileged communication between mr. cohen and his clients. sources say when a judge does issue a warrant, clearly that jurist found probable cause to issue that and that case was referred here to the u.s. attorney forethe southern district to issue those warrant. mr. cohen, of course, as mr. trump's personal attorney admits to having paid $130,000 of his own money to an adult film star known as stormy daniels, also known as stephanie clifford. so we will see what comes of this afternoon, as we're told, melissa, right now investigators are still searching his residence. back to you. >> all right, bertha coombs, thank you very much. i was just checking president trump's twitter feed, thinking maybe he might chime in on something. but if we are too extrapolate

this to its worst case scenario, what would that be >> worst case scenario i think is president trump, if the mueller investigation has anything to do with this, i have no idea. but if it does, president trump gets exercised enough to say that the special investigators overstepping his bounds, and i'm going to fire him that to me would be, i'll use it again, i think that would be catastrophic to the markets that's a huge leap if you're asking me what's worst case that's worst case. >> at the very least, this shows you how sensitive the markets are to any sort of headline about volatility. >> absolutely. yes. and the volatility that remains in the markets even on a day where we had such a move to the upside, the volatility did remain in the market to guy's point, that would be something that would i think shake the markets a lot more than what we've seen already in the last week or so. >> wouldn't you want to be a buyer on that? >> yes >> well, there we go, right? there was an entire sell-off has been based on the idea that there is no strategy, there is chaos. that every single day we wake up

and there is something new and we have to worry about it, it seems to me that we're coming to the end of the mueller investigation or we're coming to the end of something else. let's get to the other major story of the week, and that would be facebook ceo mark zuckerberg arriving on capitol hill today ahead two of days of testimony that kicks off tomorrow kayla tausche is in washington with the latest. hi, kayla. >> hi, melissa mark zuckerberg began the washington leg of his apology tour with high stakes meet and greet with the top lawmakers on each telephone two senate committees that are going to be jointly grilling him tomorrow for several hours. he wrapped up those meetings just a few moments ago, five hours in total, four meetings in all here on capitol hill we asked him how he felt those meetings went. he didn't answer any of the reporters' questions but earlier today senator bill nelson, a democrat from florida gave his reaction. >> my personal opinion of him was that he was forthright and honest to the degree that he could.

but i think there are going to be a lot of challenges for his company in the future. >> some of those challenges will be regulation, which no doubt will figure prominently in tomorrow's and wednesday's hearing, which will take place on the house side. certainly there has been regulation proposed in the past. it was primarily by democrats, and it has since stalled but it could be costly for the company. on top of costs that the company is already incurring trying to brace for washington's potential scrutiny in trying to sort of be proactive to make sure that the data breaches like the cambridge analytica situation do not happen again in testimony that zuckerberg prepared for this week on the hill, he said "i've directed our teams to invest so much in security on top of the other investments we're making that it will significantly impact our profitability. to what extent it will is unclear. he said there will be 20,000 people at facebook very soon working on security. but of course, melissa, all this

week all eyes are going to be on zuckerberg himself >> absolutely. cale lab, thank you. kayla tausche. and it is facebook's judgment day as zuckerberg's testimony over the next few days could prove to be the ultimate moment of truth for the social media giant. wall street will be clinging to zuckerberg's every word. facebook down 19%. and more privacy concerns piling up will zuckerberg be able to convince shareholders that the worst is behind the embattled social media giant and ultimately save face -- facebook pete, i go to you. what he could say on capitol hill may be aimed at allaying the concerns of senator. >> yes. >> or congress people, but they may not geared towards allaying the concerns of shareholders. >> right. >> they're completely different messages he needs to convey at the same time. >> and the idea of what will this truly end up costing facebook in tend >> yes. >> i know karen was talking about that we talked earlier in the day your numbers it seems like might be little smaller numbers than the numbers we're talking about just now

because 20,000 employees and that type of thing, and how it could significantly. pack the earnings. that is something i think we have to keep in mind but i think the idea that the stock is $30 or $35 give or take off of where it was just a month ago before all this happened, two, three weeks ago, actually, it tells me that is a lot of this has been priced in up to this point. >> in the release testimony today, he said currently there are 15,000 people who are working on facebook in connection to security and reviewing content built. the end of 2018, that's the number kayla was referring to, there will be 20,000 people. so there will be an increase of 5,000. i'm not sure if that was already accounted for in their operating budget or not, or if this is on top of this since this whole cambridge analytica thing happened they always give a number that is way too big there is constitution there it's okay if they have to spend

more in order to accomplish that, because they always give us a bigger number than what it actually >> right i do sort of because when you look at the business model, the margins here are extraordinary. so the number one thing is revenues revenues so outweigh anything on the cost side. so really, the question is what happens to the revenues to me, not nearly as much as what happens to the costs >> they can hire as many security people as they want but if you've lost the trust of your consumer, the person who is using it, then the data that they have may not be as valuable as it was before this. people may not want to give that up there might not be as many people. i agree. it's not about expenses. it's about revenue that's the part i would be concerned is how much of their current business model which is an advertising business model is broken and what needs to change. >> i agree with that but on the conference calls, whenever they gave a number that was bigger than what analysts had expected on spending, that's what torpedoes the stock in the after hours.

>> you can question every movement of the stock. >> reading off the word. >> your question hit the nail on the head i think the happier people in washington are by his testimony in some ways the worst could be for the stock. >> yeah. our next guest called the facebook breakdown even before the big data scandal broke. >> it's been in this well defined channel. and we've really broken down often after breaking below a channel and then throwing back to the top of the channel as it's done. it typically hits its head and then does that i'm a seller of facebook here. if you're long and have great gains, take your money off the table. >> what a call and says to brace for even more pain ahead hey, carter. >> hi there you're kind to remember a good one. i've got my duds, plenty of them but thank you. let's figure it out from here. i thought we'd just look at all serious drawdowns in facebook since it ipo'd in fact, if your first day in

life is right away a stumble, that's usually trouble it ipo'd on the 18th of may, 2012 and out of the gate dropped 43%. rallied back about 30% and did it again, another 48%. these are peak to trough draw downs. you see it again in 2013 let's keep going to put this current one in perspective here is our current sell-off, 24%. the issue is, is it finished they typically are sort of five to ten weeks this has been eight. let's look at a few charts and try to figure it out together. here is the chart of facebook since its ipo. the lines draw themselves. i didn't manipulate anything here are the drawdowns each one as discussed. so is the 24%er, it's not as bad as others. but it's a bit more than these two here so let's put the trend lines in. that is the exact same chart and the issue here is are we at

risk of breaking the lower band of the channel that the stock has lived in its entire public existence? i think so and here is what i think the tale is for that one, we know two-panel chart facebook's relative performance to the s&p even as the stock was going higher, its relative performance, stock higher, its relative performance started to stall, and now it has broken trend. let's do facebook to consumer discretionary. same circumstance. even as the stock went higher, it's relative performance stalled out now has broken trend. one more and this is now facebook compared to tech sector. same circumstance. same stall in relative same break to the downside is that the case for all tech? no tech, in fact, and going with this chart, sheer tech

tech on the top relative to the s&p. not only has tech stayed in an up trend, its relative performance has stayed in an up trend. facebook's problems are idiosyncratic. i think it's highly unlikely that this is a dip to be bought. in fact i would suggest there is nor downside. >> carter, come on over. >> thank you >> ryan is going to bring the chair. he had such a great chart that time around. he is the pinnacle he is the best >> zenith. >> okay, all right >> zenith! >> okay. so if it does break that lower band in that channel in which it has existed for its entire public life. >> yes. >> what's the next stop? >> hard to know. i was just sort of running some numbers. let's say it's a 30 percenter, which would be not as bad as the 40 percenters. the stock is 153 today that would take us down to 135 that's another 10 to 12% i think that's a very reasonable

expectation. a reasonable expectation is another 10 to 12 percent drawdown in facebook from where we are right now. >> that's my hunch. >> the longer it lives in that channel, is it the more likely that it will do what does it increase the odds of it behaving in a certain way? >> that's right. things can exist in channels both town trends and uptrends, thinking about horrible stocks for years, in fact the issue here is the day to day performance. it's not attracting capital, all right. there are a lot of stocks that have bounced and then there is this forget about everything i've just said. if you're in the stock and you were hurt, the psychology of being hurt is that there is a lot of money above, right? people that are trapped who if given the chance would love to say wait a minute, i should reduce so there is overhead supply. interested sellers above >> right >> so is all this independent of what happens to the market at large? you talk about idiosyncratic issues. >> remember, the stock kept

going. the market peaked on friday, the 26th of january. facebook's high wasn't until the 1st of february. so it had a little more to it. and this is very specific, i think to facebook. and if there is a general market sell-off that continues, you to assume that facebook will participate. if there is a rally, is facebook going to participate i would think less so. >> carter, if this is something bigger, breaking out of a channel that it has for its whole life as a public company, if this is something bigger, there is not only just the 30% downside, but there is a time frame. what kind of time frame would you expect on this >> right we know if you look at all holdings listed, it's one of the more popular things in retail account as well there has been very little selling. that's the frank reality of it plenty of people so it would be long lasting. it's not weeks it's months and months in principle if a break occur. >> how about the oral ooh markets? what did you make of today's reversal >> well, i think the key to this

is there is an adage from the 1930s and '40s sharp in the decision is resolved sharply there is a huge debate going on between those who think there is an opportunity to get long here and those worried about cyclical tops volatility occurs at market bottoms and market tops. it will be highly curious if this is a market bottom. >> okay. which implies of course -- >> sharp indecision is resolved sharply. >> nice. >> carter braxton worth. >> are you taking that for a sell-off >> we've had a nice one. should be, sure. i think we should be grinding lower. industrials have rolled. certainly financials have rolled it doesn't mean everything is bad. but this is not the kind of environment that encourages new money to embrace equities. >> if we see a bounce let's say in the dow, up 700 points tomorrow, you say fated? >> just every bounce has been fated. >> carter, thank you carter braxton worth of cornerstone macro. oons do you agree with that assessment >> we have a wednesday probably about a month or so ago, you

asked that question. is it now? is it buy like it has been. >> right. >> and even petey said now you're saying and karen on that wednesday said -- i mentioned this last week -- it's the most concern she has been in quite some time. so cbw is probably on to anything still ahead, bitcoin traders have gotten wrecked this year. but brian kelly said there is one under the radar coin that could be going to the moon he'll tell what's that is. plus, it's ban year filled with pr nightmare after pr nightmare as videos of dragged out passengers like the infamous one you see on your screen have gone viral but despite all the chaos, airline sentiment is soaring we'll tell you what that means r ocks much more "fast money" right after this need a change of scenery?

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welcome back to "fast money. crypto is getting crushed with the biggest coins falling across the board. the crypto wall of shame says it all. ripple and big cash plunging while bitcoin have tank in order than 40% since the start of 2018 despite the crypto crush, there is one that is poised not only for a breakout, but there could be a threat to one trying to find out what coin that is with the crypto cass, b.k. is at the plasma. take it away. >> sure. we have a lot going on this year a ton of froth this december, all coming off now we've got to look at what is going on in this market. to me, 2018 is going to be the year of infrastructure and also

the year of the entheory yum competitor i want to look at cardano, relatively new you can do smart contracts it's an etheory yum compete or the. they have a experienced team behind the project which is very important. you want to make sure you have very experienced people that know how to program. and then finally, where it's trading right now after we've had this big sell-off is a great risk reward. so let's go to the chart and see what i'm talking about all right. so we've had this big peak, right? this is when it first came public, all the way up to $1.20. where are we now all the way at 14 cents. that's what's called getting wrecked, re-e-k-t if you bought it here. bought 14 cents, we're starting to bottom. second quarter of the year for crypto has always been positive, going all the way back to 2012

i want to look at names that are bottoming, that are a competitor in the year of competitors, and i've got great risk reward >> bk, let me ask you something. you talk about ethereum as a competitor can they both win or does something have to come out as a winner >> thing is room for plenty of different coins. it really depends what's being built on it. but you want to buy the infrastructure name. you can have multiple router companies to bring it back to an internet analogy, and maybe some have different specialties that another one doesn't. i think there is a place for them all to exist. >> have you altered your allocation of coins on the belief that ethereum is going to face more competition this year? >> i've altered them a bit in that i've bought a few more of the ethereum competitors that doesn't mean that i don't like ethereum. they have been trading quite well compared to bit cowb ed tb.

i think this year is going to be about building the sis skoes. >> thanks for the crypto class, b.k. >> my pleasure. >> brian kelly despite dragged out passengers, dead dog, flushed hamsters, other bizarre encounters between the airlines and their customers, sentiment is actually soaring. we'll tell you that means for the stock. plus, from flying high to getting high, pot stocks have been a bust for investors. but one says don't pass on the grass just yet that's four hot ndfus in one tease. try and top that after this break. as investment management professionals, let's measure up. cfa institute.

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welcome back to "fast money. it's been exactly one year since the now infamous video of the removed on a united flight went viral. since then there has been a series of bizarre mishaps involving peacocks to lost dogs, dead dogs, toddlers. but despite all this, sentiment is actually booming. phil lebeau is in chicago with more on this phil >> and melissa, keep in mind that what we're talking about is 2017 data here so a lot of these complaints about dogs being lost or dying in flight, all of that data will be in the 2018 report. but when you look at 2017, the dr. dow incident with united airlines actually sparked a wave of other clashes between flight attendants or flight crews or security crews and passengers. ultimately, the industry said

we've got to change our procedures when it comes to bumps. and then we saw the number of bump bumpings, people who were involuntarily denied boarding a plane, it fell to a record low and that's one factor behind 2017 having a record high in terms of airline service and i know a lot of people say what after last year, they had a record high? that's correct that's according to the people who put together this study which looks at government data the top three airlines once again it's alaska, edging out delta. just barely. they had to go to three digits in terms of calculating things to say yes, alaska slightly better than delta. jetblue coming in at number three. who were at the end of the list of the 12 airlines that were ranked expressjet, frontier, and spirit coming in dead last. the author pointing out spirit has a higher complaint rate than its competitors. we reached out to spirit spirit says look, we're improving. our complaint rate is dropping and this study doesn't take into account the fact that we have

low fares which people appreciate the reason we're showing you delta, melissa, is that on thursday, delta will be reporting earnings we will be in atlanta. we'll talk to ed bastion not only about this survey, but really about the state of the business as it heads into 2018 and with regard to your complaints or questions about animals, that will be in next year's survey. this is only about 2017. >> right but the survey is only a compilation, right we spoke to the guy who puts together the survey on "squawk box" this morning. a compilation of complaints that go into the department of transportati transportation. >> correct. >> if you're a passenger, i'm not going to call the department of transportation to complain about a united flight or a jetblue flight. >> you are right about that in that increasingly people will just go to social media and say hey, something bad happened. i got bumped or i'm getting rerouted and it's not right there. has to be a better third party in order to grab all of those tweets, those complaints and to put them together. because right now it's more anecdotal than anything else. >> all right phil, thank you. phil lebeau in chicago for us.

pete, where do you go on airlines >> warren buffett is in several airlines i think the one that is most interesting to me is the one that kind of gets thrown off none of those charts showed southwest in there we saw alaska. well see delta we see united, all this different stuff. well see the bad end as well. >> do you mention that because you think warren buffett might acquire southwest? >> yes, i actually do. >> okay. >> he has put out there that's even a possibility. >> as a stock or the company >> as a company. no he has already positioned in multiple airlines right now. i love delta still i still think they're well run i think they miss richard anderson, but i think southwest is a pretty interesting play. >> are you still fully in airlines >> i'm in delta and i'm in american i switched out of united i mean it's interesting. when you think about it, they fly half a million passengers a day, right, delta. so you get eight complaints, that sounds like a lot >> pretty incredible >> if you don't come off the plane cruised, you're going to tell the survey 10, 10, 10. >> pretty good >> the best thing ever when you condition people to see the videos over and over again

>> i'm happy to be alive. >> i'm on my feet. oh my god, this is a home run. >> there it is >> you're walk off there with your bags and without black eye. >> the screaming it's the screeching screaming that is disturbing >> we should not show. this. >> well, you're showing. >> nightmares, nightmares. >> dealt tax, by the way, delta reiterated their guidance last week valuation is cheap the stock is down i think about 15, 16% from the recent high so i think in the earnings on thursday, it's an interesting play. >> all right speaking of earnings and delta, option traders are betting the airline will actually soar on the back of earnings so let's get the option action now with mike khouw in austin, texas. hey, mike. you know an airline or two pretty well. >> all too well, i think united more than delta but actually, in line with the guys on the desk there, delta is liked a lot by the options traders. we saw about three to one calls over put volume. and they're expecting about a 4% move and where we saw the most activity was the june 52.5 call.

traded for 3 1/4 those are bullish bets that delta that will be up a little over two months from now. >> mike, thanks for that mike khouw in austin, texas. for more "options action," check out the full show, friday 5:30 p.m. eastern time. still ahead, pot stocks taking a big hit even i know it's a pot joke. the one highflier suddenly going up in smoke, falling double-digits in the last month. we'll tell you macy behind that move much more "fast" after this. utt) 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 and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level.

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pack to "fast money. did the pot stocks get too high for their own good check out the performance of the major marijuana names over the past month, this after a major run-up so is the pot trade going up in smoke? our token cannabis capitalist tim seymour joins us now from los angeles. >> let's get them all in, mel. let's get these out of the way >> oh, i get, toke >> get them out of the way. >> i understand now. so what is the sentiment at this conference >> well, first of all, putting on a showcase event. it's about real thoughts, opportunities in a very real industry if anything, the dynamic here is to companies is taking the long view on an industry that is probably $200 billion right now globally and again, people talk about sales in the u.s. and canada it's a global industry that does not -- that encompasses medical there is a medical equity component there is a wellness component. i think there is a hardware

component there is a lifestyle component. so the people that are gathered at this event, it's a showcase event. at one panel you had over 40, maybe 50% of the investable market cap in canada up on a podium talking about their long plans, their plans for taking market share for strategic partnerships with people like constellation brands and other global players in the alcohol or tobacco industries or wellness industries that want to be a part of this so i get while equities have suffered, valuations you can attack clearly if you want to look at central investment metrics. this industry much like crypto you talked about this two blocks earlier. the prices right now that are pulling back are not necessarily invalidating the proof of concept there is no question about that. >> where have you been on your weed trade you were in on this pretty early in a couple of names >> look, four of the biggest companies that were there today, and i believe i hear a sound of something in the background. >> it's like a toilet. >> can't claim to know what that is but if you look at agreeia, if

you look at med relief, canopy, those are all global companies they are companies that have pulled back. people that are looking at these multiples on a trailing 12 months basis are not looking at major investments they have made in production, in doing business in germany in the medical marijuana markets and establishing a global brand. this is a classic cpg story. just to be clear on that this is a very sophisticated high-tech, mature complicated consumer business. i should say that replicates the mature once. it's still in its infancy. but some of the traditional guys from that world very much involved here. >> all right, tim. great to see you. >> great to see you. >> enjoy the conference. >> thank you see you later. >> tim seymour, i'll see you back here. all right. anybody venturing into this space? interested in this space could this displace interest in alcohol stocks >> cigarettes, pharmaceuticals, cosmetics. it's going to be extraordinarily disruptive tim is on to something, fyi.

>> i think cowan has a note out on that that this actually could take some earnings from budweiser, from the constellation brands that's why they're looking into it if you think about after prohibition, where were the empires built? they were built in the alcohol trade. if you're looking for something maybe not as risky as bitcoin, this is the next one. >> all right up next, final trade "volatile markets." something we all think about as we head into retirement. it's why brighthouse financial is committed to help protect what you've earned and ensure it lasts. introducing shield annuities, a line of products that allow you to take advantage of growth opportunities. while maintaining a level of protection in down markets. so you can head into retirement with confidence. talk with your advisor about shield annuities from brighthouse financial established by metlife.

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i like citi bank. >> pete? >> i like shiny metal. gld. >> in the hospital, not feeling watching, feel better. las vegas sands, lvs that will get you done. >> get well. "mad money" with jim cramer starts right now there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to save you some money. my job is not just to entertain but to educate and teach you so call me at 1-800-743-cnbc or tweet me @jimcramer. >> announcer: don't miss a