in old tech we had last year, cisco, intel, ibm not really a part of it we'll see if that can turn >> up 2% for the s&p thank you so much, sir a pleasure to have i here. >> always a pleasure to be united with you. that does it for "the closing bell" this week. "fast money" starts right now. >> i'm melissa lear. tonight the bitcoin bulls are back in town as it goes toward $8,000 is it headed to the highest of highs? plus, shares of netflix rally at 8% this week. that's nothing about what traders will see on monday first we start with the market selloff. stocks sinking today, the dow down 120 points. earning season kicks off with a

whimper on wall street the big banks all trading lower today and this was supposed to be the earnings season that saved the rally as we heard from top strategists. the question is, is today's action in the banks a warning sign and are we about to enter the earnings season of pain? >> the price action was pretty weak price action not commensurate with the move. it doesn't auger for a poor earnings season, i don't think if we look at the broader market, we closed lower. but the vics closed for the first time lower, and today had some noise in it and clearly had some hair in terms of how the markets performed in the banks i don't think necessarily this warning season is some harbinger of pain. >> i don't think it's that earnings will be bad, it's that earnings will be good and we'll continue to see lousy price action because everybody thought

earnings would be good, so the buyer is high going into the season >> two weeks ago we were in the theater of pain, which is a great motley crue album, folks one of their best, if it's even possible to say that if we expected great earnings, they were in the price we certainly have an understanding that year over year for the first quarter, we're going to see roughly 18% we know the tax deal means a lot of these guys got a significantly higher eps and that's putting it to the price we then know that corporate ceos need to accurately assess where the end of the year is and that there's very little reason why these guys should hit the bar so high if you look at the banks, these guys have made a lot of money. and i mean just rerating in terms of their multiple with what's flat, even or inverted. the fed will be high the next few months i think this is a good time for banks.

>> is today a signal of what's to come? are we going to sell off on good earnings i don't think it's a signal at all. i think if you have a gun to your head and you're a long-short manager going into the weekend with all the risks, geopolitical risks, economic risks, tweets that come out, whatever it is so i think derisking -- >> why do you sell the stories that just reported earnings and had good numbers going into the weekend? cut the flowers and sell the wheat. >> cut the flowers and sell the wheat. >> they had interim earnings, and you're right, expectations were very high i don't think they were poor quarters whatsoever. they were actually good quarters they didn't blow away expectations >> that's not the problem? >> no, i think it's fine i would say in general banks are fine all the people i talk to that invests in banks -- >> did you say sell everything >> no, i didn't say that i would say go into the weekend. >> today's price factor was

awful, no one could argue with that, especially in jp morgan. we sold off friday, it was a derisking for the weekend. it was some china trade worries, still, some trump firing worries, still i'm surprised we didn't hear one after the bell rosenstein is the big one that's rumore rumored. >> on a derisking day, why do we have the derisking primarily taking place in the financials versus other sectors of the market, right? financials are down in the worst performing sector. >> they've also been the best coming into this what led today was energy because energy was the worst performing >> markets had their best week in a long time and i thought the rest of the industries closed fantastic. industries basically closed down 10 to 30 bits. i actually think it was a very

interesting -- i'm not calling this a change of character >> it was an outside day, but i don't even know, when we talk about outside days, i don't even know the trend that's changed. is it an up trend or a down trend? we've had kind of both >> it was a down trend >> so then you have to be more bullish. but i would think the markets can move higher. the outside market today signifies this confusion in the markets, and it usually is indicative of a market changing its recent trend >> here's one thing that's important this week, though, we had confirmation this is not a growth scare i don't think anybody was out there saying growth scare. >> you mean from the fed >> people say we wouldn't be inverting if we had x, y and z this week university of michigan today rolling over a little bit. next week we have retail sales in the u.s., china gdp and retail sales coming in on monday we're going to condition in at a story. we also got hot inflation numbers this week, which i think

were just hot enough to say things are okay, and not so okay that the fed dai-- if anything, thought the data confirmed -- >> they did sell the banks, though, just on diamonds commentary all the numbers were blowout numbers. they sold the banks because you said it was a competitive landscape and long growth was subpar >> if you're an investor and ufr a long-term objective, you haven't changed anything today, right? if you're a short-term changer a and you're making changes ahead of these churn iearnings, you'rn a risk ahead of the environment. nothing has changed fundamentally. i think you hear the comments from the ceos. they echo the comments they've made in the past, and that's basically been the bull thesis behind the story here. nothing has changed fundamentally, in my opinion does it change the surrounding

of earnings? i don't think it's changed at all. >> the only thing that's changed if you want to cast al little bi of a cloud, you look at jp morgan, book value is supposed to be north of $68 it wasn't. wells fargo, book value actually went down last quarter i'm not saying it's a huge warning sign, but it's something to watch that said, i think the multiple of book value is somewhere between 1.6 and 1.9 and we're not there yet. >> in terms of earnings next week, which ones are you watching most closely? >> i think netflix is very important because i think it's been the highest flying stock, and i just talked about this in "closing bell. i'm actually surprised that netflix performed so well even in those downdrafts if you think about where it's come from in a world where a lot of this stuff has remained defensive and it's about hold it until that character is broken, i think netflix is very important

especially after the bank numbers are okay we're going right into that on monday and bank numbers, i think, fundamentally looked good, sold off dramatically. >> what did we do today? >> i thought about buying ge and didn't, but it actually did quite well i bought stocks yesterday. nothing today. >> some of these cannabis names, can trust. these stocks took off and i think they're going to continue to rally, so continue to add to certain positions there. >> tim >> we're going to talk a lot, i think, about that next week. that story with john boehner coming out saying he's sitting on the board of a company, i think cannabis is changing dramatically, legislation is about to change. i'm changing tactically stuff in iran i see the s&p falling, and some of that tactical stuff i traded toward the end of the day. >> we play that music with the

notes, and i walk over there and teach people things? >> oh, "the more you know. >> we had a pretty interesting conversation about why, why not, but again, i think you buy the continued strength, at least what you're seeing in tesla. and halpern did well today as well coming up, speaking of earnings, it is a big week next week, and the chartmaster saw one stock he called a warning sign bitcoin having one of its best weeks of the year. the big bulls back in charge our favorite crypto bowler unveiling its version of the iphone 8 we're live from times ua isqren new york city. much more "fast money" right after this at&t provides edge-to-edge intelligence, covering virtually every part of your retail business.

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bitcoin san alternate payment system which is very much needed. people turned to bitcoin in the hopes of having a currency they can use without the surveillance of the u.s of course, for illicit purposes and for good purposes, but at the end of the day, there is definitely a desire for an alternative to the u.s. dollar >> that was mark mobias making a

claim on bitcoin earlier today bitcoin gained more than 20% this week alone, and that's got bitcoin bulls making some bold calls. legend tim draper saying he thinks bitcoin will hit $250,000 by 2022. tom lee and spencer bogart both see $25,000 by year's end. brian kelly is on the line brian, it sounds crazy when you think of $250,000 by the end of 2022 >> but it's four years from now. over the last four years, bitcoin had a 4,000% return. it's parabolic, but it would be a continued trend of what we've seen >> as bitcoin becomes more

internalized, though, as far as investor flows, do we see it move or does the volatility get dampened >> the hope is volatility gets dampened and that way it becomes a lot more useful. the problem with bitcoin now is using it as a currency is very difficult because of the volatility you use it in the countries that mark mobias was talking about because you don't have an alternative. this is what you have to use this week we have big volume in futures. that will hopefully tamp down the volatility a bit it doesn't mean it can't reach those levels, it just might not do it as fast. instead of the last two years, it might take four years, as tim draper says. >> what's your estimate? >> there is no reason this couldn't be at 25,000 at the end of the year. >> this week was a very, very big week

what are you watching next week in terms of whether or not we can hold the business gains? >> traffic volume is start toino pick up. we have pack selling rolling off, we have short covering going on, so we need the fundamentals which is the number of transactions to catch up a bit, and if we see that, then i think we bottomed here and we have a sustainable bull run ahead of us. >> b. k., it's seaburg as far as store value, we're looking at bitcoin a lot of times in the lens of being an american a lot of banks don't have trusted banking systems or governments. isn't that the draw of bitcoin over the long term >> sure. i was talking to a friend today and they said, why do we put money into this if they're afraid of their country's government, if they're afraid of losing money when they could

lose 25% on bitcoin. and i said it's better than losing 100 if your assets are seized by a rogue government hopefully as we get into supply chain, we'll have a lot of other of these cases >> if the market in bitcoin is two-thirds probably in asia, and i'd like to you elaborate on that, because it seems to me that is what we're talking about here, why would that be u.s. tax selling that actually had been knocking it down >> there's a couple different parts to it. i think u.s. tax selling certainly had a piece to it. tom lee estimated 25 billion that's a pretty big number that would mean we would have to take 5 billion off the market. we did have a parabolic run. and we had transactions come downment three or four different things happened. i think tax selling was probably the fuel on top of it. i do think there was some

validity to it, though >> we're going to let you go >> have a good weekend >> you, too. have a good weekend. here's a look at a chart >> i like this game. you play this game a lot >> would you say, hey, i'm going to buy me some of that >> you could make an argument the last couple weeks put in a voluming pattern, and maybe it's turned to the up side. risk reward makes a lot of sense here under the guidelines you just set forth, you can make a technical case for bitcoin >> and overstock also went down a bit. >> if this takes traction, you'll see avid run again and overstock run again. i think you'll see it ratchet up again. >> at times we talked about the

bitcoin market actually leading oeft a the overall market in terms of appetite coming up, don't look now, but apple shares are just 5% from their all-time highs. we'll tell you what's behind the move i'm melissa lee. you're watching "fast money" on cnbc here's what else is coming up on "fast.

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welcome back to "fast money. aurora and cronos soaring more than 6%. what's behind this deal? >> there is a deal struck by trump and cronos he's the man standing on behalf of colorado. the canadian producers, maybe when the u.s. goes full legal, whatever we're going to call it, decategorized, descheduled, it might be a lot of pressure for the canadian producers the overall story for the cannabis industry is becoming mainstream people are understanding this is a fight against the opioid epidemic, they're understanding the benefits this isn't just a recreational call for colorado it's a huge state revenue story. it's 120 million last year, so money talks, and you can make an argument that anybody that's

involved in the industry, it's because money talks. >> did you mean to imply that investor-based stocks will go rather than trading now? >> it has a mega cap because it's fully legal in canada a lot of stories, by the way, are buying up assets as a currency of choice, buying up private deals in colorado and california and all over the place. don't get me wrong, i think they're good companies big news this week apple seeing red with the latest red version of apple iphones. >> these new model of the iphone starts at 699 and 799 for the plus all purchases go to the global fund which fund programs to combat hiv apple has donated funds since

1996 new colors are a, quote, fractional positive, adding around 1 to 3 million iphones a year by his estimate the direction that some analysts have had to. annual projections of 80 million, though the annual selling price, remember, fell to 50% up to an expected $690 the fiscal year, 223 million that would be a gain of 3% the street already focused on those iphones. what they're calling a budget-friendly 6.1-inch lcd

phone, but apple employees, they better be careful about how much they talk about these drisz, and i warned employees that leaking investigation can lead >> josh is here from san francisco. >> you have to be pretty hip if you' you're >> he plays as magnum p.i. >> look at that, man >> i'm not getting it done yet but i will tell you guys, there is no iphone -- there is no red iphone 10, though you can get a leather case for $99, so maybe we know what to get guy for his birthday there

>> he's got a flip phone >> thanks, josh. how do we trade apple here >> i've been with apple for quite some time now. tim talks about services others want to say it's just a hardware company, but when you look at the chin rapidly many it's just a whisper away when you buy at 160, you're not expecting it they're not looking for a ton of growth right now if they. >> i think service revenue has to be high teens, low 20s for apple to get the valuation that everybody that own the stock

wants. >> the new phones coming out in the fall, the smaller phones and all that >> i think that's a risk, actually >> the smaller phone >> there is an argument if they can appeal to a lower demographic. i just think with the capital and the stability of this company in this tape >> let's go around the horn. >> disappointing day >> zillow down after earnings. i'm a sellerme i think it's a complete 180. wouldn't touch it. >> alibaba, i think it's definitely in a trading range, but i expect it to move higher in the next couple weeks

>> we got to mike, we got to carter, they're all here >> are you guys wearing jackets today? >> barely. >> ibm earnings next week. "options action" starts right after this let's begin.

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