we'll talk to bill miller. ahead of father's day, they planning something special for you? >> one of my daughters said wait, when is father's day yesterday, so -- >> she can't ask you. >> so she's being very coy about it or -- >> she's playing coy i always tried to play that card that does it for today, everybody. we'll see you tomorrow >> "fast money" starts right now. live from the nascar market site i'm melissa lee. our traders are tim seymour, david. tonight, it's the disney dilemma. the stock rising even as comcast outdoes its bid for fox. should the mouse house dump the deal plus, big climate soaring after the sec gives the green light for the crypto currencies. we'll explain. and from wall street to the crypto universe, we talk to one trader who left a high-paying job at goldman sachs to become a full-time investor in bit coin first, we start with something a little different tonight the house that jack built.

jack dorsey that is. both twitter and square on fire today. now up 95% and 84% respectively. this year alone, the two stocks have been dominating their biggest tech rivals. does jack's empire have more room to run? is smaller tech your best bet? guy? >> yes, is the short answer. >> great tune by the way >> what was that >> you were tapping your foot, man. >> don't just -- ♪ >> and people -- >> i'm not tapping anything. yes, you can own jack's scotts people say valuation 82, crazy expensive. not when it's growing it's 70% es skoe. i would say a lot of runway left without question twitter, which has now doubled over past year, could it potentially double again i think there's a shot twitter is now -- people are figuring out twitter -- it's not about daily active users it's about the fact that it's news dissemination and it's

become one of the most popular mediums out there. >> is this a media buying frenzy >> the fact that large advertisers are backing twitter is posh. back to what guy said. what jack's doing, he's proven they can grow revenues not just 15%, we're talking that the end growth is in double digits so the metrics are very strong. when it's netflix or the other forms of distribution, this is a media company with massive distribution. >> the one thing jack has proven is he can run two companies and be the ceo i was one of the people that probably said listen, you can't ride two horses, but he did it >> yeah, you can't do that. >> now he's riding two horses. >> with what >> one tookus. >> people will know what i'm talking about. >> industry term >> nonetheless, jack has proved, he's showed us he can do that. if you look at these two companies, take a bigger

picture, are you going to stop using twitter if there's a trade war? if europe is slowing down? no, you're going to continue to use twitter. so that goes to yes, the smaller cap names in general will probably do better in this macro environment. >> i get what you're saying but i'm going to push back because if there is a tradedown, the advertising dollars are going to slow down and the small business usage of square might slow down as well. those are two things. >> well, maybe maybe not, right maybe if your business is slowing down, you say i got to advertise a little more. >> competition is going to heat up a little bit. the stocks had a tremendous move of the two, i'd say i'd own square over twitter. twitter still, they're losing market share in the most valuable market, the u.s they're losing market share. >> to who? there's no comps >> you look at facebook. facebook's growing their top line 40% twitter's growing their top line 16%. you look at the, you know, sales. you've got twitter trading at roughly 11 1/2 times >> twitter and facebook are two different properties very different properties.

>> they're both monetized -- based on ad growth, ad revenues, right? >> yes, but that's like saying a newspaper is the same thing as -- it's different >> why would you pay a premium multiple for a company that's not growing their top line -- >> you keep saying they're not growing. they're going to grow revenues >> you have to -- guys, they're jacking -- when you look at the markets that they gained in, right, from an ad revenue perspective, they were international markets, japan in particular that is not a valuable market when it comes down to it >> why >> the value of that particular ad user -- >> you're a share hold, right? >> it's not as solid >> i've been a shareholder when there wasn't six straight quarters of double digit dua growth and i've been doing it at a time when there wasn't the eve of the world cup which is going to be massive. twitter is as global as any of these platforms. say what you want about fake accounts, the people around

twitter are as committed if you consider the engagement that goes on, on twitter, if you're anything like guy, you're spending way too much time on twitter. there you go. >> i mean, he's tweeting right now. you're tweeting right now. >> we're engaging with the audience what is that, the fourth wall or something? >> they call that whole thing. >> more than a year ago, twitter was below $15. we're all lamenting jack dorsey and saying what is jack doing. he can't run two companies he can't do this he won't even get enough -- >> we also made a comparison -- david makes an excellent point about facebook and why he'd rather own facebook than twitter. i get it one of the things we said is go back to the early days of facebook people were calling for zuckerberg's head the first nine months you have breaking news, i can see it in your face. >> on the at&t and time warner deal let's go for all the details >> at&t and u.s. regulators agree to end waiting period to close on the time warner deal as early as tomorrow.

according to this filing, at&t is promising to put a fire wall between turner and cnn communications you're looking at time warner up 1.5% at&t shares are also on the move. >> you're an at&t shareholder. >> for probably 12 to 15 months. where the stock's done a lot of different things 9 1/2 times earnings i think they do have massive distribution i don't really understand why they're trading at the bottom now that we've done this deal when the deal was announced actually unless people can completely change their view, which maybe they are that's the conversation we've had over the last couple of days is bigger better >> at&t today versus at&t two weeks ago. >> i like it better today because it's gone down because it's about really just our activity, at least in my view you've seen the spread compress. you're seeing it more in the after hours here so once that sell pressure, that spread compression is released, then i think, listen, they're

buying them for a reason they're buying them to become a growth company why wouldn't you like at&t after the deal >> we'll have more on this story in a minute. tech sitting at record highs our next guest says there's three names with even more room to run >> let's take a look at three good checked names to start. netflix, in a beautiful uptrend, parallel channel in 2018 what i'm going to do is pull out a little elliott wave. i think b.k. will appreciate this what you're going to do is basically take the distance traveled right there and then project it up in the next ongoing trend wave you take your multiple, that's going to put you around 415. what you're going to notice is it corresponds with the upper part of that channel so you've got a collision of technical levels that serves as resistance but also a target. i think that's going to push netflix up through 400 nvidia, i'm also long. similar in that you take net

distance travelled in that first push, if you compare that, let me get my line back, that's symmetry, what they call a measured move. that gives you 298 target. that occurs a lot often, a lot more than you think. it also corresponds with that upper change it act it is s as a magnet. finally, we'll take a look at tessa. i've done that chart same one beautiful breakout from this long base. we had the first push up 34% decline. yields a nice breakout then when the fundamentals of tesla were really being questioned, elon musk was being taken to task, all that happened was a very symmetrical 37% decline. when you look for the size of the corrections, you can kind of settle a lot of the noise aside and scoop some good values i think we're going to continue up to new highs. this is the weekly if we go down to the daily, giv you a little more view here.

downtrend resistance this is the daily. we just came from the weekly we've broken through down turn resistance this is the line in the sand use that as a synthetic level to buy. resistance becomes support as long as we hold at this level, we should be able to clear up towards 400 in tesla. i like this stock as well. so three good tech names to continue to play this tech rally. >> you highlighted in tesla, todd, the 30-plus percent drawdown for the past couple of times. is that typically what the drawdown is? they seem to be sharper and closer together this time around. >> we really haven't seen -- tesla's been basing for a long period of time they like to show that rhythm. when you find a stock that's really well traded, you're going to see that it does show common, you know, percent moves. you can use that to kind of time your fundamental entry tesla's been range bound for a long time. we're finally getting that good base next time we see a pullback from the 400 level, maybe again look

for that 30% decline. >> all right, todd, thank you. todd gordon, trading analys analysis.com which of these three do you buy? >> that's three of my faves. >> really? rank them. >> forced to choose. i think out of those three, netflix. i know it's preprosperous to say it they report i think the middle of july. by the way, and i'll say it again, i think all this, you know, comcast, it's all about hulu in my opinion there are other things, i get it it's all about competing with netflix. this just gives netflix that much more of a lead in my opinion which is why it continues to go higher. >> i agree i love nvidia. but netflix is the clear winner in my opinion of these three i still think there's a lot of momentum there reid hastings has done an excellent job from a sub-b expectation game i think that continues they have a tremendous amount of growth in international markets. they're an original content

owner. >> and a huge fan club right now. >> please, and i'm the guy that's been wrong about this while these guys can gloat >> i'm not gloating. >> finally, this is a company that has doubled, doubled, since december okay are you telling me that the world has changed that much, that this company really should be trading at that much of a premium? what you guys are doing is basically equating distribution with everything. how about when we were waiting for netflix to come up with some content? so they won a couple emmys you think they have the other two guys that are competing? they're not even close you turn on netflix and have everything you want? absolutely not >> twitter's up -- >> i mean, it's ridiculous the valuation's ridiculous i've been wrong for -- >> twitter you said -- >> twitter's a buy it's up 180% in the last 12 months i say look at netflix. the performance has been stellar. i just think the trajectory continues for very obvious reasons. of why a growth manager will

continue to own and buy the stock. >> for me it's nvidia. that's because it supports the mining ecosystem we'll talk about crypto currencies later the prices go up, generally means you'll sell more minors. it's a small portion but what i also like about it is there's demand from other places, right? it doesn't necessarily rely on just one industry. so you have multiple different demand drivers >> bk has his own -- how cool, you have your own etf? >> no. >> i don't have mine >> everybody should have one >> how do you like that? >> what do we do today, tim? >> i continue to nibble at emerging marketing the ecb's announcement today certainly gave the dollar a boost. the fundamentals are better. look at the vicks collapsing >> banks, especially the regional i know they've been so weak. i like that given the fact they're still -- i said

yesterday that they're underweight by the hedge fund community. i think this is a wait expectation game the weakness is a buying opportunity. >> you need to look at the bond market the move, the macro moves today were extraordinary if i look around the world and say okay, where can i get yield versus german yield, it's here in the u.s for me, you look at something like -- >> that needs flattening too. >> yes, it does. >> coming up, from goldman sach, one making the jump even though he says 90% of the crypto coins will be gone he explains. plus, do you want tomorrow's biggest trading headlines today? of course you do a top strategist at wells fargo says he has three of them. we're live from times square in new york city. is meyig aerston rhtft th mom and dad got a new car. it's not theirs, it's mine. the new rx 350l with three rows for seven passengers. lease the 2018 rx 350l and rx 350l awd for these terms. experience amazing at your lexus dealer.

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blues? tim, it's just around the corner. >> i do think the capital return between buybacks and dividend increases, banks are thirsty as well i think you can take any numbers you want and you can find plenty of opportunity to say banks have actually outperformed certainly since the election when trump came into office, regulatory environment changed for banks. they have outperformed the s&p by 10% they've been sideways over the last 18 months year to date they've underperformed i don't think holding banks has been so awful. jpmorgan in the first quarter had record revenues. the consumer banking department is doing well. higher rates on libor mean more profitability in home loans, auto >> i think it's interesting that tim brings up depending on what time period you look at. year to ate, as we've mentioned, they're underperforming. at what point do you say that outperformance is nice but i need to cut my losses? i need to move on to something else that's working this year? >> i think you have to for sort of -- jpmorgan for example has

been fine. has not really given that much over the last couple of months but hasn't really taken a lot from you the one i'd be the most concerned about, the one you have to look at and say is something wrong is citibank quite frankly. maybe there's something going on there. i happen to think it's cheap i think there's a lot of upside in the name. at a certain point, you ask yourself, what's wrong with citi $125 a stock in december it's trading i think 93 now. just on valuation and rising rates, i think these are worth a look. >> with citi, you think about the global implications. we've seen emerging markets have a real problem here. maybe citi is the one that's going to be affected by that the most we saw argentina today a lot of big currency moves out there. >> regionals i think you stick with the regional banks the deregulation is going to benefit them the most. you'll see m & a really continue to pick up i'd stick with that trade.

i think from a long -term perspective, it's really the best alternative i'm not going to specifically identify takeouts. in general i'd like exposure just through the carry but in general, they benefit the most i think, again, there's going to be money in that space. >> one trader's betting on a big rebound for one of the struggling banks mike is going to break it down. >> yes, so we saw about double the average valium in wells fargo today. we saw some interesting activity in bank of america as well and what we saw here, we're taking a look at this, was an interesting trade, going out to january of '19, selling the 50.45 put spreads. this took place when the stock was about $55. it goes above $60, they're going to go long there nice profits this traded 6,500 times. basically the idea is they're going to try to get long here or there. and have protection on one side

and then end up looking for a trade for the stock to get up to about $65 is their target. they're going to profit from here to here they can get net long here they're going to be protected by that lowish put. represents 650,000 shares in wells fargo. >> question, show of hands, who would be a buyer of wells fargo, even with all the potential regulatory overhead? >> on principle, no. >> how about you >> at these level, no, i'm not a buyer on the stock. >> i've seen the activity. >> that's a really good point, because at this level. so think about this, stocks trading $55. where they're going to get long if it declines is down about 10% from where it's currently trading. if it goes up, basically, that probably suggests that they've, you know, cleared one of these hurdles to some extent so they get long at 60 i think that's one of the reasons why the options an set up interesting in this situation where maybe the stock isn't as much. >> thanks. for more, check out the full show tomorrow, that's friday,

5:30 p.m. eastern time. >> love it, full show. >> check out shares of adobe sinking despite huge gains this year in the meantime, here's what else is coming up on fast. >> greetings, my friends we are future, for that is where you and i are going to spend the rest of our lives. >> a top strategist who called the decline in february has three predictions for the markets future and one of them is not good. he'll be here. plus -- yes, that's what crypto investors were doing today after a key ruling by the sec. and a top bit coin watcher says it's just the start of more gains. we'll tell you wchhi currency could be your best bet when "fast money" returns you always pay

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welcome back it was a big day for bit koip and ether after the sec said both crypto currencies are not securities let's go to bob at the new york stock exchange for the details. >> the sec has been under mounting pressure to clarify if and under what circumstances crypto currencies and icos were securities and thus under the regulatory control of the sec. he said neither bit coin nor ether were securities because they don't fit the definition of a security investment created if you are raising money from a centralized source for a project that people are investing in with the expectation of a profit. now, regard iing --

>> these are complex facts and circumstances tests but when we look at bit coin and ether in the highly decentralized nature of the networks, we don't see a third party promoter where apply ing the disclosure regime would make sense we're comfortable in some sort of viewing these items that don't have to be regulated as securities >> regarding icos or initial coin offering, hinman said the sec would apply the same test. while many icos are clearly designed to make a profit, others he said are not. >> people are buying it for investment and for a return and looking to that party for a return that's an indication of a security if you have, on the other hand, a token that's just used in the network for a good or service and that's why people are buying it and that service is available and up and running, not under development, then you may not have a security. >> now, in our interview, hinman specifically said that an ico that was a simple membership,

for example in a golf club or a book club was likely not a security finally, hinman defended the sec's script application of the security's laws, saying many icos had misrepresented investment opportunities and some were outright frauds. we've had the head of the sec on the head of training and now the chief policymaker on bit coin the sec is clearly moving to clarify exactly what their positions are. >> a lot has happened in just the past couple of weeks bob, thank you going back to -- i don't know where you want to start because there's so many things that are very important about what the sec said today that clears the way for, let's say, ether, right, to have futures. >> so that's where we, you know, the issue at the conference was clearing one of the issues they had on the issues. if you're an investment director at a pension fund or endowment, over last year you thought about allocating to the space and the first thing you say is what if

this thing is really an unregistered security? well, i better not invest in it. this is really big news. it's a green light for crypto currency it's a green light for crypto assets as an asset class how many times have i stood up at the smart board this year and said what's hurting bit coin, what's hurt ether, regulatory and clarity. we have clarity now. it's very clear when they're securities, when they're commodities. >> we have clarity on utility tokens versus other sorts of icos we've talked to him many times about coin boase about when he would list others. the sticking point is whether they are securities. now that we have clarity, are those worth the investment >> it depends what the utility's for, right >> i mean, it's like saying that if i buy a bottle of wine, right, should that be a security because i think that the bottle

of wine's going to appreciate in price over the next couple of years? not really. >> my understanding though -- >> what you're saying is if the expectation is that i'm buying something i think is going to go up in value then, in fact, it's security, but if i'm buying something that's a utility, then it's not >> it's the third party test. >> 95% of these -- the trading in icos is all for - >> i would think of it -- to me i look at it more as they go from a security to a commodity similar to we speculate in oil, we speculate in gold, right? so if it's used primarily to operate the system, and you don't have a third party you're relying on to make money, then that is more like a commodity than it is a security. >> what does it mean an xrp from the way i understand it, it's a technology solution that you don't necessarily need to use the coin to transact on the platform what happens how does a ripple -- >> so it's still in limbo here there is a case on xrp on whether or not it's going to be a security i think we're going to have to

wait for that. >> a lawsuit. >> i'm associatisorry, a lawsui whether or not it's a security i think for that particular coin, we'll wait because there's a relationship between ripple the coin and ripple the company we can argue about how close that is but that's the sticking point. >> is there any trade in your view in terms of the coins that were there that were struggling in regulatory limbo and may now be considered commodities and so then maybe listed on coin base >> i mean, the easiest is etherium, right? very clearly says it's not a security that to me is the best one. >> our next guest used to manage over $7 billion at goldman sachs. he's the co-founder of crescent crypto asset management. he joins us for his "fast money" debut. >> thanks for having me on. >> you left when, last year? >> last fall. >> last fall so it was just before the huge run-up >> yes, exactly. fill out the time. the space was really starting to

grow it went from being a personal hobby to being a full-time focus. and at the time there weren't any passive players in the space. there were a handful of managers very high fees and we had demand just in our own networks being known as the crypto guys. we had demand from colleagues, friends, other people in our network for a really complexity free product that they wanted to get diversified exposure to the space. so it was kind of the perfect timing >> is there diversified exposure to the space since so many of them are correlated? >> there's various levels between these coins. holding a basket of 20 versus just holding bit coin, you're going to get better absolute and risk ajustice tdjusted returns. even though it's -- each coin may be incremental, it's still better than holding just something like bit coin. your drawdowns will be less

volatility withholding a diversified basket >> how important was the sec and what they decided today when it comes to ether, when it comes to utility tokens to what you do? when you look at the 10% pop in ether on the news, do you think, i would think that the cryptos would be up even more based on that >> yes, i think people generally had a sense of what the feeling was with etherium. i think there was still some murkiness around that. i think we've been in this regulatory uncertainty for six months now and this is just one piece of a broader picture, right, there's still the custodian question there's still questions around exchange traded products that really need to be answered before more institutions feel more comfortable and get into the space in an easier way, and exchange rate of products or something that we're really focused on as a big catalyst in the space over the next year or two. >> so you have this basket of 20 currencies how do you decide what to put in

that basket? is it simply market cap weighted do you see that changing >> we wanted to create something that was future proof. it's a 90 day average to really smooth the volatility. you see some of these coins explode in value and jump into the top 20 they really need to sustain that value to be -- to prove themselves i guess as a real true investment. so it needs to meet that threshold. we have to be available on multiple exchanges that are available here in the united states and actually custody is a big piece for us we won't hold the coin that you can't hold in storage. so funds, we want to make sure people are able to store these in the safest way. as you constantly hear about these exchange hacks we don't want to hear our clients taking that risk. >> so you started your fund in the fall and you saw the huge run-up and times are great, everybody wanted in. then you saw the big decline

have you seen people want out? and how has that been managing investors? everybody wanted to start a crypto fund. and now it's like who wants to start a crypto fund? >> yes, absolutely there's definitely been -- thankfully we do a lot of education up front i think is a big piece. we explain to people this is a really long-term investment. we're looking at a 2 to 5 year-plus time horizon i don't think the thesis has changed at all you saw volatility there was a bit of mania at the end of last year now the regulators have started to step in i think long term their tone has been bullish our clients thankfully understand that. it could be up 300% next week. you have to hold this for a longer term. people that understand that, allocate appropriately in their overall portfolio to this asset class understood that and will do well. >> so you left and that was just about the time goldman indicated

it would start its own crypto trading desk i wonder what the thought process is in staying within a big firm so people at the firms might be thinking do i stay here to be in crypto or go out on my own >> i think there's been a lot of opportunity to start your own business and launch your own fund or, you know, like you said you kind of saw an explosion of funds last year and i think that's toned down a little with the pullback in the market i think it's going to be a little longer before there's a lot of crypto positions available at a place like goldman, right, that desk is kind of just starting. i don't think they're hiring hundreds of people they're hiring a few select people for that. i think you're still going to see entrepreneurs going into the space. >> seeing what crypto has done, experiencing it, in a front-row seat, would you put your mother's, would you put your grandmother's money into the funds that you have? >> yes, absolutely it's all about sizing appropriately. even if you're the most conservative investor out there, right, just because there's a

lot of volatility, the actual risk adjust of returns are quite good relative to other asset classes. so for my grandma, i might put in half a percent of her portfolio. that's her downside, is half a percent. but her upside, you might get ten-x over the next ten years. that would be a great diversifier for her portfolio. it's generally been uncorrelated and that will probably continue for a little while and that has huge diversification benefits in a broader portfolio even if sized in a small way. >> do you have a grandma in crypto >> i don't have a grandma in crypto parents. >> very good chris, thank you >> thank you >> i went to high school with his grandmother. >> really? >> he's like 9 years old, look at him, he's fantastic kidding around i'm kidding around >> what's interesting, is getting into fund structure. as a former hedge fund guy, the question comes down to liquidity and what is the lock up.

we're talking about assets that at times have no liquidity are fund managers locking people up >> no, listen, liquidities -- the world's changed so much. >> yes. >> i mean, it's changed a lot. what i do every day is monitor what our positions are, how much liquidity is there i will cap the fund size depending on what the market's doing. liquidity has improved a lot to your point, you know, there are -- if you get too big of a position in an ill-littquid coi, it could be an issue i think it's highly risky. it's similar to liquid venture capital. you have to understand the risks. but it's also an emerging asset class so there's a lot of return possibly. >> i'll ask you the same question do you have a grandma in your etf? >> i'm sure we have grandmas in the etf. >> no, no, but like in your own family i'm just curious. >> we have family for sure yes, in fact, we do have a grandma. >> okay. >> my mother's a grandmother

>> i thought it would be fair, the same question. shares of adobe, the stocks is up nearly 50% this year but could the run be come doing an end? plus, the stocks inch closer to record highs top strategist chris harvey has predictions. you won't want to miss it. a sinkhole opened up under our museum. eight priceless corvettes had plunged into it. chubb was there within hours. they helped make sure it was safe. we had everyone we needed to get our museum back up and running, and we opened the next day.

welcome back adobe is sinking in the after hour session let's get the details. >> the stock heading into this was up nearly 50% year to date kind of a mixed q-3 outlook. better than expected it basically just aligned here on the top on the company's conference call, the ceo having an upbeat tone especially about the digital media business >> in our digital media business, we achieved strong growth in both creative and cloud revenue in q-2 we continue to drive study adoption of creative cloud subscriptions and services across all segments in geographies. this resulted in another strong quarter. >> he also talked about the

digital experience segment, talked about what he said was strong brooki ibookings and imagine gejengent, magento they bought, saying that's going to make them the only company with leadership in content creation, marking advertising, analytics and now commerce says magento will close next week >> despite tonight's move, check out the cloud stocks all flying high. adobe and amazon have 47%. all up double digits as well your best bet in the tech, in the clouds here? >> yes, look, i love the story i mean, i love the cloud space in general i think it's really an expectations miss if you will. it doesn't derail the narrative here the narrative is strong. i look at it and say the sector's incredibly strong right occurring revenues that these companies are able to achieve now versus licensing

revenues that shift in the model has been powerful and i think it continues. i would be a buyer of any weakness on this print and in the other sectors as far as -- or any of these other names. >> not all cloud stocks are created equally. some sell software in the cloud through subscriptions and others operate actual cloud services. >> there's commode tigsed ones and there's ones that actually in the case of adobe, their creative group is their breadwinner. guy's been on this name for a long time. it's gone up 2 1/2 times in the last three years ultimately, these numbers weren't great. they beat on fx. they beat on taxes i think those are things that could turn people. >> and then you say i would buy it the next day, is that what -- >> that's the bridge at a certain point, we're going to be wrong. at a certain point, valuation's going to matter. the trend has been now for the last couple of years big run-up in earnings. people get worried about

valuation. maybe making the metrix they're looking for. the number you need to look at here, again, josh mentioned, digital medial revenue growth. so despite valuation, and he's texting me, watching right now like, you going to do that hold adobe shtick he's watching, stan. >> he just texts me and says he loves "the fifth dimension," he appreciates that >> coming up on "mad money" tonight, jim sitting down with the company's ceo, at the top of the hour plus, want to know the secrets to success right the winning lottery numbers? well, a top strategist from wells fargo may be able to answer those questions maybe noall tset ofho questions but at least one of them we'll have that right after this break.

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welcome back to "fast money. do you want to know the winning lotto numbers today? what if you got tomorrow's headlines today? our next guest is here with one of those things. not lottery numbers. joining me now, chris harvey, wells fargos security head of equity security. you just had a note out with your predictions let's get right to them. the first one here your headline prediction reads growth beats value. >> correct >> why is that >> well, when you look at value, there's not enough value in value. things that are cheap are cheap for a reason you look at growth for growth,

the quality is much better we have organic growth pricing power. you look at the growth of value, it's about tax and tax reform. the quality's not that great when we look at flows, we see money flow out of value and money go into growth the last thing is the "c" word we haven't seen capitulation with that. until we see that, we're still in the growth camp. >> what are you looking for in terms of capitulation and value? >> it's hard to say exactly but what we want to hear is when we go into value managers, sometimes i have to bring a box of kleenex because it's a difficult conversation what i want to hear is people just throwing in the towel what i want to see is more money come out of the space. what you see is sometimes you just see the gaping phase down once we see that, we think the price is cleared we've had pricing risk then you can start to get the value. until then, we're still in the growth camp. >> you see powell strangles the rally. this is above the fold how does this come to fruition >> let's start with the market

is beginning to rally again. and good news is the market is reacting to good news. so we have good earnings come out. the stock market's going up. stocks are reacting. what we worry about is good news becomes bad. that the news becomes so good that powell has to -- the fed really has to get in motion. becomes a lot more hawkish that takes a lot of monetary accommodation off the table quickly. in addition, they can flatten a curve and we think that starts to choke off a rally. >> this is a prediction for this year or for next year because it feel like this year he's already telegraphed pretty much. >> if the numbers come in a lot stronger and again, when you put monetary and fiscal policy together, it's potent. i want to see what q2 numbers look like. the fed is now saying the economy's strong one thing i say is the fed and talking about the economy, they never tell you that the economy's strong they're always late to party for them to say that the economy's strong, you know that it's rather strong >> okay, let's get to the last one. you say crypto cat is out of the

bag. what do you mean by that >> back in december we were worried about speculation in the crypto markets to us, there appeared to be a lot of froth in the marketplace. what we were worried is if that froth came out of the marketplace, it would spill over to equities. what we did see is froth come out of the crypto market equity markets roll over earlier this year. for us, as we look forward, a lot of froth is already done, already out. in addition to that, what we had from a lot of the semiconductor company, a lot of the tech companies, is a lot more transparency this is where our exposure is. now you can start to price is in as we look forward, we think crypto is a nonevent before, we thought it was a big risk now we think it's a nonevent. >> do you look at it at all anymore for guidance or no because before you had bit. >> we were looking at it a lot on a daily basis now we look at it just to see what's going on. but it's really less and less every day. >> right you guys have a question over there?

tim? >> yes, i guess, ultimately, you start to get at this moment where you have the time horizon. for me, the fed, really is something eventually they will do this. are we all safe second half 2018 >> i would say we have to see q2 numbers. if q2 numbers come in strong, w start to ratchet up the rhetoric the curve really starts to flatten. people start to worry, hey, the fed is in motion, the fed is going to choke this off. we've got a ceiling on the market. >> all right, here's a twist to all these headlines. we're going to vote. the desk is going to vote on which predictions they agree with the most. tim, why don't we kick it off? >> okay, hopefully i didn't make this too complicated number one i think growth will outperform value. i think in this stage of the cycle, it's been proven. i think the fed will choke us at 18, but not 19 so number one, you know -- >> you can't even play this game right. >> it is true. >> all right, you go ahead, big

boy. >> no, i'll go in order, otherwise -- >> all right, go >> i graduated the first grade here so i got it right here. growth beats value i think is the play here. look, i love crypto. i think crypto's going to continue to do well. i think there's some regulatory hurdles that have gotten out of the way. i think the insurance tugsal community needs to come in growth beats value in my opinion. >> bk. >> well, bk hearts crypto. actually agree i think it was a cowiincidence they traded together at the end of the year. i think his prediction's already come true. >> guy. >> strangles rally i think at the end of the year, you'll set three rate hikes this year, you'll get four, death nell, i played it right, tim. >> looking for a number. >> number two. >> interesting thank you. chris harvey all right, still ahead, it is an amazon takeover. cnbc.com reporting that the company is making some big changes to the c-suite at whole

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welcome back a news alert on amazon's whole food >> a cording to cnbc sources, amazon is playing a proactive role in its effort to revamp whole foods placing key amazon executives inside whole foods to carry out amazon ceo's vision. while whole foods ceo john mackey is said to have taken a

back seat. in fact, some high-level whole foods executives have left and amazon is said to have even altered relationships with key suppliers, back to you. >> all right, thank you. with that alert on whole foods? >> it's only a matter of time. they got their nose under the tent look, it's amazing i think this whole foods acquisition is going to turn out to be a positive acquisition i think watch out walmart. 53% of their business is grocery. i think whole foods is knocking on their door and going to make it difficult for them to dominate market share. >> is that what's wrong with walmart? >> walmart is getting away from what makes walmart walmart i think the fresh foods is very important to them. i think they're not worth this e-commerce evaluation. think walmart is challenged. i agree, i think whole foods was a smart acquisition because it gets them into consumables, it gets repeat purchases over and over again

>> the problem with walmart is last year they had a much better narrative. they were developing their e-commerce, developing their online store that's already been developed. if you look at walmart maybe versus something like a target who's just ramping that up, walmart doesn't have that story ending there i'd rather be in something like a target. >> check them out. >> yes, that's going to happen >> it wasn't my best game though, all right. just to be clear, i've been better >> who wins in grocery >> who wins in grocery >> who loses everybody thinks amazon will win. >> i think walmart could lose. i think kroger is too cheap. you have to like target. the problem with walmart last year they had a huge run-up. >> the full story on how amazon is taking control of its whole foods acquisition, log on to cnbc.com now up next, final trades. see that's funny, i thought you traded options. i'm not really a wall street guy.

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in the 2018 lexus es safetand es hybrid.dard lease the 2018 es 350 for $339 a month for 36 months. experience amazing at your lexus dealer. time for the final trade tim. >> yes, mexican cement we've got a birthday boy in the house. >> who is that >> i don't know. >> it's not you. >> it's not me. >> what's your trade >> buy adobe on the weakness happy birthday, b.k. >> aw. >> it's his birthday >> well, happy flag day to everybody too. check out gold today, right, we had that massive move in the coll dollar and what did gold do, it went up. very unusual buy that. >> same birthday as the united states army.

and flag day >> and the president >> and the president. >> that's right. >> you know what else is, semicowan initiated coverage back in may, to $20, up when semis, wer my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now >> hey, i'm cramer welcome to "mad money" welcome to cramerica other people want to make friends i'm just trying to make you money. call me at 1-800-743-cnbc or tweet at jim cramer. today's market was very simple everything entertainment related