we're starting to see in north america. speaking of buybacks, along with the banks. >> despite the wobble, all those shares are up. and of course some of the others like wells fargo up sharply. >> key test tomorrow >> if they can hold those after hours. great to have you back with us quest fast money" begins right now. >> "fast money" live from the nasdaq, i'm melissa lee. our traders on the desk. tonight on "fast," check out shares of nike, one of the best performing dow stocks this year, soaring after hours. the conference call kicking off right now. we'll bring you the latest headlines as they break. plus, pharmacy stocks just got am amazoned if history's any guide, these beaten down stocks could be primed to buy. we've got those details. first, we start off with a bank. it's a mixed bag at first. but check out some of the biggest players. now goldman sachs, goldman,

deutsche banc, citi, wells fargo, all higher right now. >> that's right, deutsche banc's u.s. unit failed to receive approval from the federal reserve to move forward with its capitol hill plan and remaining 34 banks tested by the fed were approved but goldman sachs and morgan stanley will be required to maintain their payouts to levels from recent years. we've seen that with the announcements coming after the close today. so-called conditional nonobjection to their capital plan this result was actually somewhat of a surprise after the two firsts issued states last week hinting that their ability to distribute capital may be better than what appeared from the first stage of the stress test that's largely thanks to a one-time capital reduction under the new tax law. the fed also issued a conditional nonobjection for the capital plan from state street over its management of counterparty exposure under stress no firm, that their plan was

rejected on quantitative grounds. deutsche banc's u.s. unit failed to show approval on qualitative grounds. that will limit deutsche banc u.s.' distributions that it can make to its german parent company. they will need to get approval for any payouts from the fed the conditional nonobjection was on quantitative ground citi raising its dividends allowing a $17.6 billion buyback. jpmorgan boosting its dividend by 43% to 80 cents a share and announcing a $23.7 billion buyback program. morgan stanley raising its dividend and buy back $4.7 billion worth of stocks. and goldman raising dividend to 6% and announcing a $5 billion buyback program. important to note goldman and morgan stanley of course received that conditional nonobjective from the fed

meaning those payouts in totality should be similar to those in recent years. >> thank you for that roundup. the banks did manage to snap its longest losing streak in decades today. are these results good enough to spark the rally in the banks that wall street has been waiting for a very long time for? >> i'd like to say this is wha people have been waiting for so why wouldn't you have priced in city bank had a 2.8% dividend yield last week? which by the way, i think is pretty impressive. i think citi's the most impressive of all of them. so does this change things for the banks, no, but i'll also tell you, the banks, if you had a thesis three months ago about why you were low on banks, to me i've seen nothing that changed and i'm still bullish on the banks. >> hadthe banks been where the were six weeks ago when they were much higher, this would have been a complete nonevent. they were just -- the bar was so low going into this. i agree, city bank, that's a

very big buyback $17.6 billion for them is over 10%. so that's going to be very accretive for them so citi, you know, been a bull for the long time and it's gone down for the last whatever 13 days until now this is great but it doesn't change the story >> have at it, dan come on, buddy >> dan >> come on >> sorry to cut you off. >> no, you love cutting me off >> the most important thing is whatever you're pricing for the dividend last week is what you're pricing now i think the buyback obviously when you tell me, what was the delta on what you were expecting? was it 10% greater, you know what i mean? it is what it is, you know >> we're saying the same thing they're nice, it's great i don't think the stock should have been there -- >> it's up after hours >> which suggests they should have -- >> i mean, they were so oversold. >> they were still up so that means they weren't priced in i think the buybacks are actually a pretty big deal

the backs, as dan had mentioned, have been wilting on the vine. i think these buybacks could be the thing that does spark the route. >> i just want to say something about banks because i feel the need to defend the sector. it's not like this is where i live every day banks have outperformed the s&p since the election >> barely, barely. >> think of all the pushbacks. >> i think the s&p is up 27% >> but why are we talking about banks underperforming -- >> at list stage, you're seeing maximum -- >> whether yield curve is about to invert -- >> dan, we've seen the banks outperform, underperform, multiple times in the last two years. bottom line, people saying that banks are underperforming, they're not, okay. pick your time period. >> you have been saying this a lot over the last couple of months >> look at the charts. >> they're both up 2%. so they're in lock step. >> banks are up more. >> i don't believe so. >>, you know, so they're

underperforming this year. >> they're underperforming by 13%. i get it that's the whole reason. do i want to sell banks into the whole now? if anything, the fundamental are also the same, as i said after being oversold, underperforming, since the high in the market in january -- >> here's what you want to do, for everybody selling banks all year long, now the bankings are asking to buy a little bit more stock from you, how's that, okay >> i'm talking about fundamentals for the banks that, by the way, continue to be very good the valuationings in a market where i think we're getting multiple compression for the s&p. >> if the multiples are -- excuse me, not the multiples but the fundamentals were the same three weeks ago, whatever the time period is, and it was there, why do you think the shares haven't reacted better, karen? >> you know, they're not the -- whatever's in vogue. clearly weren't in vogue i don't believe the market's always efficient that can persist with some time. we've seen whole industries move

in a very big way, all in lock step, which just, you know -- >> you have the yield curve flattening, right. tony dwyer will tell you the banks outperform when the yield curve first flattens most people say, wait, flattened yield curve, the banks can't perform. i think this is an opportunity if they start lending at a bigger level, more valiolume, t it's an opportunity. >> the biggest problem i have with this whole fen fascenario e have fang again going gangbusters. this is where people think the secular shifts are in place and absolute monopolies, okay. so the bank stocks are supposed to be -- the banking companies, the major beneficiaries from this tax cut we got late last year why is it we're seeing this crowding into this group of stocks that actually doesn't need the tax cut for, you know, growth and you have the group that's supposed to be the biggest beneficiary acting like

you know what. >> first of all, i don't think they're supposed to be the major beneficiary. >> really? >> yes, really. >> banks aren't the life blood of the economy >> you're the one saying that. i would put it more towards manufacturing. >> every day in "the wall street journal" and on this network >> the bottom line if you think about what banks have, this is the most levered in the economy. 2% gdp final in the first quarter. nothing to do cartwheels over. best gdp in seven years, ago banks to me are the sect they're makes more sense in a world where we see operational leverage in their businesses they've never been more efficient. i'm going to tell you i don't think banks have underperformed this much. and i don't think you should be expecting miracles i will also say the target's been taken off their back. banks were vilified rightly or wrongly and it's clear they're being allowed to do their business as usual. >> a dollar and two banks or a dollar and two energy? >> a dollar into banks

better risk. >> dollar into -- i'm not going to ask you dollar into banks or dollar -- >> what's my time period >> six months. >> six months? i think energy's got more to do. >> higher beta though. >> energy's at a huge run. if you told me two weeks, i'm in the bank trade all year long. >> does it matter it seems everybody who comes on cnbc, they're bullish banks, they recommend people going banks or overweight banks or something like an energy. i picked that because there's general consensus that people are underweight energy exposure. >> right yes. i think there's something to that though. but for me, i think the bank issue right now is so compelling i don't care that it's out of favor right now. i totally agree with tim also. the economy's so important for banks and it's humming along >> it went up before today's results. they were up today before that. >> for instant reaction, let's go off the charts with todd gordon of tradinganalysis.com. >> first, if we can take a look

at gold, it was looking strong before we got on here, up around $2.25 here we've given back some of the gains. obviously we have the highs of the day here during the regular session. after hours, we came up, tested that beginning to back off. going back to the closing price. potentially right now a nonevent goldman if we can kind of look at the significance of these support levels, it's real. i'm listening intently to the conversation you're having about underperformance of the s&p or the financials if we look at the next few charts, i think we might put it in context if you look at goldman, just a massive underperformer here. we've tested this 210 to 215 zone of support. they really came after this on the downside with some momentum, trying to get through it looks like we're starting a hole remember, we went 2.25 bid, 2.23 as long as we're above this 2.10 area, this massive support shelf

isn't taxed. i don't want to get in the middle of this debate. i know you like to pun technicians out of here, especially dan if you look at the s&p xlf ratio, that ratio is moving u, okay, xlf over s&p is moving down financials have been underperforming the s&p for all 2018 it's clear when you look at a simple ratio chart, goldman is one of the clear laggards within a weak financial space jp on the other side looks a little bit more positive than goldman. through the 1.05 level not fading any of those gains like goldman was jp is staying big here that look goods. i think when we put it in context of the chart it goes back, you'll see a little healthier chart. this looks just like the xlf xlf. we've got the kind of support shelf that has approached in a less kind of severe angle. unlike goldman so jp looks very good.

we held above the 105 area here. we're holding that little bit after hours. i think jp looks a little bit more constructive if you want to hold it. the one thing, though, i got to push back on, though, is everyone is telling us rates are going higher i'm a simple-minded technician i look at this chart, like what is this? a simple heads and shoulders pattern. what is this it's a high. it's a higher high it's a lower high. we fail. that's all it is is lack of upside momentum which is just head and shoulders. if we start to move down around that 2.7% in yields, i don't know, i don't think this yield, this rally recovery in yields is going to continue. and we might be looking for recovery in bonds. so that could be a head wind to those financials xlf is underperforming s&p in 2018 and if this market does roll over, think we're going to continue to hit those financials >> so combine the two things that you're just talking about in terms of the xlf chart and

the treasury yield chart what is the relationship when you take a look at the yield and potential rollover to 2.7% >> such a great question if you take the xlf and overlay it on this chart, you would actually see xlf if we did an overlay, you see xlf is -- there we go, well done, guys. you can see that xlf is already at 2018 low. i think around 26, 27. it's at a new low. in orange, the yields have not made a new low sometimes you can get those stocks leading to bonds, leading to fixed income market, intramarket analysis finance have anything to say about it, becomes 2.4. so i think finances are telling us bonds might be going the other way which are up and down in eld yoos. >> all right, todd, thank you. thanks for your analysis let's go through individual

names. jpmorga jpmorgan >> it's 107 i just saw i like jpmorgan a lot. it's a premier name. but to me citi is the most compelling in terms of valuation. >> i think it's citi or bank of america. i think the valuations make the most sense i would argue -- actually agree with todd. i think i brought this up yesterday. could be having rates go lower but banks don't need the spread to go to infinity to be making a lot of money people couldn't find the spread on a map are quoting this for the last six months. i'm telling you if a flat yield curve, bank shares have had some of their best ever look at 2006, look at, you know, 2002 >> 2018. or not having a great year. >> they're down 4% -- >> -- is that spread between the two in -- >> and all the desks are saying -- >> he's showed us head and

shoulders on the 10-year, that chart looks like every one of the bank charts. >> we just overlaid the xlf, it didn't look the same. >> yes it did. i'm looking at all of them right now. >> he just showed it. >> what's the point? >> lower lows and lower lows the breakout level from last fall every single one, they all looked the same. that looks look a head and shoulders top, i'd tell you every one of those bank charts looked exactly the same. >> i don't know about that you have to take the 10-year it's interesting to look at. there's other factors. you've got a strong dollar you've got a great relative value trade. i can buy 10-year bonds versus german bonds i'd rather get 2.7% in german bonds. i don't think that has anything to do with what's going on in the u.s. economy plus, look shorter-term on the rates. two-year rates

where the banks are more levered. when the fed raises rates, they can raise the interest rates on their loans. to me, those are still high. they haven't made a second high. so i don't buy that argument. >> if i look at where i've seen more risk and let's just talk about it if i see more risk in owning financials or semi, i would rather own financials. >> wells fargo, anybody take a look at these results? which were much better than expected seems to be the big winner >> i think wells fargo because of their transgressions with their consumer banking and the sentiment on the stock, people thought they would be punished by the fed fed's all about the balance sheet. i'm not surprised this happened. >> i think it's fine the one thing i would add to these, though, where i agree with complex, dan, is if tomorrow, these banks sell off like goldman did, that's a terrible sign. >> goldman's a little different though >> goldman was up, it sold off

price action across the board. >> but the sector in general. >> the sector in general if these things cannot hold here, then complex dan's going to be right. >> who's the other side of complex dan? >> simple todd. >> he called himself simple todd >> clean simple todd, let's make that clear. >> simple todd should never go full technician. >> coming up, their worst week in three months. one classic theory could be signalling more trouble ahead. pharmacy stocks getting absolutely crushed today after amazon makes a big acquisition in the space this could be a good time to buy those beaten down stocks later, the man who called the big decline is back and he says the worst isn't over yet for crypto currency. he'll explain how low it goes. we're live, much more after this and teaching my kids that no ambition's out of reach.

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welcome back to "fast money. the majority of stocks in the dow transport index tanking in that time. airline stocks have some serious turbulence american airlines down 15% delivery giant fedex has tanked 10%. rail stocks have also fallen with kansas city southern down 6% investors have also slammed the bank on stocks like jp hunt. if you're familiar, i know you are, here's a reminder, this could all be a warning while the dow rallied today, the

transports still fell for the sixth straight day over the last month, the answer it porttransports have lagged t dow. are the transports hinting at trouble for stocks more broadly, dan? >> i think it's the conversation we were just having. it really means why has, you know, the ten-year yield not gone up anymore. i think that's a bit of a reflection of the feeling of growth when you talk about a company like nor folks southern. if you look at the big rail, it just made a huge double top. i think this is all part of the big year that you might want to start paying attention to. that's the way -- so i don't think the transports are leaving anything i think it fits into the broader -- >> i'm wondering if the dow

theory has moved from being a precursor to more of a coincidence, right they've gotten crushed in the very recent past s&p also not crushing it lately. to me, those are -- i think -- i look at fedex here that seems overdone to me. >> so i would bring that up. i mean, arrow's a neon, shining marquee. fedex trucking for the last two years. i think ultimately this company is the most efficient transport. i think they made acquisition in t & t. it's at a level here where it's bounced five times in the past months i'd buy fedex here. >> particularly the way it acted today on all the amazon news and the way the market reacted this morning. that reversal to me is very interesting. i don't know as bearish as i want to be, i'm still up 2% gdp. that's where it's supposed to

be ten year is supposed to reflect. at 2.5%, fedex can make money. >> coming u, check out shares of nike surging. we'll hear from the ceo about the recent management shake-ups. here's what else is coming up. >> that's what happened to pharmacy stocks today. has amazon's death store disrupted another industry it could be giving traders an unlikely buying opportunity. we'll explain. plus -- >> looking at about $62.50 and if it goes under that, we're going to test 59.00. >> the man who called the decline in bit coin will tell us e ere he sees it going next and thunlikely crypto currency he's buying now.

welcome back to "fast

money. now at the new york stock exchange with that story >> amazon's accusation of pill pack has resulted in the usual panic among health care investors. amazon's invading. pharmacy stocks like walgreen, rite-aid, cvs. the drug holders look at these, 4% declines even pharmacy benefit managers like express scripts were down a little bit that's a little harder to figure out. is this the end of the pharmacy business amazon is going to move as quickly as possible to sell prescription drugs so there's certainly some risk to pure play pharmacies. this is really a couple years out. the bigger worry, this is my opinion, is they could, down the road, subsidize lower drug prices to get market share remember, they did lower some food prices when they bought whole foods. selling pharmacy benefit managers, that doesn't make a lot of sense to me because they

still have to play with them to get access now of course everyone thinks something else is going to happen, there's another shoe to fall remember that partnership they did with jpmorgan and berkshire? there's got to be something coming i guess pill pack could build out a larger mail order prescription business. but, again, that's down the road a bit. to a certain extent, we've seen this movie before. that was june 16th, 2017 all the grocery stocks got destroyed. kroger dropped 30% i'm not kidding. in just a couple days. costco even dropped 10%. and walmart and target they were all down but look here, all of these stocks have come round trip. they're all back to their previous level so the thinking is, and i think this is probably likely too, this will follow a similar pattern. at least initially waves of selling followed by some recovery, back to you, melissa. >> bob, thank you. so we thought this might be

a good time to roll out a brand-new game >> new game, new game. >> yes, new game we are calling this game prime deal or amazoned the rules are very simple. >> sounds like an old game >> the rules are simple. we'll go around the horn on the pharmacy and drug distributor stops. you tell me if it's a good deal. or if it's been amazoned, meaning it's pretty much left for dead get it very clear, right? all right. tim is first cvs prime deal or amazoned >> okay. a lot of pressure on me to play the game right i'm going to do this right they are amazoned. and my theory is, look, a lot of discussion has gone on to the retail pharmacy space. i think the aetna deal is positive for these guys. i think health care could be good for these guys. i think -- forget drugs, people

are not going to cvs for a lot of other stuff they're buying. >> isn't the bigger part of the business the pbm and mail order drugs? >> i forget that now, but that will be -- i agree with tim on this i think though the problem here is not even so much amazon because this a tiny thing. it's more the capacity in the business and the bbm business has been ridiculous, right that's what's going to be changing that's what amazon -- >> in case you -- >> complex capacity. >> i can see right there >> is there regulatory risk involved >> i think so. even if it's not regulatory. just i think it's evolving that way. transparency has to come it cannot be good for the pbm. >> the next, prime deal or amazoned >> amazoned. that's sort of up in the air

whether or not shareholders approve that they're also amazoned. they're americaning a imerging f debt. >> same story. >> amazoned. >> do you agree with this on rite-aid >> yes >> we're going to move on here walgreens in the next top. this is of course the newest dow stock. prime deal or amazoned for wba >> i'm going to be a contrarian and say prime deal >> ooh >> buy it here i think there's an opportunity for them to be your local convenience store. yes, they're going to get hurt on the drugs no question. that's what the sell-off today was about. i'm talking about a short-term type of trade here not two years. i don't know what's going to happen to these guys in two years. i think today was overdone there's opportunity here so prime it. >> isn't this the exact same chart as rite-aid and bps?

>> i agree >> you would have said prime deal for the other ones? >> the same thing. >> all right >> i don't know, i feel like we know what dan's going to say. >> no, you don't >> but he's complex. >> he is complex cardinal health, prime deal or amazoned >> amazoned. a bit nuanced for a complex guy like me. first thing's first, you know about all my ailment, right, and if you use -- >> we all know, all of us here >> you are disturbed >> you realize it is just a really not a user friendly experience think amazon sees that as the opportunity to go and fix that because we're all really conditioned to buy things. the only thing i'll say is this, cardinal health is a company that is going to have $130 billion in sales and they have like 5% gross margins. jeff bezos comment was their margin is my opportunity this is a scale thing for them and i think they want to

disrupt. it's going to be very disruptive for these companies because they can't afford to have earnings pressure this is the first down year in eps for cardinal in the last few years. >> for more coverage on amazon's latest deal and what major retails was dragging its feed to make the deal first, you can head over to cnbc.com for that story. coming u, nike, the stock is now at its after hours highs as the company's conference call is under way. plus, more trouble brewing at starbucks it the stock taking a hit once again today this time after the cfo announces his retirement traders are ttg arolbeinshehders are about to get more burned much more on that. you always pay

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i love that people in this community are willing to come together to make a difference for other people's lives. together, we're building a better california. welcome back to "fast money. shares of nike in the of an are hours up by more than 8.5% let's get to sara eisen who's been monitoring from the new york stock exchange. what's the latest? >> hi, melissa certainly investors like what they see from nike notably, they returned to growth in north america, up 3%. that is key. it is the biggest market 3% to 5% revenue growth for china. one weak spot was the jordan brand which saw volume shrink during the quarter mark parker addressed that on the earnings call just moments ago, said he's optimistic, listen >> this quarter nearly triple the size of jordan's women's

sneaker business jordan apparel was up double digits in all gos and the jordan brand in china was up nearly 50%. these are the areas where we see exponential growth and we'll continue to focus. >> pick that one because it was one source of weakness that investors are a little bit worried about but overall the basketball business did grow double digits. the tax rate was a lot lower only 6% taxes. thanks in part to the tax cuts and guess what, that resulted in a $15 billion buyback program. just a sweetener on top of what was already very good results. both in the growth market of china and in the slow growth market of north america. mark parker just finishing the opening remarks. interestingly, did not address the corporate culture scandal that led to the departure of 11 executives he mentioned it at the top of the call in march when it was

sort of unfolding. used to take a lot of the questions. he's not going to be there anymore. he's leaving in august so he's no longer on the call. but no mention of that really nike shareholders didn't seem to mind the stock is one of the best performers >> karen's got a question. >> have they talked at all about any fears of china, any kind of trade blowback, yes, anything they are seeing or think they'll see? >> not in the opening remarks. but clearly this is a question that analysts will probably ask and investors have on their minds. so far, there have been no tariffs on footwear and apparel. back and forth between the u.s. and china. obviously if this escalates as we have seen, then that could be caught in the cross hairs. for nine, it's really a one-two punch. because with 35% revenue growth, the customer focus is key in china. but also as you know the manufacturing is key as well most of the footwear and apparel

from nike and other makers comes from china, vietnam, a lot of places in asia as well so that's going to be a key concern. so far, hasn't impacted the results and the company's not talking about it >> all right, sarah, we'll let you jump on that conference call again. you're a shareholder worried? >> i tell you what, first of all, apparel, north american, 32% of revenues. the reversal is nothing short of astounding they were struggling that's an 868 reversal the margins continue to be good. i think this story continues to get better they've reset the inventory position >> you got jordans >> i bet she does. >> i don't. >> really? because you have pumas she wears cool sneakers, everybody. >> maybe pumas i don't know it's a tremendous move we're up 6% after hours.

it does not appear that the investors are concerned at all about china. it's a good point. but people don't seem to be worried about it one bit. >> good read there for ua, fl. >> look at it, right now, the world cup, the nfl you know, i think the setup for mike was real interesting. 70 was resistance for months and months it broke out it came back to that level then you just had that one reversal i would say this, going forward, jordan is kind of interesting. i asked my kids who michael jordan is. they don't know. they're like 12 and 14 at some point, i'm just saying that becomes a real issue. come on, people. >> your daughters are -- >> it's a simple play. >> i do think that the reference to michael jordan is, the fact of the matter is, jordans are a major part of the story and the whole athletic line and the innovation in sneakers is where nike's always made their mark.

>> it's interesting to me. underarmor is only up a little bit. i don't know if people think, oh, okay, shares are now going to nike. maybe away from adidas which seems to be fading a little bit. foot locker up >> you were in foot locker for a long time. >> been in foot locker terrible last year, great this year, still in it. it's the cheapest but it should be the brands should be more, spen expensive than the distributor >> cominge ing up, issues that company just keeps piling up traders betting on more pain ahead. plus, bit coin falling below 6,000. moments ago, this man, you see there, has been dead on when it comes to his crypto calls. he called the decline earlier this month you won't believe how low he sees bit coin going next anthonco hisuyg d e e ine bin right now. e to get our patient

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he will stay on as senior consultant through 2019 earning $250,000 per month that's according to regulatory filings. it's also the latest high-profile departure from the company former executive chairman shultz stepped down from that role earlier this week at the conference when the company announced it was cutting its q-3 global guidance from 3% to 1% globally and also posting about 150 underperforming stores in the u.s. next year. it typically closes about 50 per year, facing increasing competition and flat traffic now, in a statement, the ceo, johnson, said today, quote, as we enter our next phase of continued growth, i'm confident in the financial team he's developed and appreciative of his willingness to support through the transition into new leadership analysts today seemed surprised at the move. saying, it appeared it might not be entirely voluntary on perhaps

of maw also one writing there is some consolation in the fact he will be on during the transition. from the stock perspective, the announcement is disappointing as it is to the potential recovery of starbucks this year. >> thank you, kate rogers, at the newsroom starbucks also faced so many head winds in materials of growth and now major departure >> although, do i own starbucks because of the cfo i don't think so i think this is a very replaceable position involved in strategy or the vision of the company, i think this person had to be a very much technocrat. i think there's other people out there. the stock at about 280, at what point is enough enough i've about there for the last -- >> you've got one of the best ceos of all-time saying, you know what, i'm out of here just a few weeks later, the cfo leaves i mean, when there's smoke, there's fire i don't think you have to rush into starbucks -- >> -- a burning building -- >> the cfo, what's going on,

why, why are they -- >> why are you connected with that >> two weeks after that, it doesn't seem right >> let's just say this way, they're turning around the company and they have to hire a new c suite. not a place i want to be. >> if he was pushed out, does that make you feel any better? >> i think the timing, none of it's great when's the last time this thing has traded in the teens at a multiple of forward earnings and if they are able -- >> the capital return in the next, you know, 2020 i mean, there's support under the stock. and valuation does matter here at some point. this sis a global brand. ultimately, i think this is an overreaction >> the question isn't is this cfo leaving or not it's because is he leaving because they've got bad news coming up and they're going to pin it on somebody and that's what it's about, the potential for the bad news >> company thinking they can get

a spispin-tasticceo >> stock activity was pretty hot, and what mel's referring to was some options activity inputs and appeared to be a rolldown. it could be a hedge against position again all this news over the last month or so, they're going to be reporting earnings in late july. if you're trying to stick with this one, you may want to think about protection below the market a little bit. so let's just talk about the trade. i thought was pretty interesting today. the stock was trading at about -- i don't even know where it was trading but there was a buyer of the july -- 47, or 68 cents. for me, it's just the protection level. to me, getting at some levels here where the support is much lower because we've had this long consolidation here and then this breakdown and then when you

look at it on a ten-year chart, this is a level i'm kind of talking about. taking everybody back to 2014 when it really started to wrap this is when the global growth story started to kind of take hold a little bit. this thing is in a free fall there's some room to go. i just want to make one other point as far as option prices. this is implied volatility in starbucks here. with the stock going this way, option prices have gone that way. and it's becoming increasingly hard to make directional long premium bets owning calls or owning puts to do that. as the stock goes lower, i think to the point, valuation should become a really good support level. >> all right, thanks, dan. for more action, check out the full show, tomorrow. coming up, the bit coin nightma nightmare rages on one says there's more pain ahead. he'll explain next live from a very rainy, very dark times square in new york

city well, it's earnings season once again. >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade. looking for a hotel that fits... whoooo. ...your budget? tripadvisor now searches over... ...200 sites to find you the... ...hotel you want at the lowest price. grazi, gino! find a price that fits. tripadvisor.

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with us back in june >> if it goes under that, we're going to test 5,900. >> let's welcome back the founder of on chain capitol h, l welcome back >> so good to be here. the market is at 5,900 as i called it the last time i was here. >> now what are you looking for? what levels? >> look, unfortunately, the same model that told us we're going to 5,900 is telling us there's more blood to come the bear market means if you're going to taste $53.50 as the next point there's about a 16% chance of a bull market. but to confirm the bull market, we're going to need to test 7,400 with high volume so right now, my money is on the market continuing to go down and going down to about $53.50 and the time horizon there is about the next two weeks >> you know, the mining cost of

bit coin is around these levels. how does that factor in if at all? >> it's a huge factor. but what's going to happen is when the fund is not viable, they're going to switch off their machines and there's going to be fewer machines in the eco system and the machines left are going to actually continue to mine so we're at those levels we received some notifications from some of the miners they've switched off their marichines there's going to be a fewer number of miners with the same amount of mining >> let's go back to this mining issue. i've never really been a believer that going below production costs has any impact on price because every ten minutes we still get 10 1/2 bit coin. how does this -- the supplier remains exactly the same, whether we have 1,000 miners or 2 miners how does that impact price >> what happens is most of the miners don't mine for themselves

they mine for these seyndicates or pools it's the same thing as if we each buy a lottery ticket and we say if we win the lottery, we'll share the winnings between us. now, if there are ten of us, which have got lottery tickets, we have to split the lottery winnings between ten of us if two of us switch off the machine, we switch the winnings between eight of us. it means that the miners who can't afford to mine switch off their marine machines and the y that remains will remain there's going to be a lot less investment in new mining infrastructure because it's not viable to buy the machines to put them in the mining infrastructure today >> it's tim, theoretically, the cost of production only means something -- but that's not my point. you think it's going lower i'm curious how you would play that and, in fact, you see people taking short positions out there or, in fact, how would you recommend people do that >> so i say the same thing

it depends on your time horizon. if you understand the technology and you're a bull, then now is a great time to be buying. we know there were 27,000 start-ups in 2017. in the first six months of 2018, there are 28,000 the block chain is progressing and this thing isn't going away. that's if you're a long-term bull if you're day trading or trading in the next week or two weeks, i'm calling $53.50 in the next week or two. so you could possibly take it short position and you could -- there's probably 10% in it. >> so that call you're making, that's short term, i mean, that's next seven days or so >> that's the next two weeks >> the next two weeks, okay. what is the one coin you would buy right now, rand? >> one coin, well, i'm looking at infrastructure and looking at the block chain plays. protocols. and they seem to be really undervalued. and that's the base layer of

this whole block chain it's a tossup between two coins. one is the chinese block chain or the chinese version and the other coin for me is cardono or ada, which is -- it's a product level, it's a block chain protocol which i think is highly undervalued. >> all right, rand, great to see you, thanks for your time. >> good to see you, thank you very much. brian what do you think of his two coin picks >> i think they're fine. neo is -- they call it the chai kn chinese ethirium you look at the correlation, it's 5%. so it's like two days trading. just i think that's the point i'd make this is extremely volatile it's new technology. you got to be able to deal with the volatility. >> up next, final trades

until exxonmobil scientists put it to the test. they thought someday it could become fuel and power our cars wouldn't that be cool? and that's why exxonmobil scientists think it's not small at all. energy lives here.

final trade time tim. >> we talked a lot about banks tonight. frankly, you know, dan's arguments were so compelling that, in fact, i decided to do the opposite and buy bank of america. i think you should too. >> karen >> on the heels of this nike

report, get it, the heels, foot locker beneficiary of that. >> bk. >> i think it would be -- wouldn't be a bad idea to buy some bands heonds here. >> after about a day or two, sell them. >> nice book end there i'm melissa lee. thank you for watching. at 5:00. "mad money" starts right now 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 some money my job is not just to der entertain you but educate you so call me at 800-734-cnbc or tweet me