texas prairie they just built over. >> it's always hugely available. >> always nice to see you, evan, on fridays. >> go have your margarita, michelle. >> thank you for joining us all week it has been an absolute pleasure and that will do it for "the closing bell." "fast money" starts right now. >> "fast money" starts right now and it was a brutal day on wall street and the dow dropping 200 points on the lows of the session on fears that the turkish economy is on the verge of collapse. that country's stock market and currency crashing in the u.s. and europe in particular this is president trump's last new tariffs on turkish metals. that's a clever headline and not a difficult day in turkey. >> that's cute i like that. >> the economy is not about to collapse they'll probably grow 4% this year, and it gets better, but let's be clear

it's a sad day for our nato ally erdogan is not a guy i'm search th sympathetic to and if you think about paribas, and unit credito and the exposure to that economy you start to worry about european exposure and more importantly for the u.s. market, the u.s. can be somewhat resilient in the face of this and we've seen the outperformance of the u.s. market and it's outperformed emerging market by 17% since april. look at what the dollar did today, it's up to 96.50 and the yields are starting to buckle and you're seeing how this will impact how the ecb runs things and we were in our 11 vix a couple of days ago i think the market was not positioned for a pullback. >> ironic here, david, that you know, august 15, we're worried about china and that upsets the market august 18, now we're worried about turkey and the potential of upsetting our market.

how concerned do we need to be in taking place in turkey against the backdrop here that seemed to be smooth sailing. >> the market today told you that given the fact that it was an illiquid market in general as far as i'm concerned we didn't see any panicked selling and no one is discussing this as a main theme narrative going forward especially in the u.s. except what we hear on tv or after the media outlets and people in general don't believe and i'm not saying this is right or wrong, but don't believe that this is going to turn into another european crisis. >> are you worried that it is? >> i'm not worried that it is. >> what's the biggest risk, in my opinion is the u.s. dollar and it is too strong in the face of the fed. >> but that's the point. >> if nobody has it priced into the models and into their thesis, then this actually does pose a risk, maybe not turkey in general, but if it gets the u.s. dollar rolling like it did today, that will be a headwin

for -- and i don't know, to me you don't want to say that there's a huge fire in turk they it's going to impact something like starbucks' earnings, but you have to watch the dollar to me, the dollar is the new vix. the higher that goes the more risk we have. >> interesting thought, guy, what do we have? >> marrietta has jp morgan assets and i'm paraphrasing, but what concerns them the most is the moves in currencies. they shouldn't move half a percent in the day let alone 10% in the day, 15% in a day and that's almost become the norm. that's a little disconcerting. clearly, the equity market, today not withstanding, have cared about it, but at some point the instability in currencies have to be a risk factor and similar to what tim is saying and b.k. is saying. >> the velocity of these currencies falling out of bed. euro went below 114 and it's right at that level now, but

it's been a precipitous slide. >> you're right. guess what else happened today guess who has the highest inflation in ten years we do. 10.3% and we haven't been here since september 2008 and meanwhile, the fed is hiking and i get concerned because those are trends we cannot stopped and guess what we've only kicked up the momentum on trade tariffs this week and if you don't think that you're going to not see and forget the double negative, you will see more price inflation over the next few months that you've had over the last week. >> is this going to upset what seems to be a formality in terms of a march toward new highs. does anybody think that? >> maybe we'll do it this week >> and now we're ending the week more worried about some place overseas than we are about anything that's happening. >> the risk reward is not great here let's just say you're entering the market today, i don't think the risk reward is that great and we have a higher dollar and do we want to put an additional dollar to work or do i want to see how that pans out. i would rather wait.

>> people are just watching the tape and not necessarily jumping in with the new capital into names that they still may love >> and guess what happened to the market >> the positioning, now that you think the market can go to 3,000 by the end of the year and 3100. how much of a pullback are you going to wait for? >> it fits a little better. >> is that good or bad i don't know if that's good or bad. >> my huskies fit a little snug. >> we're 90% of the way through earnings season, with the market positioning which is not, you know, at the city surprise index lows and we're at a place where people repositioned and you're seeing people feel comfortable and the vix is at 13 so no, it's not time to jump out of a window that's right and ultimately if you ask me where i think there are risks, i think the same risks we had yesterday and the fed is still your problem the dollar can potentially still be your problem and it is suffering under the weight of

the tariffs. >> what is the bigger risk is it trade? the dollar >> the dollar. >> you see the dollar staying on the trajectory of being strong i think it's the biggest risk. tim talks about the inflation and the impact on inflation. you see commodity prices will drop under that scenario, right? from an inflationary perspective it should be deflationary and we can look at the fed and say the fed is a risk and i think the strength in the dollar will be more dovish from any perspective. >> do you get excited when you see the 10% which was knocking down the door at 3%. >> it actually meant growth and now, boom, we're all of the way down to 285 and you have dynamics which yes, you're right and the ecb is even more out of the picture. >> if you think the dollar, guy, the biggest risk out there, if we collectively think that that's -- >> yeah. >> you have to be concerned

about it >> so just taking that one step forward, to me the exist earn risk is the european banking crisis that will have contagion in the united states >> i have no idea and european banks don't trade particularly and deutsche bank which has rallied over the last couple of weeks seems to be back like it was back in may and june if you're asking me what my biggest concern is it's european banks. >> as all of this geopolitical turmoil sent stocks lower today, our next guest says the classic pattern in the charts is pointing to even more pain ahead. >> cornerstone macro at the plasma to break it all down. carter >> yes they are patterns and they have names and we think of heads and shoulders and they're double bottoms and double pop where we are now in relation to it, probably higher in the market and here is the dow jones

industrial average and right back to warmer highs and what we know, what happened from there is the following and it was a double top and you got this perfect failure at the high and a really big wipeout if i were to go on to another example just to make a point this is the s&p. we all lived through this, of course, this was the 2000 peak and the 2007 peak, and if we put in the line, what we know is we failed right at the former high. let's keep going just to be agnostic what about sam adams it rose to its high and what it did to earnings was the following and the plunge and it got back to a difficult level. so let's keep going and let's talk about the epic high of all time and until the government changed the requirements on them

and they went out of business and what we know is it failed. so i want to talk about the s&p. they're minor double top, intermediate and major if we look at the s&p. if it's a major double top like silver and over the many years it has major implication and it's an intermediate top just to say no, we are now here in early august, even if you don't clean. before you can exceed the normal high neither is a bad thing, but that's what happens when you first approach a higher high. >> i think he's credit worthy. >> he's dressed for friday come on over >> i was thinking you had to have 15 charts to get to the desk, but we'll make an exception on this friday ten will do it

what's more likely to happen, do you think? if you see this back fill thing and retest these levels. >> we had a 10% figure and the low is february 9th and here we are august 9th and back to the former high. very rarely do you get back and push right through you try to limit the wrong answer and then figure out the wrong one. the right answer is you go right through and it's sideways or down and that's the likely scenario when you first approach it >> how about the qqqs and the nasdaq they don't have to account or deal with it. >> versus, let's say industrials what you're doing on the other high >> the nasdaq continues to trudge higher. there are only three sectors outperforming the market and the market is up 6% on the year and the median performance is up 3.2. it is so dependent as you're

referring to it's better than the item and if there's any filtering, we saw net facebook and netflix. >> we do have other thicks to fill the void perhaps. health care is coming in a big month. it's the best-performing sector. you have to remember, it's not the same of what we know and we're so dependent on. >> let's say this, they were all double tops are going on to make a new high and it's the principle and most people did it when you get to a high and you break out, and that's what traps are about. in fact, if we make a slight new high it draws out computers and they say look, there it goes and it's wrong to chase that >> the other thing you have to look at and carter echoed this and it went straight up and since then it's gone sideways to

slightly lower and if you're looking at reinforcements and transports and i would look at it in the sort of a around the 165 levelish for critical support. so if you want reinforcement for transport, look at the russell carter, thanks have a great weekend and we'll see you in options actions in a little bit >> yogurt and jail and those are two places that sec chair harvey pitt says tesla's ceo could find himself. he will be here to explain exactly what he means. plus, as we go to play let's play stock jeopardy. this stock is up 80% this year and the top performer in its sector and one of the most shorted names on the street. so what is this? we'll do that later. we are live at the nasdaq marketsite. >> you don't know. on this summered from we're back in a moment >> you don't know.

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his namesake company, but the independent directors have an uphill climb in front of them. despite musk's infamous tweet that the funding is, quote, secured. it's been three days and so far no one has been able to find out the source of financing either debt or equity for what would amount to be a $70 billion field. in the meantime, short sellers have claimed much of the paper losses suffered the day of musk's tweet one of them, david einhorn used the opportunity to poke fun at musk today, i want to thank elon musk for the shorts. he is a man of his word and they did come with manufacturing defects. #tesla it was apparel maker chubbies that sent 50 short shorts to david einhorn. musk tweeted at the short seller saying he had sent him a box of short shorts while these tweets appeared to be in jest, musk's comment about short sellers could get him into trouble with short sellers

because it is evidence in his attempt to squeeze them. they're looking into the truthfulness of his comments particularly whether the funding has actually been secured. that scrutiny will likely continue into next week as it does not appear to have concluded quickly. scott? >> thank you so much leslie picker. our next guest says elon musk is in, quote, deep yogurt what does it mean for tesla? harvey pitts, the former sec chairman and ceo of halorama partners >> good to be here. >> funding secured and no details yet. how much of a problem is that? >> i think it's a serious problem because this would be the largest private transaction in the history of the world. he needs to demonstrate that at the time he tweeted he had a legally enforceable commitment to fund $420 a share or

$70-some-odd billion dollars and if he didn't have the money at the time he would have a serious problem and as we used to say in brooklyn, he would be in deep yogurt >> i get all that, and to be fair, i've had people say to me, even in the face of all of that and talking to some investors, yeah, but there's no way the sec is going to prosecute this guy how would you respond to that? >> well, i think the sec will weigh the evidence and if there's evidence that he did not have a firm commitment, i think the sec would pursue him and they have never shied away from pursuing any case in which somebody engaged in a flagrant violation of the securities laws >> how do you think motivation plays into all of this as leslie picker was just laying out, this notion of the tweet in and of itself was meant to hurt the short sellers more than anything else? in order to show manipulation

you must show a mental intent to try and influence the price of the stock. one is that in 2017 musk in a print interview already started talking about going private so there would have to be some evidence that indicated that his clear intent here was to influence the price. some of the things that would influence that are the fact that he made his announcement in the middle of the trading day. that's highly irregular and unusual. it is not illegal, per se, but it is extraordinarily illegal because it promotes huge swings in the stock price usually people wait before the market opens or they wait until the market has closed. that did not happen here. >> harvey, i'm looking at the notes from the producers they say that you believe going to jail is still on the table in

this -- in this case do you truly believe that? >> no. i didn't say if he would go to jail i was asked what the range of penalties are. one of the penalties for either committing fraud or committing an act of manipulation would be criminal responsibility and liability. so if you're looking at what the potential could be here, it could range anywhere from monetary payments to actual jail time >> harvey, it's tim seymour. thanks for joining us. what about the board what's your assessment of how much they followed the appropriate protocol is there any connection to yogurt for these folks it seems they're scrambling to get on the right side of this trade. >> well, they may, in fact be in some yogurt themes and how deep

it is remains to be seen part of the problem is that growing private transactions create a conflict between the management that wants to take the company private and the shareholders who are public investors. that requires independent directors to seize control of the entire operation to consider whether they should go private and if so, on what terms here you have the ceo doing everything and the company was quite silent while these tweets came out in addition, when the company finally did come out with the statement, they said they had met over the weekend and they had discussed financing, but it has subsequently been reported that at no time has musk identified to the board what his financing source is. that's a serious o mission and raises questions about the validity of the discussion the

board put out. >> harvey, i have a feeling we'll be speaking about this in the near future. thanks so much for joining us tonight. harvey pitt, former chair of the sec. what coyou do with the stock in the meantime >> go ahead, david. >> you can't touch the story right now in my opinion. i think the board could react and throw him out essentially and i think there was commentary and tesla made a comment about the fact that they would go after a wide swath of investors. i thought they had funding secured and to me there are too many missing links and i don't think that's a story you can touch. >> look at that chart and it looks like 380 is an area where the stock wants to fail again, and again, i think the news will get better >> semis getting smacked today the charts pointed to even more pain for one name reporting next week we'll tell you what it is. in the meantime, here's what else is coming up on fast. five, four, three, two, one.

happy 1999 >> a number of web 2.0 stocks are surging like it's 1999, and one name looks poised for even more gains we'll give it to you plus -- >> it all comes down to a few moments. >> and it will be a key moment for a number of retail stocks when they report earnings next week ad'll tell you which one our trers see breaking out when "fast money" returns it's all s. but how do you work with it? ask this farmer. he's using satellite data to help increase crop yields. 's smart for the food we eat. at this port, supply chains are becoming more transparent with blockchain. that's smart for millions of shipments. in this lab, researchers are working with watson to help them find new treatments. that's smart for medicine. at this bank, the world's most encrypted mainframe is helping prevent cybercrime. that's smart for everyone.

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number one number two, kudos to cowan who put an 18.5 price target on this sucker when it was ten bucks kudos to susquehanna who got it wrong and admitted so back in april. >> 13, and back to 41. merrill lynch has put a $24 price target on it >> amd got upgraded today and intel got downgraded >> that's been a trend and we had a meeting and the ceo came in last week and we had the marketing in new york city all day and the main takeaway was they are just getting started. so this say company you want to stick with andown for the long term. >> by the way, nick lowery nailed this one. good for him nice job >> yeah. it's time for final trade, go around the horn. you're up first. >> i brought up the russell. i think the reality here is that you've seen small caps struggling a bit i would be short the stock to give me protection in other places.

>> stay with burlington. burl program i am a buyer. >> as in the coat factory? >> as in burlington coat factory. >> believe it or not, i'll tell you to buy bitcoin, one of the best risk rewards we've seen to get into bitcoin in a long time here. >> i know you're fired up. i saw it in your eyes! >> kroger is about to break out to the upside. >> all right >> a little supermarket. >> guy, thank you very much. have a great weekend, everybody. that does it for us. catch us back here at 5:00 p.m. on monday. do not move, though. options action starts right now. prevagen. healthier brain. better life. tap one little bumper and up go your rates. what good is your insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates

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hi there we're leive at the nasdaq marketsite in times square here's what's coming up. >>. >> chip stocks are getting crushed and the chart master says one name looks particularly bad heading into next week's earnings he'll give you the setup plus -- >> shop 'til you drop. >> that's what the consumer seems to be doing as a number of new stocks hit new highs and it could spell gains for one big dow stock. don has the names. and --a call it the perfect match. mike has a way