is is an interesting sea change from what we saw last year with the proxy fight there and also acquired a stake in lowe's which we knew about and disclosed 7.7 million share stake worth $37 million, willch? >> leslie, thank you very much for that it's been a positive session up a percent. >> a vacation on this. >> on vacation for a week and a half "fast money" starts now. >> "fast money" starts right now, live from the market overliking times square. the traders are brian kelly and dan nathan the crypto crash continues and crypto breaking below 6,000 before hovering at those levels and the move as a whole has the crypto universe in a frenzy. bill harris who previously called bitcoin a scam says it is about to get a lot worse he will be here and the tesla saga continues and elon musk reportedly going rogue as the

company's board is scrambling to keep up, but are they doing enough first, we start off with the retail at record highs and the already hot retail trade is getting hotter as they have a four-day losing streak helping to boost some of the biggest names and check out these in the past month, and macy's up 50% and that's after reporting earnings tomorrow morning and most of them and jcpenney all up double digits. do you keep betting on the consumer is this a good sign for the rest of the market? >> i think it is a good sign and the higher spending that we're seeing from the consumer and the gdp will round the 4% level and a little bit above that, and home depot, if you look at the number, they were spectacular numbers and the reactions that came out later after the call. across the board when you look at what they were able to do and now we'll get into retail, and not just the home builder or something involved in that i think it will be pretty

impressive because people are out spending and i think there is a confidence level where you will see the retailers and the competition level with the amazons of the world has really stepped up look at where kroger is right now after being put for dead a year ago and look at target after being dead a year and a half ago and a lot of the names have competed in a that everybody said they wouldn't be able to compete in and they're doing it >> after we see the big gains and we showed everybody at the top of the show, will the earnings be enough >> the price action today tells you there's a lot of good news in the stocks and when you think about the big of the retail amazon is an all-time high and target is back to an all-time high and walmart is the laggard and they can play catch up to some of those, but retail has the seasonal strength and they have back to school and the holiday. the holiday season was a very, very tough compare and last year was as bad as it could be and we're talking about the retail wreck all summer into the fall

and very difficult compare so they may have some room to run and the xrt is breaking and consolidating over the last month and as far as what it means for the broad market, and i don't think the xrt is big enough to drag up the market when it seems like a lot of sectors and industrials, financials and the semiconductors and it is if it's a signal that the consumer is here doing okay. if we know that the consumer is a huge portion of the economy upward of 7% of it if the american consumer is still spending money which means earnings should be a-okay and all of the macro concerns that i get worried about every single day may not be impacted and that's a positive. we had carter on last night talking about the breakouts of these. look at nordstrom. that was a breakout there and there was some momentum behind it and in this particular market, that's what you will see and let's call it a glimmer of hope >> you want to look at things specifically like discounters. i think that finding brands at a

value or product at value like a burlington coat factory, tj maxx and these are names that have continued to show, but they have a great business model and that's where investorsment to lied, but companies that they're investing in and nike hasn't been the perfect example i favored adidas over nooky, but nike has done a great job. and it has been a success. you have to be careful and pick your poison here >> i think walmart -- why do i need to be careful >> i think a walmart needs to be careful and we talked about it on the show $91 bucks a share and be very cautious going into earnings and although it's a laggard i would say for good reason because people are interesting -- >> you brought up nike and i agree with john. nike is one that a lot of people looked at and they suddenly got all freaked out. the reality is the growth that

they're seeing internationally a lot of that can change over time because we know how the dollar is working over everything else and that's where the growth has been and they've absolutely delivered when you talk about china or the rest of the world. they've been killing it and i bought underarmor, the other insider buying a little over a week ago >> i love to see that. it gaves me that jamie dimon, but you don't see anyone committing their stock i don't love it. i think it's a good stock and i trades at a valuation. >> underarmour sales is more toward north america unlike nike in the earnings report, though, are we going start hearing with the impact of tariffs on prices, are we going to start hearing about the trucking shortage impacting costs? i mean, if we're in an environment where retailers are

facing rising costs on many fronts and the consumers may see rising prices, is this sort of the cocktail >> that's what you have to worry about, but so far what we're seeing is it hasn't impacted the consumer and as long as the consumer has enough money to pay that increase and then we're fine if those margins start to progress and the consumer goes i don't want to buy the kung fu grip for christmas, then you have a problem and i look at north, in. >> and you guys have been tracking it and we know where the inflation is and on the net, not always an increase for all intents and purposes and then you throw on this rising dollar and trade tensions and as you said, mel, it will find its way in this is the potential headwind that we have going on. >> here's why home depot cited that in today's earnings they talked about tariffs and the impact on transportation

costs and fuel they cited that. people thought they were being con spir tiff and thative and t prepping for that, that's to preface the fact that they believe that that may be an impact going forward. >> 15% price increases on washing machines at home depot and that led to lower sales and this might be the be quinning. >> >> when you take a look at walmart versus target, 50% of they come from, walmart? why is that bad? there are no margins there when everyone wants to lump in target with walmart that's the difference >> the contraction does hurt somebody like walmart. i think target still has this great ability to have the five different segments and because of that, they can lean on some of these different segments in times when there are other areas getting teed up. >> while things looked up for

the market the former bull is sounding the alarm morgan stanley's mike wilson says a correction is imminent. good to see you. >> good to see you >> what will be the trigger for the correction >> you never know what the trigger will be. let me set the stage clearly this year has not been the way people thought it would go since january we see d rating with the various market with the exceptions of two sectors. technology and consumer consumption and we think they're right to have a correction in their rating and in terms of their multiple, okay we've seen some fundamental disappoints and in fact, we made a call in early july and we weren't expecting facebook to miss and we saw the deterioration and i think the consumer could be next. lake widity has been the problem all year that we're talking about and they're tightening more than people appreciate and i'm not talking about rates going up and i'm talking about

balance sheet reduction of the fed and the doj is not buying as many bond nous as now and the mi going after it, and we're seeing it across the board and crypto, by the way is a warning shot and it is breaking down to new lows for me is just like it was in january and that's an early leading indicator and liquidity is getting worse it's going on with these concerns and that's just feeding into it. so i'm very concerned about a liquidity shock. you get a consumer financial shock and it will be over quickly, and it could be quick, and this is the time of year it happened and just be aware of that. >> the rating agency is downgrading it with the debt and you look at these bigger companies that are borrowing at whatever rate. all of a sudden they get downgraded and you get a purge of those assets and you can't have certain managers buying those assets so is that what you're leading

into it's downgrading a debt or something else from that perspective? >> absolutely plays into it. if we do a survey of the corpora corporate clients and basically the survey is there are two things they're worried about and one is credit conditions and they're seeing that. the second one is advanced booking, okay? then we talked about semiconductors and that's the tip of the spear not just for semiconductor, but the entire economy. we think there will be a deceleration and business sentiment and part of that is related to specifically credit conditions >> why do you like financials then >> well, financials is -- to be honest with you it's a stale rating and we should have probably downgraded it in february and march we didn't. in july when we saw how much it had derated, we didn't want to do that. 20% d-rating on ge and energy derated significantly,a lot of others were lowered which has actually worked quite will

>> mike, did this remind you of mid-august, 2015 bee had a weakening chinese currency and a lot of is imhairities at all time high >> there are some similarities that you have a commodity collapse. >> so they're very different i think this is 1998 it is very similar to 1998 and you have tech leadership and it's very narrow and real disruption in the asian market and the volatility -- >> it's not the same as that time, though >> in terms of its composition and the contribution to the s&p 500 it's not as extreme as it was in na'99. '98 we weren't into the full bubble yet and that was '99. i don't anticipate a long-term capital, kooim not sighing that, but i do think the risk of the financial accident is elevated right now and it's not like

we're not seeing signs of that around world and it's not like everything is doing well others, thanks, early -- they already told you they accented acceleration and there are two as if they're not economically sensitive and they are they're very economically sensitive. >> mike, let me take the other side of that and say, okay, great. liquidity is the issue and all it takes is the fed to say we're not going to raise one more time and boj lacks liquidity and it's all over does that change the calculous >> 100%. >> i think the percent of the fed being bahhing o fedbacking off now is zero and they shouldn't back off. however, if we get the correction i'm potentially anticipating here which is somewhat speculative and the risk is greater i think they absolutely will react to that and we will get bullish quickly. that's our call. we think there is risk here and

the market will get what it wants. they've been begging for that all year by shocking various asset classes and they can't get unless we quetta know accident and we'll see how it plays out and a lot of if there, but that's how i see him right now. >> the tip of the spear. the semiconductors and it's important to remember that the largest semiconductor and intel is down 16% from its multi-year highs and the 52-week highs made in june. micron, a darling of the semiconductor space is perennial value trap is down 20% we have nvidia coming on thursday that stock is up 1,000% in three years. if you lose that one from a sentiment standpoint >> we'll talk more about the semis later on what do you think about today, pete >> yesterday i bought ea, and i thought that was a good buy. that was my pick last night and

i added, and i had already owned microsoft and i added today. i think microsoft looks like a breakout and whenever i look at a breakout i look for 10% higher. >> the tesla stock will continue as elon musk tries to convince to go fda. it will be a good one. we'll separate pact from vugz -- now he's headed straight to zero chip stocks a term ing to make a comeback as they lag behind the sector. the one name he thinks is about to brake out we are live in sometimes square in new york city much more "fast money" right after this

welcome back to "fast money," more details coming out about elon musk's plan to take tesla private and it's hard to separate about what is really going on at the company. so for that, we turn to phil lebeau to turn the heavy lifting from miami hi, phil >> hi, melissa as we see elon musk now hooking up with a couple of advisory firms, as well as the set the board of advisors, board of directors coming up with the special committee that will look into going private separately, a couple of questions that have come up repeatedly over the last week that we thought we'd separate straighten out what's actually happening versus what people believe first of all, is there a firm propoll for tesla to go private?

no the truth is that elon musk said this in a tweet, and that he thinks it could possibly happen. he believes that there is secured funding as he understood it from the saudi sovereign fund, but there is no formal proposal the second question that comes up a lot, elon musk saying yesterday, look, 60% or 66% of the shareholders will likely buy in at a $4.20 point and so we don't have to pay out those investors. in other words, two-thirsd of the tesla investors will stay with the company when it goes private. we don't know that we're not sure where elon musk got that statistic the truth of the matter is that's an estimate pure estimate from elon musk at this point will tesla be a better-run company if it is private elon musk is the greatest asset of this company and he's also the greatest distraction will he be less of a distraction because the company is private and he doesn't have to deal with the shorts on social media you would think so, but you never know for sure with elon musk and finally, tesla will allow saudis or another firm to

become the biggest shareholder remember, elon musk owns 20% of the tesla shares would he let somebody else come in and own 25% 30%? you would think not, but again, at this point we don't know because we don't have a concrete proposal at this point and we will not have one for several weeks and a couple of months >> we can talk to tesla for a couple of weeks and a couple of months. >> phil lebeau joining us from miami. there is so much here to unravel. >> and yeah. >> exactly >> here's the thing, whether it should be private or public. it shouldn't have been public from the beginning and i thought of this as a venture capital type of investment you are betting on the big picture of elon musk and the stock price reflects what he's doing every single day car company, solar company and decarbonizing the electric grid and that's the big picture and that's why he owns tesla and the

problem is now they put a 420 cap on it and as a trader it's not that interesting. >> i want to know what the downside is here say there's no proposal and elon musk faces an fcc investigation and the board potentially could be in the crosshairs in terms of scrutiny and how will they respond? they've formed this special committee and the shareholder proxy advisory service has said that one of those three number board members is not actually independent because he was the former ceo of solar city this was a special committee to evaluate this going private proposal. >> i think it hurts the potential of the deal happening because of the overhang from that deals don't get done when there are whole eagle, and you own this thing and sell the 420 calls all day against it and lodge dated because there really is a top and your point, if it deal, nothing gets done, how much will banks want to lend to these guys they'll have to do the capital

raise of all capital raises to put the shorts to bed. at that point that will be very diluted. >> they'll have to raise capital in the third quarter so the question is is the debt market going to be there so does the go private marquee out there, the question mark. so i think it will be more difficult for them to erase capital under those circumstances. secondly, i think the private company, elon musk, he's less skrut niced. i think the company having shareholders in a private scenario are worse off given the fact that there will be less scrutiny on him under a private regime they don't have to deal with the headaches that he has to deal with and the frustration that we've seen over the earnings calls and he goes after the analysts and saw the rest of that and i would assume that that's why over the last couple of years he's been talking about hey, i'll bring this thing or we should bring this thing private. the interesting aspect of this is you see the 420 call.

there are spreads, and i'll one of them who decided, at least i know a risk reward i know exactly what my risk is it's what money i've put out there to buy my call spread and that's as much as i can lose if it goes to 200 like this thing can drop out of bed and you can only lose what we put out there and that's the one approach to have in a scenario like this, and of course, the sec issue and that could be something that would steer off any of these types of potential bidders and it seems to me he felt very, very confidence. >> you positioned yourself not necessarily for a go private or for the down side at this point. >> went out to flow of noef ano' a 380 to 427 anything that would give me an opportunity. >> anything that would make that tweet out of confidence. >> 100%. >> it made me sheer panic and it

seems like the boards agree with that and the press agrees with that >> to me, i actually panicked. >> if you were to put a trade to tesla would you put a trade that would position yourself for down side >> think about it. it was trading at, what? 280 or something like that three months ago >> coming up, in, vidnvidia is and another stock is about to go higher and he's going to give us the name and the trade i'm melissa lee, with cbs nbc first in business worldwide. here's what's coming up on fast. that's a live look at what crypto investors are doing right now and the former ceo of paypal says the pain is about to get a lot worse. >> plus, the bk armay be getting bigger than his bite and we'll tell you why the smart money is balog the tech darlings.

much more "fast money" after this

welcome back to fast money the semis have been on a tear and t and let's get to dom in the newsroom >> chips are the name and momentum is the game the semiconductor stocks have been in a leadership position for a good part of the market in the last few years and they're not outrunning the technology sector itself. the vanex sector and the ticker smh is up 8% and that is a 6% gain, but it falls short of the spider technology etf which is posting a gain of 14%. some of the best performing semiconduct semiconductor stocks in the s&p include memory chipmaker micron up 23% this year nobodible chipmaker is up about 24% and n video always a hot stock up 35% and advanced microdevices and the bev performing stock upper inially

doubled and 95% year to date and the big tablet for the industry come by nvidia that's coming back on the heels of the rollout of the grafbs processor and nvidia says it's the most important innovation in computer graphics in more than a decade we will get more market-moving news on thursday after the closing bell and that's when nvidia has the story and it will be in the coming days and weeks. >> thanks, dom dom chu. there are two chip stocks to buy and let's go to the charts with chris barron wiverrone. >> let's start with amd and let's put in context where it comes from amd was dead money for two and a half years between $9 and $17. it broke apart the $17 level about eight week oogs and we

think there's more to go here and looking for 25 on amd. it's been a leadership stock well to the s&p, as well and always important in our work >> i think the one that's also getting better here and this is taiwan semi and the second largest weight in the sox. quietly, starting to have the relative during s&p and i think what's important here is you hold the 50-day moving average here with 39 if this is getting better and on its way back to 35, musk holds here at 39 we think skyworks is vulnerable here and it looks like a really big top for us and try to get above 115 three times and coming through here and coming through here and can't do it here and another little top formation going over and we think ultimately down to 80 and the stock trades 92 today and it's breaking down in relative terms. so not a leader and one of the weaker ones and focus on taiwan system i or amd.

>> chris comes over. ♪ ♪ >> all right i will pick up on what mike said about semiconductors and what they indicate about the broader economy and the market he said this is the tip of the spear. it's the ultimate cyclical read on future orders, et cetera. do you find that, is that born out by the chart >> i'm a little skeptical of that i'm a little skeptical of that view i think this has been such a unique business cycle. i'm not sure one sector or one group gives us anything other than one sector and ongroup and if we look at the semi, and it is fantastic and taiwan semi seems to be improving and the sky works is weaker so it's a very bifurcated group to focus on the -- on a relative base e the etf attracts the stocks and

it looks like the sky works chart and it looks like he's rolling over and he's down 16% we're picking up amd and that stock is up 100% and i don't see a whole heck of a lot of leadership other than nvidia. >> obviously, intel, the largest weight in that group, and so i think when we talk about a group like system is or discretionary or tech, we need to think about these thing equally weighted semis are a lot stronger that's true for a lot of groups right now. there's a story out there that market has narrowed and they reject that story and when you look at these groups they're a lot better than the pathway and the charge might suggest. >> so a 10% correction on the markets -- and i don't want to put you in a position where mike said this, what do you think, chris? you are the technician so people want to know, do the charts show anything, weakness

a chance of a breakdown? >> i recognize where we are with the calendar here. the middle of august we have 60 days of uncomfortable with us. so let's keep it down, i think that means something here and i want to respect the resiliency of the tape in what is otherwise the seasonal period. chris, thanks. >> i'm long taiwan semis and the thing i like particularly about taiwan semi is they have the new innovator chip and i like it not just because of the crypto demand, but the other players and even if i'm wrong on one of those levels then i'll be perhaps right some place else. there is a lot of demand for new product and for me the place is taiwan semi. all right. coming up, it's a cruel, cruel summer for bitcoin has plummeted. the whole is worth less than

$2 $200 billion and the former ceo of paypal has been pounding the table calling it a scam saying it is headed straight to zero. the crypto and turmoil coverage is coming up next. much more fast right after this. makes it fast & easy to get to your golf destination. with just a few clicks or a phone call we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks. your digestive system has billions of bacteria, but life can throw them off balance. re-align yourself, with align probiotic. and try new align gummies, with prebiotics and probiotics to help support digestive health.

welcome back to "fast money," it is a sad day for the crypto universe. all of the major coins getting absolutely hammered after bitcoin plunged below 6,000 for the first time since june when the markets are in turmoil and cnbc runs markets in turmoil, as

you know and crypto and we got some inspiration for a new look, check it out and crypto in turmoil inspired by one of our twitter fan, by the way. let's go to seema modi at the new york stock exchange for the details. >> that's right. the sell-off has been intense. bitcoin breaking below $6,000 for the second time this year, and other cryptocurrencies like ether, ripple, lite coin are near double digits resulting in the total market cap of cryptocurrencies to fall below $200 million and that's the first time since november 2017 what's behind the sell-off a couple of factors. investor confidence has been falling ever since the fcc delayed its decision on the bitcoin etf to late september. meantime some of the icos were built on ethereum and subsequently funded with ether

tokens those traders have had to sell their tokens for u.s. dollars to cover their expenses it's worth noting that of the major digital currency, ether is faring the worst the levels to watch there according to technicians is 57.35 and that's the low bitcoin hit back on june 18th. melissa? >> seema, thank you so much. seema modi at the nyse it's pretty ugly crypto is in turmoil >> it is the contrarian made lobs and crypto in turmoil and the markets in turmoil and that's when i want to look for a trading sill n trading signal that maybe we bought it. keep showing it all day long i'm a buyer of that all day long, but the one thing i wanted to point out, what we've seen which is what i saw back in material material, you've seen a huge an increase in short interest up to the point that we saw last april and this chart here showed you what happened when the short squeeze came

along and you have a 50% increase to the middle of april to the middle of may i don't know if i would be selling this market and as a trader there's an opportunity to be buying. >> you have been >> yes, i have been. >> which ones? >> i've been buying across the board. bitcoin is the biggest position at this point in time and that seems to have the market leader and the most use kacases and ths is a risk/reward type of thing we break down below that then b.k. will probably be out. >> the former ceo of paypal came out swinging against the crypto unverse calling bit coin, quote, unquote, the greatest scam in history adding that it's a pump and dump scheme unlike anything the world has ever seen. now he's back with an even bolder call saying bitcoin is headed straight to zero. let's bring in bill harris welcome. good to see you in person. >> i'm delighted that you like buying into weakness because i think you'll have a lot of

opportunities to do that. >> wow za! >> it is going to go to zero >> first, i don't make calls i'm not in that business. >> sure. >> i don't think i said it's going to zero and i said it's going go eventually a whole lot closer to zero than a lot because there's just no value there. i mean, you can sum it up this way. the cult of bitcoin made many claims that it's instant, free, scalable, efficient, secure, globally accepted and useful it is none of those things. >> and this is coming from the former payments great company's ceo. >> the russian hackers were able to buy all kind of ads on google with paypal this year so it works very well and i agree with you, your criticisms are 100% correct and to me, as an investor, those are catalysts for the future we're not going to stay at seven transactions per second and we'll be able to scale as we

have to otherwise it is going to go to zero as we said. my question to you is let's take a step back from the trading of the token because what we're looking at there is the liquid venture capital and it could be worth 6,000 or 20 and the idea that the cryptocurrencies are a software program, do you find any value in that? >> no. and -- >> why >> well, i think the problem statement is correct for instance, one of the things that people who love bitcoin or xrp or something like that is look at how difficult it is to get money from one country across the board to the other. it's slow, it's expensive and all those things agreed you don't need bitcoin you don't need xrp you don't need any of that to solve that problem and what you need are faster networks in fact, there are mae-- >> but people are hardly using

it for that case. >> hardly never. i dare you to find places where you can actually use it. >> it's about 200,000 places you can use it worldwide and there are also minuplenty of people ug it internationally and seagate uses it to move money. >> it's the investment opportunity, right if it's a huge portion are the investment, and if it's a huge position it's less interesting when it's old and boring it's less interesting >> so why in the world should people use it what's the advantage? >> in the u.s., we don't real have a broken financial system, but if you're in a country that has the broken system, it's the advantage of internet. >> i will point out that other major -- the largest industries out there -- sorry, the largest countries out there, china now india, that i have much better

realtime payment systems than we do in the u.s. and so does the eu and the uk. it's not like we have something funki functioning and the rest of the world is ahead of us >> that doesn't mean that bitcoin doesn't have a use case and goes to silver no one uses gold and it's worth $1200 an ounce, as well and there's more to it than just this payment globally, right this is a way that you could have digital goods go from one place to the other when we started amazon nobody thought we'd be streaming movies to a handheld computer >> we have digital currencies that are more stable, more widely accepted and have intrinsic value. we've already got the dollar, the yen, you name it there's really -- it's as you say, not scalable. >> i didn't say it wasn't scalable. >> you said seven transactions per second >> they're working on scaling

solutions. >> they're working on that >> transaction per second and ali pay does 250,000 per second. >> there are coins out there that will do 10,000 and 20,000 this is the investment opportunity and i'm surprised coming from silicon valley that you're not seeing the investment opportunity. >> yes, i believe there's a heck of a lot of investment opportunity within financial technology i've been doing financial technology for 25 years. >> right >> but what we do is we build things that are useful and that are better than the alternatives and i see absolutely no reason why bitcoin is useful. i mean, listen, it's volatility alone makes it useless as a payment mechanism and ridiculous as a store value >> again, i'll go back to that's the investment opportunity and if you look at oil, okay oil's speculation to use case is about 96 to 1. bitcoin's speculation to use is 2.5 to 1 so as that speculation increases the volatility will decrease just like every commodity and

every currency out there and again, it goes to less interesting. >> i'm going to blow my figurative whistle at this point because it's been a great debate because i want to bring in more traders. >> i just have one question. amazon.com from its highs in 1999 to its lows in 2002 lost 95% of its equity value. investors were voting that there was no useful, you know, intent for this business model that at that point sold dvds and books and that sort of thing and this is making b.k.'s point, and that's charmged and one of the most valuable companies in the world and the token that was trading on the nasdaq went to zero that doesn't mean it can increase development hal you -- and you know, why in the world

would it be something of value >> people were saying this about bezos and amazon and the dream that he dreamt up about e-commerce. >> i'm not saying there aren't fabulous visions in the world that should be funded and will be hugely valla usual and have staying power and leg, but you can point to use cases and why they're competitively superior to the alternative in bitcoin's case i can't come up with the single one with the exception of criminal activity. >> it's been a great discussion. thank you so much, bill, for joining us. >> thank you >> hope to see you again bill hair i former ceo of paypal and brian kelly on the bull corner here. i feel like we need to vote on this or something like that. we need -- no, it's rigged >>. >> i would say and that bill does have to say the crypto community has to come out with the killer app and bitcoin can be an alternative courses and we do need to build things that people will use that are better,

faster and cheaper than anything else. >> the comparisons to the internet and the comparing it to an amazon, bill makes a point the problem is bitcoin itself doesn't make any money amazon doesn't make any money either, but actually does something and sell some sort of service. it does -- you were in, like, eighth grade back in 1998 or something like that, but people thought bezos was a shuckster. he was selling something nobody wanted barnes & noble was a great solution why would you order something on amazon.com than when you can go to the bookstore and you can touch it and feel it, and nobody transacts in, right? there's a lot of comparisons here i think bill makes a lot of great point and i don't know as much about it as these two guy, but i find it an interesting intellectual argument. coming up, where is the mart money going? should you follow the hedges out

of big tech? >> plus chinese internet stocks falling, but are these babies getting thrown out with the bathwater so to speak? you'll have the details. much more "fast money" after this duncan just protected his family with a $500,000 life insurance policy. how much do you think it cost him? $100 a month? $75? $50? actually, duncan got his $500,000 for under $28 a month. less than a dollar a day. his secret? selectquote. in just minutes, a selectquote agent will comparison shop

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>> welcome back to "fast money." smart money is getting out of one big group of stocks in particular, the beloved fang names. leslie picker is back to break it down for us. >> beloved for some, but not for

us greenlight, the firm made bearish firms in the tech sector overall, selling some of micron technology as well as twitter. third point dissolved its 757,000 shares of alphabet, the parent company for google and elliott management added a new put position on apple although it is unclear whether that's really a view on apple or simply a hedge. well, not a fang per se. it sold a significant stake in snap with 20 million share which is would have been worth $270 million at recent prices and to be sure not all hedge funds were bearish and johnna added a new position in facebook that were 651,000 shares as the scandal continued to ensnare the social media giant and warren buffett's berkshire hathaway, continued to up its stake by more than 5% to

252 million shares and that equates to a stake of more than $50 billion in the new, now trillion dollar company. note that all these numbers are as of june 30th and may have changed in the six weeks since, melissa? >> leslie, thank you leslie picker back at headquarters berkshire hathaway, upping its apple exposure >> do you agree with that? >> absolutely. it makes total sense he's bought into the right idea. he's seeing it in wearables and services my gut tells me elliott's buying puts to protect the position i don't think it's negative. she talked about that, as well to me it makes a lot of sense. why not? s volatility is extremely low right now. buy protection, own it and that's a great trade >> facebook, yeah. facebook and google are two names that i love and i would continue to like so i agree with that, and snap chat and twitter are two names i would sell aggressively and it lines up the

ducks with these guys. >> i don't have any ducks or anything, but a couple of gooses i like the idea. >> you mean geese? >> no, gooses. >> it's geese. >> whatever. we get your point. what was the point anyway, the one trade i do like is the hedge exactly what pete said on apple, and being somewhat cautious on the macro picture here and why not put some protection on at the very least? >> i'll make a little foie gras over here. >> oh. >> facebook is interesting and it had a big bounce off of those lows and i think, i said this in april and i think a new high will be hard to come by. it did make a new high and the difference now is that we are seeing investors think about this as a much bigger secular ship rather than a single stock story and i would have liked to have seen the stock test to 150 and i think it's a kind of a noman's land and the tough thing about the filings is where do they buy it and that's the difficult part and did they buy

it down in the 155 level coming up, chinese tech stocks are having a rough month and one of the traders are betting on a turnaround in one name and before we head to break, let's check the cramer cam and there you can see the tapestry ceo and the stock was on a tear today after the retailer blew out its earnings report and that interview at the top of the hour ick oustarnd we're live in times square in new york city. much more "fast money" right after this you might take something for your heart... or joints. but do you take something for your brain. with an ingredient originally discovered in jellyfish,

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welcome back to "fast money," the group has been under pressure with the rest of the chinese market the concerns about tariffs with the u.s. just in the past month shares of chinese internet company have fallen 60% and shares of jd.com down 3%, and alibaba also down 9% we should know the earnings reports that came out in this sector and they were disappointing that led to the down craft today at least. alibaba which is the biggest one in new york and the call volume is two times of that put it was one of the few that appeared to be directional in alibaba when the stock was trading at 172.70 an a trader rolled some calls down and sold to close 1500 of the september 185 calls and about to open 1500 of the september 175 calls paying $7.72 for those and the net spread for that was 3.72 and it breaks each a bit higher

here we have a couple of charts alibaba is down 17.5% from the all-time highs made a couple of months ago and it's approaching the key support level going back about a year to about 165. that might be one reason why you may want to define your rick playing for a bounce we have a chart from 2014 from the ipo. it just broke the uptrend from the 2016 lows and my guess, pete or these guys were saying earlier when volatility is actually cheap it makes sense to define the risk if you're looking to make a somewhat contrarian bet and those technical levels is troubling and what's important to remember that alibaba has bounced off this level numerous times this year >> for more options action, check out the full show at friday 5:30 p.m. eastern time. up, in, final trade. day. 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.

okay so you watched the debate between bill harris. is bitcoin going to the moon or going to zero? see where we stand right now it seems like more of you out there are going to the moon. 54%, but the vote is still on. cast it now on our twitter handle at cnbcfastmoney so go and vote >> pete? >> paypal. bill made a lot of good points and he knows his space paypal's going higher.

>> i'm taking profits in walmart ahead of earnings. a little pop in retail and it's a sold for walmart. >> beakers >> check the oil sector, cop. >> smh and the tip of the spear. >> i'm melissa lee thksoran f watching and see bace "fast. meantime, "mad money" with jim cramer starts now. my mission is simple, to make you money i'm here to level the playing field for all investors. there is 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. we're just trying to make you some money my job not just to entertain, but to educate and teach you so call me at 1-800-743-cnbc or tweet me @jimcramer. everybody is fretting that companies with big business overseas will soon see their