sunday night, we haven't had trade for a week in china. >> we keep hearing the consumer is in great shape. that should help. >> that does it for "closing bell." thanks for watching. have a great weekend. >> "fast money" begins right now. "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square, i'm melissa lee. tonight on "fast" stocks under pressure again today and there's one winning sector the chart master is sounding the alarm. he will be here to break it down. plus it is a story all of wall street is talking about amazon ceo jeff bezos including "the national enquirer" of blackmail. we start with stocks staging their longest losing streak of the ear. the dow falling for the third day in a row, managing to eke out gains for the week but take a look at a potential canary in the gold mine. get it

gold is surging acti, even as ss climb back worries over global growth have them digging for safety. just how worried should you be >> what are we listening to? >> kanye when they ripping the bell that means yes. i just learned ye is a huge "fast money" fan no, that's 100% true the whole kardashian west family watches it and i will tell you, tim is going to come paback and be hard i'm here to tell you, b.k. will agree, look at the move in gdx since basically, i don't know, early september. it's gone from 17.5 to 23. biggest move we've seen in that index in quite some time, bumping against levels we saw in july i'll give you a little anecdotal story, not that i like to do this but i will. recently you see what's going on with venezuela guess what venezuela did, b.k.

>> they took some gold. >> they askefof england, we want $1.2 billion of our gold back you know what they said? no, doesn't work that way. i am telling you now that central banks are buying gold in ways they haven't done it in decades. gold in my opinion going higher. >> we know that russia is buying gold we've seen that just in the stats out there. but the other thing with gold, i'm not 100% sure it's a warning sign but think about the probable outcomes we have here for the economy. we have some kind of a china trade deal and the global economy turns around what happens then, the u.s. is at full employment, the potential for higher inflation is there what happens if none of that happens and europe continues to crater, china continues to crater and the u.s. economy catches a cold well, then the federal reserve even today said we're thinking about doing quantitative easing when it's not even an emergency. i think that's what gold is telling you. it doesn't mean that you have to have runaway inflation, but it does mean a lot of players in the marketplace are predicting

inflation, especially when the dollar isn't down. that's the interesting thing gold is up 12% since august when the fed floated this inflation targeting thing and the dollar is flat. so this is a pure demand for gold story. >> so i don't think that the moving gold is a sign of inflation. in fact if anything, i think it would be very hard to argue that we don't have a ton of deflation. look at the credit bubble that effectively burst. we haven't taken that cancer out and it's still wiping us out so what gold is doing is, it is possibly of value when people are looking for other things and diversification. we know the market has been looking for that i would say be very careful on gold because gold has been a widow maker right here look at 2016 a lot of heroes in the gold space until they weren't they got destroyed right at these levels gold has done basically nothing in the last two and a half years if you ask me. >> just because it hasn't done anything doesn't mean this isn't the time it starts doing

something. you might not even believe it's a store of value there hasn't been a lot of investment in gold so you have not a shortage but certainly you don't have that investment that you used to have so there might not be as much supply as there used to be there are multiple reasons here for this gold rally. >> so i think mel started out the conversation is it a canary in the gold mine. >> nice. >> what does it mean for the broader markets. >> i think you guys went off the rails a little bit the kanye west thing was a little weird i look at the 10-year treasury yield at 2.63%, down from 3.25 just a few months ago and i say to myself that is not good for risk assets globally. >> what do you think the central banks are going to do? >> listen, i don't know. >> i do. >> if they did ban-faan about-f, the credibility is gone.

at this late stage in the cycle, i just think that the next move could be ease. i just don't think that's good for risk assets. so i don't think that's good for the stock market. >> if there is a sustained amount of inflation out there, let's call it 2% or 3% or if the fed targets 4%, they said they want to have a little higher inflation. >> when's the last time we've had 3% inflation it hasn't happened in decades. it's not going to happen it didn't happen when they took rates to zero, when the heck is it going happen? >> we didn't have full employment at that point in time we had to go from 10% to 11% unemployment down to here. >> gold guys are just -- i don't get it it's one risk asset, it's tiny and really not telling us anything about anything. >> of course it's telling us -- it doesn't have to tell us about the stock market but it can tell us whether or not -- >> have a 2% gold allocation in your portfolio. >> why not have more why does it have to be 2%. >> anger on a friday. >> go back to your semis how do you like that. >> could it be as simple as

we're seeing a bid for gold because people wanting to diversify away from risk assets because they're concerned about what's going on with global growth and the markets at this point? >> yes. >> it has to telegraph about something with inflation or deflati deflation. >> i would point to the last time gold made this kind of a move in the first and second quarters of 2016 so that is why gold is rallying. gold is rallying because, first of all, the dollar is in a holding pattern. rates are falling. and that's an environment where people do want to hold on to a store value. if gold is anything, i do believe it's that. whether that's something to invest in, dan, that's your criticism, why even bother with it but that's an allocation question why is gold rallying we are questioning global growth that was front and center this week. >> yes, and it's also a central bank credibility thing when the u.s. about-faces in the course of a six-week period when the stock market went down 10%

to 15%, i think central banks will get accommodative again, maybe currencies globally will get torched and maybe there is a rush to zero in terms of sovereign nation currencies and gold is the place to be. central banks without question are buying gold. there's clearly something going on because it's rallying at a point in time when historically it really shouldn't. >> i would just say don't ignore what's going on in the gold market whether you want a 2% allocation or much higher allocation, there's no hard and fast rule how much of this you have to buy, but gold is going up at this point in time so you have to know about it. >> and so isilver. also copper actually held its ground, which is dr. copper supposed to be a sign of the economy. but brian also talked about the lack of investment in mining and mining businesses over the last ten years. copper is probably the one place where you have -- >> when did the rally in gold start? >> august 15th. >> august, right >> b.k., my god. >> you know what happened that day. >> what happened is the federal

reserve was about to have the jackson hole meeting and jerome powell delivered a speech about inflation targeting and potentially tolerating inflation above 2% in june they'll have another report on that they're doing a study on it now. they announced it in november when gold rallied again. >> central banks this week around the world, that includes feds kaplan saying we'll take a lot of heat on inflation the bank of australia going from a hiking mode to a cut and essentially all on china you have the ecb questioning exactly what they're going to do and rates that went extremely negative around the world, especially in japan. that's the story of the week. >> tim tying it up that was well done. >> despite being the best performing sector year to date, the chart master says industrials are heading for a breakdown. carter worth is at the plasma. what are you looking at? >> maybe they have come a little too far too fast, best performer. it's a cyclical trade, a beta

trade, and it has performed in lined with its attributes. but i think take profits, do something. put it in perspective. the various etfs, there's industrials on top, energy, tech of course, market down here at 17 even if i put in the iwm, small capser here around 20. it's just too much of a v from my point of view, but let's look at some charts so this is the ricochet. it is a virtually symmetrical after the plunge, right. this meaningful give-back and we are back to the scene of the crime. that is what overhead supply is defined as so i'm going bet this is not only going to falter here, but possibly falter in a decent kind of way and pay on an absolute basis. but then look at relative. this is the real important part. so throughout all of this, in fact when you were making a high and then attempting to make a new high, of course relative performance poor and not randomly, it has failed

at this relative performance down trend line over and over and we're right here again and i think we're going to fail yet again. put this in a little longer term perspective. this is that period of relative underperformance, but this is over the entire bull market. so you embrace cyclicality and risk and beta. all you got was a market performer unless you caught the initial move off of the low in '09, which is the nature of something cyclical so for market performance with higher beta, that's called un r underperformance what we really have is a series of well-defined tops i'll put in the lines. it's not inspiring and i think if you've got great profits, you should do something about it trim, sell. >> carter, come on over. shelby will bring the chair in thank you, shelby. >> is carter going to be on options action >> of course he's a core cast member of the

options action we are having a discussion about gold. >> i love gold. >> you love it >> yeah. >> let me ask you this. >> that's right, carter. >> easy guys get a room. >> what you're saying about industrials and the direction of industrials corresponds with this narrative that gold is signaling some sort of trouble ahead or economic slowdown or et cetera when you take a look at the charts, is there any correlation between the narratives >> correlations are sometimes accurate and sometimes spurious. the biggest story in the market right now is that ten years swiss paper went negative in november japanese 10-year paper went negative in january. german paper is flirting with the same thing and 10-year government money in the united states is going the wrong way. this is not a positive thing it was originally thought as an elixir for the market. now it's not now it's something that's bad for the market, i would think. so i think gold plays into that. >> carter, back to the industrials, the xli really interesting chart like you saw the symmetrical v

reversal here. the top two components of that have made new highs. boeing has just blown out. and then you have -- but right below that, below the top weighted things, there are stocks that accounted really badly, like honeywell, like mmm. do you want to pick on the losers or just go to the etf in total? >> let's take cat and boeing boeing has broke out in a big way. once you break out, you've exploited some of the potential, if not all of the potential. so boeing is not in a position to help the industrial sector, it's actually in a position to fall back. the others have ricocheted so the reality is that there's not a particular individual stock in a good position there's ones that are struggling or ones that have had a lot of potential exploited. >> carter, i'm curious, when you look at the chart, is there a way that there's a pause that refreshes, a simple retracement of what we've seen or are we

going to new lows. >> the sequence is the sell-off is the primary event and the ricochet is the secondary event. so the question is do we test the lows not only industrials, but the market in general. million dollar question, i think there's every chance we do. >> thank you, carter we'll see you on "options action." i hope somebody makes a meme of when tim pokes the lemon lime snake into carter's pick. >> is that different than a gif? >> isn't jif peanut butter >> sort of i'm not as cool as you are so boeing went from 300 to 400 in a month that's a pretty significant move for a company of that magnitude. i think it's going to stall here caterpillar is the one, dan mentioned that it bottomed out at 118 around christmas eve. got up to 138. on a decent tape it's right back down to 127.5. that's telling you something in my humble opinion. coming up, more carter worth. the chart master says there's

one sleeper dow stock that's heading for a big breakout next week he'll explain. plus, it was a ceo op-ed heard all around wall street but did jeff bezos do more harm than good for amazon we've got the details. a number of big earnings next week. the traders will tell you which names could shock the street much more "fast money" right after this n. you should be mad at forced camaraderie. and you should be mad at tech that makes things worse. but you're not mad, because you have e*trade, who's tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. don't get mad. get e*trade's simplified technical analysis.

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talk about ceo omg amazon's jeff bezos shocking all of wall street including "national enquirer" of blackmail and extortion over pictures of his affair let's get to deidre bosa. >> in that bombshell blog post bezos says american media threatened to publish revealing photos unless he agreed to stop his investigation into their coverage and state that there was no basis it was politically motivated. ami recently did a deal with the justice department over its involvement in hush payments aimed at helping then candidate donald trump now new reports say that federal prosecutors are looking into "the enquirer" violated their agreement with its dealings with bezos. the latest could increase tensions between the president and bezos. president trump, of course, has publicly antagonized him, but there's been minimal impact, at least so far bezos' net worth has jumped by $60 billion since trump's election leon cooperman, an ami investor

who also has the ear of the president says that he stands by amazon and bezos who he calls a fabulous ceo and person. another amazon story that we are watching today, the company's plans for its new york city headquarters "the washington post" had first reported this morning that amazon was reconsidering that plan amid local opposition high-profile critics like u.s. rep alexandria ocasio-cortez have questioned why amazon needs billions in incentives while governor andrew cuomo, who fought hard for the project and others, argue that the economic impact would justify things like tax breaks a few hours later, i want to note a "new york times" piece citing sources says that amazon has no plans to back out we did reach out to amazon and spokesperson didn't confirm nor deny reports, simply said they're focused on engaging with their new neighbors. >> thanks for keeping on top of it so is jeff bezos putting amazon in the cross-hairs over the fallout of his affair?

dan. is this a shareholders' matter at this point? >> it's a shareholder matter because for the last ten years we haven't heard a lot of jeff bezos. they have been doing what they do and don't really care what investors or wall street thinks about what they're doing now all of a sudden they're all over the place i think there's a lot of things that come out. there's nowhere that says a ceo of a publicly traded company has to have a certain level ofmora authority. i think he gained a lot of stuff back by what he did last night i had a lot of people say jeff bezos is my hero standing up in this way so it's overshadowing the bad act of the cheating and all that other ways i heard that a lot. >> i've heard it too it sort of amazes me we had jeff sonnenfeld and he was calling him a victim he's a victim of alleged extortion, but he was the one who put himself in the position in the first place and did -- i don't know if you want to call it immoral or wrong or terrible judgment acts. >> well, if you think about the

dynamic with "the washington post" which has been going on with washington for how long really since the president was elected and it hasn't really had an impact on amazon. if anything -- look, amazon's biggest issue to me is the regulatory environment where i know it's difficult to agree that they're dominating any one sector that there could be antitrust but there's an argument amazon is overstepping and they're not in business to make profit but put other people out of business while they essentially assert themselves. i think that is at least the dynamic going on on the regulatory front behind closed doors. that worries me much more than this. >> i would just say jeff bezos can add one more thing to his resume he's great at pr whether you like him or not. >> this was a great pr move? >> for him we're not talking about his affair, we're talking about the fact, oh, look at what he did, he came and exposed ami. >> that's why we're talking about it because there are pictures involved.

>> if you think about, look, some of the things that have come out about the white house and some of this stuff and with other ceos, i think the stock market doesn't care. the stock market doesn't care about this kind of information i think it's actually pretty healthy. >> why do you think amazon -- i'm asking this just -- why did amazon underperform the nasdaq 100, underperform the nasdaq and underperformance in faang. >> i'm not looking to dance around this. you have to wonder at what point -- what mr. bezos is probably saying is he's been targeted by the administration so at what point is there something that comes back at him. does the trump administration reignite the feud with amazon and is that potentially negative i would submit there's potential for that to happen, yes. >> i think what investors are focused on is the fact that last year sales grew 30% year over year this year they're expected to grow 19% year over year when operating expenses are going higher that's why the stock sold out to earnings, that's why it remains

weak the rest of the stuff is a sideshow it could get nastier let's hope it doesn't for the shareholders' sake. >> for more go to cnbc.com you're watching "fast money. here's what else is coming up on "fast. ♪ i'd like to buy the world a coke ♪ ♪ and keep it company >> ah, yes appeared the chart master would like one too he'll explain why the stock could be about to pop. plus, it's not over yet. a number of big stocks gearing up for earnings next week, and there's one stock that traders say could be the big winner. e got those details when "fast money" returns right after this break hi. this is the man that's going to check your eyes grandma. cognizant ai solutions are helping healthcare companies advance diagnostics and prevent blindness atients with diabetes. everything looks good. you have beautiful eyes.

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oh, wow. you two are going to have such a great trip. thanks to you, we will. this is why voya helps reach today's goals... all while helping you to and through retirement. can you help with these? we're more of the plan, invest and protect kind of help... voya. helping you to and through retirement. we've got a news alert on third point dissolving a couple of its positions let's get to eric for the details. >> dan lobe's third point according to the latest filing that just came out showing at least three big positions being removed from his portfolio

1.25 million shares of netflix gone 4 million shares of microsoft gone 4 million shares of alibaba, those are all gone based on the end of december trading. who knows, he might have bought back in since then but that is the latest filing from third point. back to you. >> okay, eric, thank you that quarter is an interesting quarter because we had quite a lot of ups and downs captured in that three-month period so it all depends on when that happened and we don't know that. >> yeah. and 13-fs are useful but not well timed with alibaba, i'll talk about that they have been one of the best performing stocks year to date in terms of a v, this has been a v plus this probably outperformed the market i think that was one of the most popular trades in 2018 and i think there was enormous pressure they just announced those numbers were fantastic i'm long the name. >> microsoft sticks out to me because that's really defensible -- >> because it's the "m" in maga. >> that's starting to catch on. >> with who? whom

>> i had a hat. >> microsoft is one of those big mega cap tech names that sold off after earnings i think it trades really well here it's been between 95 and 115 to the upside over the last three and a half months or so and it's kind of found a home here. to me that sounds like it's pretty defensible, especially if we start to see a reverse in global growth. >> netflix quickly a couple of weeks ago i thought it would go down and i was wrong but netflix continues to fail at the 350 level. i think it's going lower. >> final trade time. timmy. >> cisco is a big name for the tech sector. i think their exposure is a strength i am long the name. >> trigger warning for dan, you buy old. if you don't like it, there's a half hour coming up, knock yourself out. >> dan >> we do the puts, we do the calls. >> a couple of trees thrown in there. >> we're going to talk banks i think the underperformance

over the last year is kind of telling. >> guy. >> he said he's more than happy to appear on the show. >> give me your final trade. >> i'm in the b.k. camp. gdx, that is breaking out, sucker >> that does it for us see you back here monday for more "fast." do not move, "options action" starts right after this break. hey, how ya doing? uh, phil. are you guys good with brakes? we're ok. just ok? we got a saying here. if the brakes don't stop it, something will. that's not a real saying. it is around here. i wrote it. just ok is not ok. especially when it comes to your network. at&t is america's best wireless network, according to america's biggest test. now with 5g e. more for your thing. that's our thing.

the guys are here getting ready behind me. in the meantime here's what's coming up on the show. >> do you like coca-cola >> the chart master sure does, and he says the sleepy dow stock is about to pop when it reports earnings next week, and he has the charts to prove it. plus, nvidia shares have plunged 50% from the highs >> i declare bankruptcy! >> not so fast because mike khouw says the worst it behind it he'll break it