this is of course pushing to whole foods of later >> and now a grocery business. and she is making her name with the healthier stilt 3r5perhaps. >> and we have to leave it there. "fast money" starts now. live from the nasdaq market site overlooking new york city's times square you can traders are still s at the desk. off a nine week winning streak, one strategist says there is no expiration on this bull market run. he will explain. plus the oracle of omaha speaking to cnbc on a number of issues, but it is his apple comments that wall street is focusing on. and first we start off with what looks like mission impossible for the market it failed at 2800 back in

october and november, and then for a third time at the beginning of december and today we broke through it. so here we are again same market, not too much has changed. so can it break through 2800, are we heading higher from here, guy? >> about time that we had good tunes. >> fair point. i think that we will rom ovll o. i said it last week. maybe just making a top. but i think if you had asked me yesterday after president trump tweeted about his great relationship with president 1450e oxi and the deal to be done, i would have said probably not given the environment that we find ourselves in and that is what happened is maybe we've reached a point of diminishing margin returns. and maybe we are overextended. tim will talk about the market being overborn and i think this is as good a level as any to call a ton

>> so i have to do something now. do you feel comfortable adding the s&p? it didn't mean that the overbought condition can't dissipate. but look at the semi condukon cs do you want to own the smm north of a level it has run up to five times. so the katcatalyst catalyst is g except for the fact the fed gives us a new reason to try to define inflation and understand what dovish could look like. i think the fed could disturb the markets. >> i think it has run too far too fast and i think there is time for a because that refreshing.

federal reserve chair powell talking tomorrow he has said things that upsets the market and we have a two day talk on the economy which could upset the market not only that, now you have potentially the seldom news events we priced in a lot of fed cutting operates or stopping the balance sheet reduction. so everything to me seems to be priced in to the market. i'd much rather be a buyer when it falls apart, when powell says we will raise rates or when china deal falls apart >> and this is all symmetrical what happened right after the g-20, president announced some sort of deal with china in a tweet without any substance. and where w were we? 2800 and here we are at 2800. so technical resistance.

you mentioned a cyclical sector. you want to see the rebound that never had. but david rosenberg tweeted this, what kind of bull market do we have when we have utilities about to break out to a new all-time high and transports very cyclical, we would like to see them lead, still 90% off of their all-time high so i'm not certain that just because we got to a level where we were in early december where people were very unsecertain tht that is a place ito buy >> we had financials up by 0.4%. >> and last night before the cad any awards which i watched on and off -- >> for the fashions, right >> and for brad cooper

but everybody has a tell and the market has tells so i have to be consistent guess what was higher all day? the volatility index and that closed significantly higher biggest one day move over the last six or seven weeks. i've said before, up days when the virkts is higher, that might be pointed at something. maybe we're starting to see a turn to me that was themost interesting thing that happened today. >> and yeah for the short term when you see something like that, we're bouncing up against resistance, that has to make you concerned. and to guy's point, why not buy puts in this situation nothing wrong with making hay when the sun shines. protect the fort polio and wait for the downdraft. in the long run, we have a president who wants to get reelected, whose report card is the stock market

a federal reserve that is talking about changing the way they look at the world, perhaps change the way they look at monetary policy. in my view that would be very positive for stocks. so between those two things, long run you should be okay. short time i'd be cautious >> and i do like the underperformance of apple, google they have not broken out of their ranges so so i don't believe that we'll get back to the prior highs unless they get going. >> and this is the same conversation we could have had for 100 points going back the last 500 points. so every level, there has been a key level. it has been so easy to say there is nothing left in the tank. and i think positioning continues to be in the up side i think bottom line is you think

about where expectations have had to reassess very quickly, some of the things that let us down and we were outbrchling in the u.s. for a long time versus the rest of the world, the rest of the world has a way to go and i think that could be support e supportive i don't think the s&p gets away from you, but the expectation that we're about to go in another vortex i think is a lot of people think and i don't see it happening >> so we just said the last time the s&p was at 2800 when we had a lot of uncertainty about trade, think about where s&p 500 earnings have come down. expectations are far lower now than they were on december 3 and that is a bullish thing for a setup right now if you think that there is a bunch more clarity to happen on all these issues that you perceive as head winds. so to me that is a bullish thing because expectations were much higher >> but still the underperformance of adga as you put it youit outweighs all of t other stuff. >> here 7600, a huge level here.

so we've had an amazing breadth of a lot of names that are not mega cap names look at where it is stalling out. so we know that the mega a cap tech infrastructure, whatever you want to call it, has really underperformed the broad market. so if we don't have it start to broad out, you won't get to new highs. >> i can take two of the as out and be left with make one stock i'd be worried about apple, we know what is going on. i think it is a company that is having trouble growing their top line after years of doing it people are questioning iphone shipments. i bet that we can get into it later. but i will say that i'm not so worried that aga or maga is not taking us hire because i think industrials have traded well >> but we're talking about three $800 billion market can stocks that have represented a good

part of s&p earnings growth and we all know that amazon has been missing on retail sales number and costs have baybeen going so there is no crystal ball that says anytime soon with the trade deal that all that stuff gets fixed. >> we'll see if our next guest mass a chr has a chris balance -- crystal ball john, welcome back i didn't say it is safe to come back in, it is looking like everybody has gotten over all the stuff that freaked them out in the fourth quarter. which was the price of oil, the deal with china and the recession. those things seem to be off the

table. but we think that lot of the settlement of the chinese deal has been discounted into the market that has been priced in. but we may be surprised to find that the large caps particularly the multinationals which have been lagging, they made have more room to move coming up when we get a dweel we think the deal will be paralleled to nafta, everybody will say it is not a heck of a lot of difference. but progress in the right direction. >> so you say a lot of the deal is priced into the markets, but yet you say there is underperformance in the large caps that could spring to life you're saying that large caps have underperformed so far this year in this rally >> they have they have underperformed particularly the leadership is changed in large caps for example, industrials one of our favorite sectors for the last two years is the number one

sector energy and suddenly come up in leadership from the bottom you've got is information technology which everybody had given up on. and then you have real estate all of a sudden that is coming back so the environment doesn't look frothy but the area that is understand why performing when you consider consumer discretionary and areas of, once again with china, it can could look like the first quarter of 2003 when everybody realized that may, china had an on the book and they were buying chemicals and all kinds of materials to get going again because we think that we will get with a deem with china, we get a rerating of the global economy. right now you have a negative

overhang, expectations of the trade war not only hurting out sued t side the u.s., but the u.s. too. >> and so fed, oil, trade deal, of those, going forward in the long run, what should investors look for should we ignore the trade, is t fed most important, oil? >> the obvious problem is always the fed in that that we have a new fed chair a year later but the obvious thing is he is not the communicator that janet yellen and the ben bernanke were they were masterful in that area so there is radio him for a mistaken appreciation of that fed chair is saying. you have janet yellen says he's doing a pretty good job. you have that event when both yellen and bernanke were on tv with him and i wouldn't say they endorsed him, but saying that this guy is okay but the market never trusted the

fed. but to a much greater degree they did at least have a calmer approach than they have had with powell you'd think it was greenspan again the way they treated powell the next thing would be related to the china deal, china has for the president of china, it is all about 2025 and a protracted trade war will hurt he needs hit best kucustomer and for donald trump, he needs 2020 so likely that it falls apart, a relatively small chance always a chance that we get hid by a cab, but we have to make it home >> all right thanks for coming by and get home safely. >> how you feeling about it willing the streets tonight? >> walking is like -- >> pedestrian way here in new york city where we become very european over the last five or six years.

so the chances of me being hit by a cab on the way home are probably slim. that being said, i'm not nearly as optimistic in terms of a deal gettin getting done china's market has come back and i don't understand why they would be in a rush to do a deal with us when there is so much uncertainty here in this administration i think that we will get strung along. >> because they haven't given anything up. this is not a deal -- >> just buying more stuff. >> it doesn't change china 2502. john pointed out the parts of the are market that i think can continue to run. look at energy prices. fundamentals and in energy are

better because companies are giving themselves an ability to make money again coming up, warren buffett talking ofapple and the best da could be behind it and the biotech boom is on in 2019 but he sees trouble ahead and later, check out ne-yo, the at the time la killtesla killer and we're live from times square

there are stocks that i would buy and i have been maybe accepting a bit because they are repurchasing our smars a s repurchasing our smars ahares a don't want to drift over 10% but apple, i don't see myself selling. the lower it goes, the better i like it obviously. >> that was warren buffett talking to becky quick earlier this morning about his apple shares buffett says he is not selling

or buying apple at current levels and wall street seems to be split only one analyst has a sell rating the stock is trading less than $5 from the average target and t note today called the plan uninspiring. so buffett is waiting for a selloff to add to his position wall street seems to be turning sour is it a sign its best days are behind it? >> i think we've had thismomen with apple for many times. i'd be reluctant to say the best days are behind it the days of the iphone, the and ability to have a lot of subsidies on the iphone. but services business is exciting it may not be as sexy, but it is a multiple that is what you need to now attach to the stock so therefore people that retired

x times cash, i think it should be trading 15, 16 times. so the best days are not behind them >> they haven't really been able to make any acquisitions that were blockbusters. so the chale thi challenge with street is convincing them that the next cycle will be great you can talk about the service, but if you lose confidence in that, it comesback to the refresh cycle and right now it didn't seem like people are that excited about it >> i like quota note from last week saying we believe behind the secret walls of cupertino for the first time the company is struggling to find the answer to turn the narrative around it wants to be a service company and it is not. the percentage tells us -- >> we know iphone makes up two-thirds of their total sales.

so they have an opportunity to replace that revenue with higher margin services and this goes back to bk is saying they won't do that overnight they wanted to be in video, they have not been able to be there they have pay but it is just a understand roing error so the thing is, they are likely going to have to make a big splash acquisition to have a horizontal platform of services. and first year since 2016 where sales and earnings are already expected to be down year over year low single digits. that could be optimistic if china does not pick back up. >> and i read that apple is offering interest free loans on iphones in china obviously something they thought about. and to dan's point, smartphone sales i think were down 3&, revenues higher. but you wonder how long that will last as well. so is it's best days behind it no but stands to reason that we're smack nlts middle ofin the midde

>> and for more on ale and all things warren buffett, med head cn cnbc.com here what else is coming up about. ne-yo is in overdri drivdri he says he is selling more than just an electric car we'll tell you what he said that has wall street so excited about the stock. plus several beaten down stocks are making a big comeback could these names trading back turn out to be dime deals? traders weigh in have you ever worked with dr. francis? oh yeah, he's ok. umm... just ok? guess who just got reinstated! well, not officially. nervous? yeah. yeah me too. don't worry about it, we'll figure it out. i'll see ya in there! just ok is not ok. especially when it comes to your network.

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welcome back biotech stocks are soring tooks to a deal in the space is this drug company executives head to capitol hill tomorrow to face a committee on drug pricing. biotech on track for its best quarter since 2013, but could e regulation derail the biotech rally. so two components to this. let's start off with the deal part of it >> there is m&a in the space >> which would be great for the space overall. and then you have the flip side the clamp potentially of government regulation on pricing. so what wins out there >> great question. and i believe that the bull case will stay intact headline risk is significant, but the science is too

compelling for these stocks to have a significant turn to the down side. we did a power pitch on a moonts or so ago and the he company that danieled at me broke when it was 93. closed today at 143. no genius, but in the space the science in these companies works. and in-it gt i think it goes hi. >> some go oits ut of business d some go higher >> the ibb over the last five year, you have annualized it under 5%. not cherrypicking numbers. but the last two years is pretty good looking but despite being bullish on a

lot of these names, i have to say it is frustrating. i don't see -- >> the large ones like a -- >> yeah, celgene, exactly. >> i like the smaller ones i'm not as smart as dan or guy, so i look ibb, that tends to have the smaurler oller ones. how do you grow, the m&a you want to be in the smaller ones you have a nice risk reward entry. >> and at the moves we've seen today, at the back of this particular deal, what do you say? >> bloomberg was a story year and a half ago and i still think there is room to the up side i understand people say valuations are crazy some companies don't have revenues but the science is behind it not all are created equal, but a

company like amgen very reasonable valuation, tremendous sheet. a company that can't get over $195, $200, but i still think there is room there as well. >> and our next guest says the charts are pointing to trouble for the group. carter worth is breaking it down >> too fast as some of the areas you are talking about. this is maybe the most so take some action before as they say someone does it for you. percentage change from the low on december 4t tth xbi, up the s at 37. ibb, cap weighted toward celgene, so forth, up 26 there is the market up 20. and of course hemalth care up te least. so let's zero in on biotech in

particular and the real problem is, and tim you referred to this, this has been poor relative performance for quite some time. here is the chart. i see something that is just stuck at prior highs now, if we put in relative performance, this is the real issue. if i were to draw a line, there was alpha coming off the low yes? because what has happened since this is that basically after the initial spurt, you have had relative underperformance compared even as you basically trended higher and this is important. i have compared to the xlv which is its broad sector. so ibb not delivering for the past basically six, seven weeks. and speaking of not delivering, here is a relative chart same chart and let's pull it back and watch the following the peak actually was almost five years ago and basically

what we've had is this, nothing but underperformance now, another way to draw these lines would be as follows. take it all away, and put it in this way we are nowhere near our lows, we are above, but look what has happened new relative lows. so if one is looking to get overweight, nothing right now that suggests that they ever escaped from the weighting in the big heavy names. individual names, sure you get one bought out, you win. >> come on over, carter. ♪ >> this is not the cannabis segment. >> they are regular gummies. back to the charts how does the xbi look? >> so if you look at the last one that i had there, the xbi which back and approached the

highs again and has something of a double top obviously it has been the small cap that if you are going top on to be in that area has been the winner because the big ones have the problem of size, of innovation, of return on capital that is just not there number one performing stock bar one is lox it was $10 five years ago and just for the out for $235. number one performing stock in any index. that is the cream when you are investing in biotech like today, there was a news item or two. >> 2800, we failed at it once again, so what does that portend? >> we're stuck here is the thing. in-there is a lot of signing of import to the rally over the past two months. i would call it a panic. just as we had a panic out we panicked in november/guess,

and -- december and a panic in the market back at the point which -- >> we could have said it about 2600, 2700, now here at 2800 what does it take to get above 2930 what would you need to see to start to participate >> one thing it would require the super catch names to participate and google and microsoft, to some extent netflix, apple, they are not coping, they are not performing women they would have to come play >> so combination of faang and maga >> yeah, whatever acronym. >> we use making ga oyouse maga. >> people saying that the trade deal is not priced in. boeing is probably the poster

child and say if it is not priced in, what is priced in >> i'm with you on that. meaning there are a lot of securities that have moved up to such an september that extent t the classic sells news once the appreciation is already cooked in >> is that what the chart looked like to you? >> wing gapped out of range it was in. bat pi caterpillar, i'd pair them >> all right thank you. coming up, what as investors so excited about the nio stock? and general electric showing chcaley life and passing a ke tenil vel. we have the details.

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handful ofist stocks makinga can back k dom chu has more >> and stocks have fallen but on the rise again

take general electric. the stock of the day in the s&p 500 after it said that it would sell its bio health care unit for around $21 billion ge will use to right size its balance sheet. it has rallied back strongly to a double digit share price and snapchat below 5 bucks a share, but it got compelling for some and shares now back above 10 bucks again for the first time since tent and then you have coty was helped along brian offer by the biggest share holder to boost its stake after a steep share e decli decline. and now each of these stocks has had massive percentage gains from ultra depressed levels. so do they still have anything left in the standing in one

other stock that we'll watch is nof ford motor, questions about what it will take to get investors excite the again still around 9 bucks right now >> and thanks, dom so do any of this look like perfect tens trade it or fade it. let's go through these names giant, ge, what do you do? >> fade it good for tim, good for steve grasso and dan nathan who had a bullish play in a being said, big volume day. yes, they sold it for a lot more than they nothought that they would get. but now left with a power which is that they can't figure out. so how am i going to figure it

out. so great run off the low problems still exist i would fade it. >> and so i'm going to trade this which means that i will buy it it will be excite willing, co, . so progress moving faster. i realize the power business is a big issue, but they realize that it is a big issue they were cutting deals for three to five years lost losing deals. they are changing that mentality. they have an order book and now some parts look significantly better energy as sets are you saunderv. >> so what do you do like xwrat great, you've rel duced your liabilities and what are you left with. the rally is fantastic

take your profit and fade it >> sneaky. >> all right dan is up next snap getting a boost on its android app launch >> i'm going to trade it investors and analysts have hated it norm you'd sally you'd say make but i think this is unique and they haven't really found out what their niche is. and they may found what that is on the android users so i think the stock has tremendous momentum and if you saw this company start to kind of accelerate revenue growth and then decrease losses, it should be more valuable >> and i'm a buyer of it

i think they have a window of opportunity here, one their big competitors is distracted with a lot of other things. snap has a chance. it is a small chance, but they have a chance to grab market share. maybe in android thing will help them out >> and so a unique platform that no one wants to use. the reason the stock has rallied is there 15% short interest and instragram is eating their lunch. i'm fading this. >> what other industry do you want to do you in, one that kids are using or the general electric that not even your grandfather uses >> i didn't think that we'd have a fight over snatch. >> funny how you never know. >> you never know. like a box of xhok lchocolates a beauty stock, but a beautiful

stock? >> i'm fading this would be. the bottom line is this deal, they are the only buyer of the stock and they won't take it out entirely they can't other than more than 75%, so i don't think that they are now the buyer of last resort the global story, i think they got ahead of themselves. >> and let's take general lick despite the rally, options market is betting it has come too far too fast so what is the options action? >> just one trade in particular. but options action generally 2.5 times average daily volume but there was one trade shortly after noon a bidbifer o eof buy0

thourkts of 9 august 11 puts and interesting to see that price action on a day where the stock gappedup sist sistic -- the stock failed right below the fall and look at the down trend it also failed right there so when you are thinking about kind of how to lock in some gains if you are long the stock, some of the technical levels are willing sw interesting ways to do it. carter worth ird gdentifies some good levels. still ahead, nio sha ichlnis storing. what has investors so excited.

and soal shake shack is down we'll bring you the latest we'll bring you the latest i don't know what's going on. we'll bring you the latest i've done all sorts of research, read earnings reports, looked at chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪

time for a little fast take. nio featured on 60 minutes last night, the ticket to a new lifestyle and showed off the lavish perks come with the brand. nio shares soaring off the interview up 10% to its highest level since shortly after its ip on that. beating tesla todown around 10%. >> there is absolutely competition. i don't think that they are a short term competition tesla's competition is itself right now. but that is for another segments nio their big key is their second generation bhatry

battery that will be the sign that they are a competitor to tesla. >> and this one had a 9 build market cap and only sold 10,000 cars last week so really a call on electric vehicles in china. there r. massi there are massive incentives for this one to work it just broke out today and i think you know where your stop is, $8 to the down stiuwn side. >> is this like tesla eight years ago? >> in thatstory even the ceo

admitted that tesla is the aspirationas pi pirs a per operational brankd. they are both hit it together. >> and in this market, tesla if they with k. pl can pru tho produce those calls, a call market they still ran up against can they produce them with a decent -- at a decent cost >> and a mass market car >> i means same questions will coming up. >> and the stock, can it double or triple in the meantime. you put it in a drawer the tesla -- >> capture it in a box >> but tesla is like a venture capital deal and this is the same type of thing you're making a long term bet on

a big change >> and there was a great movie called firefox he seal steals this russian ple and you could make the thing on the dash board but you had to speak in chinese it would an miserable car for me but for the driver last night, it was fascinating great movie. >> sounds amazing. shares of shake shack still lower. is it about to lose its crown. and there is jim talking about the one thing that warren buffett needs to do to safe craft. frsz [leaf blower]

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. we have an earnings a lot, shake shock down about 1.5% of a sister ho ter hours. kate rogers has more >> they beat on the top and bottom lines same store sales increased by

2.3% and they have opened their 200th location an important milestone but there waser than expected guidance and saying in 2019 same stores sales will be 0 to 1%. and still planning to open 36 to 40 new shacks this year. and the ceo talked about recently opening up the first main plan china shake shack. 2019 will be the largest year including its office in hong kong they have had struggles with labor and wage pressures as well as traffic woes. so here is what the ceo had to say on the call. >> the significance head winds around labor costs continue with double digit wage increases and

a competitive labor market and increasing regulations >> the stockstill stockstill up% >> and so here is where we stand. restaurant brands up over 20% red robin up 15% mcdonald's falling behind up just 3%. >> what goes on at red robin >> gourmet burgers the red wine milk shake. >> but i got two words for you chicken bites. that is what athey introduced, shake shack. so up 2% that is like a god send because

they are set up. >> and here is the point, there is so much competition out there. we put up four different publicly traded companies. what about all the other burger competition. they have labor cost problems, food inflation problems. i love shake shock, loake don'te the stock. >> i worked at shake shock but stock has been in a down trend. with that said, i'd rather buy it above 55 and defend this d n trend line that we're in and the labor cost will cut into margins significantly. >> up next, final trades

final trade. tim. try mexico eww. >> and buy insurance when you can, not when you have to. >> and i like it with an $8

stop, nio. >> red robin yum. >> that does it for us see you back here at 50.:0 "mad money" start right now. more fast money. "mad money" starts right now with jim cramer. 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 isn't just to entertain but to educate and teach you call me at 1-800-743-cnbc. or tweet me @jimcramer. are we too fixated on china? are we too worried about whethe we get a trade deal? over the weekend after a flurry of tweets the president granted the people's republic a stay of