it's been an incredibly tight range for the last six or eight training days. >> the jobs report. >> we have a jobs report friday. >> we will look forward to that and much more alale analysis to come. >> "fast money" begins right now. live from the nasdaq market site overlooking new york's times square, i'm scott wapner in for melissa lee tonight on "fast," stocks stalling out, but ubs's keith parker says don't worry, new highs are coming he'll tell you where to find the best bargains in the market. plus the ge shocker, the stock falling back below $10 a share. we'll tell you what the ceo said not that long ago that has investors so worried. first, we start with global growth fears weighing on the mind of investors. kyle bass just the latest to sound the alarm. listen >> so it looks to us like

southeast asia is headed for a recession in 2019. europe is headed for a recession in 2019. and the u.s., the kind of fiscal impulse from our tax stimulus is going to be wearing off towards the end of 2019, where i think the u.s. will -- you know, the world will not have a recession and the u.s. keep growing, so i think you're going to see the u.s. have a minor -- a minor pullback in 2020. >> are you betting on u.s. stocks >> i'm not i think given the scenario that i just gave you, what i think is likely to happen is u.s. interest rates are going to head back to zero in 2020 >> all righty then so should wall street still be worried about a global slowdown and is the best already in the stock market this year tim seymour. >> well, kyle bass is a smart guy, a guy that likes to always be on the bearish side, at least as situated to the global economy.

he's been talking about asia for a long time. it's actually been right but this is the point. is it surprising that china has been contracting in terms of their pmis taiwan, korea the night before at three and a half year lows on their pmis i think we know this now, the question is how much is the confidence level that came out of the trade war those most exposed to cyclicality, you can say that with taiwan with semi conductors, et cetera. this is where we are, though six months ago we were talking about the world overheating and the fed have to step in and be too hot. i don't think things have changed that dramatically. i realize data has priced that in but i don't think we'll be at zero rate next year. >> when we were worried about the world overheating, it was really the u.s it was the course of our trajectory and our rate increases. in europe people were worried they were taking qe off the table too quickly n asia,

there's some systemic issues there. i think the biggest takeaway from what kyle bass said is if asia is headed into a recession, if europe is on its way to the recession, the notion the u.s. will avoid that is probably slim to none. the one issue i take is he expects u.s. stock to have a mild pullback. we had a 20% peak-to-trough decline in q4. we made a lot of that back in just the first two months of the year or so i think the chances, whatever you think mild is, the chances of a retest of the low, if we have asia and europe in recession in the back half of this year is very high. >> i'm curious, though, we talked about 0% interest rates i don't really see that happening. it could does that mean there's a put in the market, though there was a fed put for a long time when interest rates are zero. >> isn't that the principal reason that we went from christmas to where we are now because of a belief that powell had your back, so to speak

>> i think it was that he stopped pressing on your neck as opposed to having your back, to pick a slightly different metaphor for a long time, remember the tepper rally was predicated with all -- >> david, not me. >> smart tepper. >> so i don't know does that mean is there another put there? i don't think we'll see zero interest rates this year, but we could. >> zero interest rates look, i think zero interest rates is a concept that he's talking about. we're not going t zero interest rates. at the lows before the election we were at 136 in the summer of 2016 we're not going zero how about the u.s. deficit that we're running. do you think people wanting to buy our debt in a slowing economy? do you think the 10-year will go to 1.36 again? i don't think so how about oil at $65 these aren't telling me the world is going out of business >> part of the implication bass

makes is that the fed's next move is a cut if not more than one because as dan said the idea that you could decouple yourself just falls through the floor. >> yeah. i think janet yellen even said the same thing, that the fed's next move could be a cut i don't see that happening any time soon. i don't think economic data in the u.s. is that bad it's definitely deteriorating, it's not great, but at the same point in time economic data is not bad. all we really need is we need another positive catalyst right now for u.s. stocks. i mean the fed is on the sideli sideline, check. earnings growth -- >> what's that going to be then? >> we need a trade deal. >> trade deal. >> and we need earnings growth to resume. everything is so low, but that means the hurdles are low. once we get a trade dealdone and earnings growth can actually resume, i think the market is going to go higher >> you don't think that's already in the market, this notion that you're going to get a trade deal >> mostly in the market, i do,

but one thing about that, if we do get a trade deal, talking about problems and a slowdown in asia, they're going to be just as much if not more a beneficiary than we. so i could see the convergence being from their economies improving which would be good for us. >> i think you're going to see a rebound in china, personally. >> well, they're going stimulate -- >> they are stimulating. >> fiscal, monetary, credit, so there's an opportunity for china to rebound when that demand from china rebounds, that's going to help the other international economies as well. i'm not as pessimistic. >> i still feel like this is a now what market, right this big move, there's optimism about trade. maybe some of that today is a little more tempered the economy is not great >> let's say what have we heard out of china so far is that they're going to buy more of our stuff. what's been our stuff that had these tariffs? they have been filled in other locales, right

so when you think about it, we're just pushing from one point to the next. if we don't have global growth, china just told us overnight that 6.6% growth last year is going to be between 6 and 6.5. just look at the trajectory because that's where it's been going for ten years or so. if you don't have china growing, even if you have a trade deal, even if we are able for them to buy more of our stuff, it's going to be coming away from some other place where they were buying it before so to me i'm just saying if you have europe just stagnating and you have asia just really dealing with a lot of excess, the likelihood that the u.s. will pull us out, the globe out, it's not very likely. >> there's no pollyanna view here, a lot of bad stuff can happen, there's a lot of risks out there. we've crossed the fed off the list and said trade deal think about what the trade deal did. it basically took global synchronized recovery one year ago. cap ex spending was off the table and business spending was off the table and that's around

the world. i'm not saying that reverses immediately. but to say that a solution to that -- and to be clear, what is this trade deal? it leaves us back where we were. chinese is getting what they want the administration is probably getting what they want i'm not sure we're getting what we want which is protection of ip and technology and control of the internet for the 21st century. we're not going solve that. >> do you think the market cares about the deal itself as long as it just gets a deal? the quality of the deal? >> no, i don't. >> scott, go back to december of 2017 we had this tax cut, we had this huge rip from mid-december into the highs in january 26, 2018. what happened after that we literally dropped 10% the next few weeks and then spent the rest of 2018 really churning once we got back to those prior highs, we dropped 20%. if you take out some of the extreme movement, there's a strong likelihood that since that tax cut, all that fiscal stimulus which was supposed to be the massive catalyst, we've been going sideways for about a year and a half now.

>> what was that sideways about? it was absolutely about the fed and about trade. so january 26, 2018, is when markets peaked sentiment and positioning -- to me, again, i don't know that we have to replace that i agree we're late cycle, seeing slowing growth earnings are hardly impressive to tell me that it's falling off a cliff so dramatically, i think europe has bottomed and i think china's data has bottomed. >> there's a view as well and there already is really that earnings will trough here in the first quarter. if you get a trade deal, sentiment rises, earnings estimates go up, guidance is lifted, stocks rise. >> it's a virtuous thing and i think don't discount the fed. i think everyone here would probably also say i certainly believe that the fed could be not that far away from stepping back into a hawkish tone and that's the biggest fear i have. our next guest says this year's big market run isn't over just yet let's bring in keith parker, head of u.s. equity strategy at

ubs. you heard this conversation and heard what kyle bass has to say. why do you have a bullish nod? >> if you rewind back to your comments, global pmis peaked in december of 2017 typical timing of a cycle would point to a july trough anyway. what's driven that slowdown in global growth? a collapse in trade activity two-thirds -- so what starts the stimulus is the outcome of a trade deal and the restarting of the growth engine at a time when the fed is on pause to take us to new highs in the second quarter. >> you don't think we pulled forward a sizeable amount of the gains that we could have realized for the latter part of this year? we're up 20% from the bottom. >> our call was that we get about 10% from the re-rating of the multiple and years after big

pe declines like we saw in 2018, we typically get about a third back and that's where we are for us the next leg higher needs to be next 12 month earnings peaked in august and we need that roll up as growth starts to resume for new highs. >> where do you think that comes from, keith? what sector is at least most likely to rebound from what has been this stagnating growth? >> i think it's been energy, which we've seen contribute about a third of the decline in the earnings estimates, so we like that as a laggard theme and then on the leader side we have tech and health care as that sizeable growth and then the consumer, which we do see some weakness in the first quarter, is key. and again, some sizeable growth in that sector as well. >> what do you make of what's been going on in tech, sort of a below-surface story. software and semis doing the bulk of the heavy lift while the

faang names have sort of not sat it out but have underperformed those other areas. what does that tell you about that sector? >> on the semis front, i would put that in the theme of too much was priced in in the fourth quarter and you've had the bounce and the re-rating on the expectations of stabilization and some hope for the second quarter. i think software is that theme of leaders where there is still strong growth. we saw a few wobbles in recent days, but again -- and then on faang side it's been more selective. it hasn't been that broad-based bid for those stocks, but we have seen good performance to start the year. >> is there a specific area of health care that you like or is it the sector in general >> yeah, we've been tilted more towards the equipment and the growth side and selectively on the value. we do see some in biotech and parts of pharma that we do see as relatively cheap, but in aggregate we do see that as a core defensive growth against

staples and utilities which we see as fairly rich. >> karen, you got one quick? >> where do you think of financials and industrials in the spectrum of things you like? >> we've been tactically overweight industrials against that same view, that too much was priced into the year it's been the best performing sector to start the year and on the sidelines neutral financials as we thought rates would take a little while, to the extent -- as you mentioned, we have the fed back talking rates a little higher in the summer, but in that meantime, we've been a bit more selective in the space. >> keith, it's good to see you thanks for being here. keith parker you've been pointing out the weakness in the faang trade. >> we talk how do we get back to those prior highs. to me it's banks i've never seen a market make new highs in all my years if it wasn't led by banks. and then mega cap tech so yeah, they have sat it out, but it's interesting that faang,

maga, whatever you want to call it has picked its head up in the last week and so. >> you call it maga. >> i think a lot of viewers call it maga and they're starting to kiep kind of move if those were to be the leadership towards 2900 in the s&p -- >> when have banks been leading this market higher you're talking about banks having been the answer when the market has gone higher and i don't think banks has any time has been a high conviction call and yet the market has moved higher. >> it wasn't if you go back and look, where were the banks when we made those highs in january of 2018 they were at their post crisis high i'm saying to have a broad-based rally to make new highs. thes&p was at 2350 just a couple of months ago and those prior highs of 2930. to go all the way up there and break out of what is going to look like a long consolidation, you're going to need maga to do the heavy lifing and confidence

in the banking sector to broaden it out. >> i'm long the banking sector. >> so you have confidence. >> i have confidence i'm long the banking sector. today was sort of uneventful, but i like the space i think if the economy is doing well, and i do think we'll get a trade deal, i think the banks will be fine i agree on maga. i'm long alphabet, that's my biggest position actually. i agree. it has sort of -- secretly in the last week or two performed very nicely. coming up, check out shares of general electric falling back below $10 a share. there they are down 5% or thereabouts ceo larry culp has a fiery interview today. we'll tell you what he said that caused that stock to move. plus transports in trouble that group getting crushed this week could be flashing a warning sign for the broader market. later, there's one stock lighting up danny boy's trading radar today.

there he is. look at that >> nice. >> the suspense. >> what is he going talk autbo we're live from times square in new york city. much more "fast" after this.

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money. investors fleeing ge late today as ceo larry culp warned about the company's cash flow. shares down as much as 7%. they're down 5% or so now, back below $10. morgan brennan has the details morgan >> hey, scott. shares of general electric reversing course and plunging this afternoon after ceo and chairman larry culp said significant known headwinds would mean industrial free cash flow will be negative this year. >> with respect to cash we were at $4.5 billion last year. as we come into '19, we're going to be in negative territory. this will be a year we'll have operating and nonoperating pressures on our free cash >> culp saying there will be a step hundred tupin the restructg he does expect the effects on cash flow to meaningfully lessen in 2020 or 2021. the comments coming from

jpmorgan's aviation and transportation industrials conference where culp did sit down with the jpmorgan analyst who's been the biggest bear on wall street on this company but perhaps the most instrumental since his contrarian have been largely correct, culp adding organic revenue will be up low to mid-single digits thanks to strong performance in renewables and ge capital is open to something creative with its investment business. the discussion today, though, offering the most detail yet about ge's outlook previous guidance you'll recall was pulled last fall, but investors will find out more on that next thursday, march 14th, when the company is expected to disclose new financial targets meantime, scott, shares did fall 4.5% today in today's trading session. back over to you. >> thanks so much, morgan

brennan, the latest on ge. this was very much a reality check kind of by culp. he said, look, we're trying -- these are my words, not his. you're trying to turn a big sort of ship and there's no sugar coating. it's going to take a lot of time the stock has had a big move from the bottom, 6.66, up to 11 and now it's below 10. >> what's interesting, last week at this time we were getting a headline they were thinking about reinstating the dividend we were all scratching our heads, why would you do that. >> well, they did a deal and paid down debt with the proceeds. >> i thought that was a bit of a game-changer they'll probably net out $20 billion but also taking on some of the pension liabilities but i think things are in a very different place and larry culp is giving people some sense of confidence that while it doesn't turn around overnight, we see the pathway to call it normalcy on the fiscal side, not cutting these power deals for loss

leaders for the sake of cutting deals. >> morgan referenced the analyst today. nobody has been more right than him. even a week ago as the stock had this big move, he sort of took his own temperature of where the story was and thought that it was just too overdone to the upside he's got a neutral rating. he's standing by his $6 target it's one of those deals where can you really -- for an analyst who's been so right, analysts get ridiculed all the time can you buy this stock until steven tuza says to buy it >> this was a tough stock to own right now. it was down 50% last year, up 40% this year, all based on optimism of a turn-around. but when you look at the valuation, it's basically trading at a similar multiple to a company like apple i know apple is not without its op own challenges they have issues with innovating, iphone sales are slowing. at a similar multiple i would much rather own a company like apple than a company like ge.

>> i'll just say this, from a trading perspective, where did the stock top out? $12. that's where it broke down on its way to 6.70 or so in december when you talk about it, morgan just said the next time they give guidance is mid-april, prior to april expiration. if you're looking at trading it and maybe buying it and catching a falling knife on the way down from 12 to whatever, you could look to the options market they look dollar cheap the april 10 calls are about 65 cents. that's 6.5% of the stock price the stock is moving around 3%, 4% a day as is so there's ways of to do it with defined risk. >> if got ge in the industrial space, what? karen, what do you own >> i own uri, which i like a lot. i own ge i own leaps of 20 because i want to give it enough time to see whether he can turn it around. but i also want to know exactly what i can risk.

i think he will turn it around but uri is my biggest industrial. >> i think the earnings multiple at ge is not what this is about. again, if he's at $6, whether you trust ge or not, we've got some data points you're talking about 70 cents in earnings in 2019 you can do the math. i don't think the multiple means anything i think the sum of the parts means something. this is a company with $121 billion in revenues. that may not mean everything if you have pension liabilities that you have no idea about and don't know where the connects are going. but i think this company is showing that even at 4% they can get back to some meaningful place. >> is there another quick industrial that you like. >> i would take caterpillar. it's been beaten up pretty heavily, a double downgrade i believe last week. i think the valuation is very attractive i do think at some point you're going to see construction rebound. i think we should get an infrastructure bill at some point here domestically so it's a good buy at this point. >> for more head over to

cnbc.com in the meantime, here's what else is coming up on "fast." yep, that's what the transports look like this week and they could be flashing a major warning sign for the broader market ers ill explain. the'much more "fast money" the'much more "fast money" right after this break which didn't quite cover the steinway. but what if he'd met pure insurance? owned by mem he'd have met: lisa, your member advocate. who'd introduce him to gustav: leave it to me. a temporary address, temporary ivory, and help him get tickets to the mozart festival. excuse me, grant likes beethoven! uh, the beethoven festival. pure. love your insurance.

i think initially our impact was perceived to be less, but all of us have some mix of government business, and then it's just the overall on the broader economy and consumer confidence, when you have that kind of uncertainty. the 800,000 people on furlough is a lot of people

so you have to expect that there's some impact on travel demand. >> that was southwest airlines ceo gary kelly earlier today on cnbc as the airline is still facing turbulence after the government shutdown. that group has struggled in the last month what's more, they have weighed heavily on the transports which are now in a correction. an eight-day losing streak, underperforming the broader market bob pisani is here to break it down for us. >> hello, scotty, good to see you. it's true, the transports are more than 10% off the historic highs they hit in september but the markets had rallied big time from the december lows remember, the recent weakness, particularly in the transports, has been going on as scott mentioned for the last couple of weeks. the s&p is up 1% since february 21st trucking stocks are down 7%, airlines are down 4% railroads have been relatively stable, they're just down 1% as a group. so what exactly is going on? you heard over there, airline executives are warning about

some weakness in the wake of the government shutdown and fuel costs have risen on recent earnings calls several transport companies did mention geopolitical risks as well however, most companies seem to be fairly positive on customer demands, at least the ones i heard on the earnings calls. most of this appears to be the markets in general topping out after a huge run the s&p is up 11% this year and the transports have held up very well since the beginning of the year the railroads are outperforming. they're up 19% since the start of the year. trucking and airlines are performing about in line with the broadermarket since januar 1st. but in the past week and a half, other 2019 leaders besides the transports have stalled out, so semi conductors, for example, banks, industrials, and the small cap russell 2000 all market leaders this year, they're all flat to down in the last two weeks this tells me that the market is getting expensive and that we are reaching the limits of the

benefits for the trade deal, and that some parts of the market like tech and energy are a bit overbought back to you, scott. >> all right, bob. bob pisani for us. eight days in a row. are you concerned about that >> i look at the transports and they're up 13 spoken.5% this ye. i look at airlines and they're trading again back to -- we're going to a recession i look at delta, that's a recession multiple for the best airline at a time i don't think that's going on. if you look at airlines the last couple of years action they're incredible trading stocks. you've had about nine trading ranges up or down of 20% or more in delta i'd take a look at the stock at the bottom of the range. >> to buy. >> to buy, yeah. >> they just reaffirmed today, $6 to $7 a share obviously airlines trade different multiples than other industries, but still -- i'm long delta, i like it here. >> it's not like the rails have

done bad it's basically been an airline-led decline, but no one is worried about just the sheer weakness in transports and what the tell is there? >> you made a good point, scott, earlier in the show. you said digestion or pulling forward some of the gains that we might have had from a supposed trade deal. i think all of us would be sitting here shocked if the trade deal was more unkem pacomg than we expect it's only down a couple percent. then think about it, as we get into april, that's when we'll see earnings preannouncements if we have them if not, then we get to the middle of the month and we have earnings. >> so i think there's a huge opportunity with fedex right now. i think the valuation is really attractive on fedex. i think the threat of amazon taking over and delivering all these goods is really overdone i think a lot of the bad news is already priced into fedex. as e-commerce essentially

doubles over the course of the next three or four years as a percentage of total retail sales, i think a company like fedex will play a big part in delivering those goods. >> it had that massive gap to 52-week lows and was in the height of that sell-off back in december of '18. they're reporting on march 19th. people think it's cheap. it was cheap in december, it's cheap here it hasn't outperformed but that could be something to keep an eye on. >> if you want to be a bear, look at this iyt and take boeing out of it, boeing has been the prince of the group and certainly it should be but back to the airlines, scott, i think the airlines are their own problem. people are worried about airlines running their business efficiently. that's the story it's about capacity for the airlines >> last week we had booking.com. remember the old priceline that gave not a great outlook marriott had some not-so-great

things to say. when you think about it, the quarters they just reported is backward-looking the guidance is not anything to say it's all clear here. so put it altogether and if we're talking about recessionary environments in asia and europe, these guys all get a lot of their sales from over there. so it's not just about the u.s. when i'm thinking about transport, it is a global thing. if we're seeing decelerating growth, is it a forward-looking thing. >> delta reaffirming is not a backward-looking thing. >> i understand that but they reaffirmed in january >> delta reaffirmed business class seats. they reaffirmed their most expensive and business oriented forward look. >> first week of the year delta gave guidance and it creamed the stock. so reaffirming the bad guidance they had two months ago, have at it >> when dan says have hat it, is that like talk to the hand kind of thing. coming up, tesla shares are sinking again today.

if the charts are any indicat n indication, the stock might be ready to make a u-turn. and the commissioner with a crackdown on e-cigs. we'll tell you what that means more "fast money" still ahead.

welcome back to "fast

money. the future of tobacco and cbd regulation hanging in the balance following the sudden resignation of fda commissioner scott gottlieb this afternoon. let's go to aditi roy out in san francisco with the details it was quite a surprise, aditi. >> it was a huge surprise, scott. tobacco and e-cigarette use is scott gottlieb's hallmark issue. starting last year he started an aggressive campaign. tobacco stocks like philip morris moving higher upon today's news altruia jumped as much as 3% on the resignation news before paring its gains last week gottlieb announced plans to hold public hearings in april on cbd, adding a comment it might take one to two years to finalize regulations. cannabis stocks didn't react significantly to the news.

the agency is going after 15 retailers for allegedly selling tobacco products to kids he also talked about the possible consequences businesses could face. >> there are actions that we can take now we can send corporate-wide warning letters, sanction individual stores. we have civil penalties that we can impose we've never imposed a criminal sanction but have imposed civil sanctions in the past and have issued corporate warning letters. that's something that's open to us in this situation >> the big question, of course, now among industry watchers, whether or not the agency will carry out those enforcement measures that he just talked about and regulations against e-cigarettes keep in mind gottlieb has a month left on the job to finish what he started. scott acti scott, back to you. >> so what could this mean for both the cigarette and the pot stocks, resident expert. >> i think in terms of cbd regulation and what the fda's role is, it's so fluid and it's

been so fluid that i think this doesn't have any implication at all. i'm not going to try to read the tea leaves on scott gottlieb's resignation. he's got three kids and he's communica commuting and it could be that's what's going on. there may be a little bright light for those guys but i don't think the environment really changes. back to pot stocks, specifically cbd, which still although you've legalized hemp federally in terms of the ability to move 8 cross 18-wheelers from state to state, you still don't have definition for how that fits into products. ultimately i think it's an exciting market. it's great for the multi-state operators who have footprints to be selling those products when the fda gets their act together. >> and i agree on the multistate operators. i think that's where there's a huge potential, especially if regulation decreases suddenly these multistate operators have access to bank

financing so they can really grow their business, i think there's hijack potentiuge poten. we prefer constellation brands because for us it is still a speculative play at this point in time. tesla in turmoil again as a top analyst calls for that stock to drop 30%. plus this cloud stock is up 20% and trading near it's all-time high. there's a key event atth could rain on that rally we've got the details when "fast money" returns hey there people eligible for medicare. e two minutes. and i'll tell you some important things to know about medicare. first, it doesn't pay for everything. say this pizza... is your part b medical expenses.

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welcome back to "fast money. check out shares of neo sinking less 11%. the so-called tesla of china reported a wider than expected loss and slower deliveries on its suv. it is up more than 40% this year this was featured on "60 minutes," right? >> it broke out after that and was trading at $9 and kept on going. evening i think a lot of people saw it how we saw it. they're a local manufacturer in china.

when you look at the guidance they gave, would the stock be down 11% if it wasn't where it was trading? probably not they're talking about some demand that was pulled forward in front of the subsidies in 2019 in china, so we've seen this all play out with tesla over the last few years. the most important thing is it was a company that delivered 10,000 cars last year. they haven't done anything yet, they're just scratching the surface. >> and i think at this multiple and really no earnings, and remember there was another tesla killer, and we'll talk about tesla. i think tesla is killing themselves but how about candy, one of these chinese names everybody thought would take over the ev market and that was a disaster of a call. >> do you want to do tesla now >> yeah, let's do it tesla is hitting another speed bump after barclay's put out a bearish note ultimately the question is what's going on with tesla should i keep going? >> why is tarzan on the show >> it's the call of the day.

tarzan is yelling the call, i guess, i don't know. we have a lot of things that don't make sense. >> okay. whatever you say tesla. barclay's cut the price target today. call of the day, by the way. >> sometimes they don't run the sound. >> what are we, like laurel and hardy? what's going on. >> you probably wanted to ask me does this imply that there's new news out on tesla that should have the street either cutting their prices and ultimately with all the bad news in tesla over the last three weeks, i'm kind of surprised it's taken a lot of the guys on the street this long to downgrade think about the sequence the last couple of months. you've had major defections in -- >> 40 plus executive departures, questions about their reliability. >> price cuts across the board >> deliverables. >> they changed strategy i thought that was very big. tim has done this for a long

ti time >> you can attack this story from many different angles people take it as gospel that there's always going to be organic demand for this model 3. guess what, i think first quarter if you look at the march delivery numbers being expected now based on the delivery numbers we just got, there's no way they'll hit the 80,000 that they said they would have for the first quarter. why do you think they're sending cars to europe and to china right now? why do you think the $35,000 car which you really can't build for $35,000 is something that is the one they claim to be putting out there? to me this is a company that not only has demand issues, but the balance sheet is the front and center issue right now i'm not saying it's not a great car. i'm not saying the technology is not something that's been proven innovative i'm not saying there's not a lot of happy tesla owners. but this stock has a cross current of issues right now that for all the short sellers, i think we have that moment. >> this is the part of the show

when guy adami would say i'm looking over dan's shoulder and i've identified that 250 is the level where shorts kind of cover and new longs step in and you have this nice trading range between 250 and 350. >> i'm glad you told us who it was. >> do you believe that or you were just channeling guy >> it's worked the last three years. 250 on the low ending. when it gets to 325, 350, that's when you lighten up. >> but the stock price to me is not representative of any fundamental. >> i don't want to gloss over this you think this is the moment finally -- >> yes. >> -- for the shorts >> yes first of all, how do you explain a company that's doing everything they can to deal with a cash flow crunch there is a cash flow crunch here they cut cap ex by 60% this is a growth company they're basically cutting all staff. there's an announcement that came out today that they're cutting technicians and service folks on a car that if you've owned it so far, they have

showed up in your parking garage and fixed your car i'm not sure they're going to be there tomorrow they're doing a lot of little things that tell me they're trying to front load sales, get cash flow into the system because they just made a major convert bond payment i don't think they have the capital on the balance sheet anything close to what they claimed at the fourth quarter. >> they're firing employees right now. last quarter they had to recruit unpaid volunteers to deliver their vehicles there's obviously a demand issue right now. i think that's the biggest problem. obviously there's a lot of c level executive turnover but demand is a big problem. when your big announcement is an announcement you are going to reduce the price of your vehicle and shorten the life of your battery, that does not speak well of demand. >> they also caught it on three models, not the model 3. but the most important thing is those other ones are cash cows why are you cutting prices on those? it makes no sense. >> unless demand isn't there.

>> making a car for $35,000 and losing $10,000 is not great business. coming up, salesforce seeing a bit of a reversal after being down as much as 3% there's something about the move that has one of the traders all fired up we'll explain. we're liverothe sd fm naaq in times square much more "fast money" straight ahead. and you should be mad your smart fridge is unnecessarily complicated. but you're not mad,ad your smart fridge because you have e*trade which isn't complicated. their tools make trading quicker and simpler. so you can take on the markets with confidence. don't get mad. get e*trade and start trading today. your but as you get older,hing. it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory.

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what's that noise? well, it sounds like something is triggering dan's trader radar. why don't you tell us what that is, dan. is that a new thing? >> it's hot if it is we ought to keep it. if it's new, i want it every day. >> is it new >> this is one that's on my radar. salesforce made a new high well where the markets got going here and well before it looked like the markets would make a move back toward the prior highs. that's the one-yoear chart for salesforce the stock was trading at an all-time high. they got creamed a little bit into that printing they were trading down on the guidance that they gave but only closed down 1.5% today that's pretty good relative

strength you saw that chart here, that could be an epic double top, at least near term. there's a couple of hingthings investors should be concerned about. they are seeing a deceleration in their sales growth and earnings growth. with the stock up here, it's a lot more expense i've than it was two months ago, trading 56 times expected earnings and 7.5 times sales. so it should be on your radar. the idea for playing for a breakout giving the guidance they just gave, let it digest a little bit. >> where on your chart then -- >> 160 yeah, thanks, chart lady. >> dan's point about price to perfection is critical i think the kaumps get really, really tough for those guys. it's really difficult to expect the next leg higher. there's no way you'll say these guys aren't crelicking on all cylinders. all the software guys have

multiples that i don't think you need to chase. >> and i think from a price-to-sales perspective, the multiple on salesforce is actually a lot more attractive than a lot of the other companies that are out there we're talking price-to-sales of 6.5 versus some are 8 or 9 right now. and the thing is, especially with us being late cycle, all businesses are trying to eke out every last dollar of profitability. they're trying to be as efficient as possible. and salesforce is one of those companies that gives businesses the opportunity to maximize their efficiency so i still think there's upside from here. >> let's stay with the cloud stocks oracle the last of those to report earnings. traders looking for a cloudy forecast >> a cloudy forecast. >> that's what they said >> this one is not a pure play on the cloud they would like to have more and more -- guys, come on. it's my time to shine here. they're seeing some of their legacy products grow much slower

so today kind of interesting on a day where investors were digesting some of this guidance for one of the biggest cloud players. options volume was 1.5 times average daily volume in oracle there's one trade that caught my eye. looking out to march 22nd weekly expiration, there was a buyer of 2,000 of the 48.5-46.5 put spreads. that's almost down 10% that is a long shot but it's really important to remember this trader is risking 20 cents to possibly make $1.80 if the stock is 46.5 or lower on march 22nd what are they possibly targeting? earnings that we're supposed to get in mid-march but here's the thing, this stock trades really, really well this is the one-year chart look at that massive double bottom the stock has really outperformed but it's kind of just like salesforce before it, it's caught some resistance, at least from a technical

standpoint at that prior high. look at this five-year chart this is the 10-year chart. this is a really beautiful uptrend here obviously it's not a name we talk about a whole heck of a lot because it hasn't had massive outperformance like salesforce but trading at 15 times, you're seeing this consolidation here and it looks ready to go so to me this is one you want to keep an eye on as we get into their earnings the next couple of weeks. for more options action, ideck out the full show every fray 5:30 p.m. eastern sirens are blazing final trades are next. see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you thur options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation?

it's just complicated. step-by-step options trading support from td ameritrade and everyone i've ever opioloved away from me.thing everything. i blew my ankle out and i got prescribed pain pills by my doctor. if making my detox public is gonna help somebody i'm all for it. i just wish i would've had a warning.

yeah, i thought doing some hibachi grilling would help take my mind off it all. maybe you could relieve some stress by calling geico for help with our homeowners insurance. geico helps with homeowners insurance? they sure do. and they could save us a bundle of money too. i'm calling geico right now. cell phone?

it's ringing. get to know geico and see how much you could save on homeowners and condo insurance. let's do final trades. around the horn we go. timmy. >> we talked a lot about transports tonight i think delta is right there in the airlines it's best of breed, best valuation. take a flight with that one. >> is there an echo in here? karen. >> we talked about target last night preearnings. i think it's better today after these earnings and being up. i normally wouldn't buy a stock up but i think the valuation is more attractive with the confidence they show in their business. >> mark don't call me david tepper. >> the hubspot.

>> i think there's nothing wrong with salesforce or oracle. let that one come to you prior to the earnings and that's where you buy it. >> great stuff thank you. 5:00 tomorrow night here at the nasdaq "mad money" begins right now my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money" welcome to cramerica some want to make friends and i'm here to help you make money. call me at 1-800-cnbc. who would ever think i'd start a show