still okay the issue is if we just have a natural pull back from here, that's 2 to 4%, back to the 50 day average or something, it's going to feel like it's more jarring than it is in the broader scheme i think the uptrend is in tact it could be bumpy if we retrace a little bit. >> that does it for "closing bell." >> "fast money" starts now. >> overlooking new york city's times square, carter worth, tim seymour and steve grasso, the unthinkable, it's time to sell apple and he has the one chart that proves his point. plus, a pair of after hours chips, stock, video both on the move on earnings we'll break down the result skpgs lat, and later, up in smoke, cannabis stocks getting crushed what's behind the buzz skill we begin with a developing story on alphabet, taking a leg lower into the close on news of an antitrust probe.

cnbc news lauren hurst was the first to report this story she joins us now. >> the attorney are prepared to expand their probe beyond the company's advertising business to its search business, people familiar with the matter tell me texas which is leading the probe announced the investigation earlier this year but so far, the investigation has centered on google's advertising business texas has issued subpoenas for materials relating to that business now other states will lead the charge in investigating google search and android units separately people familiar the with the matter tell me they will issue subpoenas on those businesses. the attorney general investigation is running concurrent to a doj led inquiry which google confirmed earlier this year. >> lauren, just quickly, what is the implication of separating an

investigation into search versus android. >> reporter: so the key point is they are very serious about the investigation. it's not shocking they would be curious to learn more about either search or android, but what is interesting is they want to use their resources to investigate, to write up subpoenas, to get more materials. if you're google, the reason why you're worried is you realize just how serious the ags are in investigating your business and taking it apart piece for piece. >> lauren, thank you lauren hirsch with the latest. read the full report online. what does this mean for alphabet, tim? >> you think about the company performance wise, we hit fresh ice before we got to this news, and this is a company i think actually started to provide a little bit more insight into their business, the disclosure, the core business is very strong look, you would think if they were worried about regulatory stuff, they wouldn't be going all in on health care, too project nighten gayle, le, does

seem like they're shying away. you look how the stock responded when we got the first announcement in june, it took the stock down significantly we have heard this news before, and frankly we know there's a target across silicone valley, and i think until we get further down the road, i don't think this is a moment you're throwing google out the window. >> it's amazing, right, we learned that all 50 ags are investigating, they have separated the investigation into theory in search and android, and the stock may have gone a little bit lower on news of this right now, it's basically unchanged. it's amaze sging. >> it seems like most importantly, and the stock price doesn't care investors don't care we have heard about the story escalating for a while now everyone sort of writes it off, same way we wrote off brexit, trade, powell, all these different things on a granular issue, it's google now that's writing it off. >> and look the stock is a classic brand. it hasn't even begun

and this has gotten to prior tops, usually the beginning, not the end of a move. >> it's a muted reaction, this time, very much like facebook. there's a lot of different examples we could use right now. when the regulatory comes down, the hammer really hits and then it seems to get a little bit less, like the trump tweets and all the rest of it us and some of the democratic candidates running, everybody is worried about health care and the rest of that. there are reactions and then those seem to go away. this seems to be the case for google it's had a great run 25%, i think, year to date the stock. >> it's been the class of faang. >> absolutely. it is the classic faang, you're right. >> you wrote a number of cnbc.com opinion paces. >> i have penned a few. >> about facebook and the troubles facebook faced and why it was going to be an issue for facebook why is this different in your

view >> my view on facebook is that this is a confidence issue and a trust issue with the management team, and something ultimately that would trickle back into usage. now, let's be clear. we have not seen it hit facebook in terms of their advertisers. we have not seen it in terms of their platform, in fact, their platform seems to be as strong as it's ever been. i think with google, again, in terms of the user right now, there has been some concern with data, and this has popped up in the last couple of days. they decided to get into health care, and forged a partnership that people are concerned, what they're going to do with the data as it relates to health care there's a lot of trust for google there's more trust for google than facebook and that separates the two. the regulators may think otherwise but the core users might feel differently. >> i would add one other thing to it. you watch the reaction out of facebook i wanted that downward move. as soon as i saw this headline, hey, this is great because this gives you that opportunity to buy. now it looks like that opportunity has already been wiped away i mean, the opportunities you're looking for is facebook knowing that people say they're going to leave but they're not going to leave and that was the reaction when you look through all these

regulatory issues that he went through, and we thought the guys were going to leave, they didn't they thought they're going to continue to grow >> if you're an advertiser, you have to be there you can't avoid this, and when you look at the play, what happens in the long run. if the worst case scenario takes place for google, is it a fine, so do you think that they're going to be crushed with the fine they're not going to be crushed with the fine, so i think investors look past it, and say, google is going no place, it will be there. it will still be a huge revenue stream and i have to be there as well >> anti-trust to me, and it basically implies they're going to break the company up. it implies there's a monopoly, they're not letting other competition in and i believe that with megacap tech, at least in the case of google and facebook, we talk about this as well i think the sum of the parts, actually, would be a benefit to investors. i think if you had to break it up and actually try to sell the businesses on your own. >> how would you break up

alphabet >> who gets the new ventures. >> the argument on anti-trust is probably related to what extent they are dominating the data, and dominating the advertising plane. in terms of what i think is at risk is the confidence level around data. >> let's turn to another tech name apple here, the stock hitting a new all time high for a 6th day in a row, it's on pace for its best year in a decade. some are starting to turn sour on the name. we have learned that warren buffet trimmed its stake in apple last quarter and trump master says it is time to sell this stock why don't you go over to the plasma and break it down for us. >> think about google. google is the same price it was 18 months ago, which means that's the opportunity has yet to really break out. apple broke out and to some extent you have exploitation of potential and it's quite steep and uncorrected. a few charts, only three, let's look at it, this is the 150 moving day average over the past two years, and what we know is you could say, well, so what, it

gets above or below, but let's pull this back and look out over a bit longer time frame. this is the same chart and it's looking at where the stock is, above or below the 150 moving average. let's pull it back further and look at a two-panel chart. what the top is doing is looking at the same circumstances, the current stock in the 150-day moving average and the bottom panel is calculating automatically, instead of having to wonder, just how far above the line is it and what you see here, and this is quite something, every single time that apple has traded 24% above its 150 day moving average, it has peaked and rolled over. that's happened literally simultaneously every time for the past seven years at this point, as opposed to to something that has the potential to break out, google has already broken out, and what comes to mind is trimming, doing something, before, as they say, someone does it for you. >> interesting

before someone does it for you >> i mean, come on back. i was just out of curiosity, looking at ratings on wall street, not that we put a lot of stock into that, but 65% are either at a buy or strong buy. >> or a hold >> right, i did the same thing you have like 27 at buys, 14 at hold, and 7 at excels. >> it's the highest since a year ago before the 20% decline. >> right you always get this peak where everyone rushes in to carters, i think his point with using the chart. if you think about it, you have apple tv plus. you have i cloud storage, music, that's becoming a much bigger part of the story than it was a year ago, two years ago, and definitely three years ago people that own the stock stay the course now more than ever before >> i just think that the point that carter is making is a totally valid one, however you want to lock ok at it

you've outperformed the s&p, the entire market since june i'm going to say it over and over again, because that is extraordinary, and that is a reason to say, hey, you know, you could be a relative value player here, i'm long apple. i sold some up side calls, call me away, i'll be okay with that. i think we get into the argument, are you an investor or trader in apple and i'm an investor >> he owns apple from $2.30. >> not quite but from the 1990s. i've owned this stock for what feels like forever, but there are times where it's a great opportunity. i loved what i heard, and i know it's options action that's speaking for you, but it's a great opportunity to sell calls against it right. the only issue is applied volatilities have come down significantly. the prices you used to be able to get a couple of weeks ago are no longer there. you watched the vics get to 12 to 14, applied volatilities has

dropped. you're not getting what you were getting. still makes sense to ne. kind of like disney, the big run up in disney, the big spike we got yesterday, i thought that was great in my final trade, sell the up side calls in disney against the stock. i want to hold it. i have been selling options against apple for what seems to be months and months and months, they work out. the problem, the negative, i guess is, you have to be able to take a little bit of a osz loss it if i were you, sell those calls against it, buy them back if it gets through the stripe. >> i'm through we'll see where we end up by the end of the year. >> can i ask a question, mel. >> is it a -- sure >> it's related to apple they're talking about volatility, and i would think when you have a stock that's rocketed this high, if i'm willing to actually sell a little bit more upside from here, it would be worth more because the stocks got so much momentum going into that >> the implied volatility, generally go out as stock goes

up people get more and more confident in what they're seeing when there's not confidence. >> over what time frame. it's all about that. one thing you're talking about, if you want to be bullish on this the analyst community is not bullish. we know that a whole recommendation on wall street is a sell, right of all stocks covered. in fact, it 10, 12,000 stocks, 5% of stocks get a sell rating over time because no one wants to put a sell on it, management won't speak to you. >> that's not supposed to matter last time i checked with the chinese wall >> wall street is compromised in that sense only 5% of all stocks are sells. a hold is a wink wink sell and what we know is basically half the analysts are saying wink, wink, sell, and half are saying buy the collective 12 months price target is 254. if you want to be bullish --

>> that factors in analysts that all due respect have no clue >> clearly no respect. >> i like the all due respect. >> in every career and path in life, there's 10% of the people that do it really well there are 300%. >> where are we. >> hopefully we're in the top 10. >> coming up, break out the chips, nvidia materials are on the move, we'll break down the big headlines from quarters. tensions rising in hong kong that could have big rippled around the worldment we' we'll tell you what's at stake for the obglal economy much more live "fast money" right after this make fitness routine with pure protein.

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shares of chip makers after reporting earnings after the bell let's get to seema mody. >> reporter: fluctuating between gains and losses, revenue guidance for the fourth quarter came in weaker than expected but the street remains fix sated on the strength that it's seeing in its gaming business. sales and gaming up from the 1.3 billion it brought in the

second quarter ceo jensen huang says our gaming business from hyper scale customers powered q3 results key questions analysts will want to know is when is nvidia unveiling a product it hints at, and what's the outlook on crypto industry, they do specialize in chips used in the crypto sector. applied fe applied materials, thanks to growth in founding, laundry and chip business. china, despite signs of a slow down continues to make up 30% of net sales. the stock is higher in extended trade and now trading at its highest level in 13 years. both chip stocks have been on fire this year, up over 50%, recovering from what was a pretty tough 2018, and even chip equipment makers, and amd are up big after reporting better than expected earnings, plus further channel checks suggest that demand is starting to improve for semiconductors and the big

question is here whether demand can keep up with wall street expectations back to you. >> seema mody at headquarters. pete, where do you go here, which would you rather. >> i would stick with applied materials because i think that's the space to be in right now and obviously the numbers, that gave us a pretty good look but the gains, that really does sound kind of interesting in terms of nvidia. the one spot they are good is gaming that's a small portion of what nvidia is. because of that, it tells me i would rather be in the maker and the ones in the chips. >> i think gaming is the aspect that everyone concentrates on, then you have data centers, and then with 5g, what's the automobile going to look like. what's the connected home going to be looking like i think when you look at it as a gaming stock, you leave a lot there, so i think you leave a lot on the table so i would rather, it was would you rather. >> i don't know. the extension of would you rather. >> she did, yeah >> exactly, and by the way, a

bunch of new games coming on the market, and these guys are always great with coming out with new chips going forward, and with the gaming cycle. you're going to see a lot of that stuff moving forward, a lot more in the cloud, a lot more to think about going forward. >> depending on how you measure gaming, itincludes chips in pcs, 53% of their business, when they tell you that gaming is a little bit softer than expected, even though it had been expected seasonally to be somewhat soft, i think that's a concern considering where the stock has come from. think about the stock, is it up 130% off the lows we hit back then, and the $130 level, which is something it's bounced off a few times, it got there back in may, so i think the extraordinary run into these numbers, i think this outperforming the rest of a chip space that's been on a tear, you shouldn't be surprised by this, and i think their business is actually much more rationalized at these levels than we have had in past years when we could have

had this kind of run. >> semis overall, the subject all year, their relative performance to the tech sector peaked in q4 '17. >> really? >> correct that's two years ago, and they have yet to make a relative high things like apple are acting so well, but the interesting thing is that the beta trade, as good as it's been, adjusted for risk or beta, not only is it not outperformed tech, but even worse than that. >> somebody at home is saying, and i thought i was up 74% >> and that's different. but you got things like mu, intel, which are a big part of the aggregate. as a theme, a bet, as good as it's been, it has not been an alpha generator, given other choices in terms of tech overall. >> when we have the conversation about semiconductors being cyclical. >> adjusted returns too, is often carter's point. >> right so that doesn't apply to that conversation you could still believe and it could still hold true that

semiconductors being a cyclical sectors are indicators of the economy. >> to what one's investment experience has been and what the opportunity cost has been. >> yeah. your favorite semi in the space is >> very conservative >> intel. >> and i believe in the company, still, the ceo, i'm not 100% all in on, but i think over time i'm sure he's going to be the right guy. >> we have much more ahead here on "fast money" here's what's coming up next. the protests in hong kong continue to escalate we take a look at the ripple effects in the market. and how it could impact your investments. and later, tesla shares have nearly doubled since june. but is that rally about to hit the skids. atndreak it down th a much more when fast money continues. ♪

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welcome back to "fast money" this was the scene in hong kong as protesters flooded the streets of the central business district the mass of demonstrations reaching new heights over the last few days as protesters clash with police, the increasing instability giving rise to worries about the impact on the chinese economy and what that could mean for the global markets. derrick stiller joins us now, great to have you with us. >> thanks for having me. >> you make the point that the actual impact on the chinese economy from hong kong, it wouldn't be that great, but it's the other ways in which hong kong brings money into china that could be harmed. >> that's right. if you took a list of the major of challenges of the chinese economy, they don't allow rural people to own land so how do

those people get richer. the state sector is huge, and they don't allow competition, so they suppress innovation those don't involve hong kong, except at the end. at the end, the chinese run up a huge amount of debt. they acknowledge this, open the financial services market, creating opportunities but a lot of those firms want to base tems in hong kong to take advantage of the opening in china and that's where the protests can matter. >> congress is considering a bill sort of saying what's going on in hong kong is not okay by us, how could that royal things, either when it comes to the trade wars or when it comes to getting money into china >> well, the bill by itself doesn't really do very much. it's more a symbolic action for you. it looks like congress is trying to warn, and they have been for some months, trying to warn the central chinese government away from acting in hong kong, the only way the bill would matter

is the chinese decide they are upset by the interference in internal affairs they have a chance to be upset and they haven't done it i think what's at risk in hong kong is if the situation intensifies in the form of chinese intervention or spreading to the rest of china or parts of china, that would escalate, completely change the situation on the ground. the bill, we have had a chance for a chinese reaction and we haven't had one yet, so i think it's just a symbolic action by the congress. >> derrick, it's tim seymour, thank you for joining us what do you think about capital flight, and i realize that the hong kong dollar is nothing you want but if you think about some of the access points in and out of the country, hong kong access for capital into the country and as we think about global markets as trade skpers and investors, e need to keep that focused on our risk factor list what do you think overall in terms of the sentiment around capital flight in china right now. >> well, that ties back to those

big questions, i mean, i think that's representative of hong kong's role. capital flight is really about failure of the chinese economy to reform and to increase productivity it started in spring 2014 after the chinese reform effort at the third meetings didn't go anywhere so that's not really about hong kong as you said, hong kong is an important capital access point, so money is going to leave china through hong kong if they can and the events are thereby going to cause people to panic more than they would otherwise. the capital flight, long-term problem is not about hong kong, it's about china, its own choices but in the short-term, it does add to the feelings of panic people might have. i have money in hong kong, do i take it out of hong kong, bring it back here send it overseas, what's going to happen there. if there is an uptick in protests and there are financial actions by china or the united states in response, you could have your money frozen, so i do

think there's hong kong icing if you will on the capital flight cake. >> it does look like the protests are escalating, derrick, day by day, if it gets to the point where chinese forces actually cross that border and enter the fray to try and control what's going on, how could that impact the trade talks. >> well, that's the disaster scenario, the chinese have clearly shown they don't want to do that. they have had an opportunity at various points to act, not that i would say that's justified i'm saying they had an excuse. they don't want to, they don't want to cause a problem. one of the reasons they don't want to is that would be the end for the trade talks. it would be the end for the current trade relationship, the u.s. would impose tiananmen style sanctions and all the opposition and discussions we have had so far would melt away. a concrete example is senator mcconnell, the majority leader in the senate, he has blocked a whole number of anti-china bills on a bipartisan basis that have come up from the senate.

he on the other hand is very pro hong kong, and that block he has put on the bills would go away instantly if the chinese intervened and you get a flood of harsher measures from the american congress than we have seen from the trump administration. >> great to get your analysis on this, derrick scissors of aei. it sounds like there are few scenario in which things could be affected, whether it be the trade war or economic outlook for china. at the same time, you know, the hang seng is down every single day that there are protests. how should we parse this out as traders. >> we can't forget about what's going on over there. people are leaving hong kong as they knew it, it's over in terms of building a business i'm not going to comment on whether the politics are right or wrong because apparently you can't. whale say if you look at -- what i will say, we had data that took you back to 2003, industrial production numbers that took you close back to

2002 you had fixed asset investment we haven't seen since the late 1990s. you have to be concerned and that's what the bond markets did after a rally back in yields, you said the ten year pull back on risk concerns. >> this seems like something the market is overlooking. we talked about things the market has overlooked before, and we have become numb to it. this to me seems like this could be a mine field where we're thinking everything is going to work out, and there's not much in the overall market. this is the one thing that i think can affect a lot of the market right now. >> we've got a news alert here on the pentagon's cloud contract deal with microsoft. ylan mui has the story. >> amazon is formally protesting that $10 billion jedi cloud commuting contract that the defense department had awarded to microsoft amazon confirmed that it filed a preliminary notice on friday in federal court. it's not clear when the next step will be taken in a statement, amazon web services said that federal procurements must be handled

objectively and a manner free of political influence. the process contained clear gis deficiencies and errors. amazon had been considered the front runner for the contract. president trump is no fan of jeff bezos, personally attacking him by name, and there have been multiple news reports that the white house was concerned that the deal would go to amazon and wanted it to be scrutinized. defense secretary mark esper had to recuse himself from the selection process because his son works at ibm, a competitor amazon is starting a legal challenge in federal court over this major contract. back over to you. >> ylan thank you, ylan mui in washington when microsoft won this, and i turn to you because you love microsoft so much, oh, maybe microsoft has an in on some of the contracts in the future, how does this play in? >> obviously this means something, and you can understand where amazon is coming from. they see what's going on they understand the entire

process. it makes sense that they would challenge it whether or not they win, there's a lot they're going to have to dig into to find any real truths about why microsoft got this we know microsoft has been the guy who's been right on the heels of amazon in terms of the cloud, aws is number one, microsoft below them it makes sense there was a possibility of one or the other. microsoft one, was that decision made in fair way that's what we're going to find out. let's be honest, microsoft continues on their way, and they are continuing to be a challenger to amazon in all different aspects. >> nimagine, just imagine for on second that amazon wins this challenge and that there was bias in this whole process that opens a whole other can of worms in terms of where the administration stands when it comes to jeff bezos. >> tough thing to imagine. >> at large, not just amazon. >> well, look, i think this type of a process would go on anytime, i believe the government is awarding a massive

contract why wouldn't you file a complaint, why wouldn't you want an investigation i don't care whether this is defense spending or in the cloud. because there are obvious play skpe ers and make sure this is followed through on. microsoft, as pete has pointed out has been crushing people in its wake and in terms of their ability to manage the platform in a cloud that has die namynam that allow people to trade. >> in terms of variability, this kind of action, apple plunges 40% at the low last year, now has this huge ricochet microsoft has been the steady 45 degree angle all about risk adjusted returns. microsoft is the blow out winners. coming up, aurora cannabis reported results, moving sharply lower in the after hours we'll bring you the big highlights from the quarter. and speaking of earnings, home depot set to report next week, going to drive home

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after hours session. let's get to frank holland at headquarters with more on that. >> shares of aurora falling 9% after reporting eps of 1% and a miss on revenues compared to estimates. terry booth said that slower than expected openings of retail stores over the summer hurt the company's sales, very similar to the commentary we have heard from other canadian producers, such as canopy which reported earnings this morning. fell to below $1 per gram in canadian dollars and that was a target for aurora. unlike cronos, aurora said its prices increased slightly but overall, it's really been a different few months for canadian companies that produced cannabis stock prices have fallen by nearly half over the past three months melissa, back to you. >> frank holland mentioned

aurora isn't the only pot stock that's been burned. >> that's so wrong >> it's low hanging fruit. it's not that bad. the cannabis carnage over the last couple of months pretty bad, cronos, till roy, ache radiolo the. >> province of ontario is not opening enough stores, this whole cannabis 2.0 which was going to get them to be selling higher margin products is slowing down dramatically. canopy did it this morning, they're pulling outright guidance i'm reading through some of the notes also on aurora's numbers sounds to me like they're fore stalling, pushing out products which were seen as exciting growth and they're talking about we're waiting for global demand to pick up, domestic demand to pull up. the inventory issues in canada are getting scary. again, we went from a place they were having trouble getting product to market to a place where everybody increased production it's a scary time, a long way

from the bottom that was called by one of the brokers out there, i think a lot of people are wondering what are the die nyna that bring you to the bottom companies have reassessed expectations and essentially themselves, not only pulled guidance but reset the bar that's important. >> when you think about it, when they first came out in canada with legalization and all the stocks ran up. if you look at the path to profitability. if you don't have one, you're thrown out now now vaping, it doesn't matter whether or not you use vitamin e acetate or not everyone is selling your name. you have to have a clear path to profitability. we saw canopy say, the interim ceo say three to five years for full profitability that's a long way out to be throwing darts right now. >> last quick question, these were the canadian lps that reported and the u.s. is on deck should we extrapolate. it's a different market. >> no, i don't think urkyou shod

i think the addressable market in the u.s., especially in individual states, illinois is coming online, a $2 billion market, i think is very different. >> we just want to mention that tim seymour is all in on this space, a long number of names and the portfolio manager of cannabis, sits on advisory boards for all of tim's disclosures go to fast.cnbc.com. >> we're doing whale watching as hedge funds are giving us a look leslie picker is doing the highlighting >> reporter: third point taking a stake in smile direct club during the quarter that. went public in mid december, $23 a share, and slid to $9 since then revealed that his firm bought 750,000 shares during q3 and held them at least through the end of september that news is sending the stock up in after hours trading. as you can see they are up 1.4%. berkshire hathaway is filing moves in after hours trading

you mentioned the firm trimmed the stake in apple during the quarter and took new positions in restoration hardware, and petroleum, both trading higher on the revelations as well it's important to note with whale watching that all positions in 13 f filings are as of the end of september, and may have changed in the six weeks since then melissa. >> leslie, thank you so berkshire is taking a stake in oxy earlier this week, carl icahn cut his steak in saying that the stock was extremely dangerous to own now. pete, you have calls. >> which makes it interesting. >> and we have seen nothing but call activity in a lot of different energy stocks. occi being one of many it's interesting to see buffet going in as carl is exiting. we know the time frames are something we don't know exactly but i think this is interesting and i think it's something that we've seen energy becoming a bigger and bigger and bigger portion of what we're seeing in unusual activity >> you guys are taking bets because it's a small percentage

of the overall market. it's the smallest it has ever been, and there's a reason why enps like an occi can't perform because there's oversupply status and there's a reason why refiners can because their input costs are the lowest they have been. >> thinking about buffet, trimming apple what does apple have he trimmed wells fargo they're steep and uncorrected and what is he taking some of that money, he's buying something that's down and to the right. occi is literal any a free fall. catching the fallen knife, he's not doing that, just putting a toe in the water. >> not steep, though, is really just in the last six weeks or so it may not have been the best time to have trimmed they have had big moves in the fourth quarter. >> let's not forget buffet is a guy who does the blood in the streets analogy. he's waiting and looking at energy, and saying you know what, i'm going take a shot here, here, here >> and he does a good job with it. >> up next, home depot building big gains, and bigger rally ahead. we'll break down the action.

tesla revving up after getting a vote of confidence from consumer reports. but we'll tell you why there could be much more going on under the hood stay with us "fast money" is back right after this do you have concerns about mild memory loss related to aging? prevagen is the number one pharmacist-recommended memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. most people think of verizon as a reliable phone company. (woman) but to businesses, we're a reliable partner. we keep companies ready for what's next.

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we are in home builder heaven, apparently home builder, etf finished the day higher again bringing total gains to 41% this year, and options traders are betting that the next leg higher might come when one big consumer name home depot reports he next week. danielle shay is with us, welcome to "fast money" and the nasdaq market site what is the market expecting from home depot. >> it's interesting because home depot typically has an implied move, a move of 1 1/2%, except for this quarter in particular, it has an implied move of 3% a little bit more than normal. i think that's because last quarter we had a break away gap that adds to the positive momentum going into this quarter's report >> so home depot fell on your radar today. what was the action like today. >> so the action is a little bit slanted towards call buyers. we have a little bit more call buyers, input buyers not seeing anything too unusual. i'm seeing activity in the 245

and 240 strikes in next week's series. >> and the technicals, what are you seeing heading into earnings. >> i love home depot i think it's a great technical name it has a lot of relative strength especially in the home builder sector, and consumer discretionary. it's pulled back on to the 50 period it's a great area of support to buy it off of and consolidating. i'm looking at a potential break out. >> you're be bullishly positioned into earnings. >> i am primarily for the preearnings momentum move which is helped by walmart, in addition, but on the actual move it's interesting because home depot oftentimes will fall slightly and then rally after the report so i'm actually cautiously bullish for the report, and then in the post earnings move i would like to trade home depot. >> i concur with all of that what's interesting is lows, lags coiling to do something interesting.

home builders as a group has yet to exceed their highs of january 2018, so it might just be this constituent that would help the xhb do it. the itb got right there and started to falter so it will be very important, i think, lows maybe in a way has the catch up potential that would deliver even a bigger pop. interesting what you think about lowe's. >> definitely. lowe's is an interesting competitor for me, home depot, lowe's and home depot are neck in neck. home depot has been doing really well, particularly in the pro renovati renovation spa renovation space, and they have done a good job giving the experience for the pro republican valentine's day t republican valentine's d, and that's something that lowe's doesn't have right now. >> would you rather. >> let's do this >> set up by danielle, i'm ready to roll. >> go ahead. >> i would absolutely home depot, and she's talking about professional services. that's why they have the 3 or

400 basis point multiple advantage over lowe's, and i think they hold on to it i think also if i'm playing home builders, i would rather be in, would you rather, rather, and sometimes it maps on this desk but even when we talked about restoration hardware, that's another way you can be playing this consumer reinvigorating the home. >> i didn't know you had a would you rather graphic it's that official >> it's crazy. danielle, great to see you, danielle shay, simple trading.com. tomorrow, 5:30 p.m. eastern time, and take a look at the cramer cam he's got the full interview at the top of the hour live at the nasdaq in times square, much more "fast money" still ahead. turn on my tv and boom, it's got all my favorite shows right there. i wish my trading platform worked like that. well have you tried thinkorswim? this is totally customizable, so you focus only on what you want. okay, it's got screeners and watchlists.

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welcome back to "fast money" consumer reports starting to change its tune on tesla phil lebeau has the story. >> this report from consumer reports, it's based on survey answers from people who say here's what works in my car, here's what doesn't. about 400,000 people fill out this survey. after calculating what works and

what doesn't, consumer reports ranks tesla 23rd out of 30 brands, but more importantly they recommend the model 3 and model s, that's a designation they took away last year when they dinged tesla for questions about the build reliability and this runs counter to a narrative that's been swirling around the company over the last year, year and a half, and that has to do with the quality of the craftsmanship of the vehicles that are being built out at the plant in fremont, california we saw these pictures of the tent out in the parking lot, the permanent tent and people said that's no way to build a car that's the reason the quality snipped last year. according to "consumer reports" it is improving and the owners of these vehicles say it's improving as you take a look at shares of tesla, which by the way, have just been on a tear over the last six months remember they unveil the cyber truck, that's their electric pickup truck that will be happening next week in southern california. >> phil, they yanked the

recommendation, wasn't it just in february? >> i thought it was last year but i'll have to go back and check. i thought it was in the last "consumer reports" annual automobile survey. which they do this every year, and it usually comes this time of year, and it was based on what the owners of the model 3 were saying, you know what, the build quality is not that great. they have changed their tune this year. >> all right phil, thank you. phil lebeau in chicago for us. so on twitter, i get a lot of questions about tesla, and i got a lot of questions specifically for you. i don't know why they don't just tweet you. >> they do they tweet me. they don't like me. >> you're short tesla, what do you do when osaka is up this much you're a long time believer in the bear case but in the meantime, it's a painful short. >> these are great questions with a stock this volatile, i would never put a hard stop on it people say where's your stop you don't put a hard stop on a stock that moves 20%

i'm short 310, 315 what i think has happened since the last number we saw with the huge cash balance with the profitability, stuff we have never seen in the company, i don't suddenly say all those things i'm worried about with the balance sheet go away. >> theylessen because the ability to raise cash is greater now right? >> of course they do but a squeeze in the stock that may be coming about them actually overcoming balance sheet concerns which i don't think they have because i look at the net interest income of last quarter and it doesn't tell me they had that much cash in the balance sheet of the last quarter, it tells me they pulled a lot of lever on the balance sheet of the lags quarter. if you think the company is executing so well, which the valuation, which makes no sense anyway if they were executing and did have a balance sheet would go to another level. is it a car company, tech company, data company, this is what i struggle. >> you're still short i'm not drowning in a short. a lot of this has been played through the option market but to

say you put a hard stop on it, and being in the whole 15% on a tesla short is not something you lose sleep over. it's just not. >> if it were a risky short, you have unlimited risk to the upside the stock is up 60% since october. it is overbought, but it hasn't unwound the overbought yet, so either the stock has to come in or it's going to unwind the overbought, and still you have a 22% short interest, so this could go higher than up 60% in a month. >> higher or unwind. >> we know the june 3rd low, 175, here it is, 300 if it's going higher, the path higher, more likely than not passes through a lower price, sell off, dip, whatever word you like, that's what's due. >> implied volatility is important. this is high volatility, on a stock that's gone higher ayg got to be very careful plinthe options. >> up next, final trades sourced colors and flavors and are gluten & dairy free. they're all clean.

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nike. >> steve >> am i supposed to say something. >> witty and whatever. >> take it easy steve. >> especially for me >> mcdonald's watch the 187 level, i think you're okay to get back in. >> see you tomorrow here at five, "mad 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 is not just to entertain you, but to educate and teach you. so call me at 1-800-743-cnbc or tuite me @jimcramer right now in a totally new paradigm, one that must be put in context, it doesn't matte