those extremes of all value or all growth we've seen some of that maybe overshoot that a to some degree. >> looking at it next week wie got an all star lineup as we mark a year for the pandemic we'll talk to ceos don't miss our first cnbc with ark, ceo cathi wood. we are out of time here. this show, thanks so much for watching "fast money" starts now. >> i'm melissa lee and this is "fast money. steve grasso, won win, pete najarian the chart master says it's time to pull the plug on the energy trade. big winner a handful of names breaking out in today's rally should you stick with that's trades later, virgin galactic, crashing

back toe earth we start off with a big rally to end a wild week. stocks surging to the close with averages gaining more than 1.5%, every sector posting gains led by energy. the index started in the green buyers came in strong and it was off to the races rallying throughout the afternoon to close up nearly 2%. the range interday, 120 points, so what drove the bounceback grasso, what do you say? well, i only heard a little bit of your question, but i'm going to go with whatever i think i know about the market right now, because i have a sneaky suspicion that you're talking about market volatility. what we've seen is that switch between value and growth and coming out of growth and into value. it's all about rates, melissa.

every one is knee-jerk reaction right now. what they own, what is leverage to rates and where do they think the market's going so i think the machines or the algorithms are taking over to a large extent, because anything that is levered to a rate issue, don't want to buy tech, and the problem is -- i mentioned it last time i was on -- a company like a waurkt or a costco, they also are levered to rates. they trade like bonds. when you think you're in a quasi safe condition with a walmart or costco, you really aren't in that safe a position, because their cost of goods is going higher they cannot pass on those cost increases. think about who buys their stuff. you're not going to be able to raise prices on that income bracket no matter what it is, because that income bracket and everyone's income bracket is spending more on gasoline and

the rest of the goods they charge the grocery stores, at the gas pump and everything else people think you're safe in tech and in quasi tech. you're not right now >> i'll go to jeff mills here, because today 156 on the ten-year yield is ok yesterday it was not what has happened? >> yeah. that's why i think as steve said, it is a little bit of a knee-jerk reaction the market rallies, doesn't make a lot of sense i don't know if those particular levels are meaning steve and i have been singing off the same sheet of music for a while. i agree you want to be in the value trade. there was a buy fur indication in tech and in growth today. you have the speculative names, the story stocks, those types of companies that really haven't cooled off yet if you look at the charts of

twitter or snap or tesla or companies like paypal or square, they still have some room to come down. interestingly, they didn't participate very much. you look at bapg, take facebook, amazon, apple and netflix, for example, these are stocks that haven't gone anywhere for probably about six months. they're approaching technical support. if i was looking in growth or tech, i would certainly rather be there but i would generally fight the inclination to be too negative i'm hearing comparisons to the 2000 because this is a fed driven market, retail is involved, there are high valuations, all these things, but the fed is a major difference it's fashionable to hate on the fed and i understand why they were hiking rates in 1999 the earnings yield is 540 basis point above real bond yields

i think that's important lastly, this is a much more broad market than what you had in st2000 you had 35% of stocks trading above the two-day moving average. that's 89 or 90 now. i have think that's a decent setup even if we have volatility over the coming weeks. >> they were mentioning how the larger cap big tech stocks did well and they haven't done anything since last fall. maybe in this kind of environment that's what you want is that how we should be looking at these names while they didn't participate too much on the up side today, they didn't participate much on the down side yesterday when the market was caught in the swoosh lower. >> my imagine and i are in harmony here i like what i'm hearing. there is that buy fur indication or dolphin race against the hyper growth revenue and the bank stocks, which are strong

leading companies. and speaking to the bounce, like yes, it has to do with yields, particularly where we started with yields. in instance we were higher and became lower the volatility is what's leading to that bounce my point which is it's hard to be constructive on the market and terribly bearish in technology the sectors are not going to have the same expansion. what you're seeing is that yes, you aren't seeing the same volatility in the stocks as you are in other pockets of the growth sector, and that should be the case. which speaks to the fact that there is some safety to be found there even in a tumultuous market i would have had to be hiding under a rock to not see that in terms of where the real opportunity is to get short or for there to be major russells

in names, that's going to be outside the risk curve >> there's a lot of harmy off the same page of music going on. pete, where do you stand on this what have you been doing because you're on active trader. in and out, in and out so what have you been doing. >> it's never been better. how about that it started in november, november, december, january, february march has been crazy we traded 54,000 contracts yet looks like we traded about 2 million today. we've got enough volatility to make the market interesting. i can't stand the phrase "value." so i'm going to say quality. by that i mine take a look at what happened in the dow today, the give or take 800 points it flipped from the absolute lows to the highs semiconductors, you've got

intel. energy, chevron, technology, cisco, ibm, all these different areas of the market we're getting the moves to the up side you look at all these names. then you look at the semiconductors and you see quality names. you've got great balance sheets. you've got pesened xpi and the like there's so many more what we were seeing today is the rotation out of -- and we've continued to see more and more acceleration -- because those names didn't pop much but the pe type names are definitely right now under pressure doesn't mean it's going to last forever, but it certainly is part of that rotation we're seeing and we saw the names today that really people want to be in. i'll tell you what look at the flip you got out of a target or a lot of the quality names that were getting sold off for the reasons of everything was being sold, right? we have the dow down, the s&p

down, the navd down. suddenly we woke up and said, you know what? not every one of these companies needs to be sold >> what was your highest conviction trade of the week and what day did you do it on? >> well, it's been energy for me for a while. energy and some materials. energy has been a freak show i bought exxonmobil calls on monday i was out by wednesday i got chevron by wednesday i was finished by thursday afternoon. i know we'll hear more about it from the chart master, but this run started at 38 or $35 back in september. we're looking at $66 for crude it's did beta names that have really within splinting to the up side, so that next tier of energy, that's what's explosive. i continue to buy and trade

those names thought the week i'll tell you this the s&p, the spider calls today, the got bought at 12:15 today litly was the turning point in the market it was incredible as they bought march calls in the spider, about 20 s 20,000 of them >> energy was the best performing sector. the chart master says the rally may be running out of juice. so let's go to carter worth. carter, take it away >> well, just what you heard there's a reason that a great trader would enter and then exit twice he made the case that if you really wanted to stay for a longer duration, you would have stayed but sometimes things get a little hot the energy move is a little heart. before we look at the charts, consider this. february 4th, 5th, one month ago, energy was the exact same price was at the 09 low.

we've come to life in a big way. we're so far off the low, best performing sector since the march low, up 120% let's look at four charts, they're all the same chart, just different time frame no anno tagss or jumgts by me. second chart, now i've drawn a line, a simple exercise of figuring out where overhead supply comes into may. where people who have shares from a higher level, having lost a lot of money but retained it are interested in recouping losses you're back to ha line look at the same chart taken back a bit further same line. then the final chart, taken all the way back to 2010 after breaking sharply from well-defined lows and one of the most epic breaks on record, you go all the way back to, quote, the scene of the christmas, the point where people who have now had their money returned to them

become interested sellers. remember, that's only half the supply supply from above, wow, i got my money back, i've broken even but there's supply from below. people who bought well, one hour ago or one, two, three months ago. >> xle is mostly integrated. is there a difference between that chart as opposed to xop or some energy indweks? s. >> they all have their different characters slumber jay and halliburton and exxon and chevron, we have to weigh the entire sectors it's a very in play thing. i'd end with this. amazon, apple, google, they were loved. financials were hated. now they're loved. this is a little too loved now >> thank you carter worth. we'll see you in a few minutes jeff mills, where do you stand

on energy? >> yeah, i mean, i can absolutely understand what carter is saying that's 60 on the xle is going to be resistance most likely. but that's 123% above where we are right now, so i think you have a reasonably clear path there. if you're taking a longer view and you want to talk about names, i've mentioned eog, up 50%, that's a big move twaps people will take profits it's the 2018 high you had opec decide it was not going to increase supply it doesn't look like they're going to do that anytime soon. if you have a little resistance at that previous floor, i still think you can move higher. >> grasso, do you have an energy name you like? >> i think i'm going to stick consistently with xle. i think you have 20% to the up side we have a stimulus getting done,

b, no one is even talking about an infrastructure plan granted, that's coming if you can't get the votes for it, it's eventually going to be coming in the summer that's going to be huge for energy now, think about something else. every quantitative model that the market was seen has always sold -- i'm sorry, pete -- sold value, bought technology i get what pete's saying about what is really value so think about this. that modelling is probably going to be turned on its head what i mean by that is that they're going b to selling technology, buying value everyone's going to have to scratch their head on this show when all of a sudden, energy, industrial,chemicals actually become momentum names and they're going to be a much larger position than 3% of the overall under da seize >> that's a good way of saying

carter is wrong. coming up, houston, we have a problem. we'll break down the big move lower. it's not a "fast money" friday without a game of trade it or fade it. ndheras he names a t tde when "fast money" wrurns to go beyond ordinary etfs. and strengthen client confidence in you. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. it all starts with an invitation... ...to experience lexus. the invitation to lexus sales event. lease the 2021 rx 350 for $429 a month for 36 month's, and we'll make you're first month's payment. experience amazing. bike shop please hold.

bike sales are booming. you need to hire. i need indeed. indeed you do. the moment you sponsor a job on indeed you get a shortlist of quality candidates from our resume database. claim your $75 credit when you post your first job at indeed.com/bike.

welcome back to "fast money. we're closing out a volatile week for stocks. gas, american express, oracle, viacom, cvs, what should you do with these stocks now if you own them what better way to find out than a game of -- >> trade it for fade it. >> that's right. trade it or fade it. viacom more than tripling over the past year. what do you say? >> i think it was not loved enough, mel, over a week ago and it started to get that love and it's been moving to the up side. i look at this company and say it feels like disney, it feels like netflix a way because of how they're moving towards the streaming world. there are analysts who think the streaming world could, at least for viacom, worth what it is by

itself so 44 added to the $44 billion of the company itself. when you look at netflix and it's trading somewheres above 200 plus billion, makes you wonder if there more up side i think there is, so i'm bullish on this stock. >> do you disagree >> it's four-point pete mentioned disney we used the recent move to trade out of viacom into disney we think it's better to capture. the landscape seems to be shifting in that direction viacom at least it has been an acquisition target for someone looking to bolster their library. right now at 18 times forward earnings, just think it's too expensive for what it is >> all right let's move in. talk about the gap, the stock jumping after the earnings report yesterday

more than tubl where it was a year ago fade it or trade it. >> i'mfading its it's 21 times. compare that to the five-year average it's got five times more debt now than it did prepandemic. recent revenues are light but seems to be this euphoria of possible growth prospects. if you look at the price action, look how that stock tested 28 and quickly reversed even in a market that's being void so i'm fading it >> steve >> yeah. i don't discount anything that bonawyn said if you look at the crown jewels inside gap, it's old navy, athleta, and those are going to gain market share in 2021. it is slightly overbought on the rsi -- did i not say trade it?

it is slightly overbought. rung at 72 that probably means its takes a step back a little bit but i think you're going to see upward revisions in eps, same way morgan stanley put out a note saying you might see that going forward and that's led to a bunch of price target increases across the street. usually with these type of stocks they run as a mag jet towards those price targets. i'd say trade it but if you want to trade, aberc abercrombie. i know i'm not playing by the recalls. >> i'm going to move on. too much time spent on grasso tonight. american express, up what do you say? >> i'm going to have to fade this i owned it until recently and i got out of it. when i look at what american express a has done they've done everything right but the reason i owned the stock

was the fact that it was trading at single digit or very, very double digit pe levels now it's trading that prejudice at about 37. the forward it's still trading about 22 this is the highest level of, per pe i think it's stretched >> steve grasso. >> i've opened this one forever. i still own it i think it's starting to hit its stride you have to look at what prices are going to do. for me, you look at this it's probably going to be raised, kor gated pricing raised in 2021. we've already seen raises. that means it's going higher china cannot produce their own corrugated packaging due to environmental concerns, so they have to import so for me this is a trade. i'm staying long i think the value is over a

hundred. so i'm a buyer here and i'm staying long >> jeff you also like this one >> yeah, i do. i think it's well positioned to capitalize on the e-commerce boom, the increase in shipping volumes. you hear what shipping companies are saying about where they are today and where they're likely to stay. the company appears to be very con seine shus. i think that's going to be a tail wind for companies going forward. i agree with steve less than one time forward sales, i think there's a lot of room >> coming up, virgin galactic falling another 10% today. later we're going shopping for opportunity in the options markets. the one home retailer that could be on the brink of a breakout. all that and more. stay with us "fast money" is back in two. h! honey, you still in bed? yep! bye! that's why we love skechers max cushioning footwear. they've maxed out the cushion for extreme comfort. it's like walking on clouds! big, comfy ones!

oh yeah! what if you could have the perspective to see more? at morgan stanley, a global collective of thought leaders offers investors a broader view. ♪♪ we see companies protecting the bottom line by putting people first. we see a bright future, still hungry for the ingenuity of those ready for the next challenge. today, we are translating decades of experience into strategies for the road ahead. we are morgan stanley. ♪♪ into strategies fodad, i'm scared.. ♪♪ it's only human to care for those we love. and also help light their way. ♪♪ it's why last year chevron invested billions of dollars to bring affordable, reliable, ever cleaner energy to america. ♪♪

your doctor gives you a prescription you could use free 1-to-2 day delivery from cvs... but aren't you glad you can also just swing by to pick it up, and get your questions answered. that's healthier made easier. from cvs.

shares down 10% after he sold his stake in the company. virgin galactic calling nearly 27% this week. pete, you traded this one. >> yeah. and i open the stock still, mel. it's been a great trader now me and part of the reason is for option people, and you know i am, the implied volatility is down to 150, so it's still extremely high i've owned the stock for almost a year now and i've collected enough to be able to almost own this for free, so i continue to own on the stock and i'll

continue to sell calls >> quick, final trade. bonawyn. >> jeff mills. >> live nation just broke out. it's going higher. >> steve grasso. >> eft, this one is going aggressively higher very soon. >> pete. >> western digital, it's hot it's going higher. >> that does it for us don't go anywhere. options action coming up next.

california phones offers free specialized phones... like cordless phones, - (phone ringing) - big button, and volume-enhanced phones. get details on this state program. call or visit

now california phones offers free devices and accessories for your mobile phone. like this device to increase volume on your cell phone. - ( phone ringing ) - get details on this state program call or visit happy friday actions options fans here's what's ahead. >> the tech sector, it's all about disruption and speed or is it carter worth explains why the tech tortoises could end up beating the hares. then even if interest rates and volatility take their toll, tony zanz has a play that could keep lumbering higher and a life boat can only hold so many passengers before it sinks as well.