theme out there. bond yields very contained and just a little quiet going into a new month. everyone's aware of the history. so far nothing's disturbed the calm we've got some fed speak tomorrow >> and big jobs report on friday, which is going to be key. >> absolutely. yes. so busy rest of the week despite it being before the holiday. i will see you tomorrow. "fast money" begins right now. >> live from the nasdaq overlooking times square, this is "fast money." tonight's lineup, guy, tim, karen, and steve tim and kiaren willing along shortly. ford slashing production of america's top selling car as the chip crisis intensifies. plus, apple rallying to a fresh all-time high. should you stick with this trade as we dive deeper into september. and netflix having a blockbuster day. we kick off a new trading month

with the three most important charts in the market at least according to our traders. the iwm russell 2000 small cap etf. guy, this is your chart. tell us what it tells you about the markets. >> hi, mel i'm not one to speak in platitudes, but i love these games at the beginning of months and i happen to think that the iwm is as important a chart we're going to look at you go back to last september of 2020 the russell was exploding from the upside 145 to 215 in a straight line. but since january, it's been going sideways in a well defined range. 210 to 235 and here we are now, the great louise mata, on the part non, she would say the higher in outer space. i think a lot of bulls will believe that it feels like it wants to break out to the upside. the most economically sensitive

names, believe it or not, amc the top holding with half of one percent. healthcare, financial, industrials, and tech. but this has not validated the move in the s&p 500. if you can get the russell to break out sort of above 235, then it's off to the races in the s&p 500. that's why i find it to be the most important chart one of the three >> considering that this is a quote that we often refer to on this show, guy, given by a person who we regard so highly as to put her on the pantheon of technical analysts, it's amazing you got the quote wrong. the longer the space, the higher in space is what you said. anyway, the thought is there grasso, what do you think about the iwm as a chart that could, you know, portend what will happen in the markets? >> so, yeah. i like guy's premise and obviously i bid in value and i'm probably a little too deep in

value to be honest because it did have a nice run. we saw that bounce where people switched out of growth switched into value. and then they reversed it. so now when you look at it to guy's point, the longer the space, the higher the space all over the place, that type of quote that he just nailed, it's not even louisa. it's guy adami it's been in a trading range and guy nailed that. so it's moving sideways. what i do like is that it touched the 200-day moving average for the last two months. it did not break down on that, which means it's building up more strength. but i would guess if you overlaid a ten-year, you can see the reason why this thing has not taken off. so there's a lot of people betting in the value bucket, but you need rates to move higher from here. >> i mean theoretically, the iwm

has been a measure of domestic activity it's a sign that the economy in the united states is heating up. so what do you make of this sort of purgatory it's lived? >> i can't wax and coin cliches like guy or steve, but i will say that it's right to point to this chart and question if we are expanding, this could be a great economic recovery on the reopening. we understand there are head winds. why are small caps underperforming. historically, the reason why it's a great chart to look at, i always use the iwm as a proxy and correlation as a hedge for emerging markets because again, em growth was aoften tied to small growth the acceleration in gdp was often tied to this i think it is in perurgatory i think since rates peaked, people have been questioning the strength in recovery or that the

fed will come back and overstep their bounds that's part of the tradeoff here it's not, you know, it's not time to say iwm small cap stocks are falling off the cliff. in fact, we may see this reacceleration, but there's a lot of unknown there >> next to the most important chart and this comes courtesy of tim. the dollar index why, tim, the dixie? >> all other charts, you know, pale in comparison the dollar is the most important chart all the time and it's particularly the most important chart when in fact you've got a fed that's in play in some way. and go back to 2014 and '15 when the dixie or the dollar index, which is heavy euro weighted and i think that's important here as well because again, the differential potential between a divergence between the fed and ecb. i know guy's not expecting the fed to do much at all.

i just think that if you look at the move we had in the dixie from june 2014 through second quarter of 2015, it was a 25% move in the dollar and it destroyed a number of different as asset classes. it wasn't a terrible time for equities but the question really for me is what's the dollar going to do when we get a little bit more direction out of the federal reserve? i know we've been struggling with this and in fact, the dollar's probably pulled back one and three quarters percent or so as we've gone through the fed's minutes. and so has volatility. i think the dollar is correlation with volatility. we don't want to see the dollar pick up the pace there's a lot of asset classes that would love to see it weaken if it sniffs out a fed cycle that the fed didn't see here, it would be very painful for equities and i don't think investors are ready for that >> the impact on earnings, particularly those who get their earnings from abroad, could be profound maybe something the markets

haven't factored in yet. >> he's right to bring up ten-year yields and tim is right to bring up the dollar and cite the song, wrecking ball. higher dollar is in fact the wrecking ball for some of these multinationals i'm shocked, that's the word i'm choosing to use, how relative strength of the u.s. dollar in the wake of everything we've seen be careful what you wish for that goes below 88 and you have to wonder what starts to happen in equity markets and i've said this a number of times a dollar that continues to lose strength or its value is extraordinarily inflationary and that's at the hand of the federal reserve. so i think tim is right to point out a dollar that's probably at the top end of the range right now. >> let's get to the next and last most important chart. today's payroll report with just two days ago before the adp survey showing the economy added just 374,000 jobs in august.

that is far less than the 600,000 expected karen, this chart speaks to you. why? >> yes it does. to me, the most important thing is the, are we going to see recovery and to see that, obviously, jobs is a very important part of the recovery, but it's tied to covid as delta has been more impactful than we thought. that's hampered jobs so i think if we start to see covid decline and then we see jobs growth then the fed and we'll see tapering and to me, it's not all terrible. it just means giant rotation so that's sort of what in a nutshell, putting all of this together, what's important to me the rotation that i do think is coming and i think we're starting to see a little bit today, faang is doing better than some of the real high flyers, but i think we'll see a more aggressive rotation out of growth >> in some ways, steve, this is sort of the root of all the

other charts that were highlighted today. all the paths lead to jerome powell and what he and his, fellow fed governors are going to do. >> yeah, so they all, look at them, they're obviously, to guy's point, they're all tied together so you have dollar you have rates you have jobs. so the big thing is that march 2020 cares act, we're going to start to see that money come off the table september 6th. if that comes off the table, you should see that there would be a big effect on jobs or jobs created. if you see that, then you're going to see taper if you see taper, then you're going to see higher dollar if you see higher dollar, then you're going to see the multinationals have a tougher time and you could see the s&p come in or level out if you're going to see all of that happen, then to karen's point, yields will rise. rotation into value will be

aggressive but the s&p hinges on tech and growth. so if you're rooting for the market to go higher, you're not rooting for that whole scenario that i just laid out to play out. but if you're long value, then you are rooting for that to play out. >> sort of makes no -- i mean, i get what you're saying completely, but at the same time, we should be rooting for a stronger economic recovery tim, we should be rooting for the training wheels to come off because that means the economy is good enough and that, in theory, should support higher stock prices even with a rotation at some point, there has to be a passing of the baton that period might be volatile, but it happens, no >> i think we're due to pass the baton. look at that, someone's calling me here. hold on. it's not the federal reserve yeah -- look, i'm using anna's phone, anyway, i won't get into it my point is that i actually

agree with steve though that you know, is good news bad news good news i think that the federal reserve, if we see north of 700,000 jobs added similar to what we saw last quarter, remember, this last round of fed minutes and even jackson hole comments, all came before that payroll report so if you now add that in, so those comments didn't include the inflationary pressure and the payroll report we get a payroll report for august that is bombastic, i think the fed is that much more in play. is that good for industrials and banks and those that will be seeing the acceleration from a better economy possibly because we think the fed's not going to overstep their bounds, but sometimes i think the market is two steps ahead and i think right now, the market needs bad news not covid delta variant, but not a payroll number north of 700,000. i'm going to say again, more fed

equals more volatility equals less for equities. in terms of karen's chart, i believe it's most important. not surprisingly, karen came up with the most important of the most important charts. i think, at least in the short-term, we should all be focused on this event. >> so those are the three most important charts in the markets according to our traders now let's hear from someone who does this for a living chris is the head technical analyst. he has three charts to play heading into september what are your three charts >> we brought along three of our favorite longs for the remainder of the year. here we are. it's september 1st we're eight months through the year where do we rank thus far? i bring up our first table here. the s&p up 20.5% through august. that ranks historically as the sixth best year to this far that

we've seen since 1950. if you look at the other years here, '87, '75, 1989, '95 and '97, discreet september returns. so that following month tends to, really tended to be mixed. it was a coin toss you had three down you had two up i just want you to be aware of that we know the seasonality here in september. i think you can look under the surface of this market as well it argues in favor of picking your spot. our second slide here, just showing you the percentage of stocks above the 200-day moving average. this peaked in april around 97%. almost every name was above the 200. we wrote about this idea of peak data hard to do a lot better. over the last couple of months, we have slowly seen this weaken under the surface. i don't think it's a huge deal, but it does argue that you have to be a little bit more selective under the hood here. so these three names that we

brought along are three timely longs for the remainder of the year in a broader environment where you probably want to be a bit more selective first name, we love insurance. aig. aig is breaking out of this five-year down trend it's pausing here in what's called the mid 50s, but big breakout over the last several weeks. i think this pushes towards 70 and we love the fact that insurance has held up despite bond yields down we took yields from 175 to 115 and insurance actually outperformed so good name here. i think this is the leader in this group we like it going forward. second name, another stock that has held up really well in a challenging macro environment. alcoa. the metals have traded pretty well here. the steel stocks have as well. alcoa, new high today. it's been in the 31 to 45 range for much of the last four or five months. just punched its head above 45

our target is 60 we like the group, we like the name and a favorite of ours going forward. then lastly, pfizer. maybe more on the defensive side, but when you take a step back and look at the longer term framework for pfizer, really this just broke out of a 20-year range. it's come back to this 45 level. that's where it broke out from i think very timely to add here. on the spirit of big breakouts, probably no better example here than pfizer. very timely at that 45 level and the other thing we love about it, there's like 20 analysts who cover it only six or seven buys so we think there's room for the sell side to upgrade this name as we move to the remainder of the year so three names aig, alcoa, pfizer good longs here. >> good to see you guy, which chart do you like >> alcoa can't wait for you '70s football fans. and tim will remember this i think it was the spring of

2018 and alcoa, like u.s. steel, was off to the races obviously we got the tariffs from the administration for better or worse, but those stocks got obliterated. now you're seeing a lot of these names get off the mat. alcoa reports in a couple of weeks. goldman sachs just put it on their conviction buy list. $51 price target in the middle of july. alcoa for me >> karen >> pfizer. definitely i think for a lot of reasons when i think about the rotation to things that are relatively inexpensive, big pharma is certainly in that group. so i like pfizer for that reason i also like it for the potential booster reason i know that it doesn't move pfizer as much as the vaccine moves moderna, for example, but i still think it's a positive so i know it's pulled back a little bit from the peak run to 51, but i like it here i think it's a good value. >> all right want to call your attention to

three big afterhours movers. chewy for one. plunging on earnings company missing estimates. shares are down by just about 10%. chargepoint rallying after posting a big beat okta steve, which of these do you want to talk about >> chewy i'm long chewy if you look at how many pets were bought on covid, it's not as if you're going to stop feeding your pet i understand there's more challenges ahead for them and maybe they've missed a number that analysts were focused on, but this is one that's going to be a long-term hold for me and i would bet sooner rather than later this punches right back above $100 on the stock chart. >> coming up, apple breaking out to a new all-time high today we'll break down how our traders are playing this record run. and later, the ticking time bomb in the big battle for digital ad dollars. how tiktok is changing the game.

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the feature rolling out in arizona and georgia first with more states expected to follow apple also working on new health features for its apple watch including a blood pressure monitor and temperature tracker. karen, which story would excite you more as an investor? >> i didn't hear the first one, actually >> it was the state ids. to your phone. >> yeah, i don't want to add my state ids to my phone. so it wouldn't be that one i mean, i already feel like, you know, i still vulnerable anyway but, i don't think i would want to add it. so i still like the stock though i am long. i do believe that we are still, we have a long way to go in the 5g rollout and we have a lot of runway for apple it's not cheap it shouldn't be cheap. it shouldn't trade at a premium. but i don't think that story, either of them, is what's going to drive the stock >> i think it's interesting that for so long, we've been so laser

focused on the features that the phone will have. the phone is not revolutionary it's evolutionary and here we have a potential use for the watch that could actually be revolutionary when it comes to health if it can help detect, for instance, diabetes, which could be way down the line, or high blood pressure. could medicare, medicaid reimburse you for this >> i think so and we're all excited by the potential here of apple's role in our healthcare, but i don't think it's going the mo move the needle in the short run. what's going to move the stock are fresh, all-time highs. it was a year ago almost to this day we hit the highs around 134. the stock's now picking up momentum well through those levels what i think is going to move apple is not even the services side of the story. i think there's some deacceleration in the app store, in apple care. operators are promoeing the

apple. the iphone is being pushed by everybody out there and you're getting to see apple, who's been able to elbow a lot of other suppliers out of the way to get their production done. dare i say it's a bit of a hardware story again for now and i think that's what's been great about apple. you've had different ways to get excited about this story >> guy >> i don't need apple. i don't need alexa or leeann rimes to tell me i need to exercise it's potentially a huge tail wind for apple without question. i also think the biggest tail wind for apple is they're in close to 100 or so etfs. in this world of passive investing, it really works for them is this going to be the first $3 trillion company absolutely and i believe a lot of analysts believe that as well >> steve >> i thought it could get to

175. i said that a long time ago. i'm still long apple i think this is a tremendously bullish angle for it we've only been talking about services now we're talking about health now we're talking about the wallet we're talking about satellite. there's so many other levers now that they can pull and the street high on price target last i looked was $190. i do believe that you're going to see a bunch of raises on price targets and i now think this stock could be above $200 sooner rather than later >> here's what's coming up next. >> dancing singing. advertising. tiktok dominating the digital ad game so what does this mean for the other social stocks? plus, ford pumping the brakes as chip shortages hit the automaker. buckle up. the traders are checking the engine on this trade in just a few. we've got that and a lot more

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welcome back to "fast money. shares of netflix topping today. the move follows a 10% gain in august the company announcing today it will begin streaming seinfeld episodes starting next month guy, now you're going to be bingeing that. watching it for the second time around, if not third is that one reason why netflix hit this high? >> well, it's clear the reason today and people won't believe that i've never seen seinfeld nor do i have any interest in ever seeing it moving forward. but that was clearly the catalyst today tim will correctly point out that netflix has been in a

sideways range since last summer we seem to be breaking out of it now. i've said countless times on this show that i think reed hastings is one of the more brilliant ceos on the planet i think finally, you're starting to see that second wave of netflix. so whether it's seinfeld or you know, all in the family or the odd couple, doesn't really matter to me i just think this is a stock you can continue to own. >> what are you watching now on netflix or do you not stream >> what am i watching on the netflix right now? no, i do not stream. although apparently, there are pharmaceuticals that can help you with that. >> that was a rhetorical question too much information there let's stick with media though and move on. watch how google and smaller players making waves in the big battle for digital ad dollars. julia? >> well, melissa, the battle for digital ad dollars isn't just about eyeballs and ad inventory,

but also where consumers are most receptive to ads and according to a new study out today, consumers are most receptive on tiktok for the second year in a row followed by amazon, instagram, and then google but while these markers might want to spend more on tiktok, it is worth noting that tiktok's share of ad dollars is significantly smaller than those peers. it says it's much smaller than amazon with 11% share and trailing dominant players facebook and instagram combined, which have 25% then google with 29% market share. the new report also shows which ad platforms are increasingly valuable seeing more are ads for mobile games then spotify then podcasts social media story ads, still a relatively new format, saw just

a 1% increase from last year now perhaps not convincidentall linkedin announced it would stop using its stories format and twitter shuttered its version. that leaves snap, instagram and tiktok focused on that and the ads that go along with it >> thank you, julia. let's bring in rich. good to see you. >> thanks for having me, melissa. >> how do they measure reaccepttivity because when i heard julia's report, all i could think about is how impressionable the tiktok audience is just because it's younger. >> actually, i think the tiktok audience is a lot wider than you think. i don't know about you, but it's a fun experience if you go on tiktok, you don't have to follow anyone. you don't have to know anyone. you just start using it and it just becomes this great, fun experience of just scrolling through. literally swiping through videos

and the more you swipe, it just seems to learn the algorithm is magical. just gives you more entertainment. it has surpassed in terms of time spent, people are spending well over an hour a day on tiktok just a fun place to be to your point on brands, brands want to be where eyeballs are. so if consumers around the world are spending more time on tiktok, brands have to be there and i think the most powerful part of tiktok is that they've trained advertisers, you know, don't just put your 30-second spot don't just take a commercial from tv or radio or whatever don't just put that same type of copy on to tiktok. really create tiktok really think about how you leverage the platform and create organic content and that sort of idea of making tiktoks yourself as a brand has really resonated with consumers and i think it's

why it's been so positive. >> so who's losing out if people are spending an hour a day on tiktok, where are they taking that time from? >> i mean, it's probably not a shocker to you in terms of like what's happening to the overall kind of television universe, but you know, we've seen for a while now, right, time spent on it have tv is shrinking you were talking about netflix and seinfeld coming to netflix time spent watching tv is shifting time spent on mobile has exploded time spent on gaming has exploded i think the losers are a lot of the legacy platforms radio's obviously losing tv is clearly down sharply over the last decade, but i think, you know, when you think about tiktok, they're one of a number of companies tiktok is doing amazing. snap chat's doing amazing. you're seeing twitter surge. you've seen the growth of instagram and facebook it's not like there's one winner i wouldn't put tiktok as tiktok's winning so facebook is

losing i think the reality is the category is taking share from legacy media behavior as consumers move from sort of linear tv over towards mobile entertainment and mobile content. >> right so linear tv more engage. more digital ad dollars going around the space what is it about tiktok, i've seen some of the numbers on their top view, you have a chance to hit their home page as a b2b or advertisers help us understand what is unique about this format that they can provide to advertisers and why it's been such a high growth area for them >> think about what you have brands doing a brand can create a sound it doesn't have to be an ad. you put it into the right piece of creative, everyone can use it health cosmetics used it last year then it went viral. look at what happened to olivia

rodrigo. she was in a disney channel show, but if you hadn't heard of her, now she's talking to president biden at the white house and she's got the song of the summer and probably the b biggest sensation of the year. time and time again, we see how content goes viral on tiktok i tweeted about the seinfeld segment just before i went on air saying this is going to be a real cultural impact and someone said in response, the response was you'll know the cultural impact it has by the amount of seinfeld tiktoks that are created a week after it starts airing on netflix. i think that says it all it's where creativity now starts on the internet. >> rich, always good to get your perspective. appreciate it. >> thanks. >> steve, you agree with rich that it's not the competing platforms that are losing out, it's really tv and the more traditional media.

>> i think they all tie in together because you're going to get tv clips that are on all of these different social apps so they have to be watching them to get these clips on in a lot of ways, but when i look at the charts, facebook's chart is insane in a good way. and snapchat, i'm seeing it more in kids schools on teams that chart is pretty amazing, too. it's up 50%. that's only on a year-to-date basis though and that one, no one's going to put that in a value bucket if you will but i'm starting to really see the base and the leverage that a snapchat has although i do see the tiktok in my house way too often, but i don't think it's at the cost of a snapchat and i think snapchat can go much higher as well

>> at the cost of a facebook karen has more of a problem dealing with problematic content, misinformation on its platform, for instance >> a lot of things you could talk about facebook having done or misdeeds. i guess it doesn't really seem to matter. i think it's too powerful. rich isn't worried about them taking share from each other and leaving them with declining revenues it's that legacy that you know, linear tv that has been the donor of advertising dollars to social media platforms i'm long facebook. i'm long google. my biggest position, but i'm starting to wonder at what point is that story played out already. if you look at how a viacom trades, it's not trading like there's a lot of growth there, even though there's big revenue numbers. so i'm sort of thinking we're closer to the tail end of that dramatic shift of advertising dollars and the explosive growth we've seen in google, which is great. i just don't know if it's going to continue.

>> if you follow that logic, guy, then the fight begins amongst these platforms for those dollars, which all of a sudden sudden become limited. >> yeah, and as much as i like to be sour on facebook, you know, i think they've proven themselves they can withstand the hits that come in droves over the last couple of years. again, i've said it a hundred times there's nothing i like about it other than the stock. you can make a compelling argument that even at the current price, facebook is a very cheap name in this environment. and chip shortages hit production so what is the impact on the auto stocks? plus, baba is back shares jumping in today's session. nas this train wreck of a trade filly turned a corner? we'll break it all down when "fast money" returns

welcome back ford shares on the move today after the automaker announced production cuts due to the ongoing chip shortage crisis phil has the details from chicago. >> they announced this late in the day and it essentially is going to hit the big profitmaker for ford the f-150. because of the chip shortage, the company will be idling the plant in kansas city where they

build the f-150. they're also going to shut it down next week and they're going to be reducing the number of shifts at the f-150 plant in dearborn, michigan dropping that down to one shift next week. again, because of the shortage of chips, that is limiting their ability when it comes to production we'll get the ford august sales number tomorrow. in terms of industry sales in august, we knew it would be rough and the numbers are finally in according to motor intelligent, the sales rate for the month of august with 13.1 million vehicles that was what people were expecting. and that is well below what we saw. these are the annual numbers back in april, it was 18.5 million we're seeing the falloff because of the limited supply. toyota, hyundai, honda, all reported lower sales in august due to the restricted supply then you've got gm and st

stalantis. both have had to cut their production of pick up trucks again, the profit drivers for those two companies in north america. if there is any group that is withstanding the shortage of vehicles, it's the auto dealers. aut auto nation, group one, penske look at almost all of the auto dealer stocks because of the used market being so strong and because of what they're doing when it comes the new vehicles and the high transaction prices. it's been a heck of the year for the auto dealer stocks >> what's your take? what's the analysts take on sales in the future? the longer there are production delays, you might go and buy a used pick up truck, which might delay a new purchase further down the line. >> that's a possibility. the only thing that people know for sure the that the chip shortage, it's now going to last for the next several months.

clearly covid in asia hurting the chip production there and plants in malaysia and other places and as a result, not enough chips are coming over to the automakers not just here, but around the world. and so you're going to see these restricted sales going well into next year, melissa i'm not saying we're going to see a 13.1 million rate every month between here and april, but it's almost impossible at this rate for the automakers to catch up on inventory. as a result, it's going to be tight at the dealership and the used market will remain strong >> thanks. tim, how do you process the shortage impact on production? >> i don't think i need to process it i can see it in the share prices down 25% of ford and gm. and how many times do we need to hear this news i don't think this is, again, i'm not killing the messenger. we've seen companies that are run better we're seeing companies that have a future companies that are well positioned we've talked about the f-150

being the most popular car in north america and one of the most profitable cars in north america. so look at the valuation in these companies. look at their positioning in the most exciting part of the auto segment and take that data coming out of used car prices in auto dealers and say you're not going to seethis demand go away it's very interesting to me, you price auto companies one way when they don't have a current business and you treat it differently in the longer term i just think investors need to be patient and there's an amazing opportunity for companies that have been through a war and this is a good war this is a very good situation to have >> so is this pretty much, karen, if tim seems to be outlining like an iphone delay people eventually buy one. just down the line but it's not a loss, still, even at this point. >> right exactly. talk about like if you don't go out to dinner, that is a loss. you're not going to make it up later, maybe you will. but probably not i think it's just delayed.

not denied and you talked about are people going to turn to the used auto, used car market, yes, they will, but those cars are also aging. the whole fleet is aging of cars in america, so i think it's just, you know, gratification delay. i'm long gm, but that's been just a terrible place to be. i think lyric beginning of next year is going to be very, very important for them and maybe we'll see some valuation out of cruz >> coming up, alibaba popping in today's session, but is this comeback for real? we're breaking down the china tech next. plus options traders are betting on a chip rift wth rephen isort crosses the tape don't go anywhere. "fast money's" back in two with directv stream, i can get live tv and on demand...

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alibaba jumping nearly 4%. tim, what's your take on this one? >> well, i think you've got a case wherefirst of all, on the charts, you could take alibaba to probably 210, 215 and we're still in a down trend. i don't think that the chinese government is going to let up. i do think though a message has

been sent, both not just to the investment community, but to some of the biggest digital and tech players in china and we see the fines paid and we actually see alibaba, who's got 85 billion in cash on their balance sheet, probably getting ready to make another payment i think you've changed the discount rate for how you analyze these companies. in other words, you raise the risk factor, lower your share prices i think there's been downgrades galore on the absence of more news, these shares can probably trade near the high-end of the range i've seen this so many times in emerging markets what's different about this is that china hasproven they can go out of their way, not only to benefit their champion companies, but to show their markets are wide open. while they haven't necessarily totally reversed field on this, they clearly have made a heavier hand on this one so i would still be cautious on this rally >> karen, what's the status of your position? >> puts that expired august

11 15th i tried to take it off my screen i have this saying you don't need to make it back where you lost it so i'm not really inclined to go back in this is you know, enough money to be down in one position and i'm out. >> grasso. >> yeah. this looks like a tremendous buying opportunity if you looked at the chart alone, but to tim's point, i hit up that trend line when we started the segment and the price to get back to is 206. so it implies a 20% balance from where we are now and to tim's point, can still be in a downward trend line and anything can happen tomorrow morning with a new headline out of china. so you have to be really quick at the switch and realize you're risking a lot to the downside as well >> guy, earlier, you were talking about this, you know, wave of etf investing and here we are, alibaba, one of the most valuable chinese tech stocks in

the world, heavily weighting in many etfs, so you've got to be really careful about what you own. >> we've said that for quite some time and we've said since halloween, boo, by the way, which is my want to say a series of lower lows and higher highs and we've been cautious until august 23rd. the stock traded down to 152.80. lows that we've seen in quite some time. reversed, closed herer on the day on big volume. we said collectively that was your tell. and this stock could probably trade up to the levels steve and tim talked about you could still see the stock in a down trend trade up to 205 >> coming up, we've got chip options coming your way. broadcom earnings are on deck. more on that when "fast money" returns.

sales are down from last quarter but we are hoping things will pick up by q3. yeah...uh...

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welcome back to "fast money. we are gearing up for a major earnings report in the chips space. br broadcom's results crossed the fire tony, what did you see today

>> broke out from a ten-month trading range this week and we saw options traders betting on a follow through for earnings. did trade about 1.4 the average daily volume, but the options market now is implying a fairly muted options earnings release here about 3.9% is the implied move, but one particular strike did stand out from today's action. we're about 10% of today's volume was in a single strike. those were the september 500 calls. where a trader looks like broken up a trade about 1,000 contracts purchased the september 500 calls for an average price of about $8.52. so this is a good example of a trader betting almost a million dollars in capital that the fundamentals, the earnings this week will drive a catalyst for the breakout of this well defined chart that we've seen here over the past ten months merging technicals and fundamentals in this particular options trade. >> tony, thanks for that for more options action, you can

watch the full show friday, 5:30 p.m. eastern time. quick take, guy, on avgo >> listen, 490 was the prior high in february traded sideways. yeah, i'm with tony on this one. i think the stock can go significantly higher from here well done by tony. big options action fan, by the way. i am >> number one fan behind my mom. time for the final trade tim, what do you say >> yeah. again, the great thing about autos is durable goods are not impulse purchases. i think the inventory stock makes this cycle more extended gm is a great fighter. >> karen >> yeah, going into the show today, i thought pfizer was going to be my final trade given where it's come back it still is. nice to have the chart, also so, pfizer >> steve grasso. >> so you remember in apple when we used to have the spear where there was everything

there was your computer. there was your laptop. there was your phone now your phone has become the universe apple is my final trade. i think it goes much higher. >> guy >> i'll second the chris marone love alcoa. >> that does it for us, but do not go anywhere. we have a special bonus edition of "fast money" coming your way right after this break stay tuned ♪♪ ♪♪ ♪♪

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welcome to this special 6:00 edition of ""fast money."" jim cramer enjoying some well-deserved time off tonight tonight a flood of hiring announcements from retailers to financials to folks manning the supply chain could this hiring spree hit a speed bump if covid cases keep rising. plus, the crackdown in china. could the regulatory hammer in beijing go beyond tech stocks and what will be the ripple effect we'll talk to a top em investor. apple is