relative outperform we are today's tape europe definitely bore the brunt of the selling the u.s. dragged it down at the open, but not as pronounced as the u.s., which ended down 2% for the s&p. the dow down 1.6%. the nasdaq down 2.8% thanks for watching. "fast money" starts now. >> tonight on "fast stocks" rocked is a major sell-off grips wall street, the market on pace for its worst month of the year. coming up, breaking down the aftermath today, sell-off and finding you opportunity in this big drop, welcome everybody i'm melissa lee live at in times square let's get right to it. we start off at ground zero today, sell-off, a rate shock sinking stocks look at the nasdaq today, the index dropping nearly 3% for its

worst day since march, as the ten-year yield spiked to its highest level since june let's break down the action. what did you make of the sell-off today, guy? >> interesting orderly, makes sense. again i thought this was going to happen for a while and i've been wrong in that thought process but now we have a two-day period of time where you are starting to see some of these things come to fruition. i still believe ten-year yields are going significantly higher from the levels that we closed at today i think inherent in that belief is if big tech sells off and resources energy and banks do relatively well and i'll stick by that. in terms of the sell-off, again, i don't know why over the last couple days the market's choosing to acknowledge all these things in the form of yields and dollar rising and the market going lower but finally is and makes sense to me >> karen >> i'm not quite sure what to make of it because there's a lot of things that you can point to that seem to add a little bit of fuel to the fire

clearly rates and the connection of rates the function of the expectation of the economy getting better or fear of inflation not being transitory and maybe this is getting away from the fed that's one fear, not a good one. i think that warren's comment about powell being a dangerous man was not helpful to the market we don't really hear much about his response as much as this, you know, that's kind of a good sound bite for her so that wasn't a good thing. jeremy grantham, little mr. sunshine bearish that was another leg lower and i guess all part of this rotation and it makes sense to me out of the much higher multiple stocks and i differentiate between those, the sort of igb names which have super high multiple, the service now and crowdstrike and great companies but just really expensive multiples and i always think what i own is of more value in that it should have, it

has a lower multiple, so i feel like it should have some traction but that didn't work today. alphabet, facebook, microsoft, apple, amazon, all of them down today. i'm not super worried about that i think we'll see the jobs number thursday i guess it is, is going to be pretty important to know, does the fed have any room to hold back? i think they don't i think they got to get going. >> i think the second concern that karen highlighted is the most concerning, at least from this observer's standpoint the last time we saw rates move higher and saw market reaction like, this the backdrop of this i don't think was real inflationary fears, where inflation could be more than transitory that's only sort of materialized in the past couple months, where we're seeing the supply chain snags and things taking much longer to work through the chain and here we are, so is this market reaction, is this different this time around i hate using that phrase but is it different this time because of the backdrop?

>> i think it feels different and i think if anything, we were concerned about the economy opening and being so aggressive, and we're throwing the stimulus bill and infrastructure bill on top of it. like i understand rates have moved 25 basis points in three days that's unsettling, if you pro rate that over the next three months but that's not what's going to happen. to me, i think there's a limit to how high rates can go i think like i think everybody on this panel, i do believe that there is more medium term inflationary pressure not transitory labor, service, factors that are not going to leave us any time soon and i think the fed needs to acknowledge that at some point and maybe behind closed doors they're going to start to in this next meeting i think the elizabeth warren comments on top of just some anxiety over where you have had some of the most important companies in the market and again we started talking about apple supply chain, we started talking about nike supply chain.

we talked about autos. we talked about chips. that's the most important thing. i just think there's a limit to where we can go. i don't see liquidity wholesale being taken out of the market. tina is still alive and well the problem for today and why it's great to have calm, cool, collected carter on shortly is, look, you close through the lows of last monday and tuesday it's the lowest close since july you have some technical damage we haven't challenged the 100-day arguably since back into last march, certainly last september through november and the dollar set fresh new highs closing up back to where it was last november, and does look poised to move higher, which will be difficult, but guy said it, value stocks especially energy, transports, and i even think industrials look okay to me here and i think stay there >> when you see the zooms of the world, the squares, et cetera, crushed into today's session, dan, is that going to be the

trend? will that continue or are these opportunities? >> i don't think they're opportunities just yet you mentioned square, an outperformer and now an underperformer, only up 11% on the year you look at the high valuation needs, you mentioned zoom, topped out literally last fall here, so the valuation for many investors was becoming unpalatable relative to the expected deceleration in their growth post-pandemic and i think that's the realization that's going on right now in the q1 of this year, when rates were rising, i think the expectation very simply was that the pandemic would be in our rear view mirror and maybe the fed had it right because that's why rates topped out in late march maybe they had it right about some of these price increases being transitory i think rates going higher right now is not actually saying that, and therefore the deceleration that we're seeing not just in earnings, not just possibly peak margins but the deceleration in the economy specifically q3 gdp

started the quarter, most estimates above 8%, now looking like 3%. that seems to be a little bit of a problem when you have rising rates now and the valuations that we do, and i'll just say this from a technical standpoint, there are some of the major market leaders who have finally broken the uptrends in place for about a year or so. microsoft, alphabet, take a look at that, facebook had already broken, i think fundamental reasons. the fever's kind of breaking and some of the mega cap names and we talked about this last night. i am not sure a rotation into financials, because net interest margins are going to be higher or energy, because we have some supply demand dynamics that seem to be offputting here is going to keep this market afloat, so i think the likelihood of a retest of that 4,100-ish moving average in the s&p 500 seems more likely than not at this point >> guy, are you with dan on this we did see a relatively outperformance of banks measured

by the kre bank etf. >> i am with dan the point that i take away and i think the point that he made is the fact that these names can do well they can rally, but they're not going to be supportive of the broader market they just don't have the size and scope to do that obviously the names we talk about all the time did, but these names don't. so although i think banks resources, energy can do well, they're not going to be supportive of the s&p 500. dan brought up 4100, carter will mention that as well, winds up with the 200-day moving average which we haven't seen in 15 or 16 months. it all makes sense to me again, i'm not saying it's going to play out this way but over the last couple days at least it has. >> karen, you're a value investor are you celebrating? do you feel like the time is here for the value trade to stay strong >> i hope so if you looked at my p&l for the

day, it was not a lot of celebration worthy step. i do think the bank makes sense. i understand what dan is saying. doesn't translate into a net interest margin spread but what it does, we've known for years when the two-year ten-year gets flatter the sentiment against bank is worse. when it's steeper, the sentiment is better. the other thing about banks they have multiples of 11, so when you start to see multiples getting hurt, 11 is a lot better place to be than 48, like some of the high flyers so i'm comfortable owning those and comfortable owning a united rental, and some of the industrials, for me fedex was down a couple poinlts ts today t disappointing. i like getting ready for value, but you know, i have some faang as well, that didn't do well today but i think facebook is

value. i didn't buy it today but that's starting to, if you take out the cash it's just over a 20 multiple, so that's interesting to me. >> let's bring in the chartmaster carter worth he says there could be more downside ahead carter, what are you seeing? >> you bet, hi, team before looking at the charts, you've covered key words, dan, damage done. that's exactly right guy, talking about trend lines breaking, and so let's look at the charts and figure out where we might be headed the first chart is just the chart of the s&p and you can see that it is a perfect 45-degree angle. no other way to characterize it and we have broken trend you can see the trend line and the break. look at the second chart this is the exact same chart and time frame but you see the distribution pattern, head and shoulders formation if you want to name your formation but what distribution looks like, the crack, last monday we rallied

back and cracking again. look at the third of the four charts that we have here this evening. this is one and two combined what do we have a perfect up trend, perpetual motion machine, one group, next group, rotate and starting to tray breaking trend and head and shoulders formation and the final chart, where might we be headed we know this is the 13th instance in history where the s&p has gone more than 12 months without a check back, fully, to the 150-day moving average and that comes into play around 42, 35 so last monday's low we were down 5.2%. we're only down if you think about it 4.3, 4.4 and feels like we've been in a war. i don't think the market's really ready for any real selling pressure because we haven't seen any in so long. 150-day is the first stop. we'll see it from there. >> 42, 35 and carter, we had you on, on friday talking about rates and basically from what i understood, you said that rates

would only go so much higher from that point on, so is this drop that you're forecasting of 4235 in the context of rates coming back down >> well, interestingly i think as this gets worse you get a flight to safety in rates. rates won't spike. tim referred to that, only so far they can go in this sequence it's been a big move and where you likely don't keep going because the consensus is once again calling for two and three and all these quite hysterical things i don't think any of that is coming >> mathematically, carter, the traders are talking about tech and with the decline in tech rotation out of technology, the other parts of the market simply aren't big enough. you talk about this a lot in terms of mathematically. at some point tech has to pass the baton. what are you looking for in terms of new leadership? >> yes, i mean, i remain in the camp that you want to stick with companies that are "long-term

prosperous" not cyclical they're disrupting what is what investing is. investing is finding something that has a long arc of prosperity digging around in the dumpster and finding a cyclical for a balance, you called it for nine months, got out and back in is hard work. i think you stick with the marquee names over time. >> so cool carter, it's tim. and the two charts that i think investors should be focused on that had interesting days on the breakout or breakdown, semiconductors, look at the smh and the dollar one or the other more important to you, and anything you saw there? because these are both stocks or indices that i think are telling a lot about where the market concerns are >> i think you're exactly right. one of course we know, the dollar has all the hallmarks of a bearish to bullish reversal, curling out and carving on the bottom and the other is heretoforegreat winner semis that have been basically stalled for the better part of seven,

eight months while they haven't broken trend, that is the risk again, do we though play from a stock like u.s. steel or energy in any given day drops 7%, 8%, after they rally not my thing it's a hard way to make money. i'd rather stick with the names that over time have been great market leaders >> carter, it's dan. i tracted the etf and tesla, the largest holding, gone up 15% since july 1st and arc has gone down about 15% you think about the other names in the top ten, they're supposedly these innovative names, high valuation. most of them are down. most are down a lot from their 60, 52-week highs that sort of thing earlier this year. what do you make of that underperformance from some of these prior high valuation

winners and then this disconnect between tesla, the etf in and of itself is not a big deal it's captured the minds of retail investors which is why i'm looking at it. >> spot on if you were to look at a two-line chart of tesla, and that arc etf, they're literally parallel lines until the last three months, where they're diverging. constituents in the etf are ruling just as you said, moving averages are flat and/or inflected lower and tesla, for whatever reason is taking on a defensive characteristic it sounds crazy to say that, and yet it is. it's relative strength over the last couple of sessions is nothing short. >> carter, always great to hear from you thanks so much >> you bet >> carter worth of cornerstone mac. back to you on that chart. as carter mentioned in his last comment, tesla's been a relative outperformer particularly today, the nasdaq down 3%, tesla's

losses were a fraction of that >> yes, so that's one of the reasons why we also bring that up because ultimately if they join the party to the downside, tesla is the sixth largest name in the ndx, they make up half the weight of the index of the 100 stocks again i'm tracking this relationship from a sentiment standpoint what have we seen so far this year ipo, high valuations get killed. we've seen crypto off the highs of gotten killed we've seen spacs off their highs getting killed this could be one of the last pieces of the puzzle and the break of alphabet and microsoft of the one-year uptrends, tesla's joining the party, then you start getting this kind of steamroll effect a little bit and that's how i think you probably achieve those lows near 4100 over the next few weeks in the s&p 500. >> you talk about faang a lot and the importance of faang and holding up the ndx but tesla, we sort of forget that it's gotten all the way up there guys. is that the last sort of key to the puzzle here in terms of whether or not the markets will

actually break >> yes, a key without question, but the stock has had a significant run to the upside. so in my opinion, tesla, you have to be talking about tesla with a 650 handle for me to get concerned in terms of its scope in the broader market. i think to carter's point, staying with things that work, you're trying to figure out where you're looking to re-enter some of these names. we talked about apple, if you want to get granular for a second the 141, 142 level makes senz. we've seen a number of declines to 30% and we're in the midst of one now. if apple trades back to 135 that was the prior all-time high i think back in april, that's he a 15% move, that lines up perfectly with what we've seen historically that's the way your mind has to be working right now >> our next guest warns the spike in rates is breaking a tech bubble. dan suzuki from richard bernstein advisers great to have you with us.

>> thanks. >> how big is the tech bubble? tech is big, large cap technology versus the growthier higher valuation names where is this bubble >> i think you hit the nail on the head, melissa. this is a monstrous bubble it's not just a speculative market the difference between the market and a bubble is pervading society, everywhere you look and all over our economy, our real economy as well as the market so i think it's not only expensive and big and also pervading society so i think that, you know, the difficulty here is how you manage through it, just identifying it is only half the battle figuring out how you manage through it is the other difficult part i don't claim to know exactly when the bubble's going to pop so i think the only prudent alternative is to the bigger the bubble gets, the more crowded the bubble gets, to simply continue to shift your portfolio to the other side of the see-saw. a vacuum in the markets sucking in the capital leaving other

opportunities that are left for dead and i think that's the real thing that's going to protect your portfolio, when and if the bubble pops. >> dan it's karen. thanks for being on. let's say you have, like i do, i have particular views about parts of the tech bubble you call it and other parts of the tech bubble. do you think we will see a convergence there, maybe or do you think they just all go down the same how do you foresee this bubble deflating? >> karen, i don't think they're all going to go down the same. if you just think about what's happened today in terms of the sensitivity, i agree with you what you were saying before about the lower multiple stocks by definition should be less duration, less in straight sensitivity because they have earnings today what really makes a lot of these high growth stocks more in street sensitivity is you're connecting for earnings 20, 30 years down the line. this interest rate is a lot greater.

i agree, today was interesting but i do think the one thing to keep in mind is they're all correlated and so the closer you are to that bubble, which any types of tech stocks are sort of in the epicenter within the epicenter of the bubble, the more it's going to be taken down when and if the bubble pops so something to keep in mind but i agree with you, if you're trying to avoid the riskiest names it's the most expensive stocks. >> i hope you had the opportunity to listen to the conversation we had earlier, trying to figure out if the move in rates signifies an economy that's doing better or if an economy that's just sort of going nowhere to lower but price is out of control. what are your thoughts in terms of the move in yields and what does it mean for the broader market >> yes, guy, to my opinion, my personal opinion, i think it's a bit mixed. i think the story, you know, this week in the rates has been really one of supply and demand and what the fed's going to do, but i think that, you know, prior to that, there's actually

an underpinning of a better growth that's coming down the line if you think about it, the growth, the slowdown in growth that you're seeing today is really a function of delta and we're pretty much past the peak there. i think there's plenty of room for recovery so if you believe that story, it's not only going to be the supply demand dynamic that drive it but it's growth on top of that and inflation on top of that, so with those three big drivers, i think that i agree with you rates are going to be higher and i think it's not going to be a straight line but plenty more room to go >> dan, and you use the term monstrous to describe the tech bubble, that sort of sent the red lights flashing in my mind, because i was thinking, well, if it's that monstrous, aren't the entire markets going to go down? how can the other side of the trade, the value stocks actually do okay in a market that's going to be taken down by a monstrous tech bubble? so why would you recommend that as opposed to just going to cash it this is such a big thing that you're forecasting >> yes, melissa, it's a really

good question. i think that the ultimate protection from a bubble is getting away from the bubble as far as you can so to some extent at some point, the cash component may be called for and may be part of that protection story. i think right now, other areas of the market still have so much room for recovery in are not pricing in that recovery, much cheaper than the tech stocks that they offer a lot more potential upside and moving to the other side of the see-saw, it's not all a one-time trade. you can't rely on historical relationships. for example 2000 and 2001 the two-year period, tech stocks were down 50% to 60%, s&p was down 20 but small cap value stocks are up 40%. now who would have thought that small cap value stocks can be up let alone 40% when the s&p is crashing and that's the power according to the other side of the see-saw. if you can find the other side of the see-saw, it can offer

some protection. >> dan, great to hear from you, thank you. >> thanks. >> dan suzuki, rba advisers. tim seymour, you like these plays on the other side of the see-saw. what does it feel like in the meantime when rates are elevated and tech is the driver >> i think we had rotation in the market since may of 2020 but the banks are running back in may of 2020 and then they ran out of gas i think there's a lot of that going on i'd hold to, i don't want to oversimplify this but there really aren't a lot of other options for investors. to say we'll reverse this passive inflow of capital is the only condition in which you're going to see the entire market get toppled over to the extent that i don't think anybody's made that prognostication today, but i ultimately see a dynamic where it's all about the fed i know we've talked about the fed here but that's the only thing that's going to see this

market and again a major change in fed policy, that catches the market off guard that has this market do the pullback that some people are talking about i'm not trying to make light of a dangerous day but i think that's where we are. >> dan >> i think tim makes a good point. i think this conversation took somewhat of a bearish tone on a bad close and on september 20th on that monday, we weren't really afforded the ability to talk about a market that closed at a low over a period of time, because we have that reversal and i just wanted to say one thing. i'm relatively constructive on the notion that the economy will start to inflect a little bit, dealing with some of the deceleration that we've seen in q3 that was unexpected, but for me, what really comes down to a 10% pullback from the high in the s&p 500 on september 2nd from 45, 50, get you down to the 200-day moving average you take a lot of excess speculation and exuberance out of the market and then you get that opportunity to play for new highs and maybe get

all the way back to most of the strategists targets at the year end that are above 4,500 or something but we need a little bit of fear. guy used the term orderly. that's what we've had so far maybe we get a little bit of fear, down towards the 2 huchb-day moving average and bounce from there. that's the opportunity the market's going to present you on the long side. i don't think there's anything that says crash right here from the highs. >> we're just getting started mere on "fast money. coming up, sell-off and where traders are finding opportunity, they'll lay out their picks. shares of micron stock is down 4% in the afterhourseson ssi of trading. we'll have the rest when "fast money" returns [uplifting music playing]

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the day where everything goes right. or the one where nothing does. with comcast business you get the network that can deliver gig speeds to the most businesses and advanced cybersecurity to protect every device on it— all backed by a dedicated team, 24/7. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. welcome back to "fast money. we've gotten an earnings alert on micron shares under pressure after reporting results. josh litten has a breakdown of the quarter. >> micron headed into this was about 25% off its april high in the afterhours still lower here the print beats on the bottom and the cop. the q1 weaker than expected. matt bryson said it's well below where anyone has looking, saying the company guides

conservatively the street wanted to see flat to slightly up the seasonal trend instead guiding for revenues to come down fairly significantly on the call. the ceo saying the market outlook there are challenges in the near term, some pc customers can't meet demand because of supply chain shortages so they're making ajudgments in their purchases impacting micron this will be largely resolved, he says, in coming months. there are some constraints in the company's own supply chain as well he says, that's going to limit big shipments in the near term, the supply chain is running tight he says right now. he did try and set a confident note on the call saying calendar '21 is shaping up strongly melissa, back to you >>or, thanks, josh lipton on micron disruptions up and downstream impacting micron here, dan >> i think this is a bit of a preview of q3 earnings we talked about it last night from a lot of different sources of tech companies and my thought after that "options action" hit if you are going to play this for a bounce you better do it

with options and define your risk a little bit. as josh said, the quarter was fine it was that q1 that fiscal q guidance that guided revenues down 12% and earnings a little more low teens or something like that that's not great but the fact the stock is only down a few percent tells you maybe the street is not buying it, maybe they guided very conservatively, and therefore they'll beat that and given the valuation maybe it sets up good that's my take expect more of the commentary for forward guide ance as we get into earnings season >> what is your take on dan's take, guy, on the price section? >> spot on it's all about the guide because the quarter, look, still a dram company in terms of revenues and that number was fine and you look at their operating margins if they came in north of 37%, better than what the street was looking for, up from 21.5% same quarter last year. clearly they're doing something right, comes down to the guide the question you ask yourself,

is this sell-off from 96 back in april as josh mentioned down to 70 enough to compensate for this guide? you're going to find out tomorrow it will have a huge volume day my sense is you might have the capitulation they've been looking for. i didn't think you'd get this low but here we are. see what type of volume it trades tomorrow and how it closes today that will be the tell for the next couple weeks at least come up, back to today's big sell-off, stocks plunging into the red but the drop may be a chance to get in traders are ready with their sell-off shopping lists and a rare green spot in today's sea of red what worked today when "fast moy"etnsne rur son's energy star™ certified sensi™ smart thermostat uses geofencing to simplify how homeowners manage comfort and costs. emerson. consider it solved.

the nyse warby-parker shares starting at $40, starting trading tomorrow should be an interesting debut, dan. >> we were talking about some of the pockets say of speculation when the companies don't have large track records. is one of them and the direct listings, some traded worse out of the gate than the ones that go through regular way they don't have the same support from the underwriters so let's see how this thing trades. the valuation will be one of the issues here and some of the direct-to-consumer names that are early and kind of pre-profit and i know maybe they're, kind of have expected to have a small profit here, this is a tough road to hoe so i think it will be a really good sentiment indicator right now as the market's in the throes of the sell-off >> back to the sell-off, speaking of. stocks plunging on wall street today, all three major averages taking a nose dive traders say there could be opportunities in the pullback, time to break out our sell-off shopping list.

tim, where are you finding opportunity? >> i think you go to the beast of the semiconductor world we talked all show the different reasons including micron giving you insight in a slightly different part of that space, there's treacherous sledding away taiwan semi is a beast, $100 billion in revenue soon, growing roughly 20% and not a young company and got the growth rates in the sector that i think should be rewarding. the valuations not expensive, disruption in data center will be a much, much bigger player in smartphone chips, and i just think any pullback is to be bought they have boxed out and changed the way people like intel are assessing their business they are the folks to beat, any major pullback you need to own this >> karen, not only did you make a list, you actually bought off that list today so what did you buy? >> i did something a little bit unusual which was huntsman, and it's sort of an event risk as opposed to a market risk, so they're a

very gdp correlated, they do all kinds of adhesives and coding and insulation and textiles and that stuff and the most important thing was starboard taking 8.4% position last night and it wasn't the most hostile 13d but i thought it was thinly veiled the entire board sup for election next spring and owning 8.4 is a big position. delaware corps so activist shareholder a nice target to look at so i think either they deliver and put up good earnings themselves or starboard gets more abresive and they talked about a business combination, overall sale of the company or changing divesting some divisions. it's unclear to me but the stock was only up a little bit, kind of got lost in the noise of the day so i thought this is an interesting risk/reward, buying

it a little bit higher than starboard's last purchases of yesterday i think they were still buying >> all right dan, how about you >> yeah, i'll be quick here. this is nike the whole panel you know, over the last couple weeks we've been talking about it, because of the guidance that they gave and the stocks decline, since then down about 17% from those recent highs, just above 174, and i'll just mention this. remember late june in their fiscal q4 result the stock gapped up 15% to an all-time high, runaway breakout i think it likely fills in a little more of that gap and at some point you want to buy a stock like this, because if you look quarter over quarter and the two sets of results they had, we can put our finger on what happened here and speculate they're likely to get back to some of the trends they reported in late june and the guidance they gave. to me, filling in the june gap, nike looks interesting to me >> guy, you've got one a name we don't often talk about >> we do from time to time, many

years ago on a "fast money" meeting i suggested we buy an rv, paint "fast money" on the side and go cross-country doing the show for a few months and after the laughter subsided i was kicked out of the room seems if you look at this quarter i was ahead of my time i'm going to read you a couple numbers because it's staggering. backlog, north american towable something you tow behind your f ychb f-150, up 236% north american wheel up 176% year over year and even in europe, staggering numbers, so this is a chief stock on many me troks people are coming to the realization this is a viable alternative, and i think the stock can trade back to that 146 level so we saw in the spring. >> i have a question alternative to what exactly? >> did you happen to see those housing prices today, mel? i mean i know everything is transitory in today's world and the fed's got it right and they're geniuses that happen to trade on the side but people are

thinking maybe this is the way to go and don't discount it. if you go to one of these -- the only thing they have in inventory are pictures of these things >> okay. coming up, a biotech beatdown. the ibv falling hard in today's pullback, how are traders are navigating but first a green light, the one auto stock wel t llffgher in the se-o 'lgeyou the name stay with us "fast money" is back right after this strengthening 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. (vo) is three hundred and ninety-one thousand four hundred for a prospectus containing this information. and thirty-four square feet... enough space for your ambition? loopnet. the most popular place to find a space.

welcome back cnbc's delivering alpha kicks off tomorrow, a can't miss event, virtual one following today's sell-off, not too late to sign up register at deliveringalpha.com. a bright spot in the sea of red, ford gaining more than a percent, it would invest more than $11 billion in ev production the stock is up more than 8% in the past four sessions tim, you've been a big believer in ford. >> yes, and i think the company has almost zero ev in the valuation. we know what tesla and even a couple other folks in the spac world have been able to do with ev as it relates to also even

investment, in plants and battery technology so look, i think investors rightly have focused on with ford is profitability and a car company that needs to work through some legacy issues but they are, they have and they have the most popular arguably most profitable vehicle in the world in the f-150. what is the multiple get a little bit of a hybrid ev multiple in here and ford and gm are really cheap stocks up 15% after a tough time, we priced in a lot of supply disruption on the chip side >> gm was a relatively outperformer what multiple should gm? >> higher than here. i'm not sure how much but the chasm is just enormous even if were to get, i don't know, low double digits let's say, which wouldn't be crazy, it's significantly up from here. coming up, the biotech breakdown, the ivb etf not

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welcome back to "fast money. the biotech etf losing more than 3% today, down 5% in the past week tim, you actually flagged this move >> well, if you think about the components of this etf that explains part of it. moderna moving from 460 to 380 most of the names below have been relatively stable during a time when markets are questioning valuations possibly balance sheets and a case with growth or not most of the names below the surface in the ivb are very interesting and defensive plays here if anything you keep an eye and make sure you know what you own in the etfs. the weightings changed dramatically over the last year. >> guy >> i think the biogen move is staggering i thought it would trade down to 325 after the great news many

months ago but never think we'd get this low 285. biogen is worth a look for a trade. i'm with tim and what he said, individual names, biogen sticks out to me. >> we awesome big options activity in the space. mike khouw has this one. >> taking a look at arkg, the genomic revolution etf, less well-known but definitely active today, traded six times its average daily put volume in puts, outnumbered calls by 2.5:1. the most active the weekly 76 strike puts. we saw about 5,700 trading for about $1.78 largely the result of a big roll we saw, somebody who had previously made a bearish bet in the 79 strike rolled down to the 76s and pressed their bearish bet and bet the weakness we saw today

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elon musk making headlines at the code conference julia boorstin has the latest. he's talking about crypto, huh, julia? >> reporter: yes, melissa. that's right gary againsgentzler was talkingt regulating crypto. musk said he thinks nothing should be done he talked about how he's familiar with money systems, obviously came from paypal, he thinks this is an area better unregulated. on china not concerned about u.s./china relations he thinks the way chinese government treats entrepreneurs will get better in time. it's damaged by having in-person meetings during the pandemic and talking about space travel, he's

glad bezos and richard branson are investing in space travel but makes it clear orbital space travel is much more complex and expensive but saying he himself doesn't need to go to space. this is more about him creating an interplanetary species. >> thank you, julia boorstin, from the code conference dan, leave it to elon musk to talk to these species, interg intergalactic. >> if you expect to be excitable he's pretty chill. he has one of the things the guy probably wears at home around his neck he said this to kara swisher who asked the question about china, his first response and i think he was trying to be snarky was, where is jack ma i think is really interesting because he went into this other bit. interesting question from a ceo of a company that is one of the largest in the world >> up next, torr'smoow setup and we have your final trades.

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edward jones welcome back to "fast. let's get sut. for tomorrow's big trading

session following today's drop what is the first thing you're watching ahead of that open? guy? >> dan mentioned that wearing something around the neck. people are wondering what that is, it's a name tag so i remember who i am at that age. that typically happens number two i'll be ruchiwatchine russell. the iwm will tell you the rates if the economy is getting better, supportive of economically sensitive names or price thing which is detrimental. for me amongst many things it would be the iwm >> tim >> clearly the dollar is something that i think could be taken the next leg higher. a stock that we haven't mentioned, kind of a dan statement but amazon may be one of the most important stocks or important charts to look at right now, if you think about it's about to break the 200, stock has done nothing, it's 8% of the nasdaq and emblematic of a lot of the things that could be under pressure here i'm watching amazon. >> dan, since he said it was a

dan statement i'll let you go next >> i love it any dan statement is a good statement to me. guy, it was a handkerchief ascot, you probably do wear those. i'm watching rates here. usually going to sell off like, this we might see yields going lower, fight to quality for bonds but we've seen them go up for the things we talked about the best thing for equities would be rates stabilizing a little bit >> karen, how about you? >> i actually think that the reaction to the micron news is kind of interesting because we've seen a bunch of companies now that talk about supply chain problems and that hurt their quarter. this quarter is okay but the future quarter looks murky because of that. i actually think if that trades okay, you could see a turnaround in the smh which would be important. >> and karen, by the way, you're also looking, you would look for the opportunity to add to facebook, right? >> yes, i would. >> we shall see.

going to be a big day. time for the final trade let's go around the horn tim? >> it's home depot in terms of all the trends around housing, but where you want to invest in housing and the story here is a great one, had a pullback, not a ton but you need to watch home tee depot? >> karen >> if you don't want to take market risk or interest rate risk, avenge rate would be huntsman i like the activist element, the way it sets up is interesting. >> dan nathan? >> when i see an earnings perred like we're going into that that's going to be critical on so many levels here, when you have a company like nike, we talked about it a little bit before, kind of already sounding the alarm a little bit, the worse it gets overdone is the more opportunity that i see coming out of that period so nike to me filling in that gap makes sense. >> guy >> it must be come as your favorite empty seat day at shea, because my god, a lot of empty

seats out there. i'm just saying. i don't know, i thought meaningful september baseball. newmont mining bounced today newmont mining looks interesting for you met fans out there that still want to talk to me >> thanks for watching ♪ 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 not lose you a lot of money and put it in context. so we're going to try to teach and educate and make it clear what you can