cloth that it acquired laydo at the end of last year maybe diversification that the clog would be there. you love it. this is a great way as a cheap valuation. >> all right eugene profit. thank you for the weekend. thank you very much for the two-minute drill that does it for "fast money". plem lisa lee begins right now. >> live overlooking nasdaq site, i'm melissa lee. ahead on "fast," extreme makeover builders, home builders edition, this has been hammered down more than 25% the cart master says now might be the time to build a foundation plus the friday edition of america's favorite game, trade it or fade it. so is now the time to bail on names or jump back in?

later, elon musk may be shaking up another sector of the economy. is mining his next target? and which companies could pen from his attention we start off and wrap up a volatile week. the nasdaq has the nearest lows of the day, it is down nearly 4% since monday the s&p and thetow in the red for the week this as treasury rates continue to climb ten-year yields topping the 2% yield since march 201930-year mortgage rates about 5%. take a look at the leaders this week most of the gains coming from defensive sectors. healthcare, staples, utilities as you get ready to kick off earnings season, are these the names you stock exchange with? guy, what do you say >> absolutely, mel healthcare has been, look at some of these names, eli lilly within a whisper of an all-time high bristol my, .i.ay meyers breaki.

you stick with the medical device and those things and energy as well i know we had the sell-off of the top of the economy energy is getting its giddy up as well, healthcare energy, stick with it. >> you have to go what is safe in this marketplace. as i said, my premise is we don't know what the fed is truly going to do. so they have been extremely transparent. now people, including myself are saying, they can't do what they say they've going to do. so they have become the most transparent they have ever been, yet, they are opaque to me no other thing will happen with the balance sheet runoff is it a cut, 25, 50? 75 basis points? no one knows to buy the's point, you got to go with safety, with healthcare. adv, karen's place, it's up 30%

year-to-date now. >> jeff, every time you come to the show, you bring a great chart. you got another one, this is leak the table we'll let that go. what is it >> listen, i'm simple-minded, i let pictures and cartoons make it easy. it speaks to the point we talk about. if you look at the complexion of this rally right now, it doesn't necessarily scream risk-on so let's go through the numbers really quickly have you 50% of consumer discretionary, 40% of financials, 40% industrials trading through those february lows then on the flipside, the defensive side of the cone, you have zero percent of utilities, 8% of reits trading through the lows the market is very split the message is very clear so i would stick with those defensive areas of the market with the addition that i would be adding the quality growth stocks on this next led down i do think we will experience another leg down

we know there is no way to tie the bottom you are talking between now and the end of the year, they will have a nice rally. >> another bank of america note from the strategist there, michael hartnet. what caught my eye was the following lean is inflation shop is worsen, rate shock is beginning and recession shock is coming could we be a little too pessimistic? could this notion of a recession coming become so consensus that it doesn't happen or we price all this in early? >> it's got the zifr i shivers certainly, i don't think you can say you see some disparity between economic recession and price activity in the financial markets. so clearly, there will be some lag effect there i like the plays the other guys have laid out. i love how jeff mills threw in something there that allows to you add more beta to the portfolio or some outside performance. i think here in this mark, given

the inflationary environment, given what we are seeing from energy at the energy overlaid with that stapled and that health care kind of core portfolio or core holding right now gives you a little of that upside and headline risk and momentum so yeah. i'm in agreement for more juice in the portfolio. >> the only problem with the contrarian view. i'm usually in that camp >> do you think it's contrarian to say a recession is come something. >> no, is it coming? we are leaned up with yes, there will be a recession rates are going to quid pro. the fact of the matter is, the fed needs to create a recession or to check some kind of demand issue to actually deflate the inflationary environment we're in if they don't do that, they're not doing what they are setting up to do. >> that gets to an opinion

piece, the side effect of efforts to slow down the economy should be a decline in the stockmarket. some pay pos it, though, jeff mills, a lot of the stockmarket have, in fact, been corrected all right. therefore, the work of the fed has actually been done when it comes to the side effect of bringing stocks down you take a look at semi conductors, they're down 20% home builders 20%. the list goes on and on here in terms of the sub-sectors of the market >> yeah. there is no question that you've seen some damage that you could buy into but i think even buying into that damage, you are probably going to have to be patient here i have this like news article title in my head, moving averages, where oversold bounces go to die. i feel like that's exactly what we're seeing right here. there are strong areas of the market. >> a little too negative for you, steve >> look at all the quote strong areas of the market and the

charts are all the same. you mentioned semis, triple new jersey, amazon, transports back to that 200-day move, argue and failing. the weak areas of the market are facebook, net flex banks, nike, disney, all back to the 50 day, now rolling over again. so that's just what makes me nervous about the market's ability to make new highs here i don't think we necessarily need to drop a cliff 30% i think it's difficult to make new highs in a short period of time. >> the steepening in the yield curve is concerning. this is the most steepening we seen, recessions are always pre creed after a steepening of the yield curve. i know, because i'm inside your head sometimes, today is one of those times that you are looking at that today. >> i don't know how you got there. i have the door locked i was worried that you'd give it a shot you are right, i was watching it i watched in amazement for the last literally year how broken

the bond market is you are right to point that out. we went from obviously inverted yield curve in the two 10s now it's steepening. i will say rates are going up for the wrong reasons. rates are not going up because we have robust growth. they're going up because inflation is out of control. i think we're saying the fed will do what they need to do to tamp it down they're going to be ancillary effects on the back of it. they will not be good to the stockmarket in my opinion. >> moineantime, that drive in yields, take a look at lennar, dr horton. the sector may be due for a secretary look let's dive in with carter worth, worth charting what are you looking at? >> you bet, sometimes you can try something for trade. it doesn't have to be a value calm it can be ska long-term calm that was point of the client

notes yesterday evening that home builders seem a bit extreme here playing for a perspective bouvenls let's look at a couple charts this is the actual anne anne 500 home builders subindustry as constructed by stated in force what we know is and you see the annexation, this huge new high, of course this 34% sell-off, which leaves us where? right back at the prior peak when home builders peaked in '05. the irony, the interest rates were 5 and a quarter in '05. right now their 27 the other is they were double essentially what they were in '05 and what they are now. so fundamentals are they cheaper then than now? i would think so are rates more favorable we would think so. either way, you can trade on the long sights. look at the next chart it's the same thing. it's the subindustry growth over the past ten years, 12 years

since the '09 low with the 100-day average. we are basically as far below trend as we were on the covid low. so again another way to depict sort of the oversold condition and then, the here and now chart, this is the home builders just over the past one year and finally look at this chart the next one, one way to draw the line it's a well-defined channel. you can see it there those are parallel lines we've come down to the penny, the lower band i think here you can play for a bounce then finally, the vehicle, the table here this is the way to do it you could use the spider the xhp. the purest is the ishares. itb. it's down 12 of the past 14 weeks. again, 30% sell-off at this point and you are capturing a lot of themes, it's not just

chi c chipotle. >> when he says parallel, you listen carter worth of worth charting jeff mills, one home builder in particular catches your eye, i believe, at the trade? >> yeah, it's a name i've mentioned before i like it because the way it's situated in the market my guess is if you look at an home builder, it would look the same dr horton is 20% below the 200 day moving average probably prime for a pop it's only been 20% below that 200 day once in 2011 with understand in 2020. so in 2011, over the next six months it went up 38%, outpaced the s&p 500 by tr23%. you seen sa similar outperforms in 2020, it's trading four times

forward. valuation not a timing tool, but there is definitely room of this stock for an oversold bounce. >> when i look at home builders, i don't go back to the great recession. i go back to pre-pandemic. so in my idea of where the home builders should be is they should be below pre-pandemic rates are, everything that carter said. rates are moving higher than they were then we're going into a recessionary environment. so i think while carter says they're good for a trade, maybe. but i agree with jeff on dr horton as the only one that i would be investing in. they are spec builders it means they have supply. so everything that's hitting the market right now is they have no workers, they can't find supply issues they have issues with lumber and everything else. this builder actually has a supply of homes already on the market because they're spec builders. >> all right coming up, a harsh week for cars, chips and casinos.

is it too late to go out or is this an opportunity to dig in deeper. tesla, looking to break into another industry elon musk dropping on twitter hours ago. we got all the details coming up on "fast money". on "fast money". >> visit indeed.com/hire and get started today.

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welcome back to fast money a couple stocks have a tough week ford, enindividualia tumbling at least 10%. it sounds like a question we can answer in america's favorite game trade it or fade it. that's right, trade it or fade it so let's kick things off with ford guy, you know the rules, i believe. trade it or fade it? >> i do know the rules i will say that guys and gals on ec jumped a little bit there with the sound effects but that's okay. it's a friday, i get it. trade it, mel, i'll tell you why. because that marks 2020 low for give or take recent high we made north of 26. the 50% retracement is $15 that's where we are. valuations at seven times next year's numbers they report in a couple weeks. you get long into earnings

>> what do you say >> you got me on the other side of the godfather it looks like he will meet me after the show and make me an offer i have to refuse i'm sorry, guy, i have to fade this one this is not where i want to be in the conup series complex. are you talking of a move in durable goods to services. doesn't really check out there you are talking inflation pressure, supply constraints, all those all don't bode well for a truck company that really makes a lot of their money in that truck margin, where crude prices are higher. for all those reasons, i got a fade there will be better days ahead. >> let's move on, nvidia steve, trade it or fade it >> i will fade this one. i believe the semi conductor is a boom/bust. we're in the boom area for it now. if you look at the stock, it recently bounced off the october 2021 support level then failed. it's down 21% year-to-date for me, i think the companies are going to overorder, semi

conductors now we're going to get into that bust period. even though i love the stock, it's the, you know, it's the internet of everything in nvidia, unfortunately, i am going to be a fade. >> and the meta verse, where you can apparently build your own burrito. jeff mills, where do you stand on nvidia? >> so mel, i am not going to say that i prefer amd because of valuation. that would be a stock would you rather i would never do that especially on a friday. but relative to enindividualia i will trade this one. i think it falls under the quality defence team that i have been talking about we all know it's a great company. steve pointed that out the stock is not cheap, but it's no longer ridiculous i just think investors are going to pay up for 30% eps growth 30-plus percent mar jens as the overall markets earnings picture starts to slow down. obviously, long term is hard to

bet against. so trade this one. >> i think that's worse. you acknowledge the law exists and openly defy it >> he has the headlines in his head so we're not dealing with a seen person tonight >> perhaps not we will move on, though, do pen gaming, which jeff will fade or trade, what do you say >> so this is stock i have been in and out of. i am out of it right now so i don't have any skin in the game i do think you can trade it here it's strong for euphoria to now in my estimation utter disdain i think the truth is somewhere in the middle. you have a stock down 70%. i think there is room above it from these levels. if you look at the chart, i am seeing some posupport around the pre levels the stock price here is under stilling, a single brick and mortar business and clearly an opportunity in online gaming so trade it, put it in your drawer

look at it in three years. >> guy, what do you say? >> fade it i'm fading penn gaming, penn and teller william penn the only penn i am trading is penn reels for you fisher people out there. stock has been grim death. go-year low. wait for a day, it's coming, where it trade 40 million shares and then you trade it. it ain't happened yet, sister. >> i thought you were going to say the only pen are you not trading is bic >> ahh. >> now for a bonus name, kroger, soaring this week. again it speaks to the kind of market we are in currently do you trade it or fade it >> i'm fading this one there is really not many up to dislike about the company, itself i mean, relatively low pe. defensive name consumer staples if you look at the recent price action it's made a parabolic move higher so i'll wait for a better entry

point. i am fading it. >> steve grosso. >> i hate to go against the godson i am a trader of croaker prices go up fast, they come down slower. they have been able to pass on price increases. i believe this is one of the few stocks in the marketplace that has momentum as you started this segment out. so this one i think we're okay to be a trader. >> coming up on "options action", a safety pla i that may be getting long, but first, elon musk creates a new piece of buzz we'll tell you what it is. we are live from the nasdaq market site from time's square "fast money" is back in two. the world needs you back. i'm retired greg, you know this. people are taking financial advice from memes. [baby spits out milk] i'll get my onesies®. ♪ “baby one more time” by britney spears ♪ e*trade now from morgan stanley.

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welcome back to "fast money" elon musk looking to dip his hoes in another business, suggesting tesla could take lithium mining into its own hands, citing the slow case of mining take a look at lithium americas. getting the tweet, the day down more than 7% it's been a tough week for lithium americas by the way. jeff mills, it seems crazy at first. he is solidifying all his supplies i mean, if you are going to make chips and program cars, why not have the raw materials in lithium? >> yeah. i would never you know bet against elon musk's ability to do something like this i guess the question is, can they do it better? i think the answer is probably but i don't understand this enough it seems to me a lot of slowness associated with actually mining this stuff is government approvals and regulation it's not about technology and building a better mouse trap so that's what tesla, obviously,

would have an advantage in soive just don't know. in terms of a stock like lithium america, we talked about tell earlier in the week. i said you have to be careful, the stock can drop 25% in the bling of an eye, due to headlines. maybe that's where it is now it feels like there is room because of the demand. it feels like you can sell to other people other than tesla. there are a lot of people trying to grow really rapidly right now. >> it's not like elon musk was oh, i think i will tweet about lithium. he has been thinking of this quite some time. battery day 2020, they filed a patent, tesla did. for a kind of process to extract lithium from clay minerals in a more cost effective way, guys. so this is something that's been on his mind for quite some time. >> and i think it was this whole thing has been akccelerated by what he saw, that moving nickel. that 30% deviation move, nickel

is important as well so it makes a lot of sense anybody can do it, it's him. i think jeff is right to point out lec. the stock traded up to 40-ish. pulled back. if he gets a 20 handle again, you buy it this name, the people will be talking about this for a long time lec, without question. >> it is time now for the final trade on a friday. let's go around the horn guy, what do you say >> tenet healthcare, the yankees won in extras, back to you >> we mentioned the defensive stock at the beginning of the show, healthcare was what came to mind. i will reiterate that at the end of the show. >> jeff mills. >> you are talking defense, inflation, gold obviously falls into that bucket new mining is making its first new high in 35 years talk about a breakout, i think it goes higher. >> steve grasso.

>> you heard kroger earlier on in the show. so that will be my final trade i think you are okay to stay in that one maybe not for just a trade i think you have a lot of longevity in that one as well. >> that's all for us on "fast money" do not go anywhere "options action" is up next. (vo) verizon is going ultra! with 5g ultra wideband in many more cities, you get up to 10x the speed at no extra cost. plus six premium entertainment subscriptions, included! like disney+, music, gaming, and more! (mom) delightful. (vo) saving you over $350 dollars a year. and for a limited time get a 5g phone on us! no trade-in required. (mom) amazing. (vo) this is the offer you just can't miss! verizon is going ultra, so you can get more.

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it is friday it's time for market action. here's what's coming up. >> when the pendulum swings too far, carter worth explains why the safety of utilities may be getting stretched. in case you haven't heard yet on cnbc. >> the stem cell research starts next week with the numbers. >> but tony zane thinks there is really only one to speak up about. finally, a special edition of look back, with professor khouw. how you manage som