tightening. it is probably not. >> you still need it to be something really significant to go back. >> it feels that way. things have turned pretty quick this year. within a month time, the whole story can go upside down. >> thank you. appreciate it. good to see you here. that does it for us. fast money begins right now. >> right now on fast, charting the markets from our top technician who says follow the rates. the s&p will keep moving lower. the trades and the opportunities, straight ahead. plus, china troubles. new data showing the confidence in doing business in beijing is at an all-time low. we will go inside that up report and see what insight that has for our economy. later, a nuclear move in uranium and energy trade that kept writing higher. i am courtney reagan this

evening. this is fast money lived from the nasdaq market in times square. on the desk, we have dan nathan, guy, and tim sue moore. we will start with a market rebound, the s&p trying and failing to bounce back after losses. briefly positive before closing out in the red again. the dow and nasdaq listing a second day of losses, the dow falling below its 50 day average for the first time in over a month. the nasdaq more than 25% below its record high. meanwhile, the dollar was back in raleigh, touching its highest level in over 20 years earlier in the day. we also have these on the rise with the 10 year highest in two months. as we head into the final training days of the month, what are these moves telling you, dan? >> i think we can continue to take profits and stocks that you gained nicely off of the lows here. the nasdaq was up more than

that in the last two days. cheryl powell told us there would be pain associated with their battle with inflation. that was not the reason why the market rallied over the course of the summer. think about what has happened here. i think a lot of people can get their arms around the fact that maybe we have reached peak levels in some of these inflationary readings, what happens to the economy? what happens to corporate profits? it probably weighs on the stock get and retest those lows back in june. in my opinion, we saw this in the s&p 500 and the nasdaq. we have been talking about this really weird economic environment we have been in. we had some readings about the recession but people explain them away. then they say, the economic data as it relates to employment is not suggesting that. when you think about corporate profits, companies have been able to pass through some of the adverse effects of inflation to consumers but right now we are seeing saving rates really starting to get hit. we are seeing the fed going into other days of typing as it

relates to qt, so the cost of money has gotten more expensive. i think we are going to see companies not able to pass it through. they are going to see their margins getting pressured. that s going to weigh on equity evaluations. >> what you make of today's move to attempt to rally and then lose steam at the end? continuing what we ended up seeing at the end of the day on friday. >> i think it is better than the worst case scenario, which would have been opening on the lows and in establishing new lows. there was still demand in the market as we came and bounced from the recession lows, but you would have liked to see what i believe steve mentioned on friday. opening establishing lows and then establishing to write off of those lows. i think the points that dan mentioned are going to play through. we .2 earnings and then we say, for the most part, we have grown at eight to 9% and beat

expectations. earnings haven't cratered but it is going to take time for this quantitative tightening to play through. it is going to take a bit more time for this narrative to play through and for us to see how the consumer is going to be affected. in terms of retesting the lows, it is very much in the cards. we saw multiples expand them about 15 1/2 to about 19 and now we are trading back towards 18. i think they average around 15 or 16 so that does say that there is some room to the downsides we had. >> guy, what you make about comments today from neil carr? he said, i was happy to see how powell's speech was received. i assume he was happy with the selloff on friday? potentially we will continue to hear from him today. >> proper decorum prohibits me from saying what i really think about those comments. i am sure the viewing and listening audience knows, given my track record with the federal reserve. on our call, i will echo that because i thought the same thing. this is probably one of the

dumbest people for the longest ride of time where the federal reserve was i want to use the word mocking people. they said this was anything but transitory. here we are, like everybody else. i think he finally seems to have figure out that it is better late than never. 20 years ago, the next best day is today. with that said, the market text the next blow and what i find almost amusing is that the don't fight the fed mantra is involved when the fed is acquitting. nobody seems to waiver or blin , yet somehow don't fight the fed in this environment, everybody seems to want to question. quite frankly, i think it is simple on both ends of the spectrum. >> tim, go ahead and jump in there. i you in early. >> so we have been critical of the 180 degrees on fed sentiment within the fed. what is interesting is that as

much as what are fed said is also what other banks around the world said. they were in jackson hole as well. universities around the world, and specially in places where i think their economies have left to do. for the global economy, we have that map. we have also seen this early discussion on the show talked about where s&p earnings are , all the way through second quarter earnings. and the worst thing about second quarter earnings is that they are very good. if you are a market participant, back to what i said, in terms of fighting the fed. i look at the position in the markets. to me right now, that is the part that is a bit of a silver lining to a horrible sentiments, positioning which is both short and almost record levels. across the different parts of the treasure curve, which indicates over blocked conditions and where people continued to believe that you have this recessionary backdrop. on the short end and opening

around the two year note, you are also seeing people positioning for higher rates. in the professional community, we refer to them as as actually not fighting the fed. we warn people, we quote these inflows in the retail committee all the way through really the second quarter that had not shown any signs of abating. that is the part of the market i am most concerned about. the silver lining is that i think there is a lot of hawkishness priced into rates. it has barely moved since jackson hole and even before jackson hole and positioning in terms of cash and overall hedge funds. people think that the market could go lower. >> dan, what do you think about the importance of the dollar hitting 20 year lows again? that has some implications. >> that goes into -- we had a conversation about margins. it is not just the fact that costs are higher because of inflation. you also have multinationals with a dollar, like you said, at 20 or higher, like the euro, in particular. just think about that.

just think about the pressures of corporate margins and it goes back to what our company is able to pass through. we are getting a lot of people buying into that transitory narrative, and they thought the fed might be done by now. if you are thinking about this, we saw this in the earnings and q3 guidance. there is not a whole heck of a lot of visibility and we also saw companies that have guided down have been guided down again. for weeks or a month or so later, i think we are going to see a bunch of that in september. you started off the conversation how in the last few days of this month could end. probably not particularly well. september won't be great either because i think we will have major earnings disappointments and i think the other thing is that we are going to start to get economic data that shows unemployment starting to tick up and then once you get concerned about this consumer, that is probably when confidence loses it a little bit.

that is when stocks go back. >> it does look like we are starting to see cracks there. back to a point that tim started to bring up at the beginning of the show with the move-in rates. the 10 year here sitting above 3.1 right now, and then one of our guests thinking they are only going to go lower from here on the s&p 500. how closely should be watching the 10 year? >> it is not just the 10 year. we have to look at the two year, the 10 year, and then the two and 10 year inversion. those are the three points with the triangle offense right there. that is what you have got to be paying attention to. i think that is half the story and i also think real rates is the other half of the story. with inflation still in mid eights, if we are truly going to get to a neutral terminal rate, there might be a lot more moves ahead. i think friday kind of brought that whole possibility full- circle with the rhetoric that was used by chairperson powell. so i think, again, the twos and

tens in the penalty and then where we are from a great point of view, i think that is really where the focal points are going to be. >> dan was bringing up the idea of the jobless rate or where we are with unemployment. obviously, we are in this strange period of time with high inflation but still relatively strong employment. we started to hear companies talking about layoffs, being more cautious with their plan, but when we are looking at the economic data, the job market still looks fairly strong. where should we be looking to see those initial cracks? maybe before it is very widely known that, yes, this policy is finally taking a bite out of employment. >> i think that is right. i think you look for a couple of things. we are seeing on the margins in terms of credit card debt, north of $1 trillion. that is problematic. i think the next leg of that,

in my opinion, is by definition unemployment rate will start to tick higher, which i think the federal reserve probably wants, quite frankly. i don't think they would outwardly say that. they need a number of different things to happen to slow things down, but i think that the point about real rates actually being negative is spot on. again, people will say, wait a second. inflation is going to come down as they raise rates. that will take care of itself. there is truth to that. the problem is, real rates in this country have been negative for some time and it takes a long time and a lot of pain using neil cash carries phrase to get there and we are in the midst of it now. >> i think to your point, they don't want to admit that they have to see this in the job market. it may be a necessary means to an end read we are going to move on here. our next test says that there could be risk. let's go off the charts with chris. what levels are you watching? what are the charts telling you

right now? >> i think we have got to put the last several days into some context here. we had this rally over the last couple of months. remember, the entire move took place below a downward slope. i thought it was interesting on friday because for the first time in a couple of months, you had all the major embassies go on and make new one month lows. when you make a new one month low underneath the 200 day, it is a pretty good message to step aside. it is often assigned that the down trend is there. so we have the triple cues over the last couple of days. the number of individual stocks making these lows has started to re-expand here, as well. on friday, about 31% today. about 50% of the s&p with one month lows. you have names in trends making new lows. it is historically single, but let's take a step back and

preserve ourselves and take some capital. i think what is driving this is the move of rates. the last several months our call has been that the bond rates would remain stickier than the consensus believes. we have seen this with this back above 310, but really i think two years is the big story. a new cycle high. you have european yields as well, but what is really curious about this move, despite the yields up, we have seen nothing from banks. banks remain weak. utilities have continued to observe themselves as leadership. i see banks. i see utilities strong. i see rates at new highs. if you think about this in terms of leadership, our other big view here has been sell stuff like technology, sell stuff like discretionary in favor of energy. so the last two slides here look at tech relative to

energy. i think this is one of the most important pairs in the market. this couldn't even get back above the 200 day. and then lastly, discretionary energy. this is the whole secular leadership right now. i prefer the energy names over consumer. i think this has failed. i think rates are up in s&p here. >> chris, it is tim. >> hey, tim. >> i prefer this as well. my question, back to some of the leadership that have been defining the bull market for five years. the underperformance of semiconductors, i talked about semi's all the time to the s&p . i look at that downtrend, back from december of 2021 to the s&p. it looked like we were raking above that downtrend, but it doesn't look like we ever did. can you comment on that? that is a relationship that really has defined much of the market of the last 10 years. >> a great point. we are all over that. we talked about it every day. the two leadership relationships that have really

defined the decade or sent it over s&p and discretionary over s&p, i think both are done. chart by chart among these. nvidia, amd week. we have seen lake on breakdown. so i think you are spot on. this change away from semis is not necessarily a change but a secular one. i think semis are done and are so good for a decade. don't expect it. >> thank you very much, chris verrone of strategas. guy, i am going to turn to you because we already had a say in this piece when talking about the two-year, tenure, relationship between the two. chris brought up interesting charts there. what do you make of them? >> he brings up the semis, and he said this for a while. that is the new oil. i think in august particularly, i will say this about yields quickly. we are in an environment now, in my opinion, that if yields go higher, it is probably not

good. they are not going higher because the economy is getting better. if yields go lower it is probably not good because it is a form of lower quality. i will tell you, if you are looking for a trade, that tlt traded down to 108-ish back in october of 2000, van can tell you what happened back then. we made that low again. a bottom of trade again and maybe you will see that start to fall into the form of sponsor. >> dan, it is interesting. chris brought up financials and not having done much there. i am looking over one month, about 9/10 of a percent smack in the middle. >> they are not great. mike was just on the aot with scott before talking about how we will capitalize these banks and how different they are then the last recession that we had prior to the pandemic. they don't act well. keep an eye on j.p. morgan. 110 is that line in the sand and i think that would be a good indicator about how bad

the consumer is going to get. we have been talking about the performance of goldman and morgan sachs, morgan stanley, over the last couple of months or so and some of those invested once, not the money setters, have activated. what guy just outlined about yields is that that 10 year, if it were to come in, it really speaks to the lack of growth. that really does speak to the fact that you have a two year yield at 3.4 or something like that and it speaks to an inflationary environment, going back to the whole theme about this, is that that should weigh on equity valuations. >> it makes sense. it did on friday and into today as well. coming up, in need of a miracle. the big recession warning from top economist, stephen roach. where he says the economy is heading next. next, natural born leader on a tear the last two months. up nearly 45%. get the commodity of climate. next when fast money returns.

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the best-performing sector in the s&p, five of the top six performers coming from the oil patch. natural gas continuing to rocket higher. the commodity is up more than 70% this quarter. where do we go from here? what names stand to benefit? tim, this is incredible when you look at the energy trade compared to almost everything else on the board. >> well, chris talked about leadership in the energy sector and i think we have it again. the ability to hold the $90 level in rent or wti, you have seen the reassertion of the thesis that, to me, is difficult to challenge. you can challenge demand but you can't challenge supply. when it comes to not gas, which you are seeing, is that the nat gas is a solution for europe that will continue to drive , i think, smart investment coming out of the u.s. they are going to have $200 billion in free

cash flow in 2022. it is incredible to think of the transformation of the balance sheet. talking about energy as a proper investment as opposed to a trade to be caught in the middle of a global geopolitical event or supply disruption, i think you have to think about these companies differently. if you look at the xl f, similar to the xle, the breakout seems to be more or less holding out 200 days. i think that has been very constructive. you are not buying energy on a dip. xle has been outperformed almost 30%. the dynamics on the macro, we heard more today. disruption. the fact that iran is enriching uranium. whether that is happening or not, seeing uranium flow anytime soon, i don't think so. seeing the supply disruption and some of the issues and then meeting on september 5th. i think, guy has alluded to this, too. i think that these trips we spent to the middle east to see if we can buddy up, i think opec is going to do what is best for opec. that may be higher prices.

>> i think opec does always do what is best for opec. wti is sitting below at 97. what we are talking about here is leading the way higher. guy, you were nodding a lot. i don't know where you want to take off there. i will kick it off with natural gas. what is the plate to make when you have seen such a big run? can it continue to go? do you play the commodity or something on the equity side? >> i mean, the equities are tough. i am not advocating this, but just for context, we have a name like delorean which got obliterated with at gas, who did not do all that much. you try to connect the dots here and i still think you can say with the energy names, names like we talked about over and over again. psx. apa. those service names to rally nearly 30% to tim's point, still further the room to the upside. i think for emphasis, a lot of things lined up for oil to go low. the spr release, which we can

debate whether it was politically expedient or did something. it doesn't matter. what is really important here is that a lot of people sell crude oil, in my opinion, inking that the slowdown would affect demand. i totally understand that. the problem is, it hasn't yet. demand is still probably pre-19 level. demand is there and there is no supply in this very limited supply. so it could be going higher and i think you want to stay in these energy levels. >> do you believe in this fundamental argument and if supply and demand are out of whack, then prices have to go higher? >> certainly. supply and demand will be your drivers. i think it is bigger than that. previously, we talked about the shift away from technology. we said, listen. the big five have what others don't, and that is a cask fortress balance. the perceived margin of safety. now it is free cash flow and the inflation hazard so we have

the uncertainty around all of these things. i want something that is going to be turned and we invest in a way that i believe will be accretive. i want companies that are generating significant amounts of free cash flow. you are seeing the antithesis of that in the large growth at any price type of names. you see those getting punished as you see names with excellent free cash flow flow get higher. and then it seems to be murky, so i want something that will give me the benefit of free cash flow and return cash for me and the offsetting of inflationary pressures if they continue to persist in the upside. aside from the supply and demand story, which i do think wins for these names, i think they also offer those other three aspects that give investors a bit of calm and solace in an environment where there is so much uncertainty. >> strong financials, not too much to ask for when there are things to invest in. bonawyn, thank you. there is more fast to come. here is what is coming up next.

aborting a recession will take a miracle. from a top economist. is the worst yet to come? the details next. plus, time for some protection place. professor coe is laying out the market utility with options. that action ahead. you are watching "fast money" , live from the nasdaq market site in mesqtis uare. we are back right after this.

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outlook. that compares to 9% last year. the prognosis at home may not be much better. our next guest warns that the u.s. needs a miracle to avoid a recession. economist stephen roach is the former chairman of norman stanley, asia. he is now a senior fellow and has a new book coming out in november, "accidental conflict: america, china, and the clash of false narratives." thank you for joining us. we didn't need to take the words out of your mouth about what you think. please share your theory. >> is a pretty simple theory, courtney, that is if you take fed chair jay powell at his word, and i now do, he wants to monitor policy to a restrictive stance. he is doing that from a point where the fed right now is wildly accommodating. the real federal funds rate is

the best way we can measure the stance of the federal reserve. that is the nominal funds rate year over year headline cpi inflation rate. it is still a negative 6.2%. at the end of this year, if inflation slows considerably further and the fed hikes rates by another 175 points, the real fund rate will still be negative by about 2%. all i am saying is that the real funds rate needs to go well above the neutral level, which over the past 60 years has been +1% in real terms. it has probably got to go to 2. so you have a funds rate from its low last march, up by 10

full percentage points. that is close to but not nearly as severe as what paul boeckler did in 1982. so i think we won't have a recession as bad as we had back then, but we will definitely have a recession as the lack impacts of this major monetary tightening start to kick in, and they haven't kicked in at all right now. >> what to think about what happens in the labor market? right now, it is really holding up fairly well in the face of everything else we are dealing with. what is your prognosis for that worsening? how bad will it get? when will it happen? is that what tips us into official recession? because that hasn't happened yet? >> well, it hasn't happened, courtney. that is precisely the point. the fact that it hasn't happened, and the fed has done

a significant amount of tightening. it just tells you how much work they have to do. jay powell used the word that unfortunately, this operation is going to involve some pain. his word, not mine. pain means rising on employment. so even though the unemployment rate has got to go probably above 5%, hopefully not a whole lot higher than that, but it could go to 6%. it could go back to what the type of pain that paul boeckler had imposed on the u.s. economy to ring out inflation. he had to take the unemployment rate above 10%. we are not going to get there. the only way we are not going to get there is if the fed, under jerome powell, sticks to its words, stays focused on discipline, and gets the real federal funds rate into the restrictive zone. in the restricted zone. it is a long way away from

where we are right now. >> mr. roach, for tens of millions of people leading up to this, they are living in the 1930s in terms of what they have been enduring. for a lot of people, we are already in a recession. this is not meant to be a wiseguy question, but what changes if, in fact, the definition of recession is, we check that box? what changes in the world? because companies should be doing things based on what they see regardless of whether the definition is reached. >> i don't know if anything changes the definition. we have already had two consecutive quarters of negative gdp growth. they are technical and revised away, but obviously, we are going to have to have a cumulative drop in the economy, somewhere of around

1.5 to 2%, the unappointed rate will have to go up by 1 to two percentage points at a minimum. that will be a garden-variety recession. no shift in the definition. you are right. a lot of people are still feeling considerable discomfort right now, but it is a big economy and there is always crosscurrents of suffering and prosperity in the broad fabric of an economy like the united states. >> to that point, stephen, ahead of the release of your book, our economy does not operate by itself. we are in a very nterconnected world. give us a theory of where you think things stand right now between the united states and china. business and political relationships therein. >> there terrible.

in the last five years, they have gone from a trade war to a tech working out a cold war. and the title of the book says it all. we are in an era of accidental conflict, a conflict that didn't have to happen if it weren't for false narratives. both nations embrace toward the other. when you are in this trajectory of escalating conflict, as we have been, it doesn't take much of a spark to turn it into something far more severe than most are willing to concede. i am very concerned about what is going on in taiwan right now. i think that has a strong potential to spark this accidental conflict hat i write about in this new book. >> we look forward to reading it. stephen roach, thank you for joining us this evening on "fast money". let's go around the horn for a moment if we can and trade out

some of these comments. bonawyn, what do you make about what mr. roach has to say? he has dire warnings and what could be to come. >> i think he speaks from an informed opinion. he has been around long enough to see several market boom bust cycles and what the applications are. i want to focus on the rates because we were moving with that and that we bounced to guy there. if what i understand him to be saying is true, we will need to tighten another 8% or so in order to get rates back to their restrictive 2% real rate. i have a hard time seeing that, but i think that all of us, as market participants, need to take that into consideration as a possibility and no longer aside as a zero probability of that happening. even if you cut that number in the middle and then stay elevated, as they indicated they might, i can understand why he is calling for a recession and that the worst is

yet to come. the only thing still holding us and allowing them and emboldening the continued tightening is the labor market. the longer that stays strong, the more tightening there will be and the more pain that we will feel. >> dan? >> again, back to unemployment. he just said 5 or 6% unemployment. we are at 3.5%. it was a 40 year low before the pandemic. if we ee unemployment take up to 5%, what does that mean for the u.s. consumer? it is weakening at a time when we see these inventory issues that investors and retailers think will be moving out. that is only going to get worse. all the things we talked about, tim was talking about the secular shift toward semiconductors and we will have all these consumer products. that was the tailwind. you see that slow down. i guess the point is, it is not hard to see if the last piece of this puzzle is unemployment ticking up. to see the global economy really taking a pause, then

throw in all of china's stuff. tim said it last week. demobilization is dead. what does that mean for the economy? china has been a huge agent. growing gdp for 12+ years. to me, it is just not a great environment. i know this sounds dire. >> doesn't it? >> it is not a great environment. take every crisis in my career over the last 25 years and mash them together. that is what we have here, unfortunately. >> it is hard, sometimes, to look at history as a guide. of course, it is what we have. for more market insights and advice, don't miss cnbc's investor summit in prison. september 28th in new york, the final week for early bird pricing. had to delivering alpha.com or scan the qr code there on your screen. coming up, stocks unable to bounce back from last week. how can you navigate the volatility? we are laying it out, giving you detection and using options. details next. check out china pin 2020

surging. details on a big earnings report that had veors piling in. more on that when "fast money" returns.

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welcome back to "fast money". the s&p stage in an attempt to kick back the week. today's volatility sparking a handful of huge various bets on the market, which could be a sign of more ahead. mike joins us now to break down the action. we are a bunch of negative nelly's here. what do you have for us? >> you were just referencing that it traded in 1.3 times its daily average, which may not sound like a big increase, but that means there are more than 1 million extra contracts. over 13% of all the options treated today were put on the etf and the biggest trade we saw was a purchase of over 45,000 of the september 9th expiration, roughly 359 places or 10% on money. the $.34 for those. then obviously, some crash potential. that was a decline of over 10% in as many training days. an exceptionally rare event for

the s&p. that happens less than 1% of the time over the past 90 years or so. >> thank you, mike. for more options, be sure to tune into the full show. friday at 5:30 p.m. eastern time. i will be with you then, too. coming up, we will break down one trade that has gone nuclear over the last week. will this continue to be a glowing investment or is it just negative chemical reaction growing? those details ahead. first, pinduoduo popping. what the move says about the strength of china tech. "fast money" ahead. thinkorswim® by td ameritrade is more than a trading platform. it's an entire trading experience. with innovation that lets you customize interfaces, charts and orders to your style of trading. personalized education to expand your perspective. and a dedicated trade desk of expert-level support.

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welcome back to "fast money". chinese stock pinduoduo topping it today, almost 14% after posting other than expected earnings in the second quarter. the company attributes those results to a recovery in consumer sentiment. could these results be a sign

of more strength to come from china tech? tim, this one feels like, throw a dart. is it going to be strong? is it going to be not? it feels so volatile. is it time to dip in and believe in this? >> well, it is hard not to think that anything positive coming here, especially in the e-commerce front in china, is good news. these are great numbers. year over year, up 39%. some of the gmb for this period, over 107%. telling you where we are coming from. the exciting element here is the record gross margin, despite the fact that the companies said they are going to be investing in certain technology. so this is a great relief. at a different time, this would have had a reverberation into some of the other online retailers. i will say one thing about investing in china tech stocks. there is a piece of news that came out like last week. it was about the public company accounting oversight board, basically a u.s. accounting standard board, seems to be

coming to terms with chinese officials on giving access to financials and potentially avoiding major d listings of chinese adrs. that would be huge. that would be great news because the institutional ownership of the sector has gone south for the last year and a half and probably is at a low point. great numbers. decent change in the air, possibly. a very good change in the air. >> interesting stuff there. a move that stands out among its competitors today. in the meantime, we have a retail buzz kill. abercrombie and fitch, victoria's secret, macy's, some of the names sinking lower. tomorrow we kick off with best buy at reporting before the bell. they had cuts in the last month, softening demand for consumer electronics. the expectations are coming down for best buy and many of its peers. what is ahead for retail? bonawyn, is the bar low enough for best buy? we have competitors like walmart and target, at least as

a category. they warned us it wasn't going to be good. can we have more downside surprise here? >> listen. i know you don't want me to be negative. i can give you a short or a long answer. >> whatever answer feels right to you. >> verrone touched upon it when he talked about xrt versus srp. we talked about walmart and target struggling, and the parallel with technology type of sector, electronic type of sector. it is not going to be different for best buy here. to your point, i do think cinema is so bad that typically, there is always the option for the contra trade, but i don't think this is the proper set up. i think there is more pain ahead and what they have tried to do is dampening the blow by getting in front and letting you know and guiding lower, releasing, and letting people know what to expect. i don't expect a surprise here. >> guy, you know best buy has a team that of -- costco or home depot.

the way that they run things, even when times are tough. do you give them any credit for that going into this report? >> i think those geek squads, being a geek myself, we relate to one another. it has been very -- best buy has been cut in half since thanksgiving of last year, effectively, from 140 to current levels. it is a difficult environment and the question to ask yourself is, did people load up on all of their electronics in the pandemic? how much of that pull forward is going on? people say is manifesting itself in its progress. i get it. the problem is, there seems to be more pain ahead for these retailers. some others aren't, and the one you mentioned are at the top of that list. >> we always talk about what they are selling at best buy, but the services they are pushing to, which i'm sure we will talk more about when we get that release. we do have a news alert for

you. filing for a capital raise, up to $8 billion according to an s.e.c. filing. there will be debt security, warrants, and more. what you make of this move here? >> the story of these names, going back to tesla over the last few years. they have to continue to raise caps and burn cash for a long time until they become profitable. the market cap, and they have $2 billion in cash. they are going to lose more than $2 billion this year, so they are going to have to keep doing it and diluting existing shareholders. that is the story. if you play this is a secular ship, maybe you spread your money around and some will succeed. not all of them. >> and you just have to let them burn through that cash as time goes on. coming up, a radioactive rally. one uranium name, our very own tim seymour. he owns the stock. and more, when "fast money" returns. outperformance at pgi.

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today and the trade has gone atomic in the last week, rallying year than 20%. you are going to have to help me with this one, tim. the largest trading uranium company surging almost 30% over that timeframe. tim, you are in the stock. i'm not uranium expert. what's going on here? what's the trade? what do you make of what is to come? >> love the writing of that copy, too. it has been an atomic move. see cj is a great company and i also on that etf. the news over the last six months have been so pro- uranium, both here at home and in the last two weeks, germany reasserted what we know, which is that they cannot close the final nuclear plant. japan last week talked about two big nuclear projects, and this is obviously a country that has had nuclear issues and one that is back at the table.

demand side, again, go back to the numbers we heard from miko. how are these companies being run as part of the trade in addition to what is around it? this is a company that actually has been harshly negative on precast load per share and will probably do a 10% free cash load next year. they just signed 5 million pounds of new long-term uranium dioxide contracts. the tail and for the sector and i think for the world here are powerful. >> fascinating stuff. you always learn stuff on "fast money". kimiko. that's an interesting one. coming up next.

it is time for the final trade. let's go around and start with tim. >> when you find yourself in times of trouble, there is a song about this. a discount to the s&p and it will be very defensive here, while also being offense. >> guy. >> marathon petroleum, court.

>> bonawyn, what have you got? >> that's good enough for me. >> dan? >> you got yourself in trouble. get your pilots together here. >> okay. very interesting. thank you very much for watching "fast money" here nit. my mission is simple, to make you money. i'm here to level the playing field for all investors. mad money starts now. >> hey, i am jim cramer. my job is to not just entertain but educate and teach. call me at [indiscernible] or tweet via jim cramer.