of workers want to get paid more, especially if they're pushing for it >> that's right. we had another day of green for the major averages, as this rally is continuing with the s&p finishing the day at 4515. that does it for us here at "overtime. >> "fast money" begins right now. bright now on fast, kwtsz bargain chip shares of nvidia are trading at all-time highs one top analyst says it's still cheap. find out why there's more room to run. plus, assessing the damage for insurance companies bracing for a flood of claims in the wake of hurricane idalia the impact on the insurance industry could be much greater than this one big storm. and later, so bad, it's good the chart master is here with a couple of beaten down names he says are primed to pop i'm melissa lee, this is "fast money. we start off with the big tech

rally getting refueled in a big way. the nasdaq leading the broader market today, now up more than 3% already this week the s and p 500 and the dow seeing strong gains as the major markets try to end the month on a positive note. nvidia, a major driver for the rally. shares hitting another record today, and are up 7% since monday, it is now up 237% so far this year. not the only tech stock seeing strength apple closed back above its 50-day moving average today. alpha bet's biggest move grasso, feels like we're back. >> it's funny, because, we've seen this where they were the risk stocks and now they're the security stocks, the defensive plays. they were the stocks to sell in a rising rate environment, then they became the stocks to buy in a rising rate environment. everything sold off enough to get people a little taste of a bargain. the bargain was still overpriced, but yet people t think, this is where i'm going

to get the gains going at the year end >> yeah. we've seen rates sort of come down a built, it, won thbonawyn be settling in >> yeah, we have some economic data out, revised gdp, adp numbers came in lighter. so, we're seeing signs that perhaps the fed doesn't need to be as aggressive i would argue that maybe the sentiment is shifting here, just a little bit, in terms of bad news being good news right, it seems on the surface that, okay, bad news is good and that it's -- the rate pressures kind of subside, but if you drill down a bill further, i wonder if the rotation and continued participation in these tech names that we're seeing is because people are saying, okay, in fact, if we do continue to soften, where do i want to actually be allocating capital so, i think that is part of the narrative, as well >> it's the whole, this is the defensive area of the market, the quote unquote magnificent seven, tim that's where you want to be, in

good times and bad it's always the place you want to be. doesn't make any sense to me >> well, there's -- it doesn't totally make sense to me, either and i think we've almost seen the best of times. the market repositioned significantly going into kind of that high rate turnaround, it was four, five weeks of equity repositioning, and yields were something on friday the 18th that was all we could talk about. you've had a major reversal there. there has been some data there's been some dynamics, also, i just think in repositioning, so, what i find interesting is that of the mega cap techs, there's new leadership so, apple and microsoft, which were the stocks that we were most concerned about, in fact, they made a very healthy bounce off their 100-day, you mentioned back above 50, but that was a very key level about a week ago. both look interesting, but it's google and nvidia, if you look at companies that are making relative highs to the s&p, and that's what i'm looking for, because as i've talked about the fact that the triple q was not making new highs to the s&p,

really from that may 24th nvidia q-1 print, all the way through even its most recent print, was unable to make new highs we're now almost within 1.5% of that, you know, that relative high to the s&p, and you're getting leadership from other names. nvidia, we're about to try to discuss and argue why it's cheap, it doesn't really matter when there are so many people that have been offsides, bears that have been crushed, and people that are just underweight the stock that's now the fifth largest stock waiting in the world. so, that's part of the dynamic and i do think that these stocks, you can make an argument for all seasons. i agree, also, bonawyn's talking about bad news is good news, friday's payroll number, i think, could be a rocket on a weaker number, especially on wages. >> yeah, and we have to remember, of course, this is the last week of summer, basically, julie, and i know that folks out there are still watching the show, even if they are at the beach or the barbecue, but most people are not trading they've got off. >> well, they can trade at the beach or the barbecue now.

>> that is true, too that is a good point by grasso julie, how are you feeling about tech at this point, especially as we are going to, you know, enter a much busier time in the fall >> yeah, i would say trading at the beach is frowned upon where i work, but -- i understand people have to do what they do i think, you know, i think, again, it's not a monolith, and even within the magnificent seven, these businesses are actually pretty different, and i think where i'm willing to pay up a little bit more is for, you know, consistency and durability of earnings. and a lot of that is recurring revenues, so, you know, for me, microsoft's multiple makes more sense, because, you know, that is a business that can really forecast this revenue pretty accurately, and they know where their business is going. and i think investors are willing to pay for that. nvidia is an interesting case, where, yes, this is, like, at the forefront, they basically have a monopoly on a lot of this technology, but it's still a chip maker, right? and we've seen cycles where

there's overordering and a correction, so -- to me, that's a little bit different in terms of the durability of the earnings, but i agree with steve, i think people saw an opportunity, things were slightly on sale, and they got really hungry for them >> yeah. would you agree with julie in terms of arguing for valuation you're willing to pay for a microsoft, because it seems like the business is more durable, more recurring >> yeah, well, what do you think you want to own in the marketplace? you always want a recurring revenue stream you always want a secure balance sheet. you always want cash flow. and all of these names do that for you. and think about what left the conve conversation recession. there's a case to be made, pmis late in 2022, that we might have already had a recession that everyone was focused on, so, if you think soft landing or maybe we're taking off again, you want to get into those names that will benefit the most. >> do you think that we've heard enough, though, in terms of

enterprise spend about whether or not we've passed that sort of recession trough, bonawyn? are you still worried that perhaps enterprises are pulling back because we are hearing that in commentary, on conference calls. >> yeah, i mean, i think you brought this point up yesterday. there is some divergence within the groups in terms of where money is going to be allocated and you certainly are concerned about that, but julie's point, i definitely think -- even in the earliest stages, when you're looking at valuations, you are always going to be priced off of arr. the most -- the most sought-after type of revenue, so, any time you're kind of moving from, let's take an apple for example, talking about the hardware sales and how they're suffering, the subscription model is where they start to augment that and fill out the rest of that business model, and that's why you attach that premium multiple so, i tend to agree there. >> let's bring in one of wall street's biggest nvidia bulls.

ben's new note is titled, dare we say nvidia is now cheap yeah, ben, welcome dare we say. nice to phrase it that way because a lot of people would argue with that, but yet, you argue that it is, when you take a look at the multiple, based on calendar year '24 earnings, and when you compare it to, eb to sales basis, to a microsoft, an apple, et cetera >> yeah, well, when you adjust for growth, there's oversized growth here. we're looking for 40-plus percent growth in sales and eps, and that's probably really conservative, so, right now, it's trading 29 times next year's number. it could be a bargain. and their tam is growing really fast, too. and those numbers look really conservative >> so, why is their total addressable market growing so quickly? it's just the -- the sell through of the a.i. chip specifically makes the total addressable market much bigger >> well, i don't know -- depends

on how you look at it. the cloud giants are spending like crazy in this market. and, you know, google just had an event this week, and they announced an expanded partnership with nvidia. and it looks like they're going to be spending a ton of the h-100 super chips, which have a huge margin and huge asp and nvidia is the intel inside for a.i., to borrow a pun from many years ago and you need nvidia to serve customers, to serve a.i., and the clouds are rushing to do it. and it is giving rise to gpu as a service, all the second-tier gpu as a service firms, as well. so, there's a lot of spending and we are yet to see whether the apps all come and the enterprise adoption comes, but the spending cycle is going to last well into next year, probably through next year >> so, the bears will say there could be overordering. there's a lot of pull forward to this, and you actually make the

point that they're trying to build a more durable stream of revenue, that they are looking -- >> yeah. >> to create this sort of eco system can you explain that i feel like that is, you know, the notion that it's a one-off, it is sell its chip and done is the pillar of the bear case. >> i'm really glad you asked this question. every once in awhile, a special company comes along that's a plot platform this is one of them. there was apple, microsoft, but every once in awhile, one of these comes along, it's rare, and nvidia is probably the only company that has the ability to do that. you generate an outsized proportion of the profits for that industry, and it's more durable than people hink just look at apple a lot of people thought apple would be cyclical, you know, the multiple got really low, and now it has almost a 30 pe. this company is probably one of those special companies. they are putting in the soft ware, cloud services, and they're generating a ton of cash now, so, they're going to buy

back stock like apple can. >> can amd not do that >> not yet no they don't have the software moat 15, 20 years ago, nvidia make decisions that no one can touch. these were decisions made decades ago. you can't just get into the market with a ported code. this is -- you know, there's emulation, there's certain things that happen that developers take very seriously, and they're trained and they're used to nvidia and they want to use it in the clouds and they want to use it for a.i. apps you can't really just go in and take a big share what likely does happen is that 80/20 rule, 90/10 rule, where there could be a second player, but i don't see their share, you know, going below a dominant level. and i see them leading this market and enabling it, frankly. >> what kind of reception did you get to this call today >> well, you know, some pe people -- i mean, look, you know, you definitely -- >> did you need security on the

road home? >> i don't need security on the ride home. it wasn't that hard of a note to write, because the numbers are the numbers. i just pointed it out. i would say that some folks are like, whoa, there's a digestion period going on right now, and sometimes it's just good to look at the obvious we had a big run into the call, a lot of folks were like, well, is there double ordering, is there this, is there that, and people got concerned about that kind of stuff. is supply meeting demand and then sometimes you just have to take a step back, and you have to say, are we being compensated for the growth and, look, management is going to be on the road at a lot of conferences, there's a lot of positive new flow to come. i think they're going to do a great job of explaining their moat, the end demand, and how they are creating a platform, and when you look at the growth, you'll go, yeah, i'll take a stab at that because it is cheaper now. >> it sounds like -- every part

of the story is so bullish, ben. you've been in this industry for a long time covering technology. >> yeah. >> doesn't it give you pause >> i -- i do get nervous i felt that the last week, you know, we got a lot of questions before, oh, is amd coming, what about competition? and then this week, a lot of things said, is this a bridge to nowhere? where are the apps where's the enterprise demand? and i think that, look, google had an event and it was really clear, there's still a race. all the cloud guys, they have to spend here you do worry about it. in nvidia, i think they ask their customers who their customers are, and they're trying to sell this, and they have to do that also so stuff doesn't wind up in china, by the way, but they are doing a really good job of figuring out where this is going, but it's not perfect. and you always worry, and i was around in the bubble, you know, i hopefully look younger than that, but i was around, i saw -- i saw a lot of spending that won't up not being needed. you always worry about that, but

when you -- when you do the bottom's up work and you look out five, six quarters, it's really tough to not thinkthey grow sequentially. and the numbers go out to be fantastic. you have to be careful there's another data point every day and if things move fast, but for right now, when you -- when you -- i cover google, i cover microsoft. when you look at what they're spending, there's upside to those cap x. there's not downside so, these others are racing. so, for now, it looks pretty good and the best information we have is that these guys keep killing it >> ben, thank you so much for coming by. >> thanks. great to be here >> julie, are you convinced? >> i mean, you know, my fiance says this a lot. both can be true it can be true that nvidia is a platform that no one can catch it, that it will own 90% of the market i actually believe that, i think

that's totally true. but it doesn't mean that we can't hit air pockets, it doesn't mean that growing that quickly isn't stressful on a business, it ends up being actually pretty hard to grow that fast and do it well and so, even apple has had periods where they've grown really strong and then they've had to kind of retrench. and so, my biggest concern is kind of what you touched on towards the end, which is, where is the enterprise on this? and do they realize they want to spend? i understand that google and everyone is in a race, because this is a new business opportunity for them, but i'm concerned that it's not -- you know, the baseball field that will be not used, if they build it -- i don't know, what is that thing? >> they will come. >> i'm worried, you know, they're going to build it and not necessarily everyone's going to come. >> grasso, it sounds like you are more bullish on the economy, at least for now and so, does that mean that you should be more bullish on a name like an nvidia >> yeah, this is one of the names that, obviously, it's up 240% or tlbt thereabouts for the

year sometimes you have to hold your nose and just buy the stock. and to ben's point, if there -- you know, we talked about this, if they have 85% market share and it's theirs to lose, how long how long is it their market share to lose? how long are they -- are they insulated? he said there's a moat around it, which makes me more bullish about it and people are going to talk about a stock split, which does nothing for shareholder value, other than more shares when you look at these names, you would have thought coming out of earnings that the whole space would have rose. it didn't. nvidia did the space, the rest of the space is basically treating nvidia like winner take all so, right now, if you want to be in the a.i. space, you need to own nvidia in your portfolio >> you own it? >> i don't own it, but i'm going to wind up paying up i've owned it, sold it, i'm going to have to hold my nose and buy the stock. let's move on here shares of salesforce on the move after reporting results. the cloud company beating on the

top and bottom lines and better than expected guidance for the current quarter. steve kovaches has more details on the quarter steve? >> yeah, melissa like you said, beats across the board for salesforce, and eps, that was the big one, after the company was cutting costs and increased its prices this year strong beat with $2.12 a share versus the $1.90 the street was looking for for eps. and revenue beat, too, but that was top line growth slowing. it's up to $8.6 billion. compare that to the 22% revenue growth reported in the same quarter last year. more positive news in here the xcompany raising its revenu guidance for fiscal year of '24, easing fears that enterprise software spending would keep on falling. the ceo saying the back half of the year is looking strong salesforce expecting up to $8.72 billion in sales for its third quarter. that's above estimates and eps guidance smashing

expectations, as well. expecting up to $2.06 a share. street was looking for $1.83 and the call has been going on 15 minutes, so, i'll be back with any good headlines. >> steve, thank you. steve kovach bonawyn? >> i thought this might have been levitating on the a.i. story, but truthfully, this is really about operating efficiency if you kind of drill down, you look at free cash flow, 360 versus 445 expected. and raising guidance and the operating margin, i think they bet by 300, 315 basis points that's real material so, it shows there's some real meat on the bone here in terms of operating efficiency and profitability. >> yeah. tim? >> everything that we've heard both from ben's argument for nvidia, what we're hearing from salesforce is also just this argument that this cap x recycling, or the cyclicality of this, is alive and well. and that was one of the biggest questions around both nvidia and

certainly where sales force was at the start of the year from investor's perspective what were you willing to pay for? we're talking about 25 times 24 eb to free cash flow it's not cheap but the enterprise spend and the cap x within the industry, and everyone, you know, people have been wrong in terms of what we could expect from megacap tech companies in terms of spend, and that's what this announcement is about. so, it goes higher it was down in the print, it was down 8% over the last month or so, not surprised to see the pop. coming up, more earnings after the break. crowdstrike and okta we have those next. and lifting things up from the inside shares of lyft topping the tape after insider buying what's dr driving all the optimism "fast money" is back in two.

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welcome back to "fast money. we've got earnings alerts on crowdstrike and okta, both names on the move after reporting reports. kristina has the details on both the stocks >> well, when it came to earnings, crowdstrike beat across the board, including its

q-3 and full-year eps and revenue guidance there was one important metric that came in light that caused the stock to fall into a negative and why it's up less than 1%. that's net new annual reoccurring revenue, which is a key metric since it really gives us a snapshot of current live contracts. crowdstrike posted $196 billion in the corner. cited estimates at 198 so, crowdstrike came in a little light. there is a billings number that came in at $835 million, that was slightly lower than the estimate of $863, so, could be reason why you saw that volatility post 4:00 p.m. in the red, and coming up now that the call is under way and they're talking up a.i., that's for sure but also,al commonality between both crowdstrike and okta that you're receiving on your screen right now is that i.t. spend continues to remain robust okta's results were better than expected with strong full-year

revenue guidance, but the ceo did note they are, quote, maintaining a cautious near-term outlook with growth driven more by existing business rather than new customers, which could explain why crowdstrike's net new arr came in a little light nonetheless, okta shares up doubt digits right now, 10%. melissa? >> kristina, thank you tim see more, your thoughts on crowdstrike? >> well, on crowdstrike, coming into these numbers, i think sentiment has been very poor there's been some concern that they are not able to gain incremental market share, and, you know, that, i think, in market saturation are what they're competing against. those numbers and the guide continue to tell you that that's not the case it's really going to come back to valuation, but i still think that this is a place where companies are not letting go you look at the arr, it continues to build, it's a slower build and it's not competing with a.i., so -- i, you know, i'm long the stock i actually have a number of accounts along the stock and i

like these numbers. let's get to lyft, topping the tape today, jumping 8% the company's lead inte den independent buying purchases the stock still remains on pace for an august decline as it continues to trail rival uber. how are you feeling about lyft >> so many different levers when you talk about uber versus lyft. and lyft decided to be focused on one thing and one thing only pretty much and the stock price reflects that. uber just out -- blows them away on revenue, which gives them the ability to put more money into the company. it's really uber's game, and lyft is sort of living in that world. the stock chart does not look great to me, i still wouldn't be a buyer. >> i don't think them doing that is reason to rush into a stock i know there is plenty of room for both honestly, i thought the pure play coming out was probably the

way to go, a focused approach to is a new type of enterprise that's proven not to be the case, and steve's already spoken to the lack of diversity and revenue streams. with that said, if you kind of look historically, i mean, i don't know how much further the stock can drop i don't know how much more negative the sentiment can be around the stock and when you are seeing -- i would rather see insiders buy than seeing some type of stock split or reverse stock split so, you know what -- i think -- there's not much downside from here >> there's a lot more "fast money" to come here's what's coming up next. going nuclear. uranium surging, adding to an already big year but can the heavy metal move keep on rocking? we'll debate. plus, insurance impact the season's first major hurricane making landfall in the southeast. but the impact could be felt across a much broader area more on the affects from the storm ahead. you're watching "fast money," live from the nasdaq market site in times square.

we're back right after this.

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visit purple.com or a store near you. welcome back to "fast money. yuranium in rally mode. up 6% this month, as china, india, and the united states ramp up nuclear energy buildouts. cameco is up more than 60% in 2023, but is still about 35% below its all-time high. tim, you flagged this big move here >> i'm long ccj, i've been long it a long time and the story around nuclear is coming together from all sides in other words, the macro around it is extraordinary. we've heard, obviously,

about-face in germany, we know what japan has to do, despite some of the poor execution there. we know jennifer grand home, and this administration, refer to uranium and nuclear, excuse me, as the largest single source of carbon-free energy and that it's pushing forward. so, the supply/demand -- we know new reactors have not been built. if you look at all that, we know the macro is playing in favor of nuclear. in terms of your rain yun prices, we're breaking out, we're near 12-year highs if you look at uranium, 48 bucks at the start of the year, 58 bucks a pound now. again, this is an enormous part of the movement in the stocks, and we've seen high correlation between ccj and uranium prices on the bottom up, look, company-specific, ccj is executing. this is a company that just completed building out their cigar lake mine, they've gotten approval to grow out their macarthur mine everything around the story, and people have been following

uranium have been following ate long time, it really feels like forces are lining up here. i think it goes a lot higher >> yeah, i mean, this is -- tim mapped it out pretty well, and kudos to tim, he's been talking about this for quite some time it's 24% of that etf so, when you look at it, it's a bipartisan effort now. everyone wants uranium as a choice it's zero emissions. so, in a world where we're trying to get greener, this is obviously finding a lot of tailwind coming up, record-breaking storm surge hitting florida and georgia, as hurricane idalia makes landfall how insurers are bracing for the aftermath. that's next. plus, pot stocks lighting up, as potential move to a lower risk category. why one of the traders is calling this a game changer for the trade. the details when "fast money" returns.

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welcome back to "fast money. stocks locking in four days of gaining, straight gains. the dow and s&p up modestly. and some more afterhours action, shares of chewy jumping after reporting a beat on the top and bottom lines and five below dropping after the company lowered guidance. hurricane idalia lashing its way into florida and georgia today, in what has already been a summer of storms

ubs estimating damages could be in the multibillions and as these storms become more common, there could be some big impacts on homeowners and insurers cnbc's contessa brewer has more on this. contessa >> hey there, melissa. hurricanes and wildfires of course grab headlines because of the intensity of the impact. winter storms, hail, thunderstorms, they can be just as costly when it comes to damages. this year, u.s. thunderstorms responsible for nearly 70% of the global ka tros trophy losses and by the way, those are insured losses a survey by the insurance information institute indicates 12% of u.s. homeowners have opted not to get property insurance at all, and half of those have a houseold income of less than $40,000. because premiums are soaring across the nation. as inflation drives up the cost of repair and replacement, so have litigation and fraud, and

in some states, insurers just have not been able to raise premiums enough to cover their loss costs take florida, for instance insurers, dozens of them, have folded or fled the state many customers only option now is citizens, that's the state-backed insurer of last resort, but those customers often can't buy enough insurance, melissa, to cover the full replacement value of their homes. just this year, florida lawmakers passed a new law to try to keep the insurance industry from cratering, but look, there's no one size fits all solution they've got to come at this from a lot of different ways to try and maintain the integrity of the system, but also, figure out a way that people can get the insurance they need. >> yeah. contessa, thank you. contessa brewer. for more on the road ahead, let's bring in david samson, the american property casualty insurance association ceo and president. david, thank you so much for joining us when you hear -- >> thank you, melissa. >> when you hear about the

losses that have just amounted to just a total that we have not seen in this industry, ever, what are the ramifications of this >> well, i think contessa pretty well gave you a good assessment of what the ramifications are. natural disasters have delivered hundreds of billions of dollars in losses every year for the last three years, as a matter of fact, $275 billion in insured losses due to natural disasters over the last three years. that's the highest total ever in the united states, and the first half of 2023, we've already seen $40 billion in insured losses, and, of course, that's going to go up as a result of maui, as a result of the wildfires, and hurricane idalia and we're not even in the peak of the hurricane season yet. >> walk us through what happens, though, to communities where,

you know, you can't get insurance, insurance is much harder to get, or is much more expensive to get >> well, obviously we're in the risk transfer business we -- the last thing we want to do as an industry is to have to pull out of any marketplace. but the realities are that due to economic inflation, highest rates in 40 years, combined with other factors like legal system abuse and the global cost of capital, and as contessa pointed out, the inability in some states to get adequate rate, insurers are faced with the hard decision to rebalance their book of risk. as more and more people move to the most natural disaster-prone areas of the country, and are building more and more expensive homes in those areas, we have to be -- we have to get an adequate return on our capital to be able

to be sustainable to pay those claims when they come in >> hey, it's tim, thanks for joining us >> yeah. >> and my question is, is there some good news in terms of cost of camal and in terms of return on capital from higher interest rates? insurance companies are also about managing risk and managing cash flows and liabilities this is a unique time in history for insurance companies to actually be taking less risk and earning more >> well, that is certainly a factor and has helped, but when you look at the global capital markets, reinsurance is, of course, a global capital market. reinsurance rates have increased 57% over the last two years. fry mare insurers don't keep all of that risk on their own books. they buy insurance from the global reinsurance market. part of the challenge is that there are -- for the global capital markets, there are other vehicles to invest in that offer

a higher return than insurance at lower volatility, and so, that's a part of some of the challenges that the industry as a whole is facing right now, is attracting capital back into the primary insurance market >> david, thank you so much for joining us we appreciate it >> thank you, melissa. appreciate your interest >> david soamson. what a conundrum as we are facing these natural events that happen, like hurricanes, et cetera, which happen every year -- >> seems like more and more, to your point we're seeing these more and more prevalent in everyday life, and they're massive now. and one seems worse than the next and this space, as far as investing, didn't want to be cavalier, taking the human element out of this, but it's probably not investable for me, because the only thing good about the space is the dividend and i never buy something for a dividend, because the dividend could be wiped out in seconds.

>> i mean, the upside to all of this is that typically, after terrible year, you're able to raise premium. but you have to wonder if people are just going to forego insurance because of the environment. premiums are going higher, people are getting pinched, what do you do? you cut back >> yeah, it really causes concern from the consumer standpoint one, affordability and ability to kind of assume homeownership. secondly, the prevalence of institutional ownership, right what is that going to do to rents? what is that going to do to other types of feoff fees it pushes affordability further and further out. coming up, so bad it's good. the chart master will join us with a few stocks having a rough go, but he says are ready to rally. we've got his list ahead. but first, pot stocks seeing green today. will the high times continue for these names, or are they just dazed and confused the trades and more, when "fast money" returns

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meanwhile, pot stocks soaring, with cannabis fpossibly being removed as a schedule one and would make possession a misdemeanor rather than a felony right now, it's in the category with lsd, heroin, and ecstasy. so, tim, this would be very meaningful for the industry. >> yeah, and drugs that have no medical, medicinal benefit so, the headline is important, because, again, it's a recommendation from the fda, who has been doing the research. and this goes back to october, when this administration, president biden basically said, when he was also proclaiming that he was giving, pardoning and essentially federal offenses related to drug possession, that were cannabis-related, he was ready and has been onboard he also then told the fda and the hms to start working on the science side of this ultimately, this letter was a

letter to the dea. the dynamic is very important, because it doesn't mean federalization is on the horizon. it means that you could po possibly, by rescheduling cannabis down to schedule three, you would change the punitive tackization that the industry has had from day one something called 280-e, that basically means most cannabis businesses cannot be profitable. so, the headline is very important, because it actually could be fantastic for the legacy players it changes taxes that could increase free cash flow from operations and make these businesses wildly cash flow generative, as most people thought they would be. it doesn't change the illicit market which is running out of control. it doesn't change the federal issues it's still an asset-heavy industry, but this would be probably the biggest, you know, present under the christmas tree for the industry i would make an argument and it will certainly help foster some of the banking follow-through that is industry

is expecting i would say, when we have these conversations about cannabis, people get upset, because the canadian names rally more than the u.s. names this news does zero for the canadian names here. if anything, the canadian names on federalization, maybe they are interesting, because you can start to have access to the u.s. markets, but this is a u.s. story today, for an industry that's obviously been beaten up, but the biden administration has to do something here to follow through, and it kind of makes sense politically, at this point of the election cycle. >> yeah, we are close to the election julie biel, are you an investor in pot >> look, i've said it before and i'll say it again, giving your parents a tiny little edible at thanksgiving is not a bad idea i -- you know -- i'm in california, so, it's legal, okay, like, it's fine here whatever legalish -- but look, this is a pretty big change. it's pretty remarkable and it has actually implications for, you know, our prison

problem right now and overcrowding, which has been such a challenge for us, so, i think it has follow-on implications i still struggle investing in something that is so nay sent, but i think there are companies like a scott's miracle grow that actually has al separate business that, you know, supports the pot industry and, so, a safer way for me to play it. one options trader making a very, very well-timed bullish bet on pot stocks today. mike khouw has the action. mike, what did you see >> yeah, so, i was looking at msos, that's the adviser shares pure u.s. cannabis etf this one traded well over eight times its average daily options volume, closer to nine, actually over 100,000 contracts that represents 10 million shares there were a number of bullish bets that we saw in here one of them was a ratio call spread the january 6th calls, it was a net of about 3 cents, selling

those upside calls, mitigating the a jan 6 calls, thinking this could recover back to $10 by january expiration >> mike, thank you for more options action, tune into the full show, friday, 5:30 p.m. eastern time. coming up, the chart master will join us with picks that are so bad they are good grab a pencil and paper, you can't afford to miss this one. "fast money" is back in two. rude. who are you? i'm an investor in a fund that helps advance innovative sports tech like this smart fitness mirror. i'm also mr. leg day...1989! anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. i go through a lot of pants. before investing carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com.

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we come back to "fast money. major markets on pace to post losses for august, but some pull-backs may be creating an opportunity. the chart master is looking at a couple of names he says they could be so bad, they're actually good. let's bring in carter worth with some reversal buys carter what are you looking at >> that's right. so, as distinct from a so bad it's good, which is just going straight down and down and one just gambles, these are very bad stocks that are now quite good mi meaning, they've made the turn let's look at them but first, a table or two, just to set this up so is there's the s&p, unchanged over the past two years, and now we're looking at stanley black

and decker versus yeti, coolers and beverage holders, versus match.com, online dating and they have nothing to do with one another. but on a two-year basis, they're a disaster look at those numbers. now, on the other hand, look at this over the past three months, it's quite the opposite they've made the turn, it's what a bottoming out formation is the s&p is up 7% over the past three months and look at those numbers. ye yeti is almost five x. matc match, stanley black and decker. the pronounced weakness, each of which, yeti being the first you has started to bottom and base some call it a bottoming out formation, a rounding bottom i prefer bearish to bullish reverse am let's look at the next one again, yeti has nothing to do with hand tools, but it's the exact same circumstance. moving average, automated trend line has turned. that's the 150-day and finally, the last of the three, and you'll get the picture. it is all the same circumstance.

preceding weakness and now improvive relative strength month over month, all to the extent where the moving averages have flattened in turn let's look at a comparative chart, same time frame, two years, and that's the story. there's the s&p, virtual lu unchanged, and these stocks, great disasers that have made the turn >> wow carter, thank you. carter braxton worth always brings names to the table that make you think. julie, do any of these look good >> you know, i think of all of them, i would probably rank match above the others at least benefits from, we call them mini net work effects, where the more people that are on the dating apps, the stronger they are, and they do have some quality names that, you know, have some good critical mass yeti, it's very scary to me to have such a high priced product that doesn't necessarily offer the most exceptional functionally, so, i think that's

a consumer product brand that i'd be nervous about and stanley, the amount of leverage on that business is a no-go for me >> the yeti coffee cups, they leak >> come on >> yeah, you knock it over, the cover on, it will leak >> maybe you had a defective one. >> i'm telling you they leak. they're not meant to be airtight like that. they keep the beverage cooler or hot, fine, but they don't keep it inside. anyway, bonawyn, you like these names? just an fyi, public service announcement >> match would be my pick. the best of the worst, i guess i'll call it for slightly different reason. like, i don't want a durable goods company right now. i'm really concerned about the consumer similarly, with yeti, again, it's a consumer good and if you see where inflangs is in terms of consumer experiences, that seems to be the place that continues to hold up as it pertains to the consumer so, i wouldn't bet against that trend. >> i like stanley. i like the chart on stanley a

little better than that. and if you think about the market psychsigpsychology, if y at the chart for the last three months, when apple and the large cap tech names start to bottom, people buy those first and they reach out on the risk spectrum that's why they're running so, i think as long as the market does well, these names that are tesh area names will do well >> tim, your quick take? >> i'm very handy with a power tool, and i'm a buyer of stanley. i mean, i think the bottom line here is -- >> sure you are. >> services -- thank you services get more expensive -- >> that brings up his match profile, too >> he's a happily married man. anyway final trades are next. power e*trade's easy-to-use tools, like dynamic charting and risk-reward analysis help make trading feel effortless. and its customizable scans with social sentiment

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time for the final trade julie biel >> i mean, insurance sounds pretty scary, but i like insurance brokers and ryan is probably the best run one. >> tim seymour >> gdx we're starting to see some gold follow through gold and silver. rates stay down, growth slows.

this is great for gold it's been up, it's been down time to buy it >> bonn that win >> i'm not the biggest bull when it comes to retail i'd be a better seller of xrt. >> steve >> hidden a.i. play, micron. >> thank you for watching"fast money. special series, "mad money" back to school starts right now