covid variant gaining steam, we're assessing the best of the e-mail industry >>> plus, hold your hedges why you should keep your hedges on and how not to be caught in an over ledge thorn bush options action starts right now. good friday evening or friday afternoon on the west. some expect earnings this quart tore be red hot as well. and while we love to focus on all of the big names here on cnbc, the names you know, carting scarter say there's is one that is as good of a tell as anybody. carter explains. >> a huge name, fastenall. nearly 40 billion in market cap. it had a broad reach and it does business to construction and to both retail, automotive, adhesive, it goes on and on and the street hates it. of the 16 analysts only three have it as byes. the 16 analysts that cover it the price target right now is lower, looking out 12 months, to where the stock is trading i think it will do well into earnings let's look at a couple charts. first just to put it in context is fastenall versus microsoft. here we are, the summer of 2021. you can see that this company has kept up with one of the

. >>> plus, hold your hedges professor kho explains why you should keep your hedge on and how not tocaught in an over hedge thorn bush it's time to risk less and make more "options action" starts right now. good friday evening or friday afternoon if you are scorching out west let's get right now to it on "options action" because some expect earnings this quarter to be red hot as well. and while we love to focus on all of the big names here on cnbc, the names you know, carter says there is one under the radar name that may be as good a tell as any and it is not a name you would normally think of. the chart master carter explains >> a huge name, fastenall. almost $40 billion in market cap. the issue is it has a broad and wide reach 3,500 outlets or stores, if you will, and it does business t construction and to both retail, automotive, adhesive, it goes on and on and the street hates it. of the 16 analysts only three have it as buys. the 16 analysts that cover it before we look at the charts the price target right now is lower, looking out 12 months, to where the stock is trading that'

it is a good time to hedge >> i think you just gave me about 18 rbis.eight-week periods are there, tony? 1,894. i hope i don't get that question later on tonight tony, i understand that you get questions on this stuff all the time how do you answer? >> that is exactly right we see a lot of interest in these leveraged and inverse etfs for a trader looking for intraday moves, looking for leverage or short exposure on an underlying instrument without having to utilize options these are great products for that but as mike said these are not free leverage there is two things that investors need to understand when they're trading inverse or leveraged etfs the first one is the fact that the exposure you're receiving is only meant to give you that type of exposure over a sing trading day. so if you are trading a triple leverage etf, if the index is up 1%, you will see a 3% return on that etf that single trading day but if you hold it for longer than one trading day the cost of that leverage will be embedded into the daily naft. you're going to start to see a dr

>> qs expect more on the upside but time to hedge. >> tony?d flooring with mohawk i'm buying a call debit spread to play for upside. >> mike khouw. >> hedge when you can and not when you have to and i like q put spreads and cover the options you have in stocks. options you have in stocks. >> that's it for thid to fit "options action. weekend edition is up next and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service. well except now you're binge learning. see how you can become a smarter investor with a personalized education from td ameritrade. visit tdameritrade.com/learn ♪ >> that's it for this edition of "options action. ♪♪ ♪♪ ♪♪ (dramatic music) ♪ (stu) i really can see the difference. i can see this hair coming in. i have hair on my head. i can brush my hair now. within two months, i've gotten my hair back. it's just like a second chance on life. ♪ no hormones, no surgery. ♪

look, hedging all the time is expensive. if you had to pay 1.6% of your portfolio value every six months that would drag on your returns very heavily if you're doing it after you've seen all time highs and a two-month stretch of gains, maybe that's a better time to take a look at it. >> tony, what do you think >> the trades with these types of hedges, the trickiest thing is always the timing aspect of it mike last week spoke about the skew index, talking about the skew we're seeing from options prices that's certainly very elevated, historical record highs we've seen that shows us while the potential pullbacks are relatively elevated it doesn't necessarily mean they're probable if you look at the vix and the vol q, both of those made a two-week low today if you look at the vix term structure, the three-month vix versus the front month vix the three-month vix is elevated at 19% that ratio of over 1.3% shows that the markets are further complacent you have a lot of evidence that there's a lot of complacency, and this, again, t

taylor: are we hedging? where? stuart: right now, given the signals we are seeing from the bond market, it is prudent to have some hedging on. we have been pointing people towards small-cap u.s. equity because we thought that was a part of the market that was most vulnerable. it has gotten a little expensive to hedge their, so you could just make the argument to hedge in s&p and not get too cute with it, but you are hedging in the equity markets, and we think small-cap is the best place to go based on its exposures, so probably small-cap or s&p's where you are doing that. we are seeing people keep that relatively short dated because that hedge of protection is so expensive, they have been forced to keep it fairly tactical. taylor: can you hedge to the 10 year at 1.28%? stuart: that is a huge question because the correlation between bonds and equities is sort about a transition point. i think a lot of investors are asking, are bonds actually a hedge to a portfolio? if not, that means you have to hedge equities withi

>> mike. >> hedge when you can, not when you have to.nd also consider covered calls on stocks. ve that does it for us ha a great july 4th weekend. special edition of "fast money" up next. i'm searching for info on options trading, and look, it feels like i'm just wasting time. that's why td ameritrade designed a first-of-its-kind, personalized education center. oh. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service. well except now you're binge learning. see how you can become a smarter investor with a personalized education from td ameritrade. visit tdameritrade.com/learn ♪ salute to veterans independence day terry bradshaw: hi, i'm terry bradshaw visit tdameritrade.com/learn rocky bleier: and i'm rocky bleier. col. greg gadson: and i'm col. greg gadson. terry bradshaw: on this independence day, our heartfelt thanks, to all of our military veterans for their service. col. greg gadson: we honor ou

and we don't know how exposed our hedge funds already are.short, we that crypto is big, but we don't know of the threat that it can pose. to alexis goldstein regarding open markets, ms. goldstein it seems like many of the cryptocurrency proponents are at least honest, they want to get around regulations. how much of the appeal of cryptocurrency is just regulatory arbitrage instead of real innovation? >> thank you for the question, congressman. i come at this from the perspective of one who worked at merrill lynch and deutsche bank -- merrill lynch prior to the 2008 financial crisis. i work for the over the count equity derivatives trading desk before dodd/frank when there was not regulation and all the trading transactions were opaque. the cryptocurrency market reminds me of that time. there are know your client requirements, but that's not the only place cryptocurrency can be traded. they are defy platforms, i have yet to come across one of those that has know your customer requirement. there are a number of ways the evade some of the so-cal

i'm very concerned about the presence of hedge funds in cryptocurrency. i think we've seen with the archaicos meltdown this year that when banks have prime broker relationships with hedge funds who are conducting or family funds as our cagos was we're doing risky things. it can redown to the taxpayer-backed financial system credit suisse lost billions of dollars all the banks lost some 10 billion dollars if hedge funds get farther into crypto. they don't care about direction. they'll go long. they'll go short they can use leverage. there are lots of cryptocurrency exchanges like ftx and binance and many others that allow people to use insane amounts of leverage a hundred times to one and hedge funds are the perfect client to use those sorts of leverage. so what happens if a huge number of hedge funds who have prime broker relationships with two big to fail banks all happen to be in similar crypto positions whether it's longer short and there's massive volatility in the market. they may have to sell some of their other assets it. lead to margin calls in th

we're told that cryptocurrencies can be a hedge against inflation. we know that currencies are supposed to be a store of value. well, the dollar does erode in value perhaps a quarter of a percent a month. you can buy treasury inflation protected securities and be fully protected from inflation, or you can say you're trying to get a good store of values so you're going to invest in cryptocurrency that can lose a quarter of its value if there was a joke on "snl," which there was recently and we saw the nearly one-quarter drop. we're told we're going to have know your customer -- know your customer at the level where you're trading and investing, but ultimately bitcoin is supposed to be a currency. so you transfer it to your individual wallet, and there it's totally anonymous. yes, the records are maintained forever, anonymously. and with that you have the perfect tool for those who are underwaying their u.s. taxes by a trillion dollars a year, concealing $3 trillion a year in income, and that means perhaps $30 trillion that has to be hidden every decad

a lot of disappointing hedging. you had a lot of disappointing hedge outlooks.igher costs, and the market guys are saying to me, god i hate this group. [laughter] dani: why though? if they are starting to return money, shouldn't shareholders love that? why are they perpetually so hated? paul: the question is should they be paying down so much debt. the yield on the s&p, the headline yield is negative real terms. so you would think there should be a valuation back to real dividend paying companies. that is what we have been hoping for. but the market really just has no enthusiasm for oil as a theme. the yields are not quite high enough yet. exxon is still paying down debt. they've really got to get to 10%, 15% cash returns before anyone is going to own these things just to own them, and they are really not there yet. they are getting there, but it is a tough road, there's no question. alix: that would be huge. a 10% dividend yield. what oil company did you like? or what energy company do you like right now? paul: the idea is if you can pay 10% sustained yields, i

neil: a little bit more cautious in our hedging. we are 60% hedge.nt financial year is 506 $25 a metric ton which is below the -- this morning. we are 35% hedged into next year, close to $600 a ton, so we are cautiously putting some cover in place. we are well hedged when it comes to carbon, 100% hedged as opposed to 50%. a lot of our competitors are not hedging at this point in time so from a -- we are in a somewhat better position than the rest of the market. manus: can i return to the single biggest factor, which is both political and pragmatic? you can return from a amber countries into the u.k. with no corn -- from amber countries into the u.k. as long as you are vaccinated within the nhs. how much of a capacity change and business change will it make to ryanair if that changes in the u.k. accepts vaccines from outside the nhs system? neil: it will not be a capacity issue. it will be higher load factor. you will see it increase and hopefully towards the 90's towards the back end of this year. we have got most of our capacity flying at this point

and start having this mentality that they're just these main street people and look at not what hedge funds are doing, which is really just a code word for speculation and gambling and have really leverage beds that usually blow up. and then we've got to get back to, you know, what is a large pensions do? what does calpers do out in california? the big institutions have best practices to prevent their money being taken advantage of, of some of the senior parts of wall street. the problem is, is that wall street doesn't message that the individual investors, wall street always messages to individual investors. that this is a very complex game. this. this is somewhat like a casino, and you have to keep coming back every single day to get more and more information that's really completely useless. and i think that when you look through that different lens and have that paradigm shift and think, i'm going to start thinking like a pension fund, because in general, we don't see pension funds getting duped by wall street as much as individual investors. before i jump to richard and ask, you

i love the theaters, but what they found is that the hedge funds in big companies, they were routing against, actually made hundreds of millions of dollars as if the rules don't apply to them. so is it any wonder that household investors wonder if the game is rigged against the little guy? is it like a casino, where the house always wins? should the public trust the markets and what are the regulators doing? fortunately, we're joined today by people who have all the answers. richard vague, secretary of banking and securities in the state of pennsylvania, which regulates the financial institutions in the state. he's the author of a lot of books on the economy, most recently, and illustrated business history of the united states and li months and who worked as a traitor on wall street and moved on to new mexico to found his own wealth management for portfolio. wealth advisors, he's the author of rig money beating wall street at its own game. gentlemen, it's great to have you both with us today and let, let me just start with you and ask you, you know, just point blank. are the markets

a good part of it was hedged at $42.00 a barrel. so the fact that we're over 70, it doesn't really matter except that the cost to hedge it's, it's gone against the producer, the u. s. producers. so that in itself is interesting to move off of 77 here recently looks like a cell signal off of overbought conditions. and but back to the hedging issue, they've already lost 7 and a half $1000000000.00 in the 1st half of the year. from that positioning, and we know that money talks always grand inside is always david mckelvey, thank you for your time today. good to be with you and can say the software vendor at the center of the ransomware attack that is affected to as many as 1500 companies. and at least 17 nations worldwide was actually warned in april of vulnerability that was eventually taken advantage of by the hackers. the dutch institute for vulnerability disclosure published a bug blog post this week, saying it found 7 croner abilities in the company system and informed them of their findings. the d i v d says the after notifying c

most people that will do a hedge don't do a leveraged hedge they don't do 2-to-1 or 3-to-1 the symbolap contract that they do. to somebody who buys it and they bought right at the money. they bought at 17. they are basically saying if the s&p falls, as it is today, by a percent or more, this will move 3% on that day that's exactly what is playing out so far today >> listen, it is 5:54 in the morning. 4:54 in chicago. funny if it was an hour and ten minutes behind i want to clarify what you said. for some people waking up and getting coffee there appears to be, based on that trade, a gigantic market player who appears to be making a pretty gigantic bet against the stock market in the short-term fair to say? >> yes very fair to say very accurate. like we both discussed, sometimes these bets or hedges get expressed through the vix contract and one of the big players is known as 50 cent. he tends to buy 50 cent options that are outside of the money. knowing they would pick up in value and offset the portfolio losses or just as we both discussed, a straight out bet. short-term i think in t

i will leave that to bk right here, if i am implying gold for an inflationary hedge, i am more implied to buy bitcoin, guy is not here right now he is trading the gold in the '70s or early '80s >> he was actually an original miner. >> to me it doesn't make sense, this that's the lone inflation hedge, i'd probably rather do another one. >> if you are going to buy gold, then you buy the miners, they outperform or underperform because they're the master of their own destiny. if you think gold the turning up, buy the miners, you get a little more do you that. >> in your portfolio, is there a place for both gold and bitcoin? >> there absolutely s. i'm long gold and silver at this point in time i don't think there is anything wrong with it. i think it's the same play i agree, it's a similar play but the tailwinds are the same so just a clarification, dan was saying is guy traded gold in the '70s i think he meant the 1870s, just so we know my point being, 1870s or today, i think it's the same trade here in that you will hedge inflation. bitcoin is a better hedge for that plus you got this ups

fund, _ have my own billion—dollar hedge fund, but — have my own billion—dollar hedge fund, but it doess very ironic that— fund, but it does strike me as very ironic that many people who deal in crypto— ironic that many people who deal in crypto really doubt whether it has any worth — crypto really doubt whether it has any worth it all. it isjust crypto really doubt whether it has any worth it all. it is just a way of trading _ any worth it all. it is just a way of trading. it is a bit like dutch tulip bulbs in the 17th century or the south — tulip bulbs in the 17th century or the south sea bubble. people who deal in _ the south sea bubble. people who deal in money want to find ways of making _ deal in money want to find ways of making more of it. and crypto currency — making more of it. and crypto currency is _ making more of it. and crypto currency is a perfect way of making money _ currency is a perfect way of making mone . , , .. , . money. interesting because the chief executive said _ money. interesting because the chief executive said that _ money. interesting because the chief e

what is it for hedge funds right now, given the confusion that we see out there? is it an up year write down year? troy: so far it has been a reasonable year. it is just like water markets. the first shall be last and the last shall be first. tom: biblical. troy: managers that outperformed last year because they were long growth have underperformed because you had about a four month underperformance period. economic strength has been very pronounced. going forward, the industry is still overweight tech liquor growth, but a lot of these up -- overweight secular growth, but a lot of these value plays have >>. jonathan: how fragile -- have legs. jonathan: how fragile do you think this trade is? it upsets confidence people have about where they are on the equity market. troy: the sector rotation this year has been more critical than in the past. for five months you had significant underperformance of growth, so no surprise, cyclical managers, of which there are very left because of underperformance, they have very strong starts. last month, however, you start to see s

these hedge funds are completely not accountable. and we're just adding more more to them fully the stabilize the global economy. you need to protect yourself and get informed was because we were from germany where a long study finds that the, the biomass of sly inside the weight of flying infects, fell by 76 percent in the last 26 years. so instead of just becoming much, much less common, which means all the jobs that they do are not being done anymore, and that, that is the real danger. and that's what's going to impact on algorithms and neural networks have been following us everywhere. we look online because our relationships are what matters most of us and that's how we find meaning and how we make sense in our place in silicon valley see don't mention in their sleep presentations. however, the ghost workers who train the self, well, humans are involved in every step of the process when you're using anything online . but we're sold as this miracle of automation behind your screen is vulnerable workforce. that seems algorithm is

when i say hedging i mean hedging fast. okay biden won this time.who is to say what's going happen for years from now? and hey, even we know what's going on in congress. we saw what happened on january 6. who is to say that congress will just prevent any of this great program biden has developed from going through? and so we have to hedge our bets. we cannot rely on the united states. the united states has become the unreliable superpower. so for instance, what did the eu do at the end of december? they concluded a major economic deal with china. what has russia done? it too has concluded major deals with china. countries around the world, of course they like the idea of working with the united states maybe, maybe not. but china is there offering an infrastructure development to one belt one road program. and china, he is leader for life. like him, don't like him, hate what is going on in hong kong, doesn't matter he is going to be there for a long time. we can rely on him to basically do it he says. as long as you are not taiwan all the other count

. >> some companies are hedging their bets, hedging against possible delisting from u.s. exchanges. there is this newfound pressure from chinese regulators when it comes to data security, data privacy. to what extent do you think the didi probe is going to speed other companies upcoming home? >> the regulatory environment is becoming more focused. the data side, the privacy side come of the national security side. those were not positively focused as much. it is something we anticipate. we see the global environment gets tighter. data privacy, data security. that is why we are building up an effort in europe. the u.s., too. i think as a company that operates globally, you have to be prepared to address these issues and the regulatory oversight. >> tesla seems to have run into some issues in china whether it is recalls of nearly all vehicles in china, software issues. does the timing seem right to build your war chest and gain ground? >> people are asking us because we directly compete with tesla. the result is we both grow quite well and tremendously. ultimately, having the competit

problem with gold it has massive volatility in a historic rate of return of only 5% is a terrible hedge against inflation, if you want to stay up with inflation have high-quality short-term fixed income historically if you want to be inflation which most investors need to over the long run inflation clocks in at 30% in equities 70%, long-term equity, short-term high-quality fixed income and on the dips market crashes 20, 30, 40% sell the fixed income push herself to rebalance and by the equity whether low, it sounds easy but it's hard to do emotionally and intellectually. jackie: it doesn't sound easy it's a lot to take in as a volatile environment and we certainly understand that when we watch the market and we think about the growth in general and go from here this is been a summer of reopening and we expect gdp to come in higher than it was 6.5% annual rate, it's not what wall street was forecasting we talked about the risks, the delta variant, inflation, your thoughts on where we go from here gross wise it seems i can become the issue of politics, how we want to deal with the risks,

that is where hedge funds offer an interesting alternative.ternative to bonds and generate a decent return. it does not have to knock the lights out. anna: preoccupied by inflation from a client perspective, what about the latest movement in the market in china? i do not know what conversations you have had about the turbulence. are investors changing priorities? getting nervous about chinese exposure? luke: i think there are a lot of questions going on about what they have got. we have a valuation focus in the firm when we look at stocks, and that has led us to avoid a bunch of names in china which the valuations were extremely high. those have been the thing the chinese government is picking on, so it is the most overvalued stocks that have had the bad news. those are things we avoid generally. we have had a week watching the carnage and not being caught by it. we have a lot of client questions about what led us to avoid it, and i think it is impossible for investors to ignore china. if you are a global investor, it is impossible to ignore c

what's the best hedge?rms of the balance of risk, we are in a black box when it comes to how fast recovery will be. what do you recommend for clients? >> a couple of things. when it comes to the inflationary measures over the long-term, equities and growth assets are very effective to hedge against inflation. over the near term, when you get those surprises, typically we will look to commodities to give a direct hedge. you see that coming through for the energy market. we look at equities, not just public equities, we are really thinking through the exposure. when we look at the international market, particularly in europe, they have less concentration and technology. that's why they have not done as well but they have gotten more exposure to industrials and materials. those more typical sectors of the economy that help provide more of a cushion. jonathan: where are you on u.s. versus international right now? we have bank of america this morning saying recovery is done in europe do you agree? >> i do not ag

not only does the cash level go up but you may take a hedging position. might actually hedge yourself by going long one of the proshares short products that gives you protection to the downside. charles: right. >> would you consider yourself long or hedged in that position, right? that is ongoing risk management opportunity and so i think the question of that is, you have to remain dynamic, however you define being long. am i always long stocks? yes, i'm always long stocks. i'm not getting to the point in my life yet where i'm throwing everything out, right? >> yeah. i'm always long too. have been for a few decades. listen the market at record highs. let's face it, only a little bit more than half of the s&p is above their 50 moving average. russell up less than the 50 day moving average. this is one of the most deceiving rallies i have ever seen. is the message when you see something like this, does it mean get defense sieve or do you see buying opportunities when it is stupid like this. >> i think that is a very important question, charles. i'm right wi

hedge funds are trading the market, on average already sitting on are at record levels of leverage.where is the advantage in this situation right now? we're looking at that. >> so there are some catalysts to look forward to, earnings, right? morgan stanley pointed out to hedge fund clients that the bears are worth listening to when it comes to realizing expectations are skyhigh. earlier this week, they told hedge fund clients that sentiment feels shaky at best, despite the second-best first half since 1998. if you look at hedge fund performance, you can see them up on the year, up about 10%, 9%, but still trailing the s&p 500. now, investors are thinking, wait a minute, are all of these leveraged returns? leverage is sitting at record highs, we have already seen some debacles earlier this year. this is not bad news across the board, it is good news for the stock pickers as we see divergence continue further into the year. and we will see who is the winner in a couple months. is there more room in the reopening trade at the end of the day? is it better in europe, asia, or will the be

she said that bitcoin is not a hedge against inflation. it is a hedge against the entire b up monetary system that is true of crypto. currently, crypto currency is the hedge against the fee up monetary system. the us digital coin a us, you know, federal back digital court and c, b, d, c is just more of the saying fee on currency. it doesn't change anything as it affects anything. so when jerome palette sitting there looking into his computer, so it's such a nerdy way. right. and he's like, oh yeah, this will absolutely fix all the problems. we don't need stable coins. we don't need bitcoin. we don't each other. once we have the, the us back digital know we need them because we don't trust the us back to anything right now because it's worthless, it's devalued it's abuse and it's corrupt and the point, the promise, the idea behind bitcoin in the beginning, behind all crypto currencies, was a promise to break 3 from a b r system that merely declares its value to the force of the us military to the force of law enforcement and the i r s. that

alden global capital is a hedge fund.ity at the top of the lipstick building. and it's a small group of folks who understand financial markets in really sophisticated ways and are able to invest large amounts of money in businesses that they see as struggling and they've got a business strategy to milk profit out of those companies over a period of time so that their investment makes sense. it's all just, you know, cut and dry capitalism. it had to have been after a previous layoff starting to look at well, who is this alden global? um, hey, they own all these other companies. whoa, they just bought payless. they just bought fred's pharmacy, you know, the some retailer on the east coast. and those were both near bankruptcy. what happened? holy cow. all the money's gone. and now th're shutting those things down. from the outside looking in, they have little faith that a newspaper like the denver post, or their other properties can actually increase or maintain their revenue if they spend on the product. this is the busines

caroline: he just said don't use gold or bitcoin as an inflation hedge.ard are you when you look at crypto on a balance sheet? >> i think it is insane. i think it is absolutely insane. even if you think bitcoin is the place to be, you have no business as a company putting your cash balance in bitcoin. i can't believe a board of directors can be allowed to get away with that and safe we are doing a good responsibility. i just don't understand it. caroline: jack dorsey and elon musk paying attention, i am sure. thank you so much. great spending time with you. romaine: just a reminder, you can subscribe to our weekly podcast. you will find all the best conversations we had on the show. great stuff. you got a podcast. joe: bloomberg technology is up next. this is bloomberg. ♪ (announcer) back pain hurts, and it's frustrating. you can spend thousands on drugs, doctors, devices, and mattresses, and still not get relief. now there's aerotrainer by golo, the ergonomically correct exercise breakthrough that cradles your body so you can stretch and strengthen your

it to the private sector that needs to hedge it, that causes a volatility shock that's the part that i'm saying is unavoidable this is not about expectations this is about all of a sudden barclay's mortgage desk has a bunch of risk that they didn't tell before. they tell the credit desk about the risk and that's how these risk off shocks occur. >> you have that inside perspective and about what is playing out in realtime. barry, appreciate your guidance today. thanks >> thank you >>> speaking of the bond market right now, the 20-year bonds just went up for auction how did it go off, risk? >> you know what it did not go off well i gave it a charlie minus, a c minus. it could have been a d plus and i'll tell you why. it's 24 billion reopened 20 year we're adding a new issue from a couple of months ago so technically it's 19 year, 10 months the yeield at the auction, 1.89. made right before 1:00 p.m. eastern was 1.875% so at 1.89, it priced higher hider yield, lower price all the actual metrics had the bit to cover, directs at 18.9, these are all better than 10 auction averages dealers

if anybody needs protection, it seems like the hedge funds. >>> coming up, we're pulling trade it or. we'll give you the games plus gambling stocks going bust thy they're pulling a bad hand wi investors today don't go anywhere. much more "fast" right after this in your hands? yeah (laugh) keep your downstairs dry with gold bond body powder. the world's first fully autonomous vehicle is almost at the finish line what a ride! i invested in invesco qqq a fund that invests in the innovators of the nasdaq-100 like you become an agent of innovation with invesco qqq - [announcer] if you've tried college but never finished, snhu let's you transfer up to 90 credits like you toward your bachelor's degree. - [woman] it doesn't matter how old you are, you can do it. you can finish. - [announcer] finish your degree at snhu.edu. >>> welcome back to "fast money. the s&p 500 closing at a fresh all-time high. big names hitting records. we thought it would be a good time to play a game of -- >> trade it or fade it. >> that is right trade it or fade it. the all-time high edition. we kick it off with es

taylor: with those technical levels, i was reading a story that hedge funds were still short when you are thinking 20 or 30 years out. i was looking at a chart of 10 years and leverage funds are long on a 10 year. are we still doing a short squeeze? how much longer does that last? >> from the numbers i have seen in terms of the speculative short position, they have really started to take a backseat in terms of where this is going. i think a lot of it has to do with the fact that we were priced -- we were fully priced in the equity market for the full reopening. people were under leveraged to safe assets because there was not whole lot of pickup. there were trying to get a cup in other places like a high-yield. now that we see there is more downside risk then we had thought, are starting to say, even though we are getting negative real return on treasuries, let's reallocate some of our money back into the treasury market. caroline: we get plenty of data this week whether it be on the housing market, whether it be on earnings season. are we destined to keep on crushing lower in terms of

hedge funds and the biggest asset managers in the world. so what can we look forward to?nvestors are looking for a story to hang onto. there is still a cost control question. the coo of morgan stanley today really try to make investors focus on the long-term. while also investing in europe with acquisitions and technology to focus on the longer-term competitive story. haidi: when it comes to the broader economic story, how much uncertainty is over recovery? >> that's a great question. it's not that these long books are not recovering, the better question is, the consumer, how much are the actually borrowing to grow those loan books once again? bank of america, j.p. morgan, they have faced harder times in their net interest income so revenue related to lending, you do see divergence, and that is when it comes to high net worth loans versus the rest of the consumer book. we are seeing a really large jump at j.p. morgan, goldman sachs, and bank of america when it comes to global wealth management and u.s. wealth management, but not the same story when it comes to the broader

it doesn't seem to have earned its pot as a hedge yet it's trading like a tech play. >> we're showing the dow and bitcoin and the price action is so similar on a day like this. we'll see you again soon we appreciate it kate roony with fresh details. >>> still ahead, we're monitoring the sell-off. we showed you the markets. crude is down nearly 8% now. an ugly day in commodities for copper, as well, look at that down 3% goldman's jeff curry said copper is the new gold. >>> plus, will dropping rates hold up the home builders? those names are holding up about 1% in the sell-off today and as we head to break, take a look at tech the big names are also struggling netflix is the relative outperformer and briefly turned positive ahead of a key week for earnings back in a molt >>> welcome back we'll drill down on two corners of the kmod any space. oil quickly plunged from 12% from the high. it's near to $66 a barrel now. all of this after opec plus members over the weekend reached an agreement to increase production starting in august. you might say, all right, it's an oil-specific story. but

these hedge funds are completely not accountable, and we're just adding more more to them. totally stabilize that global economy. you need to protect yourself and get inform. watch. she want to hold simply real thing, a little phone. wedding, a little girls by susan. well, the girls can little to go see me when you have this week. when you have a meeting in the room, initial pathetic female girl dispelled. i'm the one. let me come for that was 1000 me me and i'll start with you soon. this news i was looking here when you mentioned became illusion. this little thing. and then on the, on the financial young hoody an illusion you lose, you could shoot it to the lower problem with the news. so maybe people devastation and destruction. major cleanups on the way along with intent, search and rescue f herself acute flooding in germany and belgium, more than 100 people are dead and many more missing cobra loans. the sicilian region of italy in a poverty crisis and all throughout his war and the changing seasons will be even more challenging for local communities and a return to rat

but if you own businesses that have income and see value -- have incumbency value, you can hedge.hat is more challenging if you're trying to bet on the short-term. jonathan: thank you. want to summarize a story that came out of the top of the hour. the u.s., u.k., and allies formally attributed the microsoft exchange hack to actors affiliated with the chinese government. other nations joining in that assessment, escalating tensions between the u.s. and china. dominic raab, the u.k. foreign secretary, this is his quote. "the chinese government must in the systematic cyber sabotage and must spec to be held to account if not." -- must expect to be held to account if not." tom: buried in the article is the linkage to that doj headline that we saw 45 minutes ago, in that four chinese nationals have been charged by the department of justice. this is a way bigger story than the headline blaming the government. no, this is about actual legal action. jonathan: how does this fold into commercial issues, investable opportunities in tech in china? opportunities of chinese tech firms being in