i'm michael santoli at the new york stock exchange. stitch fix ripping higher today up near 30%. the company joiningw wayfare and etsy some of the best performers on the retail etf so far this year, so are these new leaders of retail worth a buy mark newton from newton advisers and aaron gibbs from s&p global are your "trading nation" team today. welcome to you both. erin, customers seem to be attracted to this group. investors think they have fundamental momentum any of them make the agreed for y -- grade for you >> etsy. it hasn't seen the super decline from q4. earnings stable as the stock price. the only one that's really growing. the others rebounding from massive defamation and hesitant to get in. it's the one that's growing steadily and has expanding profits. >> what do the charts tell us? >> it is a pullish move but well ahead of itself. it needs to pull back a buyer in the week or months to come but etsy just broken out a couple of weeks ago. 23 million shares and really a much better technical chart than stitch fix at this time. my thinking, you can buy current levels a

michael santoli, ahead on "power lunch," all over the markets today. bouncing back off the session lows shares of tesla under pressure what's dragging shares lower to the tune of 3.6% and making money. john hancock with a socially conscious today when "power lunch" returns >> and now, the latest from tradingnation.cnbc.com and a word from our sponsor. >> one mistake that many traders make is trying to pick the perfect enterprise for a stock they'd like to own here's something to consider why not just buy part of the position you'd like to have? that way, if the stock goes down, you'll have an opportunity to add additional shares at a lower price and improve your overall cost basis i'm ndray frederick and schwab is the better place for trader ? . >>> hello, everybody i'm sue herera here's your cnbc news update at this hour. first lady melania trump visiting tulsa's dove school of discovery described at a school where the curriculum includes character development. she visited three separate classrooms the next stop on her be best tour is a tech company

i'm michael santoli. the biotech etf tracking for the best quarter since 2013. is this the beginning of an even bigger breakout or maybe a chance to lighten up joined by craig johnson and john, point view wealth management craig, obviously, this group accelerated in here. it's often a kind of gauge of risk appetites by investors and traders. is this the kind of rally that can be trusted >> mike, i think it is and a lot of investors are trying to play catch-up at this point in time the chart of the ibb, you can see a classic bottoming set-up here this close suggests we're going back to the old highs. we still see decent u side hepse to go. high as 13% higher so we continue to like the ibb one of the names that looks pretty good to us is regeneron a good risk and reward on that, mike >> is biotech looking attractive and the sector fund the way to play it? >> i think the health care sector, the long-term fundamentals are really strong, right? you have an aging growing global population to put a lot of utilization in general and biotech clearly the fastest growing s

here with their takes are michael santoli. if you are coming all the way here -- >> and first up today, the dow transports are riding a ten-day losing streak on pace for the worst week since december. we haven't had a nine-day since the financial crisis. here is the performance just in the past year. american down 41%. >> and it has mostly been airlines. the streak is definitely pronounced. the fact that you can go down ten days and it is only four percent off the high. it is not as if it has been plunging every day. airline is a drag. fed ex and ups have been weak for a long time. i wonder if it is the market -- >> i don't understand. what is the problem? because they have people peeling away, using u-haul vans? >> the returns of all of this high volume get it to me now, the burden is falling on them perhaps. >> we will talk more about this on a number of ways. we have american ceo coming up on power lunch. we will talk about the fed ex angle of this. let's talk burlington. shares are plunging on a mixed earnings report. they

i'm michael santoli at the new york stock exchange. chipotle red hot up nearly 60% this year and sitting at highest levels since 2015 after a hot streak, should investors think twice about getting in right here? frank and erin gibbs are your "trading nation" team today. it's not every day you see a big stock that's up 60% year-to-date, 80% since december and three or four months double over the last year but still below where it was 3.5 years ago. where does it leave you on a tactical basis on the chart? >> i think it's safe to say the stock is extended right now. we could have said that early as january. breaking up at this point. 40% from the lose and then now 80% from the december lows that stock is performing the head and shoulders pattern i think at that point, at this pace, the stock likely there and 86, second highest level we've seen in entire history going back to 2009 stocks nothing wrong pauses, take advantage of that and weakness >> all right relative strength. basically showing momentum against its own history. erin, i gue

i'm michael santoli at the new york stock exchange. time now for "trading nation." transports underperforming the markets over the last week down 7 at the last 8 sessions. could this be a warning sign for the rally or the economy let's bring in matt nalee and erin gibson to weigh in on that. matt, i mean, transports sometimes invested with some significance on a technical basis. what's the pattern tell you right now about the forecast for this group or the markets? >> right now, we have to break it down for the groups within the transports because we are seeing weakness in the airline stocks down 18% from their 2018 highs andrew sork down 13% but railroad index is testing its all time highs so, you know, part of that has to do with precision railroading, helping their margins and things and economically sensitive group so if this group can break out in a meaningful way, it should help the transportation turn back around and move higher which would be good for the broad market if they roll back over, like they did just before the correction of early last year in 2018

i'm michael santoli. it is time for "trading nation." this weekend marks the ten week anniversary of the s&p 500 financial crisis low while stocks bounced hard off those debts, out in the group. bank of america and morgan stanley, among those stocks sharply off the pre-crisis peaks well before that 2009 low. frank kapalari we're talking about big important stocks on a basis are down in a bull market, any of them here worth betting on >> hi, mike. i like morgan stanley but if you go back to the march high of last year, stocks down 40% down trend the entire time really nothing to like about that, but the stock has been through this before. a chart, from '09 to 2012, down 70%. 2015 to 2016, another 50%. both times, able to make higher lows and then those rallies with a wealth of strength the financial sector etf i think now, stocks are about to test that line again if it could bounce, it could trigger a rally that could play out on a relative basis. >> the fundamental case for morgan stanley, for example, given where we are in the cycle and

i'm michael santoli at the new york stock exchange.heck out shares of snap spiking today after an upgrade to buy from long time skeptic rich greenfield at bge&t still down about 35% from the 52 week high. can shares continue to snap back bill beiru and mark tepner, your "trading nation" team today. this stock has been all over the map, bill. it's been above $20 in the last 13 months. been below $5. now here it is above 11. where does that leave you looking at this chart as a potential opportunity? >> reporter: i've said it here before do not chase a position on a fear of missing out. although snap has had a good little run here, it faces tremendous resistance with the line with the high if it closes out there, the 50 day moving average and a tailwind that could take it to 14 to $17. you've got to be cautious. a failure here could get the market back to $7. stick your game plan and don't chase it >> mark, the market i guess with this rebound is suggesting that the company has a place in the social media eco-system. what do you think? >>

i'm michael santoli at new york stock exchange tesla backed up underperformed rating and slashed price target but the rest for the most part on board average implying 30% upside. who's right? gina sanchez are your "trading nation" team today ari, this stock is sagging down towards the lower end of the long standing range. is this an opportunity or would you stay away? >> this is one we've been on the sidelines with, avoiding both on the long end and short side, given how directionless and choppy it's been that's still the case. looking at the chart, it's paid to by when it's ugly and sell when it starts to look god wi and then considering how bad it's performed, in terms of levels, $250 is a big support range level. 360 is the upside there. you can see the flat 200 day that exemplifies that directionless action but if we allocate towards stocks that trend, this isn't one of them. we're on the sidelines >> gina, this is a company that's dealt with, you know, some doubts around its ability to produce enough, to meet it targets for years now but now some others. >> you look at the rvc ana

i'm michael santoli at the new york stock exchange. time now for "trading nation."nvestors taking a bite of apple today. shares rallying after bank of america upgraded the stock to a buy. raised the target from 180 and noting head winds in the services business as well as hardware have receded. with oppenheimer, gina sanchez, to weigh in. a positive move today. obviously, the stocks have been in repair mode still a long way to the highs though how does it look to you? >> i would say the evidence is mixed, speaking in terms of the near term action but we saw positively based on the long-term and the key long-term positive for us are the top down tail winds from what we see as a broadly and relatively strong technology sector. we continue to think that a premium gets placed on these high growth companies in a low growth world speaking in the chart of apple, you can see the slow sideways that speaks in terms of the mixed near term. the next incremental positive in terms of the trading would be a rally above 185. that is the stock's november gap. >> all right and gina,

i'm michael santoli at the new york stock exchange. tesla stock under pressure today. to kbrimpress the street 20% shares down this year. michael from fios advisers i'll start with you, craig with how the chart looks for tesla, for so long, the stock has toggled and a good deal below that now how's the set-up >> so mike, i look at the set-up like this and the fundamental story, confusing you've been stuck in a trading range for 2.5 years. 245 on the lower end and 390 on the upper end. backing and to me, it looks like we'll have to come back down and retest the price channel confirm it to do any sort of tactical trading opportunity with these shares so i'm waiting for it to pull back and retest that level >> and michael, i mean, could you get comfortable owning this company? it's really the same set of issues can they produce enough, is there enough demand for the existing models and can they become self-financing over the long-term? >> i can get comfortable owning it right now with the model y being unveiled last night being a yawner, and they're really struggling with

. >> mike santoli at the new york stock exchange, thanks, michael. >>> it is time to take a look at some of today's upgrades and downgrades. fedex was downgraded to neutral from overweight at jpmorgan. the firm cites rising labor costs andotential pressure on operating margins. was the price target is $202. the stock fell about 3.5% to >>> sony was downgraded to hold from buy at jeffries. the analyst cites concerns about a peak in game profits. sony'sinability t exit the smartphone business. the price target is 50.70. the stock foal $43.28. >>> dollar tree was upgraded. the analyst cites a recent meeting with management which increased his cfidence in the company's plan. the price target is $117. the stock rose a fraction. >>> this shrine of hope has been built tside this now closed gm plant that has president trump tweeting. i'mrank holland, i'll have local reaction to those tweets and the closure coming up >>> there are reports tonight that the fbi has now joined tal crimnvestigation into the certification procesof the bo 737 max. as first reported by "the seattle times," the fbi's sea