tv Fast Money CNBC July 31, 2014 5:00pm-6:01pm EDT
my thanks, to the panel this afternoon on a busy and important market session. we will see if mel lit sa slee ready as well. >> we both dressed for the market's tally. we have lots to talk about given this massive sell-off. we are going after traders as well as every one of our guests, what are the buying opportunities? there are some in spaces like biotech, social pedia and the industrials. so we will get it all ahead. >> straight over to you guys. >> thanks. fast.starts right now. i'm melissa lee. today the dow erasing all of the gains, the s&p 500 seeing the biggest losses. our traders are dan nathan, steve grasso, brian kelly and guy adami. the s&p, nasdaq, russell all down more than 12% t. dow down more than 300 points in one of its worst drops of the year. take a look at this the volatility index surge more than 25% today as investors pull up
corporate protection. after hours movers were all over the breaking news from earnings tesla, gopro, expedia, linkedin, whether it will continue in tomorrow's session. groso, what did it feel like on the floor? >> there was no panic yet. few look at it, we didn't really have a tremendous sell-off yet. but it was just a mindset. we have that buy the dip mentality. i didn't see a lot of that going on. you could have taken your pick what the market was selling off on, was it europe? was it argentina? russia, young with the food scare. you could have taken anything, samsung, lufthansa. you had so much going on that if you were a seller, this was a great day to be bearish on the market. the key is, whenever you saw those downdrafts, those guys were still covering. i don't know who is ahead of tomorrow's jobs number or not. this was the first time you had rates, russia, geopolitical and rates and earnings all in one basket.
>> but i think that's probably why it accelerated here. we do have a big number tomorrow. you have a market up significantly. if you are worried at all that there is going to be some weakness or anything tomorrow. i think the jobs number is a tough number. if it's too hot, you get rates hire, if it's too weak, everybody is saying, wait a second, maybe the economy is sputtering again. i think it's got to nail it. absolutely nail the consensus, otherwise, this market does have roughs. >> the events, it's funny, back at the end of june, we talked about the potential for there to be an outside month. there was a couple days left in the month. there was a chance of an 1860. dan said, for the, it's true. not enough time. too much of a holiday mark. that proved to be correct. this move today is what i thought i was going to see the end of june. with that said, the most interesting thing to me today was the russell. the iwum. we didn't have an outside month in the s&p, by we did have an outside month in the russell. i have been saying for a while,
i thought we traded down to 108 in the wim. if you breach, we have to worry is the russell first or the transports? >> you think these dominos are falling? >> i think if you look under the hood the breath has been very, very poor. it's been that way for weeks, it's not just my breath. the russell 2,000 has been weak all year. it made an epic double top. the 50 and 200 moving averages as well. guy mentioned 1860. that is the 200 day moving average. the s&p has not been below that since late 2012. you know what, it just broke the 50 day. these are momentum indicators. it shows momentum is waning here. so to me 1860 is the 200. >> that itself next level. to guy's point, i thought it was too tight. we will get there at some point. you mentioned the vix up in one day. we made seven-84 lows recently. just remember the, people, we
have not had a sell-off in a year-and-a-half or so. so to me, there are a lot of things brewing for a potential of a five, six, maybe a '0110% sell-off. >> what is interesting is you have the sell-off today the bond market actually sold off, too. so to me, that was probably the most significant thing. most of the times we have these riskoff events. yes, it had to bounce off the lows. you are seeing higher rates. that's a warning sign for stocks. >> that could have things accelerateing. >> the context yesterday, it had a 1-plus content. even despite that, it didn't -- >> so let's push back, because i will. i think the bond market responded to the gdp number. my take, it was a lot of that number was a, we had a terrible report last time. i think we had a little correction and you had a tremendous inventory bill. which if the economy is doing well, that will be fine. if the economy is not as strong as i think it is, i think maybe
companies top tick. they built in inventories at the exact wrong time. i think it's a misinterpretation of what people thought to be a very strong gdp number. >> circle back to the technic also, fine sthirt where it closed out. 1910 is the level you are looking at. before you get to that 200, since that taper tantrum that we all saw may/june last year. we crossed over the 50 and 100 day five times. this time we need to check it to really have a quasi-correction. >> one stock that was not impacted by the sell-off today. el pollo loco, it was 12% amidst the red. with us is the pan that said el pollo blowout last friday was the market top. -he right? dennis gartman, it's good to see you. this was a new high for this hot ipo. so what does the mean for the markets at this point, dennis? >> well, the only reason i brought up el pollo loco, it seemed so highly reminiscent of
the types of names. it's a great company. it is doing well. i want to say nothing bad about el pollo loco. what i want to say is the fame is rim says e necessary sent of the psychology in 2000. we had so many ipos with all sorts of strange fames the public has been enamored of these things. aspy good friend says, risk happens fast. risk has happened very quickly. the numbers that i've heard bantered about i think are very good. we will see the s&p make its way down probably close to 1860. 1875 or so. that will simply take us back to major trend lines. i see nothing wrong, the bull market hasn't ended but a good solid bear market predicated upon i think stronger economic environments, which means we're using capital that had gone in the stocks, maybe going into plant equipment and as dough just said into inventory is the reason for today's inquiry. it's very true. >> from terms of risk happens
fast, let's drill down on that, what were the risks that existed today versus yesterday, dennis? >> nothing fundamentally has changed. the psychology has changed. that's all. people have to understand that markets get driven by fundamentals in the broad term, they get driven by psychologicals in the short term. the psychology simply changes, mel. that's all that happened here. has the economy changed suddenly overnight to manifest itself in a sharp decline in stock prices. no. it never happens that way. it's just that the psychology changes, you had margin accounts that were terribly high, probably the highest level i wish i had it in front of me. i had it the other day. margin accounts are as aggressively extended in many years. >> that sort of things happens. the psychology happens, characteristic happens fast, economic changes much more slowly. >> so are you still neutral on stocks and u.s. equities? yes. >> yes. >> where do you stand on wti now it's below 99 or so?
>> oh, i think as i'd like the say, with the advent of fracking, what's going on out there, this is very esoterric. there is a gob of hundred crude oil out there. i think we will find out how much 85 or $80 crude is out there. take a look at what the term structures are doing. the front end of the futures has been even on up day is losing relative to the backs. brent has gone into a contango, there is a sur-fight, a surplus of crude oil in the world. tankers are moving umm. they're moving around. there is a lot of crude to be found. there is gob. a very eso12er terric statement. we will see how much $80 crude is up there. >> dennis, thank you for your time. dennis gartman of the gartman letter. let's trade ahead of tomorrow's jobs report. >> is this your own adventure?
>> stronger number? weaker number? blps to the market? you choose the. >> i like that. a stronger meaning the employment situation seems to be -- >> better, yes. >> i think the s&p bounces. i think to beak's point, it's a continued sell-off in the market. i'm still in the camp that the russell today was the tell, the transports will be next followed by the s&p. >> i think if we have a stronger number tomorrow, bonds definitely sell off. that's a problem for the spark. a lot of the financial engineering is based on the fact that companies can borrow very cheap. the that dries up, you have a tough time making new highs. >> i think guy is right here, if you see a better number, people will think overall, things are getting better. you'd rather buy a market that's getting better. i i do think the sentiment to dennis' point is wimpering out. >> i see few scenarios where the market is up baked on the
number. very few scenario, s&ps down 3% from all time highs. i don't think this number. i think whatever comes out that's positive for the economy is in there. i want to make one more point, though, about the nasdaq 100 this to me is the single most asset i believe if public equities right now. have you the nasdaq 500. four names make it up. intelli, microsoft, apple and google. if you want to talk about sentiment. there is overly positive sentiment right there. if those names start to crack. apple is a fame everyone has been comfortable w. it's going to 100. iphone 6 everything is fantastic. the stock was down 2.5%. if you get people out of the crowded trades, nasdaq could be down quickly. >> we had paul sankey on yesterday. almost everything he talked about came true today, weakness in ti, strength if brent. a couple stocks that went well. dan nathan. >> that's very, i like.
a sell-off. he's too busy with the sell-off le forgot his tie. >> three stocks to buy coming up. plus one chart that broke through a key technical level and coiled for show day an ugly move ahead. des e tesla and linkedif and expedia. we have the latest details from those reports and how to trade them next. .
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tesla volatile in after hours trading. the electric car maker trading lower. let's bring in senior research analyst who joins us on the "fast" line. ben, great to have with you us. it looks in jen like good quarter. although we talked about expenses rising the third quarter, which is what you alluded to. that was a concern of yours. >> breaking up into the three different parts, for the quarter, a good quarter to be in the top line, the bottom line. deliveries came in ahead of the projections were. productions were ahead of their forecast. if i look ahead to q3 there is
some weakness. i think the biggest ting that stands out in the report is they say they should exceed 100,000 units ahead of next 84. it's ahead of where we are for federal government year's deliveries. >> would you recommend people buying this weakness? they're also talking about the gigafactory. that doesn't seem to be alleviating concerns. >> yes, we'd be buyers on the open here, aggressive buyers. i think footballs will have to come up next year and for q3. i think next year's numbers override q3 numbers. the gigafactory i think produces callous the rest of the year as we get new partners announced and the selection, they talked about the site selection in nevada. there has been word of arizona as well. the big catalyst, too, is the model x. they said they would have a
production model ready next week. we start seeing them in coming months. >> do margins, to stay on the gigafactory, do they explode and to see exactly the efficiencies. where are you factoring in? if they do explode, obviously, that's what tesla would like us to believe. what numbers are we talking about as far as upside for tesla? >> so, one thing in the quarter i think is very positive is we did see a step-up, a 20% gross par gins. overtime in that zbig gigafactory, they internalize tear battery productions, i think we could get close to 40% gross margin on the model x. the gen 3 will carry lower margin, overall north of 30%, i think that's powerful. >> ben, thanks so much for phoning in. we appreciate it. all right. what's the trade here? we were expecting a big move in tesla, according to options market. >> 9%. tomorrow, let's see where it is
at noon. i would say this about tesla. the stock is really difficult. you almost have to take a leap of faith up here. i think that's important to figure out. they have a $27 million mark cap. if you are not worried about valuation. grasso mentioned the gigafactor. this company can change the world, if we know. there is twitter that has a $27 million park cap. what would you rather figure out 20 years from now? to me, there are so many investors would love to see this stock go down 20, 30, 40%. they will say i'm owning this for my grandkid, i think it's hard to do. if we will be in a more volatile market. >> 20 years from now, twitter is better tan tesla? >> bk, okay. >> i'm trying to understand. i'm thrown off the high. come on. >> it's a current erie dick lus valuations in the market. this is the one i can't say 220 is the level. >> as the tesla conference call
gets under way. we'll have more on that. meantime, gopro, the camera maker reporting the first earnings, the conference call just getting under way. seema mody has the break down. >> reporter: the conference call did kick off. we have been talking about content as well as where it's seeing revenue. they say we see a tremendous quality content generated by our users n. in the second quarter, 38% of sales came outside america. he cited japan as well as europe, can ceo nick woodman said a number of gopro videos have been published, up 60% year over year and it saw a strong quarter on pots's day as well as father's day, gopro ceo said it's gopro app enables thaem them to stream content along multiple plampls, on pinterest
and x-box 360 with microsoft generating more than a half a million downloads. focus if on how it's trying to broaden its reach and indicating the high interest in content created using the gopro devices. i'll get back on the call, once i get back,ly have more in a sec. >> thanks so much. talk about throwing caution to the wind under valuations. this is the prime example of that category. >> this is a similar pattern we saw on facebook and twitter. gopro is trying to develop a social network based around the particular product. right now we're in the doubt phase, it doesn't seem like it can execute what wall street thought. i think you wait to the low 30s before you take a look at there and then they'll very that aha moment. it might be a quarter or two away, tow. >> gross par gins, very strong. you look at gross margins over year, 42.2%. up from last year. that's a great, what are you getting sec watching the video?
>> for the, i was saying, wow. that's a huge thing. >> it's making you nauseous, it's making me nauseous. >> anyway, go ahead. >> i love. i think it's a great story. i think valuations get in the way. it had a big day on a lousy tape. it's given back that and some in the after hours. i think gopro is the name. you will find the level. i want to enjoy this stock. >> is it a social media stock? >> no, it's a content company. they will make this transition. >> i disagree. >> it's going to be, i'm just saying. >> we should know that the ceo of gopro physical woodman will be on "squawk" in the street tomorrow. >> handsome guy. i'll give thing to back. >> maybe he will answer, how would categorize? content, hardware? >> no one ever does. >> excellent point. coming up, one sector tied close to the economy hitting nine-month lows in the session. the chart you need to see.
components, bed, bath, beyond, a couple more. they did have decent results, at a big pop. it's since given it back. to me my take away here is that there are sellers here, this is one of the big pillars of the economic recovery. it's not acting well. so again looking under the hood, there is one to keep an eye on. >> again, this is happening with rates of 2.5% him i imagine if rates go to 3.5%. >> beaks, you have to remember, when you saw the temper tantrum, all these stocks got hit. there are comps. >> the actual underlying fundamental also of these things are not that great. i mean -- >> it traded below take. >> zillow had a report last week houdzing is rising affordability are rising. people are not buying as many homes. the r & r trade is over. >> which one are you in? >> kb homes, it's trading below tangible. 16 should be the stock. i'm long on the name.
>> linkedin in soaring. julia boorstin is up. >> success user footballs, getting the existing users more engaged, talking about growing their customer numbers and getting each of those customers to pay more. possibly continues to be a growing force ford linkedin, responsible for 45% of total traffic and weiner says mobile engagement is growing three times as fast as over allunique sister, international with 4% revenue coming out of the u.s., weiner announced china is off to a strong start since launching in february. china is now the fastest growing market. as for guidance, weiner talked about where that growth are come from, saying the growing portfolio of linkedin apps are working. today they announced a new sales navigator b to b service.
he says the advertising service should get a boost. melissa. >> julia boorstin, thank you for that. bob peck e-mailed us and said that was a huge reason why the stock was up a. nice call buy, by cyr adami. >> i queed myself up. it could have been a fricasee you would have been. >> fricaseed you. >> given what we heard from facebook. i like the story about linkedin, you can sayifies trade, pull the rip cord tomorrow. i think there is momentum. if the world doesn't go peer shaped, we flag a number of times. >> i like linkedin still. >> let's move to reporting earnings, starting off with expedia beating earnings. >> expedia performed well. it's up 14% year-to-date. they're putting all the pieces together.
they bought themselves a rent a car company or multiple ones to fit in with that. they bought themself travel agents that fit in wherever they need them abroad. i think all if all, it's still viable. i don't like these pops after earnings. use the three-day rule. next up, shares of sun power dropping on its earnings release. >> it was their guidance that really hit the stock here. they got it $1.10, $1.40. the street was looking for $1.31. i think the expectations got ahead of themselves. i think around the 32 bucks is where you look at this again. coming up next, a conference call officially taking off. we will bring you the conference call from elan musk. later, the markets sank across the board. one guest says several moment item stocks are right for the buying. we unveil those names next.
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today it saw a drop of more than 2%. where does it go from here? tesla's conference call is starting right about now. we will bring you the latest from elan musk as we get them. we start, though, with a broad-based sell-off in the street today. cnbc got a surprise call from warren buffet phoning into power lunch as a part of a special make a wish foundation woes wish is to work on wall street. he had this to say about the sell-off. >> i like anything, if they mark down hamburgers, if they mark down underwear, anything i like if it's parked down. the lower prices go as long as you foe the companies you are investing in, the better it is for a buyer. downed days always make me feel good. >> it makes him feel good. he can boy things he wants to buy at lower price, we want to go around the horn and see what our traders think is worth a buy.
dan. >> verizon had a turn around this week. it was up on competitive news. it sold off. this is a fame i was long about 10% lower. sold at these levels in the spring. if it continues, it's got a four-plus dividend yield i think in this environment where rates don't seal to be going higher. all the revenues come from the u.s. this is a fortress america trade. >> let's go google. you can talk about google and the hidden gem with youtube that no one spends if you have time focusing in on. look at the acquisition, drop cam, nest, all these acquisitions, goggle fiber or wifi. that will be everywhere. let's go back to the bread and butter. they still own about 70% of search. when if doubt, stay with google. you got to add. >> generally, i do like to boy post-things on sale, especially meat and medical care. i can pay top dollar is whole food.
wfm. i bought it in the after hours being nudged, i think here you seen all the bad fuse wash out of the stock. they got a billion dollars buy back. i think you are fairly safe $36 is your stop. >> we were talking about what price action is. >> we were saying in the grown room. >> it's funny enough. it's not green, actually. >> it's not grown at all. >> it's actually ugly. >> whatever you want, guy, what itself the name are you buy something. >> blackberry, again, i give you kudos, you said the ibp, apple fuse, you said it was going to be negative. sure enough it was, it was trading 9.80. you said it will trade down to $9 bucks. you saw that today. it was a 50% correction in the to have low in the recent high. i think we are trading blackberry for the first time in a while. it sits up well. >> a lot of momentum flames will get hit hard, yelp, pandora seeing drops. which names should you bring in on these dips?
>> michael, good to hear from you. >> thank you for having me. >> let's start off with activision. >> activision is a misunderstood stock. they have three big franchises, skyland ertz, call of duty, all pretty ma kufr, skylander is two years old the others older. i think investors think they're do you to key klein. we are at the beginning of a gaming cycle. blizzard is doing really cool things with a free to play game called heart stone. i think activision will surprise the end of the year. i think you have plenty of catalysts coming up. i really like it now. >> the sec peck has been a stock over time it's been down a up canle times. it seems to come back. game stop. >> i was actually on this show about exactly a year ago. i think it was literally july 27th. the stock was about here. it rallied significantly higher. it pulled back.
that stock just dies, any time anybody mentions the word digital or digital downloads, it rallies every time they report. i think they will have a big quarter for july. they will have a huge holiday. they are gaining share if a growing market. yes, the threat of digital downloads is real. it will take share eventually. game stop will be out of business in then years instead of 20 years. they'll be around for quite a mile. >> michael, you and i got about a fight that day. you were very, very right. i give you a lot of credit. the other part, isn't there a chance that it's actually out of business much sooner than that when we think about the life cycle of some of the retailers like circuit city to your point there is 30% short interest for a reason? >> yeah, i'm actually being kind. i think the constant cycle that just launched is probably the last one we will see, nick. i think the next generation you will use a chrome cast or a fire device to check your pc to your
television. you will download or get them from the cloud. we will not buy consols. some people will buy pc games at the store. i think game stop has probably seven or ache years as we know them. they will have to re-invent itself. the company is reinventing itself by adding carrier stores, they're selling at&t phones pre-paid and postpaid. i think the pre-paid business is especially attractive. it carries out on the postpaid business, whole see. >> michael, thank you. >> thank you. >> we do have a fuse alert on gaza, let's go to bertha coombs in the fuseroom. >> reporter: melissa, the u.s. and u.n. are announcing israel and the palestinians have agreed to a cease-fire effective friday morning 8:00 a.m. local time. it is for 72 hours, but parties from both sides will travel immediately to egypt to negotiate facilitated be i the government of egypt to try to
facilitate an enduring cease-fire. but for now it is a 72-hour cease-fire to allow local people to be able to get supplies, like humanitarian cease-fire. the troops will remain on the ground on both sides. back to you. >> all right, bertha coombs, thank you. does that help at all, b.k.? >> i'm not sure. first of all, in terms of the market i think it has zero impact on the markets. i think the problem is people will wonder what happens after the 72 hours? a lot of these cease-fire versus lasted a lot longer than that. i wouldn't go trade on this move. big movers on the day, t-mobile off 7%. >> they were doing okay even before there was a bid from the company from ill add. their forecast was raised. so this one is always in play. i think are you okay buying t-mobile. i'd be a little nervous if one deal doesn't come to fruition. if have you the stock, i think it goes higher. >> this stock has not avon
participated in the last five years. it was good enough where you can own the stock. it traded down to levels we saw in '98 and '99. it gets a stop for the first time in a long time, this looks like a stock you can own. >> drop on herbalife down, dan. >> missing their first quarter since 2008. the story stinks here, people. listen the day after the result, the stocks flatlined. here it is, it made a new low from the prepresentation from last week. it's $2 away from a 14-di low. i think mr. ackman has a call here. he's running against some time. how he's positioning himself. i think it goes lower. >> yelp down 11%. >> i think their franchise is really if trouble here. you got several different competitions, not signing up as many businesses as they have in the past. so, yelp, you sell it down 11%. >> another big mover, apple, the stock falling off its rival samsung had disappointing second
quarter results. they had a stiff competition as some of the reason for this demand. what happened, guy, going to $100 bucks a share. >> 99.46. so split hairs. now what? let's play the now what game. >> since dan called for his game. i'll call for my game. the now what game at these levels in my opinion, steve glosso flagged eight.5 on the upside, you buy it on a break above 101 what does that mean? it means you are flipping a coin. save the e-mails. that's how you trade the stock right here. >> i totally agrief. i'm long on apple. i'm waiting for that level in the '80s. i also think you do blow through 100 to the upside. once you get that upgrade cycle. i think the federal government time around they're going to give under the circumstances something for it. i don't care if demand is not there for smartphones. the demand for apple will always
be there, heading into the holiday it's a buy. >> what is samsung telling us, there is saturation there? yes, it may be the mother of all uptrade cycles. it will last a quarter or two. then they need to deal with there ipad issue. they see declineing growth. they need a suite of services. >> growth, because pcs aren't dead, macbook was dead. it is actually going back. >> low single digit percent annual of tear sales. >> are you a buyer? >> yes. >> tesla's earnings call is under way. we get the latest from elan musk after the quarter. plus, how much sanctions is bp facing from russia? we hear from the vp coming up. much for "fast" straight ahead. you make a great team. it's been that way since the day you met. but your erectile dysfunction - it could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right.
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they're projecting at least 100,000 deliveries for next year t. question is how will it be split in elan musk said probably 50-50 with a fair amount of production ultimately headed to or a fair amount of sales ultimately headed to china. here's what he had to say regarding their expansion in china. >> into the number of stores by the end of next year. i don't have that offhand, it's probably on the order of 100 in china alone i'm guessing by next year. >> uh-huh. >> we are probably world wide i'm the owner of 300, this is i'm ceo for cartier. >>let put that into some perspective. they just opened tear first service center in carolina in the spring and that was in beijing and they're going to be up to about 100 by the end of next year. when you look at the model x, that is squarely targeted for
china, guys. because you are looking at a market. suvs are in strong demand and especially electric suvs because of the constraints regarding pollution over there. don't be surprised if besee increasing numbers of model xs once they start ramping up products federal government year for many of those to be headed over to china. guys, back to you. >> phil le beau, thank you for that. in steamy after hour session, tesla is off the low. it looks like there is appetite for the stock in the after hours. >> listen, i'm with dan on the one. it's a tough trade around 220let. you got to be very nimble here. if you put it in a drawer, come back ten years, you will be very fine. >> what if we don't want to put it in a drawer for ten years? this is "fast money"? >> it's hard because there is an "er" on the end. drawer is. >> 2 when the is the absolutely right. have you five different fakeouts over the last month, month-and-a-half. how do you trade it? i think you wait for a sincere
and visual breakout, which i think you get above 230 on the downside, it's at the level steve grasso talks about all the time. >> can bob dudley's company handle the geopolitical heat? >> that's a part of the gas business. we work if parts of the year a lot of people wouldn't go in. we go in and haven't missed a day of production in egypt or since we were if iraq. bill contributions from countries which we went into really in the middle of civil war so that's a part of the oil and gas business. >> plus, cramer will ask whether or not the ceo has spoken to putin, himself, find out what he has to say about that at the top of the hour. it's not just bp, total has exposure finally on its conference call. it acknowledged it is not any longer going to put any more ontario into novtek. >> you have to be careful of
these names, there will be taped bonds coming out. few want to play the oil space, i would go with some paul sankey mentioned, valero. vlo, that will help the spread of wti and brent better for them. >> a beautiful day for mpc. that was a huge run. >> i will switch gears and go to sheniere. if you want to play it, sheniere were the first once to markets with exports offshore here going to europe. so i would still stay with lm gvm i think the more the ramp-up talk happens. lng. >> politically, if things stay hot, brent stays higher, that brent is great. >> paul sankey mentioned marathon petroleum up 6%. obviously, it was a lousy day. exxon possibly they picked the wrong day to report. that was a pretty good quarter,
gopro still trading lower. seema. >> trading lower, cutting back a little bit, melissa. that might have to do with better-than-expected guidance. ceo saying expect a seasonally strong second half of the year with gopro with q3 results above consensus, 6 to 8 cents. citing the big opportunities. internationally they are in select markets overseas as well as generating the user content. capitalizeing on the content definitely a focus. melissa. >> thanks for that.
today it sent the vix soaring to the highest level since april. some traders are betting on more volatility. dan. >> they are. options value in the vix ran over two times average daily volume. most of that volume was if calls, which makes sense if you think about the asymmetric nature of the vix. it can only go so low and to the moon here. but when you look at the cart. you look at what's going on here, there was a huge trade, one trade bought 90,000 of the november 2130 call spreads. the break even is up about 23% on november expiration at 2169. i just want to show you the chart here. this is dating back to 2011 after the european crisis settled down a little bit t. break even on this trade is right here, where this has been topping out around 22 over the last year-and-a-half or. so i just make one other point, when you look at this chart dating back to 2012, there is five instances where the vix from the lows from the 52-week
lows moved at least 70%. in some instances, it moved as much as 100%. water interesting from the move, we are 50% off the multi-year lows. when you think off the low base that we were at, it is not a whole heck of a lot. you see the vix at much higher levels. that being said, it's clear to see these spikes have been sales and they basically have been lock-step with the mark selling off no more than 7%. so, in general, when you see the vix at 22 over the last couple years, it's been a good buying opportunities for equities. >> so i'm sitting at home, brian kelly. i'll listening to dan, what do i do with this information? >> well, can you try vix options, that's where i've made some.. i still also think if you get that explosion in volatility, just buy put options on the market. maybe the trip, maybe the iwm. you will be paying up for them, obviously, after today, if we're going lower, you are getting more roll tilt.
that's the way i would play it. >> more options action tomorrow and check out optionsaction.cnbc doak. today was an important sell-off, we lost our gains for the year and many averages. let's kick it off, grosso your thoughts on target getting a new ceo today. >> this was the main catalyst. there were names floating around out there. but i think this start of got caught into a back draft of overall selling in the market. it has been a tough year, a tough go for target. i think they're over that credit card issue for them at least. ceo, a new ceo i think leads to more upside buttial obviously, if the market sells off, this one will go in. >> we want to go back to phil lebeau pouzyreva from the tesla call. >> it's interesting, questions are coming up from the gigafactory. ground has been broken outside of reno for a gigafactory. elon musk said they laid the pad
for what could be a gigafactory. they are hoping to have a couple states run figure parallel. then he said something i'm sure people will pay attention to. now it's up to the legislature and the government to put the incentives in place. it is no doubt they are pulling for the best deal possible if nevada, texas, new mexico. this is a pretty shrewd move if you think about it. they moved some ground about and said think about it. you could have 6500 jobs coming to your state. we've moved some dirt, we're ready to go. now it's up to you to do the rest. i think we will see over the next couple of monthss, other states to jump to say, wait, we can do something for you. >> i would imagine. thank you so much. what happens tomorrow? we got your first move tomorrow right after this. ♪ when the world moves,
cars, they have a huge future. >> bad days for europe, it's good fuse buy srx. >> buy blackberry for the bounce. >> i'm melissa lee, watch foreman at 5:00 more "fast money." meantime, "mad money" starts right now with jim cramer. my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now! hey, i'm cramer him welcome to matd money. welcome to cramerica. other people want to make friends, i'm just trying to make a little money. my job is not just to entertain you but to educate and teach, call me at