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tv   Fast Money  CNBC  May 19, 2016 5:00pm-6:01pm EDT

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sales. watch the dollar index if that really starts to keep levitating, it's going to bring a lot of markets into a little bit of an easy place. >> and there is buckle, our favorite team retailer. thank you guys for joining us. rob cox, michael, that does it for "closing bell." "fast money" begins right now. "fast money" starts right now live from the nasdaq overlooking new york city times square, i'm melissa lee. tonight on "fast" a top technician says the market is do something it hasn't done in three years and it could have big implications. we'll tell you what that is plus, big box, big return, everyone is calling for the death of brick and mortar retailer, two are bucking the trend and could prove to be, get this, amazon proof. we'll give you the names and later, right now it appears that phil mickelson is in the clear but one event could land him in hot water. a top attorney will way in. first, we start off with the markets because for the second
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straight day, we saw a biggerly sale off that was followed by a big recovery as investors grapple. we're asking a simple question on the show tonight. how can you fed proof your portfolio if they raise or don't raise? guy? >> that is the question. you have to answer the question, do you think they are raising for the right reasons or raising because they boxed themself sboosinto a corner. i think the latter. i don't think because the economy is getting better. a lot of the data was in a word lousy. is that is, in fact, the answer you stay low in the bond market. a huge sell off yesterday and didn't perform that well today but i still think what is happening here is the front end of the curve is going higher. the back end is going lower and i think you stay with that. >> you're saying regardless of what they actually do, the economy is weak and therefore -- >> that's my opinion. >> right. of course. >> the folks at home have to answer that but that's what i think. >> grasso?
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>> was it real or reverse. xlu came back today. that's how you fed proof yourself. xou yield and hunt for it and that's where you stay. all along this course, that's what has worked. >> basically all most the same thesis as guy. raising for the wrong reasons. >> i thought they raised for the wrong reasons in december and painted into a corner. i said very early june was on the table because they have to stay away from the political cycle. >> right. >> you have to go with what worked. >> karen? >> i'm looking the other way around. i don't agree. i think they raise because the data tells them they need to raise. i don't think they feel like they have to raise so if you see them raising, it's because the data allows that and the combination not just being the economy, elsewhere in the world is part of their -- you know, goes into how they make a decision. so i think they will raise and i think they will raise for the
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right reasons and industrials and i think yesterday was kind of over done maybe to the upside. banks came back a lot up yesterday and back today. i'm hanging on to those. the one thing i didn't love today, though, was the chrysler truck story about them, you know, really talking up trucks for 2016. all that having been said -- >> so you're sticking with the thesis there is global growth. >> enough. >> enough global with the stories like industrials. >> yes, yes. >> i know you want to get to dan but why didn't they raise with china on the hill? so if everything globally looks rosie now, why didn't they do it way before? >> when you say way before -- >> before december. before december. they have the ability to do it probably four to six months prior to december. >> i didn't know when you had -- in august you had the yen. >> but you also -- >> but before the collapse of the chinese markets, asia
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markets, they have the opportunity to do what they didn't. i would push back and say the globe is probably a scarier place now than it was. >> i don't think they will raise in june. i think they will find whatever excuse they can. when you talk about data dependency, the april payrolls were much worse than expected, okay, and they reached the unemployment target and the inflation data which is really what got this starting but well below the inflation target. they will find an execution not to raise in june. that's my view and people will think about july but i suspect it comes, if it does come, after the election cycle and i'll just make one other point when you think about we're talking about economic conditions around the world to steve's point, they are not particularly better anywhere. yes, we've seen some of the risk assets going haywire in january and february cooled but if the dollar runs ahead of the potential for raise in june or july, then we could be right back where we were before where the ilications of a higher dollar, what does it mean for
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commodities and credit that sort of thing? to me, i think they have painted themselves in a corner but i don't think they will raise and we have the potential for not too different than volumety across risk assets globally. >> the question is what do you invest in? >> i'll tell you what you do. my boy timmy says this all the time. s&p and two-year treasuries because the s&p is the best performing and the least risk of any equity market in the planet right now and we also know, you know, treasuries, why not? that's to your point. 60/40. >> a plight to safety because relative to the rest of the world. >> the only problem i see with the overall market, technically looks exhausted but the only problem is the fed governors that keep talking up the ability to raise. or the need to raise and if they continuously do that, they are going to put a lid on the market. now it might not crater but i don't think we can make it.
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>> that goes to our thesis or the question, no matter what is happening, no matter what is running their mouth off or talking -- >> got to buy yield from at the dollar and people come to realize the move to gold is for all reasons other than a falling u.s. dollar. >> all right. it has been a year since the s&p 500 made a new all-time high so this will be the first time since 2012 the s&p has gone all year without making new closing high. so what does that mean for stocks? breaking it all down for you. what are you looking at? >> all right.
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that's right. it's been a frustrating year and a year since we peaked and frustrating for bulls, bears, everyone. here is the debate around technical circles here. it's really a question right now whether this is the early stages of a very big bear market. you see the topping pattern or is it later stages of this correction that's run its course since last may and maybe come into an end. we think we're at the later stages and possibly seeing returning strength in the second half of the year. here is why. on the terms of positive evidence, a lot of risk indicators are turning higher again. most notably credit spreads. that's the blue line here. now credit peaked back in the summer of 2014. since then they have been widening and it was really those wider spreads that were warnings ahead of the big volatile downside swoons of the summer of last year and coming into this year again.
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now they reversed that down trend. because of that, they are narrowing. i don't think you have the same risk of high volatile selling. now the near term evidence is a little more mixed. indeed. more recently the s&p consolidated and there has been a pickup as far as volume moving into declining shares. here is the break down on the bottom. orange line is volume in the declining chairs, blue is volume into advancing chairs and a crossover. there is more volume going into declining shares. these cross overs have been terrific tactical trading signals over the last year. you had the buy in november, the sell in november, the buy again in february. so near term action is indeed weak here, grosso loves retracement levels and a very important in 1996. the s&p 500 could trade down there and carve out a bottom. what we see is a little bit of an inverse head and shoulders that supports the longer term breakout thesis.
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>> i look at your chart. you're talking about a cyclic correction here. when i look at that correction phase, i look at the latest low from january and february and i see the s&p did something it not done the entire time from 2009 is make a new lower low and when i see that after the two lower highs since last may, to me, that speaks to a down trend that is likely to be tested one more time on the low end and who know what is happens if it breaks it. >> that's right. if you look at the february row, that was an 18-month low. that's a characteristic of a bear market. that's a major low. the question indeed, is this going to be a continuation of the move or are we at the point to see a resumption of strength. it's not just credit. we're seeing participation broaden out and oil stabilize. we're seeing a lot of the signals that we like to see to expect that strength can continue on the upside. so i just do not see the setup where you get that volatile move
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down to the february low. we think it was a bear trap. >> all right. we'll leave it there. thank you. what do you think? >> the head and shoulders pattern to me, you find basically the left shoulder at the end of march, early april and you find the head in april. i think we can rollback down in 1930 and so i missed his by 60 handles or so. we're not going to quibble over that. it holds or stands february low of 1810. >> whose camp would you be in? >> i like camps. >> i know you do. >> it's summertime. >> it is. >> terminology. >> the -- >> oxford -- >> fresh air. >> as for you, which camp? >> the camp that says the fed does hike, i think my biggest concerall along has been missteps by central banks, which i think this one will be. the dollar rallies and commodities go down as to deflation pressures that have been there. the s&p breaks 20, 25 which is my level and key support in
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1950. >> big box, big returns, at the big box retailers the one area of retail that is amazon proof? we're naming names plus what did tesla, chesapeake and valant have in question. it appears phil mickelson is safe but one event could land him pack in trouble. much more "fast money" right after this. wrap (politely) wait, wait, wait! you can't put it in like...
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. >> gas is higher on earnings. courtney regan has more. >> gap in closing 75 stores including exiting the old navy business in japan is 53 stores closing 22 international banana republic locations. it will save 275 million per year pretax and on the conference call, still very bullish on old navy's international potential. real tones compared to past calls but as usual realistic about acknowledging his company and catching up to do. he was asked about his comments from the shareholder day regarding amazon. take a listen to what he said. >> amazon's presence in e
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commerce is undeniable so to not fully consider the distribution for us would not be thinking about things that were important to us. in no way was i previewing a partnership. >> gapping said specifically that it will not reaffirm earnings guidance but falls within a reasonable range of outcomes and trends in the apparel retail environment would need to improve to achieve the estimate. cfo sabrina simmons says downward trends would put negative pressure on the consensus. you'll remember on may 9th, the retailer gave revenue an updated guidance for earnings so no surprise there is for investors. the retailer says traffic was volatile and appeared to be a head wind. peck says the percentage of fashion is too high and gap and further gap says despite better
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merchandise, consumers aren't willing to buy at banana republic unless there is a steep discount. things are usually 40% off and take that away, it hurts. >> karen, what do you think about the cost cuts? enough? >> maybe, hopefully. guy and i were talking about it. it seems to be trading okay on some bad news. they have been piecing out bad news for awhile now in the ba balance sheets. the world is vale really volati. many are not working. >> i don't know why they give monthly same-store sales. >> nobody does it. you said that before. i don't -- it's going to hurt the first time -- >> but then it's done. >> we're just now going six months from now, we'll begin a strategy of no longer giving. >> right. >> great. listen, i think this might be the opportunity to buy the stock. it's going to bounce off the news. there is a trade on the long side and the define stop being
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today's low which is $17. >> let's stick with retailers here. the big box players are kicking off. take a look as a performance in walmart stores are sharing. the biggest one-day gain after beating estimates. walmart shares up 12%. not just walmart. lows touching an all-time high and still within big box retail, home depot on monday beating on top of the bottom line. that is flat on the year and market is down. so are these kinds of retailers, amazon proof? is this where you need to be in retail and ironically, i go to karen not in any of these stocks. >> i'm not. i was surprised, very surprised by walmart. didn't own it going in. they did a very good job, i think the bar was lowish. not crazy low. it's trading at an average multiple for them. they do a great job on expense control. same store sells were good and overseas was good.
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the one thing they did say, which i haven't heard any retailer say, the warm weather helped them and they spent less on energy, which you don't really hear from a retailer but i do think they are squarely in the sites, you know, for an amazon. >> sure. >> i'm more afraid for them. when you talk about the consumer that went to the home depot or went to the lowes, we saw that. >> i think walmart actually wasn't nearly as good as the 9% gain. remember, back in november they got it done massively for this year, okay? so the expectations were low and we know the stock was down in sympathy with other guys down 8 or 9% and had a 1% count. a 1% count. and then here is the thing, you talk about amazon proof. you know what else? their online sales up 7% year over year was the slowest in two years so they are not amazon proof? okay? expectations are low and they bought it back up here today. people selling it.
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makes for a great story about amazon on the trade, amazon is flirting with the old high. 696. so bounced through that now it's the support. so if this is going to be the chatter about who is doing better against amazon, exit your amazon trade 696 if it breaks that level on the downside but as far as the other side of retail, stick with what's been working. ulta salon up 12%. kate spade up 23% year to date. buy those on a weakness and don't bottom fish. >> guy. >> there is no comparison. the comparison is in the price action, right? goes to show you, i mean, home depot i think people said is as good as it's going to get. that's north of 140 when they reported. walmart is the other side of the coin. maybe as bad as it's going to get and relief. i'm not big on pair trades
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because you have to know what you're rooting for but if there was a time to buy walmart and home depot, now is the time. what do chesapeake and valiant have in common? i'm melissa lee and here's what else is coming up. >> looks like you lost your focus and cool. >> phil mickelson could lose something else as an investigation heats up. a top criminal attorney will be here to explain. behold. ♪ ♪ >> the pizza delivery man of the future. the ceo of dominos will explain how he's using technology to corner the pizza market when "fast money" returns. if you're going to make a statement... make sure it's an intelligent one. ♪ the all-new audi a4, with available virtual cockpit. ♪
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welcome back to "fast." elon musk raising eyebrows. mike is at the new york stock exchange with this story, mike? >> elon musk planned to sell 2.8 million shares as part of the stock. it's highlighted musk use as collateral for personal loans. he pledged to back loans totaling $500 million. tesla's offering document notes if the stock price were to drop, musk in theory could face margin calls that would pressure the stock. musk willingness to borrow and use the cash to finance tesla, those include solar city and spacex is relatively rare among corporate executives but ceos have encountered trouble when they face margin loans most
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notably michael pearson had stock liquidated late last year and a few years ago, aubrey mcclendon was forced to sell much and robert stiller of green mountain coffee fell into a similar situation in 2012. because musk pledged a small amount of his 6.5 tesla stake against those loans, the prospect of a call seems remote. he's a self-imposed cap of 5% of the equity holdings for use as loan ka lcollateral and sells 2 million shares in the new offering and also donates 1.2 million additional shares to charity. so tesla shareholders don't seem to have too much to worry about now when it comes to finances but one can argue for a company that will need access to fresh capital, having the ceo soak up investor demand for the stock with his own shares is one more reminder to investors of how
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bound up their investment is with the priorities of musk that charismat charismatic. >> that self-imposed limit is the difference. i'm curious, what percentage of their equity stake was pledged or net worth for that matter? >> when their stocks went down, it was virtually all of their liquid net worth. they could not put up other ka lateral and go to other recourse and sell other shares. it clearly is a buffering right here but i do think people when those offering details came out last night, a lot of people on the street were scrambling to find out whether musk's role was a red flag. seems not to be but i think it's interesting when you have such a big player financing three startups that all need a lot of capital and he's doing it however he can. >> okay. mike, thank you. interesting story that mike has. karen, does this raise any flags for you? >> not really.
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it's always fine until it's not fine. it would seem right now that he could easily sell the stock, you know, the street would absorb it. go prowhen nick woodman sold stock in the '90s, they ate it up. >> that is true. >> for his foundation. i mean, i think elon musk is very committed to owning tesla. >> that's the risk. he's too committed. there was a buyer great look by ashley vance last year about elon musk. we read it. there is history. the guy has gone to the brink with every company he's founded and had a handshake deal to sell the company in may of 2013 or something like that because they couldn't make payroll. if we have another financial crisis and stock gets cut in half and spacex loses a contract, it's all intertwined and they will be in a lot of trouble. the fact is i would go the other way and say his commitment to those endeavors makes the story interesting why he's unique.
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>> quickly on the stock that traded up today on top of the gain yesterday -- >> well, you guys know, i don't think it's been priced yet. >> yeah. >> wherever it's priced, that's your level you trade against. it's traded really well since the announcement. let's see after its priced. progolfer phil mickelson paying up on games he won with an insider stock tip. a top attorney says what could change in a hurry and close to entering a death cross. we'll tell you what it could mean for stocks. much more "fast money" right after this. then one night, you hydroplane into a ditch. yeah... surprise... your insurance company tells you to pay up again. why pay for insurance if you have to pay even more for using it? if you have liberty mutual deductible fund™, you could pay no deductible at all. sign up to immediately lower your deductible by $100.
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welcome back to "fast money." the dow falling and not even walmart could save it. the dow and s&p are on track for the fourth loss and all three of the industries are in the red for the year. here is what is coming up for the second half of "fast money." dominos is acting like a company
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with robots and high tech cars. patrick doyle joins us to discuss his big bet on the future, later. one charter with a death cross and it could mean big trouble for the broader stock market. we'll explain later this hour. but first, we start off with a text message that made golfing proph phil mickelson a million dollars. >> he's the eighth wealthiest athlete in the world and made $51 million last year but it's the nearly $1 million he made based on what the scc calls insider information which has phil mickelson in the rough. four years ago mickelson got a tip about a well-known sports better in las vegas mickelson owed money to and walters' tip was based on insider information, mickelson may not have known that but went all in. >> based on these december kiis
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he bought $2.4 million in the stock. >> that $2.4 million he put in according to this complaint from the scc was nearly ten times anything he had already had in his stock portfolio. they are claiming he had $250,000 in his stock account, brokering account. the shares popped 40% and mickelson sold the shares and paid off his debt. they are calling him a relief defendant which means he has to return the money, a little over $1 million. he's doing that but not being charged with insider trading. officials were repeatedly asked if he's getting special treatment. they say that's not the case. they just don't have evidence they knew this was bad information. mickelson released a statement regret for falling short of the high values he shares with the people around him.
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for his many, many sponsors, so far nothing negative pull back and saying they appreciate what he has said about values. they regret what they had to do and disappointed. callaway saying they value the long-term relationship. for now, no change in sponsorships. this has been going on for a few years, these rumors about this case. they have been known he was affiliated and haven't pulled back then and not pulling away from him yet. >> interesting. the accounting firm will still stand by him. jane, thank you. >> yes, the accounting firm had its own insider trading scandal a couple years ago and the worry was phil mickelson might brought kpng. they didn't then and he's still standing by them now. >> they are trading values. [ laughter ] >> harvard girl. >> what this means, let's bring in new york criminal attorney. james, great to have you with us. >> great. >> does it sound to you like
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phil mickelson provided investigatiors with information and that's why he hasn't gotten charged with anything? >> i don't think so. if you provide information and cooperate in the same way the dean foods chairman is doing, you cooperate and enter a plea of not guilty and then you get a letter of cooperation. it appears here there is simply insufficient evidence to charge him and that's based on a recent 2014 decision from the second circuit which seems to insulate what we call remote tips from criminal prosecution, unless there is evidence that mr. mickelson knew the information came from a corporate insider that it was a breach of his duty and that corporate insider received what the second circuit called a consequential benefit in return for that information. then he is insulated from criminal prosecution. >> so it looks like he's doing a great job of crisis management and saying i made a mistake and all of that. when you contrast that behavior with what happened with martha stewart, what's the difference?
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where did it all go wrong for her? >> where it went wrong had nothing to do with the insider trading. if you compare. the law was different back then. newman had not been decided. it's hard to tell but what went wrong for martha stewart was the obstruction, not necessarily the insider trading. somebody called her and told her buy this stock. she bought it and made money but when asked about where she got the tip from and so on and so forth, it was alleged she lied. the problem wasn't trading but responses to the agents. >> is phil mickelson truly in the clear at this point? billy seems like he's in a lot of hot water. is there a risk he will be pressed to provide more information to snare this high profile trophy of phil mickelson? >> you have the initial source and walters and then you have mickelson and with the second circuit said is there needs to be continuity of knowledge. fit was credible, who knows if
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the second circuit -- if the southern district would deem that credible enough to proceed. >> what would you tell walters to do if you had the choice of giving some information and maybe lightning his sentence? >> you know, it depends on the climate. what i would do initially is look over the evidence. he's just been indicted. he's got to get the discovery and see what they have and makes his determination. he went to trial just a short time ago in vegas and was acquitted so he may feel emboldened. >> what's your sense to what the u.s. attorney will do? walters had been tied up with another investigation relating -- with carl icahn, the allegations were that carl had given him some ininformation on clorox. do you think these sorts of, i don't know, these paths get explored once again to see if there are any kind of connections from watt walters t other high-profile targets. >> i'm absolutely certain -- >> you're certain?
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>> i'm certain they conducted an investigation and if they can go somewhere to broaden and amp fie what they have, they will do that. >> all right. james, thanks for joining us. >> thank you. >> james, criminal attorney. i don't know if you heard the press conference but it was shocking the percentage of the daily volume in trades and billy walters alone had in dean foods between 16% and 37%. >> wow. >> the error in judgment, though. >> totally brazen. >> i got to say allegedly because i don't look good in stripes. >> you're wearing stripes, that's funny. [ laughter ] >> he's just admitting it. >> no, but just the error in judgment to be taking a tip from a known gambler he owes money to. he's smarter than that one would think. >> seems like a good thing to do. >> you should be put in jail for
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stupidity. >> the rules and laws are so introit. you have to go with your gut. if it walks like a duck, it's a duck. if it doesn't feel right, the sniff test, pillow test, mirror test, if it feels wrong back away. >> let's make a point about sports. pretty good athletes, i don't think golf is a thinking man game. you have another guy telling you what to use and this and that. so i'm just saying that of all the sports out there, if i had to peg somebody to do something really dumb insider trading, it would be golf. >> when you were excelling at bag mitt t badminton -- >> we're running out of time. >> badminton is a great game. with summer coming up, set up the net, buy some shuttlecocks and -- >> oh. >> that's what you call it. shares of domino pizza up 9%
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this year. why his company is doubling down to heat up the stock in an exclusive interview next. a $3 million bet on a high yield melt down. we'll tell you what has one trader nervous about this market after this break. much more "fast money" straight ahead.
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welcome back to "fast money." call it pizza man 2.0. dominos is confident technology can help the brand corner the global market. joining us in an exclusive to discuss is domino's president patrick doyle. great to have you back on the show. >> appreciate the invitation. >> even knows you employed technology and seen efficients. 50% of the sales are digital and 50% of that of the dig nil sales come from mobile devices. let's move the needle the most and what in your view will move the needle the most in the future? >> you know, i think if you look at kind of the retail industry over the last 40, 50 years, it was about the big boxes and physical world and then you had this period of time where it was about e commerce and just about sites where people took orders
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and shipping them out. i think where all the most interesting things happening today are in the middle where you're bringing kind of technology to problems that happen in the physical world and figure outweighs for people to access the brand more easily. get it delivered to them. so you see players like us that have been moving from being about just the pizza and kind of the physical retail side moving into that space in the center and you see amazon and some others trying to figure out okay, it can't just be about e commerce, how do we start to play in that center area and as every time we make advances with our technology, come up with new ways for people to order, we so a lift. >> what is moving the needle the most? >> i think number one, i think it is the different platforms
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that we've launched and the fact that people now expect that any kind of technology that they are accessing, they are going to be able to access our brand. so honestly, i think the biggest answer is thing a get of technology and clearly mobile is the fastest growing part of that. so, you know, it is over half of the digital sales in mobile and over half of the total sales are now digital. so, you know, honestly, i think it's the fact that people now expect that they can order dominos anywhere they are at any point is really what's been driving the business. >> so there is a dominos robotics unit. you've talked about using self-driving cars. look out, patrick, five years into the future, ten years into the future. what will be the most shocking difference in the pizza experience between now and then? >> yeah, you know what? predicting that with the way technology is going is tough because so much is happening and
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we've been doing a lot of work with voice ordering. we think that's important. if you look at what we do fundamental fundamentally, we take orders, make pizza, terrific pizza and deliver it to people and we've done a lot of work on taking their orders and coming up with easier ways of doing that but you're seeing we built a car. we got robotic units and we've done a lot of work in different areas on new ways that we're going to be able tofficiencies n get in the store. that's where we're focussing investments. >> last question, are there ways to bring more efficiency in actually the pizza making process? i know that you know that guy here on the desk actually made pizzas -- >> a great pizza maker. >> i was good. >> he's worried his opportunity to become a full-time domino's
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pizza worker may be gone. >> we drove perfect efficiency with him because we made him nothing to make those pizzas. our labor cost was zero. but look, there are absolutely ways that we can help people in the stores be for efficient making pizzas. hand stretching the pizza is always going to be what we're about. people want to know that their pizza is hand made but there is certainly things we can do to make them more efficient at it and we can continue to look at those. >> all right. patrick, great to speak with you, thanks for your time and we hope you come back to "fast" some time soon and thanks for the pizza. we got so much pizza here. it's nuts how much we have. this is a long-time favorite of you yours. >> dominos gapped up and down and worked off the over sell and i believe it's probably got another 10% to the upside but i believe yum has 10% to the upside. mcdonald's has been a
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reorganization story so to speak on their menu and strategy. i think they will probably flat line a bit mcdonald's. so i think you go dominos or yum. >> wow. interesting he was talking about retail out of the gate and you wonder how much more retailers can learn from the example of a dominos, for instance. >> they just -- you watch that digital robot. >> yeah. >> it was fascinating. i'm wondering if you get your -- i think down the road you could see that happening. if you don't need to tip the robot, which i assume you don't -- for real. you think it will be in 20. >> they charge 20 and you keep the tip, basically. >> and you avoid the minimum wage debate. >> and don't have to pay the guy. >> minimum wage debate is a huge impact. >> yeah, yeah. >> why are you shaking your head? >> because the employee experience is part of it. we're talking about extraordinary defleation narcoticry.
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i spent the day at dominos in queens and got paid zero, which is what i was worth that day. >> all right. we got a news alert on gap cutting gains in the after hours session. let's go to susan lee. >> despite the fact gap came in line with the latest earnings, cutting gap's credit rating down to junk level status and b plus, double b plus and siting the fact they expect a weakened competitive position for gap and challenging apparel retail space and don't expect it to improve at least the upbringing results to improve meaningfully in the near team. back to you. >> all right. thank you susan lee. do they need to access the credit markets, karen? >> i don't think so. i don't think so. not sure. >> not a huge issue for the gap at this point. speaking of junk, dan, you say there are a lot of bearish option bets on high yield today. >> one big one. we were talking about economic conditions since january and february at the storm back earlier in the year and we know
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that was a function of commodity prices and possible bankruptcies. the tracks, high yield index in the rally 10% off of those lows down near 75. today put volume was four times that of calls largely in one trade when the etf was trading 8270 there was a buyer of 22,500 in the december. 75 puts. those break even at 7367 down 11% from here. so when you think about what this trade may consolidation after this run and you do have something. the 200-day moving average and 50-day moving average. those are indicators suggesting the thing could be moving lower. i'll make one point about puts so far about something like this. this is implied volatility. they are the cheapest options on the board if you look to play for a disaster, this is one way
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to do it with defined risk. >> thank you for that, dan, for more options action, check out the full show on friday. still ahead, congress approving half a billion dollars to fight the zika virus. meg terrell joins us for a special dose. here at td ameritrade, they work hard. wow, that was random. random? no. it's all about understanding patterns. like the mail guy at 3:12pm every day or jerry getting dumped every third tuesday. jerry: every third tuesday. we have pattern recognition technology on any chart plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. td ameritrade. hi, i'm henry winkler ...and i know there are many myths about a reverse mortgage so i want you to know the facts.
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welcome back. the battle is heating up to fund the zika virus. meg terrell and our resident stock therapist. meg? >> so as the summer months approach and the weather warms up, people are saying this gets even more urgent that we need to fund zika efforts in the united states. president obama earlier this year asked for almost $2 billion in funding to fight zika and congress really has not. you can see that the senate just passed a bill that would allocate $1.1 billion out of the 1.9 billion requested. the house is more stingy with $622 million in it's proposal and they want to actually
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reallocate some ebola funds to zika. that's something the white house has already done because this funding was coming so slowly. folks are saying now the senate and house have to come together and try to reconcile these two bills and that could take a really long time and people worried how this funding would get passed. if it does, which companies are working in the space. you have companies working in vaccines. trying to take their vaccine technology and translate that into a zika vaccine. they are working the space. and drug development, gilead is a developing story. they have a library of compounds of drugs and screened them to see if they can work against infectious diseases and found a drug that looks like it could potentially work for both. that's interesting. >> sitting on the shelf in their library. >> literally sitting on the shell. cool story. on the mosquito control front,
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this is a way to make a dent in zika. we have a medicine that can make money for them and there is a battle brewing in florida over whether they can do testing there. that will be interesting to watch and of course, big companies like bayer are working and on the diagnostics front, a lot of companies working in the space whether super investment is another question like we saw with ebola. >> meg, thank you. meg terrell with stock therapy. you know, guy, you look at some names, not going to move the needle. >> not for gilead, it's not. for a company like intrexon. that's a good company. a lot of interesting things going on. again, this would move the needle more than gilead but here is the stock that you might want to take a look at on a flier listen. another play but the upside is interesting right here.
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>> up next, the traders tell you what they are looking for tomorrow, ak, the final trade. stay tuned. the call just came in. she's about to arrive. and with her, a flood of potential patients. a deluge of digital records. x-rays, mris. all on account...of penelope. but with the help of at&t, and a network that scales up and down on-demand, this hospital can be ready. giving them the agility to be flexible & reliable. because no one knows & like at&t.
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time for the final trade.
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dan, nathan. >> yeah, walmart was one of the bright spots today in the market and retail earnings. i wouldn't be buying it and a descent short leaning against 70. >> karen? >> yeah, kors is pricing in i think a very significant miss already right here. if you want to play, you can do call spreads. they report june 1st. >> 386. >> so in light of retail being ultra confusing, i spoke to a retail pm, portfolio manager that loves children's place. another kicker to it, they are ramping up with amazon. plce, children's place. >> the kicker is karen owns some. >> i do. >> she could have jumped in. >> patrick doyle, man. i got to tell you something. >> you're carrying a favorite for a job, for future job. >> you said i was -- what did you say? i was pretty good. i wasn't -- the guy i worked with said it's the best he ever
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seen in terms of learning. >> because you're -- >> anyway. >> made pizza -- >> sounds like -- >> gps. bad news is in. >> i'm melissa lee, thanks so much for watching. see my mission is simple. to make you money. i'm here to level the playing field for all investors. tlls always a bull market somewhere and i promise to help you find it. i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. my job is to entertain and to teach you. so call me. or tweet me @jim cramer. the sum of the parts is worth more than the whole. you can't tell on it a day to day bas

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