Transcripts For CNBC Fast Money 20160301

Sees shares going. But first, we start with the markets. All three of the major indices hitting their highest levels since january 7th. Both the s p and dow not out of correction territory. Heres what was different about today. Bonds they sold off hard. Take a look at the beaten down bank stocks. They had a huge day. So is the rally now confirmed, guy . We talked about it on friday and january 20th, the transports bottoming out and trading really well ever since. In 2025 gets you excited then the rally is not over. Even dan who i think obviously had some bearish even dan. He had said you can see a rally at 2000 in the s p. I think 2025 is a level. I think we trade there. I dont think were going up 50 handles today we have to be honest. 1950 is a pivot point. So i think in a lot of ways we have gotten this right. I think well fail at 2025. See what happens there. Do you stick with that and do you keep your short positions on . Yeah, today was a painful day if you took you know, took the view that we are in a down trend and we are testing lower lows. I stick with that because fundamentally i dont think a whole heck of a lot has changed. I acknowledge that the sentiment overly bearish and now its overly complacent when you consider what we have ahead of us as far as the Central Banks and the likelihood theyll call volatility. The way i see the s p here is like youre buying a whole dip for the last three or four years on the way up when you had the fed put in place. Its not in place anymore. The likelihood is that if we continue to have slightly better data here we just had better inflation data, if we have better jobs data on friday, then all of a sudden, now people are pricing a greater likelihood of a rate increase. I think thats what brings back the volatility. The s p 500 is making two very big lower lows so to me i think it fails at 20, 25 level. You have good opportunities to take profits or for traders to put sell outs. We finally got something all of us have been talking about at the desk, financials. We have got it from those who are lagging, on the upside its lagged. Today it led. 3. 5 . Strong day there. Look at the insurers as well. They took off today. So different areas that youd almost call put them this the financial world. They actually really were parts of what was really powering this market today. And the fact that we have been talking about volatility. We broke that 50 day. Now were bouncing on the 200 day for a while. We broke at 1770. Down 14 for the volatility index. The only thing thats slightly concerning for me going back from yesterday looking at today a little bit, low volume. Not that volume is everything but i would have loved to have see more participation. We did not get great participatation in terms of volumes in the stock market. There was a reluctance in the market. We did have a selloff in the bond market. At the same time, we look at the utilities for instance. They finished lower by a fraction of a percent. And staples they finished up by a fraction of a percent. In the financials theres a reluctance to give up the defensive plays we have seen. For me the financials was a great thing today. I feel like this rally is kind of long in the tooth like everybody else who has a long bias. Like what i own and i think theyre great, but i feel like the market has come so far. We have seen the volatility start to come in today. So we bought some s p puts today. I bought a midday, certainly not at the bottom, bought more at the end of the day. I dont know if the market has legs or not. But things have moved a lot and so i feel much better having more protection in place because im not going to be buying new stuff right here. I feel much more confident when things were trading down into the integers. I think you will see a bond crescendo. I think the people that feel like they missed it wont rush in. I think the bond market kind of concerns me definitely a little bit today. It makes sense in the constructs. I think yields continue to go lower, but gold should have gotten obliterated today. It really didnt do it. So thats still some signs out there that make you somewhat wary. I think when you talk about yields, so we were just at 1. 7 on the ten year, now its a bit higher when you look at the s p, people are trying to figure out where do i put money here . Karens a value investor, no at lot of safe alternatives right now. The s p 500 is down 3. 5 on the year. People are like, also, its okay goat back in the pool. You have to think of it in a broader cop text. When you look at the yields it doesnt make a Good Environment to invest in risk assets when thats so much uncertainty about the Central Banks exploding debt in asia. We see theyre being accommodative. But im worried here. If youre buying stocks as we get closer to 2000 and youre afraid at 1800 youre doing it backwards there. To guys point talking about gold, i looked at the gdx, but it was up at 4 and look at the run its been on year to date, the whole thing. A stellar run. To your point though its interesting that it didnt get hit as hard. You would expect it to be hit much harder than it was today. Thats a sign that says, hey, what it a minute. To karens point maybe this is too fast. Lets go running with the bulls. Our series highlighting some of the most bullish calls. Our next bull is getting a little bit more cautious actually. From wells fargo, caught his s p target two weeks ago. Youre a bull, but it seems you gave up a bit. We gave up on the calendar, melissa, because i certainly absolutely truly believe we are going to get there. Just not going to get there by december the 31st. So i think right now, you know, you guys have been talking about it. The technicals and i think the fundamentals are aligned pretty well. For better or worse im watching that 2025 in the s p that guy is. I think were going to get there. I think well fail the first time, but our year end target range for the s p 500 is 2000 to 2100. It sounds like the notes i have read about your views, it seems like the main catalyst that will drive up to the upper end is simply stability. Things wont get that much worse from where they are right now. Is that fair . You know, thats right. You know, catalyst is almost too strong of a word to use. I would argue, you know, for me, 30 as an equity guy, you know, 30 is almost a kind of a line in the sand. If we can stabilize above that, i think the equity market will like that. I think thats what we have been seeing. Manufacturing we had the ism number today. Stable a little bit below 50. Some of this International News is a little bit more stable, International Economic news. So really i think catalyst is too strong of a word. I think all the market needs to do to get into our year end target range and the upper end of the target range is stability. Because i think Earnings Growth very predictable. Very modest. Gdp growth, very predictable and modest and its now its a valuation kind of a thing. I think you will see the valuation inch up a little bit, not a lot. So i think this year is going to end up better than people thought. Scott, the performance of the transports since the middle of january is encouraging. Do you think well trade 2025 and in the short term when you say we failed, where does it go from there to the downside . I think really, we toyed with the 50 Day Moving Average all day yesterday. Yesterday was a total technical day. We opened above it today. I still think we certainly tried before we hit 2025 well go back and retest that. Thats around 2040. I think were not going to straight up, i think well have some pull backs. You know, were in the bottoming process and i dont think were going to see 1810, 20 again this year. But i think certainly well try the downside a little bit. It will be choppy in here. Heres a lot of people not very confident. Scott, thanks for join us. Have a great evening. You too. Scott wren of wells. Its funny, hes a bull. Sort a tepid bull. Yeah. He sounds like it. Sounds to me like i was looking at where he was overweight and financials are not part of this whole thing. If financials can continue from the beating they have taken in the first two weeks of the year and the transports can rally back off of the lows they were, then i would wonder if scott would want to be able to move his target back up to where he started at, at 2280. It is interesting to see the finance shalts. Last year, financials were doing nothing. Then they started to fade is what youre predicting will happen with the financials . It feels like were repeating last year. With the length of how long it will above the two Day Moving Averages, yes. Todays move down i think you have to see the forest with the trees with regard to the bank stocks. Citigroup still down 20 on the year. Trading in fairly tight range, but banging around a lot. Youre seeing volatility. Even jpmorgan until we see a bunch of closes above 60 you dont put too much credence on what jamie dimon bought or what he bought. I dont think the financials have confirmed a lot. I dont think its safe to get back in the pool. I look at the whole thing to me theres a chicken and egg story. Its the economy. If the economy continues to improve i like the data we saw today. To me, thats whats good for the banks. The potential the fed raising gain, that would leave the banks higher. Lets talk about where the volatility came from this year, why european and asian banks acted so poorly. Its the deleveraging over there. Thats not done. Its my view its deleveraging cycle, a rolling credit crisis thats been going on. Our bank took it on the chin. Barclays cut their dividend again. That sounds very early 08 to me. And then the european banks rallied. Not well. The stock index was up 2. 5 and citigroup is up 5, 6 . To me i think it was a reflex bounce. I think youll have and the United Nations to buy the stocks lower later in the year. Coming up next, tesla tanking. As an infamous short seller takes aim at the stocks. What does he see that others do not . Plus casinos are having their best months in two years and it comes from the unlikely source of good news. And something positive is p happening in the market. Well tell you about the under the radar sign thats flashing buy for the stocks. Fast goes running with the bulls in search of notes of in hopes of slaying the bear. Thats all this week on fast money. At mfs investment management, we believe in the power of active management. By debating our research to find the best investments. By looking at global and local insights to benefit from different points of view. And by consistently breaking apart risk to focus on longterm value. We actively manage with expertise and conviction. So you can invest with more certainty. Mfs. Thats the power of active management. Man 1 he just got fired. Man 2 why . Man 1 network breach. Man 2 since when do they fire ceos for computer problems . Man 1 they got in through a vendor. Man 1 do you know how many vendors have access to our systems . Man 2 no. Man 1 hundreds, if you dont count the freelancers. Man 2 should i be worried . Man 1 you are the ceo. Its not just security. Its defense. Bae systems. Welcome back to fast money. Tesla is our top trade tonight. The stock falling on news short seller sit ron research this should take tesla down to 100 by years end. And adding insult to injury tesla is down a whopping 22 sings the start of the year. We should be clear thats all that they have released to the public a single tweet. I would say if theyre traders they had good timing. The stock went down to 140 went up this morning to the 195, 200 was a massive break down level prior to earlier in year. So they kind of caught it after a massive run. We know that 2016, there as lot of news flow about the modal 3. Thats model 3, the electric car theyll introduce. I think people got excited, i think its a choppy trade. Its i dont know, not a huge stretch from where im looking at. I two issues that we can deal with. The work of andrew left who had released the Detailed Research work on valiant. We have not yet seen the Research Report connected with tesla yet. This is only 140 characters give or take. The other issue is whether or not tesla has the fundamental problems that left that they allege that they have. Bad news all around. I dont know we have seen all the evidence of the problems as of yet. Maybe well see the problems come to light. But i just continue to look at this stock as oil. I mean, depending on where oil is that seems to be a great you can almost put the charts up together, follow along. Gifts you the road map. If your belief is that oil is going to a certain level, be long tesla. If oil is sutuck in the area it is right now, i think tesla is going nowhere. Citron, their work is well get behind them. That seemed to be what happened today. There were big stats out post market that were bearish in oil. See what happens. But we traded right back to the levels what was support, becomes resistance. Dan pointed that out. I cant in good faith say short tesla at 185. But if you enjoyed the move from 150 to 190 is this an excuse to take the profits if you were lower . I think thats the point. You said the valiant work was outstanding. The relationship was unknown to almost anyone prior to their research. However, since then, they did a gap piece that i thought was inconsequential seeing the brand becoming irrelevant. Thats vague. This sounds really vague to me as well. To just short on the heels of oh, citron piece is coming out makes no sense to me. Its a startling statistic that could have facebook investors scared. Well tell you what it is and what it means for the shares when fast money returns. Im melissa lee, youre watching fast money. Heres what else is coming up. Good idea, because casino stocks are surging. And theyre doing so for the unlikeliest of reasons. Well explain. Plus something just changed in the market. And it could signal the all clear to buy stocks. Well tell you what it is and how you can profit when fast money returns. Welcome back to fast money. New gaming figures show that luck may be turning for the Worlds Largest gambling hub. Cnbcs susan lee has all the details. Thats right. There are hopes of bottoming out in macao and i call this a story of comparisons because its not as bad as what people had expected and we have gross gaming revenue, a lot of people look at it. It was actually just a decrease of 0. 1 . The analysts were calling for a drop of 2 . In fact, this is the best result in 21 months for macao. And that compares to a 21 slide in january so people are thinking okay, maybe this is the turn around story that we have been waiting for. Also a pretty good Chinese New Year as well with visitors coming in at over 1 million, thats up 5 from last year. Hotel occupancy rates were up. This is a calendar year where we have a leap year, an extra day in february which is borrowed from march. Long for the march figures and does it console daltd what were seeing in the month of february and we have the high margin vip segments. All the volume, all the mass markets and these are the two that are winning so far. Lvs and wynn they have new casinos coming on this year. The parisian and the cote and the wind palace. So more volume, more attractions and hopefully more visitors to the hub. Are analysts convinced that the mass market is back . For this one particular month as you mentioned theres the impact of the lunar new year. But are they convinced that the mass market is going to make up for that vip revenue which has never come back since the start of the anticorruption practice . Its been two years since that anticorruption drive started, hence the drying up in the vips. When we look at good numbers like this coming from the Chinese New Year, people are hoping that maybe maybe mass will overtake vips. Since theyre putting up more tables and the new casinos coming online. We by the way have a move up in income. So they use that money and hopefully go to macao and game and gamble in the future. All right. Susan, thank you. Susan lee from cnbc headquarters. Okay. The thing about these stocks is they have had massive runups into the numbers. Wynn, lvs, all of them. Nice gains. Your instincts would be to take profits here. I think your instincts would be wrong in this case. Wynn it trades around 20 times earnings. Interesting, not interesting. Thats a massive Short Interest in the stock. People have been betting against its for quite some time. Steve wynn bought massive amounts of stock. You have a Double Bottom at 50 from the fall. Then recently again in early january. I think people will continue to fight against this. Continue to chase it. I think theyve taken it up to 100 which was support all of last year in the beginning of the year until it broke down. Again you want to take profits here thats fine. I still think theres room for the upside. I agree with guy actually. You have been all over it, following wynn. Big giddyup. Just as i believe in the die hardness of the american consumer, corruption will be back in china i have no doubt. Macao will see it again. Why are you looking at her . Its been slower to return than i thought. I think we can see reacceleration there. I disagree with you guys and there are a million stock accounts being traded there. And they accounted for the shanghai composite volume and its going lower. To me maybe you have seen people exit the stock market, go back to macao. For those i think theres a distinct possibility. But i think theres also a case to be made theres a massive wealth destruction. You saw the shanghai go to 5000. If it continues to go lower, round tripping the whole move from 2014 were back to 2000. I think we had a massive cold spring when wynn is at 50 bucks. I think it does get to 100 by the way. I think guy is right. The reason i say that, steve wynn, when he started many december he build a million shares at 63. He followed it up in january and bought getting close to 2 million shares. This guy bought nearly 2 million shares at 60 a share. Here we are great profits for him. Sure. I doubt we see him step in to sell. What was it that steve wynn was looking at back then, other than the complete destruction of the stock. Maybe he saw something that was transforming in china. I love this game macao gaming revenues are five times that of las vegas. A macao oriented stock such as a Las Vegas Sands or a wynn or an mgm . You know what, macao. I think the data is still with the macao names for sure. Im telling you, people will continue to fight against its. People will continue to chase. I think it gets wynn to 100 bucks. An 18 move. And the option agrees with guy by bay. They had bought at mgm, but vegas sands and wynn, they were going up to the 95 strike. I have been in wynn since december. I continue to be in it. Ive tried to trim along the way as well. Trying to be disciplined but i think the thing gets close to 100. A quirky tax thing, i dont think wynn can sell for another six months. I dont think hell ever sell. I dont think he can at all. The secret sign that stocks can be setting up for the bigger rally. Well tell you what that is and why its signaling that now is a perfect time to buy. Plus, the street senses blood and theyre targeting ackman. The trade that could reveal more pain when fast money returns. Welcome back to fast money. Big rally on the street today to kick off the month of march. The dow jumping 350 points. Both the dow and the s p locking in the highest close since january 6th. Financial and tech stocks were the best performing sectors. Heres whats coming up in the second half of fast money. Bill ackmans hedge fund is feeling the heat. Why the street is ganging up on the biggest positions. And plus, apple and fbi making their cases before a Congressional Panel today. Were speaking to the girlfriend of a victim of the San Bernardino attack. Shes here to make the plea for apple to unlock the phone. That is later in the show. The s p is now 9 off the recent low. That has some stocks moving above the key technical level. Breaking it down is man himself on the move, cnbcs dominic chu. Well, i try to keep my eye on as many as i can, and were watching these for signs of momentum. Back on february 11th during the recent low, 63 s p 500 companies were trading above the 50 Day Moving Average and average price. Today, its around 183. So nearly triple. Some traders who are bullish are saying this could be a good sign. We are seeing more positive momentum. As for the names that are leading, look at the beaten down ones that are showing life. Look at continental holdings. A sharp move higher, maybe steam coming out of it now. But still above the 50 and 200. Same thing for the gold miners. New mont specifically. Can it continue . Remains to be seen. And michael kors. But again, for many of the stocks, they take big hits over tiegdz are time and are up sharply now. Now it sees if theyll turn to the moving and shaking on the down side. A lot of momentum. Back over to you. Thanks. Get back to work. All right, lets talk about the stocks. Dom makes a good point, beaten down. Is this simply reversion to the mean trade . I go to netflix and now were right back to levels where it sort of gets interesting, but you know what . In terms of netflix now they have to prove themselves so specifically i think thats a stock that if you have gotten in this rally which i havent, you sell it. The other side of that coin, like facebook, which i think it should continue to go higher. I think facebook the wind is at their sails. Do you like the michael kors . Yes. The valuation is still attractive, however thats a gigantic move. We did tell some upside call against our position, but they have done a great job. Not expected. You have to i have to tell you some of the gigantic moves should make you nervous. This is an Enterprise Software vend e they reported slightly better than expected. In line full year guidance. The stock was up 18 . Thats crazy. I mean, so you can say that to me from january 1st to the lows on february 11th the stock was down 40 . But think about whats going on here. That was for a reason. You know, there was a bubble in positive sentiment and that corrected. But to have it up off of okay news doesnt make a whole lot of sense. Wasnt that was the selloff and everything cloud related was going to get sold off at salesforce. Anything related to the cloud was getting smashed. Then suddenly you come out and salesforce numbers not unbelievable, but im sorry. But let me i want to just tell everybody here, this is a company this is pete. Work day just booked 1 billion 1 in sales last year. It grew at 40 some percent. On gaap basis they lost 1. 53. A share, when salesforce. Com booked their first billion year back in 2009 they broke even on the gaap basis. I cant believe im making a valuation argument in favor of salesforce, but work day makes no sense. When you think about it like that, i think in bear markets which we may be in one, people are going to start to scrutinize stocks like work day. Quickly, whats your trade there . Microsoft which im already in and i look at salesforce as well. They are gaining. They theyre gaining market share. Work day as well. Theyre gaining they do lose a lot of money and salesforce is ridiculous, but theyre making strides in the right direction. Quick programming note, tune in to squawk box at 7 00 a. M. , huge lineup. Ken langone, john kasich is all on one show. Snapchat is catching up to facebook and it could be big trouble for the social media giant. Details coming up. The pressure is mounting for apple to unlock the iphone belonging to one of the terrorists involved in the San Bernardino. We are speaking to the victim of the attackeds loved one to unlock that iphone. Thats next. Welcome back to fast money. Pressure continues to mount on apple as fbi director james comey addressed Congress Today about unlocking the iphone of one of the San Bernardino terrorists. Ayman javers has more. And comey laid it out in the hearing thats still actually going on right now. He made thecation that this is very much about the the case that this is very much about the future of Law Enforcement in the country. Do we want a society in which Law Enforcement doesnt have the ability because of advanced encryption to get action to certain information in this country, even with the lawful warrant and even with the court order. Heres what he had to say. Were moving to the place where theyre warrant proof places in our life, and yes, these devices are spectacular because they do hold our whole lives. Theyre different than a briefcase. Different than a drawer so its a source where a place with a tremendous reasonable expectation of privacy. But if were moving to the place thats not possible to overcome that, thats a world we never lived in before in the United States. That has profound consequences for public safety. We shouldnt drift there. And then melissa, apples general counsel bruce sewell testified today, making apples case that this encryption issue is very fundamental right in the United States for people to have privacy of their own information. He still testifying now. Fascinating debate up there because this one doesnt slice and dice by democrats and republicans, not the partisan break down hearing we are so used up here on capitol hill. Thank you, ayman javers. Well, as the showdown continues, well speak to those directly affected by the San Bernardino mass shooting. When shots rang out, Shannon Johnson took action. And shielded a fellow coworker while telling her, i got you. That heroic act cost shannon his life. His long term girlfriend is joining us right now, manny, thank you for joining us. Thank you for having me. Our condolences are with you and your family. Apples general counsel made the point that privacy is a fundamental right. What do you say to that . I absolutely agree with him. Privacy is a fundamental right. But sos the right to life and, you know, my right to have a healthy relationship with an incredible man. I have that right. So its the time the times are changing and im interested to see where we go from here. Yeah. So you yourself as i understand, mandy, you have stopped using an iphone . You used to use apple products . I used to have a lot of apple products. Shannon actually had an iphone, but any screen shattered all the time. I would drop it an inch and lose my screen. So i went on to the Android Device and i have i dont drop it as often. I have no intention of buying an apple instrument or device until this has played out. To the fullest extent. You know . Yeah. I think im sorry. You frustrated with apple at this point, mandy . If you could speak to tim cook directly what would you tell him . You know, i am frustrated. It seems like just because shannon didnt have a dollar amount, a stock price on him, along with the 13 other people, its really hard to place a dollar value, a profit value on a persons life, on my relationship with that person. And i am angry. And i understand shareholders and i understand hes the ceo of the very Large Company and he has to answer to shareholders. But im asking him and im asking those shareholders and other people who are on the side of privacy, im on that side too, but im asking you to try to put a dollar figure on your loved ones life and tell me if profit is worth it. You know, im sorry that shannons life doesnt seem as valuable as the apple stock at the moment. But it should. And so if we could start putting some value to our relationships in america, i think we would find ourselves in a better place. I think our relationship with our iphones is becoming too important. We need to get some relationships with things that can give us a hug back and things that can talk to us. Mandy, thanks so much. Thanks so much for joining us. Great. Thank you so much for having me. Our hearts go out to you. Mandy piefer, long time girlfriend of Shannon Johnson. Its heart breaking. I mean its heart breaking. You feel awful for her, no question about it. Now were forced to talk about the stock which is unfortunate. But we will. You know, one of the things i have said is apple seems to be digging in their heels. Politicians will get on other side of this. You have heard people say, boycott apple products. I dont think i think theyre in a loselose situation. Karen would disagree with me. I think either outcome is bad for them. If they dig in their heels too much, or if they acquiesce their client base will be upset. I think they win in the long run, but i dont know how they win in the short term. I think theyre worried about precedent, so like what does it mean for china . If they were just to kind of give in, so its a tough thing. So when you think of it from the companys stand point, heres a company thats beholden to the customers and the to the shareholders. They got 25 of their sales in china last year. If this was a precedent set here that the china could have access to the back door that could be a huge, huge issue for customers over there and for the company. It may not end up being the Growth Market that they hope it to be. Yeah, you know whats interesting there was news that the facebook president in brazil was arrested because they wanted the whatsapp messages involved in a Drug Trafficking case. Thats thats put in in other country, who say we need this to keep our citizens safe. Im not trying to side with anyone. This is going to come up more and more. This is something that obviously as the world gets smaller and were creating this situation that were in, its going to get that much more and going to be that much more difficult to make the decisions that everybody seems to be like everybody said, there is no aisles there, there are opinions on where they need to go. I think to guys point, i dont know this affects the stock all that much in terms of getting back to stocks. Im not sure this affects the stock price one way or another. Still ahead, is wall street ganging up on heavyweight bill ackman . Thats next. Youre watching fast money on cnbc, first in business worldwide. Youre not gonna watch it no, youre not gonna watch it we cant let you download on the goooooo youll just have to miss it yeah, youll just have to miss it we cant let you download. Uh, no thanks. I have x1 from xfinity so. Dont fall for directv. Xfinity lets you download your shows from anywhere. I used to like that song. At ally bank, no branches equals great rates. Its a fact. Kind of like social media equals antisocial. Hey guys, i want you to meet my fiancee, denise. Hey. Good to meet you dennis. Steve, other than making im here atme move stuff,rade trader offices. What are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place and lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim. Td ameritrade. Welcome back to fast. We have a news alert on Canadian Pacific and csx. Were learning that Canadian Pacific approached csx about a takeover in january. Csx then rebuffed the offer. And they want to keep the options open and would consider another overture to csx. Canadian pacific is committed to a separate deal with norfolk southern. These headlines were first reported by dow jones, but the stocks are moving on this news of potential deal and of course their approach of csx in january. Back to you. Seema, thank you. Canadian pacific, this is interesting. This is a bill ackman name. We have been talking about many of his positions. Frankly because many of the positions are doing horribly. Valiant being one of them in the news lately. I dont know. Call me a conspiracy theorist but i cant help but think it wouldnt be a bad thing if Canadian Pacific were or the involved in some consolidation, that would help the stock. I think the timing is odd. Why . Elaborate, conspiracy theorist. Well, just that you know, bill ackman as you said has been under quite a bit of pressure. One way to relieve that pressure is to have one of his positions move up nicely. A little distraction. And maybe a little if it were to be people people thought he was on the right track again, maybe well take the positions off. This is company thats actually been pretty aggressive about trying to do something somewhere. Csx over the last six months theres paper in this the options world in absolute size and nothing has come of it. The stock has done very little despite the fact thats huge option paper in there. Is somebody has been out there i think in my opinion sniffing around and all of a sudden, were starting to hear about this. Maybe gives it a lift finally. Guy . Theyre gown down to 32, theyre still in a defined down trend not unlike the transport iyt. I think theres further room to the upside in csx. But fades if and when it gets to 30 bucks. Now to another big ackman name herbalife. Surging 17 in the last month and now traders are betting the stock can go higher. Dan has all the information. Yeah, its inabout up about 25 in the last week alone. Call volume was three times average daily on average for options. One trade caught my eye when the stock was trading at 55. 50. 60 calls at 1. 10 and buying to open 10,000 for 4. 70. And thats up 18 from here. If you come to the chart this is the six year chart here. You know the break even is above the 52 week high. You see the move that the stock had. Obviously theres a lot of Short Interest here. 33 ackman is thought to be a good part of that. Many people thought he is trapped. The largest shareholder is carl icahn and everyone is gunning for mr. Ackmans position. If you look at this chart though, this was a beautiful well defined head and shoulders top. You saw what happened when the stock broke. It kept ongoing. But look at this. Whats going on here. This could be a shoulder. That could be a head. That could be another shoulder. And this a massive neckline. I mean, to me the thing not in a great technical situation. We know the fundamentals are in flux for this one. Maybe this is a short. Main kind of getting maybe kind of getting coverage to the upside or a long leveraging look to squeeze mr. Ackman. It was interesting how he gave himself a few more months. I think that smart board is one piece of work. A head and shoulders within the head and shoulders. But the point he was making which is an interesting one, is the street gunning for ackman. Of course. One thing about this, ackman he is a largely he has registration rights. Hes now filed to be able to doesnt mean he is selling. Canadian pacific. Canadian pacific. To be able to. Hes getting ready to take profits or nothing but be ready. Right. Hes taken another step to being ready. You have affirmatively answered. Valiant, i mean, that when that stock goes down, i guarantee you people are buying herbalife on the other side to run them in. You can laugh all you want, but thats exactly 100 . Just like shark are attacking and they see blood in the water. And defined how close look at his holdings. There are names in there are jammed together that are taking up a very large sum of his accounts. Yep. For more options action check out the show at 5 30 on friday. Coming up the final trade. At mfs investment management, we believe in the power of active management. By debating our research to find the best investments. By looking at global and local insights to benefit from different points of view. And by consistently breaking apart risk to focus on longterm value. We actively manage with expertise and conviction. So you can invest with more certainty. Mfs. Thats the power of active management. Final trade is sponsored by interactive brokers. Time for fast but not least. Everyone is talking about steve balmer and the amazing trampoline dunk last night. Im not impressed. You want to see a cool dunk, check this out. Ballmer was dunking in l. A. , guy adami was showing serious skills of his own. Look at that. Now, that is a dunk. The reverse slam. Under the legs. Cant stop guy. You can only hope to contain him. We used to call it mad hops. I have mad hops. I have my grizzly shirt on. Yeah. Pretty impressive, right . Play that over and over again. That might be what do they call those things when your phone rings cant have a ringtone as a video. Cant come up with it yet . Maybe i should make that up then. Thats what you call snapchat. He doesnt know what that is. Time for the final trade. Guy . I still love the airlines. We have seen nothing but paper, it was american, dell data, and uaw today. This has come in pretty hard from 135, i think if you see 125 thats you where you get long. If you want to be able to capitalize on any kind of rebound in the Distressed Energy debt markets i think oak, Oak Tree Capital is a good way to do it. Reached the high of 50. Came back in. Buy some right here. Guy . With marathon we talked about it yesterday, massive secondary, 726. I thought it traded pretty well. I think its day two. See you back here at 5 00. More fast money. Dont go anywhere. Mad money with jim cramer starts right now. My mission is simple to make you money. Im here to level the Playing Field for all investors. Theres always a bull market somewhere and i promise to help you find it. Mad money starts now. Hey, im cramer. Welcome to cramerica. Other people want to make up friends. Im just trying to save you money. My job isnt just to entertain but to teach you. Call me at 1800743cnbc. Or tweet me jimcramer. What exactly do the bulls want . Thats the Perfect Question to ask on a day like today because you ca