Were unusually quiet, with the average moving a fraction of a percent. Volume at yeartodate lows. Is this the ultimate bull bear showdown ahead of the jobs report tomorrow . Is this the calm before the storm . Guy . I say absolutely yes. I think weve been pretty consistent with this. I think the markets going to continue to rally. I think it rallies tomorrow regardless of whatever number comes out at 8 30. I do think theres a chance we touch 20, 25. I think were going to fail there. A couple of interesting things here. Exxon mobile down on today. Crude is now shrugging off potentially bad news going higher. I think the obx is going to have one of those days that it had a couple of weeks ago. This time opening on the lows. Closing on the highs. That coincides with the s p at 20, 25. In this showdown, the bulls are the temporary at least winner in your view. Theyve been a winner, yeah. Yeah. Definitely the winner right now. I think going forward, right now people are just tremendously fearful of being short the market. That theenl will stay in place. Tremendous amount of economic sort of news coming out over the next several weeks. People are playing against it. Theyre thinking that the risk is to the up side. People are covering shorts, youre seeing it in the beatendown sectors, playing it from the long side and waiting that sort of game out. I think the bulls are in control right now. I think theres not a lot of upside left. I think we grind a little bit higher and lay out your shorts. Were getting to a point that i think weve probably overdone it with certain sectors and certain names. Also fearful to be long, i would posit. Look at the gold trade today, up almost 2 . The tenyear yield. Going into the events that david is talking about, the boj, the u. S. Fed, all in the week of march 14th. So to me, the jobs number tomorrow sets up really poorly for u. S. Equities. You probably get to the 200 moving average. Consistent about 20, 25. At some point, if you cant get through there, and continue to act like it has since tuesdays rally, i do think you set up for a move where people start thinking about the macro again. Listen, its been my view, and ive been wrong the last couple of weeks for the direction of the market, but i think if we go back to the february 11th lows, well go through a hard, hard way, with the divergent policy. I think a strong jobs number puts the fed in a mind. Expectations of them having to raise, i think thats bad for the either way, they sell the number tomorrow. Either way they buy. Yes. I think either way they sell the number tomorrow. Goldman sachs outperformed again today. Theyre still buying the junk. Sell the bounce. 1963 to 2000. I definitely think you sell the market here. Banks were the late ralliers, but still the junk. Its not the fed people are focused on, its the ebc. Theyre worried about more stimulus coming out. You play from the long side in the short term. I disagree with you. Monetary stimulus is not working anymore. Theyre doing it in europe and theyre doing it in japan, and theyre doing it in china and its not working. Look how financial stocks all over the world are acting. See how it seeped into our financial stocks. Think about whats most important to me, as we get into april and we have the fed stress test, they already told our banks, tell us what your ratios look like with negative rates. Theyre going to have some sort of stimulus. Its getting people scared to death. Thats why theyre repositioning. Its absolutely having an impact. Im not saying its going to have a longterm impact, but short term if you see 2020, what sorts of stocks are the best from here to that level. Thats not that far away. Its not. I think the energy trade is probably getting long in the tooth. I do think crude overshot to the upside. I think were headed lower. I think people are trying to plow into banks now thinking theyll play catchup. I think thats wrong. What can overshoot to the upside from here . Im not sure. Health cares been under pressure a little bit. Maybe reversing to those levels. What i think will happen, though, im in steves camp. He says sell the number. I say rally first, and sell the day. Materials has to be if you believe in another leg, it still has to be they have to continue . 9 name. So people are forced you want to see the jump in order for us to have the next leg higher. They have to continue to participate. They have to. Because on a leverage basis, guys are getting hurt the most on these. These shorts are killing them. Just a couple of weeks ago, freport was a 3 name. Guys are forced to cover these names. The highest shortage risk, rallies as well. The next guest says stocks could be ready to take off. Lets go running with the bulls with oppenheimer, one of the bullish strategists on the street. 300 price target for the s p 500. Great to see you as always, john. Great to be here, melissa. What is the catalyst at this point . Because weve had a lot of bulls on over the past few days. And it seems like the running theme is that the catalyst is that things dont really get much worse, and they just sort of stabilize. I think that actually, they keep Getting Better at a creeping kind of rate. Its A Larry David kind of market. Youve got to keep your enthusiasm curbed. You know, curb your enthusiasm, right size your expectations. You just might be positively surprised. What we think here is we keep seeing an improvement in equities. We expect it to be tested, this rally from february 11th has been a very powerful rally, in consideration of all the worry that began from early in this first quarter. We think much like last year, we see fundamentals, the economic story is Getting Better. Its not great. Still some disappointments. You know, the you get consumer sentiment, its come off the recent highs. Services was a little bit weaker than expected. Sure. But net, youre still better than before. You know, were coming out of a particularly ghastly period, and we have a were dealing with a transition. Sure. Of technology disrupting commodities, the workplace, and the competitive environment in corporations. John, lets say youre right. Lets fast forward, 12 months from now. Were at 2300 on the s p 500. Which sectors will have been the best performers at that point . I think it will be the cyclical sectors. My favorites include industrials, materials, technology, consumer discretionary. Financials just this week, we went from an outperform to a market perform. Primarily because we still dont have any kind of a sweet spot on the yield curve. So what were looking for here is really the financials to play second fiddle in essence to the other cyclicals. John, we talked about the incrementally better data here in the u. S. , i dont think anybodys particularly surprised by that. The Services Number we saw last week, that was disappointing. Isnt it more about emerging markets in europe right now, and just given how much of u. S. Corporate earnings come from overseas . We have the dollar where it is. Isnt that the main story here about s p earnings for 2016 . I think related to the s p 500, it certainly is a significant component. But at the same time, were seeing companies hunker down in this situation, related to the emerging markets. And when you talk to people who are in the emerging markets, what you see is that companies that are operative on the ground there, are doing really theyre seeing the economys doing better than expected. I cant help but just think that in the last week, weve heard in the press, melissa and bill gates mention that things are improving in the emerging markets. And i think from your other guests, as well as from myself, what youll hear is the consumer class is Getting Better in the emerging markets. The real problem for them is exportation, for the energy producers, its a problem, and theres overcapacity. But the u. S. Economy is 70 tied to the u. S. Consumer. Exports are only about 13 of our gdp. Right. I think were in a pretty good spot here. You cant get too enthusiastic, but it does look like we do better at about a 15 gain for the s p 500 from here to the end of the year. Still a possibility. All right. Back to larry and david. John, thank you for joining us. Again, second biggest, 2300 price target. I didnt go to harvard, but i did take math in college, so 2300 in the s p, if the s p is going to make 120ish, thats a 19 and change multiple. In this environment, it doesnt make any sense. There should not be a 19 what are you selling . Not if its up in terms of earnings. If the earnings ratchet up, that changes the inflation. But with that said, i dont think we end at 120 either. You want to talk about multiples, the market has been buying multiples around 16 1 2, selling them at 18 1 2 times. Theres probably no way if we we have to break out of the mold. Yeah. Were not growing revenue. Heres the deal. Companies create synergies to figure out how to drive earnings. But at the end of the day theres no chance we come close to that. 19 times earnings is insane. I think earnings are going to be ratcheted down before they go higher. Look, he made a patented overgeneralization about companies on the ground in emerging markets. Thats not the case. One of the first largest economies in the s p, one of the first to report earnings was intel. They rattled off a whole host of words that theyre saying. He talked about cyclical tech. Intel is the poster child for cyclical tech. I dont think what he said is a hundred percent accurate. Do we not have any buyers of the 2300 price target . Wow, across the board. Look him up on the google machine. Ill do that right now on the break. In the meantime, coming up, one group of stocks after bank of america changes its tunes. Plus, disney shares surged 15 off recent lows. The reason why might surprise you. Well tell you whats driving the growth at the media giant. The most hated stocks are turning into this years darling. Well tell you which names are about to join the pack, and if you should be chasing those rallies. Much more fast money still ahead. 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. Were always looking for ways to speed up your Car Insurance search. Heres the latest. Problem is, we havent figured out how to reverse it. For now, just log on to compare. Com. Plug in some simple info and get up to 50 free quotes. Choose the lowest and hit purchase. Now. If youll excuse me, im late for an important function. Compare. Com. Saving humanity from high insurance rates. No, youre not yogonna watch it tch 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. Welcome back to fast money. Weve got a news alert on the battle between apple and the fbi. Lets get to josh in San Francisco with the details. Josh . Reporter well, melissa, a number of Tech Companies in Silicon Valley are filing briefs today in support of apple in its fight with the fbi. That deadline to file now less than three hours away. Twitter, along with 16 other Tech Companies, that included air b and b, linkedin and square came to apples side. They argued in a joint brief that the government does not have the authority under the act to force apple to rewrite its own software. In addition, intel and at t filed. We are waiting from microsoft, facebook and google parent alphabet, all of whom plan to file in support. Missing from the list, samsung. Samsung has told the press that customer privacy is extremely important, but that the Worlds Largest smartphone vendor has not decided whether to file a brief in support of apple in this case. Cnbc did reach out to the company for comment. No word just yet. That deadline to file is today at 5 00 p. M. Pacific. Melissa, back to you. Josh lipton, thanks so much. Interesting to see how all these Tech Companies are rallying to apples defense. There was a case a couple of days ago, facebook executive in brazil who was arrested. The authorities want it to open up a message in order to build a case in a Drug Trafficking situation. You know, its funny, we talked about it right when this thing came out. I was surprised facebook hasnt been in the news on this situation. I would have to guess this gentleman had not going to call him a gentleman, this guy had this terrorist had this app on his phone there. As far as apples concerned, theyve dug in here. The fact that as many people as can come to their aid as possible, its better for them. Bank of america coming out with a note turning positive on the group of stocks. The firm seeing the most value in marathon petroleum, giving them both buy ratings and giving va lero neutral ratings. Those were all upgrades from previous ratings. I think weve seen a nice move in the space, since we saw gas demand for gas pick up. You look at it and say demand for gas, lower oil for longer is a tail here, saying youve got to buy the refiners. Theyre going to make the move higher. Theyve had a move higher. Frankly, i read this report and i believe its more of a cover your shorts type of call. I dont think those are going to be out of the gate, taking off to new highs. I do like the coastal names. The valeros of the world, i take a look at that. The other names i would stay away from completely. If the oil does rally, the risk is you cant get the cheaper oil. So the coastals actually benefit. I would probably be with valero for the long term. For the short term i might wait for a pullback before i jump in head first. Interesting time they get this report. They had a Conference Today with all the refiners reporting. I know were conspiracy desk. But it seemed a little bit a positive note because theyre having a conference in which i dont want to accuse anybody of anything. Youre just putting it out there. And the conference is today. You guys do the math. All right. I think if im going to be in the space, id rather go e and p. Exxon mobil is not going to move. Look at epx, the index. Up next, costco and kroger getting a hit. Kroger is down 7 after it reported weaker than expected sales. Both stores pointing to the warmer weather as a factor during the quarter. Dan . Listen, costco has been a massive outperformer. Theyve been killing walmart and target, who kind of cater to a slightly different consumer. But whats happened here is these this was really bad. I dont mean really, really bad, but there was a whole host of things. Fx hit them. Lower gas prices. They sell a lot of gas. That hurt the numbers here. Theres a lot of things to consider when you think about a company thats only supposed to grow earnings, trading at 27 times. When you think about a target or a walmart that has actually been stuck in the mud a bit, they traded a much lower multiple but dont have the same groethd. If you get target back in the mid70s, i think thats the way to go. I think its actually that the s p traded down to 1810, give or take. There was kroger for the fresh market, the headline came out. Amazing the recall. Its like when you get so many other things scary, actually. Ive got to tell you something. Ive never said that. Its actually hung in there pretty well today. You wonder if this forces krogers hand a little bit so they come back to a table they might never have been at. I think tfm is pretty interesting right here. Look at costco. The costco numbers are not that bad. This companys actually, i think, finding the right path. I look at it and say, costco in general that was kroger, by the way, my apologies. Costco, when gas prices start to move, whats the impact on their margins . Everything they have in the tanks, theyre going to benefit from. The margins are actually going to pick up. I believe lower oil the problem is, costcos earnings were 10 skewed to the upside because wholesale prices of gasoline come in a lot more precipitously than the retail. Right. That was a skew that people probably didnt realize. So as that normalizes, their margins get compressed. Costco probably still goes lower. Coming up, disney hosting its annual Shareholder Meeting today. What the ceo said about espn. And well bring the comments next. Im melissa lee, and youre watching fast money on cnbc. Heres what else is coming up on fast. Its a trap. I must keep this to myself. Frank underwood may be keeping it to himself, but we arent. Well tell you the one sector that could be setting up as the biggest value trap. And how you can protect yourself. And later, some of the most beatendown stocks in the market are suddenly surging. Show me the money were going to do better than that. Were going to tell you whether to trade it or fade it when fast money returns. Welcome back to fast money. Disney annual meeting wrapping up earlier this afternoon in chicago. Julia boorstin is here in the flesh to talk about it. Melissa, great to be here. The big news is, disney gave up the numbers on the resort business. They have new massive cruise ships under construction. Theyll be completed in 2021 and 2023. And two more star wars films in the works. Visitors will be able to experience what its like to fly the millennium falcon. The reelection of the Board Members was approved. Two proposals were rejected also as expected. The big hot topic for the q a portion of the meeting, an issue that has been weighing on disney shares. Espn is a healthy business, and a large business, and exciting business and a Growth Business. Will it grow at the compelling rate weve seen it grow in the last 15 or 20 years into the future . Probably not. But still should deliver growth for the company long term. Were not in any way taking matters lightly in terms of speculation or whats been said or whats believed to be the case about espn. Iger stressed disney is looking for new ways to bring espn and disneys other brands to consumers. When iger talks about a Growth Business and espn, does that take into account the subscriber declines or losses . Because the Piper Jaffray we saw in disney today, 120, they said espn is going to that the subscribers numbers will go up in the future. Advertising on espn increased to help compensate for the declines, in subscriber numbers. Hes talking a lot about taking espn in its digital format. If you subscribe to cable, you can watch espn wherever you go, on the go. I hope they i think they believe that will increase total viewership. And theyre looking for other ways to build out that business. In all the different ways they can reach consumers through mobile especially. How much do you talk about star wars . What weve seen so often with a lot of the star wars related trades, imax, disney, have ramped and after star wars it was a sell event. There was a lot of talk how star wars is not just one movie. They have another one coming out in december. And theyre working on many other star wars films. I think iger wants to keep the star wars train going as long as possible. If they can keep on releasing one film a year, it will be a way to maintain the consumer products. Star wars is not just about the movies or consumer products, but they have it in the parks. It will drive a lot of people to the park that may not have many other reasons to go. Im sure guy wants to know what its like to fly the millennium falcon. I already know. Ive never seen the movies. But ill tell you this im being honest. Its there, for crying out loud. Okay. Hes a hundred percent right, the growth in the espn is not going to be as robust as historically, right . The stock got revalued. We traded down to 14 1 2 times forward earnings on february 10th. Steve said it has to hold 86 1 2. It traded at 86 1 4 that day. That reversal is viable. Whats the right multiple . Its probably right here. Youre an owner. Im still an owner. I added on the way down. For me, i would look at this as, is it a fair price . I hope not. I hope that trades higher. I see the sell levels, 105 basically to about 108. Youre playing it right now for seven, maybe another 10 . To see how it shakes out. I do believe without espn, i do believe in the skinny bundle. Theyre going to have better margins, and hes concentrating on parks. 16 billion from parks. I think hes concentrating on the rights things. What don skipper would say about espn is they would be included in the skinny bundles. Thats right. I think even in the negative even in a world of skinny bundles, theyll do better than the rest. Julia, great to see you. Great to be here. Still ahead, the pain trade no more . Some of the most beatendown stocks are all of a sudden soaring. The one rally you dont want to chase. Well tell you what it is and why one technician is sounding the alarm. 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. Theres a lot of places you never want to see 7. 95. [ beep ] but youll be glad to see it here. Fidelity where smarter investors will always be. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. When it comes to the fithings you love,. You want more. Love romance . Get lost in every embrace. Into sports . Follow every pitch, every play and every win. Change the way you experience tv with x1 from xfinity. Welcome back to fast money. Stocks closing higher today with the dow and s p 500 posting their longest winning streak since midfen. Energy and industrials led the charge as the best performing sectors. Heres whats coming up in the second half of fast money. Hurlts so good. Some stocks are suddenly surging. Plus, hewlettpackard enterprises surging after hours. Well hear from Ceo Meg Whitman on what drove the quarter. Financials surging more than 4 this week alone, making it one of the best performing sectors. Up more than 12 from its recent low. Our next guest says it may be time to fade this rally. Lets go off the charges with ari with oppenheimer. Hi, melissa. For the financial sector, were not buying here. We see this as a sell on strength sector for the very simple fact that we expect performance in this group to remain anchored by low Interest Rates. Lets look at some charts. First, the correlation between the two. The orange line here, teyear u. S. Treasury yield, blue line financials relative to the s p 500. We can see as rates fall, financials head to underperform. And vice versa. But with Interest Rates approaching a very critical level at 2 . We think that is where financials relative performance also comes into line. Lets get into some longer term views here of Interest Rates. Its a very integral part to how the sector performs. And heres the longterm view. What do we have . We have a 30year downtrend. We have an 8year downtrend. We have a 2year downtrend. Very difficult to make the case that Interest Rates are going to stay higher. Were right at the lows. Rest assured the bottom of this chart is not support. Grs in fact, to make the case that they can go lower, look at how u. S. 10years are versus the ultra lowly rates in germany and japan. We can make the case that that 2 relatively a relatively high level. We think u. S. Rates in position to play catch down. How do you trade it . Heres the financial ticker, xlf. Rally going on here. Nice surge. A little bit of a bear market rally. I think if you are in this stock, you can stay high above that breakout at around 2170. But as you get up to 22. 90, theres an important retracement level there, with the falling 200day moving average, wed be looking to sell it right there. What happens if Interest Rates stabilize here and dont go lower, dont go negative . Can we hold on to the gains that weve seen . I think that is the best case for financials. The best case is rates moving sideways, a market performer. I just dont see the risk reward there when the trends dont support that just yet. Id rather place my bets elsewhere. Ari, thank you. Ari wald of oppenheimer. Youve been in financials, what is your still in bank of america. What is your case for staying in with the most recent rally . I think its a tradeable stock right now. Bank of america for me, its approaching that balance level. 14 1 2 in bank of america. But theyre all approaching their balance levels. Goldman down 13 , bank of america down 20 , if you look at all of these, you want to sell them around the 50 and the 61 retracement. Theyre all right here with the dollar. Are you selling . Im selling. Youre going to sell . Okay. Lets listen to bill gross today. It was on your program today. You said it better than he did. There will be akin to the utility stocks without the yield. We dont have the dividend yield. I agree with aris charts a hundred percent. If you get it up opening tomorrow, the next few weeks, all it will be is about lower rates. I think you can sell the u. S. Banks. I think the xlf sets up well for earnings in april. Fed stress test. Do you sell them here, though . Theyve been beaten up so much on concerns about, you know, the energy tapes. You know, ripping apart their Balance Sheets because of bad loans. Maybe overblown. Probably overblown. Do we continue to move up toward that 14 1 2 level . Up 14 . I know. But we got smacked down in a short period of time because of concerns about the loans. Those concerns are so overblown. In my opinion. Its not just energy loans here in the u. S. We had jamie dimon talking about it earlier. Its about europe. Its about global commodity prices. Wait a second, do you think oil is going higher or lower . I think oils going lower. So it doesnt matter, because heres the thing. Because the way theyve priced these assets, there are very theres never been a case really that i can remember where you had a first line loan in some of these big commercial banks that theyve lost money on that transaction. It may take them a while to sell the assets. Thats on my side. Six months, nine months, a year. But i can tell you right now i think Oil Takes Another leg lower. It depends on your time frame. You have to look at the most recent bounce. Is that Worth Holding on to at this point . In this case. Quickly, we started the show talking about the fed and what theyre going to have to do. Get a good number tomorrow, it will force them to raise rates. But it only moves the front end. Did you hear what ari just said . The back ends going down. The yield curve is going inverted. Thats not good for banks. I still think banks go down to 1. 25 . They dont control anything but the front end. I think youre going to have, like you said, a trading vehicle right now. If we have a blowout number tomorrow, if theres some stimulus coming out of the ecb, youre going to have a trade based just on sentiment alone. Not saying the rates will go higher, just on sentiment alone that will take the space up. Hewlettpackard enterprises, the details from the call in the newsroom. Seema . Hp enterprise completed its first full quarter as an independent Company Since it split. Meg whitman said its already seeing the benefits, saying customers better understand the companys strategy. The ceo of Hp Enterprise said its innovation engine is firing on all areas, which is driving strong results. Now, comments on the tech giants cash flow, affected by seasonality and timing. But it does expect cash flow to improve as they move into the year. Hp also reiterating its commitment to returning cash to shareholders. And that Share Repurchases will be the preferred method to return capital. Whitman also had positive comments on china. And its deal with xinhua. Listen in. As weve discussed before, we are seeing strength in china, as customers anticipate the completion of the deal with xinhua that we announced last year. Were working through the final Regulatory Approval with china and expect the deal to close by the end of may. Up about 6 after hours. The company did report better than expected earnings. Keep in mind, melissa, the stronger dollar continues to be a good headwind for the global player. Thank you. It goes toward stock repurchases. Thats good news for the stock. Its dirt cheap. Like 70 or so of book. All the metrics arent expensive. The bad news is, theres really no growth here. The Earnings Growth is just not there. Can the stock continue to grind higher . I think so. But theres not a lot to be excited about there. Go pay head. Hpg or hpe. Hpe. Id rather be on megs team. Thats meg whitman, by the way. Im not on a firstname basis. I apologize. But you just made yourself. By the way, guy was wondering about Growth Prospects for hpe. Hpe Ceo Meg Whitman, ms. Whitman, will be on squawk on the street tomorrow at 9 00 a. M. Eastern time. So you wont want to miss that. Especially in the back of the 6 pop in the afterhours session. Still ahead from trash to treasure, some of the most hated stocks in wall street last year, are leading the markets higher this year. The four names that could be next. Plus, shares of solar city soaring today on rumors involve ing elan musk. There are a few names outperforming the markets in the recent rally, not your usual suspects. Joint global, all seeing huge moves this week. Despite falling 88, 77 and 86 from their highs this year. If theres hope for these names, what other beatendown stocks could see similar rallies. Hurts so good trade. Dan, take it off. Listen, my view is simple. You want to be very careful, you know, chasing some of these stocks that are highly levered. Its a performance chase, especially after youve had this large broad market rally. To me i think theres a lot of risk. If the market turns, these things get hit very hard. If you want to play this sort of thing, you may want to look at the xop, similar to the names that they just listed there. This s p oil and gas etf is down from 82 two years ago, down to about 28 today. Really steep downtrend here. It has the potential to run. Youre not going to get the sort of torque that you had those names that you just listed. You dont have the aid yo syncretic lift in the single stock. The most intelligent thing in that whole thing, is things are very simple. I agree with that. I mean, but this sucker was 83 and change. Now its trading 28. Its had a bounce. Youve seen bounces of this magnitude numerous times in the last year and a half. Yeah. Im surprised at you, dan nathan. Heres the thing. This wouldnt be the sort of thing, if you really do think oils going to move, a lot of the other etfs we talked about, heavy levered to lets say exxon, chevron, theres a hundred stocks in the etf, not one has a single 1 1 2 weight. The opposite of all dans trades, though. As guy pointed out, over 20 . I get what youre saying from the risk perspective. I dont agree with it, but i do understand what youre trying to say. Lets see if everybody likes not one thats one thats gotten quasi pummeled, apple, but not in that space that had the incredible pop. Apple is only up 9 from the recent lows. So id rather bet on apple continuing to move forward investigate us a freeport, or lets say an xlp. So its sort of like a slow and steady sort of thing . Yeah. I feel like its coming back. Even though people have talked about iphone peak sales, id rather go with we talked about stocks that got pummeled and ready to rip back. This one apples got they got pummeled all right. The market hangs in there. Up 10 , 20 . Whats your pick . I chose jcpenney. The stock thats been totally derisked. I understand the problems they have. They get a big, you know, loan to repay iing to 2018. I think the new management teams got their eye on the ball as far as restructuring this company. Theyve got brand loyalty. I think this will be a company that youll look back five years from now and say they didnt go bankrupt. I know thats the big concern. Or go out of business. I dont think its out of business. Do you need jcpenney or not . I would suggest most analysts on the street would say you need jcpenney because of their offbrands. Its up 62 . Havent we seen the breakout in this already . No, i think management shift is going to occur. Weve seen breakout, no question. But look at the longterm charts. Go back four years in this stock. I wanted a stock that got pummeled and ready to breakout. You said a breakout on top of breakout. Were talking about a longterm breakup. Guys, come on. Go. Your turn. All right. I think i did it right. Okay. Lions gate. Lets talk about this. This stock that hurt so good is 44 stock. Its been cut in half. I think you had the capitulation february 16th when it traded 16 and change on monster volume. I think the reason it sold off, people said to themselves, how can lyons gate trade when disney is trading at 14. A couple other reasons as well. Ive always been a fan of michael burns. He will figure this out along with the rest of the management team. I think lions gate goes higher from here. Hurts so good, baby. Lgf. It was down 35 . Youre all right. It wasnt you and i. I feel better. Im going to think about this. Stop playing that song. Its awful. Were going to go to break. Coming up, is there a crack in musks empire . Why rumors for so lar city for the billionaire. Welcome back to fast money. So lar city shares surged today. Vague rumors around the marketplace that elan musk would take the company private. Hes already got about a 22 stake in the company. Dan is over at the smart board breaking this down. At one point it was up almost 20 on the day. Two and a half times daily average volume. A block of calls were open when the stock was at 3600 of the april 25 calls. They break even at april expiration at 2710. Up about 18 . About as much as the stock was up today. When you think about whats going on here, obviously the stock has been depressed. It has the sharp move into the end of last year. Its been going down. Heres the move here. The stock, ipod all the way back in late 2012. 8 here. It hasnt been on a fantastic run, if you just look at the downtrend. But heres the thing, its got about a 2. 2 billion market cap right now. Growing sales at 50 a year. They lose a ton of money on those sales is the problem. The shift fits into mr. Musks whole world view, as far as renewable energy, and that sort of thing. But heres the thing, how do you play this stock . If you wanted to find your risk with options, options prices are really high. So people are either playing for much lower lows, or a squeeze higher, like mel said, 38 short interest. Elan musk owns 22 of it. He can take this thing private with private equity pretty easily. But its going to be a moneylosing thing for a while. Take a look at the forms of the stock. Down by about 56 . We said this time and time again. Solar has nothing to do with oil, except that the charts do. They do correlate. So whatever you want to say about how much electricity generates from diesel, which is 2 of the worlds electricity, theres still a correlation. Recently youve had diversions. But to your point, its been almost a 95 correlation. How do you trade that stock . With that rumor out there right now, that short interest, i dont think you can shall short this stock. Because another headline like that comes out, up another 10 , 15 . This is the classic, im talking my ball and going home. Thats what youve got in solar city. If you want to be in a name that makes more sense, its tom warners sun power. Yeah. What do you make of this in general for elan musk . This would be a pretty big venture for him to get involved in. I think it would. But every time we think its too big for musk, he does something. Everything elon musk has done has peaked. Do you think his days are over . I think so. I am just so in disyemt with you. I think this is a guy whose best days are ahead. Whether you agree with how his projects get funded or how much money they lose or whatever, the guy is really doing multiple things. I dont think hes a bad guy. Im just saying as far as stocks he could be behind that hes the top holder in, i think that let me hey, steve. I think solar city has i think hes a great guy. The next bull market cycle, space x is going to be the biggest ipo youve ever heard of. The guys got another act. The other thing you have to realize, the investorship from energy holders to technology holders in this space has been tremendous. So they buy into that. They buy stocks for different reasons. So you see a real shift in that investor base. That will keep continuing. Is that a good shift . I think its a good shift, because they buy stocks for different reasons. Theyre buying stocks for different reasons, different growth opportunities. You could bake in different multiples for that reason as loan. Solar city, i wouldnt be short this stock. I agree with guy a thousand percent. Trade, longterm, not something i would jump in and buy, but i look at tesla, i love that stock longterm. Check out the bull show tomorrow, 5 30 p. M. Eastern time here on cnbc. Coming up next, the final trade. Here at td ameritrade, they work hard. Wow, that was random. Random . No. Its 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. Theres no way to predict that. Td ameritrade. In new york state, we believe tomorrow starts today. All across the state, the economy is growing, with creative new business incentives, and the lowest taxes in decades, attracting the talent and companies of tomorrow. Like in buffalo, where the largest solar gigafactory in the western hemisphere will soon energize the world. And in syracuse, where imagination is in production. Let us help grow your companys tomorrow today at business. Ny. Gov i am a technological breakthrough. This morning i read over 4000 articles on leukemia. In less than a second. speaking japanese i can understand euphemisms, idiosyncrasy and complex metaphors. I know every detail of every public Quarterly Report in the last 20 years. And im just getting warmed up. Hello. My name is watson. Together we can outthink the limits of whats possible. Welcome to the cognitive era. Time for the final trade. Dan . Biotech stocks outperform the s p in the last month. But the bounce is running out of steam. Sell the xpi here. Apple, bounce not running out of steam. Probably another 10 or 15 from here. Steve . Seaburg, i would be a seller here. The fresh market. Im melissa lee. Thanks so much for watching. See you tomorrow at 5 00 for more fast money. Dont go anywhere, mad money 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