Hoover. When billionaires buy gold and banks horde cash, should you run for the exits . I think we know where im come down on this. [ laughter ] yes, the answer is yes. No, no. But i think there is a really good point. One soros buying gold, hes been doing that but Commerce Bank hoarding cash to me is probably the biggest thing. It shows why its not going to work because they are doing the exact opposite thing they are supposed to be doing and spending that money. They are hoarding cash and when less cash is out there to buy things, there is less dollars or euros chasing after things then those things, the prices go down and if you look at the Federal Reserve monetary base, which is the dollars in the system the Federal Reserve controls, that has been a very tight correlation with the s p 500 since 2009. This is what got me bearish. That flat lined. Monetary base, which is the dollars out there flat lined. No longer going into stocks. You put that well because they are pulling back because it cost them money to store money at the ecb. They dont want to lend it. The demand is low. They are considering putting in a vault. And i get that and its hard to argue, first of all, soros stepping back in to be more active in trading his own book is something that really hasnt happened since 2007 when he was rightly very bearish. Thats not him calling right now. Sorry. But ultimately, its a case where that makes sense to me and we heard very powerful important investors make claims there are things that bother them and things that bother me but comparing that and Commerce Bank is not a specklator. Commerce bank is saying im going to save this bank money by parking anytime a vault. This is someone doing something thats their job to look for ways to save the bank money and okay, i get that the big question is but to me this is not a systemic risk. You take it two or three levels and say the system is ripping apart at the seams but this does not worry me as headline. Is it systemic with the fact the banks are within 10 of the 52week lows. When you thick of banks, they are supported to lend it out and something they see there that just spooks the heck out of them and my biggest problem to the u. S. Is look what happened to yields in the last week. Our treasury yields and european banks there is 10 trillion negative dead out there in the world but i look at european equities and Japanese Equities have done the exact opposite thing of the intent of all of this. So i get worried here when i start looking at very economic licensetive sectors like autos, home builders, airlines, like retailers and all act like that. However, and im not pretending im a raging bull because im not and been wrong for awhile. I thought this would stop 100 s p points ago but here we are with less than 1 of alltime high in the s p. The question thats begged to be asked that i cant answer is if everything we just talked about today and over the last few months doesnt stop it, what is . So to me it comes down to what tim has been saying. Its a scare thing. People are parking it in the spring break. You know it and sure enough the deck collapses. Just arent going to be an investments. They should be trading maybe a fraction of the book value. Thats a reality. And the world and european banks have much better Balance Sheets than they had before the crisis. A world where they are refinancing did nothing and ebc and its a bridge stocks may be very valuable. When i look at Deutsche Bank in the world so we also saw copper today down 1 . This is the chart of the day and this is an interesting one. Right. And here is why copper is important because copper breaking below 2, right . That means and one point today if glen core gets downgraded, european banks are on the hook and credit. They cant pay their bills. Well have no money left. Might be back stocked at 2. Copper at 2 three months ago, four months ago. Copper is 15 off its highs and granted not rallied dr. Copper is supposed to be a sign of the economy not going well. So you can blowholes in whether copper should be trading below two but the reality, this is priced in there. These guys continue to improve the Balance Sheet selling off assets and not dumping money. They have been downgraded. Right, glen european banks on the hook. Its 100 billion of unsecured debt. They are fine. They might get downgraded. What i would say about copper, it wasnt even a month ago china announced that with steel. Steel prices down 50 . Steel capacity being taken slowly. Not fast enough. Youre at a place where look at the crb and i realize copper is an important part but you talk about the ad space, look what is going on with prices and hot rolled steel and a lot of things that firmed up dramatically. Last time i checked commodities, what do you want . Im actually long iron or steel and mostly long copper and oil and i think these are places where you actually have supply issues. I think you do have a deficit in copper and balance out in a month and a half. Were hearing from people and Big Industrial metals. How about you, mr. Bearish . Listen, i think oil is a big head fake here and gotten back up to 50 and up 95 from those 52week lows but its important to remember it was cut in half from a year ago level from 2015. When i look at oil, its a function of the dollar and that is a function of the u. S. Federal reserve inability to normalize Interest Rates and that tells me there is stuff going on here. I wouldnt be buying oil for the breakout and a lot of people got excited with the xle at 70. Moved 100 . We get excited tomorrow, either. I think oil is probably capped. Look at hedging and where guys sold off so they probably cant be as operationally aligned. Canada coming back online and nigeria is better. You dont go and run oil now but to say the 100 move off the bottom is garbage is saying oil doesnt belong at 50. What im saying to you, the s p is only where it is because it obviously energy names, material names over shot to the downside and have this massive boomera boomerang. The nasdaq which is some of the Largest Companies, the nasdaq, the Top Five Holdings are some of the Largest Companies in the world. Apple, microsoft, google, make up 40 of the index. Thats down and well off the alltime high. You dont believe the rally leadership that got us back to 2100 in the s p 500. Mr. Deck is going to buckle. What are you going to do. Ive been saying doesnt want to go down. With or without him. 1. 65 in the u. S. Tenyear and whatever that means in german ten years. I think rates go significantly lower. A bizarre trend has been gripping the markets right now. Something has got to give, right . Bonds, gold, stocks, they are all rallying sign tmultaneously. Julian emanuel is u. S. Director. Julian, always good to see you. So what does give . So, well, we do think gold goes higher. It continues to work higher. Clearly, there is a lot of investor support. To us, it is actually going to give because if you go back what weve seen over the last four or five days is clearly in reaction to february until fridays disappointing jobs report. No doubt about that but when you step backtracking 2 and earnings like they are going to grow. So our view is when you get to value, into the summer those numbers are going to normalize and bond yields arent necessarily going to go down anymore. So there would be a spike. Looking for two fed rate hikes. Nothing dramatic. The fact is when yields are this low on, sends a signal to investors, who, by the way, and look at the dialogue among yourselves. There is a lot of fields in the markets. Send stocks higher, what does it do to the last leg. Actually, it will. Prior, the confirmation that the economy and thats why the fed is hesitant because it wants to see more data. Sorry to cut you off. Typical rate cycle trying to get back off the bottom. Even i have to admit that. There is absolutely nothing typical about it and part of the fe fe fe fe feds calculation and the message we have here and the fed needs to keep psychology moving in a forward direction but we think the economy is going to do it. Let me ask you this, everybody we talked to or i talked to says why are we buying stocks because yields are low. I can get 4 or 5 or 3 in the u hi utility. Shouldnt stocks go down. To me the black swan for the market is rising yield when is youre asking about or talking about. You dont think thats going to happen. Not initially. I dont think thats going to happen now. We differentiate its not all stocks. If yields go higher, the defensive stocks are extraordinary vulnerable. Consumer staples and utilities alltime high valuations, more money going to passive investment there and minimum volatility funds. Really one of the only growth areas exceptionally vulnerable to unreform in that kind of environment but the message is, the economy me is moving forward and as much as stocks look over valued based on the time since 2008, you are two full turns below average bull market multiple peaks. Were out of time but i have one last question because when you talk about the fed and having to move because of psychology, sounded like you think the fed is going to move simply because of market psychology and not because it is seeingment in the economy. Its got to make a move to keep everybody feeling pretty good. Its a selffulfilling prophesy. If they raise rates, people will feel better. Absolute will you how it works. If anything friday shows us that the bar for getting more aggressive again is perhaps lowered, the fact is break even unemployment numbers are 100,000 a month. If we go back to 150, thats okay s okay. Thank you. If i heard that and i did hear that, i would think that [ laughter ] good. I dont believe the fed then when they say that were going to raise rates because the economy is looking better. Listen, gdp tracking or whatever, inventories are way up. You need the back end sales to reaffirm that number. Im not an economist that sounded good. Pretty good. Sounded fantastic. Listen, absolutely think the fed has to move not because they want to, not because the economy is Getting Better but need to give themselves runway and cushion. They know it and realize it but you ask richard fisher, ask him, i encourage you. He knows the real deal. Listen to what he says and think about what he really wants to say if you strap a lie detogethdetector on him. He doesnt want to enlightening us too much. Right. Up next, tesla tanking into the close on safety concerns over the model s so how worryie should investors be and is old uncle carl the contrary indicator, its the chart you need to see and later, several stocks that were given up for dead are heating up big time in june. The names and whether there is room and time to get in. Much more fast money right after this. The call just came in. Shes about to arrive. And with her, a flood of potential patients. A deluge of digital records. Xrays, mris. All on account. Of penelope. But with the help of at t, and a network that scales up and down ondemand, this hospital can be ready. Giving them the agility to be flexible reliable. Because no one knows like at t. Welcome back to fast money. Tesla and suspension problems in the model s and the company is going to offer a more affordable version of the model s said sedan, tim . Right now we know the army of tesla owners are ridiculously loyal and its a great car. The question is is it a great stock to own . I think the reality is that after that cap raise, to me, youve kind of broken the water so to speak. I think youre going to see more and need to see more. I think these guys are still burning cash fast, the Free Cash Flow continues to get pushed out. Its really about valuation. There is a couple stocks i continue to rail against and mostly on valuation. This is a company where the expectations on production are still overly optimistic but the reality is even if they are getting there, the stock is not worth this. It will never dominate the main stream. I understand what youre saying about the cap raise and concerns more cash will be needed but isnt this of trying to get the cash by generating the volume of sales at a lower price point in ordinary toer to the time . I would say thats a good point. I think the news today says not the you mean the safety not the safety one. The fact they have a 66,000 model s shows you there is real pricing pressure and the model s but they didnt drop the price is a different feature. I mean okay. Thats a good point. Whether you want a 35,000 one or 110,000 one. By the time the model three comes out, the model s will look pretty dated on the external. They have to keep reinventing. You cant put another letter after the model name and got a new car here. Thats what gm and ford does. Those letters confuse me. S and s. Its funny because they are only two letters, s and x and thats confusing. Im not that bright but made a good point about the economy. Spot on. The conversation for months, how do you trade the stock . I said a couple weeks ago it traded really well off the secondary. It was trading 208 and priced it at 215 and went north of 230. Not a great day today. Stay long in my opinion against the 215 left couple weeks ago. Well, i would be taking profits of tesla now. I think youve got a lot of uncertainty going on. 240 looks rejected fairly easily. That was a resistance point before i would just get away from this one for now. Up next, when this man talks, wall street listens but is carl icahn quietly becoming the ult my contrary indicator. Well explain, next. Im melissa lee and youre watching fast money, cnbc first in business worldwide. In the meantime, heres what else is coming up on fast. Here is what bank of america says can happen to crude if one thing happens. The strategist behind the call will reveal what it is plus an Unlikely Group of stocks are sizzling as we head into summer. Hot, dang hot, real hot. Well give you the names and tell you if they are still worth a bond when fast money returns. Using 60,000 points from my chase ink card i bought all the fruit. Veggies. And herbs needed to create a popup pickyourown juice bar in the middle of the city, so now everyone knows. We have some of the freshest juice in town. See what the power of points can do for your business. Learn more at chase. Com ink. Welcome back to fast money, backing out of it and calling to get out of space. I think listening to what you said he said, i get help and he has a couple real good points. You know, i think there is trust. Ive been saying it, i think that you have a sort of a false market void by zero Interest Rates and you have to be caware of it. If you listen to him, you may miss out of hefty gains for stocks to continue to make new highs. More recently the market over heated and said a day of reckoning would come soon. Is he right or is carl a bit of a contrary indicator and granted, we do respect him as an investor. Love carl. Made great calls. Great on the show. But on these macro calls, should we listen . You got to listen. I mean, you dont have to agree but absolutely because i think hes saying in some form including tim with everybody on this desk. When he made the last comment, i think he said it before the melt down that we saw in february, the guy looked like a generous subsequently weve seen what happened. Everything he said you should absolutely listen to. Carl will be the first to say, by the way, he doesnt know what its going to happen. We can call him a counter indicator or whatever but pointing out what were trying to point out ourselves. Carl is not alone, first of all. A lot of people had been indicators on this call for six months, at least and its argued you can make an argument if you said this a year ago, you would have been right. Pessimism in the market, i say what i think i said which is that repwe prayed for a correct in this s p a year ago. It strange we havent had volumevolume volatility. I think hedge funds, under performed and geniuses in february. Burned it through and i think hedge funds are actually missing the benchmark and will push the market higher. So, that again, i say this all the time is the biggest fear for me is that we get a rally, fear of missing out and get this melt up out there. I think it doesnt but in terms of carl, two things i would say, one, everybody will say we miss this, missed out. Over the last year s p is up half a percent. What did you miss . You didnt miss a thing. Soros and carl look at the market a different way because they are managing their own money and know this game is about capital preservation. Eke out 5 to 10 or lose 20 . Better to stay in the game, live to trade another day. Up next, bank of Americas Research say as potential black swan could be looming for oil. Hell be here to tell us what that is and just the other day, there was a rumor kellogg was in play and traders are betting another consumer stock could be the next hot takeout target. Well give you the name when fast money returns. Welcome back to fast money. The dow and s p, here is what is coming up in the second half of the show, is clinton bad for biotech . How the democratic president ial nominee could impact the space and why is wall street so nervous in a special report, plus the, summer is upon us and one Unlikely Group of stocks absolutely sizzling. Well give you the names and trades but first, treating today for the 2016 highs snapping a threedahl rally but a black swan event could be in the cards for crude. The head of Global Commodity Research at bank of America Merrill lynch. Great to have you here. Thanks for having me. What is this event . We think there is a potential black swan or 24 months, which is the saudis depegging currency from the u. S. Dollar. Hasnt happened yet. Something thats been talked about and could eventually happen. Why would they do that . Wouldnt that be destabilizing . I think help in the immediate term with plans with 2020 or 2030 vision, which ever year they target at this point because remember, right now the saudi government has a huge deficit and frankly, they are seeing a big throw down in Foreign Exchange reserves and countries are experiencing, they have floating currencies like russia or norway or chille or canada. You say its not next 12 to 18 months or so. It also implies that its hard to really say that its a probable event. Right. At the end of the day, what do you think . Will this happen . Look, its hard to tell. Not for me to decide. I do think that the saudis will probably not be forced into breaking the peg. They have enough reserves and enough money in the bank so to speak to prevent it. Something that will help in the long run. Why not do it . Thats the debate going on inside the saudi but also across managers around the world and a huge impact on the way we think of energy and oil prices. Right. Im curious, is there Something Else out there that may forced saudis to do this before they can . I know they tried to cut off speculators. What happens have venezuela inploids . Thats a big challenge. As saudis increase production and getting close to maximum productive levels, any kind of disruption is harder and harder to cope with. A venezuela collapse in terms of output will effectively put pressure on prices throughout the course of next year. And im not sure we have we have high inventory but not the right capacity to cope with that disruption. Your forecast in terms of the range for crude next year is 55 to 75 a barrel, is that correct . We think oil prices will average 61 a barrel and well see it high, maybe 75. I think the lowest could be a little below those levels, maybe 50 on the low side. But certainly were generally constructive on oil. We think prices are pushing higher and supply is coming down across parts of the world and demand is strong. If your black swan event comes to fruition, then what . I think its going to be a lot harder to forecast prices in u. S. Dollars because thats the benchmark were used to. I think if the world starts player from the u. S. , its going to be a lot more difficult. Isnt there slowly, though, a decoupling of dollars. Settlements in euros from iran. You have a situation where this is already changing right now. Right, if you go back to the 80s, we had russia, saudi, the u. S. , the opec to the same currency and 40 plus of world production. Russia is a floating currency for awhile. Youre right. The rules are swinging. Been great. Saudi and russia kept on moving higher despite the fact they have sanctions and a lot of Economic Issues and russia managed better than they would have otherwise with a swinging currency. If the saudis follow their path, then its going to be a little trickier to forecast oil prices and i think al lot of equity. Francisco, thanks for coming by. Francisco blonk for merrill lynch. And the black swan. Listen, ive been wrong. Tim has been on this and continues to levitate higher. I will say this, i think some of the things that he just spoke about are one of the reasons that people continue to buy gold. People are trying to get away from the perceived fiat currency that is the u. S. Dollar and doing it in many different ways. The most important way to me is the hoarding of gold. The gold thing, we had a great conversation before. Gold was on the mat. The fiveyear lows and just until this year, until the fed didnt do what people expected them to do its up 20 but still down 35 from the 2011 highs here and doesnt really look like anything other than speculation. How many times have we heard people say thats where you got to be and get a lot of torque. We had mark cuban doing that and call volume is amazing. To me, i dont see this commitment. I see a lot of talk about it but i dont think thats for your portfolio why not . Why not . Listen, it is the ultimate market, right, because what will you use it for but seeing, you look at stan who has 30 of portfolio. We dont know how much soros has and banks in asia buying gold. People are hoarding gold. Why is that . I dont get that at all. It doesnt give you yield and in a place its defensive. These guys are praying price is going higher. What i dont understand is everyone talking negative things and the reason the world will fall apart, the dollar is anything going to rally or saying youre actually saying things are so bad the fed cant do anything and never going to hike again. That means a weaker dollar will help the gold trade but ultimately if were in a world as dangerous as everybody says, a flight to quality in the dollar and that is going to i think ultimately be i know where youre going. The correlation between the dollar and gold has broken down. Its actually positive at this point. This happens on rare occasions. Its happened probably four or five times in the last 30 years and a scenario were seeing. I want to bring this back to oil. Sorry. That was the top pick. I got a quick comment on that. Yeah . Some of the things francisco said are important if you want to think about the economies in the position. They did let they are currency devalue. Russia 30 oil was 20 off the budget because the currency and local ks very good. Operational leverage for more Expensive Oil price. Coming up, the weather is getting warmer and there is one group left for dead stocks sizzling. We got hot names and should investors be afraid of Hillary Clinton . Well explain why the Presumptive Democratic president ial nominee could reek havoc on the space. R. Welcome back to fast money. Out performing the s p 500 breaking down the summer sizzlers is the always hot dom chu. Hey, dom. Guys, youre making me blush a little bit. [ laughter ] anyway, its good to be with you guys. So we want to take a look at summer sizzlers to see if momentum can continue. Well admit some of these stocks are in the more shorter term i guess up trend you can call it. Lets put them up to see what you think. A lot of hot stocks in the month of june are among the most beaten up over the course of the past arguably fewer months and longer than that. You got a name like michael kors. A top sizzler month to date in june, a 19 gain. A stock remember, on the retail side of things that hit a 52week lowerli lly earlier thi year. Gap stores have seen the old navy line cant seem to get Comparable Store sales ramped up. Those shares up 7 albeit again off of lows weve seen just recently. Nordstrom, under armor, kohls, you get the drift here. A lot of retail names are sources of perhaps, i would say possible opportunities for upside as traders try to bet what could be a bottom but picking bottoms is the hard part. Still, its intriguing retail names are getting spotlight especially as we approach the back to School Season that does impact some of these guys and some of the other guys like kohls where spending really ramps up going to the fall. It will be interesting to see what happens, guys . The big question is does this mark a turn around this anyway or a dead bounce because i bet a lot of guys on the desk think dead cat bounce. Right. I would say that. Im very curious to hear what the guys say about this. There is a sense now the Consumer Discretionary stocks that had been darlings for some point over the past couple years are starting to show signs of weakness about concerns the consumer really perhaps wont be able to power what these guys do with profits over the next upcoming year here. What will be kind of a curious note here is whether or not we do see some of the retail oriented like outlettype names. Tjx, ross stores and what not. If they start to do better. What does that say about the overall economy if those are the types of stocks and companies that thrive in an economy like this. Dom, im curious on any of these, it seems they would be high insured interest stocks. Some of them have high interest and maybe a dead cat bounce because you have this move higher. Its a massive move higher say for michael kors or eight or 9 move something along those lines but whether or not it sustains is key here. The reason why i guess i stress the short aspect of it is because we have seen such a pronounced down trend, longer term a year or more for some of the name, especially for michael kors. Michael kors unlike other names did hit a 52week lower early, i want to say in june or rather january. So thats a stock that seen at least a little more potential upside trend over a medium term as opposed to a nordstrom or gap stores trying to maybe just bounce off a low over the course of the past month. It really depends on the medium term goes better. All of these retailers we showed have been in down trends for the better part of a year or more, guys. Dom chu, thank you serving up the sizzlers in retail. Always, year around sizzling for the chu. What is more interesting, fascinating to look at beaten up stuff with dead cat bounces but im more focused on home depot throughout the bull market and traded really well and down about 6 in the last month or so from highs and you look at the very poor performance of nike, starbucks, target. I know walmart and target are diverging. Most of retail and apparel is having a hard time right now. Looks like in doms rig, he had something from all five of those stores, interestingly enough. You could see it if you noticed quickly. Ill say this, recall this because i remember sitting right here [ laughter ] so, so, for the record, im trying to figure out where i think maybe some of the stuff comes from nordstrom, maybe some from kohls, i guess. I dont have anything from under armor on right now and i dont believe i have anything from gap on right now. Check your bag there party boy. What do you got next to ya . Right . Dont you love dom . We should have him back. Hes rocking a pair of colorful, cool socks, we know that, dom. I do have socks, they might be from nordstrom. Might be i have to look at receipts. Nothing wrong with that. We talked about macys, not macys. Gap stores threw in the towel. Stocks closed at 17 that day. The next day same low, big volume. We said now is your opportunity. Look at gap now north of 19. Bad day today but gap is interesting here on valuation. Look, these got destroyed and trading at ridiculously low momentum. When we talk about strength, we talk about very short term and these were trading at eight, nine, 11 when they should be trading 40, 50. Gap at the top end of the range, nothing happened. There is nothing different in gaps world ralph lauren, going through a transition and after you take a shot on a brand trying to become less. Thats half the problem in the retail space. The valuation interesting. Im definitely talking i think this is something where not all these names are created equal and i think if anything im fading this retail move but names i like. Like guys Restoration Hardware call on ralph lauren. Right. Open unloads, close, big volume day and traded close to 30 million shares. Well see what happens tomorrow. Up next, consumer staple spaces sending one group of traders into a frenzy. Details and fear and panic, are those two words describing how biotech investors should feel if Hillary Clinton wins the white house. Meg terrell has a special report. Youre watching fast money on cnbc first in business worldwide. Jake reese, day to feel alive jake reese, day to feel alive puwith meta appetite control. You and temptation clinically proven to help reduce hunger between meals. New, from metamucil, the 1 doctor recommended brand. Welcome back to fast money following todays endorsement all signs point to Hillary Clinton becoming the democratic president ial nominee. Will this development signal a sale sign for biotech. Time for a political edition of stock therapy with meg terrell. Whats the feeling . People expect headline risk around the election to continue to pressure biotech stocks, the god father thinks this is primary based in but a lot of Analysts Expect the pressure to continue as both candidates, Hillary Clinton and donald trump made comments that are generally perceived to be negative toward the drug industry which a lot of people think are comments. Hillary clinton come out and said she would of usually defend the Affordable Care act, something all republicans have come out against and allow medicare to negotiate on drug prices, which scares investors if they lose pricing power, thats one of the biggest threats. One interesting thing about the platform is she says she would increase the funding for all timers disease to 2 billion a year. Right now the nih spends 500, 6 oc 00 on alzheimers and she would do that as part of a step up in general. That would be good for the drug industry. Specifically Companies Working in again, lily and merck and see a direct correlation in trending in stocks like thurom fisher because labs buy their equipment. Thats interesting and people dont think about that so much with Hillary Clinton. Thats a big part of her platform. If you look at donald trump, hes come out and said he would repeal obama care, which surprises nobody but makes really anti drug industry comments like allowing the importation of drugs from other countries like canada where they are less expensive and allowing medicare to negotiate. Im hearing analysts and investors are clear on what Hillary Clinton would do. Thats good. They are not so clear on what a Trump Presidency would mean for the drug industry. Surprised. Surprisingly. Everybody says well see headline risk into the election and whether people can elect anything after that is a huge question mark. Right. Just the pricing issue on which both candidates agree the drug prices in general are too high. Isnt that enough, the rhetoric . We havent had a piece of legislation or anything done, right, since Hillary Clinton tweeted that tweet over the summer and yet, weve seen a really sharp retrenchment in the sector on fear. There is a lot of fear around it. Thats the thing. Its weird how this disconnect between the fear and then the disbelief that anything is actually going to change. So you have to wonder, the environment is tough. Insurers pushing back, thats what worries people about stocks. Guy . The ibb is where we go and i hear everything meg says. Shes been on top of the story and if hillary gets elected, her first 100 days is a bulls eye on wall street. With that said, look exactly where the ibb traded up to and look where it failed. We had been talking about 285 for weeks leading up. Printed 286 the other day and retraced back down to 273 and 274. I do think you need another shot to buy the ebb at 240. A level we talked about i want to say back in the winter and i do think the pressure now, the pressure to prove themselves. I think the path of least resistance is lower. Yeah, well, so ive said you sell biotech in general into the election and possibly after. The reason why i say possibly after is something that meg brought up. The question is what can they actually do. Were in the speculative phase everybody is worried but can they get anything done . Will nih funding come through and will they cut drug prices or not . Going into the election, probably more speculation after the election is probably where you want to look at buying biotech. The point about disconnect is the most important thing because you can rationally layout all these great points why nothing will happen but that doesnt matter. The direction of the sector has been lower. Well, and so i think lack of clarity and lack of certainty, these are usual tenants we talk about of investing are not helping. What you have to do therefore is find relative value and i think you have to find companies, those that under for formed and looked interesting. Gilead is an interesting trade, if nothing else based upon what under performed versus what hasnt and on valuation do you mean a pear trade. To be long gilead so make yourself essentially sector neutral but find a company under performing and why have the under perform but valuation is interesting at gilead. Last question for you, meg. When you talk to investors, are they actually making any sort of portfolio changes based on what you outlined . I talked to mostly biotech folks so they are just making picks. For the most part no but ill come back to you if i get a better question. Meg terrell with stock therapy. Love stock therapy. Any kind of therapy, guy. Good point. I dont know about any kind of therapy. Im sure there are plenty of therapies you dont want. Anyway, shifting gears because dan is not here anymore. Hes where did he go . At the smart board looking at unusual options volumes. Yes, in hersheys and this is speculation from time to time over the last decade of takeover chatter from here and there but the options activity speaks to that rumor going around the market. Today options was 27 times average daily volume. The amount of options that traded today were equal to the amount of open interest in options, in the stock coming into the day. So this was a frenzy when the stock was trading about 9630 today, there was a buyer of 2500 of the july, 100 calls. The buyer paid 110 for 2500. 15,000 traded on the day and a buyer of 5,000 of the june 100 calls. What ill talking about here is that these are out of money. If you look at the oneyear chart. You cant see it on the oneyear chart and buy income a frenzy and name like this that generally doesnt have a lot of options. Something speculative going on here and one last point. Bought or not but if you look at where the break even on this thing is, its back towards the level the stock broke down from a few years ago. This is one way to define your risk in a speculative way. I dont chase rumors like this but this is one way to do it. A quick note, we reached out to hersheys regarding the takeover rumors and responded by a matter of Company Policy we do not comment on market speculation related. Up next, final trade. Im here at the Td Ameritrade trader offices. Steve, other than making me move stuff, 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. New biwhat are we gonna do . Ys. How about we pump more into promotions . Nah. What else . What if we hire more sales reps . Nah. What else . What if we digitize the whole supply chain . So people can customize their bike before they buy it. That worked better than expected. Ill dial it back. Yeah, dial it back. Just a little. Live business, powered by sap. When yun live, you run simple. Thank you. Ordering chinese food is a very predictable experience. I order b14. I get b14. No surprises. Buying business internet, on the other hand, can be a roller coaster White Knuckle thrill ride. Youre promised one speed. But do you consistently get it . You do with comcast business. Its reliable. Just like kung pao fish. Thank you, ping. Reliably fast internet starts at 59. 95 a month. Comcast business. Built for business. Time for the final trade. Lets go around the horn. Oil, we talked about it tonight. The companies in the best position to have operational level. So the weakness in european banks does flow back to banks xlf. Well, for me its back to the precious metal space silver held up well despite the strong dollar. I hope. Dan is going to be there. When is it not big . Hello . Anyway. Might. Defense stock rtn will get you done. Im sure. Im melissa lee, see you back here im sure. 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 hey, im cramer. Welcome to mad money, welcome to cramerica. Other people want to make friends, im just trying to make you some money. My job is not just to entertain you but to keep you and call me. Call me at 1800743cnbc. Or tweet me jimcramer. Taking a breather. Could have been worse. Even as the dow closed down just 20 points