Doing right now. We start with the story of the day,pple unveiling the brandnew iphone 7. Were in San Francisco with all the details. Josh . Melissa, that iphone 7 does boast a lot of new features and functions. Among the most notable though, it is fast. Its a 64 bit, four core processor with over 3. 3 billion transistors. It is a rocket ship. First, it has two cores, that are High Performance cores. These High Performance cores run a full 40 faster than the a 9 chip in the iphone 6. If youre coming from an iphone 6 its twice as fast as the a 8. The iphones display is 25 brighter. The best camera exists out there for any smartphone and the battery lasts two hours longer than the 6 s. The biggest headline grabber no he headphone jack. You can use an attachment for a wired head phones. As for the watch it got an upgrade, this new version apple says is faster, brighter its going to run you about 369. Rbc estimates that to date, apple has sold some 14 million watches generating 5 billion in sales. Back to you. Thank you. Todays news had a greater impact on shares of apple suppliers and competitors, than it did on shares of apple itself. We thought wed do a game of count down here. Thats a new game. Three different groups, suppliers, competitors and of course apple. Trade number one. Apples chip suppliers feeling the pain after the announcement. Sky work solutions, analogue devices just a few that fell. A lot of these are running into the news. Look at logic and the other names that are feeding into the products, those have been on a ramp much more than apple itself. Many of them hitting highs. I think the most impressive part of the whole thing with apple is really truly about the chip. Not that theres a huge wow factor there. But the battery life i think is something everybody cared a lot about. And the fact this thing is faster and you go through all the different elements of what the phone will do now. Is it a great . No it wasnt expected. People wanted to know what can you do for us now. I think they addressed my Biggest Issue with the apple phones always has been the battery. So im happy. I need to trade on the semis. There is a lot more moving into this announcement than just this announcement obviously. There was a thought there was going to be consolidation, Western Digital guiding for fiscal First Quarter higher. That helped. I dont know if we have a chart. This stock has been a ballistic missile. This has been a rocket ship to the upside over the last couple months. The evaluations of cirrus lodging has to be through the roof. Its not that ridiculous at 13 times forward earnings, heres a stock that was up on a day. I think you continue to go higher. An alog devices are coming off a disappointing quarter i think. They broke out earlier this year. It seems to want to do a back and fill. What does it mean . I think you could trade to 59. It could be holding a trend line. Stay with cirrus logic and look to buy adi. Suppliers never seem to get the lift whenever theres apple news, maybe apple gets it today apple didnt. But suppliers usually dont see anything. Yeah, i think to petes point you saw a run up ahead of it. Its usually the same type of thing, the apple effect you see the run up to a release. Getting back to the Semi Conductors im on micron technology. Weve seen an incredible pop. And now you touched on it. In the space and has created basically a from a supply glut to maybe theres a little bit a gappiness or maybe you could see those prices improving. Im going to stay long. Im in the sell the news camp. Thats what were talking about. Thats what happened today. There was the anticipation you sell the news. What do you do with the stocks now . Lets take a look at nxpi. Around 80 it gets some support there. As it starts to come down, i know its 6 away. As it comes down i start to look to see if 80 hold. If you see volume coming in take advantage of it. And nxpi is in cars, credit card processors. Buttoning this up with a trade on the semis, you like them for a long time. Continue to. And its really interesting the other news of the night is intel spinning off mcafee. Theres all kinds of news going on in the Semi Conductor space. When you like at micron, theres been nothing but activity going in there. They had a poison pill conversation. Theres all sorts of different news sources going on right now. Look at just in the last five days its up a dollar. This is a stock thats 17. 15 up a dollar. Thats impressive. This is a stock from 13 to 17. I think and agree with you. I think you hold on to this, and i think it goes higher. I think it gets a bump up. Trade number two, some of apple competitors getting hit the hardest, fitbit, take a look at go pro down 5 today whats your take . I look at fit bit today. This is always that apple effect they could do everything better than anybody else can do. When i looked at the watch i wasnt impressed. Im along nike. It was a better tail wind for nike. I think thats a tail wnd for nike. Not great for apple. If you look at fit bit they do everything a lot better than apple with their wearable device. I would start to think that maybe theres mna around fit bit. Maybe you start to get a bit in the next couple days, weeks. I dont know. I mean, i wouldnt buy fit bit. I think apple is going to crush them on this whole type of thing. Fitbit is just a device. Apple can do the software, they have every single app. I thought the watch was the more interesting thing about the release. Because it is now you can swim with the watch. Doesnt mean everybodys going to go swim with it. But it means youre not afraid to wear it when youre doing activities. The person who owns the iwatch, its a different its a fitbit thats is an iron no. No. Why would you say that . Its a trendy thing, its a tech gadget that doesnt look the same way. Fitbit is a slap it on and do whatever you want to do. A fitbit is a commodity. You can go to best buy and there are 100 fitbits out there. With the apple iphone if it bekmb becomes more of a sports watch i am interested. The other competitors i would pick up is garmein. Youre a swimmer. You know i dont know how to swim. Her with the floaties . I technically know how to switch. I prefer not to swim. Semantics. Give me a trade. Go pro at the end of july was a 10 stock. That rallied about 55 to 60 , mostly short coverening. I think the shorts are out now. Starting to head back down. I think to 12. We can talk all day long is it viable, not viable. If you have these stock and havent seen profits, i think you better start tomorrow. Go pro is a short trade down to 11. Riddle me this. The iphone 7 one of the great features is the dual lens camera. Is anybody going to strap an iphone 7 to their head . What is the thinking behind bringing go pro lower in todays session in response to the apple needs . I think its one more shot towards go pro. I dont think thats a direct shot from apple towards go pro. I think they just for a long time have figured out that the phone is what everybody uses as their camera now. Because of that youve got the different features john talked about. Zoom and all the different color variations, all those things. This is truly a camera inside your phone. In the past it took pictures. Now its a camera that actually can be used very much like a camera. For that reason i can understand why john fort was so excited. About the iwatch though, the fact its water proof does mean a lot. I think there are so many people including my wife and others who have got this thing, they love it. They absolutely love it. But if it were waterproof they would love it even more. Youll get soaked when you have a waterproof watch. When you talk about go pro, play the show back. Youll get it. So when you talk about go pro strap it to your head, you have accessori accessories, this is what ive been saying. Go pro it looks like you have a rubics cube on your head. Theres nothing sexy about that. I do think apple is a formidable competitor to go pro when you look at the accessories. I dont think you could look any sexier with an iphone on your head. Thats a completely different issue. Anyway, im moving on. Trade number three, apple itself. For more lets bring in piper jeffries, Senior Research analyst, hes got a 151 price target on the stock. Great to have you on the show. So many people explain the iphone 7 is not truly innovative. But the key is, is it enough to propel the upgrade cycle . You think it is, why . Absolutely. Because theres about 275 Million People who have iphones that are going to be two years old or older and the street is looking for about 230 million iphones to be sold over the next year. And so this basically is a tidal wave of upgrades that are coming. The reason is that we depend on our phones and its such a critical part of our lives it needs to be upgraded every two plus years. What they showed today was as expected but enough to get the iphone franchise back to growth for next year. Okay. So youre expecting growth once again. In terms of exactly how many phones you anticipate . I mean, does what you heard today change that forecast . It doesnt because everything we heard today was it was expected. What its done is seen its confirmed. We have greater confidence well go from calling it down 10 in the last year to up about 10 for the next cycle. I think the substance of it and actually seeing it is confirmation. And at the end of the day, i think were going to be hearing about some pretty impressive preorder numbers this friday. Hey h its brian kelly. I know youre looking over a year theyre going to sell 230 million or at least thats what the potential upgrade is. Im curious, anything you heard today prolongs that period . It wasnt as exciting enough today to get people to go out next weekend and buy the phone. If not, is that a risk to your numbers . Theres going to be a group that is going to hold up until the Anniversary Version people are talking about. That group is still there. There is nothing thats changed our belief that there is this large pool of people who are running on phones that need to be upgraded. The battery just isnt enough. The camera is something, its not that there was a feature that was exciting enough. The reality is this is part of their every day lives and they cant go on any longer. So i think that that group is going to be really what powers this next upgrade. And we feel as confident about that group as we did two weeks ago. All right, were going to leave it there. Thanks so much for your time. Thank you. Okay, so gene, the upgrade cycle is going to be there. It will be enough to drive growth. Is it enough to drive the stock . Well, i mean, i think people are looking pete said yesterday there wasnt a lot of anticipation. The expectations were very low. And i think they exceeded those low expectations. The stock actually initially traded down, closed up on a day. Thats all you need to know. Youre through this the market has gotten what it wants, is it enough to get it to 141, i have no idea. Is it enough to get to the 118 level i think it is. You cant get too negative because of this upgrade. They have an in built Customer Base thats going to come back. Its got to break through 110 otherwise were in the trading range and you can trade it on sentiment. If it gets through 110 that would get me excite. 110 is the major spot to break through. What we havent been talking about is the end of subsidies. If you chart the stock from t mobile, verizon, telephone, the stock has made a serious of lower highs since that point in 2015. And i think thats worth looking under the rock a little bit more in depth. Because i think theres a big part of the calculus go s into that when the subsidies ended so did the rip of apple stock. Apple is expaeneding their upgrade plan. That is going to make up for that and they upgrade every year. Just speed the whole process up. Thats something thats going to build. And the one thing i stand by to this day, even as we have flat numberwi numb numbers. Services its Getting Better and better and thats the growth part. Under armour made a huge gamble on steph curry. Grocery stocks got crushed today and the sell off could be underscoring a broader trend in the economy. This man says stocks are in a dead zone and are about to see a pull back. How big, hell be here to explain when fast money returns. ] some things are simply impossible to ignore. The strikingly designed lexus nx turbo and hybrid. The suv that dares to go beyond utility. This is the pursuit of perfection. This car is traveling over 200 miles per hour. To win, every millisecond matters. Both on the track and thousands of miles away. With the help of at t, Red Bull Racing can share critical information about every inch of the car from virtually anywhere. Brakes are getting warm. Confirmed, daniel you need to cool your brakes. Understood, brake bias back 2 clicks. Giving them the agility to have speed precision. Because no one knows like at t. Hey, jesse. Who are you . Im vern, the orange money retirement rabbit from voya. Orange money represents the money you put away for retirement. Over time, your money could multiply. Hello, all of you. Get organized at voya. Com. Welcome back to fast money. Underarmour kicking off the top trades. Steph curry take a tour of taiwan. Sarahiz we spoke to them exclusively. Hear what he to say about making a bet on curry. I never forget before his first mvp run is when he said to me, hes like, give it to me. I got this. And thats a tough thing when youre saying we need you to go stare down the likes of kobe and lebron and these guys and say youre going to build a brand on your back and what you do. I think the last, you know, two years, three years of performance has been, you know, everything that and more. Stock is flat, pete. Stock is flat and 30 off a two week high. Theres issues going on. Look at nike and the competitors and all the rest of it. Nike still i love how you say it. Thats the fancy way of saying it. When you look at where the stocks are trading, under armour is high. They do have growth and theyre attacking where they need to be attacking. When you look at where they were with their shoes not too long ago, 2015. It was 18 of the revenue. Thats something that has to choin change. Thats where they need to know attack. The asian markets will be strong for them. It better be, though. Theyre doing all the right things to be able to compete at the next level. The evaluation i understand thats the the asian side of the story. 51 times forward earnings they better be right. I dont want to bet against steven plank and steph curry. That being said, if this doesnt work the growth doesnt justify the evaluation. It doesnt matter. Weve already seen the stock break here over the last year. So thats what concerns me. Doesnt matter for me because i go on the season alt. Under armor and you buy it against july performance. The average july performance is up 10 . Calculating over how many years . Five year average. Go to nike which is the reason why i got along last week. Nike september up 7. 3 against undera underarmour. Buy it july and january. This is as critical an Earnings Period than in quite some time. Evaluation, absolutely. 52 times forward earnings is expensive but it was expensive when the stock was going ballistic. What concerns me the most, margins have been ever so slightly decreasing over the last couple quarters. If they can stem the tide and get margins to levels we saw a year ago i would be more optimistic. Still ahead shark tanks kevin oleary is on the prowl. Hes pushing the buy button on one Surprising Group of stocks, hell tell us what those are and why he thinks they could be the s p 500. Im melissa, youre watching fast and money on cnbc. In the meantime heres what else is coming up on fast. Pretty much sums up whats going on with grocery stocks. And it could be signaling a broader trend in the economy. Well explain. Plus. And heres what Jp Morgan Says is about to happen to the market. And the man behind that call will explain why. When fast money returns. Everyone thought i was crazy to open a hotel here. Everyone said its so hard to be a musician, but i cant imagine doing anything else. Now that the train makes it easier to get here, the neighborhood is really changing. Im always hopping on the train, running all over portland. I have to go wherever the work is. Trains with innovative Siemens Technology help keep cities moving, so neighborhoods and businesses can prosper. I can book 3 or 4 gigs on a good weekend. Im booked solid for weeks. It takes ingenuity to make it in the big city. Welcome back to fast money. Were keeping a closer eye on the entire grocery industry. Thats because one of the higher profile players in the biz gave a negative warning for vf investors, they took a dive and it carries through the regular session after it lowered his four year forecast for profits and sales. Due to a highly competitive sales and whatnot. The board approved a 250 million Share Buy Back the stock was the worst performer on the s p index. The ripple effects were evident. Check out the big names in grocery like whole foods, that stock was down big today as well. One of the worst performers in the entire s p 500. Even the biggest u. S. Grocer out there, kroger felt the pain as well. When one grocer talked about the effects of a prolonged deflationary period and the effects on foot traffic, this is what happens. Remember, whole foods, its been under pressure for a few years now. But kroger hit record highs just before 2016 started. Melissa, what pricing pressures hit, everyone in the biz gets hurt. Back over to you guys. Thanks so much. So is this another example of retailers having trouble with Pricing Power . We heard this from target we heard this in the restaurant space, deflationary food costs . Right, i think two parts. There is this the deflationary pressure. When you look at Something Like a sprouts or a whole foods, whole foods had a monopoly for a long period of time. Competition is coming in and they dont have the Pricing Power and they have the food deflation. When everybody is running to one side, pk wants to go to the other. I would look at suger, sgg. Thats something you want to buy. Huh . I think that it might be another vote, yeah. Fill it up with sugar. Buy it. Sgg. Are you worried about your target . You love target target has a grocery problem. The Groceries Stores have a grocery problem. Targets got to step up and compete with walmart. And you look even at walmart was down a buck. Its because of the fact they are such a big grocery aspect to what their revenues take in. It hit everybody today. In the long run, though, you look to the targets, you look to the walmarts, even look to the growing krogers tyson foods . The chart looks like its rolling over. Its been a lower feed cost story for them. I dont know, maybe a lock in hes rocking the boat next to bk with the chicken its like an armada. What a great word . Its a much better word than fleet. Huh . Can i be in my own boat . Im going to be in the whole foods boat. All last year it traded down to 28, held held held. Pushed down to the level today. Seemingly bounced. I know this is a challenge story at best. But against 28 which is the 52 week low into november i think you can get it. Still ahead the man who called the last august swoon is back. He said theres something more troubling ahead. What is so troubling . Hell be here to explain. The ceo of starbucks Howard Schultz spoke to jim cramer moments ago. Well hear what he had to say about the 2016 election and how it could impact his election. Thats right after this break. Across new york state, from long island to buffalo, from rochester to the hudson valley, from albany to utica, Creative Business incentives, infrastructure investment, university partnerships, and the lowest taxes in decades are creating a stronger economy and the right environment in new york state for business to thrive. Let us help grow your companys tomorrow today at business. Ny. Gov i might have had him at learn today . Thats true. L today . Thats true. U today . Thats true. N today . Thats true. C today . Thats true. Lunch today . Thats true. Welcome back to fast money. Another day, another new high for the nasdaq. The dex finishing the day in the green. While the s p 500 and dow closed negative. A major standout getting a push from the airlines which are up 2 . Heres whats coming up Howard Schultz throwing his weight behind a clinton presidency. Well hear from the man himself and why he says she is the obvious choice for the white house and what it could mean for his business. Plus, bent on a twitter turn around. Well tell you why one group of tride traders see the stock surging ahead. Jp morgan is out with a new call today and you want to listen to it. The man behind the note has been one of the most accurate forecasters on the street. He is known as a man who moves the markets. Hes the global head of quantitative and derivatives research. Dead zone. What do you mean by that . Basically, if you look at the s p price over the last two months, its been in a tight range. Its one of the longest periods of all. What are the drivers . Very low trading activity in july and august. High level of what we call pinning, market pinning, and thats basically a fact when clients sell options into the market and the owners along the options. Hedging of deals cause the market to trade in a narrow range. One measure of that pinning effect is a call to put balance on the option content which reached all time highs in august. We had market volatility collapsing and as the result of that, many investors start releveling. Investors like volatility targeting strategies they start increasing the leverage and that poses a risk to market. Also what happens clients put a stoppage closer to the market level. And that creates a risk for quick reversal and spike in volatility. We think the spike is in september. Typically you see uptick in volatility. You expect a september selloff . Definitely increase in volatility in september. More likely than not sell off as well. And, again, it would be triggered by high volatility, deleveling from various Systematic Strategies and some of these option effects will go in reverse. Bk was talking about everybody being on one side of the boat. Stha it is that the case . Right now theyre all in same sorts of trade, exposed to the same sorts of exposures and therefore when things reverse thats going to cause a domino effect . Correct y. Would say market is all time high. Ctas are very long. Thats true in u. S. And europe and asia as well. Then you have risk sparity funds who are also very long. You know, so they are all very long and they are all exposed to increased in volatility. If volatility goes up, they need to decrease their exposure. It would be even harder daesh. Correct. It will add fuel to volatility. And in terms of triggers, i mean, august, september, will have a number of sort of potential catalysts from Central Banks, if those play out benign, september typically have seasonseaso seasonal uptick in volatility. Historically september and october tends to be volatile months. Volatile and 20 higher in september than any other months. A seasonal uptick in volatility can cause some of these effects. The s p closed 2186 give or take. Can you quantify in terms of sell off what are you looking for . First we would look for something to tip over markets to 2160 where all these effects start kicking in. If that happened you could go quickly maybe up to 100 points lower, right. At that point, you know, were going to probably be like, sort of already october, you know youll have elections coming. Theres going to be a number of microdata coming out and Central Banks will be out. You can bounce back quickly and kind of, you know, lets get to 2200 or reach all time highs, if things turned ugly you could continue lower. But, you know, sort of 5 of a pullback we think is probably more likely than not. You mentioned the elections is that a volatility event in november or into november . It should add to volatility. Markets is not pricing that much. We think it probably should price, you know, the programs are very different. You know, the sort of National Polling are within statistical error. Its not clear. At least the way i read the data. And then there are a few technical drivers like specifically relate todd to cap gains tax which could actually push market either way. You hear about all these high profile headliner investment strategygists saying theyre cautious about september and they also agree the elections could be a risk. Are you concerned speaking of crowded trades of being bearish the market is actually the prevalent view right now . So theres definitely a difference between what i would call systematic investors and fundamentally investors. If you look at the long shore huge funds their exposure. If you look at the data its relatively low. I think thats the one sort of potentially positive thing. Its relatively bearish, a. To your point, as you said, september tends to be weak. December sends to tends to be t strongest month. November, once the elections are out of the way could provide some boost. Towards the end of the year the market more likely than not. Last question,io you mention the 5 correction sounds like a best Case Scenario. Whats the worst Case Scenario . Relate todd to Central Banks daesh. If they raise rates in september. Investors are looking closer. I think in september the fed is unlikely to raise the rate. If investors thing theyre changing the course they may anticipate and apprise that and that could it could trigger a tail event. Basically you would have bonds and equity selling off at the same time. We try to estimate how much these assets benefitted from the central expansion. You take that premium out. We take it out. If you look at it, equities of 20 , seven, ten years, 10 . These are large numbers. If there is basically Central Banks make a shift and the market starts anticipating and positioning for it. I dont think it is going to happen. I think the fed wont do anything in september. Thats a tail risk if they decide to do so. Great to see you. Jp morgan. All right. So thats like, your boat. That is my boat, i like that boat. The problem is a lot of people are in that boat right now. To your point, probably the risk is anything we kind of melt up here. But there are a lot of risk events. So i think, buying this, buying volatility one way or the other if you want to buy puts on your portfolio. Ill defer to pete to best way to wobuy. 11 or 12 that seems like the no brainer trade. The notion that volatility is low and you can by the calls and it sort of just it creates inaction. It does. Well, i think he brings up the right points, which is seasonality and you talk about the Political Risk and you talk about the Central Banks mpts this combination of all of that tells me why wouldnt you be buying protection if youre not, stock replacement strategies, its inexpensive to be able to do that right now. In my opinion the best way if you understand your portfolio well enough, hedge it in whatever covers your portfolio best. You s p exposed are you exposed to a specific sector . There are ways to hedge your positions. Thats how you want to attack right now. The market already did melt up. It was up 10 . The market is moving sideways, if its 6 sell off we get to the 200 which is 2056 in the s p cash. That problem is you have to thread the needle for two months. He thinks the market is going right back up. For the average person lighten up sleep better at night, do that. For the big funds, theyre not selling. Coming up mr. Wonderfuls world view on the markets, kevin oleary made a big trade in his portfolio. Hell tell us where hes putting his money right now. Well give you a hint, its not in the u. S. Why are investors making big moves on twitter ahead of tomorrows Board Meeting . [cheering] the highly advanced audi a4. Whats the value of capital . But whats it cost to modernize a School District . Whats Critical Thinking worth . A basketball costs about fourteen dollars. What does it cost to build a new sports arena . Whats team spirit worth . A Telecommunications System isnt cheap. Whats it worth to talk to your mom . Whats the value of one more tree . A forest . A walk in the woods . Whats the value of art . Art open to the public. The value of capital is to create, not just wealth, but things that matter. Morgan stanley. Capital creates change. Welcome back to fast money. V v valeant talking about the sale of the companys core assets. Im never going to say never. What i would say is what weve looked at is there are core assets that we believe are very important to the future of us the dermatology franchise, the eye care franchise, bou. Those are critical important to us. You know, would we have to look at something if someone came forward . Of course we would. Because were a public company. He was speaking to our own meg terrell. What do you make of him . I think we across the board we have been. To a certain extent weve been right. This was the first time in probably a year that somebody from valeant made comments, i think the market took somewhat positively. He sounded like he had a handle on the business. Say what you want about his tenure at that shop but there was a period of time when parago was the hot stock. Does this give it legs to get into the high 30s . It may. Should you play in the pool . Absolutely not. If youre looking for high risk high reward, i got to tell you something, i think theres a chance we which back here a month from now. Were talking about valeant. I am playing in that pool. Buy the calls. The reason you do is the volatility is not astronomical. Stocks made the plotting move up to the mid20s towards 30. I think the opportunities are there. And you know your risk going in. The cost of the calls is what youre putting out there. Its not like going in there outright calls on a call spread. And as a matter of fact the call spreads might be more appetizing as long as youre able to say im capped out. Shifting gears, did you miss the post brexit rally in the United States . Our next guest says there is still plenty of opportunity to be found. Its now across the pond. Kevin oleary, mr. Wonderful, joins us from toronto. Its great to have you back on fast money. Your bullish europe youve been bullish europe. Have you increased your position in europe . I have. Because in the last 48 hours, weve all learned something new. Were debating the fed moving in september and december which generally in its initial move would be negative for our indexes, the first meeting where British Assets are known to be leaving the e. U. Happened. The rest of the e. U. Is very frosty to them. But they made sure they signaled something very important for all of us as equity investors. They are going to put in tremendous liquidity into the markets there. Having already done so with sovereign debt. They hit corporate bonds. Im talking about the central bank of europe buying credits, crushing the spreads, everybody that owned those during the brexit made a lot of money. For the first time ive ever seen theyre discussing buying straight equities. The European Bank is my partner buying equities. I think ill take some of that. Yes, i will. We dont have that happening here because were worried about fed moving against us. Pes are lower, yields are higher and my new special friend is the central bank of europe. I love those guy. Its brian kelly, i understand why they call you mr. Wonderful this is a decent trade in that youre betting that youre better off doing this than you are buying the s p at all time highs, i like that. Let me push back on the trade just a little bit. Central banks have been buying stocks for long time. The bank of japan has been buying stocks. The Swiss National bank swis on of the largest holders of apple. It hasnt helped stock markets that much. Why would this be any different . Why would the ecb be more successful than the bank of japan . The companies theyre thinking of buying is ones were involved in as u. S. Consumers, theyre names usually you would find in an institutional portfolio domestically that are going to get support of extra billions, this isnt some eclectic japanese Robotic Company the japanese government is supporting. Im talking about names you buy their products every day and are massive market caps with huge yields. And listen, i went back and did my homework. For the last 40 years beat our s p 50 of the time. Did it last year, doesnt mean it wont do it again this year. Im putting incremental money to work with less risk. Right now i have to second guess the fed. I dont know about december, those banks our own domestic banks are up 20 , 25 . On a fifth head fake if we dont get the rates going up in september or december, that whole S P Financial Services sector in our domestic banks are going straight down again. I dont like that story in our indexes, im going to take my chances with my new special friends, the central bank of europe. Love it. All right. Kevin, a lot foelks dont want o buy individual shares and are looking for an etf how should they choose one . You got to think about which stocks, the currency issue, et cetera . Well, the great news about europe the largest index on earth, they do them globally. The big debate going on is do you hedge or not. For example, if you buy when youre buying europe youre buying the swiss franc the euro and british pound. Everybody got it wrong on the british pound. They couldnt conceive the currency would come roaring back. My attitude about buying europe is to buy a hedged etf 0. 50 on the dollar and unhedged for the other 50 . Im using the oauh 50 50. Those are the big names im talking about with dividend yields and growth and the backup of the banks. Im 50 hedged because nobody gets c gets currency right. The british pound is back up and it took 90 days to do it. Its remarkable. Thank you so much. We should note these are kevins etfs. We appreciate having you. Its always great to see you. Im ashamed to talk my own book, i have to admit. And it shows, kevin oleary plr. Mr. Wonderful. Hes doubling down on europe in the past 48 hours at a day when world stocks had it the highest levels in a year. Highest level since august 2015. Asia, japan highest since july of 2015. Everywhere in the world except for europe. Theres saying would you rather be right or make money. Thats what kevins talking about. We could debate all day whether Central Banks should be buying stocks, bonds whatever it doesnt matter for the sake of this argument. How do you play it . Germany is the benchmark. Ewg its been in a down trend for the past two and a half years but it appears to be breaking out. What i like about it he never sounds like hes confident. Hes always very humble. I like the yield, 5. 4 . I like xlp here, xlu here. All three people will be searching for a yield. How about the bank . Im in the banks. And i think hes 100 right. Youre in European Banks at well . No, deutsch bank and all those, i have covered those. The last positions i had were via options. So they were expiring so i covered those. Im in the u. S. Banks, i agree with kevin if we dont get a rate rise those are vulnerable. Twitter shares have surged more than 30 in the last three months. Thats nothing compare today where some see it going after tomorrows Board Meeting. Starbucks ceo Howard Schultz endorsing Hillary Clinton for president. Moments ago he sat down with our own jim cramer to explain whey e thinks shes the obvious choice for the white house. Whoa. Whats going on here . Oh hey allison. Im val, the orange money retirement squirrel from voya. Val from voya . Yeah, val from voya. Quick question, what are voya retirement squirrels doing in my house . Were putting away acorns. You know, to show the importance of saving for the future. So youre sort of like a Spokes Person . No, im more like a metaphor. Okay, a spokesmetaphor. No, im. Youre a spokesmetaphor. Yeah. Ok. See how voya can help you get organized at voya. Com. This car is traveling over 200 miles per hour. To win, every millisecond matters. Both on the track and thousands of miles away. With the help of at t, Red Bull Racing can share critical information about every inch of the car from virtually anywhere. Brakes are getting warm. Confirmed, daniel you need to cool your brakes. Understood, brake bias back 2 clicks. Giving them the agility to have speed precision. Because no one knows like at t. I strongly believe that Hillary Clinton is the best choice for the country and the rest of the world. And we have two choices, Howard Schultz is the ceo of Starbucks Coffee company at this time. Thats where things sit today. That was the ceo of starbucks Howard Schultz speaking to m mannmamad moneys jim cramer. What do you think about him . I dont know which way you want me to go. If you look at starbucksi its phenomenal country. Its up 6 . Whatever you bet against starbacks for the longer term youve been a loser. Hes a great ceo. The stock is under pressure. Its got competition, its got a Consumer Base to it. But i still think you have to bet with Howard Schultz. Does it matter . Does it matter these guys, you know, one guy comes out for Hillary Clinton one guy comes out for donald trump . In terms of the stock . I mean, good for him. Hes entitled i dont know if it means anything for the stock. Starbucks has held 55 a couple times, its trading 56 and a half now. Starbucks is similar against 55 stay low in the stock. Do not miss the full interview with Howard Schultz. Back to the tech world twitter making headlines ahead of tomorrows Board Meeting. The stock has been a subject of a lot of conversations. Mike joins us from austin with the action. Its interesting because traders have been speculating a deal might take place. It has out paced three to one. What is unusual is whats happened to the term structure of volatility. Near dataed options have gotten much more expensive relative to longer ones that weve seen in the past. That sometimes does indicate options traders think something might be going on. This happens before earnings, its all predicated basically on the probably the Board Meeting and speculation about a deal. Where theyre making their bets are the october 22nd calls we see about 4,000 traded today for about 0. 80. Those expire four days before earnings, the stock will have to be up 15 by october expiration. A lot of bullish bets going on in twitter ahead of the meeting. Of course there is a reporting earlier i think it was last week saying essentially there is inaction coming out of the Board Meeting that could open the way for an activist investor to step in. Does that change the twitter story . The twitter story is a bigger thing that has to transpire and up 15 doesnt help people who have been attached for this for longer term. Thanks for the action, full show, 5 30 p. M. Time. Final trade is up next. Hey gary, what are you doing . Oh hey john, im connecting our brains so we can share our amazing trading knowledge. Thats a great idea, but why dont you just go to thinkorswims chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders . I know. Your brain told my brain before you told my face. Mmm, blueberry . Tap into the knowledge of other traders on thinkorswim. Only at td ameritrade. Its scary when the lights go out. People get anxious and my office gets flooded with calls. So many things can go wrong. Its my worst nightmare. Every second that power is out, my citys at risk. Siemens digital grid manages and reroutes power, so service can be restored within seconds. Priority number one is keeping those lights on. It takes ingenuity to defeat the monsters that live in the dark. Quick program note. Tune to cnbcs exclusive interview with meg whitman. Final trade . I love the paper i saw macys. Nike for seasonality. Beakers . Xlp. Oil wants to break out. We are all in our boats . Youre on separate boats. Youre right. What does that say about us . Hopefully for the market. Why pete . Thats how it comes out. The risk reward is interesting. Im melissa lee thanks for watching, see you tomorrow at 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 mad money. Welcome to cramerica. Other people want to make friends, im just trying to make you some money. Call me at 1800743cnbc or tweet me jimcramer. Competition, competitions a terrible thing sell, sell, sell at least if youre a