Missing about the mood in crude oil and it could have huge implications for your portfolio. Hell be here to break it down first, one huge move in the markets today, thats in Health Care Stocks. The sector hitting another alltime high for a second consecutive day after the gop unveiled its new Health Care Bill in the senate Cnbcs Kayla Tausche is in d. C. With the details kayla . Reporter it was unveiled a few hours ago, but Senate Leadership is already in sell mode democrats predictably opposed to it, but even republican senators, not one said they were vehemently in support of it. The most bullish would only say they opposed the proceeding legislation, but then there was a group of four senators, double the amount the gop can afford to lose in this battle, four senators that came out and say they are open to changes and willing to make concessions, but that they are opposed to the bill in its current form senator Lindsey Graham today noted it wasnt just those four who want changes there are 52 of us, all of us have leverage, and the question for us is, you know, are we going to deliver or not . So, i dont know what they want changed in the bill. This is an opening offer, not the final deal, so time will tell they dont have much time they just have a week and the cbo score that comes out in a matter of days is going to make the debate even more delicate. Lawmakers are going to have a hard time standing behind a bill that sees tens of millions of americans lose coverage and premiums that dont fall substantially for consumers. And then there is this, former president obama weighing in in a lengthy facebook post, attempting to appeal to senators conscience here. I still hope there are enough republicans in congress who remember that a Public Service is not about sport or notching a political win, that theres a reason we all chose to serve in the first place and that hopefully its to make peoples lives better, not worse. Of course, thats a move to preserve his legacy, to preserve the signature legislation that he put forth during his presidency, but senator Mitch Mcconnell and his Leadership Team in the senate, melissa, are going to work over the next week to put something in place of that kayla, i know the bills very long, what, 140 pages or so, but what are some of the clauses, the parts of the bill that might be most subject to horse trading . Well, there are quite a few, melissa. The issue is that those 52 senators that Lindsey Graham was just mentioning, they all sort of want something different. They all want to be able to bring Something Back to their state that is a unique need that they have right now. Senator rob portman, for instance, from ohio, even though the bill allocated about 2 billion for opioid addiction, which is something that he had been very vocal about, he really wants there to be more provisions in medicaid he doesnt want the spending cuts to be as steep as they are. Ted cruz, for instance, wants premiums to be lowered across the board. But, of course, thats something that will require the cbo score to come out. Overall, there are tweaks that they can make to the structure of the tax credit, to how long the sunset horizon is on the Medicaid Expansion, but it just depends on what certain senators are willing to give up and what actually gets their vote here, melissa. Kayla, thank you. Kayla tausche on capitol hill. Lets trade this, because Health Care Stocks, we saw distinctive moves within the group, steve, so how do you sort of interpret the moves . Hmos have been strong ibbs up 11 in the last six days i think when you look at this its less onerous. All the things that we thought were going to be the case on drug pricing, less onerous on the companies, so is it closure . No, because the bill has to pass, but i think even if it does get passed, a lot less people are going to be a lot less worried if i look at the stock reaction, the market is telling me this thing is going to pass i think the market voted and said this things going to pass. Four senators are the swing votes, one they know they have leverage, two, theyll likely negotiate something away we know this is the sausage making process that happens when bills occur, and the market voted. So you look at what were the sectors impacted within health care, hospitals. That was the Biggest Surprise to me, right, because theyve been in the down trend for a long period of time here. The idea is that now its less bad in the short term. It might be worse in the longer term, but its the Medicaid Expansion or contraction thats going to matter. Whats interesting, look at health care, its looking like its bottoming in the long run this might not be as bad as we thought prior to election would you really chase todays news thats the question when you think about it, you have collins also holding back support and, you know, this deal was done secretively and they say they want to get it passed and want to get a chance to be pitched not in the public spotlight, but bottom line, nothing different here than what weve heard about. I hear on hospitals. It has nowhere else to go but to see short covering, but is this a day you want to follow it back in bottle tech rally is different commentary coming out of trump and some of that administration, its less about whether youre going to see anything positive in terms of that sector. Its about, again, taking the target off their back. I dont think theres going to be real drug legislation thats very bullish for biotech. That can continue to rally a sector thats right now looks ridiculously cheap i agree with tim. I do think you can chase hospitals in the short term. Health care is not an expensive stock, bottomed out around 14. 5, 15, end of last year, middle of this year, seems to be bouncing off the level now. I dont think people want to be shortening like this into the next couple weeks. Stock could close at 19 i could see it with a low 20 handle thats a significant move. I do agree on biotech, though. The bulls eye everybody thought on big cap pharma and biotech i think has been a lot of smoke and mirrors and talk evaluations are reasonable the science works. Look at clovis recently and you have a space that wants to break out. Not just saying that today, by the way. Weve been saying that the last three months after a big move, do you wake up tomorrow morning and buy into this as a trader i want to wait for a pull back, but we have been talking about how it wants to break out. If youre wrong, nothing wrong with taking profits. I agree with you, psychologically the 20 level, if you get some kind of breakout beyond that, yeah, i would chase that i would go with the momentum how about valium . Tim, myself, karen, i dont know if b. K. Is long, youre not did it go up . Ill say yes you should be there its up 50 . Im playing this thing for a move to 20 not a move to 15 im playing this because this was something that was going out of business. It was a very expensive option, but im playing for a move to 20 or 30. You think thats impacted by the health care . I feel thats just kind of an individual store this is dragged higher. Dragged higher. Dragged higher. In a less predatory Regulatory Environment theres possibly a lot of litigation that could have come against this company im not saying it wont, but it relieves a lot of the burden on a company that i think this is still a stock story and this is why i own it and made the call on the power lunch stock draft yeah. Which could have me winning it running away, although its a long season. Its because ultimately you have a case where is it debt profile youve alleviated a lot of the pain bausch and loam, real brands in the company, real cash flow generation paulson is on the board, theyve moved things around. Heres my question, a lot of passive money in etfs. Ibb weve seen extraordinary volume for a couple of days straight now would you take profits or vice versa . If you ask me to pick, i would be thats what we do here, guys. You just said the most trusted eye brand in canada and i didnt even flinch that was convincing, wasnt it very compelling. I let that go youre coming at me now. With that said, id rather be an ibb right now. You saw it today i dont know if it was the fact ibb is breaking out, gilead to the upside in a long time. You got to hope that this lasts. If it does, ibb is heading much higher why do you believe this is the breakout what was the catalyst for the breakout in biotech . A story around ten days ago . Its regulatory. Its all regulatory still havent seen the executive order. You had the original impact from Hillary Clinton way before the election results, and where biotech fell off 20 or 22 then you had trump saying it was a bipartisan issue about drug pricing. Now you have him coming in saying, you know what, were going to support these companies. Its a lot less of headwinds on a regulatory front thats why they are moving now you also have xlv and bigger names in the space rallying think about it, now they have capital in a currency thats more value to go out and buy some of the smaller tech biotechs xlv ran 4 in the same amount of time it took ibb to run 11 youre talking about an outsize move if you i think they both have to move in the same direction. I dont think you can have the xlv trade lower and the ibb higher i dont think thats going to happen youre exposed to all sorts of the other parts of health care, not just the ibb, so in this environment where weve seen these hospital and sort of Health Care Bills move higher i dont know if i want hospitals here i think they have a target on their back, but United Health care, which continues to run higher, im going to butultimately the ibb trade at a massive discount to the s p. Gileads maybe 11 times 2018, but you get to a place where some of the Health Care Stocks that have been defensive, and they should be United Health cares Business Model is largely intact in either scenario. Coming up, oldies but goodies. Oracle hitting an alltime high today and a number of other 90s tech darlings that could follow suit plus, tesla reportedly making a move into music streaming. What it could mean to apple and spotify. Later, solar stocks soaring after President Trump suggesting a border wall could include solar panels solar suddenly a trump tdera well weigh in much more fast money after this [vo] when it comes to investing, looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. Deartheres no other way to say this. Its over. Ive found a permanent escape from monotony. Together, we are perfectly balanced. Our senses awake. Our hearts racing as one. I know this is sudden, but they say. If you love something set it free. See you around, giulia. Welcome back to fast money. Tesla surging nearly 2 and hitting yet another alltime high and this as reports of the company is in works to create its own music streaming service. This would compete with apple music and spotify. Spotify reportedly has 50 million subscribers, while apple has fewer than 30 million. Yeah, i mean, thats in the happy days parlance, thats potentially jumping the old shark. I dont know if thats in the Business Model of tesla, but whatever tesla does this then its jumping the shark . I dont know. I really dont know where their head is at with this what i do know a couple days ago they announced they might start to manufacture cars in china, saw the after hours moving that day. Now you see what do you do with the stock here, and ill say it again, i still think you stay with this name the path of least Resistance Continues to be higher, a lot of doubters in the name we can have all the reasons why the stock continues to go lower, but theyve existed for the last two years. You say to yourself maybe theres something more to the story than we give it credit for. Technology company, auto company, now a music streaming company. Does it matter . This is what they say about that they want to provide the best incar experience for the customer to maximize their happiness. One thing, though, what it is, its a stock with a 24 shortage guys flag this, as long as that Short Interest stays in the 20s, its very difficult. Very difficult Short Interest is not enough to keep a stock here 80 we could have said this all along the way. I have not been in favor of the stock in any way, so my view is that the reason that the stock trades here is because, as adam jones says, this is a case where its a 10 trillion transportation disruption story with, by the way, a bit of an energy play to it, and this is all the reason why you want to own it and the fact they are going with the streaming service, incar experience, means they are trying to cement that whole autonomous driving and the operating system much in the way apple is if i wanted to give one of the two companies the edge in terms of whos going to be there in the end, i think its going to be apple, but in terms of what tesla is doing to develop the technology, i think other people can copy cat or doing themselves, thats my view on tesla. Thats a holder to tesla knowing they are going to have a streaming service doesnt necessarily excite me. I didnt buy any more because of it im in it because of the disruptive factor, not only in the auto industry, but the energy industry. Going back to the decarbonization of the u. S. Electric grid. To me thats the story with tesla and why people are longterm holders. Like guy pointed out the holders of the stock are in it for the next several years. Decarbonization, this is like a wish list not a wish list they already they are doing it today today. Today. Youre going to lets take go to work for an oil company and see how long you last there. Its already happening they can also be much more disru disruptive in logistics. This is a company thats burning cash like its their job. It is their job they are a startup. Theres a lot of things they can be theres 10 trillion things they can be negative cash flow is north of a billion dollars the problem is, they do a secondary, theyraise money, an the stock trades higher into the secondary. Theres one thing we havent talked about there used to be when oil was coming down, tesla used to come down, as well. Oil has been collapsing and tesla still maintains this ability to rally, up 80 i would say dont fix it if it aint broke. This is a company that can give you Software Updates so much competition. Do you have the stock today in and out multiple times i believe that. Fully allocated i have to sell something, im fully allocated. Im hoping to figure out what i can sell and its a good place to be in lets get to our move of the day right now. Check out the solar stocks etfs surging 3 today for its best session of the year and this reports President Trump says the border wall could include solar panels to, quote, pay for itself these stocks initially sold off after the election, so is solar suddenly a trump trade well, you know whats interesting about this, this is not the first time this has come up all of a sudden we get a 3 move but its been talked about, the idea you can put solar panels on the wall if it ever gets built im not necessarily buying Solar Companies because of this one move here. I would not chase it tomorrow. The chances of the solar panels getting on a wall, that may or may not be built, may or may not be built, i dont think thats a solid investment one, by the way, more leverage commercial installations. Why isnt there any more buy in tesla this is a decarbonization plan im not buying i know youre not what i would say is, solar has provided so many opportunities for people to chase things like this you dont chase this news. A lot of these companies have trouble making their bottom line, making money are you short them . No, but these are stocks where i would be scared to death by that squeeze. We got a news alert on American Airlines. Phil lebeau has more phil melissa, just had a conversation with American Airlines ceo doug carter indicating Qatar Airlines would like to buy up to 10 of american shares. The conversation was on the record but would not be recorded, they asked we not record it. Heres a couple of comments from doug parker on the issue of his reaction to qatar saying they wanted to own 10 of american. He said, i found it confusing by the way, the first conversation was two weeks ago in cancun, mexico. I was a little bewildered why an airline we were aggressively fighting would want to take a stake in us. Makes no sense. Then the question of, well, is it the possibility qatar is trying to soften up americas resistance to the gulf carriers expanding in the United States on that point, doug parker says, if that is their motivation, it is misguided and ill conceived all this is doing is strengthening our resolve to defend our airline, which we will continue doing vigorously. Bottom line is this, melissa, doug parker is not saying if hes going to vote against Qatar Airlines taking a greater stake because it needs board approval. Hes not going to indicate what hes going to do, but read between the lines, they dont want Qatar Airliness investment in American Airlines and they are going to be aggressive to continue to fight the open skies agreement and having washington push or pushing washington to stop the expansion of these airlines in the u. S. Has parker talked to anybody at Qatar Airlines since the filing no. He has not and i asked him today, do you understand, have they given you a reason he said, nothing other than what we saw from the filing today where they say they are going to be a passive investor if they can make the investment. Phil, thank you phil lebeau with an update on the American Airlines story. I think American Airlines trades about nine times forward earnings weve had discussions on this numerous times extraordinarily reasonable i think this is a stock that can make it up to the 2015 high, which i think was north of 55, so i still think theres room to go nothing we havent said before if you need sort of a bogey for the entire space, the transports measure than the iyt, stay that way along 160. Im a shareholder, these are the places to play, opposed to united what do you make of this news i think this news are not going to happen. I think they are fearful of isolation with their neighbors in the gulf and they dont want a cancellation of the open skies agreement, buy some boeing planes, you have some insulation i dont think this is going to happen certainly not a reason to buy the stock. Actually, i think this could be bullish for American Airlines because of exactly what tim said, they are now theyve showed their cards we know they do not want any changes over there and this is a move to stop those changes, so now its out in the open Everybody Knows about it, and i would buy American Airlines on this all right, still ahead, Dennis Gartman says theres something crucial investors are missing about the relationship of oil and stocks. Hell be here to explain what that is. Im melissa lee, youre watching fast money on cnbc meantime, heres what else is coming up on fast. God, the pressure, i cant take it. Round one of the bank stress reports are in what it could mean for financials and rally at large. Plus, missing the 90s dont, because a number of 90s classic tech stocks are surging, and a few of them look ready to recapture their old highs. The names when fast money returns. The power of innovative thinking. The power of 100 of the worlds top companies. The power of an etf. The power of qqq. The thinking we put in, clients get out. Power your clients portfolio at powershares. Com qqq. Before investing, consider the Funds Investment objectives, risks, charges and expenses. Call 8009830903 for the prospectus containing this information. Read it carefully. Distributed by invesco distributors inc. Containing this information. Read it carefully. We, the tv loving people, roooooaaar want our whole house to be filled with entertainment. Easy boy but we dont want annual contracts and hardware. You scoundrel we just want to stream live tv. And we want it for 10 dollars a month. batman raspy wow. Id like that in my house. Its a very big house. Yeah, mine too. Look at us. Just two bros with sick houses. High five. Directv now. A big streaming deal for 10 a month. Its entertainment your way. I put everything into my business. And i had all these points from my chase ink card. So i bought ingredients, utensils, even made custom donut cutters. Wow all with points. Thats how i created the ripple the doughnut in a doughnut in a doughnut. Suddenly its everywhere. I mean, it really took off. What will you create with your points . Learn more about the ink business preferred card. Who is this, journey . Bonnie tyler. Total eclipse of the heart. Tashdo othhet. Tol utwnf e ar awful awful over hereno ver here dog barking whoever threw it has to go get it. Not me somebody will get it. dog barking anyone can dream. Making it a reality is the hard part. From the b2 to the upcoming b21, Northrop Grumman stealth bombers give america an advantage in a turbulent world. And were looking for a few dreamers to join us. Welcome back to fast money. Lets take a look at themove i oracle today it was a stunning one. The stock surging 10 , almost to an all time high after earnings last night definitely a 52week high and that has us feeling nostalgic for the four horsemen of the 90s, oracle, microsoft, cisco, intel. Oracle and microsoft trading at or near alltime highs, both up double digits this year. Cisco and intel both have a way to go, but cisco hit a high last month and intel did earlier this year stocks are trading much lower multiples than they did back in their heyday in the late 90s. You remember the a90s, grunge was in making regular trips to canada yes, i was. Whenever i can check this out, back in the dot com double, cisco was 274, now at 16. Last time oracle was at these levels, 88, its now 23. Microsoft was at 78 in 99 fast forward nearly 20 years and its around 31 then theres intel, more than 50, now supports a multiple of 15 is old tech your best bet at this point should you play catchup in some of these names oracle, yes we talked about it last night. We think theyve kbn bullish on oracle apply a 5 move, but what did oracle show you . Theyve made the turn to cloud almost as fast as any other company out there. Used to be about new software licenses, nothing to do with it now. Its about the growth in cloud this is the question, you said 23 times, thats trailing. Its 17 times forward multiple if you like sales force, which by the way i still do at close to 60 times forward, you have to love oracle at 17 times forward earnings, so i think you could chase it here. These are Companies Making the turn s. A. P. , friend of the show, bill mcdermott, that stock is up year to date. These are big companies. I dont think this translates to an ibm to an old, old hardware based tech i dont think they can make the switch, but those people that didnt think they could make the turn to cloud, this is a huge bet that youre making on these companies right now. Crm were the cool kids on the block. The lust for them is fading. I dont know. You know, oracle up 8 , 9 , 10 in a day, to me, thats a sell not to say the companys not going to do well, but weve seen a massive move here. If im long, im selling certainly not buying if you had a basket of these stocks, what would you choose right now . Good point. Some people want to throw microsoft in the fang group. No, no, no, microsoft goes in the oldies i know that im saying i feel youre getting new age tech with microsoft, which is one of the reasons why its been rerating oracle, as well, because of the move to the cloud. Id split it in half between both i think you have a case here, this is the point were making, the oracle found itself in a Software Space crm is getting a multiple 50 times what their multiple is. Cisco is moving to a recurring subscription and Software Platform this is not the cisco of back in that era thats a higher multiple stock than here. I think ciscos the one you buy. Good point there. Were talking about the old tech names, but they are in this era. Ibm, old tech name, which is struggling steve mentioned the size of ibm. Market cap wise, ibm is smaller than oracle. Oracle is north of 200 billion. Ibm is 150 billion company. The reality is, ibm is so far behind the curve now they dont deserve the multiple they currently have i dont know if thats true the watson . Watson, a. I. , block chain small part of the business. What are you looking for, something thats really going to ramp up and where the growth area is . Ibm over the old . Absolutely. Ibm over all those our next guest says if history is any indication, tech could have a lot more room to run. Lets find out why hey, chris hey, melissa, great to be here when we talk about tech, we need to remember for as good as theyve been in 2017, the move has really not been as exceptional as a lot of people believe at this point. This is the combined weight of the ten largest stocks in the s p. Most of which are fang and tech stocks only 19 right now compared to 27 at the peak in 1999. Barely a fifth of the market today, almost a third of the market in 99. Were not even close to how narrow the market can get, and if you look at 2015 as an example, if you look at the stocks contribution to the overall return, the ten largest stocks in the s p were responsible for all of the years gained in 2015 thats a narrow market so, 2017 so far, the ten largest stocks thus far, only responsible for a third of the years gain. This is a broader advance in 2017, certainly, than 2009 or even 2015. Ill give you two names that we like here, the first of which we just talked about, oracle, but lets put it in some context this is three years of indifference, three years of purgatory, just beginning to break out. Getting up through 50 today, it counts for 62 in our work. We think to stay long. And lastly were going to talk about a stock thats been in the bear market for the better part of the last several years. Ddd systems. From 100 to six. Basing now for two years, 3d printing, starting to act better now trending up. We think this is a 30 stock its 22 today. Oracle, ddd systems, two ways to play this, but broadly, this move not as narrow as people think. We invite chris over . Come on over, chris. Do you remember the longer the base, the higher the space spinal tap. Luigi matta thats what i was reminded of with oracle and 3d systems lets talk about oracle this is not just a threeyear reference point. These are levels we havent seen since 99 this is trading at the fifth of the evaluation in 99. This is an impressive move any pullback to the upper 40s you have to buy the stock. 60 is our target you mention this is a broader rally than even 2015 what impact do you think etfs have on that and passive investing where everybodys buying across the board . What i think is interesting, certainly theres a lot of unnatural bids for stocks, but the correlation among stocks and the s p right now is near a 15year low, so if anything you have a lot of stocks moving independent of one another this has been a rotational market lose a group, gain a Group Health Care is the latest, right . Equally weighted basis, health care is doing better than tech this year. Health care is the best performing sector this year when you equally weigh the stocks that was impressive. Chris, when you talk about following accounts and looking for the rotation, when you see guys buying tech and when you look for the next 10 , is the next 10 when youre talking about it in tech year or next 10 for them going to be in energy, because they need to make up a lot of ground in the back half of the year. Im not convinced its energy for a couple reasons last time we were on we talked about this we need to remember with energy its behaving a lot like tech did in 2003, 2004. Tech went down from the highs, running off the lows in 02 and no one made money for a decade, frustration on both sides. Banks are familiar, right . Banks went down 80 from 06 to 09. In 12 weeks they double off the low, no one made money until last year. These things take a while to repair themselves. Im not sure energys done it yet. Chris, thank you. All right, buy, sell, or hold, chris two picks, oracle and 3d 3d im i dont like to be on the fence, but i am oracle spoton if you do why are you on the fence . Thats a bk back in the box i love it, i love it. Put it in the top drawer at one point. I did, back in 201415, that was painful. These things had a painful dod here, but i think if youre looking for growth and now you have price action, thats changed. Whats changed recently . Well, hps talking about coming out, ramping up 3d printing division, which could be viewed as competition, but if its also successful, you have a real market here and maybe 3d systems becomes an acquisition i feel i heard that when you put it in the drawer still in the drawer, keep it in there socks, paper clippings. Nothing wrong with old socks. 3d systems and, granted, its had a breakout and theres a reason for the breakout, but this is to me like the phase i think were going back there look at the sphere without making any money until everyone thought it was the flavor of the day. In oracles case, first of all, they outperform, benefit, but more than anything, people are complaining about the only thing about the evaluation were seeing thats not the reason still ahead, bed bath getting crushed, sinking 7 . How much worse it could get. Plus, Dennis Gartman says theres something investors are missing about the move in oil that could have implications for lbeertoxpint . , so what is i hel he ela just imagine if all the machines at work were constantly thinking. Always on the lookout for patterns and connections to make everything work better. I call it the internet of everything, but its really the internet of everyday life. The partnership between Dell Technologies and sap helps make the promise of the internet of things a reality for our customers. We know how powerful live data can be. We use sap at dell to run everything from finance to procurement to travel expenses. And thats the same kind of live insight we can now start offering to all of our customers. And as we get better information, better insights, it can improve virtually every aspect of society and the economy. Thats the opportunity of our generation. The next industrial revolution. Thats why Dell Technologies runs live with sap. upbeat dance music dance music abruptly stopping dance music starting then stopping welcome back to fast money. Dont stress thats what the fed is telling the banks, at least for now. News alert 34 u. S. Banks all faired well in the stress test no big red flags the fed said all the 34 banks under the severely adverse scenarios could continue lending to businesses and households thanks to the capital built up by the sector following the financial crisis under that stress scenario, all the banks have a minimum cet 1 ratio above the 4. 5 level, big six banks comfortably above that level. Improved this year compared to last and so did trading losses, apart from goldman sachs, where it worsened fractionally citi and jpmorgan have done better than the brokers. Both of whom have seen a yearonyear decline in preprovision net revenue, which means lower Revenue Generation under stress this year versus last the newly included slr, or supplementary leverage ratio, also hurt the trading banks more than the Money CentersMorgan Stanley in particular, closely followed by goldman sachs. All in all, results bode well for passing the quantitative fo shareholders next wednesday. Melissa . In terms of next wednesday, which banks in particular are under watch . It does look like across the board maybe theyll pass, but i thought wells fargo perhaps could be under scrutiny. Wells fargo people will be looking at the qualitative part of the test, given the issues theyve faced over the last year or so. That said, theyve clearly already made a lot of changes to the way they do things and thats what will be under review goldman sachs, for example, on wells fargo thinks they will pass that test and get around to 2 share price jump when they do in terms of increasing capital returns, coming into this, a lot of focus on Morgan Stanley and citi, who have a big ability to increase their payout ratio relative to last year, and because of that slr point i just made, perhaps Morgan Stanley will have less scope to do that than citigroup, but if we get lots of banks paying out more than 100 of earnings, does show a seat change from a couple years ago, because banks will be using builtup capital to return to shareholders. Thank you do we position ahead of this Event Next Week . I think youre going to need to finish up the quarter end a lot of window dressing guys want to show they are long, bio tech want to show they are long, technology, energy, financials, not long why would you not want to show youre long financially because when you look at a performance basis, they are only up 4 year to date, so guys want to show they are long, technology up double digits, mid double digits, they want to show they are really long and then they have to make up that performance, so come the new quarter youre going to see guys buy energy and buy financials. At the same time this is a group that has shown in terms of banks some momentum in the past month. I would think that would be an area this guy wants to show. Is he long i think thats one way to play you can play xlf we mentioned Morgan Stanley, too. Relative to the decline of a kre, Morgan Stanley has held up well moving on, crude making a small comeback today, but still in a bear market is opec, responsible for the worlds oil of production losing its grip on the market jackie is in the newsroom breaking it down hey, jackie. Good to see you, melissa. When opecs cut went into effect in january, many investors thought the member nations would break their promises and pump more oil, but that did not happen and Oil Prices Remain steady when the cartel announced in may it would extend cuts another nine more months, investors were still skeptical and now it appears they had good reason proving the old adage once a cheater always a cheater, even if briefly reformed. Member countries like libya, nigeria, iraq, and iran are upping production, even the saudis saw a boost last month. The bottom line is, certain countries cannot afford not to pump and even saudi arabia, who presumably can withstand a break is concerned of giving up market share to the shale players, who, by the way, have taken them all and run here right now this is a simple supply and demand story. Output continues to rise and demand isnt moving up to beat it, but market tells me dont count opec out yesterdays elevation of the saudi crown prince, i. E. Heir to the throne, probably not a coincidence after this oil price dropped close to 40 the new crowned prince worked closely with the Energy Minister and is known to be the engineer around the ipo opec may have lost this battle, but the jurys still out if it lost the war melissa . Jackie, thank you so, with u. S. Production in high year and member nations pumping at furious rates, is opec losing this war for oil Dennis Gartmans got the answer for us dennis, what do you think . Oils trading at levels pre all these recent opec cuts well, theres obviously good reason as jackie just said, libya is producing more crude oil, youve got nigeria producing a lot more crude oil. We are clearly producing more than we have ever have and will be producing more six months from now and a year from now than we are producing now and the problem will be with the fact the new saudi crown prince, a very smart guy and fellow we need to keep our eye on, because i think hes going to be one of the most important people over the next 20 years, has been in the past told you that he understands that crude oil over the course of the next 20 to 40 years is going to be a worthless commodity. It will be supplanted by something else, a new technology, and he continues to supply crude as he can, so opec as a force to be reckoned can. I think its era is passed. Crude is a little oversold yeah, go ahead just on that point, all right, this is also the crowned prince who is in charge of the aramco ipo, so he has a good incentive to keep the price of oil higher, no hed like to keep the price of oil higher he wants to sell to somebody else because he understands 40 years from now aramco is probably worthless theres a reason why hes going to be selling aramco people dont take something public because they think its going to go higher people take something public because they want to cash out, and i think too many people misunderstood whats going on there. This is a very smart young man he understands whats happening. Crude oil on balance is a demons trabl bear market. We took too much out of the price in the course of the past two weeks, but if you get a 4 bounce from the intraday lows to highs, you have to be a seller this is still a protractive bear market, and what people dont understand, what i find amusing, is everybody seems to think we crude oil prices are detrimental to stock place prices. Its absolutely the other way around Weak Crude Oil prices are beneficial to the economy and stock prices dennis, you say crude could move aside from the shortterm bounce, it could move egregiously lower. Im not sure what you mean by egregiously, but could that become a credit event which could spook the markets . In another two to three to four, five years, of course, there will be a credit event not a question what do i mean by egregiously lower . 25 years ago i shall be long dead, obviously, by then, but crude oil will be less than 10. It will be worthless for all intents and purposes and the crowned prince understands that. Technology will give us some other commodity, fuel, some other method of driving our cars, driving electricity, whether its fusion, whether its fission, a combination of wind, whether its solar, something will supplant fossil fuel he knows that. Dennis, good to see you thank you. Thanks, melissa Dennis Gartman. Sounds like dennis believes in decarbonization and not just from canada. How would you play that go to canada. You would no, im kidding anyway. What i think is actually the current environment towards oil is i think people are way too bearish, a place where the economy if you have gdp 1. 6 or where we are, i think the supply balance is not where opec said it was going to be, but you get to a place here where actually i think the risk is the upside at a minimum this egregious move lower is not going to happen lower than ever right now the xle is down 14 . Youre going to see guys start to nibble in the xle in the next two to three weeks its getting to that point of critical mass. Guy, would you nibble not yet, i dont think. Ill say it again, bk has been on Deutsche Bank, if you think crude bottomed, i think the play is get along Deutsche Bank if crude rallies 10 to 15 , if you think crude bottomed, buy Deutsche Bank. Still ahead, 2. 2 million, one is betting costco could plunge nearly 30 in the next wo wll gar w,eet the details youre watching fast money on cnbc, first in business worldwide. 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. Deartheres no other way to say this. Its over. Ive found a permanent escape from monotony. Together, we are perfectly balanced. Our senses awake. Our hearts racing as one. I know this is sudden, but they say. If you love something set it free. See you around, giulia looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. The future isnt silver suits anits right now. S, think about it. We can push buttons and make cars appear out of thin air. Find love anywhere. Hes cute. And buy things from, well, everywhere. How . Because our phones have evolved. So isnt it time our networks did too . Introducing americas largest, most reliable 4g lte combined with the most wifi hotspots. Its a new kind of network. Xfinity mobile. Welcome back to fast money. Bed bath and beyond taking 8 in the after hour session after reporting earnings guy . People have been trying to buy this stock because of evaluation, its been cheap now for a long time, but its a value trap the stock from 2015 has been basically cut in half. Evaluation is still compelling, but First Quarter is historically their best quarter and this was a disaster. Plus, they said they are not going to update full year 2018 guidance whats that mean stay away. Youre not buying enough scented candles. I am. Anyway, speaking of retail. Look who decided to crash the party tonight. Who oh nathan is at the plaza with a special options action hi, dan. Since last friday when amazon made that surprise whole foods bid, cross hairs of investors now 10 in the last week you know, today options buying ran really high, about three times the average daily volume one large trade that caught my eye for a couple of reasons, really how far out it was and the size of it, today when the stock was trading at 160, remember the stock was just at 180 about a week ago there was a buyer of the january 2019 120, puts 5,000 times paying 4. 35 thats about 2. 2 million in premium, if that is an outright bearish bet, it seems peculiar given how far out the money is, the break even would be down, you have 18, 19 months, but to me that depends whats going on. If youre loving the stock, thats not particularly a great hedge either lets look at the chart. We talked about the price action over the last week look at whats going on here, obviously, 120 was this really nice excuse me, 170 was a nice breakout level, consolidated, there was a couple gaps there look at that bang last friday, that was the big gap and i just want to kind of go out to five years, kind of with that 120 strike in mind here, look at the move over the last five years. I think we have a fiveyear chart right here this was that breakdown level. Huge gap on big volume heres the longterm up trend here so to me i think this has room down to 150 at that point, maybe investors who are worried about trading at 30 times where it was last week near the highs, maybe get more comfortable when its trading about 25 times earning should we invite dan over no. Are you kidding why would we . Nope, nope. Were not inviting you over. Doesnt work that way, dan. Were just out of time. Thanks see you, guys for more, check out the show tomorrow 5 30 eastern time poor dan when this bell rings. It starts a chain reaction. Thats heard throughout the connected business world. At t Network Security helps protect business, from the largest Financial Markets to the smallest transactions, by sensing cyberattacks in near real time and automatically deploying countermeasures. Keeping the world of business connected and protected. Thats the power of and. We created the ripple the doughnut in a doughnut in a doughnut. Right away, it was a success. I mean, it really took off. What people dont know is that it all started with points from my chase ink card. I bought the ingredients, utensils, even custom donut cutters. Wow all with 80,000 points. What will you create with your points . Learn more about the ink business preferred card. How would you like to come meet me and the traders and get a behind the scene look at our set on the nasdaq . Now is your chance to do just that bid, this is for a great cause go to charitybuzz. Com now for the details and make your bid. Time for the final trade tim . Talk about oracle how about the airlines, delta. Evaluation compulsion, stay there. Im going with the oldie but goody factory in the box ddd time no nibble, xle energy, time to nibble i hope the mets can get off the snide tonight. Rough road trip. Off the need would be great why you got to do that . Typical now, look at the turn in macys today. I know you were watching it. Sevenyear low reverse, goes higher letter m, first time in a while. Im melissa lee, thanks so much for watching. See you back tomorrow at 5 00 for more fast money. Meantime, jim cramer starts rig 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 im cramer welcome to mad money. Welcome to cramerica i happen to have some friends here with me today my job is not just to entertain you, but to teach you. Tweet me jim cramer at any given time the market can be gripped by fear