The markets. Rally in the homebuilders surging on bullish housing news. Julys new home sales hitting a nineyear high and a blowout quarter, so, is now your best opportunity to move into the housing trade . I think theres more to do here. You think about where Interest Rates are and theres a nice lead time. The implications for the homebuilders, but also home improvements. I think you can look across the spectrum. Bottom line is you saw housing start last week. Were still well below bubble territory. You saw sales today, were back to 2000 bubble down south. That part of o the market is really starting to open up and it speaks well for the economy. So im encouraged. I like gordon. Ipg youve got an opportunity in some of the again, in the Sherwin Williams and rest hard wears. I like the housing starts. We talk specifically about moving out of the cities and finding traction and leaving and having babies and essentially spreading their wings. Babies . Yeah. You see job growth. Thats another story. Thats horrible. I thought they wanted to live in group homes. Jobs were so concentrated. So concentrated to the cities. They calm through, theres renting going on like crazy. Theyre not going buy in cities. They have kids, they move out. But job growth needs to be there. You need to see it out of the and were starting to see that occur. Youre starting to see that happen and its going to facilitate the new purchase, especially at the lower end for thats where we saw the strength. At the lower end, which holmes caters in. Also on the high end. Toll brothers has been ab underperformer. I think people are waiting to see and they want to see im long both. Im long both polt and holmes. I did average down in k brk holmes, i did not buy more polteric. Theres still more room for this to move higher. Im staying long. Heres the question. Was this just a surprise on the numbers in terms of what people expected or this is a new trend. Im looking at stuff like rail carloadings for lumber. Still at low levels. One of two things are going to happen. Either this was a surprise. People didnt expect it to be this big or lumber prices are going to pick up. If you forced me somewhere in the homebuilder area, idbuilde. Bd doesnt like to buy things. If you want to be skeptic at the july number, the error of margin on july numbers plus or minus 12. 7 . At the beginning, it was 12. 4, but you cant deny that a lot of the stocks, whether it be fortune brands, 12 months, year to date, they have been strong stocks. By looking at weve been talking about forever on this show, it takes time to 18 months to take these two metals and what youre starting to see is access to capital, but access to credit is really working here. Youre right to be skeptical because were not seeing other parts of the economy. That typically go along with this, but again, look at where the. Howard ing starts numbers are. Were still 25 below the peeks. I expect that to go to 24 million. Back to those peaks again. Up 8 today. Im long holmes, but you have to point out there is a 24 short interest. Thats been a theme. The Short Covering that chase where guys are covering into this rally. Because it was too painful. Had a 24 shortage. That is is a major factor in holmes, which is up. Tristate area, look outside connecticut, new jersey, new york. Prices arent necessarily going up. As a matter of fact, theyre coming down in a lot of those areas. You got south, go to florida, pockets of the Middle America and youre statingi ing you got south, go to florida, pockets of the Middle America and youre statingi in you got south, go to florida, pockets of the Middle America and youre statingi ing you got south, go to florida, pockets of the Middle America and youre statingi i starting rise. We bought a lot of properties in florida. The reality is prices continue to go higher. Main ali because of job growth. The renovation strad the strong. Not necessarily the building. The homes. People cant afford. Put a kitchen in. Without question and in fact, the residential private Investment Trends are great leading indicators. Even though new home sales shouldnt matter for someone with an existing home, theyre very, very good and speak to whats happening at lowes and home depot. Youre telling me theyre building like crazy. That says theres a lot of supply on the market. Yes. Any way. Other parts of the economy are not expanding as this was suggest. All im saying is where building stocks at the highs, thats not a great risk reward. Were getting euphoric about one number and are you skeptical . We are talking about retail stops yesterday night and for the past two week, weve seen a renaissance in these stocks. 13, 14 . Crushed. Its because they got now, lets think about this. Five consecutive numbers. One at a time. One at a time. Not just one number. Also a Company Reported today that showed strength at the highend, which is what people are so concern ed about. Highend real estate. The highend part of real estate people are uber concerned about and they saw signs of spring. That shifts sentiment to your point. And helps bode a a little bit of. You cant make money of the stocks. I wouldnt get that euphoric about it and when we get back to the retail, just look at the other side of that coin. Okay, so, retailers are cutting sores. What does that mean . It means people are going to go out of work. Cisco cutting people off. I get what youre saying. Take a look at home depot. Best buy. If you like restoration hard wear stereo systems and shove them into their dens. Especially if youve got a tv from ten years ago, you have to rewire your house to put that i just bought an x box for my daughter. Im ten years behind the trade. You going to bring in atai, too . Congress is my game. I cant argue with the fact. The Housing Inventory is low. 4. 3 months of simply. Theres not much out there. Moving on to the Broader Market as. The markets been trading in its tightest range for a longer period than any time in last two decades. Heard that right. How worried should investors be . Chris is over at the smart board. Chris, how worried should we bo b . I dont think they should be worried. Lets recount where weve been. We had a two year s p range. Broke out decisively in july. Weve now spent the last 20 tas in one of the last ratings. Lets look under the surface. What has the market done while its paused over the last two plus weeks. Beta stocks have outperformed by 300 basis points over the last 20 days. We think thats consistent with the market thpt that wants to go up, not down. Weve seen short interest. Momentum stocks. Those are all the factors we associate with the market that wants to go up, not down. When we look at the leadership stories, semiconductor, new highs and new relative highs this week, look at names like micro chip. That is pro cyclical leadership. Factor work under the surface is very good as well. What would cause you to be concerned . We saw this article in the journal today about the vix at its lowest in two decades. Does that make a difference to you . Its not been a very good predictor of forward market return. We dont spend too much time looking at that. As far as sent. Maybe we ge bun to see evidence of complacency creeping in and just going back to the debate about whats working and whats not. When you look at the home billers today, another group moving higher. Not just the builders. Lazy boy broke out today. Best buy as well. I think those are all charts supportive of the pro cyclical trade. Thank you. You need a lazy boy, tim, along with your x box. Semiconductor trade. Theres not many trades that im really semis included right now. I look at this market and say we talked about the shortage. Short covering and repositioning, which is a keyword we use on our phrase we use all the time. The position has gotten long. If you look at the motion of stocks in the russell 3000, the 50 most shorted stock, they were up roughly 30, 40 in the last six months. Its an enormous move, so i say weve seen a repositioning if you will, hedge funds getting longer. The underperformers. Theyve covered their shorts. And the key is what you said though. Have they gotten long to the point where theyre stacked now, now theyre bias is to the long side versus the short side and theyre not immediately going to get out of their positions. I dont know about that. See about the nature of the fact that by everything is in play, right . Except volatility. And i agree. Short volatility, thats a play. Thats exactly list, im not saying id want to be short volatility because obvious, you can get an event spike immediately, but short volatility and bye everything else. Theyre going to continue to control the show and people are complacent. People are complacent on the fact. Exactly why you need to be worried. Im telling you now, everybody goes to one side to have boat. You should too. You should be concerneded. Complacency. Those are reasons to be concerned. Everybody that is that has been in the boat has been working. I think consensus trades have been dangerous and largely wrong. Consensus moves on the recession, on china. These are things that have been so overweight, people have been so blindly following trend that is everyone was talking about, if youve been picking stocks and running counter to that, financials are clearly starting to get a benefit. Coming up next, tesla selling off into the close just as the Company Unveils the new model s and elon musk promises to deliver the fastest car in the world. Plus, beginning to look similar to both go pro and shape shack. The names and whether it could mean trouble and later, the cost of epepen fuelling outrage. But did mylan also raise prices on other drugs . More fast money right after this. 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. Our customer is a our 21yearold female. Heavily into basketball. Wait. Data just changed. Now shes into disc sports. Ah, no shes not. Since when . Since now. Shes into tai chi. She found disc sports too stressful. Hold on. Let me ask you this. Whats she gonna like six months from now . Who do we have on aerial karate . Steve. Steve. Steve. And alexis. Uh, no. Just steve. Just steve. Just steve. Live business, powered by sap. When you run live, you run simple. Welcome back to fast money. Lets get to the news alert on tesla, shares backed off from earlier in the day just as elon musk revealed several major upgrades. Phil . Melissa, this is about a new banner that tesla would be offering an were talking about more range, more speed and more money, which is certainly key to the bottom line for tesla. Start with more range. This is a 1 o 0 kilowatt hour battery that will be offered in performance versions of the model s and x. The range for the model s and look at this, this is important. The range will have 300 miles for the first time, making it 1 315 miles. 0 to 60 drops down 2. 5 seconds, the fastest production car that will be out on the market in the u. S. And the price starts at 134,500. The number, less impressive for the model x, but were talking about electric suv, a bigger vehicle and as a result, what youre dealing with a 289 miles as the range. 0 to 60, 10 educational backgrounds seconds here he is talking about the importance of this new battery pack and how quickly tesla can can fill demand for this 100 kilowatt power battery. We think we can do about 200 cars a week. 200 packs a week right now. And were working very hard to wrap that up as quickly as possible. So, you know, somewhere on the order of 10 to 12 of our volume. And thats as much as we can figure out how to make. Speaking of the teslas volume, all eye rs on that final bar in this graph. The total delivery that is year from tesla. The forecast from the company between 80,000 and 90,000 vehicles. There is no commentary today on the Conference Call about that. Autopilot, about model three, nothing stand. If you order a model s right now, you get a p90d, the largest battery pack. Wait a second, 0 o h hto 60, i the 100 kilowatt battery pack. It will cost you another 10,000. If you have an existing model and you want to upgrade, its 20,000 and believe me, there will be tesla owners who will be doing it. Im sure. I was just thinking myself i want to drop down 2. 5 seconds. I say that a little sarcastically because it seems extreme in terms of speed. Hes saying we could make, we think we can make 200 packs a week. They havent hit anything forecast lately. Why should we believe that . Zble theres knob whos said well have to wait and see. Its a little too soon. Look, theres going to be some bears. You and i have talked about this. They think hes filled with h h hyperbole and you cant trust anything he says. Having said that, most of the analysts and ive read a few notes, this is an important increment incremental improvement. See if they can match delivery expeck tases thank you. The stock has held in there. Zpl 24,000 short interest. What i like about it, i have been be bearish lately and ive been wrong, originally, it was about range, performance. Looks of a car. Because before this car, your choice was a prius. It wasnt a cool car. It was the electric car, but no one wanted to drive it. This is the First Electric car that people wanted to drive. And the price point was tremendously high above the prius, but i think its lost its way. Unfortunately bears, you cant break the stock. Zpl ik this announcement shows two Different Things and the stock reaction. Number one, the view from wall street has changed a bit since elon musk talked about his grand plan and how hes try iing to te this company. And this is a multiyear view. Trying to that i can this company and compromise the electric grid. Trz you start to see the Business Plan and how the upgrade cycle can happen here, so, if every year, youre going to get a 10 or 20,000 boost from tesla own rs that are going to want to upgrade their battery, now you start looking it it like an apple story. Multiyear type of year. It just seems thats exciting and why are we referring to chris bridges . Whats with the ludicrous . Yeah. Chris bridges. Sorry. All right. My point is ultimately, youve got a case where the stock has a lot of negative headline risk. 240 is the upper end of the range. Im happy the battery life is great. But the solarcity deal to me is partially out of necessity to keep the whole Magic Kingdom alive. Also interesting to see hes had safety issues that were really recently. Talking about speed. But nobody cares about the safety issues. When i say nobody cares, the stock doesnt care. Got to go on. Still ahead, left for dead retailer best buy, shocking the street. Logging its best day in more than three years. Why one trader is betting the stock to break out even higher. Youre watching fast money on cnbc. Heres what else is coming up on fast. You want answers . I think im entitled. I want the truth you cant handle the truth. Wow, you can say that again because a wellknown Market Strategist says two recent ipos are beginning to look scarily similar to go pro and shake shack before they plun nled to new lows. Well equivalance you the names. Im the king of the world and it sure sounds like amazon is vying for that king of the world title with is plans for a cut throat music streaming service. What that could mean for apple and pandora ahead on fast. Welcome back to fast money. Time to hit our chart of the day, today, were look k at the reversal in oil. Crude lower. Higher by more than 1 on speculation iran could support an opec production freeze. This morning, we got a note from Goldman Sachs saying production freezes dont matter, so this is ironic to see this reaction to that headline. Opecs scrambling. 50 oil, amazing how were acknowledging its 50 oil now. This is not what people were saying a couple of monlts ago. This is the good news though is is that its unsustainable for people to have 50 oil. Therefore, more production is is coming offline because it has to and it will or because ultimately, youre going to get to a place where opec has to control. Why do you think im perplex perplexed at the moves as well. Why do you think when you see rigs coming on and rigs still out there, i dont know if anyones cutting back. By the way, the freeze. Theyre pumping everything they can. They want to freeze. It changed while we were on hiatus with the new Saudi Oil Minister talking about this. Thats what the market picked up on. His plan was basically the driver of the ten get that market share and what happened is saudi arabia on the stocks, this new guy has changed sentiment of the market. Zpl i think at 50 bucks priced d in. Thats what weve been saying for a long time. For it to get 50, its going to be a cut. 45, 50 going to be the range. Still ahead, mylan turns out the epi pen isnt the only product theyve raised their prices on. Youre here to buy a car. What would your Business NeedsBetter Technology to drive better performance. So you need it to be reliable and fast. Really fast. Introducing the comcast business Summer Savings event. Fast Internet Speed to drive performance, plus cutting edge wifi for your employees and customers, and voice mobility so your calls find you wherever you are. Get some of our most advanced products at a great price with over 500 in savings. Call today and ask how to get these savings plus a 250 prepaid card. Comcast business. Built for business. Welcome back. Stocks ending slightly higher. Nasdaq did set a new record for coming off those levels. Heres whats coming up the second half of fast. Mylen is under pressure and its not the only drug seeing a much higher price tag, plus, amazon could be launching a stand alone Music Service to take on spotify and apple, but theres one big difference. Well have the details later on, but first, we start off with the ipo market ramping up in one sector. Bob pisani has the story. Zpl hello, melissa. Its been a year of few ipos, but big returns. Only 59 this year. The average retur