He sees happening next. How is your neck feeling if you felt whiplash today you are not alone, it was indeed a katy perry market. Hot and cold the dow traded in a 1,000 point change heres how this turn around tuesday went down of the we began with nerves high the dow dropped 500 at the open. Boom buyers stepped in. And we shot up 400 points at the blink of an eye. Then volatility and negativity again. And then it went to the bulls. The dow closed up over 500 points guy adami. Welcome again. Im here all week is it safe to go back into the market obviously some people thought so today. It was in many way as more volatile market today than yesterday. I agree with that so in that question what you are implying is volatility over now have we seen the last of volatility i would answer i think we are seeing the beginning of volatility but is it safe to get back into individual stocks . Yes. We talked about home depot and micron yesterday they raised guidance and that stock was up 10 i think have tilt here for a long time. The mark were in turmoil yesterday, and again today other than the fact that we have closed up near 600 points. Now you can see the winners from the losers what is troubling is i think traders and investors want to put it in a neat backs and say this was spurred on my higher realized volume timt on friday selling as risks heightened selling more getting essentially back the neutral. This is part of what we had. We can blame it on the xiv the voletf i hear you. I mean its the velocity of what we were watching when we were talk about the rates thats upside. You have got to figure algorithms, the margin calls that were happening on friday and i think as well yesterday. Maybe we flushed some of that out. I wonder if we have hit a level in the volatility index in the 30s where we go somewhere from the 30s back towards the 20s i think we may find ourselves in that kind of a rain. The reason i say that, later in the day we saw monstrous put buying. Lets be clear. The medias has a bias to the upside we like of ther whitd when numbers are up not down. You ten to worry less. Heres the point i feel like if it would have ended down 600 there would have been more concern. I didnt like the Market Action even though we ended higher it felt like we were literally all over the map and there was a lot of conflicting programs going on today. I mean heres the thing as a trader when you see a three day move like we had into the morning you are covering shorts if you have shorts and you are looking to deploy some capital if you had actually been smart enough to take some profits into this sort of event so to me, we have been saying this now for weeks and weeks even the most bullish guys on the desk the level of complacency was getting nerveracking and the fact that the market in january only went up jim cramer had ceos calling him all last month saying why is my stock going up like this i got it last year why is it going up this year when you see buying ratios where they were out of, what, selling not buying, insiders we had to shake out people with weak hands its fomo situation. When you ask about volatility. It is a healthy thing. The healthiest thing, if you were a long term bull for the aboutance of this year is the see some shake out and get is this the pause that refreshes . Something the market can now build upon. Everything seemed to be moving together in the equity market you mentioned home depot and micron that preannounced last night. We might see dispersion. We might see people Rewarding Companies that are doing well and people piling into those stocks a la amazon did you see how google underperformed facebook and amazon today facebook and amazon had good numbers and google didnt. Heres a better question. Was what we saw friday and particularly yesterday and maybe this morning was it a shortterm thing caused by this implosion of this obscure short volatility instrument that was forcing liquidation and selling. No. Or was this a sign of things. Was it a one off or is this going the happen again again. I dont think you can put it in a neat box. The question is did we have a catalyst which was this vol fund. We definitely did. Yes, except for the markets were so overbought on the 26th of january we had to get to a place where you got some sanity back in terms of as good as boeing has been, should they be trade at a 23 multiple they traded in the mid 20s at best even though the s p at a four multiple at 16, 16. 5 right now looks interested. You saw put buying in the volatility index but in the twebts. If we were to at the 20 strike itself they werent touching that before well, its almost twice the normal volatility weve seen over the last couple of years. Even if it were to trade there, thats heightened volatility my point is thats the environment people there are some people smart paper in the options more than what side i will give you an example. They were buying the 35 strike calls in february about a week or two ago those slightly paid off because roll tilt index hit 50 today. And they were probably free two week ago. Almost nothing. You are right. Yeah. Because you are talking about the volatility index is trading at 14, 15, or Something Like that and suddenly how about that trader in hon done that bought march 24 calls on the vix at 49 cents each a month ago. Thats good pay date. Last tuesday we were on closing bell. We were talking about in the spiders. They were rolling down and they were taking off huge profits, brian, but they were rolling down even further, going 20 points lower to buy even more not all the money that they made on the trade but they still wanted to be in the trade on the spieder. Hold on, we have breaking news right here. Hear that . Thats a cramer alert. He is still chewy from the super bowl mad moneys jim cramer you heard our comment there there is almost more turmoil today overall. What do you make of todays moves . I think we got oversold i watch the s pst proprietary oscillate. Its remarkable of the it only happened five other times in the last three years i have been listening to you guys look, the if you know problems with the market had to to with mechanics. The fundamental problems with the companies had to do with valuation. Both seemed to be cured for a little bit but i have got to tell you, we are helped tonight by good numbers. I think we have made people realize the market can go down as we rally i think we will lose people, not gain people. You know, jim, said something on twitter yesterday i think its been so chaotic the last hours and days really where you said the market needs help, call the s. E. C. , thing are broken we took the xiv and flushed it looks like its for the most part gone. Do you worry there is more tough stuff like that out there . Playing the volatility trade as if a volatility is some sort of asset class maybe that there are still some others out there. That whole concept has to go out the window what i say to you, in the Money Management business, what kind of clown gives their money to someone who takes advantage of that ridiculous piece of paper that got wiped out today i have got to put that in quotes who gives their money to these people honestly, guys, i mean, these guys are such buffoons, how do they raise capital they open up a new fun its about the fang fund like we are fang yeah, i mean, jim, hey, its tim. I think this comes from the excessive market where volatility was so suppressed right. But team got so used to the Central Bank Put that selling nickels in front of a steam roller worked for long time until it didnt. I independent confuse it shameless. The creation of these products is what i was talking about. The s. E. C. Started blessing this stuff. They blessed it incorrectly. The theory was that the stock market is deep enough to handle any of this. We know thats not true, but the s. E. C. Hates to admit it made mistakes so it creates this double and triple kind of nonsense we are seeing today we understand that this stuff is bad, we understand that this stuff is reckless. But there are a lot of hedge funds that they just cant avoid it they should just go to the track. Thats how valuable their thoughts are. Jim, it has been five years since you coined the term fang for the fang stocks not for fang energy, which is another fang you might like what do you think about the fang stocks now, five years later i have to admit, that i had some help from my friend bop lang on coining the term i use the term help leadership liberally. Amazon is up, facebook is up, net application is up. Alphabet is only up 183 of course thats a 534 urn are. Nasdaq is up 124 . S p is up 78 . That makes alphabet look okay. Fang works thats because these companies have unbelievable growth they are defying the law of large numbers. These are multiple 100 billion companies. I think amazon is going to raise itself to 17 jim, jim, jim, jim yeah, yeah. You were a hedge fund manager. You went to law school, goldman sachs, best selling author you. Sound like my mom. I know im going to get in trouble with this. But compared to the eagles victory, how can you put contextualize for the people at home what that meant to you on sunday. I cried like a baby i weeped i mean, i had to it was the greatest thing that ever happened. I said to myself, maybe i dont even have to do anything more on this earth its with me im going back and they call me coach some of the players called me coach. I dressed the team at the anyoning of the year it was in july i said listen, guys. We got in a huddle, and i said you must promise underpromise and overdeliver. The whole season you have to underpromise and overdeliver and i said you will go to the super bowl and win the super bowl if they do it what did they do in the playoffs they underpromised and they were the underdog in the game against the falcons. They underpromised against the vikings, underperformance against the pats this is the greatest upod performance i have ever seen you have one more thing which is going to 1 trillion in market cap first apple or amazon. Amazon. Yeah, its amazon is just a coiled spring. By the way, it picked up a lot of bears in the last 48 hours. What do they know . Hey, did you see the trucks downtown today i mean all they said to me thats when you see the satellite trucks, from the local news what they said to me was buy amazon yeah. Yeah. Buy amazon by the way we are so oversold on the the s p oscillator, four other times we bounced 10 i think this one can last a little when you saw it at 3 47 a. M. When we had the spike in the futures. When you go back to sleep or in my case have the trainer beat the heck out of me for two hours. Mark will steen, he was a giant fan when he lived in livingston. All i can tell you is that this market is as phony as baloney. Oscar mar you get me. You know whats real . The eagles victory and i dont think you are going the take off that green tie for 60 days and you havent slepd for 60 hours. I havent slept because unless i can dream of the eagles it is a long time to not think about having won the lombardi trophy as carson wentz said, get used to this. Carson who . Eagles, eagles. Jim, we will see you tonight. Fly eagles, fly. We didnt even practice that. Case keenan what is going to happen to foals, starting for the dprouns mex year jim has an historic day, anniversary of the fang stocks tonight at 6 00 eastern. Lets go around the horn what did you buy goldman sachs. The best stock that has been punished too much. Its too cheap and volatility is what they have needed to be a Better Company than morgan stanley. I bought ember air. Likes brazil. Hates america. On the open i watt a semiconductor etf. Chicago mercken to be when things trade, cme works we are not going anywhere we are on deck we are all over the afterhours action remember that, disney, gilead, snap up 20 right now. Chipotle all reporting their earnings those Conference Calls underway. We will bring you the latest numbers and the latest comments on those stocks. It may be a ticking tom bo the man who has been warning us about it for months is here to explain what going on. Bitcoin the crypto commodity crashing below 7,000 bk says there is one thing you need to know about the selloff, which may be close to being over he will explain a. Lot more to do you are watching fast money, stick warned around. Unmanned aerial systems, were attracting the worlds best talent to Central New York. And turning the airport into a firstclass transportation hub. All while growing urban areas into vibrant places to live and work. Across new york state, were building the new new york. To grow your business with us in new york state, visit esd. Ny. Gov. To grow your business with us in new york state, directv has been rated 1 in Customer Satisfaction over cable for 17 years running. But some people still like cable. Just like some people like banging their head on a low ceiling. Drinking spoiled milk. Camping in poison ivy. Getting a papercut. And having their arm trapped in a vending machine. But for everyone else, theres directv. For 1 rated Customer Satisfaction over cable, switch to directv and get a 200 reward card. Call 1. 800. Directv we have an earnings alert on gilead the q and a on gileads call going on right now the ceo talking with analysts. One thing people are trying to get a hold of is the future of its hepatitis c franchise. The stock went down afterhours. Potentially under 2018 forecast. Big questionfor gilead of course is how are they going to return to growth and a lot of that could potentially come from m and a. Gilead says its going the repatriate 28 billion in crash this year. A big question people have is what are they potentially going to by. Gilead and gel gene have been the most aggressive management teams talking about m and a this year and celgene just did two big deals. Gale yad was asked about the technologies he wanted to bring in jeeb editing companies, he highlighted four companies, all between 1. 4 and 2 billion in market cap they named blue bird by yoes and Spark Therapeutics both in one time gene therapy treatments intercept. They are in liver diseases and biomarin a Bigger Company in liver disease. These are all names that gilead is potentially looking at. We will let you get back on the phone. Lets trade it pete najarian. We knew what was going on this, hepatitis c was going down we know hiv is strong. International growth is something they can lean on cash is king right now they have got it 41 billion. The kite acquisition is just one. I think we are going to see more. I think they missed on the hgb. Still ahead, everybody owns them, everybody seems to love them do you know whats inside the etfs you own item item tim seymour is going to break down everything you need to know you are watching cnbc birs in business worldwide heres what else is coming up. Mom dad. Its evil. Dont touch night thats what a number of investors are say being leveraged etfs and you would be surprised whats lurking in your portfolio. Ill explain. Plus w bitcoin crashing, what are some of the biggest crypto ballers doing at a Bitcoin Conference holding their you know what off in cancun. And we are live on the ground to hear why original crypto baller brian kelly isnt worried. When fast money returns. Chwab . Index investing for that low . Thats three times less than fidelity. And four times less than vanguard. Whats next, no minimums . No minimums. Schwab has lowered the cost of investing again. Introducing the lowest cost index funds in the industry with no minimums. I bet theyre calling about the schwab news. Schwab. A modern approach to wealth management. I thyou never got the brakes looked at . L. Oh yeah. No. At cognizant, were helping todays leading manufacturers make things that think and do automatically. Imagine that, a world of new Digital Products and services all working together for you. Can i borrow the car when its back . Get ready, because were helping leading companies see it and see it throughwith digital. Welcome back to fast money. Judgment day for volatility may be upon us maybe it already because the fear index spiking sending an obscure but popular Investment Vehicle crashing, all but wiped occupy we are talking about the inverse xiv Exchange Traded note it was a bet on lower volatility which collapsed last night after the vix went crazy lets go to the New York Stock Exchange and bob pisani. Traders who traded this needed an iv. Exchange traded note. It is an debt obligation from a Financial Company like credit swiss or goim. They are tied to an index or a benchmark like the s p 500 or a commodity or a volatility index. Many are leveraged if the index is up 1 you will get 2 others are inverse if the index is up 1 you could lose 1 . Like the product there is a fundamental difference between an etn and an etf. Etn investors dont own anything assets nothing. The etn is backed by the credit worthiness of the credit issuer. The etn world is small as compared to efts. Many cuff assets classes that were not able to be held in efts etns are the s. E. C. And the sfpc repeat lead warned about leif rans and inverse products, many of which are etns the efts community is also concerned. They tried to get ahead of the problem with this statement here inverse and leverage Exchange Traded products are not efts they dont perform like efts thats why black raak strongly supports a regulatory classification system that would leverage an inverse etp, inverse traded products differently than plain vanilla efts in order to clarify for regulators and investors the risks associated with those products. The bottom line is the eft community has been taking in oceans of money for plain vanilla efts and they dont want any kind of other aspects of this business to get in the way of those oceans of money thats coming in. They can try that but you have got acronyms out there. And if you are a Retail Investors its easy to say thats one thing and thats another. You do got lumped in babb pisani. Appreciate that. Guys lets trade this you can come out like black rock and say efts arent etn or etps, whatever it is a wake up call to investors. Be careful. Everyone should take accountability over what they buy. If something is called an etn, you should find out why it is not an eft i know that sounds obvious there is no such thing as free lunch. It means at some point you are paying for the leverage. You dont hold a lowle vol eft prefr. This was a 1. 1 billion product. Thats not a lot of money on wall street. We look at if it didnt do all the damage it contributed to a lot of of the damage, right . This is one thing that did all of that. It has a 171 page prospectus according to leslie picker an