the sidelines ahead of that unemployment report. what are you doing now? it sounds like you're changing your position. >> basically, all this week -- yesterday i was very, very surprised by the trading activity in the marketplace. today i approached the market with these elements of the energy names, the energy equity names. i was selling those. the high beta names i was playing those actually from the long side and also the financials. we'll get into the financials a little bit more. why i was playing them from the long side. we're talking about on the half money show, but at the end of the day tonight, i am basically in terms of my positions flat approaches friday. >> last time on full money. >> after that gdp number came out, guys were getting long going to the unemployment number. feels like the whisper's out that the number will be in line or slightly better. >> i don't think anyone knows the number or price. i just don't believe they have that data. >> well, i don't believe in aliens. i don't believe in aliens, but i believe people know that number. >> you do? >> so, you don't get the flash then? they're not flashing you that trade, karen. just checking. >> all right.

>> let's talk about those financials, because they also -- like pete was saying, it's a good sign that the commodities didn't pull back after the strong run yesterday. the financials moved the slight move higher, of course, holding onto the levels is very key, especially talking about a leadership group like the xlf. >> well, financials did do well today, but i think one of the reasons they did well was the commercial real estate sector today was on fire. part of what's been hanging over a little bit of the financials is here's a big commercial real estate losses to come. if those aren't going to be as severe as people think, then you know, you've got some pretty big real estate portfolios out there that would -- and bank of america, for example. a big port foal joe. >> i was going to say, who are some of the biggest asset managers out there now? and it's bank of america, wells fargo. talk about exposure right now on the real estate market. those are some of the names outperforming right now. that's why i think you're seeing those move up while goldman sachs is lagging back a little bit after the big move made after -- >> my guys are looking at bank of america. i said it last night, over xlf

now. >> absolutely. >> a true barometer of the market these days. bank of america. watch that and you'll see the market. >> it's the entire financial space. bank of america yesterday digested all that bearish news and moved slightly higher. i slightly disagree on goldman sachs. it's hanging in there well. >> oh, yeah. >> right now, when the capital markets look like they're healing, that benefits names like morgan stanley, goldman sachs, because they are the winners in the consolidation space in terms of trading revenue. the entire financial space right now is on fire. jpmorgan above 40, morgan stanley above 30. and look at pending home sales, which we'll get into today. that basically tells you that residential housing has found a bottom, and who holds those loans? the names like bank of america, the names like jpmorgan. that's why -- >> you pointed that out on the halftime report, regional banks have great exposure in their portfolios to these types of loans. but karen, if the financials are able to move higher on the belief that perhaps the commercial real estate isn't as bad as it had been expected, you were one short iyr, which is the

etf that tracks the reits. what's your position now? >> well, way less bearish. we talked about how a lot of the reits were able to issue equity. it absolutely seemed like an endless appetite for equity, and anyone who was able to get a deal done, that was it for us. we had forrest city is one we had been short for a long time. they had an offering a month or two ago. we were able to cover on that. i just can't be short when they're able to raise so much money. >> right. let's move on to the next trade, talking the tape today, caterpillar closing up 6%. it reiterated its earnings outlook, the biggest gainer in the dow today. also said it was not sure about the timing of the economic recovery, and yet, still able to make this monster move here. is this too much? are we being too optimistic? >> it probably feels like a little much. after earning, the stocks shot up, now facing $48. maybe it's not too far in front of it self, because if it can reach the upper end of the 2009

projection and if they really are $8 to $10 out five years, this stock is probably a little cheap right now. the options markets, we talked about it, "fast money halftime," and that continued throughout the day. the stock finished on its highs. september, 50 calls, they bought over 28,000 of these on the day. people expecting more up side. then you look at something like joy global, bucyrus. where did we see some of the big profits being made by caterpillar? it was in the mining industry, not farming it was in mining. those two big miners took off. >> pete was all over this on the halftime show. i got it right this time. jim owens, the ceo, he exuded confidence today on that call, and the reason why goes back to yesterday's ism number and the numbers out of china the night number. the ism number dropped back in december at 32.9. it is approaching 50 again. and on that move from the trough to 50, 50 being the contraction level, that's where the names like caterpillar, like joy global, bucyrus, they are going to do well and they are. >> mutual funds are still

bullish on cat, just by what pete said. they're looking forward. if you look at now, everything's overvalued, right? so they're looking out, looking at forecast, and still think it's a guy. >> say you're on the sidelines and you watch cat move 6% on a session like today. at whaint do you say it's time to commit fresh capital here? >> you probably use the options, because right now, you'd be chasing like everybody else in the world. but if you're using the options, you can limit your exposure, you can put on call spreads. people that don't understand it, look into it educate yourself. that's why we're trading nearly 15 million contracts a day. that number goes up every single year by a couple million contracts because more and more folks are getting educated, they're getting to find out exactly how to use the leverage, not complete speculation, but leverage to be able to trade the right way with the options. >> and six weeks ago, melissa, pete, you said this on the desk -- the reason why the market can move higher right now is because the options are so cheap. so, you could buy the insurance. you could get in the game and stay in the game because volatility has come. >> yesterday we were talking about that. look at the 2-1 puts to calls,

and why? everybody was putting the puts up closer to the 1,000 level on the s&p 500 right now. they want that protection because they believe, but they're not 100% in the believement that there's not going to be a pullback. >> let's move on to the next trade. look at this chart of the day. we saw a jump in pending home sales, sending homebuilders to a new 2009 high. we had horn out with earnings trading lower by 2% most of the session and then also managed to turn around. this group is on fire on the fifth straight month of gains in terms of home sales. is the bottom in? >> i think the bottom is in. >> really? >> i've said it before, i think the centex merger was a watershed event. you had two guys with strong balance sheets coming together. they didn't know exactly when it would bottom, but we've been seeing now not just one piece of data. we've been seeing several months of positive data coming in. so, i am long centex. i actually think the bottom -- >> i think she's on to something here. my hedge funds feel the same

way. the permanent bears are always going to be bears. these guys feel that the bottom is in, we're starting to firm up. mutual funds have been there, obviously, because they're not short, but the hedge funds are starting to see -- >> the hedge fundz guys, were they short these names at some point? >> definitely. the last couple days, when the gdp number came out, it clicked off. they were shorting it every morning trying to break the market's back. they couldn't break it -- >> part of the short-covering rally? >> i don't think it's all short covering rally because the mutual funds are forced to get in. remember, the 1,000 level in the s&ps forced the retail guy to get back in, pressures the mutual fund guys. that's why we're going higher. >> let's go back fundamentally to the housing story. the bearish argument has been that the bottom is not yet in place. june's numbers -- this is a great tell, why? because in june, what were mortgage rates doing? mortgage rates were actually rising. so, these numbers are actually up in the face of rising mortgage rates, which we would have never thought would have happened in this environment. >> these housing stocks scare the devil out of me. if you want to play the housing

stocks, drill down further, go to masco, go to the special chemicals. they will react and they have a much more violent move to the up side than the housing stock. this is a long ways from over for these guys. my opinion. >> is it just that david uses a trading vehicle for so long, pete? >> yeah, yeah, absolutely. and a lot of times when looking at the housing numbers, you look at the shorts and what the shorts are in these stocks. that's pushing these higher. you look at other names -- look at what dow did since their earnings, look at what dow did today. look at specialty chemical. that's what's moving up. >> the trade on this is to own the banks that actually own the residential loans on all these houses. those balance sheets are improving. >> money's coming in. is that shifting away from the trading vehicle that they once were? >> absolutely. when it was 8.70, they were waiting for 8.50 and 8.25, almost like it was a done deal, like we were getting there. i've seen the sentiment change. these guys are putting new money to work. >> next trade here. profit-trading in the space. breaking a three-day winning

streak. joe, what went on? >> i'll tell you what. energy, right now you have to look at this dynamic. they put out a report showing open interest, and that's basically speculators holding how many contracts? if you look year on year versus last year, the number's down 15%. this year, 73.38, that's the high june 30th. right now in terms of open interest, we are down 40% speculative longs from that level. so, what happened last week? last week, when we rolled over, went back down towards $60, everyone got short. right now, this is a chase to get back in. right now we're moving towards $73.38. we're going to challenge that level again because no one has it right now in terms of being long. everyone's now chasing and trying to grab longs to get back in the energy trade. >> what are you doing with your names in this space? >> we're hanging onto our names. i really like this space, but when they do move up like this, you have to take a little tick. so we had to take a little off the table, but we are absolutely long energy overall. we are short the uso, but only

as a hedge, not because of any directional bet on oil. i still like the energy space, but as joe knows, it's a volatile one. >> staying long in the energy space. they feel the oil services are a little overpriced here, topee, but as a whole, they're staying long the energy space and shorting the solar space because they don't think the alternatives are quite there yet. >> and coal names, i hate to beat that whole thing, but tech resources had huge activity about two weeks ago, we talked about it august 20, 22 calls. the stock went from $18 to $27. what'd they buy yesterday? 29 strike calls. they continue to want more upside calls. they continue to think the coal stocks are pausing and then moving to the up side. keep an eye on the coal names as well. >> everyone wants to be long energy, but right now it's so volatile and they're chasing that fast money. and the number of support that those that were long actually got stomped out and moved to the sidelines last week. and this week as energy came back, they were not long. so the chase is on. i don't believe people were

positioned properly for the rally. >> that's why you have to do positioning. look at freeport mcmoran. last week, dennis gartman, july 29th. the stock dropped $5 from the multimonth high in copper. you see it drop $5, gets to $55, around $55.50 it closed that day. the at-the-money call -- excuse me, puts, august 55 puts trade and you buy those, hold onto the stock. that's what we talked about, don't get flushed out of the stock. you get a $10 run on the stock, you lose $2 on the put, that's an $8 profit. it allows you to stay in this trade if you believe copper. and if you believe in the housing, you've got to love copper. give me a giddyap! >> although today we saw copper pull back from the ten-month high. >> a little, pennies! this was trading under $2. when it got over $2, we all started putting a parade out. now that this is running, we've got to keep an eye on it. i think freeport is still very, very cheap at these levels. you can't chase it. if you do, you'd better buy puts.

>> another sector seeing profit-taking, red hot tech stocks, apple and amazon losing steam as the nasdaq crossed the 2,000 mark yesterday. i was in springfield, missouri, but the bells were ringing on that crossing of 2,000. >> i'll tell you what, and really, when it comes to numbers, he's got it pegged. he said ibm $120. the high has been $120. it cannot get above $120. it has stalled out there. there is significant resistance. he's totally on. it tech is slowing down when you look at it. the only thing that worked today was r.i.m., on the back of the goldman sachs report yesterday talking about the smartphone trade. what sold off on that was palm. palm has been down the last couple days, because as r.i.m. and apple gain market share in the smartphone trade, obviously, motorola and palm are going to lose it. >> i think tech has paused. i'm not sure it's slowed down. this is a pause. apple still trading $165. cisco, $18 to $22.50, holding

right in front of their earnings. i think technology right now just pausing before the next leg up. intel after earnings is still above $19. incredible run. they kicked off technology. technology still works. >> microsoft is well on its way to $30. >> i think microsoft actually has plenty of upside. i own microsoft, i love it, and i'm using the options against it, but i love microsoft. >> i think the pause in technology will be broken one way or another tomorrow with cisco. their guidance is always seen as a bellwether for what the industry can look forward to, at least in the next quarter coming up. that will tell us -- >> one of the stocks that's closest correlated to gdp. people look at john chavers as a directional human being. that's what karen said -- >> he's an indicator in and of himself. >> that's right. i talk to my grandmother through him. >> and it tells me the chamber's going to be bullish, just telling me right now. i don't know. >> maybe he got the number from friday. he got the whisper, karen. >> got the flash. but why would he be anything but conservative? what is the deal here? because he's already seen a

tremendous amount of pop. why would you be bullish? >> ibm, why did they need to raise their numbers? sometimes if you're seeing it -- first of all, your lawyers may tell you, if you are seeing it and you think you will beat it, you have to raise your numbers. >> expectation. >> and he gave the stabilization last time and was looking forward to the next quarter. juniper gave us projection in front of this number. i expect for chambers to be out there as a full bull. how the market interprets that, that's what we'll have to see. >> keep in mind, we will talk more about cisco earnings and how you are positioned for it in the next block of this show. time now for afterhours action. whole foods is climbing in the after-hours session, up by about 13%. it raised its forecast to beat the streets. yeah, yeah, you were short this name. are you still short? >> i'm still long the puts, they're just going to be worth a will the less tomorrow. you know, not fun. >> right. so, how can you manage yourself out of that trade at this point, if at all? >> well, i want to see exactly what they say. you know, i might not be able to manage myself out of the trade.

when you buy the puts, you know exactly what you have at risk for the trade and you've got to make a bet you're comfortable with, and tomorrow that's not going to be fun. >> sometimes they leave a mark. >> absolutely. and economically, this is telling us something. people are coming back to whole paycheck, otherwise known as whole foods and spending money there, as opposed to walmart to the organic section that everybody's been talking about, including myself. one of the reasons you liked walmart, one of the reasons you liked target is because they're getting bigger into the grocery market and organic. and if people are going back to whole foods, that tells you more about the economy. >> they are kind of pricey. >> oh, they're not. >> it's amazing. >> got to pay for quality. >> i can't afford it. next trade here, the stock market continues to climb higher. the greenback continues to get pounder, but could the dollar's dive come back to haunt the equity market? let's head to the pits. rick santelli, aka, the big sur, live at the cme. rick, how are you doing? >> hi, melissa. indeed, this is a hot topic and i'm curious how the gang feels

about it, because if you like commodities and you think things like copper are a good deal, not to mention some of the bounces of perception of a firming housing market, the wild card is the dollar. and with the good news in equity pricing, well, hey, we're going to see higher interest rates and a lower dollar because the flight to safety is reversing, and that's not even including all the issues that affect the dollar and interest rates due to deficits, and of course, the new issuance market. so, this is going to be a conundrum for the stock market. and finally, i get to ship off that word conundrum from the fixed income markets from '03 on to greenspan, now it's back to the stock side. >> rick, i totally agree on the dollar. do you see the dollar becoming a funding currency in the carry trade? >> oh, absolutely. and not to mention that as, you know, we had the most beautiful bomb shelter. when all of the credit crisis was hitting, everybody wanted to come into our shelter. now we have sunny skies and they're leaving, but they're taking their food and their water with them.

what we're left with is a european market where the corporate bond market is going crazy. they're close to record issuance this year. they're starting to move into their backyards. dollar sponsorship may have a short life. >> hey, rick, it's steve. it was a thought that we got into this first and the other countries basically followed. so, we would be the ones to pull out sooner than them. is there a thought in your world that they could help us pull out instead, if you reverse it? >> well, i think that, yes, from a growth engine standpoint, i think we're totally intertwined in this, whether it's europe, china, or the u.s. but not so much from the credit aspects of this, because i really do think that our issuance and our reverse currency status give us a very interesting combination that is unique, and it really plays to friday's employment report, and tomorrow's kind of employment report eve eve in the form of adp. because listen, viewers, there's all kinds of wild card trades here. the inverse relationship with stocks and the dollar and interest rates gives you a very

unique way to trade commodities and play a weak or strong employment report friday. >> absolutely. guys, what's the trade here? i mean, if you see a weak times ahead for the u.s. dollar, that would theoretically be good for those multinationals who said in their latest earnings report that that was an impact as to why they perhaps missed on revenues. yum! brands jumps out at me. >> yum, exactly. i'd like to have that kind of exposure. even walmart has exposure, more than half of their income comes from outside the u.s. there are ways to play it that you don't have to be so -- >> and the bulk of technology names, most of them are way over 50% in terms of outside of the u.s. you've got to like the technology, even more if you believe in that. >> and you could use the currency tied to the australian dollar, why? because it's the complete opposite of the u.s. dollar, and when you look at their fiscal and monetary policy, they will be the first to tighten. that will be bullish for their currency. >> okay. rick, if you're out there, thanks so much for joining us. the big sur out from chicago.

we do want to bring you some breaking news. the "wall street journal" is reporting that sony will be releasing two new e-readers. one will be priced at $199, which would be in direct competition with the kindle. looking at amazon.com shares, they're slightly lower on this news, but again, this headline just crossing. two new e-readers out. >> nothing beats -- >> from sony. >> nothing beats the kindle. >> not yet. >> i think somebody else -- >> somebody said that about the walkman once upon a time, i'm sure. >> you don't even know what a walkman is. you're 24 years old. >> i wish. that was the "word on the street." coming up, tech trades, aftermarket actions, the trade after cisco earnings and what to do with yahoo! now that that deal is done. it's the hottest sector this year, but will the company that gives the internet its backbone keep tech standing tall when it reports tomorrow? and what's the frequency, kenneth? will a washington crackdown on

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welcome back to "fast money," live at the nasdaq

market site. we want to bring you up to date on afterhours action in electronic arts, higher up 3%, posting a smaller than expected loss. revenue beat the street. it is off the highs in the session based on commentary out from the ceo on the conference kale that's apparently going on right now. he is saying that the industry is weaker than originally expected, although we have heard various datapoints out of this video game industry that sales were sort of weak and that we're seeing some sort of a pullback during this recession in sales of these things. >> sure they didn't mean whole foods sales were weak? okay, checking. >> apparently, people are like joe, buying $29 bottle of honey at whole foods. >> electronic arts first half of this year is going to be soft. if you're buying electronic arts, you're buying it for the second-half story of this year. they generally don't give guidance. i don't know if they did on the call, but the trade about them is all about the second half of the year. that's when the strength usually is. >> and the stock's been grinding, grinding near $20 for about the last 3 1/2 months. so, the fact that -- if it can break this trend and get to the up side, there's plenty more

room. >> tiger woods, pga. >> time to take your position on cisco systems. tech rally hangs in the balance as this all-important bellwether releases its earnings. market will be hanging on every word from ceo john chambers. with the setup is mark mckechnie. mark, great to have you with us. all the traders on this desk believe john chambers is going to be pretty optimistic tomorrow. i am of the camp that he will be conservative. where do you fall? >> i kind of agree more with the group there. >> yeah, okay. >> hate to say it. but you know, he typically -- you take some of his cues from the stock market, you know, as a good predictor of the longer-term outlook, and our sense is that he's going to talk about, you know, business stabilizing globally with some signs of a recovery in the u.s., you know, following five or six quarters of down ticks. >> at the same time, isn't this fairly priced into the stock? i mean, cisco's gotten a couple of upgrades. oppenheimer in the recent weeks.

the stock's had quite a run. aren't we expecting the positive comments from chambers already? and so therefore, what would the move be if he actually fulfills expectations? >> yeah, that's a tough read. we're towards the end of earnings season and we've heard from a lot of folks, you know, their supply chain sounds better. i think -- my sense is you can hold the stock into the quarter as well, just because there's always uncertainty for how the numbers turn out. and if they'd come through with decent colors, the stock should react right. >> hey, mark, is your expectation about some of the cost-cutting measures -- they're talking about $1 billion worth of cost-cutting that they're able to do throughout the year. do you think that number's actually attainable? >> i do. cisco can contain that pretty easily. and they've got all the reasons in the world to be able to back down on their expenses, you know, given the downturn behind them. >> all right, mark, one last question, in tomorrow's session, would you recommend investors have fresh cash in the sidelines, buy cisco ahead of the earnings? >> we're not pounding the tape on it, but i can you can hear it to it. they'll participate on a

recovery, but it's not our favorite name here. >> mark, thanks so much. mark mckechnie from broadpoint research. >> they have $30 billion of cash. so let's hope tomorrow they talk about what they're going to do with that. are they going to stay in competition with ibm, with hewlett-packard? they're moving into the server space. let's see what they talk about tomorrow and see what the tragedy is. >> okay, time for the "fast money poll of the day," and tonight's question is, with the nasdaq above 2,000 for the first time since october, will it hold that level after bellwether cisco reports earnings? a, yes. b, no. >> wow, what a complicated question. >> it's very, very complicated. if you can't figure this one out, you probably shouldn't be voting at all. logon to cnbc.fastmoney.com and tell us what you think about cisco systems. in time to "analyze this," the high-frequency trade debate heating up as senator chuck schumer says the ban on short trading is imminent. he says he was assured by mary schapiro. what would the ban mean for the markets and the exchanges that may face lighter volumes? joining us on the "fast line,"

sandler o'neill principal rich opeto. rich, great to have you with us. break it down for us in terms of the impact here, in terms of which changes might see a benefit, which might be at a disadvantage. >> well, melissa, actually, none of the exchanges went along willingly. the nasdaq did start executing flash orders in june, but they remain weren't -- they did it sort of unknowingly, just because they were losing market share and trades to a platform called direct edge. the new york stock exchange never did it, and they stood against it, really had nothing to lose. >> rich, to be clear, flash traiding is a subset of high-frequency trading, which is a bigger market. is there concern that they might do something on the bigger market in terms of high-frequency trading? >> i think there's always regulatory risk, especially these days, but i think people really need to distinguish

between high-frequency trading and this practice of flash orders, because flash orders, you know, at least from my perspective, you know, was unfair to the average investor, but that's a lot different than the high-frequency trading we see in general in the market. >> rich, it's joe. i want to take you in a different direction. let's talk about the u.s. derivative exchanges, specifically, i.c.e. and the cme. they are both under significant pressure right now, selling off. am i wrong right now? because i want to step in and buy these. i see going forward, they are the beneficiaries of cap and trade, they are the beneficiaries of clearing of credit default swaps. what right now is driving these stocks lower? >> you're exactly right, joe. i believe they're the beneficiaries as well of those issues. right now there's a lot of regulatory risk. those who oversee the futures exchanges is holding hearings, and they may establish some position limits for energy trading. >> okay, i think --

>> i think we just established some -- >> no, i think -- rich, thank you very much for your time, if you're out there. we apparently lost him. that connection was shaky throughout the interview, but it was good to have him with us. coming up next, if you think this bull market is here to stay, you'd better take a closer look at the charts. and why the stocks at the bottom of your screen made our list of "pops and drops" today. has the fastest hands boxing has ever seen. so i've come to this ring to see who's faster... on the internet. i'll be using the 3g at&t laptopconnect card. he won't. so i can browse the web faster, email business plans faster. all on the go. i'm bill kurtis and i'm faster than floyd mayweather. (announcer) switch to the nation's fastest 3g network and get the at&t laptopconnect card for free.

welcome back to "fast money." here's what we've got coming up for you in the second half of the program. a show that made its name on the speed of its trades is slowing things down little bit. what stock joe thinks is a buy if you're looking for some slow and steady money. and there are green shoots and then there are green overshoots, stocks that have climbed too far too fast in this latest rally. we'll tell you who might be setting up for a fall, straight ahead. first, the s&p's move above 1,000, the nasdaq's above 2,000. with all these round numbers being reached, it's time for a little reality check with the chart. time for chartology. carter is here with your forecast. carter, the question is, what have the past bear markets formed and when have we seen a bottom? can we look at those for today? >> we can. that's the point of history.

let's compare past markets to the current. one, the smoothing mechanism, the 150-day moving average goes flat and then torque high in a big way. that's '74 and '75. look at the flattening mechanism in '82. look at 2002, 2003. it's the same thing again. now i want you to look at the current bearish-to-bullish reversal. we've only just now gone flat. the issue is, in order to qualify as an official new bull market, the smoothing mechanism must have an upward and immediate torque to it. so, the lows are in, everyone knows that the bear market is over. in order to constitute or qualify as a real bull, you need to be sharply rising in terms of this moving average, and it's happened every time. if you look back in the '20s, the same phenomenon. so, we're in the transition phase, and our thesis is we'll end up the year about where we are now, that we're not going to have a lot of fall-through as the muddling process unfolds.

>> carter, it's karen. >> hi. >> so, you think we'll end up flat by the end of the year or do you think we'll have big swings that will leave us flat at the end of the year? >> i think basically we'll be right here, sort of high 9s, 1,000, that we don't get some massive rally into the fall. and it's the deadline right here. >> flat on the year is 903 -- >> flat from where we are. >> where the year started. >> so, carter, my client's thinking we could shoot -- where do you think we could shoot before we wind up right around here? 1,050? >> 1,150 or 1,200. you've seen major firms raise their targets. that's the consensus, about 1,150. >> that's perfect. what does the weekend weather feel like where you are? >> that's what it feels like. nice to talk you. >> carter, got to get a trade out of you. you're looking at metlife here? >> take a look. it's the same phenomenon. look at a chart. here it is, same phenomenon. stocks, currencies, indexes, they bottom the same way.

metlife, a bearish to bullish reversal. we like it on the long side. buy it. >> carter, thanks for playing along. we appreciate it. >> looks good in a suit. >> yeah. got a lot of torque. time now for today "pops and drops." mo r.i.m., research in motion was up. >> it was all about the technicals today. yesterday, research in motion, great note out of goldman sachs, highlighting how the smartphone market share was coming their way. today, technically, they got above $77. volume came in, surged to the up side. take a look at r.i.m. you want to be long. >> rogers daniels midland down. pete? >> the problem for these guys is every major business was down. when you've got that and prices are down 24%, that's going to add up to a bad thing, and then also the input costs going higher. adm's probably, after this drop, probably a buy at this point. >> commercial real estate, the iyr was almost up 5% today, karen? >> i don't know if what it was, because that wasn't particularly

great earnings, but,exceeding trend. >> pop here for human genome sciences grasso? >> i think the yearly low was 45 cents or somewhere around there, so it's hard to say to buy this stock. >> btk was at a high today, all-time high, in fact. pop here for sodium sill cot, much has been paid to the cash for clunkers program, but what happens to the cars once they're cashed in? sodium silicate destroys the engine and its parts. the popularity of the program is causing a surge in the demand for the chemical and suppliers are working around the clock to fill the orders. sodium silicate. who'da thunk? pop for the btk. >> the reason, hgsi, 17% of this index. this is why it is important to understand when you go out, you invest in an index or whether you invest in an etf what the holdings are. >> and it was up 12%.

>> this is a call by dr. j., my brother -- >> maybe using some of these wms products here. >> they're talking about slot machines. sales are up 13%, prices were up as well, earnings are up. everything's going right for them right now. >> about 3%, karen? >> one of my favorite, favorite names. what a fantastic quarter they have had, but i've had to sell into this sadly. great job. >> pop for trw automotive. it was up 15%. steve? >> i think the pop is more to do with car cost savings. i don't like the auto space. i'm going to say sell it. >> and we got a drop here for nicolas cage. the "national treasure" star apparently needs to find some sort of treasure of his own. the "new york daily news" reporting the actor owes the irs more than $6 million in unpaid taxes from 2007. cage has put his louisiana and hollywood homes up for sale to raise the cash and recently sold off his bavarian castle. >> maybe if they lower the marginal rates, people would pay it. i know my accountant right now is going, don't say anything!

>> i think if you have a bavarian castle, you should pay your taxes! >> they rip on these athletes and here are these hollywood types. >> exactly. >> you're a big hollywood type yourself. >> all right. coming up next, they said it couldn't be done, but "fast money" is turning back the dial to find slow money trades that could last you five years. stay tuned.

welcome back to "fast money." we're live at the nasdaq market site in new york city's times square. time to answer some of your fast messages. we've got a message from joe in pasadena, california. joe writes in, "karen, nokia has been trading lower after having its credit rating cut. would you continue to stay in this name or perhaps move out?" what's your answer? >> and what are you wearing? that's the last part of that. >> i still have it. i'm wearing the barrel. keeps it straight. no, it was disappointing, although the credit downgrade i don't think is particularly eventful at all. i like it on valuation basis, but it's the last quarter before i pull the plug. >> this is from caroline in valrico, florida. my apologies for butchering the

name of your town. but she writes, "is bank of america a good buy in the $15 to $16 range?" grasso, what do you say? >> ooh. i own it still. i think the way my clients are looking at it, i think it's still a good buy at this range. i'm seeing new money coming to it. >> okay. moving on here. you've gotten a bunch of "fast money" trades tonight and we've get a lot more coming, but for just this one segment, we're taking the pedal off the metal. take a look. stocks at new highs for 2009 after the fastest july for money in 20 years. can it keep going or is a correction coming? will friday's jobs report knock us down? what about cisco's report tomorrow? and then there's china's weak open tonight. slow it down a second. shut down the high-frequency trading computers. put away the oscillator. let's slow the money down for just a moment and find longs for the long haul. blue chip companies with strong

balance sheets and management adept at keeping profit growing, even when the economy doesn't comply. ♪ with a reputation for an itchy trigger finger, the liquidator's been known to sling trade faster than you can say submit. but this time he's digging in for the long term with an oil trade that can keep the profits flowing, despite volatile oil prices. let's ease off the accelerator for just a moment and give you the "slow money" for the long term. that's like my favorite part of the whole entire tape piece. what's that slow money trade, joe? >> real slow. exxonmobil is the story here. john d. rockefeller, one of the founding fathers, he set forward the strategy for this company, and the strategy going forward works. it's in place. five-year dividend growth rate up around 10%. balance sheet $31 billion worth of cash. they're going to use that going forward. and what do they do? they set a strategy forward that year on year, they're going to give you returns that beat their competition.

year on year. what are they going to do with their stock? they're going to reduce the number of outstanding shares, and when they get involved in a project, an exploratory project, they make sure that it has a high rate of return. now, combine that all with the energy story. the global energy story right now, the emerging world -- everyone, everyone right now from the merging world needs energy. look at chinese auto sales, robust. and if you look going forward, look at the global oil fields. they are antiquated. no one's spending any money right now investing in new production here domestically. i know steve grasso doesn't like the policy out of the obama administration on energy, and i will tell you this, it does not incentivize production. and finally, my friend mr. najarian will love this one -- the investment in bio fuels, $600 million, algae. got to love that one. >> you do got to love that one. i love exxon for the long term, but also, why not sprinkle a bit into bp? a great dividend yield, a great

balance sheet and two for the price of one. the exposure for both are excellent. exxon, premier name, no doubt. there's the cisco, there's a google, they're everything. they're the best there is. go for bp as well. >> i'll tell you why, because i love american and i love american companies. >> amoco, you know, standard oil. >> all right. coming up next, some stocks just can't handle their rallies. we've got the names that overdid it on the up side and may wake up tomorrow with a giant hangover. announcer: some people buy a car based on the deal they get. - others buy the car of their dreams. - ( beeps ) during the lexus golden opportunity sales event, you can do both. it's an opportunity today. it's a lexus forever. special lease offers now available on the 2009 es 350.

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welcome back to "fast money." we're live at nasdaq market site in new york city's times square. want to keep you up to date on electronic arts, actually rolling over. we got more commentary from that conference call, the ceo saying he expects profit margins to be down year over year. so there are concerns over margins and he's cautious in that. we'll keep you posted as developments warrant. after july's market rally, certain stocks climbed by double digits. after such big run--up, which green shoots may be weeds in your garden? joining us for "trading after dark" senior options analyst

brian overby. good to have you with us. which stocks are you watching? >> the two stocks i'd like to talk about are continental and ann taylor. we've seen a lot of -- as basically, the catch phrase is consumer discretionary spending. as far as the airlines are concerned going forward, a little worried about exactly what the demand is going to be. we saw some good news come out of united airlines, but as far as continental is concerned, going into the new year, they still have a ton of debt. it's been mentioned at around $12 billion. and with a drop-off in any type of consumer discretionary spending going forward, a little worried about how they're going to actually pay off that debt. so, in the short-term, they've had a run-up of about 40% here, gone right along with the marketplace. but expect a little bit of a pullback going into the new year, when people start to realize that a lot of this debt is coming due. >> brian, how about the casinos and the autos? actually sold a little of the casinos on the close today and i'm short toyota motors. what do you think there?

>> definitely, the casinos, that is little worrisome, too. they've shown really good number, but again, anything -- a lot of the revenues that have come out, as far as earnings were concerned, were on the low end. so, what i'm really looking for is we're not seeing a lot of growth. and until we start seeing that type of growth in the revenues and everything that goes along with it, i think consumer discretionary spending is going to be on the low end, and that worries me a little bit about the casinos and i think you're right to sell into the market. >> brian, on your call on continental, would you throw united in there as well? is it all the airlines sort of lumped together or just continental specific? >> definitely, all the airlines lumped together, but continental to me is the worst inbreed, if you will, in that they have the most amount of debt coming due coming into the 2010 year. >> all right, brian. thanks. brian overby of trade king. guys, other stocks on your radar that seem to be green overshoots? >> three sectors that have out-performed are tech, materials and consumer discretionary. they account for 27% of the

market capitalization. that means 75% is underperforming. so, everyone wants to throw in energy as well, and a lot of my guys said it's just not the case. >> okay, any stock? >> i would have said whole foods, but apparently, that was the wrong answer. >> it may not be wrong. >> it is crazy, but you know, i'm wrong. >> all right. final trade, right after this. i drove my first car from my parent's home in the north of england to my new job at the refinery in the south. i'll never forget. it used one tank of petrol and i had to refill it twice with oil. a new car today has 95% lower emissions than in 1970. exxonmobil is working to improve cars, liners of tires, plastics which are lighter and advanced hydrogen technologies that could increase fuel efficiency by up to 80%.

time to reveal who made the most money today. media and property mogul zook kblaern takes a cool $4.7 million on the shares of boston properties. the stock soaring today. commercial real estate did quite nicely. time for the final trade. >> been trading abbott labs back and forth today, got back in again. >> directv. they have a cash flow positive coming in on an already overcapitalized cast. >> chairwoman? >> i like prize, they're going to spin off their business very soon. >> pete? >> the tech research i was talking about, i can't look away from it. i see all that call activity and think there is upside. there was a pause today. maybe we'll see more tomorrow. >> i'm melissa lee. see you back here at 12:45 for "the halftime report" and tomorrow for more "fast money" here on cnbc. everybody have a great evening.

tomorrow, president-elect your profit. former linebacker pete najarian. the xs and os you should know when the market's on a roll. plus, the future of the defense trade. a former head of u.s. central command on "fast money." at 155 miles per hour, andy roddick has the fastest serve in the history of professional tennis. so i've come to this court to challenge his speed. ...on the internet. i'll be using the 3g at&t laptopconnect card. he won't so i can book travel plans faster, check my account balances faster. all on the go. i'm bill kurtis and i'm faster than andy roddick. (announcer) "switch to the nations fastest 3g network" "and get the at&t laptopconnect card for free".

i'm jaime cramer jim cramer and welcome to my world. you need to get in the game! bears are going to go out of business and he's nuts! they're nuts! they know nothing! i always like to say there's a bull market somewhere. misdemean "mad money," you can't afford to miss it! i'm jim cramer. welcome to "mad money," welcome to cramerica. my plan is not just to entertain, but to educate. call me. this morning it looked like we were going to get hammered! it seemed inevitable that the market would be crushed! the first bull slaughter in weeks. instead, the buyers swooped in. >> buy, buy, buy! >> after a horrific opening. and saved us from disaster.

♪ hallelujah how is it that the dow blasted up 34 points and the s&p came back to finish slightly higher on a day when it seems early on that we should have been clobbered? why did the minor decline we saw at the opening not cause an even bigger sell-off like it most certainly would have in the past? i mean, every single time, every single time we have one of those openings, it triggered selling, not buying. where was the avalanche of sellers that everybody's waiting for? has something fundamentally changed about the physics of the market? in a way, yes. we're now in a world where you cannot beat the averages sitting on the sidelines. no, it will not work anymore. now with the s&p 500 up gloriously into the double digits for the year, it won't