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ain't no stops us now. welcome to "fast money." we're live at the nasdaq market site. let's get to the word on the street right now. i'm just a simple girl from new york. >> by way of harvard. >> but i don't understand why -- >> singing bad disco songs at the start of the show, by the way. >> okay. sorry about that. sorry about that, america. i don't understand why the markets moved higher today given the retail sales numbers, given the foreclosure numbers that we had today. >> the world is out of recession according to jim o'neal, founding of the brick. france and germany broke out of recession.

that's what i think people are excited about. we're actually getting some follow-through from the rest of the world. >> so this man declaring the global recession over, that's why we held on to these gains today? >> the market does what it wants to do. we've seen it do crazy things. i don't know that this means everything is great. it's over. although there was some positive data in some of the treasury stuff today. >> that's true. the options are over for this week. >> on the one given days, when we get that push to the down side, then suddenly the buyers all come back in. everybody who feels like they missed it -- i talked with scott wapner before the show and he talked about every time there is a sell-off, the buyers step in. everybody who has missed this rally, 350 points, scratching their head. wondering when they should get in. on the pullbacks is when they do it.

look at the banks the other day. we talked about this one. it was down a dollar and yet they were coming from the upside calls. today they traded to $1.50. i mean, it gives you an example of people looking for opportunities to the up side. that's part of what's holding the volatility up as well. speculation to the up side. protection to the down side. >> the flows were coming in. for that very reason, people are afraid that they missed the rally. that doesn't mean that's smart money. that's what people are wondering right now. >> the market may seem like it's trading illogically, but there's a logical explanation of what's going on. there really is. >> go for it. >> it's becoming a fast money trader. you're sitting at a resistance level that everyone is looking at and waiting for a correction. they are playing the market from the short side. when the market pulls back and does not have follow-through, this morning s&p futures challenged 998. it looked like we were going to get crushed below 990. nope. everyone had to scramble and cover real quick. the problem right now is everyone is playing it from the short side. until everyone stops doing that, the market is not going down.

>> you made a very good lead-in to this point. the smart money versus the slow money, the dumb money, people love to make fun of the mutual funds. the hedge funds have been too cute here. we've said it on this show. if you actually see these trends, somewhat normalized earnings, some return to a -- an investable marketplace, you don't want to get out of the way of this. we can talk about this and commodities. this trade is not over. so for a lot of people that have tried to say, hey, this can't keep going on, they've lost out. >> and it is a fast money trade because the fact that the money is coming in so fast. every day when you look at what kind of movement you're getting from various names that used to move that in a year, are doing it now in a week or less, that is why it's fast money. investors are saying, you know what, 15%, great. i'm out. i'll let the next guy get in. >> hedge funds right now were buying north of 1,000 in the s&p. i got to think right now hedge funds are playing the market from the short side where we're trading. >> karen, you mentioned the

silver linings today. what is the piece of information that people will actually hold on to and go into tomorrow's session? >> i don't know. they can get financings done. i think that is important. and so if the market wants to go higher, it will find any piece of data to go higher. even if it's negative news. they'll say the worst is behind us. doesn't matter what it is. >> all right. let's move on to the next story here. financials outperforming today. bank of america climbing 7% on word that john paulson bought 168 million shares in the latest quarter. charley gasparino brought you that story yesterday. we talked about that yesterday on this desk. yes, he is buying bank of america. he is buying regence financial. but we do not know what else he is buying or how he is hedging that position. >> but we don't know what else he's doing in terms of hedging or not. i think he had the skf. he had 7%. >> ultrashort financials.

>> the one interesting to my capital one. that's a true consumer finance play. if you look back, what was the concern in the first quarter? it was the financial stability of the banks. it was stabilizing the financials. so you have to have the confidence that if someone like paulson steps in and he is getting long capital one during the second quarter, he must be doing so after the stress test. that's a pure consumer finance play. >> one explanation of this graphic. this is his holdings, what he bought, how he increased his positions as of the latest quarter. the second quarter. it's the performances that you see next to these names indicate the performance over the entirety of the quarter. not necessarily when he bought to when he sold. we do not know that information. this is simply how these stocks performed as of the first day of the second quarter to the closing of the second quarter. >> you know, he had that entire position in the second quarter. >> no, by the end of the second quarter. >> okay. within the second quarter, he had put that entire position on

it, correct? which is when the bank had had a significant part of this run. the only point i'd make, this is a guy who made his money not only in the sector, but made his money with the call on the -- the real estate and the subprime and the bubbling up of the core problems that actually people like bank of america and wells fargo think still have lingering on their balance sheets. so that's what's in -- incredibly positive about this. the fact that, you know, you've seen the financials fall through and sympathy is really where i would be careful about this trade because they're not all the same. >> we talk about the analysts all the time and what value they have. we talked about goldman sachs, how they went back into early may going into the coal stocks, the chemical stocks. morgan stanley, this woman went cautious on the financials. late 2007, she remained and reiterated this in the middle of 2008 and she just went attractive when? may 2009. you didn't have to wait for mr. paulson yesterday. she was giving you the advice back in may. so it gives you on idea of who is hot and not. she has been dead right on. she picked out bank of america

as her favorite name in the group. she had an earnings for next year of over $2. at the time, at the time it was trading at a 5 pe. now it's trading closer to an 8 or 9. how much acceleration from 11 to $17 the stock has made. you've got to like what's going on. the analysts have been right. you want to follow those that are right. >> all the financials have been doing really well this week. the xlf, that tracks all of these names, up 10% in the past week. karen, i know you're long on bank of america. when you see bank of america, how do you manage your position? >> i actually don't do anything. i realize -- you know, any reason you had to be short bank of america, they keep coming up reasons that that's not valid anymore. the icing on the cake is this paulson position, which is a big deal. i'm not trading around this. i look at this as a long-term play. i look out to 2011 and try to figure out what can earnings be

then. i think they could be north. but she was just talking about next year. i think they could be even more -- i wouldn't be surprised at all to see the stocks, you know, in the high 20s or 30s a year and a half from now. that's what i'm looking at. not today. >> i want to step in. on behalf of the desk, thank you, pete, for sharing that information with us in the month of may. it was great, pete. thanks. >> i did. i did. i pointed this out several times. everybody missed it. the $40 billion, she brought that up and she said, look, that won't happen again. she also brought up the idea that, you know what, citi was the biggest and her favorite short in 2007. still hasn't gone positive on that name yet. this is an old story. i've got to think that the reason behind it, again, and it goes back to the stress tests. i'm sure it's one of the reasons why the morgan stanley analysts got bullish. the validity of the stress test and how important it was for the system.

>> on the politics of the stress test and banking right now, be careful. they're talking about market rules changing yet again and actually making loans mark to market, which will throw enormous volatility into the balance sheets' the flip side, over in the uk, i've talked about barclays a lot. the uk banks are starting to slip away from their regulatory body over there. there's less players over there. barclays is running away from the pack over there. >> we've got to move it along here. walmart up 3%. jcpenney reporting earnings tomorrow. walmart, people wanted to see the positive in this report because the sales numbers did miss the mark completely, down 1.2%. they had forecasted a rise of 3%. >> right. but they did -- they did hang on to their guidance, right? >> low end of the forecast, yes. >> so, you know, i take some comfort in that. it's not like this is trading at a crazy multiple where they miss and then you see this huge multiple contraction and you really get the stock coming in. not at all. this is cheap.

i liked what i saw today relative to what's happened to the other things out there. we talked about the xrt, which is some of the higher-flying retail names. it's too expensive. i think it's starting to converge. i actually think both the one will come down and walmart will go up. that's sort of what happened today a little bit. and this is a trade i'm going to keep on for a while. i like walmart still. >> two quick things on walmart. they have $13.7 billion less in the buy-back program. the other part of their miss on same-store sales, there was deflation in grocery prices. the prices of goods went down this quarter. that was very good and part of where their margins came through. i would not be looking too poorly on that. it's more about the guidance. >> they didn't crush the number. if they would have crushed the number, they would have told us more about the number. i think the fact that they didn't spoke volumes to me. i like that. then add that to the whole foods great number. you're suddenly seeing the market pick up a little bit.

yeah, the spending is off. retail sales weren't fantastic. a lot of that was due to the auto industry stealing away those sales. walmart, if they crushed the number, i would have been nervous about the market. >> let's move on to the chart of the day. why this rally might be ahead of itself. one reason is the short interest. if you look at the short interest on the s&p 500, dropping this month to its lowest levels since january. if you isolate the last two weeks in july, a period in which the s&p 500 gained by just about 6%, short interest dropped 10%, its biggest drop in ten months. the nasdaq short interest was down 5%. that was the biggest drop in seven months, which may indicate that that rise in the stock market that you saw was fueled by a short squeeze, people being squeezed out of their short positions. that begs the question, does this rally really -- >> i think it's a matter of -- in terms of short, open interest if it continues to move lower. >> obviously, yeah.

>> if everyone gets squeezed out of the market from the short side, that's when you know the bottom is going to fall out. >> if you look at that chart, short interest is still higher than it was back in the fall of 2008 before we went into this blood bath. so i'm not really too concerned that short interest has dropped off and therefore there's not a lot of the nitrous getting underneath this market. >> let's bring in the pit bull. rick santelli joins us live from the cme. rick, you heard here talking about short interest, whether or not this market is really fueled by a short squeeze out there versus fundamentals. what is your take? >> i think not only does the emperor not have any clothes y think he's surrounded by a room full of tailors. that's my read on it. who mentioned the difference between mutual funds and hedge funds? >> that's me, rick. >> okay. i'll tell you what. you nailed it. you know, mutual funds, the average guy, my parents, most

people on this floor have a lot of money with mutual funds. how do you think they would have behaved if the mutual funds didn't get involved in this bounce? >> they would have stayed sidelined because they were waiting for the dumb money to come back on board. >> there you go. hedge funds, a different animal. i think you nailed it here. the hedge funds are looking at this in a much more cerebral way. it's very tough to think that the pricing we're seeing now is going to show up in three quarters as a panacy of profitability and efficiency. what do you think? >> i think you're right. i think we probably overthought it at times in the rally. i'm one of the people on the other side that says i think economic conditions have returned not in a -- in top form, but we've seen a recovery on gdp, a rise in pmis. >> where is the horse power coming from? we've talked about it a million times. but in the end, things like foreclosures speeding up today, unemployment, hey, we're losing less jobs. we're not creating any. where is the money going to come from? >> rick, i need you to bring it down to the bottom line. in your market, what does this mean for bonds, for the dollar, for the things that you follow? >> i think the dollar is going to have a tough time because of

the medicine and the costs. i think interest rates, watch stocks. if stocks go up, they'll go up faster but they'll go up anyway. >> all right. rick, thanks so much for joining us. the pit bull joining us. >> is it pit bull or big sir? >> i'm confused a little bit. i don't know. >> i thought he was the enumerator. didn't we give him that? >> the denominator? i don't know. >> he's got tailors. >> he deserves them all. >> let's move on to the next thing here. >> what they're basically doing, which i think helps the stocks more than anything is they changed their long-term prices for aluminum and copper in the short-term. it's actually a bigger deal for the copper prices. demand in aluminum is going to come back harder in terms of the velocity in 2010. look at freport, look at alcoa. those are regis' trade. >> hey, regis. >> don't do it, regis. don't do it. buy some puts or something. >> don't get out of that name.

it's incredible. if you talk about momentum you're seeing now, three months ago the estimates, $3 a share. now $4.50. gives you an idea of the direction of copper right now and what people think. and then you add that big chinese takeover, $3 billion, it gives you an idea, this industry is consolidating. coal is still on fire and the copper name -- >> copper went from $1.30 to three bucks. that tells you all you need to know. sorry. >> regis got me thinking last night. last night it was my final trade. regis, i'm not feeling too good right now on your final trade, but if you look at the commodities, if you look at the materials sector, when they are going to continue with an easy monetary policy, it's a no-brainer. we are just basically reflating the commodity bubble once again, drives the dollar lower, material names, commodity names are going to rise. >> let's talk about another

commodity. >> where did all of the dollar bowls go? two days ago, everybody is saying that the dollar was going higher. >> not me. >> nothing has changed. >> wait a second. hold on. let's everybody clap for timmy. >> the point is -- >> i'm with you. >> these are structural trades that are not trading in and out. the dollar will continue to weaken over the next two to three years. it may rally back on some economic data, but the reality is that the -- >> the long-term plan -- >> by the end of the -- >> your reality is the street hates goldman sachs. they make so much money and they're so smart. look what they're doing right now. those things are moving around, shifting around. gives you an idea. if these guys are right, if you hate them, listen to them. they're telling you about the market. >> oil above 71 bucks a barrel. chevron and exxon closing slower on the day. >> we spoke about it on the call today. it seemed to me that oil was actually leading the s&p today.

oil fell, challenged 70 bucks. the s&p came off with it. oil began to rally. the s&p followed it. oil had strength today in the oil space. kind of creeping in a little bit. we talked about that. contango coming out ott market. the oil trade which we kind of forget about, it's coming back. >> should we talk about -- they signed up to the new contracts. i mean, there is -- it's booming again. it's early, i think. >> and, pete, you're saying -- >> yesterday, some long-term people, long-term to me, they're a couple of months out. longer-term people were making moves to the up side out to january 2010, looking at the 24, 25 stakes of weatherford. buyers of both 4,000, 10,000. there's a very big commitment right now. >> and it also helped goldman sachs yesterday. talking highly about the entire servicing sector based on a valuation pullback.

>> time now for "analyze this." if the consumer is driving the economy and the stocks in your portfolio -- could the numbers on retail spending and disappointing jobless claims mean that we're in for a rough fall? michelle meyer has her finger on the pulse of all things economic. michelle, great to have you with us. >> nice to be here. >> double dip has come into the conversation of late. is that your belief? >> it's not our belief. we think we're going to see a cyclical bounce in the second half of this year driven by the deep inventory cycle that should create momentum in the economy, that should start to help the labor market. we think that we will see a recovery. not a healthy recovery, but still a pretty modest recovery. >> so, michelle, does that mean that timmy is going to be right and the dollar will continue to weaken? or if we have growth and it is seen as u.s. is the first out of this thing, will the dollar shake all the shorts out?

>> we think the dollar is going to weaken. >> that's my girl. >> the biggest reason for that is the feds likely going to keep monetary policy quite easy. they said that in a statement yesterday. they plan to keep the fed funds very low for an extended period of time. they want to be sure that this recovery is happening and that it's going to be a solid recovery before they actually start hiking interest rates. >> michelle, let's talk about ford who came out today with very exciting fourth-quarter production numbers. everyone wants to chalk this up to cash for clunkers. back in may and june, auto sales were 1.9 and 1.5% of retail sales before this program got under way. is that a dead consumer even before cash for clunkers? >> the consumer has been hit very hard by this recession. they're struggling with a massive wealth destruction. net worth has just plummeted lower. tight credit markets and high unemployment. so the consumer has been under a lot of stress. you can see that in the data. there was a sharp decline in consumer spending at the end of last year and earlier this year. we're seeing signs of

stabilization, but we're not quite there yet. what we are seeing now is kind of a shift towards auto sales because of the cash for clunkers program. but, you know, the consumer still is under a lot of stress and will be until you start to see the labor market improve. >> right. michelle, always a pleasure to have you. michelle meyer from barclays capital. >> another regis "fast money" love affair continues. he gave us another shout-out on his show. take a listen. >> i told you about this guy on "fast money." guy adami. you know, the -- >> yeah, we talked about him. >> he doesn't mean to. the cameras are all over the place. he will look right into the camera like this. and he never blinks his eyes. he's one of those guys who never blinks. what does that mean? >> he's a non-blinker. the twitter folks love when you stare into the camera directly. it's the funniest thing they've ever seen. >> we got an e-mail while the show was on and it said stop

looking in the camera like that. my children are frightened and crying. >> and that's why no kids watch this show. >> there's a lot of reasons. >> you do regis better than regis maybe. >> he looks that camera like this. that guy is the best. i love him. >> the children are crying. all right. that was the "word on the street." here's what's coming up next on "fast money." they pulled the quarterly files on john paulson and surprisingly it revealed a stake in bank of america. what other surprising stockholdings are coming this week? karen finerman reveals some more shocking stocks. and -- >> get tougher kids. you know what, you want a friend? buy a dog. wall street's tough. >> markets climbing a wall of worry. are we too scared or are the markets too careless?

plus, from the farm field to facebook, 40 years after woodstock, the venues changed but the force is the same. how to get behind the next generation when america's post market show continues. taking its rightful place

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welcome back to "fast money." we're live in new york city. a resilient market continues to climb a wall of worry. but it failed to deter the bulls today. time to see what the charts have to say about all this enthusiasm. it is time for "chartology." carter werth is standing by at a magical place we call chart center at cnbc headquarters. carter, what do you see in the s&p chart behind you? >> let's take a look here. i want to show you what -- working off moment-to-moment try ing to figure out. what i've tried to highlight, if you see here, this is the low of friday, october 10th, to the high of tuesday october 14th. that is the largest three-day low-to-high rally in the history of the s&p. you're talking 25% in three sessions. and we are basically coming up to that level now and we think that's the level where it finds

a lot of difficulty. ando the presumption is the market grinds here and has to cope with that very dynamic moment. any thoughts on that before i go on to -- pete, i've got something on fcx for you. >> let's go, baby. >> i want to look at the case for why one is right to get involved in natural resources. one kind of resource stock and not involved in freport. what's so interesting is copper is now up over 100% off the low, but most importantly, and i'll try to step aside here, but it's retraced back to the lows of '08. to put that in perspective, look at the next chart. a five-year chart of copper. this is the story. almost a ten-fold increase, as everybody knows, in the very dynamic period of the proceeding four years. and then the 70% plunge of '08. and now we've retraced exactly half, a little bit more, and our

bet is that this is going to start to run out of gas right here. >> carter, it's joe. bottom line, i bought puts today. am i in trouble? >> good interruption. let's go to the next one. so here's a -- here's freport versus copper. the stock versus the commodity. and now look at the next chart. this is alphanatural resources. a much more gradual, orderly bottoming-out process where freport was, frankly, five months ago. alphanatural, a steel play, has gone from 15 to 30. freport has gone from 15 to 60. this is time to take profits in fcx, redeploy to an alphanatural resource. >> whoa, whoa. >> hold on, one at a time. >> i have stock positions in these things. i want to ask him something here. >> come on. >> carter, when you've got these things and you're looking at these charts, if you sell at this point in time, now you're out. if you buy puts to protect a position, you can maintain this

thing in case we get for what timmy has been calling for as well. continued reaction from the -- >> you'll have more alpha, let's say, than you will out of -- let me also respond to one thing you said, which is fair. the analysts have moved the estimate for 2010 from 3 to 450. but guess what. nine months ago, their estimate was 9. right? they were saying 9. changed it to 3. and now moved it back to -- >> carter, i've got -- the fundamental argument i have to karen and the charts, steel prices have only gone up about -- they've gone up about 40% off the lows. that's exactly why alpha has done what it's done. copper has gone up three times. >> we think it's too steep. >> the point i'm making is that the long-term demand for copper is increasing at a rate that equates with the price move and the actual supply of copper, if you listen to freport and all the major copper producers in the world, they're not producing as much. copper demand is not down enough

to actually warrant a big move in freport. i think -- >> i'm aware. that's why the chart reflects that. at some point, everyone knows it, fully priced in, and we have to listen to regis. >> carter, it's joe. real quick, regis got me into this trade. now i'm on puts. >> you don't need me to tell you how to control loss. after you've had a substantial loss, you have to walk. >> all right. carter, always great to have you. thank you. what a good sport carter is. he's getting so good at the finger pointing and the levels. next right here, john paulson surprised us with his massive bullish stake in the banks. could there by more shocking stockholdings? karen finerman has been digging through the fineprint to see who else could surprise us. who else will? >> we have two days left. we'll see in the next two days, tomorrow and monday, a whole slew of filings. number one for me, i like to

look at david einhorn. he has had notable positions in the past. he took physical delivery of his gold instead of owning the etfs. it will be interesting to see if there's any movement there. you don't see the short side. he has been short against warren buffett, which has worked. i like to see what he's up to. he's had emc positions. that's going to be interesting to watch. carl icahn, i love him. i love to see what he's doing. he's all over the place. we'll see if he's doing anything in yahoo or not. and then leon cooperman, who -- at omega, he is a great value investor. i love to see what he's up to. he has a lot of energy holdings. he has had a very nice ebay position it seems. that worked very well recently. another one is seth klarman. those are the names i'm watching. >> so we don't know how they're

hedging their positions. we don't know if they're shorting on the other side. what do you use this information for? >> some of them i just call them and say, hey. >> hey, what's shaking? >> i -- you know, a lot of these kinds of investors that i followed for a long, long time, you see they're not really trading in and out of things. you can't trade out of that so easily. so even though it's a little dated, i think the information is still useful. >> and you realize half of america now is going to trade that because you got out. >> all right. time now to trade the globe. we're not talking about deaf leopard's european reunion show. we're talking about sugar. >> pour some sugar on me. >> the futures were up 90%.

the ambassador has a way to trade it. >> quick supplies, the shortages is coming out of india. and also brazil, where a lot of the sugar is being allocated toward ethanol. there's not a lot of ways to play this. czz is the biggest producer down in brazil and in latin america. some of that is going to what's becoming a very profitable ethanol trade. the other one is corn products international, which is a company in illinois which is $2.5 billion company that makes corn sweeteners. artificial sweeteners may be the part of this trade that works. both of these stocks have priced in a significant part of this move, but for corn products, they may start to see a totally different client base. sugar was off 3% today. there's a lot of political pressure on the obama administration by the industry, kelloggs and general mills, who are going to pass on higher prices to the consumer if they don't import more sugar. so watch this trade. >> sugar is trading 22 cents back in 1974 when you probably weren't even with us. >> i was around.

>> i don't think you were. >> i'm very, very young. >> price of sugar, 66 cents. and listen to more def leopard. these guys are still rocking. all right. coming up next, is john paulson the next eddie lampert? charley gasparino will make that case. why he might be due for a fall. and why the stocks at the bottom of your screen made our list of peeps drops today. i'm racing cross country in this small sidecar, but i've still got room for the internet. with my new netbook from at&t. with its built-in 3g network, it's fast and small, so it goes places other laptops can't. i'm bill kurtis, and wherever i go,

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shares of bank of america continuing to go up today. john paulson took a large stake in the company. take a look at this. this is citigroup after another revered investors, eddie lambpet bought shares. didn't turn out quite so well for eddie there. now investors want to know is paulson the next lampert? let's go off the record with chaz gasparino. >> how about chuck? >> i call you other things, but that's all right. go ahead. >> all right. different environment, right? remember may 2007?

didn't have mark to market accounting. we don't know enough about -- the disclosure requirements are different than they were back then. and i think, you know, paulson probably has his is dotted, ts crossed. we know that they may have some commercial real estate exposure. we know they've refenced a lot of bad assets. the fed and the treasury are saying, hey, take as much risk as you want. interest rates at zero. make some money. there's only a few dealers left, right? >> are you making a call here on bank of america? >> i don't make calls. i just -- >> i'm not sure where you're going. >> it doesn't matter where i'm going. >> it could turn out better for paulson is what you're saying? >> if you look at the facts, different environment, i think it's -- you know, it was -- listen. i brought up the lampert thing last night. different environments. >> so we know he --

>> you make the call, bro. you make the call. don't make me -- >> i'm just trying to understand. >> are you trying to get me fired here? >> he's jumped two feet in. we know -- >> we got interest rates, right? >> shouldn't he be smarter getting into a bank? he's ridden the ride on the fair and back on the way up. so far, that looks pretty smart. >> we have to back up a little bit. >> this was the guy who famously -- that's why all of the conspiracy theories in 2007 and 2006, that they knew something that no one else knew. i read something about this. but anyway -- you know what magazine that was? whatever. >> just kidding. >> you want to know something? what's his name, paulson, was shorting it back in 2005, 2006 because people saw the problems in the housing market. so, listen, smart guy. different environment. i thing it's kind of an unfair comparison. >> listen to what i'm asking

before you answer the question. you're saying -- >> do i have a hedge fund on the side or something? >> you're saying it's a very different environment now. we know a lot more about the banks than we did before. does this relieve the pressure off of ken lewis? >> that's a different question. >> but if you're saying that we -- >> i don't know. because ken lewis -- he screwed up a lot. he bought merrill lynch, didn't do the due diligence. there's a board change going on now, a radical board change that's going on. i hear from inside bank of america that barring something coming out of the investigation into the losses and into the bonuses that went on, whether they were disclosed properly, he's going to stay around for a while no matter what. this maybe helps him, but you never know. when you screw up as many times

as he has or so far, right, if you -- one more puts you, i believe, over the edge. especially when you have a changing board. >> chaz, got to leave it there. thanks for joining us. pleasure to have you here on set live. >> we forgot to talk about -- >> i think that was a bigger part of the rally today. this is a very smart woman who's taken the job and knows probably better than paulson does what this bank looks like. i thought that was impressive. time now for today's edition of "pops and drops." we kick it off with the pops for alcoa. it was up 6%. >> again, aluminum prices up 3%. this is a great stock. the prices can go higher. >> monsanto was a pop. >> it normally does give them a pop. it gave them a pop. they've had a lot of pressure. >> we've got a drop here for aap, down 5%. >> sooner or later, this was coming. four times as much as the average daily volume. you've got to get it to the sidelines on aap quickly. >> copper urban outfitters, it was up 3%. >> the earnings were pretty good. came in higher than the street was expecting. this one is not for me.

too expensive. it's exactly the kind of thing i'm short. >> we've got a drop here for the beer tosser, the infamous beer tosser. >> it was on a philadelphia phillies -- >> yeah, okay. come on. >> shane victorino has filed a complaint against a beer that threw a beer at the outfielder while the game was in progress. the police arrested the wrong fan after the incident and say when the real fan is found, he will be charged with assault. >> there was some guy that wanted to take credit for this. it was really bizarre. they beat him up. >> would you like if someone came in here and poured a beer on you? >> not on me. in a glass maybe. coming up next, woodstock celebrates its 40th anniversary this weekend. dennis was one of the 400,000 who gathered in a farm field for peace, love and music, as he does today. he's got trades on the next generation of free-spirited flabbergasted when we creamed the $700 cream!

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breaking news on apple. the board will meet on tuesday to discuss a replacement for eric schmidt. he resigned because of potential conflicts of interest.

moving on, 40th anniversary of woodstock is this weekend. although the three days of peace and music left an indelible mark on american culture, it also marked a turning point in american capitalism. take a look. the music. the mud. the money? tickets to the woodstock music and art fair were only $7 each. corporate sponsorship was nowhere in sight, but the sheer impact of the half million youth united under a common counter culture caught the eye of marketers, advertisers and big business. they shifted their target away from the focus on the nuclear family and towards a new, young, empowered generation of consumers. 40 years later, america is still obsessed with what the kids are buying. it's social networks, text

messaging a twitter. what is the way to shift from the farm fields to facebook? we asked a man who was frolicking in the mud in 1969, dennis gartman. and get ready for some "fast money" buys. >> all right. >> all right. joining us is dennis gartman. you haven't aged a day, dennis. >> i had a little more hair back then. >> how are you celebrating this 40th anniversary? >> trying to forget it. it was raining then like it's raining now. trying to make a few dollars and keep my head above water. >> dennis, were you working the ponytail? what was going on back then for you? >> it was a long time ago. >> how do you trade the facebook generation today? >> we're still baby boomers.

we're still the ones in control of the money. you have to look at where the baby boomer is going to go. you know, the banks are going to -- we've talked about the banks tonight. the banks are going to be the great beneficiary. our kids are grown. they're out of school. we don't have college education to pay for. we're probably going to downsize. so i think the big house sellers are going to have problems. but the small sellers of houses are going to do fine. you're going to want to own the stocks of the companies that have health care. you're going to want to own

senior living circumstances. so that's the great beneficiaries, the banks, the people who sell health care and the people who have a -- who are going to have trouble will be the makers of large houses because all of us for going to be downsizing. >> woodstock was a tremendous social phenomenon. today we've got other devices like facebook, twitter. are there ways to trade that? >> first of all, i don't understand even how to use twitter yet. i'm getting used to the word. i don't think anybody does. nobody my age understands twitter. but those are the places you're going to look. technology is still going to be the driving force. apple is going to be a driving force. so i think the trade is be long of apple and short of large home builders. >> all right, dennis. enjoy your 40th anniversary weekend of woodstock. >> thank you. coming up next, action on a hot dotcom that doubled this year.ut no department store longwear gives you so many different ways to last through breakfast lunch and dinner. more choices, more shades, more outlast. ♪ covergirl to its employee storbenefits package at no direct cost to the company... it was a perfect fit. find out more at aflac!... ...forbusiness.com

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welcome back. stocks have been on a tear, but the staggering declines means prices for options are easier to buy protections. options action trader and chief market strategist at susquehanna. your reputation is being cheap. come to "fast money" now. we talk about this every week. >> take a look at this market. we're up over 50% since the lows in march.

priceline is one of those stocks that's going to epitomize what is interesting here. it's up 80% from march. up 100% on the year. up 40% just in the last month alone. volatility continues to come in, which makes protection cheap. one thing that's interesting, when you think of protection, it's buying an out of the money put. priceline specifically, i think there's an even more interesting strategy you can do here if you own the stock. yes, you can buy that out of the money put. you know what i am? i'm cheap. i like to consider it frugal. i don't actually want to spend the money. in the case i was looking at, the 130 strike put which is going to give me protection around 14%. it was trading around $8.90 earlier today. i don't want to spend $8.90 for it, so i want to sell an upside call. in this case, i was looking at the january 170 strike call that was trading around $8.10. so if the stock does continue to rise, it's going to be called away. up around 13%. protected down around 14.

it's going to cost me 80 cents instead of $8.90. and, again, it's interesting. we talked about the volatility coming in on a relative basis. it's also trading at a low level, which is why i like this trade. >> pete, what do you think of this trade? >> i love it. i think that's the way you should try to approach something like this. i actually like to approach right at the money. the reason is i want that protection right now because i'm fearful that after this big run, it can pull back. i love the strategy in priceline. >> hammer is stacy's nickname. but she is now an options -- stacy, i'll see you tomorrow. you can catch stacy and myself every friday night at our new time, 8:30 p.m. eastern time. that does start tomorrow. "final trade" right after this. he ran off with his secretary! she's 23 years old! - oh, come on. - enough! you get half and you get half. ( chirp ) team three, boathouse? ( chirp ) oh yeah-- his and hers. - ( crowd gasping ) - ( chirp ) van gogh? ( chirp ) even steven. - ( chirp ) mansion. - ( chirp ) good to go. ( grunts ) timber!

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it's time to reveal who made the most money. and it is steve mandel. he takes the top spot today. he made $48.8 million today as he watched his shares of las vegas sands share more than 13%. amending its credit facility. >> that's a good 13. >> exactly. >> let's do the "final trade." >> solar trade. all companies are not ldk. let's go back to basics. if you are looking for a bearish play, look at the home builders, the reits i sold short today, kb homes and avalon bay. >> i like pride. back in the oil field services,

pde is the ticker. >> i love goldman sachs, but i love what they said about blue cyrus and because of that, i still like that stock. it made an incredible move to the upside. i still own it. i've taken off a little but i still think there's upside. >> i'm melissa lee. thanks for watching. we'll see you tomorrow for more "fast money" right here on cnbc. with my new netbook from at&t. with its built-in 3g network, it's fast and small, so it goes places other laptops can't. i'm bill kurtis, and wherever i go, i've got plenty of room for the internet. and the nation's fastest 3g network. gun it, mick. (announcer) sign up today and get a netbook for $199.99 after mail-in rebate. with built-in access to the nation's fastest 3g network. only from at&t. the $100 cream. flabbergasted when we creamed the $700 cream! for under $30 regenerist micro-sculpting cream hydrates better than 32 of the world's most expensive creams. fantastic. phenomenal. regenerist.