better. what were we worried about a couple weeks ago? another major bank failing. what have we been worried about? the consumer dying. retailers up. everything else looks good. the market rally on tap after october. >> hate to be the debbie downer because i know guy plays that role so, so well. but we get one data point after dismal data point on friday, goldman makes the call which some might argue is behind the times because look at the run in the financials, they upgrade the financials today. and all of a sudden the market feels a whole lot better. >> put new money to work based on these financials that are extremely choppy. i say dress up like a bull come halloween and you're going to see the market run into year end. >> i think i know what your costume's going to be, guy. is it going to be debbie or a bear? >> you've got no idea what my costume is. trust me. listen, i read a piece today by our friend whit tilson. talked about the fha market and blah, blah, blah, how they're levered more than bear stearns was at their peak and there are a lot of people out there who say the data doesn't support

this rally. i'm one of them. not nearly as smart as those folks. but i'll say it again. you can't fight it. the market wants to go up right now. fantastic tape. goldman was late. you can't make the argument that they weren't late. you can make the argument that maybe they'll show continued strength. but there's no way you can't say that they're late. but that being said, right now the tape just wants to go up. >> the last week we clearly lost momentum and risk is being taken off the table. the number this morning, ism, non-manufacturing, that was pretty good. goldman's call, again, that was good as well. but when you look at the marketplace right now and you talk about what's going to be the catalyst going forward, it's all about top line earnings, it's all about sales growth, it's about q3 earnings. we got a little taste of that tonight. and that is what the street is going to care about over the next couple days. >> last week it was about bad data and we reacted pretty well. when we looked at friday, we all sat on this desk saying that was a pretty impressive rally we got off of the lows. we started the day, looked terrible. the volatility index spiked. we almost got to 30. didn't get through 30. as a matter of fact, now you

take a look and it is pulling back dramatically because people took the opportunity to use the volatility, like we've been talking about. cheap volatility down near p 23 that seems to be a buy area. up toward 30 great opportunity to start using it to sell for those stocks that you're trying to protect in that sort of a manner. that's working but today's data that was impressive. the one thing that's not impressive is the volume. you look at the volume right now, 10 million contracts on the options side, about a third of normal option volume in city, although it was primarily calls but about a third and about half of the normal volume in ge. the rest of the financials, when you look at them, the volume was not there to make you suddenly jump up and down and say you know what, everybody's a believer, because not ev's a believer. >> let's qualify the volume, though. of the volume you did see was it mostly calls or mostly puts on some of the sectors -- >> most ll lly technology and financials, those are the two that were most active. 10 million versus 15 million. we're talking about two thirds of normal volume. but yes, when you look across the board, ge, twice as many

calls as puts, the same across almost every one of those. financials, technology. people taking opportunities to take cheap shots, especially in technology. volatility there has been remaining low. we talked about apple last week. volatility there extremely low. not a great opportunity to sell premium there but a great opportunity to buy. keeps getting cheaper. so they're no longer just buying the down side put, they're buying up side calls looking for even more. >> which is great for all the investors out there as the price targets keep getting raised on apple, the volatility's going down, which is -- >> it's all about expectations and that's why i agree with steve and i think after we get to the c.c. sabathia throwing the first pitch of the world series you've got to be a bull, you've got to be back in this game, because the expectation when you look at these earnings it's all about top line sales growth and i tell you what, i don't think the majority right now, the overwhelming sentiment thinks those numbers are going to be good. >> the bar's going to be pretty high for the third quarter. in the second quarter 75% of the companies on the s&p 500 beat eps estimates. only 50% beat on the revenue estimates. that is going to be key going

into this quarter. meantime let's move on itto one of the big stories of the day. topping the tape, financials. goldman sachs upgragd the big banks to attractive from neutral iting earnings power. the company specifically putting capital one financial on its conviction buy list. capital one financial, which by the way is up some 300% since march. wells fargo was also upgraded, which is by the way up some 180% since march. so guy, you're willing to give goldman sachs, a former employer, sort of the benefit of the doubt on that in that they could still be right in that there could still be more to run but when you take a look at wells fargo, which is up 180% it's sort of hard to make that case at this point that it's 12 months. >> they could absolutely still be right, but they clearly have been late. i mean, you can't make the argument that they haven't been late. they have been late. wells fargo-a traficant from neutral, maybe. the stock's had trouble with 29 a bunch of times basically since march. i think it will have trouble there again. they raised their price target to 35 from 31. frankly i don't see it. i'm still waiting for them to

earn their way out of the tarp. we'll see if that happens. the environment suppose thely great for them toe sho great earnings. we'll see. that remains to be seen. plus you know what, the consumer to me still not back, a lot of consumer exposure, real unemployment close why 17% p the banks still scare me a little bit. >> whatz sense you're getting, grasso, on the floor? >> guys are talking about these banks aren't lending. i don't know about you guys, but do you have any anecdotal stories of friends who are looking for money that are cash rich and still can't get a loan? >> i don't see it. so i don't see the loan growth. >> the beginning of normalized earnings was there in q2. that's what surprised the street and financials. the question became after q2 if you could see sustainability. durability in normalized earnings. when you look at a name like wells fargo, goldman sachs, morgan stanley, jpmorgan, now this report this morning suggests that you actually may see durability and sustainability and another quarter of normalized earnings.

>> tangible assets for wells fargo increased 70% in this past cycle according to goldman which is the reason why they upgraded specifically. >> the opportunity's still there. i know joe later on's going to talk about jpmorgan but let's touch ton right now. we were talking about a stock two weeks ago we had our new british friend standing here saying how can you possibly like jpmorgan at these levels? i'll tell you why, because of days like today when goldman sachs suddenly goes hey, this is an attractive sector, we like the big banks. i like the bankz. i still think you use the volatility to your favor and on the next level down of the assets take a look at guy adami's jefferies, greenhill, lazard, the cheapest in the group. those are names i think you want to keep your eye on because there's still so much up side, secondaries, ipos. they are starting to crank the money that way, and don't take your eyes off of my man blackstone. schwartzman's got these guys clicking. there's big talk about buying all of those different properties down there, the busch gardens, whole property. that could be a still because

we're talking about buying something on a discount. that could be a huge discount, 2 1/2, 3 billion dollars, not a bad use of the assets for the guys at blackstone. >> jefferies, 52-week high today glp and closed on the high. i think it will go to 29. if this is your initial foray into it understand you're buying it up somewhat, couple hundred percent. this was a $12 stock when we started talking about it but they're doing everything right we should have richard handel on. we'll have art hogan on wednesday. we can chat with them about a bunch of things. jefferies is doing everything right. i just think now you're late to the game -- >> we've been saying he's going to be coming on for weeks. >> he bailed last week. >> shoot up a flair or something? >> but guy, you can still protect yourself. and that's the whole point of what i've been bringing up. volatility is so cheap -- >> we've seen the put buying when it comes to etfs that track the financials. >> absolutely. the xlf you've seen a lot of put buying there. is it speculative to the down side i? think it's much more protective right now than anything. >> bullish refrms in gold today.

commodity closes higher by 13 bucks above the $1,000 mark. joe, you made a pretty good move on gold in terms of buying it when you did a couple weeks ago. >> what was miss k this morning from a higher equities market was the participation of the commodities space but got that as we went further along in the day. right now the commodities tried trade, the gold trade, it is not about inflation, it is about liquidity. it is a liquidity-driven trade right now. gold looks like it wants to take out the 1033.90 high back from the bear stearns days. commodities, you had a nice reversal in oil, nice reversal in copper and when you look at the equities names themselves the coal names pete talks about, the steel names i talk about, they were on fire this morning. the entire commodity space i believe through the -- >> you've got to splain when you say it's a liquidity driven trade. >> it's an accommodative policy around the world. global central banks just want to flood the system with as much cash as they possibly can,

stimulate, stimulate, stimulate growth. and the central bank that actually floods the system with most cash, that is going to weaken the currency as much as it possibly can, and i will tell you right now in private quarters i cannot believe that ben bernanke and the federal reserve don't want a lower dlash dollar because right now that's their way out of this. a lower dollar translates to higher commodity prices and higher gold. >> and translates into support for the stock market. yet again we see that today. >> it seems like they do want a lower dollar despite themselves because the trade seems to be over short term, sought dollar rally's back. but i would assume bernanke wants a lower dollar judging by his action. >> absolutely. they want to export their way out of this, stimulate growth. >> and these coal stocks have me fired up again. i was losing a little bit of face. you look at peabody and talk about 18 fwhl potential asectors the reserves they've got, and it's trading at $10 billion right now. then you talk about 7% growth in the pacific rim. a lot of very, very positive things right now. metalurnlgic coal. not the thermal coal.

met allurgic coal. 30% margin as opposed to 20% in the u.s. ewe got to like the ceo. peabody one of the names walter industries had a huge spike off that today as well. >> bank of america out with a very bullish call on gold saying 1500 bucks an ounce by 2011. they also say that that will happen when oil hits $100. you though why they say that? because they say the last time gold hit its record high, which was back in march of '08 with 1030 oil followed just a few months later in july with its record of 147. we also saw today a bullish reversal in crude, joe. >> we talk all the time about contango and backwardation. if you take spot the price of the first contract of oil versus the price of the second contract of oil the first contract is gaining so much the price of the first contract of oil for the first time in a very long time they move out of contango into

backwardation, it will be more expensive. >> did you see caterpillar today? yes, they're raising their prices and why can they do that? they're excited about what's going on in the mining industry. some construction, maybe infrastructure, all the rest of it. it's the mining industry. look at joy global, bucyrus, caterpill caterpillar, all three just absolutely cruising to the up side. there's still strength in that sector. >> let's talk tech, shall we? tech shares trading higher today. you don't want to? >> no, why not? i was giving you the nod yes. >> ceo john chambers at cisco saying he will see a pickup for m&a in his sector as well as for his company. that international acquisitions are not off the table. and it doesn't hurt the fact that a couple companies basically coming out saying we are for sale. come on, buyers. come on down. what do you think? >> the company we've talked about forever has been ntap. they've pretty much said they were for sale. an interesting "barron's" article this weekend said they're for shail but there are not a lot of buyers and if there are buyers they won't pay up.

but ntap still up 3.6% today. upgrade rbc capital. this is a name we love forever. short interest. think goldman put it on the conviction buy list on september 21st. everything works for ntap. it's a name you're definitely chasing. valuations don't make sense but this is one i would continue to -- qul and you might be chasing but you look the at whole industry, seagate last week raised guidance. ntap, brocade. it's a sector on fire right now. it's a sector that's getting targeted by the big names out there as well. when you're looking at something like brocade and you see the extraordinary activity, the october 9 call, incredible, 33,000 of those traded on the day. then november 9, november 10, incredible amount of call activity versus the put. normally trades 5,000. they exceeded that. they dang near trade 100,000 options today. so there's an incredible activity on that "wall street journal" story. but it dragged the whole sector. you've got to keep an eye on those names. we've been talking about them since march. western digital, ntap, seagate. emc is another one of those

folks out there still looking as well. you're going to look for some of that consolidation. >> which space aren't you chasing these days? pharma ran. even the reits have doubled. everyone was throwing reits out. you have the high beta trade. everything has run. so what you're going to see is people going back to value, and it could be tech even though it's still topee. >> what was great according to the sbulz even the rumored acquirers of brocade, hewlett-packard oracle, had a nice session today. >> they did. and one other name we have to mention that we talked about is rim. it will probably trade down to 65. rimm actually closed unchanged slightly lower today. i think it's pushing to the 65 level. that despite a great tape and upgrade by need m. i think needham's spot on. i think now rim at 65 makes sense. now's the time to be getting in and not getting out. if you got in in the early 70s we told you you're too early. now's the time to -- >> if you're wonder field goal b. any kind of catalysts ntap on thursday they've got an analyst day as well.

if you're looking forward for more possibilities to keep out of this keep an eye on that day date. >> i want to highlight a discussion dennis gartdman on the halftime report brought to our attention. the nasdaq and the orange trend line there. he says basically you have to hold on to this trend line and what he is watching is the friday low, which is 20.40. we did hold that today. >> you could go back and use the lows from august and september they sit around 19 1/4, 19.50. give yourself more room. technology you don't want to jump off the trade too quickly. >> is this a v-shaped recovery or perhaps a w-shaped recovery, perhaps u, perhaps another letter of the alphabet? who knows? dr. doom nouriel roubini tossed out another letter in the alphabet soup that has become our country's economic trajectory. >> the market consensus believes it's going to be a v-shaped recovery with rapid rurnl to potential growth. in my view it's going to be more like a u-shaped recovery and

subpar below trend, that's also the view of folks like mohammed al-arian at pimco. the imf. >> do you follow the lead of the go-go equity markets? the big surjoins us from chicago, and of course we're talking about rick santelli. rick, certainly if you take a look at the yield on the 30-year, below 4%. you would think ha, not so good. but thin take a look at the equity markets, good. >> i think the boys hit it on the head today. it's a liquidity rally in a very simple way. we're going to make the adollar cheaper. pretty much the whole world is buying into that. how can you be short stocks and how can you not be nervous at some point on inflation? but the credit markets don't seem to be, which means the recovery is probably going to be like this. and i'm talking about a c. a c-minus type recovery. guess what? tomorrow in the "independent" london newspaper there's going

to be a story, we've heard it all before, that they're going to get rid of the dollar as a reserve currency in oil transactions. but the names on this, and the story gets more in depth. with stories like this it's hard for me to believe the dollar is going to survive. 2/3 of a cent off its big low for the year. i don't see any way around it. guys, how could anybody short equities or go short commodities if we just don't have any confidence in the greenback? >> rickster, how does c-minus translate? because when you're talking u and v, et cetera, et cetera, we're talking the growth. what does this translate as? >> well, i think what it translates as is there's going to be a couple of quarters of great gdp. we all know what's coming. don't be surprised. but after we replenish and after the widgets are made it's going to be a while down the road. is that going to be the right side of the w? i can't tell you that. but i will tell you this. that on the 23rd when we had that outside day in equities, until we take out the lows of those sessions i think you could be on the sideline if you were

fortunate enough to take some profits in equities on that day. >> you know, rick, having sat next to you and being a fellow drexel guy there's a hint of sarcasm in your voice you have to be short the dollar, long equities. am i correct? did i discern that properly or you really believe that? >> i really believe that. i don't believe there's a substantial backbone to the equity rally, but nobody cares about that and nobody wants to miss the train. and i can respect it. i trade it as well. i think you have to be careful because at some point being long equities at some point down the road you're going to have to dance between the raindrops to avoid getting drenched. >> rick, what's your favorite commodity? you mentioned the dollar. you said immediately you look toward the commodities. is there a favorite commodity you think has the most up side at this point? >> i think it's going to be a tossup between gold and energy. i'd rather go energy. i was astounded at that research that melissa read earlier where they were looking for $1,500 gold. but $100 oil, come on, guys.

if we see $1,500 gold it's going to be $200 oil, isn't it? >> don't you to look at the market right now, forget about looking at it as an economist, you've got to look at it as a trader. you know the federal reserve -- >> it's the only way i can look at it, joe. it doesn't make any sense any other way. >> right. this is basically a taxpayer's subsidized rally p the federal reserve is a buyer of last resort. but they're telling you they're going to rise all asset prices no matter what. >> no matter what. but the problem is the no matter what is a finite amount of time. i don't care what government officials say and if it lasts six months or a year before we get bite on the recovery, i think all bets will be off. >> all right. rick santelli, always good to talk with you. big surcoming to us from chicago. do not go anywhere, lots more rapid-fire word on the street trades on the way including a huge after hours move for newt ry system, the retail mover puzzling wall street. and the seblth famed bear peter schiff is bullish, yes bullish

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welcome back to "fast money." we are live at the nasdaq marketsite. do want to take a check on some of the after-hours movers. shares of nutrisystems moving sharply in the after hours session. you see the spike there. there is news it has reached a deal to sell its meals at walmart. certainly a huge boost selling its meals at the world's biggest retailer. >> unbelievable. i mean, this is a huge story for them. as a matter of fact, it was september 17th that there was an enormous amount of call buying looking at the up side strikes at the time. they already got one move up to 18. stock pulled back again, and now you get this today. this is a big announcement for them. >> big short interest in this stock as well. so people are going to get squeezed probably big-time tomorrow. look for a big volume day. but this stock should continue higher. >> isn't it amazing as an owner

of walmart everything you mention in a sentence with walmart runs. walmart just stays flat. slow and steady. doesn't want -- >> at least it's consistent. >> i hear pu p. >> don't get out of yaurmt. it's one of the best things you can hold in your portfolio as a diversification play. >> let's take a check on other after hours movers. mosaic after hours was a miss. also a miss on the revenue side. 1.46 billion versus the estimate of 1.55 billion. not a clear direction but joe brings up a good point we had a warning out of sector a week and a half ago. >> potash about ten days ago on a friday night. so basically the bar has been set low. this is a terrible report for mosaic right now. no top line sales growth. the ag industry is challenged right now but you know, what it might just be priced in. >> what happened to the argument farmers are going to have it plant, spend money on nutrients and this is going to lift the sector? we were making that argument not too long ago and then all of a sudden it's just gone, poof, nobody can benefit from it.

>> i think what happened is the price of corn, soybeans, wheat, the price of all those commodities, this year they have underperformed relative to other commodities. so i think that's the reason. >> and the stocks have reflected some of that. extraordinary moves to the up side. the pullback now. and like joe points out, maybe this is factored into mosaic, that's probably why the reaction is not as negative as you'd expect. >> let's move on to some bull market or b.s., a game you like to play here on the desk. joining us is peter schiff, euro pacific capital president, author of the new book "crash 2.0: how to benefit from the collapse" as well as a senatorial candidate now. i know you listened to our comments from the big surout in chicago about roubini's comments and that got you fired up. >> the u.s. economy is not recovering from anything. it's actually getting sicker. so it's not going to be a w. it's not going to be a v. it's not going to be a u. it's nothing. there is no letter to describe it because there is no recovery. but there is a lot of inflation. you're talking about what's

happening in the market. 9 market is rising as a consequence of inflation, nothing else. >> right. >> peter, when you say the economy's not recovering from anything, how do you describe an ism at a 32 trough in december that's now showing expansion in the marketplace above 50? >> what we're doing is we're doing more of the problem -- of the same of what got us into this mess. we are spending more cheap money courtesy of the fed. we're going deeper into fed to buy more stuff that we can't afford. and as we're spending this borrowed money, it makes the gdp go up. but look at the debt that we're accumulating to finance that. it ends in disaster. we are just digging the whole deeper, doing nothing to fill it back up. >> all right, peter, want to get back on the rails. really ask you built reason you're here, not just to talk about the economy. but actually you've turned positive or you are positive on an actual stock, which is almost shocking to me. >> i didn't turn positive. i've been buying stocks for years. you know, i've been buying foreign stocks and commodities for over ten years.

i never stopped. >> all right. so which is the big ag name that you like right now? >> well, you mentioned potash just a minute ago. i own that myself. i like that one. i have another one that's similar that i own in my own account is a norwegian company yar international that trades here. if you want to make money as an investor, right now the name of the game is find out what the chinese are going to buy and buy it first. they're going to buy a lot of commodities. their whole population, the emerging markets, not just china, are going to start living higher standards of living. they're going to start consuming more. we're going to start consuming a lot less. somebody just mentioned walmart. sell walmart because walmart's not going to be able to import all these cheap goods from china anymore. pretty soon going into walmart's going to be like going into saks fifth avenue. they're not going to be able to have all these everyday low prices anymore. sow want to move into these stocks and these agriculture stocks, fertilizer companies, any of the major exporters that are going to be feeding into the growing chinese consumer. that's where you want to be. >> credit suisse today talked about simmgenta.

is that a name you're look at as well? >> i own it in my he personal account. i like the stock. >> were you able to see the modes yaik report? and if you did what did you think about that? >> i didn't get to read it. i heard they missed. i don't own mosaic so i don't know as much about it as some of the stocks i do own. but it's in the right sector, it's in the right business. at least that's where you need to be. you have to understand the dynamics what's going on. unfortunately, the u.s. economy is in a lot of trouble. it's in much more trouble because of the stimulus and the bailouts, because we're getting a quarter or two of positive gdp numbers. that is making the situation much worse. so you've got to understand that and you can't be fooled by rising stock prices and realizing that what's happening is the dollar that we're using to measure our stock prices is losing value. that's what's going on. it's not stocks going up. it's the dollar going down. and it's the expectation of the dollar going a lot lower in the future. zblot i got, it peter. thanks so much for your time. peter schiff. >> the investment game is all about chasing return in the

stock market. as stock prices continue to rise, money managers are chasing the performance -- >> trade the market you have. >> but in some sick way we're benefiting from high unemployment. we have so many people out of work. it's not good if you're out of work, and i would never say it's a good thing but that's why inflation has been kept under wraps. >> speaking of unemployment, perfect segue for our chart of the day. this one ace head scratcher. grasso actually was scratching his own head over it to be specific. unemployment rate has climbed steadily to 9.8% past six months. retail etfs also jumping, gaining almost 12%. so that's sort of a thesis that you were just put forth. >> everyone says the death of the consumer is why the market cannot rally back and retailers should be sold. what are we seeing along with the rest of the market? retailers ran and got way ahead of themselves. so what do you do here? i think that's the question. the problem is you can't lump all these consumers into one basket. the lower end, or i should say the 16 to 24-year-olds, they

don't have jobs, but their parents buy them stuff. so that's not going to stop. people will sacrifice for themselves, but they won't sacrifice for their kids. so the kids get the jeans, so those teeny boppers or i know guy doesn't shop there, i don't shop there, i don't fit in those anymore, but i would. buckle. right, guy? >> never been. >> aeropostale. you see these names that will continue to run. >> theoretically, though, if you follow that logic out it would be the specialty retailers that would be even more tightly correlated, would have a sharper rise along with unemployment. >> exactly. >> okay. coming up next, stocks rebounding today from the worst week since july but what lies ahead as earnings season kicks into high gear? we've got your playbook right after this. you're watching "fast money" on cnbc. we're first in business worldwide.

welcome back to "fast money." here's what we've got coming up for you in the second half of the program. we will reveal the secret identity of this chemical company and tell you why now is the time to buy. plus, terranova turns back time. >> i do? >> to steal some words from cher. moment by moment the history of jpmorgan. and how a boom in urban

populations could boost your bottom line. >> the cher song. >> not even a little bit. it's so funny. >> don't want to offend mrs. grasso by saying anything about that. >> moving sharply higher in the after-hours session. right now at the highs of the session. this of course on news that it's reached a deal with walmart to sell its meals in the world's largest retailer. >> big audience for them. you've got to like it. >> rim shot. sorry. big. >> time now to take your position. unofficial start to earnings season kicks off this week with alcoa reporting on wednesday. 72% of s&p companies beat on earnings last quarter. only about half beat on revenues as we had mentioned. will we begin to see some bottom line growth, top line growth as well? joining us dr. j, co-founder optionmonster.com, also brother of pete. tell us, what are you expecting out of alcoa? >> out of alcoa i expect exactly

what they told us last time, which caused the stock, by the way, to go up double digits this quarter. and that was that demand stabilized. to the extent that demand has picked up at all it's not going to be back to where it was, you know, two years ago and so forth. but just this little bit of a pickup for alcoa, like i say, that was a huge drop in the quarter because of it. i like the idea these guys could have some good guidance about demand picking up and that's why i like the numbers going into wednesday. >> you would buy the stock? how would you play that? >> i would buy it right now. i'm going to wait till basically tomorrow and wednesday for me to commit capital to it because i think that's when the institution wills show their hand by getting in there and buying options if they agree with my thesis. same thing in yum brands. and they actually precede alcoa. yum brands comes out tomorrow. and i think with these guys competing against mcdonald's and burger king and all the rest the

fact they've got the exposure that we have that we talk about all the time in china with kfc and all those restaurants, i think also the weak dollar in europe in particular probably plays to their strong suit. the stock was pretty flat for the quarter, only up about 1 1/2%. today it jumped 5%. today alone. so that's a pretty good harbinger for tomorrow, for yum brands earnings report. you guys have been talking with peter schiff and everybody else about ag stocks. monsanto comes out along with alcoa on wednesday. i like that one. i have talked a lot to senior folks at monsanto recently and what i heard from them is china surprised them. china came out and didn't stab them in the back, i don't want to say that, but definitely shocked them with the cutbacks so dramatically for monsanto. that's why they lowered guidance and so forth. that's already in the stock. so i think that could be some decent up side for the stock when they actually report wednesday. and then j.b. hunt might be the

outlier that could really -- would you believe this stock's up as much as it is this year? i mean, the shippers in particular have not been where it's at. but if you look at j.b. hunt, very efficient company. it's up near the 52-week highs. in fact, only about a dollar or so from the 52-week high. i think that is going to be a tell into the christmas shopping season as well as the very start of this quarter. >> dr. j, you had flagged for us nutrisystem, and it is an active stock in the after-hours session. would you be a buyer either of the meals or this stock? >> i need to be a buyer of the meals. and maybe there's a lot of us that shop at walmart that should be. but i think obviously the exposure here to walmart, somebody thought something was coming almost a month ago, as pete said, and september 17th, the day before expiration, those options doubled. know they get a second shot, and it's even through those old highs, pushing through toward 19 bucks right now. unusual volume in the after hours, and unusual option volume

a couple weeks ago. >> you don't need them stinking meals, dr. j. looking pretty good to me. >> bless you, mel. thank you. >> they have nutrisystem for men. fyi. >> i'm down to a 34 waist there, girlfriend. i'm back to my high school -- >> you want to button the pants. >> button up. >> all right. enough takedowns. >> and the shirt tucked in. some days i could be 32 if you want to get down to brass tacks. >> next week on "fast money" we're pulling back the secret identity of some of our show's favorite stocks. you might be surprised at the alter either of some of your favorite names. >> clark kent and superman. bruce wayne, batman. pete najarian, commander planet. exceptional men with even better superhero secret identities. sometimes it's no different with stocks. investors will often beat up on

the bruce banners, not knowing they're about to awaken a market-busting incredible hulk. take dupont. a staid 200-year-old company based in dreary delaware. nowadays when investors think of this dow member, they think just a giant maker of chemicals. and they've put the stock down big in the last 12 months on concerns over the global economy. but pete knows dupont's true alter ego. ♪ you'll never guess my secret identity ♪ a pioneering that is quietly revitalizing the american heartland by produce iing supersedes, more administrative to disease and weather. >> petey. >> you look at dupont, you think chemicals, right? i mean, we all think chemicals. it makes total sense. dupont chemicals is the name of the company for years. but this is an ag play, folks. 29% of their sales comes from the ag. it's that pioneer seed acquisition in 1999. $8 billion in revenue every year. 29%, like i mentioned, of the

revenues. 50% of that goes to the seed area. so when you really break it down, 15% of all of their sales right now come from seed. that gives you a little idea. so all this talk, there's a perfect segue from peter schiff and all the rest. all this talk about ag companies and all the rest. this plays right into dupont. lastly, it's a solar company. they talked about their solar exposure and the ability to grow over the next couple of years by 2012. they expect that to be over a billion dollars in revenue as well. $30 billion solar industry going to a $70 billion solar industry in not too many years. so there's a lot of growth prospects for dupont right now and a 5% dividend yield. >> coming up next, peabody, dow chemical ls all pushing higher by 5% today. what was behind the move? can this momentum did not? we've got the trade next in "pops and drops." >> "squawk box" rewind. >> saying no no, no, we want long term now. that's what traditionally and historically has always happened in a bottom. >> we're seeing activity.

that's the positive sign. >> the main question is the shape of the recovery. in my view it's going to be more like a u-shaped recovery. >> we've seen banks that have been paying back the tarp money. >> i think it's extremely unlikely we're going to keep any kind of equivalent return let alone a profit. >> "squawk box," where business turns first. weekdays 6:00 a.m. eastern on cnbc. it's gmc truck month. shop acadia. the 8-passenger crossover from gmc. with the safety and security of onstar, standard for one year.. ...and 24 highway mpg that beats any 8-passenger crossover. step up to the best. it's gmc truck month. get 0% apr for 60 months or $2,500 total cash back on 2009 gmc acadia. see your gmc dealer today. (announcer) we understand. you need to save money.

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time now for today's edition of "pops and drops." kick it off with a pop for

peabody energy. >> "barron's" article really got everybody hyped up including myself. coal demand increasing and maybe coal demand's been a little bit weaker over in china but it's still far xeegd last year. big pop today for peabody. >> general dynamics. >> upgraded at morgan stanley raised their price target to 80 from 52. ten times forward earnings it's cheap still. >> pet smart was a pop. >> upgrade probably more to come. i'd still be a buyer of petsmart here. >> also a pop for the brazil etf. ewz. pop of 3%. >> high for the year. 2016 olympics. no reason to get out. brazil looks great. >> and a pop for the twins. the minnesota twins. the twins back in the game after beating out kansas city yesterday, coming back from seven games down in the standings. minnesota moves on to a one-game playoffs with the detroit tigers on tuesday night for the a.l. central title. >> this is a pop for the entire minnesota right now. you've got the monday night game

tonight and now you've got the twins tomorrow. >> giddy-up. >> metrodome. >> pop here for dow chemical. back over to petey. 5% move. >> big move today. and you know why? because the solar, once again, just like dupont, we've got a huge explosive industry. you've got to like that one. >> pop for blackstone. up 2%. >> pedro was talking about it earlier, busch gardens and all that. i think it heads back there. >> talk about finding a silver lining in things, pop here for financial calamities. according to new research from the university of michigan the average life expectancy unexpectedly tends to rise during economic downturns. in fact, during the great depression u.s. life expectancy increased by 6.2 years. researchers say this phenomenon may be due to the fact that there's more sleep, less work, and less money to spend on tobacco and alcohol. >> vices. >> vices. so to speak. pop for downturns.

coming up next, if you think new york is crowded, get ready for the move to the megalopolis. cities sxem engineering markets are being flooded with tens of thousands of new people every single day. the cities themselves getting smarter to deal with the influx. we'll tell you how to trade it next. announcer: in today's markets

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welcome back to "fast money." we're live at the nasdaq marketsite. tonight we unveil a brand new segment which we are calling "turn back time" with terranova. joe takes us back in time to see what the chart of jpmorgan has been doing to make him buy that stock. >> this one lines up perfectly. you've got a combination of technical and fundamental factors that really allows you to get into a low-risk trade. if you look at the first chart here, go back august 17th, you have a low of 40.71. if we could move to the second chart you're going to see a low on september 2nd of 40.75. that's another low that's higher than the august low. go back to friday. friday we break both those lows. go down to 40.53. what should happen? the stock should get some downward momentum, continue selling and sell it below there. but it doesn't. the stock reverses, goes higher,

sells at 41.86. coming in today that's a great point of reference to use the close from friday. what do you get this morning? that goldman sachs report. great fundamental report talking about large banks. what's the best bank out there? jpmorgan. you buy the open, the open is 42.45 to 42.50. you use a stop on friday close at 41.86. you never have to look back. stock goes out trading 43.85. you take some off the table, holded the rest. doesn't get any better than that the way it lines up technically and fundamentally. >> got it joe, good job. on "fast money" we're always looking ahead to the trades just beyond the horizon. and an urban overhaul is taking place in cities across the globe. take a look. >> despite the hustle and bustle, here in the heart of new york's times square today this city's crowds are more tourists than strivers looking for new life. and while the big apple the growth spurts are cooling off the move to metropolises in the emerging world is just heating up. ♪

♪ come on, baby don't you want to go ♪ every year the earth adds seven cities the size of new york. every day 180,000 people migrate to a city. and every minute during the next 20 years 30 residents of india's rural areas will leave the outskirts for an urban center. as the globe's population makes a mad dash for the megalopolis, getting reservations at nobu is going to be the least of the problems. transportation, electricity, water supply, and waste removal. the present-day infrastructure in beijing, new delhi, and mexico city can't handle the crush. and that means cities need to get smart. ♪ take me down to paradise city ♪ ♪ where the grass is green and the girls are pretty ♪ >> from intelligent electric grids to maximize efficiency and minimize pollution to smart roads that talk to your car and control traffic low. to apartment buildings that generate their own food supply. the multibillion-dollar buildout is already beginning.

here's how to trade the creation of the city of the future. >> guy, kick it off. >> walter industries -- walter energy. petey mentioned it before. that's the downstream play for this whole buildout thing. we can talk about engineering stocks till we're blue in the face. they're fine. but walter industries, the old walter industries, now walter energy to me sets up better than all of them. valuations are fair. i think the stock on pullback you buy. the last one proved that. wlt gets you done. >> j.t. >> infrastructure technology. the template of new orleans. think about how re rebuilt that city. it's all about technology. and look at the semiconductors, knowledgeus, teledyne, they are going to be an integral part of building anything toward the future. >> grasso. >> i'm going to go with ge on that play. >> parent company of this network. >> i've got to tell you i haven't been on board with them. i'm on board with them. they're in 200 countries. solar play is huge for them. >> deutsche bank upgrading the price target on that to 17 bucks today.

petey. >> energy industry and then you get to the smart grid buildout. cisco's the best play i can find out there. i like the partnerships they've got with ge, with oracle. that is end to end infrastructure buildout. i love it for this market play. huge balance sheet. you've got to like everything going on already. this is just a little cream on top of the cake. >> if you like this taurks do not miss "the business of innovation" as they explore the unprecedented global urbanization that is changing cities throughout the world. 8:00 p.m. eastern time right here on cnbc with maria bartiromo. we've got final trade right after this.

let's see that poll. tonight's question is are you a buyer of alcoa before earnings on wednesday? we've got two choices for you, surprise surprise. a, yes. or b, no. log on to fastmoney.cnbc.com right now, tell us what you think. also quick programming note before we get to the final trade. tonight on "the kudlow report" do not miss republican senator from oklahoma, senator tom coburn. dr. tom coburn weighing in on obama's health care plan. final trade now, j.t. >> national oilwell. nov. >> guy. >> blackstone still has some room. >> aeropostale. >> petey. >> dupont. >> giddy-up and up.

i'm melissa lee. see you you tomorrow for the halftime report 12:45 eastern time and again at 5:00 for more "fast money" right here on cnbc. we're first in business worldwide. what the charts are saying before the numbers. plus, pete reveals a stock with a secret identity. and could a walk down the aisle help beat the recession? "fast money" tomorrow on cnbc, first in business worldwide. ♪ yes, you're lovely... ♪ what do you think?

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i'm jim cramer, and welcome to my world. >> you need to get in the game. >> firms 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, and i -- >> "mad money." you can't afford to miss it. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i want a few more days like today. my job, not just to educate, entertain. call me, 1-800-743-cnbc. how can we rally 112 dow jones points, how can we pick up a percent and a half on the s&p after that