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live from the nasdaq marketsite, this is "fast money." apple reveals its i pad, but are traders buying it and will it be a game changer for the stock? steve jobs may have drabbed the headlines, but did he do enough to save tim geithner's job in gary xhin ski is back at headquarters. later on for the president's state of the union, we've got the mood tonight, but first let's start right here, peter, are you buying into all of the hype surrounding the ipad? >> you have to be impressed with everything including the presentation from steve jobs. that's what stole the show. the oohs and the ahhs when people finally got a chance to look at this ipod -- or ipad product really excited people and he just continued to tease us throughout the whole presentation about the dollar amount. what would it be? all of the speculation, would it be a $1,000 item and that would scare people off? what kind of price will it be

going for? the most impressive thing is when they did come out with price, that was a price that, by the way, it actually a little cheaper than the nexus one unlocked. that's exactly what google needed to do was understand price point and understand presentation. that's where steven jobs is media king and that's why it was such a monster day today. >> johnson & johnson issue let's get it out of the way. >> you heard what i said! you exactly know what i'm talking about! everybody out there knows what i'm talking about. >> explain to america why you said church and dwight? >> church and dwight makes many products and i'm sure you're familiar with back home. the name is sketchy, but the price action in the stock was anything, but sketchy. i looked smart earlier in the day because apple really liked like they wanted to break down and then it rallies 10 bucks. i will still say i thought the price action yesterday and the trading volume indicate weise might have a short-term top, but today if you were short you were smoked like a tiparillo.

>> now in hindsight it seems they were started and fueled by apple and they really did a masterful job of setting up market expectations for one thing and then completely turning them on their ear. >> take a look at this intraday chart. this was interesting that he did not reveal the $499 entry price until way into the presentation. you can see pretty much when the stock hit the lows, that's exactly when we saw the price unveiled. that is no coincidence. >> the price is impressive. it was probably 50% less than a lot of the analysts thought it would be so that's very cool, but if you look at the price action, go back to the trading aspect, it's the real thrust, i might -- of the scotch, was after the fed, the fed, thchs about a macro call to market call. apple is one of the leading players for guys to take momentum on in addition to the fantastic fundamentals. it was about the fed today and the macro stuff. that's when the stock was allowed to take off despite everything they did for us today, apple was very good.

>> who does it hurt the most? now that we've seen its feature, do we think this is the kindle killer that we had speculated it might be? >> i don't know why it wouldn't be. everybody here on the desk for the most part has a kindle. i don't. >> not, waiting for a tablet or some type of a device that somewhat like a kindle and a little bit more and this is exactly that. you're talking about a slight mac killer in its own way, but i don't think it impacts that because it's not quite that level and it doesn't quite have the sophistication of power. i really like the space that they're in. he immediately addressed the net books and talked about power. he talked about how much more this is different, a game changer relative to a net book and that's what this is. it's an iphone on steroids. i think it's a very cool product. i don't have an iphone and i don't have a mac, but i will have this the day it comes out. >> 5% of revenues give or take, but the last their 25 to the upside at least in december was a lot of it seemed to be kindle

based in the stock. now we might be more realist being levels for amazon. tomorrow's earnings will be fascinating. i still think it has a chance to trade down to 106. i think some other people have different views, but i think that's your entry point in amazon and in the short term that's what could be heard. >> i was talking at mark at citigroup about the impact on amazon, he's estimating 5% of revenues when you factor in kindle plus book revenues for amazon this year. if you take away about half, that's a 3% hit to the stock, but good point, guy, it's been down about 10% here. so the earnings tomorrow will be very interesting to see if they comment at all about the impact, if at all, about the ipad. let's show you a bit of footage because a lot of you were at your computers and you were watching the hearings on the hill and did not see -- >> i was! >> and did not see the actual unveiling of that ipad, take a look. ♪ ♪ ♪ ♪

>> it looks like charles -- >> we're joking. i was going say! >> stark resemblance there. >> right. exactly. it could have been steve jobs coming out with that ipad. >> and the possibility what adds to this whole thing, the at&t, the $15 a month or the $30 a month for unlimited data, it does tell you they understand their audience and they understand price. that was probably as important as any factor about this release was knowing where the price would work, knowing where people would want this particular whatever you want to call this. >> ipad, say it! >> no, but where it fits in. it's want a netbook. it's not a phone. >> that's the whole point. >> that's what apple's doing a great job of. they've made us all realize that we can truly have everything on one device. the iphone is my wife's favorite thing in the world because she's now -- we don't even need a camera anymore. the reality is people will start to use it. pete, your point is a great one. you don't own a mac and don't

own an iphone, and it gives new buyers and that's what's cool about this. the price point is what does it. >> i'm sorry. >> going back to that, when they first came out with the iphone a few years ago and when we sat at this desk and i was pounding the table and i said it isn't about the iphone, that turned out to be wrong, the iphone did add to the bottom line. all these applications and the money that's generated, it comes down to the growth of the mac. this is another feeder into the mac. >> if you're saying you don't have a mac and you wouldn't need to buy one. >> if you want more power and if you want to do more then you would step up to a mac. i'm not your normal buyer, i would say because i've got this crappy nokia once again. >> hey, they report tomorrow. we've got to talk about that. >> come on. >> that nokia i threw on the ground that was a $500 plus phone and now look at this. you've got the tablet for $499, $30 a month from at&t if you choose to go there otherwise you have the wi-fi at $499. all of that makes this a much

more interesting product. >> i was talking to jean monster right after the release and he said that $499 even at the cheapest price point is still going to be viewed as a luxury item and the price has to come down for it to go mainstream in 2011. >> let me a question. >> how many devices can a human being? at a certain point, where will you shove this thing? >> i only have one phone. one device and that's it. >> you said about the kindle, too, though. as far as price point you still have to look at the apple. you can still buy a dell that will virtually do what the apple product and the mac will do and people step up to the mac. this is another product, instead of the netbook, you'll step up if you're willing to pay up. >> are they behind the netbooks? a lot of people jumped up and bought netbooks. you don't need this if you have a netbook. >> is the netbook cool? >> i wish i had an ipod. >> the netbook buyer is not someone who said that's it, i've made my expenditure in the space and i'm not coming back to the market for years.

i don't think that's who the netbook buyer is. >> i don't know who the netbook buyer is. i don't know why i bought one. >> apparently it's not him. >> let's talk about some of these derivative trades and immediate movers off of apple's latest unveiling. for an outside of the box take for other stocks that will move long-term off of today's news, and we head to headquarters and gary com inski is manning the desk. >> i only have one device so i'm not the typical consumer and let's try to bring this back to how do you make money because portfolio managers have been thinking about this tablet, the ipad and they've been thinking about this for weeks in terms of what they've been doing. what i think you've gotten from it amazon and what you got from apple today and this is what's in steve jobs' mind in terms of the master plan. it's about direct connectivity to the customer. that's what amazon did with the kindle, and i think ultimately they did it with itunes and they did it with the music and what they're going to do is they'll disintermediate longer term search engines and they'll know

what your preference is in terms of what you're reading and what you want and longer term this is another negative for google. it's another negative for yahoo!, and it's another negative for bing because you will have direct connectivity. >> so tell me, gary, how you think that would work exactly? how long does it take, then for them to get in the middle of that relationship and take search share away? i think what the master splan that you want to get people to buy product directly from the apple ipad store and as you build your customer databases and you see what the customer trends are and you're sending e-mails directly to them because you see what the buying patterns are, they like to buy books related to this or they like to buy music related to that. you take away the need for search to drive product sales and that's the master plan. the master plan here is to have direct connectivity and if it's a two-year plan or a three-year plan, money managers and portfolio managers will be thinking about that in the next two or three months and that's

the out of the box way one should approach this. >> walk us through your thinking from verizon and at&t. i would imagine that's a positive for at&t, at least that's what ubs is saying today. >> a couple of weeks ago i made the point why i was negative on both at&t and verizon, longer term. the stocks had been very perper formers over the last couple of weeks and tomorrow you had the verizon poor earnings last week and you'll have sloppy numbers out of telephone tomorrow. yes, it was good today that telephone and that at&t will continue to be related to the apple world, but remember, there are two things that i don't like about the stocks longer term. interest rates when they go up will hurt these stocks. yes, they are owned by people who own them for the dividend income. number one. number two, the cost of customer acquisition continues to be out of control. that's not going to change. these two companies will keep fighting each other and they're going to keep fighting the cable companies and they are not stocks or they'll give you

relative outperformance for the next five years. >> one quick question for you. >> what did you call him? >> skeet. >> i like that one. >> thanks. that's a good one, right. >> i wanted to make sure it wasn't a curse word. >> think about the mutual fund hat back on and at what point do you start layering to a google short if what you're saying is correct. if you put that into place, is there a place where you would start getting short? ? it's a hard stock to short because again, it's a name that the index loves. i'm not technically where you sort of break down, but the fact that the insiders and karen, you pointed out correctly last week that the amount stock being sold and the amount of stock being sold over a period of time is not that material, but psychologically, the fact that that was put out after sloppy earnings and with concerns ahead, i don't think there's upside risk in the near-term. i just can't see how google will

outperform over the next several weeks. >> let's stay in this space. how about tomorrow? we have nokia out and the other part of this whole trade is going on with the handset makers. the hardware manufacturers, i just don't have the feel, tim. i think that what crowe do know is if you want to be in wireless. you have hit this wide quell over the last several weeks. the safest way to play the wireless phenomenon is to own the tower companies. the one thing you know is the tower companies own the space and they have the assets and certainly if you watch any of the tv commercials you know it's about saying to the customer that you can't deliver the services after they pay. the safest place to be in the wireless space is the tower companies. >> we'll hit you back later on in the show. keep working the prop desk for us. >> the skiers -- or the key. >> it's not -- it's just ski. let's clarify that now. >> you're an owner of google.

do you think that is a long-term threat to goog google search? >> if it's so, then you would have to say, yes it is. i don't know that they don't have access to the customer through all of their other products. ? that is a very, very, very formidable position that google has to break into. so, i don't know. >> we do have a fast message into our inbox. scott from palm beach, florida, hello, scott, writes what do you think of arts' new level and what do you think of the talk of a takeover. >> apple just hired a gentleman named adrian perica as their dedicated acquisition specialist. he comes from goldman sachs. you heard a lot about goldman sachs. everybody comes from goldman sachs according to congress, so this cat comes from there as well. you've got to believe that apple is going do something. erts could be an interesting target. the stock has vacillated, basically, it's not a rich valuation. it's okay here.

>> let's talk about amazon. we were talking about amazon in light of the ipad launch, but it is going to report earnings after the bell tomorrow and that is one report and we'll be all over here on the desk, and guys, what do we expect to hear? karen, i know you've been a skeptic of amazon. >> i'm not a skeptic, it's a great company, i would think they have great earnings and it all just comes down to valuation and i can't see how huge growth is built in and it's cheaper now than it was at 145 and it's nowhere close to cheap, still very expensive. >> the street seems to be gaining more and more confidence, regardless that the stock pulled back and gave a few other folks reason to raise their price targets and they talked about market share. some of the folks pointing out they're trading at 32 times forward. it is a little bit high and pricey and they are the big dog right now in the space and i think these earnings tomorrow will be enlightening, either they'll produce finally what we're looking for, a monster number or else the stock does have downside and guys talked

about it for a while. there's plenty of room underneath 120. they guided higher for this quarter. that last quarter was very good by all standards. let's see. it is very hard to be a trader in the stock and say i bought amazon at 145. at 122, what are you doing? you can't be a trader and hold the stock the entire time. i still think -- >> this stock has been for traders. come on, from the valuation, that's a different story, but if you look that the chart. this chrt is somewhere in no-man's-land, it's in between the 50 and 200 day. i don't think you want to own it if even if you are under 100. some of the tech bellwethers aren't trading well and that's a big day for the overall tone of the market. that fed was important for the overall tone of the market. without tone amazon doesn't look great. >> the fundamentals, and it seems like it's got a growing

hole there, 40% is the old type of media, the book, the music and netflix can stream it to your tv straight or get it through xbox. it's a hole that has been growing. amazon was at 90% with media sales and now it's 40%. they're looking for 60% year over year increase in north america. if we don't see that this stock is going to sell off pretty hard and that will be an interesting thing to watch. meantime, let's go into the after-hours action. we were watching qualcomm here. moving lower, sharply lower, this move is 9%. qualcomm issuing a downbeat forecast. pete you, you said you were looking at an impact from intel? >> i haven't had a chance to see intel since this reaction, but they are competitors so maybe this isn't so bad for intel. it was having a minor pullback. this stock has pulled back dramatically in after market. a lot of folks were figuring that qualcomm was going to be providing the chips into this new i pad that everyone is so

excited about. it looks like apple hasst own chips in here. that could be part of the reason why as they forecast in 2010 they pulled back on the revenues and down a little bit from where the expectations were earlier and that's got people concerned for the stock. >> the eps beat revenues as pete pointed out, the guidance for the last quarter was lousy and the guidance for the full year was in line. the market has not given them a pass right now. they've taken them out of the woodshed and it's a name i've liked and clearly, i'm wrong. >> you talked about impact, and how about the impact for the mobile phone makers. their demand outlook is not as good as expected and what does that mean for people like nokia who will report tomorrow. a not so much, i think necessarily into rim, but the impact of call kwom is on the handheld maybes and they've dropped two in a row. the margin will be between 12%

and 13%. that's why i think you can own it. at 12:50, that's the bottom and the range. the stock's at 1260. i don't think the down side is significant and this is a good trading range. >> if you've been waiting on qualcomm, now is your opportunity to take a long look at this stock because this stock was trading at $48 and $49 and now it's at $43. i think if it can get toward 40, and it's like apple, you never think it would get under 200. it was under 200 again today. i think before it comes out there will be enough movement in the marketplace that apple potentially could drop below 200 again before the release and then people as the release comes out, then i think you will actually see another spike back for the stock. >> if you were to buy qualcomm and say it gets close to 40. are you buying it just on the hope that the market moves higher in general and what's the specific catalyst for qualcomm? >> the handset sellers is better than all of us were anticipating where it would be and the fact

that they've gotten so many patents to the manufacturers, but they do y2k that they gained market share. right now the stock is aside itself. >> that was concerning the quarter here and the sale of lower-priced phones in emerging markets and that's what got this this time around. >> i was talk to the the cto of hewlett-packard. the qualcomm chip goes into the hewlett-packard type devices, not names, pad. >> hewlett got it right. >> qualcomm, they're in much more than anybody has any idea and the 3g buildout in india and china is another factor that could be another growth for driver as well. >> did you read jane wells' blog? >> she's my girl. >> if you haven't read it, i urge you. it's all about the ipad ask how it reminds you of other things other than an electronic device? >> the apple, apparently. if you're buying an ipad with a lot of power would it be a max

ipad. if you fly with it, is it an ipad with wings. >> we'll leave it there. leave it there. coming up next, a top bank analyst with goldman sachs is on the cusp of making a major move. you need to hear what he has to say before you make any trade in that stock. here's what else is coming up on the show. the heat is on. washington hitting back hard and making the market more skittish every day. we help you avoid the radiation from a toxic political environment. and with all of the apple hoopla and hammering from d.c., don't forget big earnings are still on the way. we rack them and stack them to give you the trade when america's post-market show continues. music plays

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like the obfuscation and to top it all off the disclosure was not there and that is just inexcusable and it makes me doubt -- it makes me doubt your commitment to the american people and i think the commitment to goldman sachs truched the responsibility that our officials had to the american people. >> that was just a snippet of the very fierce grilling that

secretary tim geithner took on the hill today from congress as he defended his actions surrounding the bailout of aig and whether or not there was, in fact, any sort of cover up. what did you make of the testimony? it's interesting that the markets did not really move on the back of any of this, no matter how intense the grilling got. >> well, the goldman sachs move, if you watched g.s. >> that's true. >> it broke throughout 150, geithner got up and left ask goldman rallied pretty much the rest of the day. so the markets definitely moved. everybody wants their sound bites. i felt bad for tim geithner. i think he's a stand up guy. i think he did the best job he possibly could have. going after him now i think is complete monday morning quarterbacking. >> have to success that. i know this guy lynch was outraged and i was outraged at some of the idiotic things that lynch said, actually help he demonstrated no understanding of the capital markets at all. he referred to the bail stearns bailout of 2 cents on the dollar. i don't think he knows the

difference between debt and equity, i personally was embarrassed for him. he's using geithner as a punching bag just like he's saying to get whatever he needs for his sound bite for the next election that he's probably going to be running. that was just ridiculous to me. could he have done things better? no doubt. in that crisis, though, it's really impossible what you would have done, what anyone would have done in that same scenario. and with no sleep and chrissis after crisis after crisis. he was trying to save the world and could he have gotten a discount? probably. >> it was probably the best use of the monday morning quarterbacking which was to say that it's easy to say that now. that was difficult, but i think the real key for geithner was the fact that he was a much more confident and a much more informed treasury secretary today. what i think happened over the last couple of weeks, the inconsist businessy of the obama administration has been very evident, and i think the outlying comments by geithner

about the bank plan showed just that. i think he came in today and he was briefed. he was much more confident and was much more in line with the rest of the administration and that was for the markets. >> that was the price action for the banks and goldman sachs. the willingness of investors to step in and seeing this testimony and the heatedness of it to buy a name like goldman sachs that has been beaten down. >> absolutely. that was a huge point when you watched goldman sachs make the big turn and you look at the entire xlf and we started to rise toward the end of the day. the banks themselves were the one area where you found some support today as well as the s&p 500 hit right on the level of support and the guys near the pits near the 1082 area and we found support and sarted to rise off of that. so there are still technicals that people are following closely. all of the put buying in the xlf, hundreds of thousands over the last couple of trading days and that's starting to take effect, too, slowing down the selling in some of those banks. >> let's talk more about the financials here, of course.

tonight, the state of the union address. will the president ramp up the rhetoric against the banks and what form will the volker plan start taking? let's break it all down. here with his analysis is paul miller and the top-ranked financial analyst and joins us on the fast line. paul, you are an advocate of buying banks on the weak business because of all of this political rhetoric and let me play devil's advocate. we don't actually know what the impact on the businesses of any of these banks will be so how can you actually say whatever price it is, if goldman sachs is trading down 10% or whatever that that's not a fair valuation. there are too many ifs. >> we don't have any details about this plan and that's the big problem. this was hastily put together after the massachusetts vote last week, and i just don't think a lot of this thing will go through. i don't think the obama tax will ever go through and i definitely don't think they'll limit the size of banks. what wall street has to do when they look at these banks is realize that this is a long process and the banks will fight it and maybe the props get

pushed back a little bit, but they're not going eliminate prop trading and they're not going to eliminate the size of the institutions and i just think -- i just don't think it's that big of a deal. >> it will abe long process. this could go on alliary. so as a trader, how much is this over? i think the banks would be very happy to accept the bank tax. it's the challenge to the business models that they can't live with and that will probably take at least legislation to get through and don't you think this pressure will be on these banks for a long time? obama tonight will step up with the populist rhetoric and there's no escape. >> the issue of why do the big banks trade down and you put a layer of uncertainty into the banking world and that's exactly right and the layer will be there for a very long time, but our thesis is that it's just not going to really meet reality and therefore, what's really going to drive these banks is earnings and where the credit losses are going to go and that's really going to drive, and i think wall

street will get bored with capitol hill and all this regulation. the key point is all you're seeing is a bunch of headlines and the real regulation will come from the regulators underneath higher capital and higher liquidity and i think these big guys will struggle with all of that. one of the things we like is the regionals and we don't think they'll have the higher capital tax and the higher liquidity tax as you pointed out. there will be political risk with these big banks. >> paul, the banks were going lower before obama ever opened his mouth, frankly. if you look at goldman sachs that's been going straight down for a couple of months and j.p. morgan was headed lower after they reported earnings. does that give you cause for concern here? >> well, goldman sachs had a heck of a year in 2010. a lot of these bank his a heck of a trading year in 2010 and 2009 is not going to be as strong. so i think you're seeing some of that wane on those stocks and they're still relatively inexpensive when you look at those things historically. that's where some of the pullback came from, but we still

think it's cheap. >> what are your favorite names and where? >> we like the regionals, zion, regions financial, suntrust, fifth third and they're the companies that we like and are trading closer to book and they're not going have the overhang in regulation on top of that and if they start to earn money, these guys don't start to earn money, they will start trading closer to 1.5 to 1.6. >> paul miller of fbr. we want to pull gary back in because we have a viewer who disagrees with his analysis here. gary, are you there? >> i love people that disagree with me. that's why you love us. >> don't ever forget that. >> bruce from borne, texas, writes counterpoint to cam insee's analysis, i did like safari with all of apple's products. instead i will buy an ipad and install google. >> again, this is the way i look at this is this is what will

play out over the next two to three years and the management will be positioning themselves over the next three to six months. i think the plan with apple has with its ipad and that's what the big strategy is and it will have direct connectivity. and while there will be people that want to have their own search engines in terms of how they utilize the internet. at the end of day i see what my kids do with apple and what the next generation down was and they're owning the connectivity directly. geithner should never have gotten the job. he was way too tainted in the first place. the one thing i will tell you is this man will resign for family reasons, personal reasons some time before the summer and it will be good for stocks. it will be good for equities because he's had a taint on him right from september, 2008 and should never have been given the job in the first place. >> i don't agree in the geithner thing, but it doesn't matter. going back to google --

>> you don't agree on geithner? >> i don't agree that he never should have gotten the job in the first place. >> we were supposed to have a fresh start. this was not a fresh start. >> we're not talking about google. i want to go back to google. are you saying that this valuation for google, if the looming threat is really up there as you say, what would you do? >> again, i don't have a position in google. i'm not long a stock. i'm not short the stock. if i wanted to own this stock, as i have no position, i would be concerned about what -- this is a search company. that's what this is. they've tried to find other ways to monetize their business. i look at today's announcement as they're going directly after search so i would be concerned. >> gary, thank. we'll check back with you later on. coming up next if the market volatility has you feeling queasy, we go outside the box to protect and profit off of dommestic and global risks. back after this quick break.

after-hours action in the cubes which will indicate the nasdaq's open tomorrow. we are seeing pressure compared to where they went out today.

we have to keep in mind that we're seeing a big drop in qualcomm shares in the after-hours session. at last check they were down 9% on its downbeat forecasts so that could be an impact on the semiconductor index and in turn, on the techtrade overall. time now to take your position on the tech name that could have an impact on tomorrow or the next day. microsoft will take the headlines tomorrow. after the bell i spoke with heather bellini and she remains bullish, a microsoft bull and thinks street estimates for 2011 are, in fact, too low. >> we think the biggest deviation right now between us and the street is that we think people are underestimating the average selling price increase that microsoft will see with windows 7 as well as the actual pc cycle itself. >> heather bellini is a real microsoft bull, but karen, you've been a holder of microsoft's stock for a very long time. >> yes. it hasn't done much for you, has it? >> it's been a wild ride, but net-net, not a lot has happened, really. >> but you know, i'm sort of

optimistic and i think their last quarter was good. i'm optimistic the valuation is still attractive and that's the thing i like about it. the valuation's good. >> you're a fan of debbie's. >> it's about valuation and it's about the balance sheet and it's about the potential growth they've got in this pc cycle. i think all of those things do favor microsoft. this is a big battle ship and we were talking in the green room earlier about the idea, and it's a place for j&j and you feel comfortable with the stock and it will not have the bottom fall out and by the way, bing, they're up to 11ers and they are showing growth there and we talked about search last night with yahoo! , google and the rest of that and that's another source where you will see revenues and the display ads there as well. everything right now from microsoft's perspective is a very safe play, limited upside, though. >> you hope microsoft bucks a trend because i happen tonk the quarter will be okay as well and what's happened in tech over the last couple of weeks is good

quarter and initial pop in the stock and it holds off. frankly, that seems to be a running theme right now and that's exactly what will happen tomorrow. >> you're buying it about 7% down off the recent highs and you're buying a valuation that next year at 14 times looks okay for this company. so i think this is a year where long and short works and i think microsoft is the classic case of a company that has its best news ahead of it and i don't think it's gone bananas on the stock, these guys have more down the pipeline. >> is there a fear, pete, that maybe this is ibm? it's a giant company that does well and it's slow and steady. >> ibm went to 134 and literally pressing on 52-weeks. this stock is actually, as tim points out, off 6% and 7% off the $30 level and i feel more comfortable, versus the ibm that exploded into the number. let's move on here with tech earnings season nearing an end and making money in this market will get a little bit harder

with the outside the box game plan to protect your profits and we go back to the prop desk and back to the ski. what are you looking at? >> the market is probably not going to do anything for the next couple of weeks and certainly in the next month. so there are three things you want to do here. you want to do trade and bear trades and you want to be long something and short against it. if you like something long, even when insurance options are expensive, buy yourself protection because you don't know what's going to happen and don't ever forget in a period where things are not certain like you have right now, cash, three things to do in a sideways market that will protect you because remember, sometimes it's not about making money. it's about not losing money to protect your portfolio. >> two things you just said that i have trouble with. one, insurance is expensive. it is very cheap here and two, the market will do nothing in the next two weeks? we've gone from 1080 -- 1180 to ten 80. we have enormous policy at risk

ask do you think the market will do nothing? >> tim, three weeks ago i felt that the market was going to go down during earnings season. i did feel that way. it traded it that way and it happened. i just think right now you'll have the earnings digestion and the gridlock in washington and really just nothing to make a move either way up or down and yes, i'm just saying in terms of insurance, maybe insurance is not expensive and there are people that figure if i want to buy something long, why do i want to protect myself, and i really take it back to tim -- i mean, pete. pete, if you want to be long goldman sachs right now, there are ways you can participate and protect yourself, right? >> i was looking at this, as a matter of fact, when the topic came up and i was looking at the call spread out in april and that would give you the ability if you bought in the money call and selling the 165 strike call and it would cost you $11. you would pay $1, $1.50 from where the stock was trading and the stock was trading at $1.50,

you still have the downside risk and you limited yourself, and if you're right, gary, and if the stock can move to the upside, not a substantial move to goldman sachs, but between now and april this stock goes somewhere toward 170, you're capped out, but you made 120% on your investment. >> you don't make that 120% until the last day. >> you'll make 100% going in if that stock goes to 170, let's just say, even between now and then because the volatility will come in. >> are you looking at the trade? >> no, if i was lucky enough to have this trade on, i would flip out long before it knot up to there, but if it got up to 165, i would look at it and say time to take this thing off because i think we've got big profits. >> sky, we'll see you later on. thank you. >> all right. we have another antidote to this week's volatility and that could be health care. the sector has become the top performer year to date with

gains of 1.5%. how do you get in on the ak. what sorts of names are you looking at here. >> think you can come back to a name i've owned for a long time. >> pfizer, i've had this thing since last spring and i like this name. we talked about the fact that they've started to bring back some of the dividends and this is an entire sector filled with decent dividend yield stocks and fairly low volatility stocks and you look at j&j and gilead had a blowout number last night and amgen just continues to be the stock that works. it's starting to move now to the upside and they had a solid number and not a blowout number and you look at the p-e now in something like an amgen. pfizer, by the way has 34 drugs rid now in phase tests. they have 130-some odd drugs in phase one all of the way through. so they have a monster pipeline rate now that you can look forward to as potential growth. >> i think if you don't want to do pick-specific companies and you do want some exposure i like the ivb. we've had it for a while and

it's a great way to diversify your risk and still be involved. >> we'll continue our tech conversation coming up next. we'll see an insider on yet ipad is just the start of a major revolution in computing. he has plays that can help you profit after this break. 

>> welcome back to "fast money." we are live at the nasdaq marketsite in new york city's times square. let's take a look at the futures of how the markets might open tomorrow. we have news that we're digesting here. qualcomm being the big mover in the after-hours session and we have futures that indicate a flat open right now. we do want to get back to the rest of the markets today as we prepare for tomorrow's trading session and of course, we're talking a lot about the political environment, the ipad and let's get back to wah could be a warning sign for these markets. >> they'll go in different direction right now, but there is a shot of the bear market and there is katrina and this stock was 6442 back on january 11th. the stock is down 17% since. caterpillar is a major stock down 17%. at what point is that a bear market? freeport mcmorran. we talked about@ad nauseam here and pushed down toward the $70 level after trading at 9055.

these are major moves. and look at that stock's done since december and norfolk southern reported after the bell today, very disappointing and this is the first time you've seen disappointing earnings out of the rails in quite some time. they're all trying to trade down and all these are indications and there is a shot of the bear market out there. >> take freeport and this also is consistent with this is a market that you can start to buy valuation. freeport, that was never something woo you talked about value and 91 down to 69 meant that valuation went from 13 times to about nine times. that's a stock i can own. i can own freeport at nine times and we started buying calls today and that's the way you play this. you can get some of the upside on the names that have had huge volatility on way down and these things will price them. >> you're confident the fact that china has pulled back spending on its grid. if you take 2% of copper consumption off the market it's

reflected in freeport. at $3 copper, this company will make $8 a share last year and that leaves it at eight and a half. i think you can be safe on this one. u.s. steel, we started to cover a high state of steel today. the move in u.s. steel will make you weep. this was down 30% over six sessions and this is a stock whose chart is broken. >> we've got to take a break apple promised the ipad will be revolutionary, but will it live up to the hype? the answer after this. everyone awaits the return of the fishing boats. ♪ their safe arrival is highly anticipated, ♪ as is something else. a shipment of natural sea salt from cargill, essential for preserving the catch. we deliver the salt on precise schedules... and ship it efficiently all along the alaskan coast; saving the fishermen money, and their catch. this is how cargill works with customers.

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>> welcome back to "fast money." the revolution started today with the ipad and huge opportunities await for those in the know. pit coburn is one of those guys looking at the next big thing. what exactly are you looking and the how do we invest in it? >> when i think about what's really going on we're still very, very early in a whole bunch of different delivery mechanism, force, melissa to provide our experience of hyperpersonalization and apple is this company that now has a barrage of different ways to allow us to get to the things that we want to get. this 143,000 applications is a

gigantic number. so that's what i'm looking at. this fits into a portfolio beautifully. they're going to accelerate a space that really didn't exist, much like they accelerated the smart phone that really didn't exist as well. so i like it tremendously. >> there are other players though that could possibly benefit. hewlett-packard, for instance, has a device similar to the tab sxlt they're doing basically the same thing when it comes to creating a new category. aren't there other players that can benefit? >> when you think about it, when people see those apple ads they're not saying i want an iphone. they're saying i want to be the person in the ad and that's really powerful. hewlett-packard, is anyone saying i want to be the person in the hewlett-packard ad? here comes steve jobs with his reality distortion field, a brand hurricane of the delivery systems and all put together and all working together if you had the 143,000 apps on your iphone, it will pour over to this device. they're doing a good job of getting free publicity and how

about when the guys go to asia? >> they have their own pads and net books and what not. how is apple going to compete? the u.s. seem to be dominating and will they grow globally? >> when you go and talk to people around the globe as i do, traveling globally. people gush over the products that apple delivers. the journalists, at times, are gushing and journalists aren't supposed to gush. they're gushing over these products and people don't have that relationship with other products that are very personal. these devices are two, three, four feet around us all day long and people will be toting around their ipad as if it's the holy grail. so i don't think those other companies touch them in terms of what is that experience you're getting. >> we shall see. pip coburn, thanks for your analysis. >> you're well come, melissa. >> i think he saw the clip of moezs we showed. >> pip was gushing. pip was downright gushing. >> all right. >> loving you, pip! >> coming up next on the final

trade, three pharma stocks our traders are buying tomorrow. stay tuned.

>> time for the final trade, tim? >> petrobras, get long. >> celgene. >> karen?

>> transocean. rigs. >> got to go with amgen. this son of a gun's going higher. >> thanks for watching. tune in tomorrow and we're all over the after-hours action, microsoft and amazon on the back of the earnings releases. 5:00 p.m. tomorrow on cnbc. have a great night.