>> it's turn around tuesday but it's not clear why. >> it's obviously ben bernanke's testimony. >> the bond market has a baged in. >> one day down and one more to go for chairman bernanke on capital hill. >> we're having a much rougher time than we ever imagined. >> it's true. >> so get to work, mr. chairman.

>> so will he or won't he? and how should you trade it? fresh from the trading floor, this is fast money. >> live in new york city's time square, i'm melissa lee. is the qe question the main one for stocks? what was behind the turn around? i had a bunch of over the day orders. as soon as he stopped talking, they ratcheted them up, just get them in. don't spread them out over the course of the day. i think it's a lot of shorts worried what the next shoe to drop is. >> he said it's basically so bad and getting worse i think the

markets held pretty well from a technical level. i don't think we have a lot more of an upside. >> the economy is not moving the way the fed thinks is sustainable. i agree. steve is in place september. there are levels that traders are following. supposed to be a wrecking ball that is taking out a lot of the

risk assets. look at the the dollar and other risk indicators that are very supportive that this market could go higher. >> just to be precise. you want to keep an eye on that. we breakthrough the level. on the way down you want to look at the 50 day. we started to flirt with it a little bit today. and the shorts we are thinking it was going to be aggressive and it wasn't. >> we're not getting anything

done. what happens next? >> sort of like the kitty kills his parents and says take pity on me. i'm an orphan. i don't know what to think in the move today. bernanke is saying that he has other webs. if that's a weapon, i don't get that. we have a mixed bag and we will get to it. tonight, got great. >> let's talk about intel. shares are a bit of a seesaw. looks like they are trading flat. guidance was disappointing in an interview with cnbc to the sfoe stacey smith sees caution. not only is there a refresh psychle that the kmaens are waiting for but also we have this issue of the fiscal cliff. it all makes sense to be cautious at this point.

>> absolutely. we can go into the range. what tim said about the dollar if you took a look at what the market did and how the dollar traded today, that has one of the highest correlations to the s&p. when the dollar peeked, the market was at the low. when the dollar turned around and how pit full was that, nobody can have confidence. >> if you look at the valuation, it is a fantastic backdrop. we knew last week, we knew everything that they were going to tell us.

we know they have downgraded. all of this data was baked in. that's why i think markets can go higher here. >> had we been looking for the high single digit that they had guided to at the beginning of the year we would have seen material cut to the numbers tonight. you will see the street remain

more conservative than management. >> the lower end of the range that they are giving. given what was said last week, the thoughts at the time when warned that intel with us getting a lot of or if the slow down was really primarily driven by a slow down of wrong doing. >> we have not seen the break down of numbers yet to see whether it was in their graphic processing side of the business. exactly which markets will be the question. >> it's steve wiess. how closely is intel's future tied to a window's eight release? >> i think there is some concerns i happen to think that it's going to have a minimal

impact to the overall business. instantly on and going to play into the market and whether they have gotten them down to the price point that massive options occur. >> i still this if you look at the company, one of the things they demonstrated is there is earnings power to the business model. they were able to beat numbers. they did guide spending lower than expected.

>> as the company's new ceo formerly of google. very uncharacter is tick of you. >> now i know why you don't do it. >> first, i thought it would read much better than it did. there was a lot of sort of hemming and hauing about should there be a media company or a technology company? and so it opened -- i think 1585 or so. it just kicked it out at the open. i should leave the pete stuff to pete.

>> i think getting these things done, clearly, i don't think she has brought in to put the crimps into the deals. i think these deals are going to get done. this is a story that you could actually own. >> sometimes you have to shoot from the hip like karen was talking about. >> there are issues here. if you want to be a seller of yahoo! off the pop there, you have to be a buyer of google off of a little bit of a dip. after hours you always have the professional traders like karen that are dipping their toe in the water.

there are not too many retail investors, they don't want to trade it. you want to be selling it to those pops and buying into the dips. >> a quick gain share might not feel a thing. >> that's my point, precisely. if there was a dip off of google, it was maybe, maybe it had nothing to do owith the headli headline. maybe it did. but you wind up pushing the stocks around for absolutely no reason so the real professional should take advantage of the

liquid pops and drops. >> stick around. we have got a huge contraryian call on china. making a big bet on the people's republic. and someone on this desk has drilled up an energetic trade. >> to find out what it is, you have got stick around. more fast straight ahead. [ male announcer ] it would be easy for u.s. olympian meb keflezighi

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>> a slow down in china and across the globe. joining us now is the chief asset strategist. graeg, good to have you with us. how much upside are you expecting? what's your scenario there? >> it's a relative trick. investor sentiment has

completely shifted. everyone dislikes china. i think over the sect half that raid is going to reverse. specifically, readjusted as far as expectations. the policy strax has a better chance of working in china versus the u.s. i don't quite get that. these are marks that are much more sensitive to the credit channel than the equity market so i think this could be the.

>> relative to the u.s.? >> specifically the u.s. it fits the same type of dynamics that i just described. >> investors are all in on the u.s. >> what property market are you referring to in china? >> the equity portion. >> okay. back in 2008, when equities were still moving lower it might.

>> the situation is changed. a complete mess. property prices have declined. their dead is 40 or 50% of what they should be i think on the mu mispal and urban i think the government is allowing we're going to be good about this. at the end of the day they can pay for whatever you want to. we talked about this earlier tonight on the desk.

>> so the fed, for example, does not have that direct impact. china does. there has not been a policy that we initially expected. but there is a better chance of it having an effect. >> so let's boil this down into something that people can invest in. very recently. in the stock market three and a half year lows. what at this point, how do people get exposed to the relative outside that you are predicting? >> it does not have to be directly. but it's basically true to the equity markets at this time. it might be early. for the second half that is going out perform relative to the u.s.

>> obviously as the ambassador you are always looking for new places to put your money. >> it's a bit of a long short emerging markets trade. that's what i do all day long. if you think china has seen the worst, buy brazil. gone through a lot of pain.

>> it comes to some u.s. based companies. operator:ing in china about the ability of the consumer to spend. we heard it from nike. >> i'm going challenge. you buy what's working. >> these are high dividend. >> backing me up and i don't think that's going to happen. >> we have seen the same thing with mcdonald's where it worked

worked worked and then stopped working. >> 20 times earnings, this is such a great value. >> but it has sold off. i know we have talked about it. >> we continue to bring you up to the minute developments. a downgrade for deer today. we're talking to the analyst behind the calls. giving you the way to play all the moves. much more fast straight ahead. 9ds tds ds tsds ds eddedededed

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>> was she on or not on? >> she was not on. ceo tim morris taking all the questions. he happened to mention there is an out in the microsoft search partnership. if after five years microsoft is not able to redirect search thresholds they can get out. that parer inship continues to underperform expectations. from the lay offs that they announced a while back. macro weakness actually saying display revenue and trends in north america somewhat encouraging. and yahoo! saying they will not give guidance this quarter particularly to let marissa get her footing and not set the bar in a place they didn't want to

set the bar. we all know what that's about. in europe in particular, getting a lot of focus as a negative point on this call. >> thank you so much for that. john, i will continue on the call and bring you developments as they happen. we do want to go to another mover. they confirm that its president is headed while emc's cfo will take on the role as president and they do a little swap. so, sort of an interesting move here. getting a new ceo. >> one is becoming the chief strategist which is saying find

another job and the other one is down from emc to vm wear. now with them coming in line and maintaining guidance it's a relief rally. >> confirmed that he will stay through 2013. in the meantime let's move on here. >> how should investors play. contributor and editor. dennis? big gains here. do you lock them in? >> i think corn might still go higher.

any weakness this you get need togs be bought. got the crop in the ground early. it's the worst time to have a drought. there will not be corn in the plant it. >> what do i do with the firsts? i was tempted to short it and buy the protein companies. the charts are over done. overdone to the downside. a little more strength on the shorts backs.

are they running out of gas? what do you do when when you're losing all the crops? >> a lot of people think that fertilizer is going to save the corn crop exit's nonsense. nobody is going to apply any more and anybody who is putting any on wishes they had not because you have a corn crop that has been destroyed. very silly idea. >> would this make me want to go to a mow say yak. getting that crop stronger in addition to planting a better crop? >> it's astonishing what we have done.

>> it's a completely different story. >> always good to see you. >> always good to be seen. >> the severe drought is behind another big call out today. the analyst behind the call joins us now. >> good afternoon. >> part of the call is the sentiment is deteriorating. they have bought a lot of equipment and they can wait at this point. what gets them rethinking. in order to get you more bullish on deer. >> the notion right now. if you go out and talk to farmers, you will hear over and over and over again that $7 corn

is of no value if they have no corn. in that environment, it makes us us more kaurgs that farmers who have been replacing their equipment would take a breather and wait a season or two to see what happens next year. >> let me ask you, is there any suppliers to deer that would also be hurt by the same factors that deer is seeing? >> they're not seeing it yet. industry sales have been pretty good year to tate. we get into august, september, and later in the year next spring. on the entire supply base in general. >> sorry. it's tim. i know you covered the rest of

the sector is this a trade that you play? from a longer term demand in a world where people are questioning global growth? it sounds like you are making more of a trading tall. >> it's tough for the next six months or a year. we would be talking about farmer sentiment again. i think what this drug is going to do is it will call into question the real value of putting 40% of our corn crop into ethynol and whether that is a sustainable strategy.

can we adjust quickly enough? >> we're going to leave it there. where do you stand on deer? >> she did not take your estimates down enough for me to really get concerned. it is actually getting close to trough valuation. if it comes down further i would be a buyer. >> she makes a parallel that 2012 is going to be like 83 and 88. >> you were driving a tractor. >> how bad was that in 88? >> what we did not have then and this is the only part of china that i'm bullish on is the farmer's in china, farming around the world. >> what about tax policy changing going into year end? what do you think about that? >> yeah, you never know.

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>> got some breaking news here. >> thanks so much. an interesting legal development in a long running case between former aig ceo and the state of new york. essentially today, a mid level new york state court has agreed to allow green burg to take a case up to the court of appeals which is new york state's highest court elliot spencer pursued green burg and howard smith for having allegedly engaged in securities fraud. green burg has challenged that over and over and over again. it allows a prosecutor to pursue

issue of securities fraud even if the intent cannot be proved. what's going to happen? the high state court is going pursue that the martin act was the wrong act to use. and this twist is very much of a victory for his team. we have a couple of statements here. oir office is confident and we look forward to trying this case to hold the defendant's accountable for perpetrating a major insurance scheme to defraud investors. intended to provide uniformed

national standards and secondly whether an action based solely on hearsay evidence can survive a motion for summary judgment. in other words an attempt to throw the case out. definitely a proud moment. went viral on the -- as well asthma ree ya. i'm wondering if you have heard anything. >> as you note, that's a very interesting element of this case. one thing that david and others who are representing hank greenburg have argued is the that there is personal an mist on spitzer's side. and thoo it was motivated by

personal adversary. it will be interesting to see what happens. >> thank you so much. i want to go brian. >> the stock trading slightly, a few highlights. this was interesting. taking factory capacity off line which will impact margins. they don't see pc sales as robust. they also talked about it in some developing countries they are seeing prices of computers go up. they do see growth in china but not as robust. basically the whole world has that view. windows eight, are people

deferring per chass in anticipation? the concerns far outway any deference and demand because of windows eight. >> we will talk to an analyst who has been listening in to the conference call for the latest details. a passionate belief, and the foundation on which merrill lynch has been built. today, our financial advisors lead from a new position of strength. together with bank of america, they have access to more resources than ever before. a steadfast commitment to help you achieve your financial goals in life. that's the power of the right advisor. that's merrill lynch. you walk into a conventional mattress store, it's really not about you. they say, "well, if you wanted a firm bed you can lie on one of those. we provide the exact individualization that

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>> that stock up almost 50%. and a headline you have probably already read today. throwing burgers, donuts and pizza to see what the technicals say. it is all coming up at the top of the hour on mad money. joining us now fresh off the conference call. thanks a lot for joining us. what was the headline? >> that it was not as weak as expectations going into the

earnings report. >> were expectations too low? really pessimistic going into the earnings call. the amount of volumes that they did were right in line with our expectations. >> in terms of the vip game, you are concerned that they would have to take out their outlook. what's your stance now.

>> so the company, you probably want to invest in, at least for the next six to 18 months is the company that has the ability to fill those tables. >> are you getting optimistic that things won't be as bad? >> we think that's the case. but so far the growth rate so it's really the gamble coming

out of china and the wealth accumulation. it's a good -- it's a good investment to make. >> harry, thanks for your time. >> va ghass one thing. a lot of people are looking at vegas as the growth story in the space. but all of these charts are extremely hard to look at. if i had to buy one it would be vegas. >> because of spain? >> it's the story. >> i know. that's why i asked. >> i feel as though they do a little more provocative use of money. >> it could happen. >> earnings continues to heat up. we're looking at options. what to you see?

>> a very interesting trade today. somebody sold 13,0340 puts. if a stock trades flat, they will be short puts. what i'm seeing here is somebody who thinks starting to become compelling around the 29 level and that is what they're playing for. >> i agree with that call. we're less comfortable selling volatility because it's something we don't do. instead of buying something at the money year you're paying for a delta around the mid 20s. again we like the numbers.

we know that it has been a widow maker. >> you can follow the show on twitter as well. time now for pops and drops and movers. >> i'm starting to see a lot of interest around the name again. >> i was down because it is already fully pricing.

there are mid market blenders. >> and a drop for kb homes? >> despite the fact that nahb beat the survey. it might be time to hit the pause button. >> we can all be thankful for one thing, that would be air-conditioning. designs were drown up in 1802. air-conditioning fans visit the site of the fish machine.

>> ice ice baby? >> you can go williams burg to check out the equipment. >> sounds like a good field trip. >> not again. >> coming up next, a slick trade of the day. what's behind the curtain is one of the best ideas. we are revealing what it is in just moments. stay tuned. [ male announcer ] trading's like a high-speed train. and you don't want to miss it with thinkorswim by td ameritrade. you get knock-your-socks-off tools, simple one-click orders, real-time paper trading to hone your skills, plus anytime you need it support. ♪ stocks, options, futures, and forex. get your trading on track. thinkorswim by td ameritrade. trade commission free for 60 days, plus get up to $600 when you open an account.

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welcome back to fast money. the big moment has finally arrived. it is time to reveal today's trade of the day. we have the spot slight. what is it? >> ioc. the catalyst for me to bring this to you today was i spoke to a portfolio manager in the emergency space, obviously and i asked what stocks or stock are you most excited about. and he rushed through the phone to tell you. they have a large gas line. a large oil company back in june. now you are starting to see the

only hurdle is an election. tim is very good. maybe a little bit before june. how much more is left in the move? and obviously we are not throwing out price targets but he said a considerable amount more. he said that is within reason. >> 90 or 95. >> he is long. >> yeah. okay. that's an interesting pick there. don't forget, delivering conference kicks off tomorrow. so be sure to tune into us for all day coverage starting at 8:30 a.m. eastern time. we will be right back. this man is about to be the millionth customer.

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>> find the trade time. >> stay in brazil. price increases in dees dee sill. >> karen? >> time to say good-bye to disney and take some money off the table. >> ioc was the trade of the day. it