close but no cigar for a high on the s&p. thanks so much for being with you. i'll see you tomorrow, stay with cnbc. "fast money" begins right now. >> live from the nasdaq markets, i'm melissa lee. so much for coal winers. the stocks have been surging. outbreak, birt flu punishing investors. and a "fast money" street fight. just how quickly is jcpenney burning through its cash. we're talking to jcpenney's landlord. but first let's get to our traders and talk about the market action. on the surface, doesn't look like much, but big moves in the

text base and for old technology, intel, cisco, hewlett-packard. >> i think it was not about looking at the brad action. there was a lot of action. microsoft, intel, all just screaming today. russell 2000 some of those were down today and the stocks that had to do with china, cater pillar, all these names really moving rather substantially today. that was the story of the market. it was hard to get a read from any of those because i don't think there's a read across to the broad market there, but in terms of what happened today, that's what you got to watch. >> guys have been selling a portion of their winners, buying high beta names, like the coal space, like the commodity space, for the china, play, but it was -- >> i guess that's my bias. i think the china play was overdone. it was short covering to get excited about that china will

stimulate their economy is a little crazy. >> i think it is a rotation, exacerbated by china cpi, you saw the inflated coal space commodity space. if the market fails, those will be the first ones to be dumped again. >> in ternls of technology, this was a painful day for you because you've been a bear -- >> [ all speak at once ] >> where do you get something like that? jcpenney? >> you know, my kid helped me pick out this outfit. so thanks a lot, buddy. okay, here's the read across here for the move into intel, microsoft, both saw a lot of call buying. two stocks, when you think about it, they haven't gone anywhere year to date. 3, 4% yields, rock solid balance sheets, they're not growing. similar to the utilities. so what did the utilities do?

after a new four-year high, it was down. i think if you're going to make a sustained break-out, you're going to need to see it broaden out. i can't tell you if it will be sustained. >> isn't that just a rotation, out of utilities, into these names? if i were trying to buy something with a 3% dividend, it wouldn't be autility. >> maybe the estimates have been lowered enough. the bar is down to the floor now. going into earnings season this could provide investors the beta that they want. >> they're going to be right or wrong. i'd come down on the latter, but that's what makes markets. the tape is favorable, taking a shot with intel. which is fine. i get it. i think what's worth noting today was some relative underperformance of the russell -- the relative underperformance on the transports. but to me, what set all this up was thursday's action -- or

friday's action. we talked about the potential for an outside week in the s&p, and it was there for the majority of friday, until the afternoon when the market rallied and we broke back up through that 1546 level. that's why i think we are where we are today. it was an interesting day. i'm not going to make too much -- to me there's still a lot of cross guards and japan is still the most interesting to me recently. >> top trades for the session. >> i think the trade for today was silver. the reason why i like silver over gold is just in case i'm wrong about the global economy getting weaker. silver will trade with gold if there's a safety play. >> i sold 80% of my hewlett packered, even though i don't believe the turnaround story is done. it's up over 50% for the year. why don't i lock it in, seep it a place holder. >> where did you rotate into?

>> it was sort of a reverse rotation for me. but i was going to hold hewlett-packard, but i thought i was being greedy. >> it is really is going sideways. when you look at some components, i believe the momentum is broken when you look at toll, lennar, and polty. and some of these retailers and material guys that supply home-building or the industry of home-building, they haven't broken yet. home depots and lowe's, got back in today, up about 3%. i think you want to find divergences in sectors that discount a lot of good news. >> we talked about netflix, said it looks broken for the short term. yesterday it traded down to 159. nice day today. interesting reversal yesterday. i think the move to the upside is still intact. i think this was a flush you were waiting for. >> we've seen this movie before.

>> whoo! >> we should stop right now. >> all right, let's talk apple here because despite the big surge some in some of the tech names, apple still trading water. they report earnings two weeks from today. what can you expect? will there be a big cap move? walter, great to have you with us. you upgraded the stock on march 14. are you surprised the stock hasn't done much of anything at this point and that there has been no capital allocation plan announced so far? >> i'm suppliesed about the lack of cap cal allocation. a lot of people thought it might happen in march based on what the cfo was telling people. we have this plan in place, need to think it out. a lot of people were expected something to happen in march. when it didn't, then fear crept in. what are they waiting for? what do they want to package

that dividend report with? >> is there an acquisition out there, if apple made, that would make you, i guess become a raging bull? i don't think anything of us here are on the desk, but is there something on the horizon for apple that turns the story around? >> that's a great question because our upgrade was more about, hey, it's just going to grow earnings nominally, still a nice stock to own, because earnings will grow again, but they have all this cash, they need to return to growth. they have all these people staring at their screens on iphones, there's a lot of ways to monetize that. twitter is a big name out there. a lot of people talked about, you could benefit by having all these -- >> if we wake up tomorrow morning, and they have a cash in stock deal for $15 billion for twitter, what does the stock do? >> when you look at your 2014 number, 45, $50, i believe there

can be growth in the future. rather than trading at at eight or ten times earnings, you could trade it at 12 to 14 times earnings. >> do you think they could make a $15 billion acquisition and immediately double their market cap through the acquisition? >> i think the problem with apple right now is people are just questioning whether they can ever return to growth, whether they had a peak earnings year last year that they'll never get back to. if you can return some level of confidence that they can return to growth, the stock will do well quickly. >> two weeks from now, going into earnings, you're expecting what? a cap of allocation in some form to off set bad news on the june quarter? >> our call is not based on that. i'd like to have more belief in growth. it's something you have to address because the management team is talking about it. obviously vocal shareholders are talking about it. you're looking for a bad march quarter that's below where the

consensus is now. massive cuts, but more important, the june guide is the risk here. it's going to be a down revenue quarter, perhaps earnings under eight. consensus is still over nine for the june quarter. get that june guide out of the way, the investors will look, and say what's the next catalyst? and how do we return to revenue growth and earnings growth. >> walter, thanks for stopping by. let's say we wake up and twitter's purchased by apple, would you have more confidence just because it bought the big company and there's potential for growth, but we don't know a track record of integration. >> we don't know that. they've never done that. if it's twitter, absolutely, yes. i would think that apple has the ability to monetize twitter at least as well as twitter is doing well if not better. >> agreed.

apple is so dependent on the iphone, over 60% of its revenues from that. margins have peaked. they need something like twitter. >> the name that is moving right now, big move, josh, what are you watching? >> check out realology. the real estate broker went public in taukt and had a big run, but now dropping hard here in the after-hours forecasting. first quarter results disappointing, forecasting a net loss in the range of 69 to 70 million. top line, 950 to 960 million on the top line. also announced a secondary auveing of 35 million shares. realogy now 7% in the after-hours. >> we talk about them as being a pure play because it doesn't build home. it sells all sorts of homes.

does this feed into your theetis on home build erds? >> it could. but specific to realogy, this is a horrible thing to do to new investors right out of the gate here. as a holder, there's probably a lot of people who own this thing on the deal. now this company, you have to question their credibility a little bit. >> but i do think it goes to what dan was saying about home builders in general, probably being a little ahead of expectations. they missed expectations here. the street has pretty high expectations for the housing market in some cases, higher than back in 2007. so i think dan's right to be short here. >> still to come on "fast," a look at whether coal stocks are on the road to recovery. and fall-out from the jcpenney news. can they turn it around? what's at stake for young brands in ninea as the bird flu scare intensifies. much more on "fast" straight ahead.

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>> let's look at the after-hours mover here, health management, stock down 12% in extended

trading at this point. mike, thoughts on the stock? >> yeah, we actually covered this one, sheryl skulnik was looking at this and seeing these number as exceptionally poor. she thinks this is really hma specific story here, their bad debt issues, so i'd definitely stay from it. >> can michael ullman security jcpenney's financial future? will jcpenney run out of pennies? courtney reagan has been following this story, joins us from elm mufrt, new york. >> it's back to the future for jcpenney, ron johnson's predecessor because his successor. doesn't look like investors have any immediate confidence, with shares trading at 12-year lows as he reinherits a shaky financial situation. jcpenney owns 426 of its 1,100 stores valued at 3 million to $7

million. per average 100,000 square-foot location, about $11 per share. when it comes to cash, they have $930 million on his balance sheet at the end of 2012. they've already burned through 600 million this quarter, assuming a 15% negative, same-store sales for the quarter. deutsche bank thinks they could have burned through $750 million assuming 11% negative same store sales comp. sales we jp morgan says in order to get back, they have to average 30 to 35% same store sales for an entire year. that scenario seems almost impossible at this point. and another blow that jcpenney could face is if ullman loses the ability to sell martha steward in some categories. that battle wages on in a courtroom in lower manhattan.

while the judge is holding his cards pretty close to his vest, he's growing increasingly frustrated with all the parties, many people i talk to think it's a strong possibility jcpenney could lose this and walk away without martha and that would be the opposite of a good thing for the retailer. >> courtney, thanks for that. we were looking at the bonds and the yeemds were telling a different story, but the yields have come down since their peak. >> it was interesting when you look at the bonds and the cds, they were showing those investors thought things were better at jcpenney. a lot of that was to build out these stores. so if you're not going to build out the stores anymore, you have a little cash, more breathing room. i still don't know if that means that this is a great story, but it was pretty interesting to watch. >> the numbers behind the yield, by the way, the peak on the yields of 11.22% march 11th of this year, so they have come

down quite considerably, still reflecting some sort of risk to underlying credit. >> i'm not saying you should race to buy jcpenney tomorrow. it closed effectively on the lows, but it did a lot of volume. last levels we saw in march of 2009. so if you're looking for any entry point, maybe you'll get one tomorrow. not unlike what we saw in hewlett-packard in november -- >> really? it's trashy enough to take a gamble? >> a lot of people that i talked to were short, they think it's going to be a hat size. they're not covering. when you look at the volume today and you look at how it closed today, shorts are left to come their way. i think there's a good chance you see this stock in single digits at some point this year. >> the big movers of the day, a pop for corrections corporation of america, up 3%. >> special dividend, talk about their reed status and the

fashion police -- nathan is another one of their guys. >> this is what they wear in the prisons, i heard. >> all things moving in correction's way. >> how about dan's shirt? dan? >> old home building story here. i think the momentum kind of came out of these names after these guys reporting in the last two weeks. so i think you really want to focus on the technicals here. and i think that you need this thing to hold current levels, but at this point momentum is gone. >> both underlying metals had a great day. copper up, gold screaming today. i'm short copper, long gold. >> herbalife down 4%. >> i think the best trade is no trade. i'll let the big boys duke it out. seems like you're always one day

away from another headline. i don't know whether it's going up or down, let the billionaires decide on that. >> st. jude. >> second downgrade in three days. the news here is they're facing lawsuits on defibrillator leads in california. normally device makers are protected by a supreme court ruling that protects them if they're fda compliant, but there's an issue about whether they're going to challenge that. i would avoid the stock. >> and how about the rat dog. if you're in the market for a new pet, avoid argentina. a man recently smelled a rat after buying what he thought was a toy poodle. his veterinarian broke the news. he had been sold a juiced up rodent. >> what! >> it's cute. would you keep it? i mean would you just discard

it? >> i wouldn't put down nathan's shirt. un of my favorite books is about the pesky rat, where a rat is passed for a cat. >> right. >> great story. >> ahead on "fast money," solar blasts, mega rally shares up more than 40% today alone. and we'll face off over the colonel, can the company weather the bird flu scares? straight ahead. >> the entire trading day is the preparation for the show that night. >> it's idea generation, all about giving you a framework for how to look at the market. as the world has changed our show has einvolved. i i am guy adami. >> i am pete najarian, i am "fast money."

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higher today, the biggest one-day move ever for the stock. forecasting 2013 earnings and revenue above consensus. also announced the access of tetra sun. short interest in the stock nearly 31%. >> thank you very much. would you touch this with a ten-foot pole? >> i wouldn't. i think it's in the speculative category. here's a company that expectations got very low. you saw a 50% move. it's still 35% below the trend line from the 2008 highs. so it hasn't gone anywhere. if there's a sustained come back, it could go higher. >> concerning for the restaurant industry after new reports bring the bird flu death count to nine in china. yum brands under pressure, shares down 4%. the situation takes us to the

street fight tonight. guy is a bull. beakers is the bear, obviously. >> you have 90 seconds to state your case. >> you just said, how many people died? >> nine. >> did you say nine? >> nine. >> statistically, i feel bad obviously -- >> out of a billion people. >> so i think it's pricing the stock to move from 74 down to 67. number two, 11 years straight of 13% or more earnings growth out of this company and they're constantly sandbagging, i think they did it again. plus operating margins getting better, not in china, but internationally and in the u.s. if you look at the stock over the last four, five years, every move of this magnitude, there have been many, i hate using the word, but they've been buying opportunities, and i think this is another one. >> interesting and i'm with guy, i think the bird flu has been priced into this. and the colonel makes a darn

fine chicken. but the problem with yum, it's a china play. that's how the market looks at it, a china play. the 11 years that guy mentioned, all has to do with earnings growth from china and the growth of the chinese economy. they're trying to slow their economy down. as i said, people got too giddy today about a low cpi number in china. i think the chances of china coming out and stimulating their economy, slim to none. so that's where you go with yum now. how are they going to generate that earnings growth over the next couple years? i don't think it's there. i think you get out at these prices. >> here's some food for thought -- >> funny you. >> but seriously, food for thought, the sars outbreak, 8,000 were infected, 10,000 were killed. and so it's not just about the numbers, the media can make it a

whole different number. >> and beakers will be 100% right if that happens. i'm not in that camp. and that's what makes markets. >> look at cater pillar which flew today. >> so let's get the verdict here. grasso? >> i'd rather go with mcdonald's. if you look at those charts he was talking about, yum looks triple top, no such thing. i think the market is coming in in yum. mcdonald's more secure on the chart. >> also points out that mcdonald's consumer can switch from mcnuggets and buy a burger. >> bk having nothing to do with fashion issues, but i'll tell you why. they had doubled the sales in china they they have in the u.s. so this 21 times expected earnings is predicated on future growth in china, i think it's a bad bet to make here and i'd

rather own mcdonald's. >> that's why i said nothing about his shirt earlier. >> beakers wins. we want to know who you thought won our street fight. tweet us and we'll share the results. let's get back to the jcpenney story and bring in one of the retailer's landlord. they lease the space to jcpenney. he joins us on the fast line. always great to speak with you. >> thank you. nice to talk to you. >> obviously a lot of people talking about jcpenney burning $750 million in the first quarter, an estimate. are you concerned about their ability to pay their rent? >> not really concerned about their ability to pay their rent because they don't pay very much rent. but i'm concerned about their ability to pay vendors for goods which are absolutely critical for future growth. and i think that's one of the reasons why they brought mr.

ullman back which is to have the vendor community have some comfort that they're dealing with somebody that they've dealt with in the past, someone who has been a reliable partner with the vendor community in the past. >> michael ullman can be a reliable partner with the vendor community, but the difference in sales between now and when mr. ullman was the ceo is very different. if you take a look at the sales per square footage, for instance, it's declined about $40 a square foot between ullman and ron johnson. so what can mr. ullman actually say, other than, you dealt with me before, trust me. >> he can say, i know who our customer base is and i'm not going to ignore them. he can say to his co-workers, i believe in you and i'm not going to abandon you. he can say i ran a company with a respectable balance sheet, a respectable dividend.

we can do it again. i know how to do it because i did do it. even though we have a number of problems that we have to face, and i'm sure he doesn't even know the number of problems he has to face, the history of him running the company, when he left it was a $17.5 billion company in sales. they've lost 4.5 billion and it will take work to get back to where it was, but he's been there before and he knows how to fix it. >> one of the strategies thrown out there has been jcpenney reducing its square footage. is that even a possibility? are they locked? can they reduce it? >> they can reduce the square footage. it's not easy to get out of leases. it's not easy to sell buildings. but they can reduce their selling square footage, reduce their inventory, increase their sales per square foot, increase their profit per square foot and preferably their margins per square foot because all retailers pay their rent with margins rather than comp store sales. so it's possible, not sure it's

necessary, if he's able to have have the right merchandise, and engage workforce and reengages the penny customer upon. >> you said before jcpenney doesn't pay much rent. so if they somehow could get out of these leases, are you optimistic you can release those spaces at higher rates? >> i think in most case, most retail landlords would be able to re-lease space at higher rates. but i don't see that happening in the immediate future. the concern is how do we interface with the vendor community? how do i interface with my co-workers and my customer? see how that works and then see at that point, what you want to do with the real estate and what makes the most sense. >> great to speak with you. thanks for your time. >> maybe we're being too hard on jcpenney. maybe it's a matter of moving the needle just a tribute.

as one analyst said, they're going to company into positive comps because same store sales were terrible before. >> go ahead, beakers. >> that's assuming that they're around next year. that's the problem you have. i don't know what -- why would you go to jcpenney, what's the compelling reason to go to a jcpenney to buy the same product that you can buy elsewhere these days? >> he said they can expand because of margins. remember, this is a $3 billion market cap. they have $3 billion in debt and 900 million in cash that they're burning quickly here. this stock has the potential to be stressed very quickly. >> firing up the coal train. why this stock could be on the mend. and an extended version of holdem or foldem, we'll talkel four stocks hitting new highs. be back right after this. ) at sr clients trade and invest exactly how they want. with scottrade's online banking,

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welcome back to "fast money." we're live in times square. coal stocks coming in as the worst trade so far this year, but there are signs of a recovery taking place.

>> up over 4%. it's been up for the last six months or so. so that's what these coal stocks are trading off. >> you want to look at those because they have a lower benchmark to become attractive. so there's where i would look for a lot of beta, but don't judge it on one-day's move. >> let's get a trade update from steve and pete. >> prb. it's the same thing. >> it's got a b in a basin. >> i'm long, staying long. if it breaks down, you'll know about these names if you got to vacate quickly. >> options traders believe one of these coal stocks will finish the week on a high note. which one? >> we're looking at alpha natural resources. couple thousands of those trading hands at about 12 cents. these guys make a small bet the stock could finish 3% higher than where it finished today. i think this is probably the

right way to play approximate. high beta names and the reason because they carry about 3 billion in debt, versus 700 million in equity. dangerous place to try to catch the falling knife. calls are probably the way to do it. >> tough to buy the losers and sell the winners. time to play holdem or foldem. four stocks hitting new highs. coca-cola strading on a 14-year high. mayor bloomberg's ban on large sodas, can't keep this stock down. >> you think you know me -- >> i think you're going to say holdem? >> you're wrong! >> what! >> it's a great company and a great story, but at 17, 18 earnings, it's getting long in the tooth. we're trading at levels we saw in 1998. can it go to 42? yeah, but i think this run is

over for now. i'm foldem. >> next up, dominion resource soaring to a record high. benefitting from the bonanza. holdem or foldem? >> this is how people play these markets because they're not sure where they're going. they play with a conservative bet. i would say holdem, but if you're nervous go with xlu, but still holdem. >> so holdem and then you foldem if you're conservative and then you hold something else. >> you have an incredible profit here because a lot of people do and you want to hedge, you could sell half your dominion. >> it's the same. >> you know what, screw it. holdem. holdem. >> nice job. next up, carmax also trifing new highs, boosting shares here. beakers, what do you do? >> i think you fold these. i don't think there's any more

gas left in the tank to this one. >> oh, come on. >> you are correct, sir. >> when you look at car sales since last september, plateauing above 15 million on an the annual adjusted rate. i think we've seen the car refresh cycle. i don't think you'll see the type of gains you've seen in the last year, so you foldem. >> and tjx trading record high. consumers going to that retailer. holdem or foldem? >> i just checked with my mom who is in there weekly, she says things are good there, but i'm going to foldem. this stock trades at a premium to other retailers in the space. i think the stock is setting up in a nice base here. if you get it back to 44.5, it's a good one. >> coming up next on "fast," there's a new housing ipo on the block. we'll have all the latest

details right after this. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade. is its own reward. but there's nothing wrong with enjoying a little extra reward. ♪ that's why southwest built a better rapid rewards program with unlimited reward seats, no blackout dates, and points that don't expire. rewards that actually reward you. we are southwest.

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that's bank of america. transit fares! as in the 37 billion transit fares we help collect each year. no? oh, right. you're thinking of the 1.6 million daily customer care interactions xerox handles. or the 900 million health insurance claims we process. so, it's no surprise to you that companies depend on today's xerox for services that simplify how work gets done. which is...pretty much what we've always stood for. with xerox, you're ready for real business. shares of taylor morse, one of the top ten home builders in

the u.s. expected to price tonight. they build in some of the markets hardest hit by the housing bust, including arizona, california, colorado, texas and florida. diana has the latest on this one. >> that's right. you know, the fact that it does play in some of these hardest hit markets has some analysts concerned in the long-term. in the short-term, they're calling it a strong offering. taylor morrison is not a start-up but has been taking advantage of the housing recovery with a strong pipeline. the arizona based builder has not priced yet, but according to an updated sec filing, plans to sell 29.8 million class a shares, making it worth 524 million. they reported revenue of 1.4 billion with sales and orders up 46% from 2011. they build in arizona, california, florida, texas, and colorado. as well as having an arm in ontario. average home price is $364,000.

so a step above the starters, but not quite the luxury home range which toll brothers controls now. not entry level, not active adult, and not luxury. private equity firms bought the company back in 2011 and taylor morrison says it intends to use approximately 275 million of the proceeds to buy back shares from tpg. and oak tree. they believe revenue will be up 57% in 2013 with an estimated book valley of 12.50 a share after the ipo and the repurchase of shares from tpg and oak tree. another analyst is concerned. he says that these home builders are driven by lack of supply. that lack of supply is because there are so many investors in the market now, buying up the foreclosures. when the prices get too high, the investors could start to sell and that would be in direct

competition to the home builders. we have more online to check out. >> diana, thanks for that. i go to you because diana makes a good point. it's not luxury, it's not entry level, it's not apartments which are hot these days. >> it's interesting. i don't think eye think the housing stock suggests it's much better. this ipo is going to do fine. i have no doubt. i can see bob already opening up 18% higher and the whole thing. but doesn't mean i'd go racing and in to buy it. i'm in the dan nathan camp. >> the bear company. >> camp well-dressed. >> not. time for the good, bad and the ugly. speaking of your shirt -- [ laughter ] first the good on new year's eve, bk made the case for hewlett-packard. here's what he said. >> looks like they probably purged all the bad news in the stock.

so now you have a cleaner company that's a little more visible, a little more clarity in it. yeah, i would buy here. >> th that turned out to be a great trade. he hp is up 62% right here. >> i would -- 60% in a quarter, i think you got to at least take half off the table if you happen to get it at that low price and you're in it now, take half off and let the other half ride if you still want to be in it. >> beakers was looking for a short play. take a listen. >> i think it's the best short out there. earnings tomorrow morning. when you look at the ethanol spreads, they're losing money again. if we have bad earnings, it gaps lower, you get out or sell more short. >> well, adm is up 14% since that call, beakers. >> yeah, that was a bad call. they continue to lose money on

the ethenal area, back then, but earnings were expert than expected. i was flat out wrong. you have to get out and reevaluate the situation. >> what do you mean coming up next? every time you think you know by now. what is the good, the bad, and the ugly. >> we did the good and the bad. >> which means, what is that? >> beaker's in a meat shop. >> nice shirt. >> charlie brown look there. >> in the meat space. coming up next on "mad money," looking to kick your investing up a notch? cramer will sit down with mccormick. to see if spices could be on order. meantime, coming up next on "fast," what a portfolio should look like if you're just getting started. class is in session with guy

adami and the traders answer some of your tweets for today. stick around. we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪

>> april is financial lit rasy month. we're bringing you cnbc-u, today's lesson how beginners should building a portfolio. class is in session today. >> great to be back here at the plasma, twice in one show. this is not our trading hat. it's our investing hat. don't get crazy. six to eight stocks should be fine. look at the things you know. what do you young folks know? you all shop online. so i'm giving you four stocks. pick one in each group. how do you pay for things, with plastic? veez a master, card, pick one of those two. who's shipping it to you, fedex or ups. pick one of these two. you like to play with the mobile phones. i understand the whole thing. american tower is a name that i think you should own as well. banks, you have to have

financials in there. i'm not that optimistic, but you have to long-term look. pick one of these as well. you also need a little beta, energy. >> and beta, this is for beginners, so beta is -- >> things that will move for you. high-risk high reward in the energy space. not exxon mobil. look at new field exploration. there's upside in that one as well. i stayed away from health care, although you should probably be there as well. i stayed away from tech. but look at the things you know, you know you're all frugal, you shop big box places. big one, costco, walmart, target. pick one, not two. nice diversificatioe iskdificdi.

>> let's say you wanted to bolster it with an international element, where would you go? >> i'd go to japan and be short the yen. ycs is one place you could do it. i think almost everybody would agree the yen is going to be much, much weaker. i think that's a great place to be internationally. >> so that is today's lesson. >> well done. >> you should be a professor. >> you tweet it, let's get to the tweets. microsoft or apple, who leads the next leg up? >> i think we're starting to flesh out apple. all the bad news and negativity is starting to get to a point where you have to be a bauyer o the name, especially on the price. >> but do you agree with the notion that one of them will lead the next leg higher? >> i don't necessarily agree with the premise. so i think that there's other

leadership, there's a couple names in retail, we spoke about it the other night. macy's, costco, mcdonald's. utilities that you want to be in. i don't think that's true, the premise that you stated. >> how long can the vix stay dormant? how many 1% corrections can we have? this is cray-cray. >> definitely feels like we're due for a sharper move. but the market can remain dormant for extended periods of time as it did in the credit crisis of 2004 into 2007. so when you see the big stocks moving in opposite directions that tends to move the move of the index itself. that said, i think we'll see the vix go higher soon. >> netflix had a big bounce, but still in a down trend.

do you think it breaks $160 again? >> the stock sold off 15 bucks. stopped on a dime at 160. that's your level you just asked about. to me, this company's going to report and their earnings will be very important. the options market is already pricing a 15% move. it's moved on average about 20%. i think if they misor guide down, or if there's anything not kosher in the report, i think you see it on its way to 140. >> there's another tweet about the bear suit. you still wearing it? >> still wearing it. >> coming up next, who won the street fight? stay tuned. pricing a 15% move. street fight? thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past.

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earlier in the show we had a street fight. who won? we asked you, tallied the results and you all said beakers won, hands down. >> yeah! >> a landslide for the beakers. time for the final trade. around the horn. >> sales in china might see a light at the end of the tunnel. i like cater pillar. >> germany.

ewg, i would short it.