again ready top pounce. particularly given the fact that 30% of the accounts in the u.s. are sitting in cash. that money eventually will want to go to work. and right now, there's no other game in town besides the stock market if you are looking for any kind of return or yield. that'll do it for the "closing bell" tonight. thanks so much for joining us, "fast money" begins right now. live from the nasdaq market site in new york city's time square, i'm scott wapner in this evening. here's what "fast" is following right now. is it time for the precious metal to shine once again? welcome back to "fast we've got a guest that says now money," live from the nasdaq is the time to buy. danger in safety, the hideout market site. spots you're used to may not be let's get a market flash. jackie is watching another name as defensive as they seem. we'll head off the charts to moving after hours. >> hello, scott. we're watching sears holdings explain. and tale of two cities. right now seeing a sharp drop in the stock may be up 80% in the the after hours session. past year, but not everybody's a that's after the company believer. reported a larger than expected two traders duke it out over quarterly loss. the company said that cooler citigroup. we're tackling the post game weather hurt its department analysis and big set-up for store sales. those same-store sales figures

tomorrow. a big friday it's going to be. down 3.6% also pushing the stock larry mcdonald, steven weiss, lower, weaker margins. cash on hand, $481 million this josh brown, and straight to the top story, the roller coaster quarter versus $618 million at ride for investors today. was today a buying opportunity, the end of last quarter. gentlemen? or should we be bracing for more and sears also in the process of evaluating strategic downside? alternatives to bolster the i think the market sort of liquidity position. answers that question, steve take a look at it there, down weiss. >> it was impressive today. nearly 12%. >> thanks. if you looked at the futures and a lot of retailers blaming the market went open this morning, you're running a little weather. >> cold weather. scared. particularly after the close which hurt them, that's one of yesterday would happen, but the the worst shopping experiences you could have. market's resilience is still they haven't spent a nickel on there and played out as we talked. their stores when i don't know the knee-jerk reaction to bonds when. >> sears exists to make jc penney look like it has its act going down, rates going higher together. >> if it didn't -- was going to be down. and when reason took hold, it >> hold on a second. traded back up. >> guys, 80% of the shares i think we're okay, i think we were kind of a flat market, maybe a little to the downside, outstanding are owned by five different holdings. not much in front of the this is not a widely held stock. all-important employment number that we're going to see the >> that's why the short hasn't worked. first week in june. >> doesn't that raise the stakes i wouldn't bet against lambert. so why just be out of the name? here? you think about the volatility we've seen in the last months in commodities and currencies, and >> i agree. >> can't be short this name. i agree.

this market that no one thought would get dented, if nikkei over >> he's too smart of a guy and he'll come up with a plan to 7.5% overnight. save this company. if you want to be complacent, >> well, our next guest made a bold call last year calling for the s&p to break out and here's that's a dangerous proposition. when you were starting a call what he said. that june number, in the first >> until the conditions are week of june. to me, tops are processes, we're right for the s&p 500 to finally not going to crash off a high. break out to new highs. >> that all-important number has >> i want to go through your been an all-important number for targets and make sure everyone's the last year and a half. clear on how you see things shaking out. so it hasn't changed. look at it every month and how over the next six months, 1,650, that number comes out. >> didn't the fed tell us that's 12 months, going to 1,700, and two years, we hit 2,000. the one number, that's the one number? >> that's all the fed's been >> all right. let's welcome back craig talking about. johnson. inflation hasn't been an issue. it's always been about jobs. he is senior technical analyst >> guys, if i could just weigh in, though, keep in mind, we at piper jaffray. welcome back. barely closed at yesterday's >> thanks for having me. lows. it's not such a huge great >> i guess you made impressive snapback achievement. it's great we weren't down calls here. another 1%. where do you go given how far but this was not a rip roaring and fast we've gotten here? comeback. >> well, we think we've seen the that's number one, number two, technical damage in areas like broader market finally breaking utilities is going to be topside of those 2000 and 2007 spooking people no matter how highs. this bull market, in our small of a part of the s&p that opinion, is confirmed. and we think that the bear is. keep in mind, a lot of scared market is officially dead. and we think we're entering a money entered the market via

things like utilities, they're new phase of this market where going to be worried or the we're going to start to see consumer staples, the next ones to go. those individuals who have been bearish start to capitulate and that's below the 200-day moving start to see money coming out of average. people are concerned. the last thing i want to bring money market funds, which is happening right now and start to to this discussion because i see eventually as rates begin to think it's important, everyone is talking about that possible rise, money come out of fixed double bottom in the ten-year income and start to come back treasury. into equities and then really people are concerned about these start to see this market work things. does that signal the fact that we've seen the best we're going and work very well. we still remain bullish. to see in risk-on. >> so you think the rally takes and maybe it's time to take a on more, i guess, quote, unquote pause on complacency. >> when you see the s&p close risky qualities about it, more down five and they were down 20 cyclical plays? people going into areas of the at one point, that is the market that haven't led? definition of rip-roaring >> absolutely. comeback. i think what you're going to you could say it's not, but it start to see happen is a lot of was. the blue chip stocks have that was a hell of a move. >> yesterday's candle is not in started to lead initially. i think you'll start to move the rearview mirror, i'm not into secondary stocks, not sure saying bear market, i'm not saying 20% correction. that's happened quite yet. but we are seeing sectors of the >> to be down a couple hundred market like the financials look points today and at one point it very attractive. certainly looked as if it was we think they're very underowned going to be -- at this point in time. >> this is a safe haven trade. we think we're going to see further rotation into the >> hold on. the third largest market in the financials as we're starting to world had a down 7% day. see a nice pick-up in the relative strength of our work if the dow had done the and attractive looking groups equivalent of what the nikkei and individual stocks inside of our work.

>> yeah, the technicals tell a did, we'd be at 11,700. good story, but they don't you can choose to manage money necessarily tell the only story. as though that didn't happen and larry macdondald is a trader you can go back to the playbook with us tonight on the desk. you were running last week, larry, what do you make of this that's your choice. technical call based on the kind all i'm saying is seasonally speaking and with whatever the of say warning signs that you've heck just went on in japan, if raised tonight? >> well, if you look at japan in you want to continue the old the sense that you had a 60% pop playbook, you're probably going to get more surprises, not less. >> larry mcdonald who watches in the japan vix. all asset classes as closely as 60% in one day. anybody does. you had emerging market, well, what do you make of the last 12 hours? emerging small caps in japan in >> well, if you think of how the last four days are down 23%. long bernanke spoke yesterday, so that tells me that there are one slight reference to dislocations in the market and these side effects brewing in qe the fact that the fed might be that can shock the markets. alluding to something deeper and i wonder technically how you than the mandate, that shook up look at that. >> yeah, craig? >> well, technically i look at the market. 50 handles from high to low. qe this way, right now done a that shows you how sensitive the nice job in terms of keeping market is. rates low that led to a >> the market from 10:00 to situation where we've seen a lot 10:30 was up 110 points, from of refinancing happening throughout the marketplace, the 10:30 to 11:00 was down 110 financial sector has certainly responded very nicely to that points. >> you made 17% if you did and the trends have started to nothing this year. improve. in fact, look at some of the do you have to scratch and claw

names in terms of like the brokers. a lot of those names are for another 2% or 3%? or can you say, hey, it's been a starting to act a lot more great year, we've got basically attractive. and if we start to see fund two years worth of performance flows coming back in, stocks already in the first five months, let me chill out a like credit suisse are poised to little bit, not have that 21st break out. the effects of qe have been stock on the books, not be working through the system, taking leverage positions. rising rates coming up, going to that's all we're talking about. this is not a change in the look like a steeper yield curve, which will be a positive for the market's character. it's a great market. and we're only talking about daily charts at this point, not weekly charts. entire financial sector. let's not act like what went on >> thanks for coming back. >> thank you. >> i agree with that call if the this week didn't happen. >> let's bring in dan greene market has another leg to it, it's going to have rotation. house, the chief global we've seen it in technology, strategist who, by the way, said cyclicals, industrials. he bought the open this morning. to me, johnson & johnson trading so you're a believer in this at 15 times next year's earnings rally. >> it's not that i'm a believer that are expected to grow in the rally, i'm a believer forever at mid to low single that declines have never gotten digits doesn't make sense. much more than 2% or 3%. you're going to need to see the rally broaden out. >> anybody worried about the when the market was down on the street which was kind of playing open, 2% or 3%, i bought that catch-up starting to get too open also. bullish. goldman comes out with big calls this is very much a short-term, nothing to do with ptig's more in the last few days. secular view. this gentleman with nice numbers it's just that we don't get more over the next, you know, 12 to than 2% or 3% on the downside. 18 months. >> i'll go back to wells fargo

there might be something different going on now, but the fact remains is that these declines have demanded to be in that strategy. looking for 2,000 on the year? >> to answer your question, bought and they've been rewarded. >> let me throw this out there, though, what they're basically if the market gets so spooked by saying is all the same. if you look at the sectors they any mere mention of tapering or like, the sectors they don't. pulling back or anything like that, those statements are only they're all now on the cyclicals, industrials, materials bandwagon or getting going to get louder and more there. and i think that's important. often in the weeks and months ahead. >> no, he's starting to get to how is the market going to deal with that? the more industrial trades. >> the market hates uncertainty. you're seeing all the strategists do that. what they're saying is this it was clear as mud, as far as market has come all the way with i'm concerned, that's why we had that -- >> there are those who said that one hand tied behind its back, bernanke talked out of both one-half working and the other sides of his mouth yesterday. half sitting out. they're all saying that this is >> if i can add quick, greg this the time that the more cyclical areas start to outperform. morning on "squawk box" i think that makes sense. >> well, with the volatility articulated a view that a lot of we've seen in the market since us are subscribing to right now. chairman bernanke's testimony they're trying to be clear as yesterday, you might be attempted to seek out stocks that are usually considered mud. there's a belief that the fed is looking at the strength of the safety plays like staples, but rally and saying maybe this is a are there dangers lurking in these names. let's head off the charts with little too strong. >> if they want to be clear as mike. what do you see? >> it's interesting. mud and take a little of that, the staple stocks do have a few you know, some of that fire out of there, i mean, to me, things going for them. their businesses tend to be that's -- if that's what they're extremely stable and unaffected

trying to do, let it happen. i don't think you have to buy -- often by economic downturns. >> by the way -- the implication if you sell things like toilet paper, people will continue to that things are a little too buy it. of course, they also have been strong should not scare you out consistent growers of dividends of stops, if anything, it should and paid them very handsomely force you to look at the stops over the past couple of years. that makes them appealing to are yet to move. we've been talking about cyclicals on the show. people on the yield chase trade. if the market is too strong for and inflation adjusted bond element in that, as well. continued $85 billion worth of monthly purchases, you might people buy these things thinking they're going to continue to see want to take a look at a higher dividends in the future. the problem here is, though, the chemical stock. value of the stocks has risen >> how is the market's stomach going to be over the next quite sharply as we take a look several months? from the market lows we saw because there's going to be more about five years ago. fed speak. about five years ago, the broad >> a great warning sign going into this was the elevation of market trading about 13 times earnings and the staples were, as well. you take a look at where they are now, though, and these vol, around 1150, 1,160. things are trading at about 22 times earnings. i take a look at the basket of if you think about the market's five stocks. reaction, i think that there was it was in this and also colgate. a lot of nervous hands out there waiting to sell into this. >> yeah, mike, what do you make now, if you take a look at what happened recently with proctor & of everything? >> yeah, no, i think what larry gamble, they disappointed on was just saying was actually earnings, this went down about spot on. what you've been seeing goes to 6.5%. still, this group is trading at a good multiple over what the josh's point also, which is as

you see the volatility index market is trading at, and i think that's probably going to creep up in a rising market, what that suggests is people are revert. i don't think the overall market is expensive, but i think the getting a little bit antsy. staples are. i think this might be a good and this is a good time of year time to start rotating out of to be antsy. them. >> what did you notice from the between may and october is not options action in these names exactly the best period of today? >> well, you know, it's performance typically for the equity markets. interesting, dan has highlighted so then you see something like these types of trades for quite a few months now. what happened in the nikkei, you today, one of the things we were realize that people are like long-tailed cats in a room full seeing were buyers of the july of rocking chairs and you've got 55 puts. to figure that volatility will be higher and another spook comes along and you'll see l low volatility names. people start to sell it. they were costing about 57 cents >> i've got to make an important f. you own the stocks, i think you can finance these puts with point about the vix here. the dividends you're collecting. >> quickly. >> it's up 15%. otherwise, just sell them. that's it. three 50% moves in the last the broad market or something underperforming. >> you think the staples are seven months. people are not nervous yet. stretched, don't you? there's complacency here still. >> i do. >> there are those looking at i've thought that for a while. what happened in the bond market that's the safety play, it's the today and that move above 2% on brand play. i think you've got to go to other places, not to the the ten-year and try and figure out what the tell is. greenhouse, what do you make of commodities, though, look at china's number under pressure that? >> let me add three important for quite some time. points. financials, go with what's working. the vix, we're looking at a chart of it, that's not a great growth stocks out there. so sodastream. threatening level in terms of green mountain's run. >> anybody want to take issue what history suggested, past with that?

are we in agreement? history or recent history. staples looks stretched. with respect to perspective about what happened in japan, >> you can broaden it out, go to let's not forget this is a energy, i think, look how well market in local currency terms those names are acting on a that was up 75% off the lows, price basis and they have not some stocks were there -- kept up with the broader market >> up 50% year-to-date. over the last couple of years, >> up 50% year-to-date. some stocks up 200%, one was up that's a ripe area to find cheap stocks where you could see, 10, 500%. still only takes back about 10% 15, 20% gains. i like most of the larger ones. of those. >> there are people who will be >> all right, well, coming up, doubling down. >> one more quick point. >> the mother of all buying cnbc's jane wells on the oil opportunities in the nikkei. company that thinks fracking >> still above the 20-day that's could be overrated. how much it had run recently. >> yeah, absolutely. >> reporter: well, at least in california's monterey shale which could have four times as >> still in a bull market on a short-term -- much as the bakken. >> and the last point i want to next up, the second largest oil make because i think i brought a chart. this rally we've had here in the companies and the black gold united states ran about 23 -- rush 2.0. after the break. ♪ let's say it ends now, ran about 23%. if you compare this to what happened last year, the rally off the november 2011 low was [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] about 2.5%. there's nothing forceful about ♪ this rally. there's the chart. [ male announcer ] when the world moves... >> all right, well, we want to futures move first.

get back utility talk for a learn futures from experienced pros second. underperforming the market this year, dropped more than 3% in with dedicated chats and daily live webinars. the past month. let's take your position on the and trade with papermoney to test-drive the market. utilities. weiss? >> i'm not involved in ♪ utilities. i'm not there. all on thinkorswim. i don't think there's anything to be drawn from it. from td ameritrade. take a look at at&t which has been a terrible stock for the last few weeks, that was up today. i think a lot of people have hidden in utilities. >> are you saying that recognition that the yield play still exists? >> i think it does. you're still dealing with the 2% ten-year. there will be people coming out of that. i think bond yields will go up 2.5%, which is a major hit to your principal in bonds. i think the equity market -- look, i'm not saying 23%, you know, trough to peak is nothing to worry about. i've been looking down 1% to 3%. i'm not getting emotional about. i'm not letting today's action or yesterday's action or japan which is way too high in hyper move. i'm not letting that dictate what i do.

i'm still reasoned, i still look at the global fed's easing. i still look at companies that are as lean as they've ever been with potential explosiveness and earnings and revenues as the economy comes back. that's where i'm focused. >> i agree with weiss on the bigger picture, which is that the market is still fine, the trend is still up. on utilities, let's keep in mind, a lot of that is bond money that crept into the stock market. and if anything, i think it's healthy to see that market sell off. trading at 17 or 18 times earnings. a huge, huge premium to the historical metrics that it should trade at. and i'd like to see that money find its way elsewhere in the stock market, not just sit parked in what people thought was a bond proxy. thank you orville and wilbur... >> i would add real quick, there's a question about whether ...amelia... that money is stickier than we neil and buzz: think, that people aren't going to be spooked out. for teaching us that you can't create the future... they're there for the yield as weiss insinuated. by clinging to the past. >> thanks for coming in. >> thank you. and with that: you're history. >> time now for pops and drops. instead of looking behind... the big movers of this wild day delta is looking beyond.

on the street. 80 thousand of us investing billions... jc penney your old favorite, weiss, getting a pop. in everything from the best experiences below... >> it has. i have no position in it. my inclination is to be short. to the finest comforts above. there's still a lot of trouble we're not simply saluting history... here. take a look at sears reported we're making it. after the close. bottom line is, you can't deal with a retailer that's financially constrained. the only good news here is that sales have dropped so much, 30%, that it doesn't mean they're going to make money any time soon. >> give me the scoop on cliffs. >> obviously, those producing, it was a bad day. but iron ore prices also weak and these guys continue to face head winds in the forms of rising costs and regulatory pressure. not a good time to get into these. >> nothing not to like about dollar tree, they are upping their store count. they are raising square feet, raising sales per square feet technically speaking, new highs, higher highs, i like everything about it. i'd stick with the trade. >> give me the logic behind

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let's get a quick market flash now. jackie deangelis has a name she's watching. >> good evening, scott, we're watching pandora, jumping in the

after hours session. at this point, higher than 9%. top line, 128.5 million, slightly better than expectations, the bottom line, a loss of 10 cents a share. but highlights from the quarter include that mobile revenue and nearly doubled. and investors really like that because mobile, of course, is one of the most important revenue sources for the company. and, of course, that is because users are listening to music on their smartphones. this stock has been hot this year, up year-to-date, up more than 100%. >> thanks. >> so they're figuring out their mobile thing, as well. like most others are trying to do, j.b., what do you do? >> they're crushing it. i'm a user and i've liked the stock for a long time. this is one of those names where continues to work, one of the word got out that apple was reasons why, they've got a ton working on a competing service of cash, they're putting that to and they trashed it. work for shareholders, in but it turns out apple's not addition to earnings growth, invincible as we've learned in they're shrinking the flow. other areas and i think pandora, i think it's cheap enough to get there's plenty of room. in. >> all right. up next, who won the street one thing i want to mention, fight, we've tallied the twitter look at stocks like aol, they're votes and your first move one of the few companies to tomorrow when "fast" comes back figure out local advertising.

from time square. [ female announcer ] it's time for the annual shareholders meeting. pandora is another. they've figured out local advertising on your phone as you move about the city. i think it's definitely got promise and i would stick with the stock. >> let's get back to the big market picture. there are new signs a liquidity bubble could be emerging. it's a situation that's getting ♪ there'll be the usual presentations on research. larry mcdonald's attention. and development. why? >> if you remember '07, there was a period like this, markets some new members of the team will be introduced. are roaring, but the biggest risk in '07 was the wall the chairman emeritus will distribute his usual wisdom. street's balance sheets were at risk because of mortgages. and you? well, you're the chief life officer. now, here we are all these years you just need the right professional to help you take charge. later. the threat really is the little guy that's exposed to the yield ♪ thirst, the yield hunt. if you look at the amount of capital that's flown into not just utilities, leveraged loan funds, high-yield funds, it's up 500% from '06 levels. so it's the most crowded trade in the world. florida, in the land of, you know, the retirees, that's a really dangerous spot. and the portfolio managers that

manage that capital don't have available out there. the liquidity we had back in i knew devry university would give me the skills '06. the street balance sheets that i needed to make one of those tech jobs mine. because of dodd/frank are much we teach cutting-edge engineering technology, lower. at the end of the day, qe plus computer information systems, networking dodd/frank equals a big, big and communications management -- the things that our students systemic risk. some point in the near future. need to know in the world today. our country needs more college grads >> weiss, what do you make of to help fill all the open technology jobs. that? >> i don't disagree. we're seeing housing prices to help meet that need, here at devry university, really inflate. we're seeing the consumer is now we're offering $4 million dollars in tech scholarships back, not exactly flush, but for qualified new students. money's pretty easy. learn more at devry.edu. the only difference is, however, that they haven't been able to borrow. loan growth has been nothing. see, i knew testosterone could affect sex drive, so it's really been housing growth that's helped them. but not energy or even my mood. i don't see the same risk for the bubble because you don't that's when i talked with my doctor. have the leverage in the he gave me some blood tests... showed it was low t. institutions or with the individuals. that's it. it was a number. >> when these guys walk into my office to pitch on floating rate [ male announcer ] today, men with low t have androgel 1.62% testosterone gel. loan funds or secured loan funds as they want to do a lot more the #1 prescribed lately, one of the things they topical testosterone replacement therapy always cite is that chargeoffs increases testosterone when used daily. have been so low and defaults women and children should avoid contact with application sites. have been so low that it's almost like don't even worry discontinue androgel and call your doctor about it because this paper if you see unexpected signs of early puberty in a child, tends to roll over very quickly.

or signs in a woman, do you share their attitude which may include changes in body hair about default rates? or a large increase in acne, are we not seeing the bigger picture? possibly due to accidental exposure. >> i remember the same kind of comments about the mortgage men with breast cancer space. or who have or might have prostate cancer, >> same pitch. and women who are or may become pregnant or are breast-feeding, >> you can make the same point. the point, i think the danger is liquidity. should not use androgel. in other words if the street serious side effects include balance sheet is 80% lower than worsening of an enlarged prostate, possible increased risk of prostate cancer, it was in '06 and you have this huge, huge pile of capital lower sperm count, swelling of ankles, feet, or body, that's flown into utilities, loans, that means that even if enlarged or painful breasts, problems breathing during sleep, the loan is a high-quality, and blood clots in the legs. senior secured asset, if the tell your doctor about your medical conditions and medications, especially insulin, fund manager has to exit because shareholders want out as we saw corticosteroids, or medicines to decrease blood clotting. yesterday with that utility fund that dropped 7% in five in a clinical study, over 80% of treated men had their t levels restored to normal. minutes -- >> really on to something. particularly in the high-yield talk to your doctor about all your symptoms. market. we've been taking assets out of get the blood tests. change your number. turn it up. high yield. however, we sort of feel in the androgel 1.62%. mortgage back security space, there's still a lot of room in the credit sensitive mortgages and the prepayment sensitive welcome back, we've tallied mortgages. and until the middle class house the votes and josh brown won the street fight. >> that's incredible. i want to thank steve for -- reflates enough so that the middle class buyer can refinance at lower rates, we're not going >> we'll provide counseling for steve after the program ends.

to see the consumer based do you have a final trade? spending that the fed wants. >> i think there's a secular so there's still some time here, change in the mortgage space. the fha balance sheet is though. i agree with you, but i don't think it's '07, it's like '05/'06. >> we've got breaking news in d.c. my mission is simple, to hampton pearson's following that. make you money. >> yeah, we've got a couple of i'm here to level the playing developments relating to the irs field for all investors. scandal and the controversy over the targeting of political there's always a bull market groups, conservative groups, if somewhere and i promise to help you will. this afternoon, senators carl you fine it. "mad money" starts now! levin and john mccain sent a letter to the irs calling on the hey, i'm cramer. active director to basically have lois lerner step down from welcome to "mad money." welcome to cramerica. her job as head of the unit other people want to make overseeing that application friends, my job is to make you process. now there is word to nbc news money. call me 1-800-743-cnbc. from a source that, in fact, lois lerner who we all saw take before i came out here tonight i the fifth amendment yesterday did something revolutionary. has been placed on i went to google earth. administrative leave. back to you. yeah, google map, a >> thanks, hampton pearson down in d.c. larry, finish your thought. >> well, i think that -- >> again, this liquidity bubble

conversation we were having. >> talking to clients, talking to investors. i think 90% to 97% of investors are just hell bent on the dual mandate. the fed is not going to exit qe until you get the inflation, the unemployment. that data is before the april debacle in commodities. the pc is probably going to head down. you're 100 basis points away. i would not focus on the dual mandate. i think the fed when it does exit as bernanke alluded to yesterday, i think it's going to be because of this dangerous cocktail of side effects they've created again. >> let's talk about gold. finding a bid today as investors flocked to the precious metal. is it gold's time to finally shine again? we're joined by francisco blanche. welcome, thanks for coming in. braving some nasty weather out there in time square tonight. why should this be gold's time again? there are so many signs that gold has more pain ahead.

why don't you see those? >> well, look, i think in the short run you can argue if interest rates go up from here, there's no doubt gold is going to go down. but i think this market is very fickle. it's very qe dependent. we've been hearing that in the previous conversation you've had. so, you know, i think obviously if the fed goes and removes quantitative easing, gold's going to have a bad time ahead. can they really do that? and i think the japanese market has sent a big warning. right, if you start to doubt qe, if the data comes back, you're going to have to keep printing or even put more money into a system, right? and that's kind of the support point for gold. >> gold's been going down even as rates have remained low, though, gold's biggest problem may not have to do with rates, it may have to do with stocks. and stocks continue to go up, gold seems to be losing more of its luster. >> right. no, i agree. and i think the short run risks are probably to the downside. but i think in the medium term,

we might realize that we need qe more than we realize. remember, every end of qe, qe-1, qe-2 has come on the back of a significant move down in equities, also a rally in bonds and gold has regained the footing. i don't think there's a clear direction. the bouncing down overnight shows that if we have a bad equity market movement, whether it's japan or somewhere else, investors are going to get back to gold. and i think that's the main point we've learned over the last 24 hours. >> give me the read on oil. >> well, the read on oil is very simple. the global economy is slowing down. one of your guests was mentioning that inflation has been having lower economic activity in emerging markets has been weakening and we had the pmi data from china so, i think, you know, broadly energy markets are experiencing downside pressures. i'm a little bit concerned about

more downside risk in oil. and i don't think that's going to change until we have a catalyst that gets economic activity ramping up in the emerging world. and right now, there doesn't seem to be any. >> yeah, let's get the traders involved in the conversation. as francisco thinks that gold will shine again, i mean, the hedge fund community that you're so involved with still believes that what we've seen, this pullback has been a healthy pullback in gold and they're sticking by their guns. the paulsons of the world and people like that. >> yeah, we talked a little bit about the conference. there's definitely room in people's portfolios for gold. other assets are doing better than gold and you saw a tactical asset allocation shift away from gold. but i think he's ultimately going to be right. the day, again, will be where gold is a good trade, if you will. but i still stick with the buffett philosophy that i'd rather own cash yielding things

over long periods of time rather than this quote unquote hedge. >> i think what today pointed out was that gold was an emotionally fear trade. it doesn't have a linkage or correlation with inflation. if you had something going on today that was going to hit gold, it was actually the fed talk that got the market down that we're going to start tightening. okay, that's when gold should've traded down. japan traded down, futures looking lower and china looking out and that's why gold spiked. >> i think you're right, and i think there's a dollar thing happening here. strong stocks and a strong dollar together. and then gold on the other side of that seesaw. that's a relatively new dynamic. right now i would just be hands off there. >> francisco, thanks for coming in, again, appreciate you braving that nastiness outside. all right. ahead on the "fast money" show, this so-called safety stock that

could put your portfolio at risk. plus, why one big oil company thinks fracking could be too much hype. but first, citigroup shares under pressure for the first time in a while. buying opportunity or warning sign? weiss and josh brown will duke it out when we come back. ocean . the peruvian anchovy harvest suffers. it raises the price of fishmeal, cattle feed and beef.

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just so i can get on e-trade. check my investment portfolio, research stocks... wait, why are you taking... oh, i see...solitary. just a man and his thoughts. and a smartphone... with an e-trade app. ♪ nobody knows... [ male announcer ] e-trade. investing unleashed. in just about three hours time, japan's nikkei will open for business after plunging 7.3%. in singapore with the latest. >> it was such a shock yesterday, we're so accustomed to coming in and seeing the nikkei edge up and up nearly

every day. it was a shock yesterday particularly because we were up 2% at one point in the session and things fell apart in the afternoon. a perfect storm, of course, we had the strength in the yen against the u.s. dollar as well as spiking jgb yields, ben bernanke's tapering comments as well as poor economic data out of china. lest take a look, though, because there's an anticipation when markets open up in about 2 1/2 hours from now in tokyo. they settled up .8%, about 110 points from where the nikkei ended yesterday after that huge drop. this is some indication we could see a rebound, albeit, a mild one. that's about 2 1/2 hours from now. let's get a quick check on the japanese yen versus the u.s. dollar to where that stands, it was earlier this morning above the 102 level and yesterday did drop below that 101 level, but we are currently sitting at 101.93, a quick look at the jgb yields, as well. a big part of that storm yesterday was the ten-year

spiking to 1%, particularly bad news for financial institutions which hold a whole lot of jgbs, but yesterday the boj stepping in and buying some 7.8 billion u.s. dollars worth of five-year jgbs and announcing a massive open market operations to up about 2 trillion yen, about $20 billion. now, i want to show you the nikkei 225 from about six months ago, yesterday's drop, 7.3%, but after that 7.3%, that only takes us back about 11 sessions. that's where it was. and since it was unveiled last november, the nikkei up about 60%. so, scott, as we can see, a big drop and we will certainly be anticipating today's open, but a lot of analysts say this correction was well in the works. >> thanks, we'll be watching it closely from new york. you can bet that. all right, citigroup shares which have been soaring over the past 52 weeks leading the decline today among the biggest

banks. there's growing concern the fed will cut back on the bond buying program and that could hurt financials. the situation kicking off a street fight, trader steve weiss is our bull, josh brown is the bear. weiss, make your case. >> i bought some today when the stock was down. adding to my position. here's the story, you're seeing a much improved company. you and i spoke when we were down in florida, he's the guy to do the job, he's a lifer there, but in this case, it's a great thing, he knows where all the bodies are, it's been a very fat organization and you see it in terms of the financial metrics. you've got return on average equity at 8.3% up from 6.5% year-over-year. that's great performance, you're seeing in book value over $50. for me, the stock's cheap stock. i know it's run a lot but so have other banks. >> i agree with everything you've said. you've done the work on this name and i don't hate it. the problem is, the stock just got turned back and i think you're going to see a trade, at least down to the exponential

moving averages. you'll get a better crack at this, especially given the overall set-up of all of the bank stocks right now, now that uncertainty and fear has been reintroduced into the market. the thing i would caution you here is simple. this thing is up 27%, just year-to-date. forget about the double over the last year, that versus the sector. >> pandora up 100%. >> two different stories. >> this is up 27%. >> not the debate we're having. we'll have other debates on other shows. >> you say your stock -- >> stop. you've got to be fair. >> you're overpaying, i think, in the short-term, you will have a better entry and then i'll agree with you. >> okay. i'm going to go with fundamentals, and to me it's cheap even though it's moved up, it's still at a discount. >> six times earnings in 2007. it was cheap then too. >> that's the last word. >> you have a better entry. >> guess what -- i didn't own it in 2007. i own it now. >> you'll get a better chance. >> guys, we good? >> all right.

>> yeah. >> dan nathan? >> i don't think it's voodoo technicals. i don't buy things at all-time highs. >> you're an options guy. >> the stock's up since mid april, i agree with josh, you're going to get a better shot to buy it in my belief, but you both are agreeing on the fundamenta fundamentals. >> why wouldn't you give it a chance? >> i'm not sure it'll get there. >> i'm not sure either. but the set-up, what i'm telling you. a better probability. >> do you realize -- >> scott, if one of these guys has a heart attack, i'm not giving them mouth to mouth. >> do you realize how impaired european bank balance sheets are? >> do you know why the stock went down? >> wait. do you know why citi pulled out today? the real reason? the most international of all the -- >> let me throw this out there, i disagree -- i'm going to take it back. >> i don't think it'll matter. but that's why. >> let me ask you this question. >> hey, that's over. i disagree with the premise, almost, that we laid this out in saying that there's growing concern that the fed cutting back on its bond buying program is going to hurt the financials.

>> wouldn't it -- >> financials? >> interest rates go up a little bit, good for loans. >> i don't think that's the reason to be afraid of citi. i think you buy citi, but not right at this level, it had a tough day, i don't think it's resolved itself, and quite frankly. >> it wasn't so tough. >> look at the trend and the chart. clearly, clearly sellers at the $50 level. i would chill out. >> there were buyers there too. >> how about we do this? >> let's see who you think won the fight. tweet us. we're going to give you the results at the end of the show as we always do. coming up, why there could be some danger signs lurking in the so-called safety stocks. and the bulls stand their ground. the top reasons why this market isn't flaming out when "fast" comes back. ♪

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