data about china overnight. that was good for the global markets. china was up big. and syria played a role today as well. >> sure. thanks so much for joining us. fast money is going to start right now. >> yep. live from the nasdaq market site in new york's time square this is fast money. here is tonight's line-up. apples emerging opportunity. why a cheap enough iphone is the key to tomorrow's big product announcement. >> tokyo 2020. the markets cheer the big olympic win, but should you buy the hype? and street buyite. this is what happened last time ross was on fast money. >> i'm neutral on stocks. >> why? >> find out why this chart watcher is changing his tune.

>> first let's get straight to our top story today. >> so what are you best bests right now to play the good times? it does seem like they are rolling once again? >> i think a couple of things happened today. it somewhat takes the hard landing fear of china off the table for now. then you had syria. so all of that led to a very positive market today. i think in the u.s. you are probably looking towards the next catalyst. we probably priced in too much of a taper. now you will have to get going into the fomc the u.s. market is probably a buy for a trade. >> what are the charts telling us? it has been a strong september so far. the s&p has recouped about 62%

of august losses. >> i actually don't like the united states. i think you are much better in the short term in emerging markets. they look much better against the united states. it bottomed relative to the s&p 500 three months ago. when you talk about emergeing markets, look at it relative to the s&p 500. bottomed out months ago and also looks better against europe. >> hello. hi. so september has been good? >> so far. we -- the technicals 16.25. here we are. i think we are the top end of the range. sit a pull back. >> karen, you have been

relatively more bullish than the rest of the people on the desk. are you more bullish for the u.s.? and whatever happened to the cat short? >> i am still short. you know obviously the better the data the worse the trade. i'm staying short for now. but i actually you know i'm actually starting to feel like maybe there is enough -- we cleared out hopefully some of the syria issues. we still have a few more issues out there. the budget is obviously one. i am getting a little bit more nervous. >> you're getting more nervous? >> karen has been on this. it has held this 88.5 81 level. but each bounce has been shallower than the last bounce. she is probably in for a little bit more pain here. but this 86.5 87 level is where you re-short the name.

6 6. >> so this rally today, you would have thought there should have been more of it? >> you know what? given the fact that we have held that level a number of times now, given the tape we have now, that is is a big moving part. i have seen it up more than that. it would encourage me. >> china is transitioning their economy. the export numbers were good. they are not going to have to infrastructure projects like they have in the past. i think you can short caterpillar caterpillar. caterpillar gets this. that's not right in this case. >> what do the industrial names look like? that got a huge bid. >> i wouldn't be short industrials or materials. i think you will be short the united states. i think you probably want to stick with financials and things like that. the market was flying all day. regional banks were down not flat. i think it's speaking volumes. >> you wonder if the regional banks were down because of what

was set about mortgage originations. wells fargo saying 30% fewer originations in this quarter. j.p. morgan saying that the decline has been dramatic. that i think is rear view mirror news. the refi business is going to slow. i think we will see a rebound in transactions, not refinancing. i'm long. i like bank of america, citi. >> both of the conference calls they both said if there was a dramatic slowing even in the refis it would have a dramatic effect on earnings. you think that other business is going to make up that much of it? >> i think the stocks are discounting a diminished -- one of them talked about negative continue bugs.contribution. i think what we will see is more consumer -- commercial consumer

lending. >> the point is for the past 14 straight quarters they have increased their earnings per share. they were able to do that in the past at least. >> since may you have seen a huge drop. >> we talked about it specifically. we talked about that as it traded back down. we said when it looks the worse is the time to buy this. that has prove on the be the case. it's up 34.5% today. is it getting ready to break out of the down trend? or is it like the cap trade where we are getting the rallies have come more shallow and more shallow. >> all right. so we asked tonight in tandem with the notion that global growth is returning, where in the world should we be investing right now.

what were you doing in 1977? >> that was a long time ago. >> i was 13 years old. i was in middle school. probably rocking out to some linda ron stat. >> your biggest since 1977. we got the china data. at this point, where in emerging markets would you be? >> here is is a place oto be. >> we have got to that tl. not that excited about that. when you look at something like the euro stock, you will find that it is really underperformed. if you want -- europe is acting like emerging markets. there is a lot of capital flowing in there. they will be subject to the

capital flow both good and bad. >> mike where do you like to invest in the world? >> the multiples are kind of the safety net that catches you if you are interested in investing there. there is is a wide arare of companies in there. you have zap, you have daimler which is also going to be on the german indexes. so when you buy companies, that's a little bit of a safety net. there was a legitimate reason for that. very important numbers for quite some time. their response to the credit crisis was not as aggressive as our own. >> quickly? >> like i said earlier, i think on a emerging market emerging

markets look better. anything industrial materials, anything like that on a relative basis look like bottoms. they look like tops. that's where we want to pay attention. >> in europe you mean? >> the whole space as equities. you probably don't want to stretch the shorts. you probably want to press the shorts. >> apples move could become its make or break moment. we are expecting more details tomorrow when apple reveals its latest iphone model. peter, great to have you with us. >> thanks for having me. >> what are you anticipating tomorrow? >> i think we're going to get two new phones. to us it's a slow news event. it doesn't change the long term secular dynamic.

frankly, the 5 c is around $400 will not cut it at the low end of the market. >> are you anticipating, a lot of analysts have not officially formally put any sort of mobile boosts into their eps models? that nost in the holiday quarter. are we going to get the apple halo effect? >> yeah unfortunately, wall street kind of follows what the stock is doing. and we're forced to move our ratings if the stock price gets out of whack with your target. instead of losing your rating the targets often shift around. i would expect stocks move yes. you will get the targets moving higher. but we think here the stocks are taking in a lot of good news and hope. >> i'm in your hope.

we talked about it. the event tomorrow you have got to sell the event. let's say you have got a five ten print in apple tomorrow. where does it go down to in your opinion? where does the stock trend back down to in terms of price? >> last year we had 5 million sold in the first weekend. if we don't get a number significantly better than that that would be important. if we get a number that is is a lot better it could go higher. our guess is that it doesn't i clipgs that. >> let me ask you something. beyond the first week in sales, what do you think is the next part of the apple story that needs to play out? >> the next part of the apple story is really the ipad. this refresh is going to be far more exciting.

i-pad miniwith retina and without retina. that flash is really exciting. so that event can be more of a positive catalyst. frankly these phones will not solve two major issues that apple is having. one is screen size and two is low price. the high end is saturated with something totally different. those products don't sell more phones. >> we will leave you there because the phone is breaking up. in terms of the trade here, it seems that everybody believe that apple will sell off. >> i think down 450. last week i thought it was maybe 440ish. you don't buy apple now. wait for the sell off. then you set up nicely for the ipad refresh. >> test at 450?

>> i like apple much better on a relative basis. >> before we head to break, let's get a check on afterhours movers. stratus is falling after the company announced an offering of 4 million shares. and starwood property trust also dropped down a 25 million share secondary offering down 2.33%. the latest news out of syria. why is one formerly very bullish technician ripping out his hair? plus mcdonald's rolling out its wings. will it be the next mcrib? one can only hope. you won't want to miss that. and just give them the basics, you know. i got this. [thinking] is it that time? the son picks up the check? [thinking] i'm still working. he's retired. i hope he's saving.

i hope he saved enough. who matters most to you says the most about you. at massmutual we're owned by our policyowners, and they matter most to us. whether you're just starting your 401(k) or you are ready for retirement we'll help you get there. (announcer) scottrade knows our clients trade and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time.

plus, my local scottrade office is there to help. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. voted "best investment services company." >> let's get a market flash. retail names moving in the afterhour sessions. >> we have a couple of names active right now. first up it's five below. those shares surging after hours. profits and sales beat estimates and the company raised its full year guidance. we are also stronger. margins also improved.

the other consumer stock this is the company behind brands like tommy hilfigure. and continued sales volatility especially in southern europe. >> thank you. five below. some might say they might be taking some share from the likes of a walmart or target. >> we will talk about that later. funny you should mention that. >> it's a good beat. this is is a ridiculous valuation here. but there is equally ridiculous shortage.

>> you can't help but think about a macies. >> and we should note that cramer has got an interview with the -- that's next hour on mad money. the god father was convinced that stocks had climbed even higher. he gave one of our bearish traders some advice. >> i can't believe you. i lived through the same thing in the early 80s. people kept complaining all the way up. all the way up. and you're doing the same thing. enjoy it. have a drink.

you have changed your tune. you are cautious. what made you change your view? >> okay. by the way, thanks for that little clip. brian, you're the best. okay? when the s&p went to all time new highs, everyone was happy. i was elated. i noticed something was wrong. what is different today is that the blue chips and i'm talking about many of the big components on the dough are not performing well. making new highs. i think the cues made new highs today. you will see that i think it has completed a major double top. that's walmart, disney coca-cola, american express,

mcdonald's. there is something wrong. you can't have a sustainable move without the generals. by the way, i like the broadness of today's rally. i think it will continue. >> that makes sense in terms of the dough. what do you see for the s&p 500? of course they are linked. this is -- these are 30 stocks. >> yes. but, you know they are the 30 largest everything. you can't overlook the dough. and yes, the s&p 500 has got components like apple in it and facebook which are not in the dough. and i think the s&p 500 could probably make it to a new high. >> how are you? >> fine. >> technicians are taking over. >> good. >> on the short term what would change your mind?

>> just as i said if the dough and the transportation both of those averages would make new closing highs, i would have to rethink my intermediate terms. i still think so unless we get new closing highs. >> i applaud you on being able to be flexible with the market and saying hey, this is what it is. this is what i see. is there a catalyst? that's a pretty dramatic drop. maybe i'm wrong. i thought you said by october. is that right? >> yeah. yeah. that's what i have been writing, yes. >> what's the catalyst? the technical catalyst that you're seeing that says that big of a drop? >> yes. that's a wonderful question. i -- this rally that we're in now is very spirited in the last couple of days.

i think it will continue i think most technicians will step back and say oh my heavens, more divergence. i need to see the new highs. >> all right. so you're cautious probably into october, ralph? if you had to pick stocks or sectors to be in from now until then what would they be? >> that's a great question. the ones that went down the least in august which are the small to mid caps down three, four, five%? i think they could do very, very well. i have this thing for semis. you have a bunch of names.

it has all this other stuff performing. >> you mean like a yelp or facebook? >> yes. >> we have noticed it. that is mature. >> sit a. >> if you look at ralph's levels, if they decide to taper and you see the markets sell off, that is a very big concern. that means what has been driving this market has completely changed. >> the big movers of the day. >> they did a bond deal this morning to pay for their vanguard health system. market didn't like it. it did reverse. so i think if you're in it you could use today's low as a stop

out point. >> talking for tesla. down 4%? jc? >> this thing is abc lutdly on fire. i don't know where we're wrong. where do you put your stop loss. you need to be disciplined. >> expaid ya up 2%. >> you know i think anybody who had to suffer the 20 plus percent drop that they suffered probably says big deal at 2%. it is interesting. here is a company that has been getting double digit top line growth that is now trading cheaper than the market. >> pop near up 31%. >> yeah 32% premium. a lot of people saying they paid too much. i don't think so.

>> the whole space recently. this point after the magnitude of this move i think i liked mma better. >> the company unveiling a new menu item today called mighty wings. the bone in chicken wings. >> what? >> breaded and seasoned are available in two varieties. drum drumettes and wingettes. will customers be too afraid to give them a try? we have a lot of wings on set. >> have you ever had a chicken wing. >> of course i have. >> are you going to have one of those? i'll give you five bucks. >> higher. higher. yeah.

>> you have got to wonder what this did to wing prices. >> speaking of which, what else is coming up? >> and next later on why exactly are the japanese crying?

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welcome back to fast money. it comes to us via palo alto networks. now remember this was a stock that rallied strongly into the closing bell. so the results while inline may have already been priced into a bullish trade. those panw shares were down about 13% on the year entering today's trade. >> i want to head over to breaking news on paypal. john? >> there is a new feature coming from papal. you can think of it as the cheers effect using blue tooth

wireless. wants merchants to have an easy way to know your name. give you a personalized service. allow you to buy items on your papal account without having to take out your wallet. of course your picture would be there. it doesn't really kick off until early 2014. the hope is that this will finally start to make the digital wallet more convenient than taking out a card. >> first of all, they will know their customers better and they can serve them better. if you walk up to a store and you're greeted by name and that store has the ability to see previous orders and ask you, the usual? it's a great service. so they can actually compete moreively with the other businesses. we bring the personal back to

shopping like it was back in the days when you used to put things on your tab and you would pay at the end of the month and know the store owner. technology is bringing personal shopping back. >> you're paying immediately. make that very clear. papal growth is kree. it's growing twice as fast as the rest of the company. this will be an interesting way to measure who is actually coming in. but if it's a big store like home depot it may be a challenge for them to find you once you actually walk in. got to mention this. customers will be able to opt out. melissa? >> the same identify a customer right away without them taking out their phone?

>> because this is using blue tooth you don't have to have a good wireless signal. pay al has got a decent sized base. >> thanks for that. sounds a little creepy to me. you walk into a store. clearly you don't know anybody there, and they say hey melissa, how are you? you want the usual? >> when i go to my qdoba, they know what i want. i have a usual. they don't want my grapefruit. >> and the people that get exhausted putting their wallet out on the table. if you're breaking a sweat doing that you got to get to the gym. >> coming up next tokyo gearing up for the 2020 olympic games, which could bring us all an economic boost to the country. details on how he is playing it right after this. and later on a look at some of

the biggest names blowing up the twitter sphere.

vo: two years of grad school. 20 years with the company. thousands of presentations. and one hard earned partnership. it took a lot of work to get this far. so now i'm supposed to take a back seat when it comes to my investments? there's zero chance of that happening. avo: when you work with a schwab financial consultant, you'll get the guidance you need with the control you want. talk to us today. >> welcome back to fast. we are live at the nasdaq market

site in new york's time square. goldman sachs resumed coverage with a buy rating. goldman is saying that walmart is undervalued. should you be a buyer? kick it off. >> you know i love goldman sacks and i think they happen to be right. i think the stock on a historical level is cheap to historical valuations. the sell off in the stock has been dramatic, yes. but i think that's because you have seen disappointing sales. i think the trend may continue. with the disappointing sales have been masking, though is the fact that their margins are getting better. margin improvement from walmart is a big deal. i think the street is underestimating the fact that margins are getting better. i think the fact that goldman initiated, walmart is presenting at their conference on

wednesday. i know it's a really boring story. >> i think walmart is like the new york jets. a lot of news a lot of hype but nothing but disappointment. all walmart does is underperform. look at the relative chart of walmart compared to the s&p 500. it's a beautiful down trend. i don't want to fight that. when you look at the stock on its own right, momentum was already rolling over. we like to call that a bearish divergence. >> it has underperformed. i loathe the jet bus they actually won yesterday. >> did they win or did tampa bay

lose? >> good point. >> i don't own it. i guess by definition yes. >> i actually like walmart. particularly if you think yields are going lower. 2.5%. >> what do you think on there? results at the end of the show. >> othe options trade at the end of the day was the put spread. they are spending 45 cents on something that could be worth 45 bucks. they are due to report before exploration in november. street was looking for. they are segt inging.

>> tokyo will host the 2020 olympic games. >> that news coupled with a big uproar sending japanese stocks higher and the yen lower. how should you play the surge in japan? let's bring in dennis. always great to see you. >> thanks. good to be seen as usual. >> you still want to be long the nikkei? correct? >> i still want to be long. it's performed very, very well. i think with a weaker yen and that's what you're going to get, that's what you have been getting. that's what you're going to continue to get. i want to be bullish of stocks generally. the nikkei has done well for me recently. do more of that which is working, less of that which is not. it continues to look very well.

>> it is probably a big factor. do you buy into the notion that they will be building new venues? it will therefore provide of gdp? >> there is no question that it will be good for gdp. absolutely. they will have to build new venues upgrade their roads and more. we know this will have to happen. with the exception of every other city other than calgary, everybody has regretted the fact that they have done it. it cost them an enormous amount of money. i think this will be detrimental to japan and by the time we get there they will wish that they didn't have the olympics. >> i like the long nikkei trade. get me to be short yen. the way i look at it there will be a lot of money flowing into japan to pay for all of this. all of that money that we thought was going to flow out,

they will keep knitit in house. >> i heard your argument. i thought about that argument and i looked at the way the japanese yen traded overnight. with the continued fiscal circumstances, they are the worst fiscal country of the g-7. no question about it. those problems are not going to go away. the monetary authorities have made it abundantly clear that they will expand aggressively far more than anyone else in the g 7, g-10 or g-20 which ever g-number you want to take.

i think you are looking at on those charts and crosses you are risking three or four big figures. >> just quickly, up 60% in the past year. does the chart look good? >> we broke out of a down trend line today. i find it hard not to like that. i think you could be in it above the 50 whether you are talking about the dxj or whatever the future may be. >> coming up next herbalife, are the charts pointing to a bigger move higher? that's next. [ indistinct shouting ] ♪ ♪ [ indistinct

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yo, yo, yo. aflac. wow. [ under his breath ] that was horrible. pays you cash when you're sick or hurt? [ japanese accent ] aflac. love it. [ under his breath ] hate it. helps you focus on getting back to normal? [ as a southern belle ] aflac. [ as a cowboy ] aflac. [ sassily ] aflac. uh huh. [ under his breath ] i am so fired. you're on in 5, duck. [ male announcer ] when you're sick or hurt aflac pays you cash. find out more at aflac.com.

>> welcome back. in case you missed some of today's top moments, here is a rapid fire recount of tonight's executive edge. >> i think the fed did a great

job putting out the fire in '07 '08. >> you think they are playing with matches again. >> yeah. >> i think congress is going to be forced to multitask. they need to focus on the budget. the funding. and they need to increase the debt limit. >> this morning carl icahn. an open letter to dell stockholders. >> i have not seen a situation with better corporate konchs. it's one thing. it's another thing this way. it is embarrassed that it was worthy of something.

the way they handled the whole thing. >> it is now official. worth $6 billion. the transaction will close in the fourth quarter. >> all right. lots to trade. what stands out to me is a comment about congress having to multitask between syria and the fed as well as the debt ceiling. >> i'm a little embarrassed. i thought it was interesting that they found that some of the luxury things trading so rich that it was better to sell than to go public. >> right. >> you make a point. that's the next real hurdle. right? that nieman marcus. >> he does make a point. >> all right.

>> the most generous chatter. herbalife continuing its march higher. >> i think this is is a beast. i think you nailed it last week. this is a great example. you need to buy the strength. a military fade. high and tight. and more importantly last tuesday this thing had a beautiful key reversal. consolidating nicely. followed through on wednesday. did it again. and let's talk about the players that are involved. bill ackman if this thing starts making new highs, crazy activity. i think there is something brewing. >> does this matter to you that there is a large shortage? >> i think that's great. >> i think that's fantastic. >> next up, the company says it still expects to be profitable

for the full year. >> the home builders have obviously fallen very sharply. the valuations are not all that compelling. they will probably do 14 cents this year. these guys are sensitive to rising rates. that will increase the cost. it's hard for me to get behind them at this stage. >> coming up next our viewers are talking about everything. we are trading your tweets next.

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 much is the official retirement age. ♪ ♪ the question is how do

you make sure you have the money you need to enjoy all of these years. ♪ ♪ >> not so fast. our traders are quick but not always right. bk made a bearish bet on pitney bowes. >> i still don't like this name. they make printing machines for stamps. nobody uses stamps any more. >> since that call the stock is up 17%.

>> i would still not be buying this stock but it keeps going up. >> let's get some of the tweets that you sent to our crew today. where do they stand in comparison to other card companies? >> they are a different animal for one thing. if you look at a mastercard and visa, discover actually has some credit exposure which these days is not a terrible thing to have. >> mike how will nokia stock do long term. >> what will be left is networking equipment business.

sit a better one than mobile devices do. what is left is is a better business. >> this one is for brian. what do you think is priced in right now for next week? small taper? >> $15 billion is your max. i think the market is probably priced in upwards of $25 billion. >> what about principle financial group? >> a huh. the stock broke down like everything else.

they have their analyst day this friday. maybe picking the space over raymond james. >> feelings on cre, the lightbulb? >> this thing got crushed last month. it found support from the spring. that's also at 38.2%. i think you could probably own it at 53.80. >> stay with us.

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in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it. >> we have tallied the votes. jc the bear on walmart won the street fight. the new kid on the block takes the prize. the bull gets nothing. >> nothing. >> as if you want it. >> final trade time. >> i like long deere. >> bk? >> gold. >> natural gas. >> karen? >> foot locker. >> the chicago cbi is very interesting. it has been breaking out.

i think it will go higher. >> are you going to eat a wing? >> if you ponied up. >> maybe tomorrow. thanks for watching. see you tomorrow. don't go anywhere. "mad money" with jim cramer starts right now. >> my mission is simple to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now. >> hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to save you money and my job is not just to entertain you, but educate you. so call me. 800-743-cnbc. if china and europe took us down then why can't they take us right back up?