tomorrow, 7:00 a.m. first quarter as a public company. always interesting, always volatile. >> much more on squawk alley. thanks for being here. "fast money" is coming up in a few moments with melissa lee and the gang. what's on tap? >> back trans and bodily functions, ie, the vomiting camel. >> i'm so happy to turn it over to you at this point. >> it's a two humped camel. anyway, "fast money" starts right now. live from the nasdaq market site in new york city's times square. herbalife and sprint both getting killed in the after hours session. are these dips buying opportunities? we'll debate it but we start off with the calm before the storm for stocks. a quiet day for equities before tomorrow's alibaba earnings report. thursday's central european bank meeting and friday's job report. most of the strength was in the dollar and oil prices with closed at the lowest level in more than two years. along with this track the xle

which tracks oil equities. guy, what does this all mean? we had record intraday highs. >> which is fantastic. i'm in the camp that the oil market is pointing to deflation and a slow down in global growth. it's meant nothing in terms of what the s&p has done. look at goldman sachs today, three-year high. the chips have been off to the races. i think oil is trying to tell you something. people will tell you this is positive for consumer. maybe, but i think it has far-reaching ramification that is trump that. i think it's actually a bad thing. >> i think every single market besides the u.s. stock market is actually being ration yal and saying the world is slowing down. the reason the u.s. stock market has done so well are some other circumstances out there where you have japan now coming in and buying stocks there. you have people trying to get ahead of the buybacks that are going to resume this month. to me it looks like it's fairly vulnerable up at these prices. i wouldn't be adding more to it.

people say it is a lot about supply, but it is about demand. look at the numbers from china, very bad pmi numbers. look what's happening in australia. france looks like it's in recession, italy in recession. when you look around the world, things are slow except for in the u.s. >> at the same time, that sets us up for a relative trade. the u.s. and the u.s. equity market looks a whole lot better than any other place in the world. >> it's been the best house and i continue to think it's the best house. the one issue about the oil thing, look at the end of the day and how oil traded. that to me once again looks like the whole margin call issue we've talked about in previous times where we have seen oil final hour or thereabouts of the day, suddenly we see oil crash. it went from $80 to $78 in a split second it seemed as if. so you look at that. i'm not even sure we can tie this right now to demand. i think we are seeing folks that are getting blown out in energy that were holding on, thought $80 would hold when it didn't today. again they got hit. look at the volatility index underneath 15. you're sitting there hovering between the 50 and the 200-day

moving average. buy protection right now. that allows you to stay in the market. the u.s. continues to be the best. >> it's still the best but i think it's a sucker trade. when you think about the dollar and the strength we've had and you look at the course of ecb and the boj, they are basing their currencies, i think a strong dollar will be a massive headwind for u.s. mul multinationals. i don't care what the ecb does or doesn't do. let's see the jobs data. we have a fed that's data dependent. i do not think they will be doing a lot other than jaw boning rates lower. if we get a situation where the u.s. economy stalls because i don't believe we can decouple from weak europe and asia and you have a strong dollar because they're out there buying every bond that exists, i think we'll have a hard problem for that relative strength large cap u.s. -- >> why are we all twisted up about the strong dollar. isn't the historical correlation

strong dollar, strong u.s. equity market? >> the strong dollar is giving us a disinflationary environment and we're in the middle of a currency war. there's good deflation which means we can buy a bmw cheaper than we could or in dan's case he can buy a hyundai cheaper than before. but people say why am i buying the high hyundai? why not wait a month or two and demand goes down. that's the problem with a strong dollar and the problem with the bog. i said it reminded me of bear stearns because it shoots deflation around the world and you end up in a bad deflationary spiral. >> give me a trade. >> you buy treasuries. tlt. >> you're going full out safe haven. >> tlt -- >> you're preparing for the worst. >> pretty much. i'm not short the u.s. stock market primarily because the money flow is coming in but i get a 2.5%, 3% yield. that's going to look stellar if

the stock market even goes sideway approximates. >> financials, chips, pharma. if you go to pharma, you will get the yield much better than the ten-year. those names continue dog to go to the upside and the chips are pushing against those highs. when you look at all three sectors, they all traded very reasonable valuations and there's growth. you combine all of that they'll outperform the ten-year. >> do we buy oil equities. >> i've been trying to find the bottom in exxon unsuccessfully. i thought the last quarter was pretty good. the answer is probably no. pete makes a good point people are getting flushed out on margin calls. i don't think it takes away from the fact that the oil market going lower is for bigger reasons. >> alibaba hitting all time highs. they release their first earnings report since going public tomorrow morning. neil doshi leads internet coverage. a lot of internet stocks since alibaba has gone public have

done poorly. names like google and facebook and twitter, et cetera. what do you expect because you also point out that the consensus on the street is really divided between the banks are part of the syndicate and the banks that were not part of the syndicate. it might be a little lumpy this quarter. >> absolutely. there's definitely been carnage on the internet said with facebook, ebay, amazon and google with everyone missing or guiding lower. with alibaba there's been a flight to safety. you don't have the fx risk from europe. you don't have some of the other risk that is some of these other big platform companies had. we're expecting a pretty strong quarter. if you look at the guide, the guys on the syndicate have higher estimates versus the guys who weren't on the syndicate like us. i think it might be a little lumpy but our guess is if these guys come out with strong numbers above where the syndicate is, you know, i think we could see an upward trajectory in the stock. >> don't you think there's a good case to be made that the syndicate was so large, there

were so many bracket banks on that syndicate they spent a lot of time with this company that they may have a very good sense for what the quarter looks like and what the guidance looks like as opposed to the situation in facebook in may of 2012 where the lead underwriter had their research analysts actually suggesting that the company was not going to kind of beat estimates out of the gate. don't you think there's a good chance that what you see is what you get? that there's not a whole heck of a lot that changed in the road show since august and early september? >> it's possible. facebook also had a large number of banks that were on that deal as well, and, you know, so we'll see what happens, but our guess is numbers have been conservatively, you know, presented to the syndicate banks and so there's probably kind of a narrow range in which the syndicate banks are at and my guess is given some of the tailwinds we've seen in china commerce, especially on the ecommerce side these guys will have a strong quarter. 11/11 is going fob a huto be a catalyst for the stock.

we're looking for 20% to 30% upside just on that day alone. i think, you know, going into december quarter it could be really nice tail wind. >> could that be a problem for the quarter that they will be reporting tomorrow in that it could push demand out as opposed to, you know, people might just wait and wait for singles to actually do the purchases. >> it's possible. we don't see that too often with black friday. people don't necessarily wait for a couple months to buy something. maybe they do, maybe they don't, but the idea is the prices drop at such a reasonable level or such a great level that it kind of sparks demand. so i think that's what we're expecting as well. >> neil, great to have you with us. thanks for your time. neil doshi. what's our trade? >> it's been yahoo!. i think pete has been long in baba and he's been right. the trade has been yahoo!. now you're at levels though i think you're flipping a coin. a lot of people think its headed to 50 and it may get there. i think given the move up to 46.50, if you have enjoyed this

move in yahoo!, dwryou'd be tak profits. >> this is the first earnings report, we don't know how they guide. we don't know if they will be conservative, we don't know if they will drop a spending bomb. >> there's plenty of question marks going into this boo aba n. there are a lot of unknowns. very similar in some ways to facebook and twitter except for the fact it's a mature company that's very, very profitable and by the way, you want to compare them right now to amazon. take a look at the operating margins of amazon 0.12% and the operating margins of baba. i think this bodes well for baba. i think they crush the number and i think the stock -- >> i think that's like the biggest fallacy in terms of comparing amazon with alibaba. >> it's just one aspect. >> baba's operating margin is 41.5%. that he don't carry inventory and that's why amazon's margins are so lousy. >> and they're exposed to a completely different consumer. i think alibaba is a risk. when you look at how china is

slowing down, nobody on the street is considering the fact there's actually a slowdown going on in china and this is a retail company in one of the largest economies in the world that is slowing down. even if they beat earnings, how can that be sustained? >> but, what mel just said and she nailed it, i don't like to give her too much credit so often, but she was talking about -- people used to say that ebay was like anti-recessionary, right? the worse things get that people would start doing. that's their business model in a way. you have consumers selling to each other. i don't know what's going to happen here, $450 billion in sales, ecommerce in china. they have 80% of it. my trade very simply is if this thing pulls back because, you know, the stock reflects a lot of the good news, i think you buy it here. i think it closes on the high of the year. >> how about the international expansion? that's the -- >> that's what mel is talking about. that's going to cost. >> that's where you get that big pop. >> apple rising more than 1% today hitting an all-time high. it news the company is looking to issue new i-bonds is good

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welcome back to "fast money." earnings on herbalife shares are taking a hit after the company reported weaker than expected third quarter results. it also issued fourth quarter guidance that was shy of wall street expectations at least from some analysts. the company also cautioned about risks in future sales and places like china. the stock is down 12.5% in early afterhours trading. in a programming note, tomorrow on the "fast money halftime report," they'll have a first on interview with herbalife cfo john desimone. don't miss that, noon halftime report tomorrow john desimone. >> thanks, dom chu. >> the options market priced this in. >> 15%. the stock is down 13.5%. the stock at one point was up 7% on the news late friday afternoon, kind of curious, that class action suit settlement. this is not great news if you're

an herbalife shareholder. talking about areas like china, remember when nuskin was having problems in china this was a big hit against herbalife a year and a half ago. i think it's great the cfo is coming on. everybody is waiting for this settlement. who knows if it comes. >> it is the eve of the midterm elections and here to tell you how the results could impact your portfolio is paul hickey and, paul, of course, a lot of people are waiting with beated breath. >> when you have a democrat as president and republicans controlling both houses of congress, only happened three other times in '95 to '97, '97 to '99. '99 to 2001, and pretty much everything was up then. s&p was up 60% in each of the first two sessions of '95-'97, '97 to '99 and 8% in the first

one. the best performing sectors were obviously technology which is partly due just because of the time and health care which is another interesting one there. whereas in on the laggards you saw energy which doesn't bode well if you're an energy bull right now and utilities were the laggards but they still saw modest gains, just not nearly as strong as the overall market. >> and in terms of the overall market, it does look like it fares better when republicans do control the senate. >> you know, i think you like to think like you want a ceo -- the ceo of the country being a democrat and republicans controlling the purse strings and so when we see split congress, you have seen still good returns, not as good as when we have republicans in both houses, but, again, it's a limited data set. it's just the last two sessions of congress where we've seen the setup we could see tomorrow. >> i want to put your market hat on quick. we've moved 200 points in the s&p from october 15th to where we currently are trading. do you think any or part of that move is based on the fact of

what's going to happen in the elections you're talking about right now? >> i think you've seen the odds of republicans taking the senate have increased a bit. i think as almost unexplainable as the market dropping and, you know, on ebola fears and other things, those -- the market has reassessed it we're back to where we were at the beginning of october. we saw 2% gain on the month. >> so i notice that under almost each scenario health care does quite well. is there a scenario that health care doesn't do well? >> well, you know, i mean, again, we're talking about a limited data set. one interesting thing is if you see the republicans take control of the senate, you could see the medical device companies do well because that tax has become very unpopular on both sides of the aisle. democrats aren't going to, you know, cave and put a bill on the desk but if you have the republicans send a bill to obama's desk, it's an unpopular part of the bill. you could see that get repealed, that part of the health care law. >> paul, thank you. >> thanks. >> you mentioned health care as being the common denominator in

these scenarios. >> right. and it's been a monster trade since we have seen that low. it's been straight up. that's why i asked the question because what guy hit on is how much of this is priced in. i think there's a good portion of it priced in. the medical device area is kind of interesting. how would i trade it? i'd be taking profits in xlv tomorrow, maybe take off half. i think that's the most prudent thing to do. >> i actually like the other side of that. i like -- >> sold. >> well -- >> takes two sides to make a market. >> in the one area of the market where i hold stocks, it continues to be in the big f pharma land. also technology. the republicans, which i sort of am leaning that direction, technology is one of those that's going to perform well. they've already performed. i think there's a lot of different areas of tech that go higher. >> reports of new bonds with apple. and b.k. spotted a chart that's

resembling the likes of a vomiting camel. these humps are not a good sign. we have the details ahead. from record-breaking highs to major market meltdowns. every night the "fast money" team makes sense of the trades serving up in-depth analysis and actionable vice. >> volatility is cheap. this is time to start buying. >> all to help you prepare for the next trading day. >> i would absolutely at the very least take profit and say good-bye. >> this is "fast money." >> it's a name i think you can still own right here. >> have a markets question for the "fast money" traders? tweet us @cnbcfastmoney. changing the way you think of retirement.

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changing the way you think of retirement. welcome back to "fast money." i'm morgan brennan. check out sprint. sprint reporting a loss of 19 cents per share, 13 cents worse than analysts expected on revenue that fell short of estimates. the carrier lost post paid describers from its main network, 272,000 for the quarter and the churn rate was higher than anticipated. sprint cutting 2,000 jobs as part of a larger cost reduction mand and the new ceo saying the company has, quote, started a transformational journey as to rolls out a new network and

slashes prices. disappointing report and shares are down more than 6% in the afterhours. melissa, back to you. >> thank you. when i hear transformational journey i think that's a long slog i don't want to be a part of. >> it's a pretty levered company. softbank owns a big chunk of this things. they're making a big bet on the u.s. wireless market. here is the problem, wireless data prices going to zero. we already know the call pricing is going to zero. you have really the low end of the food chain here in sprint. this is not one i would look to buy down here. you really have to see this thing get washed out below five. >> another big day for apple hitting a new all-time high. "the wall street journal" reporting they're working with deutsche bank and goldman sachs to offer bonds and euros. it was reportedly spilled that the i watch would not launch until the spring of 2015.

they probably raised close to -- they're taking advantage of low rates in europe. it makes a lot of sense. could you say it's because they can't access the money they have overseas. even if they could, i think they'd do the same thing because it makes financial sense. pete has been a bull on apple. he's been right. i don't know where it goes from here. 110 was the level we've been bantering about. >> where do you think it goes? >> $120. >> by the end of the year? >> absolutely. >> the release of the i-phone and the 6 and the plus was so successful. i think as that spreads internationally, i think the numbers will be off the charts when we get the next time to hear from apple. i'm in guys watch, the i watch, it doesn't matter to me. it's nothing. it's on the schedule. it will come out sometimes, maybe january or spring, doesn't even matter. i think the rest of the apple products are enough. >> next up, gm a down day for the stock after the automaker reported higher sales for the month of october but came in

below the street's expectations. >> the stock traded very well when you consider how bad -- how far below expectations it was. obviously the stock has had a horrible, horrible year. 30 is the real level here. i think you can probably take a shot as a trade trying to hold 30 but i will make one other point. when you think about the u.s. economy and i know a lot of people on this desk feel we are -- what do you call it, the best house on a bad block or whatever. when you do not have u.s. autos and do you not have u.s. home builders participating, i don't buy it here. to me gm is a really important tell. it's got to hold 30. >> so there was also -- auto nation came out with good earnings and they have had a monster run but there's also talk that a lot of the inventory was stuff into the channel. i think going forward this will be challenged. if anything, i'd watch automation. just technically it sets up at the very least for some kind of profit taking it not an outright short. >> let's hit some unusual activity and pete is taking a look at dick's sporting goods. >> back in may obviously when they gave up their earnings announcement, it was absolutely

terrible. the stock went from 53 to 43 in a short period of time. it's been there churning almost ever since. you have earnings coming out november 18th. i think some folks think that number will be good. when you looked at the activity, it was the december 47 calls. extremely active. they were trading 12 to 1 ratio of calls to puts today. >> really? >> you look at the specific calls just out of the money, 4400 of these trading on the day. aggressive buying. people are expect for dick's to produce. we know where they struggled last time, it was in golf and hunting. everything we have heard from under armor, from nike, we can see what the channels look like there. i think that feeds into dick's. people are looking for a positive report. >> coming up, don't look now but year end is almost here. dennis garvin lays out his top three catch up trades to finish the year out strong. plus, move over head and shoulders and the much hyped triple bottom, b.k. has a new chart pattern in town and it has

to do with a vomiting camel. we'll have the details next.

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still ahet on "fast money," if the volatility last month

threw your portfolio out of whack we have seven catch-up trades. cnbc is out with earnings and find out why one trader is making a bet against the stock. and we have the most disgusting chart pattern you can't afford to miss. we're in the final stretch with 38 trading days left in the year. >> i'm going to go with united technologies, it's definitely trailed the rest of the gdefens sector. you look at united technologies, they have growth. they have growth in earnings, growth in revenues. this is a company that i think has been punished unjustly trading around 16 just above the 50-day. i think it breaks up and tests the high of 120. >> b.k. >> for me it's going to be a short. no surprise there. but it's xop which is the oil

and gas exploration sector. it's all about one we know we have a strong dollar. number two, even if we're wrong about the demand falling off in oil there's a supply story. it's oversupplied ay edoversupp. xlp seems to be the national short. >> i think committing new capital to equities on the long side, i don't think it's a great value proposition. you look at a story like alibaba. if you have a negative reaction to whatever they say, you see this stock below 100 possibly in the mid-90s. i think you buy it. i think it closed near the highs of the year. when you think about the pent up demand from the ipo, i think it's going to stay. the more they talk about expansion in the u.s., i think you will see retail investors brawn into it. >> our guest said it was a flight to safety. do you agree with that? >> i think because of the fact

it's so mature. we already know a lot about it. it's not like the flight going to the facebooks of the world or the twitters. you don't know about growth. i think we already know the growth, international is where the growth comes. i think their number will be good. i don't know that you get that chance, dan. >> guy. >> this may sound -- last quarter was an excellent quarter. what scared some people, the ceo is going to step down and that's fine. if you look at this, you'd think a name would trade 30, 35 times forward earnings. it doesn't. 6.5% short interest. i think with the analyst day coming up in about a week, here is a stock to get you 12% to 15% upside by the end of the year. >> let's stick with catch-up trades for new. a number of commodity based names could help you make a strong push to the end of the year. joining us is dennis gartman. great to see you. >> catch-up trade, i was thinking of h.j. heinz. >> ha ha. soe so bad. your theme is to buy stuff going into the end of the year. >> i'm going to continue to buy

stuff. stuff has done very well for me. the most important one is alcoa, aluminum. way tonight continue to own aluminum. i got out of aluminum a month and a half ago. i wish i would have been wise enough to buy it back last week when it dropped boo 35%, but it's back to where -- just about where i sold alcoa at. i think the chart pattern looks good. i like what's going on in the automobile industry. i looked at chrysler's numbers today. we're going to start seeing more and more use of aluminum so i like aluminum. i like propane. not because i like stocks but because the size of the corn crop is so large we're going to be drying corn for the next six months to a year. we're going to see corn piled up on the ground. it's piling up in the elevators. it's going to have to be continuously dried. i like propane. i think that makes sense. and i'm still going to look at steel stocks. you have to look at steel. again, it's another one of those things if you drop them on your foot, it's going to hurt. i want to own stuff. there it is.

remember though, i'm always hedged. i own derivatives against things or i'll sell calls against them. i'm not an outright player. so i'm always a little bit hedged. >> can you believe in this stuff trade, dennis, and also believe that the economies around the world are slowing or do you think things are okay? >> i think things are actually okay. >> okay. >> i looked at the numbers coming out of china today and i didn't see anything untoward from them. they were both above 50, not dramatically, but above 50. risn numbers lo rism numbers look decent. europe can't get out of its own way but i think the rest of the world is doing okay, thank you very much. >> i want to get your take on oil because we did see a crush into the close today at wti. give me your call on where wti and/or brent is headed in the short term. >> as i -- last week i was quoted as saying that crude was going down a great good deal lower. >> you said like whale oil to be

exact. >> i think it's the end -- i think it's the end of the crude oil market. i think crude is going a lot lower. i think it's a supply circumstance. the term structure continues to act bearishly. we've taken the year spreads in crude oil to a contango. it was only a short while ago -- only actually yesterday we were at a backwardation in wti. brent is already at a huge contango. it's telling you there's more than enough supply out there. >> we see 70 in wti by the end of the year? >> we're going to see lower prices. they're going to be -- >> lower than 70 by the end of the year? >> i doubt they'll get below $70 before the end of the year but the trend is from the upper left to the lower right and it will continue to be that way. >> got it. dennis, thank you. dennis gartman of "the gartman letter." >> move over head and showeders. we're talking charts and the dreaded triangle of death. yes, dan, we're talking to you. today we've got a new pattern in town it goes by the name of the

vomiting camel. b.k. is over at the smart board to explain. >> this a very, very important technical pattern here. this is gold and this is what i have like ed actually and down 114 i came here and said let's buy this. up at 121 i switched to calls thankfully and what happened was we just completely dumped. here we go, this is the vomiting camel. we have two humps. what happens when you have a pattern like this? let's go to the next one. combine this with the very -- come on, where is the next one? there we go. come on. well, the bottom line is -- >> explain. >> here is the deal. it's still not working. you have this camel. it's also resting on a rhombus formation. the rhombus formation, very dangerous when you combine it with a vomiting camel. we've got it.

perfect. so where is our target for this? for this we have a splat zone of 880 to 700 based on the very famous vomiting camel formation and there you go. >> so the camel is at the edge of the rhombus which would imply that the camel would then go off the clive into the splat zone. >> right. so the camel -- here is the camel's mouth and you can see the vomit coming out of the mouth and this will now proprotect down to this area in a nonlinear fashion tnd it would be one times to 61.8 times the size of the rhombus formation. you probably never seen a rhombus formation either but that's something new that b.k. is bringing to you. >> there's so many things going on. >> a lot. >> guy, at the end of the day we're focusing on these levels of the splat zone where gold could go. do you agree with that ? i love the fact he brought

fibonacci, rhombus, and camel. >> and he specified the two humped camel versus the dromedary camel which is the single hump. >> as the u.s. dollar continues its ascension, it's going -- gold has had every reason to rally over the last 18 months and it's not been able to do so. many of us, myself included, have been trying to play this from the long side with abysmal outcomes. so this vomiting camel off the rhomboid with the fibonacci retracement, he might be onto something. >> if the world is going to you know what in a hand basket, why should gold go down to the splat zone? >> listen, to me i thought dennis' commentary was fascinating. i don't think the world is okay. when you think about what's going on in brazil, you think about a lower growth environment in china. did he admit that europe is a disaster here, so to me if you believe that the u.s. can decouple then stay invested here but i don't believe it.

i think it's really important to remember in january and february of this past year we had a 6%, 7% sell-off. it was caused by worries of global growth. i think we're setting up that way in the new year. the higher we go into the end of the year, i think if we do not see a meaningful pickup in the world, we will have a sell-off that makes this past one just a couple weeks ago look like a starting point. >> all right. learn something new every day. all right. time now for pops and drops. big movers of the day. a drop for gilead down 2%. >> this is a stock that's performed very well. it just had this massive run to new highs. it's consolidating above the prior highs. this is a really key level. i am in pete's camp. i think this is a stock that will get bought on almost every dip but you want to see it hold 110 for right now. >> pop for nvidia. >> they have earnings coming out. this is a very gutsy call.

tough like when a guy is able to put his neck on the line. when you look at the mademand f their upper end graphics chips very strong. >> pop for con edison. >> in brazil they're investing in more solar tesk. i like solar. here i'd take a little off the table though. >> big pop for go pro, they moved 9%. >> a whole conversation about band aids and jell-o and q tips. >> and i threw in polaroid. >> you got mad at me. >> just pushing back. >> $95 price target. that's madness but you know what? i think he's going to wind up being right. this could be obsolete at some point. i don't think it is now. i think it goes higher from here. >> breaking news on jpmorgan. dom chu has the details. >> jpmorgan and its foreign exchange investigations and possible litigation. the firm has disclosed in a filing that thed oj is

conducting a criminal investigation in various regulatory and civil enforcement authorities including banking regulators in the u.s. are looking at the company's foreign exchange trading business. the firm also said in the filings that it believes the estimate of aggregate range of reasonably possible losses from these types of activities legalwise is in excess of reserves already established and it could be an additional 0 to $5.9 billion as -- that's what they can reasonably estimate at this point. again, the doj, they confirm jpmorgan in a regulatory filing is conducting a criminal investigation with regard to the firm's foreign exchange activities and the firm does think it could be as much as $5.9 billion in legal reserves that they are setting aside for possibly covering this type of litigation, guys. back over to you. >> thanks so much,.com chu. we're seeing jpmorgan shares dip in the afterhours session. this follows the news we got out

of citi. here the headline is it could cost them up to $5.9 billion. >> that's a big number. and clearly by the reaction in the stock it's a surprise because we have seen some settlements over the last couple weeks. this is a little bit of a concern. i'm torn though because this is also going to mean there is less liquidity in the foreign exchange markets which for b.k. is going to be great because there will be all kinds of volatili volatility. >> what i think it does mean is morgan stanley who got into the asset management business years ago and people laughed at them, that's been their driver. new stories like this reinforces why morgan stanley has risen to the top of the crowd. >> i'm still a bull on the banks. i think this name of the names is the most fully valued of the names. if you're going to go to the safe bank, you probably go to we will wells fargo. >> i just want to make something very clear here. this is not that the firm is actually setting aside money for this. they are just estimate eding rit

now that the amount to be 0 to $5.9 billion. that's their best estimate and that's why they're putting it in their filing. not that they're setting aside that money. they are just saying that legal losses may be up to $5.9 billion than currently reserved money set aside. >> okay. >> back over to you. >> thanks for the clarification. what's your trade? >> you know what's funny? we were -- we thought the citibank news was big news and it wasn't. by the time it opened next day the stock was up. with jpmorgan there's nothing to quantify. even a $5 billion criminal penalty would be a rounding error. to me i don't think you like to see these criminal sort of situations, and really it's just kind of getting jacked up by the doj. they're like you guys did this, give us 5 bil, no one ever sees it. >> it's down 1% right now. >> 10% off the lows recently. i don't think you chase anything. >> coming up next, a look at one of the fastest growing apps disrupting the entire social

networking space. the ceo of hinge joins us after the break. how much money do you have in your pocket right now? i have $40, $21. could something that small make an impact on something as big as your retirement? i don't think so. well if you start putting that towards your retirement every week and let it grow over time, for twenty to thirty years, that retirement challenge might not seem so big after all. ♪

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the surge in popularity of dating apps like kinder are taking social dating apps to the

next level. a new dating app called hinge is making it easier to hook up by connecting you to friends of friends on facebook. what happens when the new social networks take over the old. joining us is the ceo and founder, justin. the comparison is hinge to tinder but tinder is much larger in terms of the number of matches. what's your goal here? do you think you'll get to the point where you overtake tinder? >> i really don't think of uses a competitors. i think -- tinder is more of a game to play with. people think of them as broad use, it could be relationships or it could be more casual encounters. we're really for people who are into relationships and more i think that we're a utility to help you meet people in real life and not necessarily a game to play with on your phone. joen jo. >> and you need a facebook page. >> you have to join through facebook. . >> it seems like this would be something very easy for facebook to do themselves. are you concerned about a big

player like that just stepping in and saying we've got the pages already. we just need these people to sign up for an app. >> that's right. i think there's any number of things that facebook could theoretically get into but they want to get into things where they could have a billion people or more doing it. the total addressable market for something like hinge even if we had every single person who was single who is on facebook using it is only about 400 million in the entire world. so it's not really -- i don't even think they think about markets like ours per se. >> i'm glad you brought up total addressable market. if you think you're not a competitor to tinder what is their total addressable market compared to yours. i would imagine yours is a subset of theirs, right? >> in a sense. i think their total addressable market is anyone who wants to kind of mess around and find new people to chat with and i think ours is single people who are looking to actually go on dates with people. >> i just threw that out for fun because you're just looking at

this interview like -- >> for married peep there's an app coming out called unhinged which is what happens. >> what's your game plan? do you see being on your own in a year or do you think you'll be swallowed up by like an interactive? >> we definitely don't want to be swallowed up. we're trying to create something very, very different in the market. what we've built is something that really creates magic. when you sign up for it -- >> magic. >> you don't have to do anything. you don't have to fill out a long profile, you don't have to do any of that stuff you'd have to do on a typical dating site yet you see incredibly relevant people. people you sign up that you would actually want to date. either you have to put a whole lot of effort into it or no effort into it like tinder and as a result you see random people who happen to be nearby. so what we're try to do is create the go to network to

people who are interested in dating. >> marissa mayer calls you tomorrow and says we want to buy you. >> probably not. there's always a certain tag involved. >> of it creat-- it creates mag. >> you're turning to me because you want me to trade it? >> facebook. >> you mentioned -- i thought facebook's quarter was fantastic. and then they said they're going to spend money hand over fist. that scared a lot of people. but if you look at their valuation, you look at their growth rated, that was a wonderful quarter. morgan stanley just initiated $90 price target. i think at $74 it's a steal. >> for all of these, not just hinge, but tinder, you need a facebook page. they tend to attract much younger users. isn't that good for their old people problem they allegedly have. >> and to gather what everybody

said they were losing which is the younger folks and that i don't think is true. i think zuckerberg has been able to prove that time and time again. i know we were having fun with this, but i think facebook is the trade off this. that quarter wasn't that bad. i think the spending ends up being stg good in the end. it's why i bought some calls in facebook the other day. >> let's get an earnings alert. he's got the news on retail me not which is sinking after hours. >> ticker sale. check out the shares because the digital coupon marketplace, they're reporting better than expected third quarter results but investors are focusing on weak revenue guidance. the cfo is stepping down but will remain with the company to assist with the transition. shares have lost nearly a fifth of their value. right now about 712,000 shares have traded in the afterhours session versus 2 million shares total for the entire regular day. back over to you guys. >> thanks dom chu.

>> they did say the cfo is sticking around. it's not like he went out the exit stage left. i would say if you're in this and it's already down 20%, 15 seems to be some support. don't necessarily panic out of it. >> some big media companies gearing up to report earnings later this week and one trader thinks cnbc could be setting up for a flop. we're breaking down the options action. that's next. so i can reach ally bank 24/7, but there are no branches? 24/7 it's just i'm a little reluctant to try new things. what's wrong with trying new things? feel that in your muscles? yeah... i do... try a new way to bank, where no branches equals great rates. but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea

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cnbc is set to report earnings this week but it seems one trader isn't expecting to hear good news. >> six times the average daily call volume and you assume there are bullish bets being made. what we saw ahead of earnings and they report on wednesday were sellers of the december 55 calls. those were trading for about $2.10, if you're selling those calls it means you're willing to sell it at that price. actually your net selling price would be $57.10 but basically what we're seeing ahead of earnings is not a lot of bullish sentiment. this is somebody who is willing to let go of a big chunk of stock. >> would you rather cnbc or

disney? >> disney, 100%. espn, giddyap. >> dan, do you agree with pete? >> i would probably take a shot at cnbc over disney. disney is not a cheap stock. >> you just want to take the opposite side. >> it's trading at -- >> bring it on! >> expected to grow 9%. >> our thanks to mike khouw. more options action check out our live show 5:30 eastern time on friday. we have your first move on friday when we come back. stay tuned. when change is in the air you see things in a whole new way.

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synchrony financial. engage with us. it's bigger than ebay and amazon combined. al ibaba hit a an all time high but can it continue to soar? "mad money" is next. >> time for the final trade. pete? >> well we talked about alibaba earlier. yahoo! is going to get it done. >> b.k. >> if you want to make a lev leverage bet on the vomiting camel trade, short silver, which i am. >> dan. >> tomorrow morning i think you buy al ibaba under $100. >> pit boss gave me an idea. the mcrib is a very popular thing. >> i love it. >> what if you made -- >> i do, i do. >> the mcriblet. the mcriblet.

>> like a mcrib slider. genius. you heard it here first. >> the stock held 92.5 a number of times. i think it goes higher. >> see you back here tomorrow at 5:00. "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. some people want to make friends, but my job is to help you make money. call me at 1-800-743-cnbc or tweet me at jim cramer. merger monday is back, skb baan with