hey, at least the markets closed and stocks can't go any lower. we're live on expiration friday. the guys are getting ready behind me. while they're doing that, here's what's coming up. >> there's no place like home. there's no place like home. >> that's because that's where some traders are placing big bets. one name in particular could be setting up for a sweet trade. we'll explain. plus three main stocks are on the verge of forming a death cross. you know it would be true and can spell more trouble for stocks. we'll give you the names. miss the rally in under armour.

the action starts right now. >> here's the question. if global growth is slowing, which sector feels the most pain? >> i think it's industrials for the most part. we see this and we're going to talk about it. boeing made a high in january. industrials to me is the sector you want to focus on. the feds said it out loud they're worried about global growth. it's making them think twice about how they're going to effect the posture. >> i think in the past week or so there's increasing optimism and general electric had the awesome deal approved and that got a bid and we haven't seen that in if a long time. >> it's interesting.

i would put boeing in a different camp because a lot of the growth we've anticipated is coming in china. we were talking about 5,000 orders with the aircraft. with the cargo 747 cancellation boeing has no new orders for 2015. they're basically telling us what's going on. we don't need to wait and find out and look at the names and find out if there is growth. they're telling us there isn't. >> in terms of performance of individual securities here, it's driven more by sector. you make a decision what you want to pay for growth or value and whether you want to go cynical or defensive. indrus treel energy, i put them all in the same bucket. >> i'm just curious dif the fed

hiked interest rates would your views be different? >> the fed is acting on the same cues we are. they're di jesting gesting it t way we are. >> the main pint is two things. they're related. the strength of the dollar is a big issue and weakness in the market. those are related and two separate things. like mike said. with a accompany like boeing 60% of their sales come from overseas. the growth is the thing why you buy stocks like this into an upturn. in some ways, the hikes we saw in boeing in january could have been the top of the cycle in my opinion. >> the d.o.t. once again. >> listen guys, the triangle at depth here. look at this chart in boeing. you had this high earlier in the

year and it made a series of lower highs. it bounced off 140. that's big support. late august it broke. it's come back but where did it retest and fail yesterday? >> $140. this is a good opportunity for a retest of those prior lows. we have another chart of option prices in boeing, your short data basis. look at that. we're up 100% into that august swoon. they've come down and relatively cheap. i'm coming out and identifying the callus. i expect a possible miss. it's going to be october 23rd or 22nd. i'm going to look out to october 3rd. today when stock was $2,700 i could buy the october weekly for $3 and buy one of the october 30th's at 380 and i'm

selling one of the 20 foots at $0.80. the max is between 132 and 135. i can make up 12 between 132 and 120. >> this is a trade that makes a lot of sense. from 155 bucks, it's trading itleit less than 16 times. it's tough with the stock trading at a cheaper e value waegs and obvio -- evaluation. >> the set up is perfect. in terms of what makes an opportunity is a set up. you have well defined lows at a common level and a sharp rate 17%. 140-115. what this is known as is a reaction move. people react to the weakness by buying. once a stock throws all the way back to the point in which it initially broke down, it is right back at the kill zone. you whack it again. >> so you actually approved the

triangle of death. >> you could use that, if you want. >> you know what i would say, you can call it whatever you want. i can't call them anything. i think that's sort of trying to get attention. here's what it is. it's not about you or the triangles. here's what it is. it's an excellent set up, it's an excellent trade. no matter what you want to call. >> listen. we call a lot of formation names and talk about a death threat. they don't mean anything. what's going on is these stocks are in big down trends and you guys got acustom to buying dibs. i think you're in a market where you move along. >> curious enough, home builders are in the charts this week. carter, what are you looking at? >> it's home builders and things related. i'm going to pick a big name here. we're going to look at home depot. this is one of the largest stocks in the market and as the

technical expression goes, it acts well. in fact, it's been up eight the last 10 months compared to the market. what i got here first is the performance of home depot. so you have equities and consumer discretion. a subset out performing equities and home depot out performing its own sector in the market. if you look at home depot compared to the other eareas of the market, home building and home construction and materials and other parts of the market. we think that's an opportunity. take a look at a few charts. this is the relationship between treasury yields and home depot. the torque starts here when there was more and more and more easing. take a look here. this is exactly where three

started. that's exactly when home depot really started to explode. what did we learn this week? whether they're trapped or a afra afra afraid, they didn't do anything. stick with a winner like this. here's the chart and i think you can presume this sideways action is a set up for another bounce off the line. home depot higher. buy it. >> mike, what's your take? >> i'm having a hard time picking stocks to get long here i have to say. my inclination, even though prices have fallen off a little bit as the stock has rebounded. my inclination is to try to make a bet where if i am compelled to buy a stock it's going to be lower. the nice thing is, the way options were setting up, this is one of the situations where you

can go ahead and sell some of the more over priced options to the down side and mitigate the down side risk. i'm looking at the november 105, 120 call spread. you have to get up 5 bucks for you to participate on the upside. you're going to get a 10% cushion to the down side. that total trade is going to cost you 90% also notice i'm giving myself a little bit of time. i don't want to carry it all the way to december. if we get flipped around, that's when we're going to see it. >> carter and mike have been all over for a while and the relative strike has been amazing and they really focussed on whatever parts of the u.s. economy that's doing well. it doesn't have the exposure spooking the rest of the planet here. for me, the way the stock dropped in late august, i don't

know how much time it spent below 105. that's scary business. i think the only real risk is if the market crashes. in some ways, home depot will be the last battle fought in my belief. you're getting paid for the risk of buying an upside call here. if you want to put money to work in the u.s. and stay focussed, home depot is the name. >> just to extract the whole home depot thing you like the home builders still? >> it's the best performing area of the market this year and things related to it. the home builders don't care about putin and china, they're going to build on. >> this trade structure also very importantly takes you back to a level where we began the

year. if you missed that rally, this is the situation where the worst thing that happens is if you bought it in january. >> send us a tweet if it doesn't contain your and momma close by. we have got the hottest news and videos throughout the weekend exclusive trade. you want to check it out. here's what's coming up next. yeah, that pretty much sums up the banks and it's about to get much worse. we'll tell you why and how would you like to get paid to buy shares of under armour? >> i like it a lot. >> we have a way. we'll explain how. i'm here at the td ameritrade trader offices. ahh... steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place that lets you visualize that information

for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim? for all the confidence you need. td ameritrade. you got this.

here at td ameritrade, they work wow, that was random. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday.

we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this. we've we've seen momentum, down trends emerge, chart watchers or technicians watching a couple of patterns develop here in the financials. first of all, check out morgan stanley shares. you can see the shorter term average price of the stock dropping below the price. some call it death cross. could it be a signal momentum is shifting? then check out a couple of these other big names getting close to

the indicator turning to the down side. goldman sachs, you can see the lines starting to converge. perhaps we'll see a negative sign there. on the other side of the banking spectrum, wells fargo doesn't do securities but a lot of lending. those shares seeing the down side show up here as well. if you check out morgan stanley, goldman sachs getting across there. back over to you, melissa. >> thanks so much. just a couple of weeks ago, here's what carter said about the banks. >> if we were just to go back on the line, this implies another 12-15%. >> yeah, i think you look to the november 24th spread in the xlf. >> and of course, since the time of the trade it's only gotten worse. what do you see and make of the death crosses? >> do you want to start with that first? >> whatever you want.

>> if you think about it, that's, in order for, to reach the point where a shorter term average has crossed a longer term average, by definition you've made no upper cross. at the moment you're four or five months into the circumstance. it's not you got a big deal but what is a big deal is the massive in the general. this is a very bad place to be and every indication it's worse. >> no circumstance do you see prices falling and that's good for financials like morgan stanley which moves to asset management. the other is this has been a crowded trade. one of the favorite places for institution to be. they were long financials and long airlines. would you want to be those if seeing volatility?

not a chance. >> especially if you're not seeing rising rate. >> the whole keystone is falling out. >> banks aren't the only winner. here's what dan said last week about the utilities. >> i think it's a good shot to take a shot for a retest or retracement of the 10-50% move. today when the xlu was 41-40 i looked at the october expiration and we can buy the october '42 cost spread paying $0.50. >> that was a popular trade this week. are you sticking with it? >> i am sticking with it. i saw very few reasons why the stocks in the u.s. rallied. a lot of reasons why the xlu showed relative strength. here's one working and working verses the market and over sold and i see a lot of reasons from here on out. domestically focussed like the utility sector. >> this is of course resciprocr.

let's just say this. in the event that this is all sort of going to unravel at the point where we go below the lows, everything's going down. it's a question of what's going to hold up better. i would argue when you know of two things. things that are somewhat defensive for some reason to do with utilities and rates or things like starbucks and netflix that are their own things that are going to come down at a lesser. >> do you think we're going to test the ebola? >> that low is the 15th of october 2014. it's 1820 in change and i think that's. >> more gone. all right. coming up next. one of the nbas biggest stars just signed a mega deal with under armour. we'll tell you how to get in the game for less. more action after this. i'm here at the td ameritrade trader offices.

ahh... steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place that lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim? for all the confidence you need. td ameritrade. you got this.

here at td ameritrade, they work wow, that was random. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday.

this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this.

that was that was nba all star seth curry earlier this week talking about his deal with under armour that extends through 2024. stock is up this year. dan. >> i got this question a lot this week. this is one of the first stocks in the entire market that made back the losses from last august and a new all time high. what did seth curry just say? he said a long term deal. they also gave long term revenue guidance and it made like i said that new al time high. when you look at the that is right you have breakout earnings. that is the line here. it broke out and made a new high. i don't chase run away break outs. i know carter was just talking about the other stocks. amazon and netflix and that sort

of thing. they may be safe havens but it's not my bad. fur inclined to get skin in the game in under armour. $90 was the level you would want to put a limit order on the down side. this is implied volatility in under armour prices. obviously, they shot up when the stock got hit in late august. they've come in and still elevated. that's giving, i think traders were willing to be patient, an opportunity to put them in order. if i want to focus on that 90 level. i want to look out to october 30th weekly expiration. that's going to catch the next everyonings announcement. i want to look at the 92.5 foot. you could sold those for two dollars. selling them for $2. your worst case scenario if the stock is below 92.5. you're putting the stock there.

90.5, that's a long ways away, people. i want to make another point here. if you're a little nervous about the market, that's what option prices are telling you now. those options have a 25% chance of being in the money. the elevated premium is actually compensating you a little bit for taking that risk. here's the thing. why are we choosing october 30th expiration? we're targeting a cattlist. worst case scenario i'm going to get the stock back to that long term support and why am i selling? because the price options are elevated. >> reports have one critical difference between the two companies. nike is multinational and under armour is domestic when it comes to revenue source. >> they are still absolutely an aggressive growth bait. we're talking about top lying growth you're not going to get from nike. i think you're right to take a look at selling a foot that's well out of the money though.

this is apparently rich stock. it's trading in a hundred times trailing 12 month earnings. that said, i take a look at the pictures from my kid's school yearbooks and what does everybody want to wear? it's all under armour. they insist on it. i expect this growth to continue. if you're going to make a bet it's going to be domestic. >> carter, how does the chart look? >> it's a good chart going up. what's important is, the strength over the last august low and under armour is the exact same percentage we saw in the ricochet in boeing. we take advantage of the strength to favor. if you have a broken stock that has strength it returns you to a difficult level. you have a strong stock getting stronger. you want to stay with that strength. >> coming up next, the final call. stay with us.

ions data you need in one place that lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim? for all the confidence you need. td ameritrade. you got this.

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here at td ameritrade, they work wow, that was random. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this.

alexander was born this morning at 8:23 a.m. mom and baby doing great. this one from in the money. >> no problem. don't sell one in the money. use out of the money probably 235 strike to look at the 275. going to be a good trade. >> time now for the final call. >> home depot on the long side. i think it will do well. everything will go down and go down less. >> take advantage and sell the 105. >> he said the word. due. >> carter said it well. i think industrial set up great. boeing is the one i want to do.

>> looks like our time has expired. for, check out the website at cnbc.com as well as inside fast money. see you back here next friday 535 eastern p.m. don't go anywhere. jim has the ceo of netflix coming up next. >> announcer: the following is a paid program for the new t-fal optigrill plus, brought to you by groupe seb usa -- innovative ideas you can't live without. how do you like your steaks -- rare, medium, or well-done, but juicy? whether you love tender, juicy grilled chicken or mouthwatering grilled salmon, there's nothing quite like the taste of perfectly grilled food. but grilling it right is never easy, undercooking your meat can be dangerous, and overcooking makes it dry and rubbery. you never get it just the way you like it -- until now. introducing the new, improved t-fal optigrill plus, still the first and only patented indoor