multimillionaire folding. folding clothes. it should have been me. >> we'll all be here tomorrow as a matter of fact. we hope you are, as well. that does it for "closing bell." thanks for joining us. "fast money" begins right now. see you tomorrow. "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square, i'm melissa lee. traders on the desk, tim seymour, david see born, brian kelly and guy adami. netflix surging on rumors disney could be acquiring the company. how likely is the tie-up and are there other names to consider first. famed investor mohamed el-eri el-erian. and dennis ghertiman says there is one thing that will send the dollar surging. first, we start with what could be an ominous message for the markets. utilities, reits, consumer stables taking it on the chin today, all part of what's been a brutal month forot high-defend,

rate-sensitive stocks. should you dump your dividend stocks as they continue to rotate out of this month's hot trade? bk. implicit in this question is, is safety no longer safe? >> well, i'm not seen sure these were safety. these were yield plays, right? now you have a change in what's going on with yield. let's look at what happened today. we had a pmi number that was decent, at least decent enough to say that the fed may raise rates. we can discuss that later. but that they may do that. we had oil rising. the higher oil guoes, the more likely the fed is going to raise. and then the last thing we had, china is in the sdr. they have less of a reason to necessarily stockpile a ton of treasuries. so you have a lot of reasons not to be buying treasuries, for yields to go higher and that's what happened today. so i think you do get out of these names. i think the risk/reward is not favorable here for these names. >> isn't this exactly what we wanted to see? isn't this -- i mean, i'm not sure i agree with the fed. but if you listen to the fed, they tell you, they want to see more inflation. that's a good thing. meanwhile, we've said on the show, people have said on the

show, that's almost an asinine -- you know, supposition. but if you think about it, what we're getting here is we're getting an inflexion point rates, which has found some bottom and maybe brexit was the event and obviously that's not a great event. but maybe in the scheme of markets, it is. and that actually seeing the jgb kick back up, now minus 6 bips instead of minus eight. >> it depends on why they're higher yields. if you have a slow economy and higher yields, because oil is going up and the fed decides to raise into a weak economy, that's not good. but if --. but if we have tightening effects on the economy, i think it puts the fed on hold anyway. if oil -- i don't think oil is going to go to $75 a barrel in a short amount of time. but higher oil, higher dollar are going to put the brakes on for the fed anyway. >> this market rallying the way it has is sovereign yields. they begin to rise and pm

multiple comes into play. so you've got to be very careful, as we see sovereign yields tick up, people are going to call into question the u.s. stock market valuations. and that's been a little bit of the bump up when we got to the 2180 level in the s&ps. so i look at you and say what do you buy under these circumstances? do you buy the banks, which didn't rally today? in the hopes we get a yield? actually, you can play that trade. you can play it into december. we're going to get a move by the fed. and i think you can play that sentiment trade. >> so it's interesting. everything -- i agree with you, except if they do hike, they would be hiking into what i still perceive to be an earnings recession which is a real problem. i think rates are still going down. i hear what bk is saying in terms why rates should go up. the ten-year around 1.62, which, you know what, it's not like it's off to the races here. so i think to answer your original question, xlu has sold off significantly. i think it was 53, the all-time high or so in july. it's traded down now to 48. i think that's something down 10% or so that could move

higher. >> right. we haven't seen the same sort of move lower as in staples, for instance, as in utilities here. >> right. you saw the rate sensors will get more on that. to go back to the banks, i actually sold my banks the last couple days. i was bullish on it, but now to me the risk/reward what's going on with the european ranks is not there. maybe you get a 2% dividend, maybe there is a trade into the fed. but, boy, if anything happens in europe, the u.s. banks are going to get hit. >> yeah, i mean, look, i think it's not a bad sale you made. look at the way they acted today. i am bullish on the banks going into december. i think they're underowned so positioning light and you'll see substitutio substitutions. >> the prospect of the hike outweighs anything going on with deutsche bank or any cloud -- >> deutsche banks held it down. deutsche bank -- the cloud over wells fargo i don't look as substantial to deutsche bank. you listen to jamie dimon today, and you tloifb what he said about it being mass and all sorts of moving parts. people do not understand.

i walked in today and looked at bk and i said i think deutsche bank is buy. the bottom has been put in place. i'm saying that -- same saying that, there is a lot of risk here, but i do believe the setup is you be long the stock here. >> on deutsche bank, it's -- it is a specific situation. i don't think it's a read on the u.s. banking sector. therefore, this is a bank that clearly needs capital. the risk/reward if you look at the market cap of the bank and size of the balance sheet and liabilities, this is not a liquidity issue. counter party means less profitability and that's a bad -- dynamic, not only for equity shareholders, but for the overall profitability of the bank. i wouldn't go near deutsche bank. >> what would you go near for the fourth quarter? >> i continue to say, the things we're talking about here are dynamics very good for cyclical stocks and that means transports and go with companies where i don't think you're making a huge leap of faith. fedex just told they've got pricing power and the tnt acquisition is not only a creative, but it's a creative to

margin, on the ground business, the airlines, to me, are in a situation where they have pricing power in a higher oil price environment. and that's what we have. >> the other side of the coin, you think we have a weakening economy. >> i do. >> what would you buy going into the fourth quarter? >> work flow throughout the entire thing. i still think the ibb is okay. i still think biotech is okay above this sort of 280, 285 level in the ibb. i think there is specific names we've talked about. tim is going to do a thing later on a company. look at what cmg has done over the last couple weeks, a nice move to the up side. look at a name like an darko petroleum, looking for a levered energy play. if oil were to stay here, apc is an interesting play, as well. so there are names that work. >> oil for me, that's the sector right now. no matter what's -- oil is very, very strong. so the risk/reward on something like i'm long xop, i'm not long oih, that's the place you want to be. >> the question i have to ask is, and i've been constructed on

oil. but if the reason why opec is -- if opec is now getting their game together, is it does that mean the none opec producers which caused this problem are going to not stop pumping and say thank you very much for this raise in prices? >> it's change in saudi energy manager. they're worried about price and that's enough. >> let's get more on what you should be betting on in the fourth quarter. let's bring in mohamed el-erian at allian's bank. always glad to have you on. >> thank you. >> we know you're a big fan of the show. so we thought we would play a version of one of our favorite games here, "would you rather." as we kick off the fourth quarter, mohamed, we asked first, would you rather stocks or bonds? >> neither. i would rather have -- cash right now. >> now -- >> neither. >> try this again. >> okay. because obviously you're not a fan of the show enough or you would know that i yell at the person who makes up their own

rules for a game that's "would you rather" and they pick a third choice, mohamed. >> i figured i would get treated differently. >> stocks or bonds? >> start with the question. what would i rather have? >> stocks or bonds, yeah. bonds. >> why? >> because i think stocks are not pricing in the amount of uncertainty, macro uncertainty. and for good reason. this is very hard to price. we have a number of political events coming up. we only get clarity on brexit, a italian referendum, u.s. election. in addition, we can't figure out what central banks are doing. we know the bank of japan is losing effectiveness, the fed is divided, the ecb pushed to do more and likely become less effective. if you look at all of this uncertainty, it really does raise the question as to are we too expensive? is the risk premium not valued

properly? now, bonds will get anchored in a world like this. stocks -- >> i want to go back to your original answer, which was cash. do you also see the same reasons behind not want to go own stocks applicable to bonds at this point? >> yeah, i don't think central banks can remain as effective in repressing bond volatility and equity volatility. so at this point, i would accumulate some cash. i would wait. i think you will have opportunities to buy both at more attractive levels and i would be particularly careful about the effect segment. because i think that's where a lot of the volatility is going to come from in the fourth quarter. >> all right. here's the next question, mohamed. would you rather tech or energy? >> tech. >> why? >> because i love a sector that generates cash. i love a sector that has a business model that works and doesn't depend on supply side that i don't quite understand. so between the two, tech rather

than energy. >> all right. and finally, here's the big one, mohamed. trump or clinton. >> clinton. >> why is that? >> because i think she brings a more complete economic plan. i think she brings a lot more experience. and there is this big risk about what will happen to the trading system, which is one of the issues that you've got to ask -- be careful about. you know, we are in a very interlinked economy. and as the uk is finding out and we will find out, it's not easy to disentangle yourself so this big notion of big tariffs on mexico and china scare me. >> you just brought up the uk. we saw theresa may say they're going to have article 50 triggered, exit the eu, the british pound weakened today. is that a risk for u.s. stock investors or is that something

that's good for u.s. stock investors? >> that's a great question, brian. the risk here is that you get lots of moving pieces. so as we get details on brexit, and i think it's likely to be a hard brexit, rather than soft brexit. not because that's what is in everybody's interest. what is in everybody's interest is soft brexit. but the politics have become so complicated all over the world. if we get a hard brexit, you're going to see sterling weakening quite a bit. that's going to transmit volatility throughout the effects segment and on to the equity segment. so be careful of these interconnections. we have seen it before. and the effects sector can drive volatility elsewhere. >> mohamed, thanks a lot for playing with us. we appreciate it. you're a good sport. >> thank you. >> mohamed el-erian of allianz. who is going to be a buyer? >> took the low volatility approach, i think, in the contexts of stocks versus bonds, tech versus energy.

you have a place where we have seen certain trades, but as we look at the economy we're in, i think we're going to have fed speak over the next couple days. i think this was enough to trigger markets to take rates higher. the central banks have one into an issue where more probably means more impact on yields going higher. so having more cash into this environment makes a lot of sense to me. >> i agree with him on the tech front. i think you need to have cash flow in this market in order to buy a stock. you don't go out and willy-nilly and buy anything. buying back stock versus borrowing are the stocks i want to known. tesla revving up delivers in the third quarter, sending shares soaring. is it enough to meet the year-end goal. and hillary clinton taking on corporate america and taking on specific companies. is there more pain ahead for these names, or is it an opportunity to buy? we've got those names in the trade later. and is disney about to go on a shopping spree? the rumor about the next big buy heating up.

the traders tell us the perfect match later on this hour. much more "fast money" straight ahead.

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welcome back to "fast money." shares of tesla jumping after the electric car company announced a record number of deliveries in the third quarter. tesla announced it got 24,500

cars to customers. that's up you 70% from a year ago. it's also basically confirming second half guidance here. and that seems to be the linchpin. >> those are pretty big numbers. so for those -- listen, i understand why people would question tesla as a stock, as a company. i get it, right? my thing is has always been, who is left to be the incremental seller. i understand that short sellers will be out there. it's my believe that the people who own the stock, the institutions that hold it, are going to hold it for better or for worse. they're not going to sell it at 180. they'll probably sell it at 100 if it were to get there. in other words, their belief system is such, and i don't think they're getting out. what does that mean? it means as pete will say all of the time, you're probably better off playing it with options. i've got to tell you something. we're at levels now if you start to get through the 15 -- 215 level, you'll break a trend since last year. and on november 1st a lot of room on the up side. >> and solarcity comes up for

vote theoretically sometime this month. >> and i'm not sure -- at one point, i would have said that deal falling apart was actually -- >> would be a good thing. >> would be a good thing and now maybe a bad thing. because i think it also speaks to the fact that -- elon musk is not able to control the boardroom on these stocks any more. when i look at tesla, just because there is a big beat on the third quarter numbers, doesn't change the fact the company probably has another capital raise, burning through a ton of cash and the commercial element of this outperformance, i don't think, is that great. i will say, look at the stock on the charts. 215, 214. you've got the 50, the 100 and 200 all converging. what does it mean? the stock probably isn't staying here. >> the bears will also say that elon musk had to send the e-mail saying we will never discount a car. you should never discount a car because there were concerns they were discounting cars and could the discounts have helped these numbers in some way. >> yeah. i mean, it could have. i mean, look, tim is 100% right. they have to raise cash. obviously the solar city overhang is a concern. i look at it and say, there is

probably up side here for a trade. it will be short-lived in my opinion. i think 250-ish is the sweet spot as far as selling it. you buy it back around the $200 level. >> i actually think this is the best of all worlds for tesla. they're not going to be able to execute a deliver. right. so here you are the street talking about tesla, the bigger picture. now they're executing the risk, and i'll agree with you, is they have to be able to raise cash. as long as the capital markets are open to them, then tesla is a buy. still ahead, you will not believe what donald trump just said about his taxes. the latest from the campaign trail right after. this i'm melissa lee, you're watching "fast money," first in business worldwide. meantime, here is what coming up. our breakfast special is chorizo and eggs. >> what is that? >> it's what chipotle hopes will get you back in their stores but will it work? we took to the street with a scientific poll. plus -- ♪ match maker match maker look through your book ♪

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undetood, brake biasac2arm. icks. giving them the agily have spd & precion. because no one k like at&t. on the campaign trail, donald trump offering a defense of his personal attacks as in hillary clinton taking on wells fargo, slamming corporation for recent scandals. eamon javers is in d.c. with the latest. >> two big stories to watch on the campaign trail, starting with donald trump, who is offering up his first extensive on-camera reaction to the "new york times" story over the weekend. the "new york times" obtained his 1995 tax filings which showed that he took a nearly $1 billion loss that year, which

may have allowed him to put off paying future taxes in the years to come. trump, not confirming that story, referring to that as an alleged tax return, but still offering a defense of how he's handled his personal taxes over the years. here's what trump had to say a little while ago in colorado. >> as a businessman and real estate developer, i have legally used the tax laws to my benefit. and to the benefit of my company, my investors, and my employees. i mean -- honestly, i have brilliantly -- i have brilliantly used those laws. >> trump saying there that ultimately, the tax code itself is unfair, but because he's been a big beneficiary of that unfair tax code, he's the guy to fix it in this race. meanwhile, hillary clinton in ohio talking about large banks, also talking about the unfairness of the economy structurally. she singled out wells fargo for criticism and had a message for ceos across the economy.

here's what hillary clinton had to say earlier today in ohio. >> it is outrageous that eight years after a cowboy culture on wall street wrecked our economy we are still seeing powerful bankers playing fast and loose with the law. >> hillary clinton also offering up some policy prescriptions there today, melissa. she is talking about reducing companies' ability to use arbitration clauses and encouraging employee profit-sharing among other things. but clearly, wells fargo coming in for particular scrutiny now, because they have the misfortune of having a business scandal in a political season, melissa. >> all right. eamon, thank you. eamon javers in d.c. earlier today on "power lunch" i asked jamie dimon about clinton's rhetoric. here's what he said. >> when people blanket a whole class of people by making statements, i think that's just unfair to anybody. i could do the same thing about media. i could do the same thing about politicianors lawyers or -- and

they're just never accurate. you know, this business is still high-quality, qualified, talented ethical people. smart and ethical as you find in institutions almost anywhere. >> so defense of the industry from jamie dimon. he also said that john stumpf was a good human being, essentially. at the same time, wells fargo in today's session saying to a new 52-week low, the state of illinois was going to pull investment activity away from wells fargo and this follows, of course, the move by california's treasurer last week. so where does that leave us here? is it just that wells fargo is the untouchable in this sector or is the sector on pause? >> i think that wells fargo is going to underperform the rest of the sector. but i'm not saying we're some soothsayers here, but a lot of things happening, we talked about a week or so ago. what's interesting about wells fargo being wall street. wells fargo was headquartered in san francisco, which on the continental united states is about as far away from wall street as any company could be. that being said, don't paint

with a broad brush. i think wells fargo is still expensive. i think the headlines to come out will still be negative and i would stay away. >> i love that you said that. you're 1,000% right. wells fargo -- warren buffett -- where has he been? the number one shareholder. haven't heard a peep under the entire scenario. >> what's he supposed to say? >> make a comment. this is one of those banks everybody looked at. why wouldn't he come out and make a comment? if it was in his best interest, he probably would have. >> so you read into it negatively he has not come out. >> no, i don't. i look at it, because he hasn't come out in general. i think he should come out. he has a responsibility as the largest shareholder to make some sort of comment here, i believe, in my opinion. but i look at it and say f it were a negative force -- i'm sorry, if it were a positive force, he would be coming out talking about it right now. but it's not. it's negative and takes down his campaign. >> but where a bank is located and referring to banks as wall

street or whether they're in california or not, we're talking about the banking system. and i'm not -- by the way, i don't agree with anything. i don't agree with a lot of things that have come out of washington on banks. but i will say that deutsche bank doesn't help when you've reintroduced this concept too big to fail. even though the u.s. banks have a very different balance sheet. it gets it back right into the politicians' hands to say that banks are running amok again. >> this is not a balance sheet issue. this is fraud. we understand there was a problem internally, the law was broken. but it wasn't broken at the sea-level suite. i look at it and say it's a very different scenario all together. this is a little agenda by washington. there is no doubt about it. and they're banging on that drum. coming up, how a mega deal is circling and which do the traders think would make a good match for disney. and what do you do if business at your mexican fast food restaurant is falling off a cliff because of safety concerns?

how about introduce a traditional spanish pork sausage to the menu? that's exactly what chipotle is doing. but will customers bite? we have the answer, later this hour.

welcome back to "fast money." here's what's coming up in the second half of the show. there is one thing that do spark a huge rally in the dollar, according to dennis gartman. here is here to tell us how to play later in the hour. plus, chipotle making a big change to the menu, but is it enough to get customers back into the door? a special "fast money" report later this hour. but first, netflix share seeing their best day in two months, up more than 4% on rumors of acquisition interests from, get this, disney. of just last week, reports had disney looking into a bit for twitter. so what's going on here? is disney getting ready for a shopping spree? aditi roy is in san francisco with more. >> hi, melissa. that's right. netflix shares spiked. reported rumors late friday that disney might be eyeing netflix for a potential acquisition. and as you mentioned, there

were -- those reports that disney was looking at twitter. now some of the reasons the analysts say disney might be embarking on a buying spree, espn's recent subscriber weakness and cord-cutting remains a challenge, impacting disney's business, making a direct to consumer video company attractive. plus, disney has more than $5 billion in cash on hand. analysts say twitter, with a market cap of nearly $17 billion, would give disney a younger, mobile-first audience. netflix, with a market cap of $44 billion, could satisfy disney's need for a streaming video platform that would extend its global and mobile reach. still, other analysts argue that it doesn't make sense for disney to buy either company. critics say it would be tough for disney to boost twitter's sluggish growth numbers and despite the distribution platform, netflix would bring its expensive price tag and dilute disney's epps for several years. disney has made several big deals, like pixar, marvel and lucas film. an acquisition would be the

biggest since 1995 for $19 billion under then ceo michael eisner. netflix declined our request for comment and disney did not respond for our request for comment. >> thank you. so with all the acquisition rumors, we thought this would be the perfect time to play the disney dating game. our four traders ready to reveal who they think disney should buy. let's introduce them. bachelor number one, tim seymour. ladies call him "the ambassador." fabio calls him his muse. when he's not trading stocks, he's known to rock out to kenny g. number two, knows how to handle a block trade or two, but his windy explanations aren't the woeng only thing his lady friends are getting long. bachelor number three -- >> this is embarrassing. >> brian kelly. ladies swoon, but this bachelor is so in love himself, he's been known to scream at his own name

from time to time. and bachelor number four, guy adami. he's never had to ask for anything, so draw your own conclusions. and talk about stamina between being a u.p.s. delivery man, a lift driver, domino's pizza cook, brings a new definition to burning the midnight oil. okay. so those are your bachelors. tim, we start off with you. who is disney's perfect match and why? >> i think disney, as beautiful as you are, and i'm not sure i would do much to change you, but if anything, buy another consumer products company. i think you should be buying mattel. i think about pixar, mattel. i think -- marvel sees me -- all of these acquisitions, lucas, all about consumer products, and content. that's where you need to stay, that's where your future is. >> and that's exactly why i don't think they're going to buy twitter. they're not -- absolutely not going to buy netflix. i say disney should buy their own stock back. continue to buy their own stock back. i think they would be better off doing that, absolutely. i think that it's -- insane to

think about them stepping out of their comfort zone and buying a distribution network versus content ip. so that's where i stand. >> bachelor number three. >> well, i like long walks on the we've and i think disney should take a long walk on the savannah with discovery, or because they have the animal plant, tlc. i think it's a great place for them to get into. they have all that content, plus you can have many of the parks, as well. >> bachelor number four? >> hi. >> hi. >> see, this is what i say. so we played this game last week, recall, i said disney, or i said twitter, the suit or would be disney. so it stands to reason that mr. iger should be twitter. so to develop their content, to distribute their content, i know it's expensive. i know mr. seeburg is going to say -- i think it's twitter. >> last week, the question is who should buy twitter, right? that doesn't necessarily mean

that disney should buy twitter. last week, it was in the prism of what is the best root for twitter. you think this is actually the best route for disney. if they had a bunch of billions of dollars to blow, they should buy twitter still? >> i like that. to me, it's low risk, potentially high reward. there is a chance if they get it right, we could come back a few years from now and say remember when disney bought twitter for $22 billion, what a steal they got. >> to me, it's got to be a fit. >> i think about animal plant, and i'm thinking, come on, that's -- national geographic is not "jungle book." >> come on. puppies -- they've got everything. >> elephants and zebras and giraffes. kids love that stuff. >> what has worked? buy the cinematography, brands that have value in the toys and consumer products. barbie dolls, fisher price. this is what mattel can do. >> nobody likes barbie any more. >> guy does. >> just saying. >> what's wrong with that?

>> we love your collection of barbie dolls from past and present. >> think legacy. >> at the end of 2018, set to retire. >> time for a big acquisition, though? >> that's what my question was earlier today. >> it doesn't stand there. i look at twitter and say embarrassment and i look at it -- disney saying the exact same thing. >> last question here. raise your hands. do you think disney will actually do a deal of this size? in the next two years? >> no way. >> no way. >> glad we played "the dating game" guys. thanks for coming on the show. dennis gartman says brace yourself, there is one thing out there that could send the dollar surging. how he is playing it. plus, chipotle shares down 10% this your, but they have a secret weapon that could turn the stock around. it's chore he'so. we put it to the test later this hour. you re the. you we financialece - itas gloous.

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welcome back to "fast money." deutsche bank losing 1% today as hopes for a quick settlement are fading. and according to our next guest, the troubles at europe's biggest bank could be a catalyst for the u.s. dollar. dennis gartman is here to explain. dennis, good to see you. >> always good to be seen, mel, thank you. >> so you think essentially this is weakness for the euro?

>> yeah, i really do. i think that this is just endemic or illustrative of the problems that exist across europe at this time. if it is this easy for the united states government to take probably when it's done, $5 billion, from the deutsche bank, i can't imagine that we won't be asking other german banks for the same amount of money or an equal amount or something what is less. but it's going to be indicative of what's coming in the next several weeks and months. i think if we start to see the euro break under 112, it will be very close to that tonight. i just looked at my computer and we're trading 112.10. if we start to see 112 given late tonight and especially if we start to see 111.50 overnight, there is nothing underneath here to stop the euro from declining even more dramatically. 109 and under 109, as they say, mondaysters. so i think the trend is downward and what's happening to deutsche bank is illustrative of that

problem. >> what exactly is the cause of the pressure on the euro, dennis? is it your theory there will be billions of euros flowing out of eurozone or the broader economic impact of these actions? >> i think it's the former, plus the political circumstances that prevail. you know, you have an awful lot of referenda still going to come up. problems in spain with the catalins, problems in spain with the bosks, problems in northern italy. you have all these political problems coming to a head at one time and now you have the problem with deutsche bank. and i don't think deutsche bank is going to stand by itself. i can understand why we have some problems sooner or later, if the government has been able to extricate $5 billion from deutsche, they'll go after the land of spampgs, one of many problems. if you look at what has happened to the euro, it has quietly,

inextricably been moving from the upper left to the lower right. if 112 is given tonight and 111.50 tonight. below there lie monsters. >> it's hard to argue the problems in europe. but when i look at the dollar and the euro and the last 18 months, i feel like we have had a condition where not only have the dynamics been at least this bad in the past, but the reality of central bank comfortables are not as bad as people think. also the reality that it's a current account environment in europe, it's a current account environment in japan, all place that is are the big weights and the dollar. and that's not going to change. that keeps the currencies higher against the dollar than people think they're going to go. >> timmy, the only thing i will argue against, the ecb has no choice but to continue to be extraordinarily expansionary. we in the united states are going to err on the side of being at least less expansionary, and i think that's going to be the deciding factor

when push comes to economic shove. so, again, watch what's going on in the chart. watch if 111.50 is given. below there, there is no support. >> dennis, thanks for your time. good to see you. >> always good to be seen. thanks for having me on, mel. >> dennis gartman of the gartman letter. seeburg likes deutsche bank. >> deutsche bank is a no-touch. here's the thing. we don't know how this is going to resolve. they are going to resolve it somehow. but i think it's equally as likely the price of deutsche bank stock is $2 as it is $15. so that's very difficult. i like dennis' trade here, because the one thing we do know is that they need more euros in the system. they need to raise capital. and really, the only way i see them doing that is ultimately prohib printing it. that's what i think, and euro is the way to do it. >> here is the potential catalyst. john cryan with the meetings.

you're in stoun town, go see them and maybe something is hammered out. >> the problems with deutsche bank started before the $14 billion fine or the $5 billion settlement. if deutsche bank said, maybe we're on to something -- the problems with deutsche bank started over a year ago when the stock was probably closer to $30. it's been doing this slow grind, it's obviously been exacerbated lately, because of the things we're talking about. but there is something far more endemic going on here than i believe this fine. >> i look at the euro and actually in a world of currency volatility, the euro is a rock. and i see decent support around 110 -- i don't agree. the fundamentals against the europe outside of current account have been obvious for a long time. look at the chart. there's a lot of people waiting by the door to collect money on trades that have gone nowhere. >> yeah. don't you think with 18-month consolidation when the thing goes, it's going to rip? a monster trade if this goes. >> why can't it go in the other

direction? >> i suppose it could. but it seems to me we're going to have fewer dollars here and they're going to have more euros there. >> and stronger dollar, very cautious on valuations again. look at the retail sector, any of the dollar -- you know, names that depend on that. you're looking at an earnings trajectory that's going to change rapidly. you've got to be very careful when looking at the u.s. market you said these circumstances. let's stick with banks. one trader making a big bet that financials will fall even further. mike cojoins us from austin. >> xlf, the financial etf. what trader did was go out and buy the the january 19 puts. paid 67 cents for 20,000 of those. that's a bearish bet that xlf could drop 5% or more by january expiration, which is about three-and-a-half months away. even though we have seen a mild uptick in options premiums, these are still quite priced. spend a little over 3% of the current level of xlf to make a

bearish bet. not a lot when you take a look at the drawdowns that xlf has seen over the course of the last couple years, including 2015 and earlier this year and back in june. >> mike, thanks for that. mike ko in austin. check out the full show, 5:30 eastern time on friday. still ahead, chipotle is getting ready to launch its first new menu item in two years. but is it enough to staave the supersonic we took to the streets. and google set to unveil a host of products. you're watching "fast money" on cnbc. first in business worldwide. i'm m re at thtdtreaderices. stf whatreou wking o t me sw u. okay. outhinwitradplatrmgregatheions d you ed in ond leyovisue rmn for an options seri. ok, co. hangn a second.

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you only have so much. that's why we wanna make sure you won't have to wait on hold. and you won't have to guess when we'll turn up. because after all... we should fit into your life. [ laughing ] not the other way around. [ clock ticking ] welcome back to "fast money." google getting ready for its big event tomorrow, where it's expected to go hard on hardware. launching a new smartphone called picks pixel. they have phones, right? under different brands. this will be their own phone. >> it's not about the phone, necessarily. i mean, look. let's look at the home first, right? the home -- you have apple and amazon way ahead of them in that. so that's a time will tell scenario. as far as the phone, the hardware is concerned?

that's not where google is looking to make money. it's the apple play, where they get a tremendous amount -- or google play. google play. so you look at it and say they've got -- android has 4 to 1 penetration. it's going 10 to 1. so they will continue to really make hay from the app down loads in that structure. >> going down the hardware route, is that where you want to go? >> no, i still think these guys are rock. >> is this a risk or good thing for google today? >> i don't think it's a risk. you might get a chance to buy google at 785-ish. i think in general, you could have this kind of negative sentiment as we kind of express here. do you really want them going more into hardware?

at 785, a good risk/reward to buy it. >> that's basically the top of last year, i think, so we have traded through that range. to me, the only up side to this, it's low risk, high reward, i think. i don't think there's a lot of down side. the only down side is the headline risk people like us saying it was a dumb idea. in terms of -- >> it's 1.5% lower. why not own it here then? >> my point is, i think you can buy it here and the real cat last comes on october 27th. i still think it's cheap. >> there's a wogs "would you rather." >> let's do it. >> google or amazon? >> google, no question? >> why? >> because i think valuation makes so much more sense. amazon is killing it out there but not only is it in the multiple, but google has untapped billion-dollar businesses. >> long-term amazon, near-term google. amazon has gotten a little too ahead of itself with the upgrades. i think it pulls back a little bit. >> the google, for sure.

it's just a much better risk/reward. amazon has been on a tear, so i don't want to by anything without knowing where my risk is. alphabet. >> i've got to say amazon for a number of reasons. >> i will allow the mohamed el-erian version. >> why is that? >> of "would you rather" and i'll give you a third choice. >> was that the -- >> anonymous. >> i wasn't going to give you a choice. i was going let you fill in the blank. the other -- yeah. >> wearing a dress, by the way. >> would you still say facebook? if i gave you -- >> facebook, amazon, google, in that order. back to you, mel. >> got it. tomorrow, chipotle will launch its first new menu item in two years in an effort to get customers back in the stores. the item -- >> mmm. >> is this. chorizo. will it work? our own tim seymour took to the streets to fiend out.

>> do you know what chorizo sausage is? >> a meat sausage, i guess. >> is that italian? >> mexican meat sausage. >> what would it take to get you confident going back, and them offering chorizo sausage makes it coast is clear, right? >> yeah, i don't think that works. >> i don't think it's going to help out. >> we like latino food, so of course we like chore oweso, no. >> i don't think it's going to work. i think they need to bring queso in. >> i think -- come on. a cheap beer, maybe. >> so we all have plates of chorizo just to make sure we know exactly what we're talking about. chorizo has become a very popular menu item across the board. so it does seem like a lot of people out there enjoy chorizo. >> is this supposed to make me think there is some new natural wellness thing going on? in other words, the whole point is getting back to the essence

of food that's -- comes from, you know, places we can feel good about and how it was cooked, how it was prepared, et cetera, et cetera. i don't think this really does anything. the good news there -- >> i feel great about this sausage. >> a lot of people really willing to give this company i think the benefit of the doubt. and not many of them are saying i'm never going back. >> is it really because you said would you go back to chipotle and they thought it was another restaurant entirely. i don't know why you keep pronouncing it that way. >> because it bothers people. >> it really bothers me. under my skin! >> i like it. i think it's great to get people back in the store. i'm not crazy about it. it's to each his own. but gets people back in stores. great marketing. >> to you really think this gets back back in stores? >> i think another option. >> mcdonald's will roll out the mcrib -- over many months. >> it's something they had -- this is -- listen, i love it -- chorizo is fantastic. all you chorizo fans out there.

but i don't think this is going to get anybody to come back. >> what do you call -- >> i want to make sure that people out there understand. chipotle -- first of all, this is not from chipotle. this is just demonstrative chorizo. it's not actually -- >> oh, man! >> it's from a fine deli here in new york city. and it's not just a plate of chorizo, obviously. it's a meat option to the menu. >> not feeling so good now. >> what are the other options? is look, i don't think -- i'm not racing to chipotle to sample their chorizo. >> well, you don't race there anyway, because you're a queudobo person. >> totally. on a tepid to lousy tape today, stock up again. there is something going on here at cmg. one of the things we said, and i don't think this it, by the way. the abe froman is not going to get it done -- >> sausage king of chicago.

>> with that said, once again, they make -- you get one good headline out of cmg and the stock is trading -- >> so you're with bill ackman -- >> i was originally. i think he jumped the gun and he did. >> at 430 a share, this stock is trading 50 times its next year numbers. >> it -- because of chorizo. >> to say this company doesn't have leverage, they can't pull on the marketing side and on the cost side and with their labor force, et cetera, yes, they can. but not at this price and not at this valuation. all right. coming up, "final trade." stay tuned. ped om here, othesesned ane flown his lot,eere, o ns stock ithompany, this woman, with new cabinets. thatlds g things and ides

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the ability to collaborate changes how we work. changes how we live. time for "the final trade." tim seymour. >> disney doesn't need to do a lot. the expectations have come down dramatically. still relatively expensive, but not so much to its peers and deserves a premium. >> earnings right around the corner, i'm concerned of the retail land. the xrt would be a seller here, some trepidation going into the quarter. >> xrt is your trade. bt? >> oil wants to go higher. xlp. >> mouth is on this chorizo.

burning my mouth. it's burning up the charts. >> come on, dude. >> zika. >> 30 bucks, off to the races. >> all right. i'm melissa lee. thanks so much for watching. see you back here tomorrow at 5:00 for more "fast money." at for more "fast money." ma'am ma' "mad money" with jam 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 make you some money. my job is not just to entertain but to educate and teach you. so call me at 1-800-743-cnbc or tweet me @jimcramer. uncharted waters. that's where we are right now. uncharted waters. that's because we've never had interest rates stay so low