savi is number two merck has a 40 leading pe and we haven't stump ed the santoli, so we'll have to bring it back and try it another time. >> maybe next week >> we're playing this for you as well >> queen yes. that's it for "closing bell," everybody. fa"fast money" begins now. right now, overlooking new york city's times square, i'm melissa lee. traders are -- wells fargo strategist says he is a bear among the wall street bulls. he'll explain why he's so worried. plus, airlines are soaring we've got a special report and later, the vix sinking again a top money manager says don't get too comfortable yet a storm is brewing

the dow at record highs at janet yellen gave something for investors to get dwit xooited about saying the future of rate hikes will be a gradual process. the s&p jumping, nasdaq ride tog a four-day winning streak with real estate and tech stocks, so did janet yellen just give the green light to investors what do you do now >> the green light has been there for a while. did she just reenforce the headlight? why is can fading away i think she reenforced the green light that's been there for a while. the xlf has held a level that needed it in 23. industrials continue to crush names like honeywell and boeing and quietly, the ivb continues

to go higher as well, so there are sectors that have worked and will continue to work. >> the idea that rates don't have to rise considerably to get back to neutral seems to put a cappen how far rates can go to the yup yup side think about the fed and the trillion dollar balance sheet which has people at some point puts pressure on today was a shigtly positive dollar in fact, if you have reasonable, the dax now probably has room to run. the problem with this rally is you get this rally until the next statement

they seem to be in same camp >> you fade this >> i think the fed is predispose third-degree this direction, but if you think the fed is going to step out of the way and central banks walk away, no way, they're in the game. >> the narrative underneath the eem rally in today's session is also as to why tech stocks have been rallying all year long, rightabl right? where do you go? >> that is part of what she was talking about took into consideration. they're going to continue to test and see what's going on she talked about the global economy and proving and that i think is the most important part you brought up eem that makes a lot of sense. of course, but that does play into tech. it's why tech was probably outperforming.

the next catalyst starts already. if it's as good as it could p for the financials, i know a lot of people are shooting against that, that's the next leg that brings us higher >> had a dubbish fed chair here. you have weak commodity prices and a ten-year treasury yield. those are good b ingredients if you're looking for a rally based on this global recovery that everyone keeps talking about you had an interesting conversation on "power lunch." you were talk iing about how little questioning fed chair got about the legislative agenda no questions about tax reform. seems like there's little risks

being priced in. if you were to get some sort of surprise on a legislative front, maybe you would have another leg to the rally i don't think that's going to happen because it seems liit dot seem to be priced in >> yek back. welcome back the flowers, candy the clap is great. any way. held that 160 level. that made an all time high today, so quietly, one of f major leaders has been and will continue to be the transports, which are on fire right now. >> we're going to talk about this stuff laettner show, but i think the materials trades are starting to shape up interesting.

if it gets through there, i think a lot of the material names, u.s. steel is back at that point just trade d through today. the level of traded straight down to right after the last numbers in guidance. if you look at the base that's being put in in these materials names, the charts say we're in a good place china's pumping more liquidity in they're better i think they probably greased the rails in the fall. these are trades that have been cyclical and tactical. >> the other thing, real quick though is a week r so again, we got some number frs the semis. they talked about the chip and demand that's out there. take a look at what's been going on there we talk tech, but how about the semis themselves just as their own group? you look at the names and moves we've seen absolutely unbelievable from amd to micron. >> nothing >> what did you do today tink you're going to have a breakout, have new highs, ushtd

expect laggards to participate it was interesting that fang stocks outperformed today. we were all think iing about i. interested in it in the high 20s, then the stock went down 10% so, to me, that was one i'm start tog pick at. the yield is interesting sediment is is so poor now interesting one to pick on >> they're restructuring assets. >> that takes time >> probably reevaluating a lot of core businesses, which were very set in stone under jeff imme immelt if you rook at other things, i added mosaic today some of the add spaces trading

well we saw prices got above a key level yesterday. you're seeing follow through in that part of the commodity chain, which is really been so beaten up. prices have troughed here. >> as the rally rages on, our next guest is bearish in a world of bulls scott is senior strategist for wells fargo institute from st. louis. scott, nice to see you >> you, too. i am modestly bearish, don't put me in bear camp. >> everything's a relative basis. >> why are you cautious? >> we've talks, i've talkeded on the show before, there's four head winds one is valuations. are are stretched. another is that we don't think we're going to see much fiscal process out of washington. who is going start to werery that in 2018, we're quoing to

see a margin squeeze based on high wages and things like that. then of course, we are in a fed rate hike cycle, despite what janet yellen said today. which i don't think changed a lot in terms of their outlook. so those are really four thing that is for us, are a head wind and i think the market's going to start paying attention to that, but certainly from a trading perspective, clearly, the momentum is up we bounced off the 50-day moving avrng average a few times. >> your overweight sectors make it sound like you're fully bullish. where diseaoes the caution disp itself in your allocations >> basically, we're call for that modest pullback we think we're going to end the year with a mid single digit gain in the s&p 500.

in our opinion, the cycle is not over we're not going to have a recession this year or in 2018, beyond 201, we need a little fiscal push. i think we're going to get some of that, but we'll see what happens in the oming months here, so, you know, if us, it's more of a pause. it's an opportunity to allow earnings to catch up with valuation. so really, we're modestly wearish. we think the market going to finish from four and a half to six and a half percent lower than where we are now. which we think that's a buying opportunity down there a lot of these retail clients are sitting on a lot of f cash thaf watched this rally go by without participating, so we get the pull back we're looking for, we're going to be looking to buy equities >> scott, you mentioned earnings

eps growth is probably low teens. do you think this is the quarter where we have to catch up to earnings i think it's going to be a slow gribd there. revenues are going to be better. i think we had a blowout first quarter in terms of earnings, but i think that yur going to see somewhere in 7 to 9% earnings growth here in the second quarter and really for the year we're in the 8 to maybe 9% camp, so we're not as optimistic and probably we'll see in 2018 we don't have an official number out there. earnings growth, probably at the same 8, t%, so this second quarter, i think the market's paying more attention to earnings than they have been in the while especially after the first quarter. really not what the fed is going to do this year. i think they're going hike rates in december. that's what our group thinks

what's going to happen in 2018 are they going to hike rates three times? that's question, the time frame the market's going to be paying attention to >> thanks a lot. modestly bearish >> he's been constructive and at this point, he's putting the brakes on. when i hear someone like that tell me, that tells me that's a recipe for that thipg squeezing hire the wall of worry. i can't speak to those number, but that's an interesting comment. so many people come hin here an talk about that all the time you look at what the areas are when we've seen strength, financial, valuations, had the nice move and then you look at the fang transports specifically i mean, i think the transports continue to be an area you could still own. i look at technology semi, there are areas in the market that aren't really overpriced and we hear time and time again, the valuations are high.

certain parts of the market, no doubt, there's high valuations i think there's buys out there >> to me, it makes no sense to identify or flag valuations as being a reason we could pull back it's backward looking after the fact we'll say we were at these valuations relative to the past. so to me, that shouldn't factor into it. say this we're sitting here, it's a pretty complacent environment. everyone's really constructive we've been talk about a scenario where washington is in a full blown crisis mode here they're not giving this stuff done that's what i believe and i felt that for most of this year, that's where you're going get a volatile shot. >> we've had another round of what seems like a crisis aparticipantly -- >> i just think we're going the see it we've, really, the largest peak to trough decline we've had has been 3%. so you just can't have this

massive break that can continue to go. >> what day was that what cause that had? >> it was over a couple of day period it was political though. to me, this thing is is not getting better it's getting worse that's just a fact f. the markets are comfort bable with it and they continue to be comfortable with it, but there is a situation here where people start thinking about no tax, no infrastructure, they halt a lot of the other stuff and deregulation then maybe you know, we have some sort of institutional crisis, you're going to have the stock market problem. >> this is not a market that's planning on taxes. they're not planning on much >> they're not planning on so far, they're going off fundamentals >> when we go to the smart board with the mint, what do they call that >> you aren't here last night. >> it was devastating. >> devastating loss and extra session.

a home run coming up, airlines taking transz port to a record high, but what's behind the big move higher phil lebeau is here with a special report plus, bapa barry dill lard surprising wall street and later, the pit boss is getting ready to make the fast pitch the stock is up nearly 60% this year, but can pete convince the traders go l toalin much more still ahead.

check out share of a major airline. topping the tape tchl airline is taking it to record highs at merp and united both reported higher june traffic. phil is here at the nasdaq with the details. welcome back, phil >> thank you and we're going the talk about traffic and how strong the second quarter is not only for american and united, but delta, which is going to report tomorrow. but we have news that happened within the last hour american out saying you know what, we're done with qatar, we are done with these coshared agreements the company announcing it has notified both of the middle east

rn carrier, on june 29th in a statement, the airline says given the ek treemly strong public stance that american has taken on the me3 issue, talking about subsidies for the gulf carriers, we have reached the conclusion that the relationships between american and these carriers no longer make sense not a surprise here. doug parker has been extremely adamant about saying i have no use for the way these guys conduct business we're not surprised to see them. it goes into effect at the end of march next year talk about how strong the second quarter is going to be you had american and -- out in the last 24 hours. both reporting strong number frs ewan june and the second quarter. start first with american, which is ragz guidance in terms of passenger revenue and what it's expecting and in terms of margins.

it was going to be 12%, now 13%. when you look at united, which reported strong passier rev ju n the middle of the guidance, but still, a strong business what your looking at start iing with delta tomorrow, you're going to see strong performance. at least through the third quarter. it's kicked into positive earlier than many expected >> it was not growing as fast as capacity so anything that's less good is fantastic and in 2018 sets up like a dpraet year for these guys and it's about multiple expansion. they're trading ten, 11 times, meanwhile, they've grown their earnings and having kept pace.

>> when you look at this year going into next year, i think the passenger revenue story is just now starting to be b appreciated by investors and that's why we're seeing things like the airline index had a nice move today. starting to get momentum and i think that's going to continue >> back to the news that was just out within the past hour or so does this make it less likely that qatar takes a stake in american airlines? did you consider that dead in the water because the board had to approve that? i think they wanted to take 6% i don't have the number in front of me. they can only take like 3 or 4.75%. after that, the board has to approve and the board has said, well, the board hasn't, but doug parker, we have no interest in you taking a position in american airlines. i don't think it changes it. it's still an interesting move

it sends a signal from american to these airlines that we're not just going to sit alongside and let you do what you're going to do >> all right >> thank you >> absolutely. it's a rare treat. rare treat >> treat to have phil here phil mentioned delta is reporting earnings before the bell tomorrow. dan, why don't you break it down for us >> tomorrow morning before the opening bell, they're going to report a 2.5% move in either direction. that's a little rich when you think about this today, it was running hotter than puts for most of the day. kind of evened out most of day the most active call strike was the july calls, about 4,000 traded those things break even at 56.20. i suspect you're seeing a stock at all time highs and looking to play momentum.

listen to the commentary between these guys and phil. seems bullish. so this is a short-term sort of positioning into this event to finding your risk to about a couple percent, playing for higher highs i think we have a five-year chart here you look at this thing, it just broke out. it's been consolidating between 35 and 50 over last couple of years, so obviously a beat and raise. >> we talk about the transports. tim has been talking about this for a long time. they've been active in the options world as well. so i actually recently acquired a trucker. ch robinson. got fiat chrysler today then added to a united position because it continues to be paper out there. the amazing story b about united is just think back to that whole issue with the passengers and all the rest of it and look at where that stock is now at $80 a share. it's inexpensive oil prices are at the right area for them for growth and i think delta has more upside. >> for more, check out the full show friday, 5:30 coming up, volatility hovering near its lowest level in decades.

nancy davis will join us to explain why she doesn't think the trend will last. how she plans on making money when it ends you're watching "fast money" on cnbc here's what else is coming up on fast >> that's what the chip stocks have been doing and a top technician has two names he says will keep leading the way. he'll be here to break down those names. plus -- -- pete is stepping up to the pitcher's moupd to convince the traders he has the best stock pitch yet but will they pla ay ball? much more "fast money" still ahead. hey gary, what'd you got here? this bad boy is a mobile trading desk so that i can take my trading platform wherever i go. you know that thinkorswim seamlessly syncs across all your devices, right? oh, so my custom studies will go with me? anywhere you want to go!

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welcome back stocks rallying across the board today. s&p and nasdaq up around 1% while the dow closed at a record high here's what's coming up in the second half of the show. heading out to sun valley, idaho where we spoke to barry dill lard today she'll give us the details on what he said will be the next big merge ner the space. plus, he's pribringing the heat with the one stock that he says will knock it out of the park, but can he convince you to buy we'll find out later in the show but first, we start off with the move of the day. check out the semiconductor rallying more than 1%. the stocks etf now tracking for its best week of the year. the move has been underscored by one stock that continues to seem to defy gravity. nvidia, up more than 4% today on the heels of yet another analyst upgrade, this time from sun trust. that's fifth in just the past month. wall street just cant seem to get enough of this stock, so will chips keep grinding higher? >> i think so.

pete's been on dancing with this for some time, so i think the answer is yes. i think intel sort of sideways to lower for quite some time i don't think you're going to get killed owning it, but inv nvidia, to your point, i know it can be painful on the days where somebody says i'm shorting the stock, but the story is in tech. i still think it has a chance to trade $200 a share if not hire i'll name one more i think pete cut out today amd, quietly, right back above this $14 level i think they report on july 25th big short interest of 20%. >> and these are two brian kelly name, he's been liking these names for a bit. the interesting things that the analyst directly address the question of evaluation, he says it's because they have struck curl growth story among large cap semis that doesn't exist elsewhere. >> yeah, for sure. i own intel and very comfortable

owning it. dan talk about the investments they've made in not missing this next round a company that has key chips for apple's next foep. they have a very insulated business, a motor on those you can't forget about these tech plays, too. taiwan semi. samsung. they're up 70% in the last nine months or so so we're seeing this play globally and i think it's telling you about the cyclicality of the entire sector >> i think it sets up as a sent trade. it's a great level, about 34 bucks to start thinking out a year or so, so to me, here's a stock that trades well below market multiple we know about the acquisitions and they buy back a lot of stock. just announced a new server chip, so i think it sets up as a good one here and they're going to report at the end of the month and i don't think there's a ton of risk. >> speaking of semis, our next guest says there are two big

names that could help reignite this rally hey, matt, what are you looking at >> well, first of all, after the nice rall ovey, we have to notet we had a fairly significant decline in the previous couple of weeks so, i think we're not quite out of the woods obviously, it's been a great run here, but we need a little bit more upside. first of all, you can see, this is the xlk high-tech e the tf. it bounced off several times in the past six months. it broke below that. we also made a lower high and a lower low. so that's a problem. now, it's bounced back above its 50-day moving average. positi positive, but to make a higher high, we haven't seen that yet when you get that series of, we had the first series of lower high and lower low, since the election so, i want to see another higher high to get that follow through. and if we look here at the ndx, the nasdaq 100, which is highly

weighted and the technology name, we see the same thing. 50-day moving average. bouncing nicely, we broke below with a lower low and high er high the good part is that we broke this little one month channel. not even one month, it's a couple of weeks. moving 50-day average. again, positive. but not quite above that higher high that we got in mid june now, look at a couple of individual stocks. everybody talks about the fangs, of course they're important. we saw facebook making another new high today, so that's great. however, we need it to broaden out. one of the key names is broad com. the it's very, very similar to the other two names. xlk and to the ndx same type of thing 50-day moving average. bounced off that broke below it lower high, lower low, but we've broken above the trend channel, which is nice, but we have yet to make the key higher high. we need that to break out.

another chart, this has the 100 day moving average xlk and ndx were the same thing. charts. >> reporter: were getting off too busy when it broke below, it bounced nicely off that 100 day moving average, which was a key support level back before the first of the year so, that's very positive, but again, we still need to see that higher high. woops. okay, now, moving to nvidia. one of the things, talks a bt the fang stocks. nvidia is the best stock in the tech group for quite some time now. up 130% since the november lows back by the election it's up over 500% in the last just 18 months, so it's been really one of the key names that we've got to keep an eye on. now, this one, this is its 50-day moving average. it did not break its 50-day average like the others and not only is it making a higher high, but a new all time high, again, it's not quite there yet so what we need is a little bit

more upside in all these names to really confirm that the breakout is, that the kind of short-term pullback we had for couple of weeks is over and the breakout is going to take us to new highs. >> thanks. matt, miller taback. pete >> nvidia is interesting the groult and data center is over 100%. if you look at the gaming and ark i, all of these things, you understand and look at a forward multiple, they're talking about 2040 so we're talking about a -- zpl b obl way you can get to decent multiple >> it's what makes it so interesting. i think most of them are great trades and i think they're a great opportunities out there. western digital is more of a semicompany than a lot of peopl think. that's one of those names where you get both sides, the storage and that semiside. >> what's really key, you look at the charts. every one of those charts showed a dip. that's a rates dip

i'm going to make a macro call on this entire trade if you think rates are going to move higher just getting out, all the markets, yes, for the first couple of months of that type of a move until the market is feeling out where rates are going, high multiple stocks and cyclical market are not going to like the move. >> so, a whiff of the hawkishness and we see a pullback probably. >> what you saw there. >> whiff >> it's not that expensive they tried a great firm, had a great quarter on june 1st. the stock was up 6% after earnings at 14 times forward earnings it's not that expensive. i think there's some upside left >> still ahead, volatility sinking to lows this year, but if you're looking for action, one top money manager has three areas that could be in for a wild ride. plus, pete's made his way to the plaza warming up to pitch the one stock he is calling a sure fire win for the investors in the second half of the year. it's already one of the best performing stocks of 2017.

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welcome back allen & company conference underway in sun valley, idaho this week and there's been a lot of talk about what could be the next big media merger. >> hey, melissa, that's right, the media moguls and bankers here are on the lookout for more media deals. barry dillard says while he's not a fan of consolidation for his own companies, he thinks more deals are inevitable. >> i think all traditional media players are towers because they no longer have any pricing power. but the internet has done is taken away pricing power used to be when ever you have a closed system, cable close d system, network closed system, it's easy to race prices when those systems are in vaded by the ber neber net, they're

vulnerable >> weighing in on the acquisition of time warner, he said he think it is deal will be approved despite president trump's criticism. >> i think it's superb for warner shareholders. but like all of these things, i question the strategy of if growth this, you add that on argument of synergy or not really consolidation, they don't really compete but not really, they don't really compete or not in same line of business, but i'm always skeptical. >> there's a lot of talk about what deals will follow at&t time warner, what rivals verizon might look to buy in the content space to keep up the ce oh, shot down the idea that verizon is interested in merging with disney. speaking of last minute, tomorrow, i'll be sitting down

with him in an exclusive interview at 9:45 a.m. eastern on "squawk on the street." >> look forward to that. julia in sun valley, idaho lowell says no to disney that keeps your disney netflix alive. >> crazy i think verizon is going to have to move on disney. there's a lot of vul ner bability here. you think about disney, espn, from a content standpoint then the catalog that they have on the movie side of the studio side this is made for an over the top sort of service. i get why verizon loves this deal but why does disney do this deal doesn't have to go anything. disney could control their own

future over the top. thaifr getting involved in hulu, other digital streaming. espn is not going to go quietly here i go back to i'm comfortable with disney's evaluation that's what should be bought and is bought. that was cheap some of the parts acquisition and that's the one that happens again >> lion's gate cbs says no. >> they live on their own. our buddy here the other day, the whole conversation lion's gate is its own animal if it does, it's a bonus to tim's point, viacom, not saying disney is expensive, but viacom shouldn't be almost half the valuation. i think it goes higher >> tame for our special all-star edition of the fast pitch, each day this week, wup of our trader this is week will pitch a stock they think the is worth a buy.

he sent me up to the plate >> here's what we're look iing t i've got the camera man leading me i liked to talk about management first. i'm going to start dissecting it when i look at what's going on here, steve win, unbelievable management skills. how about the commitment he has for his own company. he now owns 12 million shir shares hf ioof his own company about $35 up to about $63. maybe $65. two million share he is purchased in that time those have doubled for him when others don't, he takes advantage. mchaehl has been on fire in the last couple of quarters, it's been incredible

he and sheldon adelsoned about how it looks like it was bottoming at the end of january. that's been coming back. a graut growth rate of about 20%. the overnights are starting to pick up. double digit growth there. so more revenue from that. the investment in vegas and boston, this is something they continue to look at the united states it's not over in the united states even though about 60 perts of the revenue is come from mckau the investment in vegas as that continues to go out. this is a cash flow king this company cash flows about $1.3 billion operation alley i like everything about it despite the fact this is an absolutely incredible run you're witnessing here in the stock i think the stock goes higher from here. i own the stock for that reason. >> i agree and i think steve wynn has been opportunistic in a way others

haven't been brave enough to do, but how do you get past the valuation? >> well, it seems like everything, but how about this >> what if i told you, if if mckau is four times bigger than vegas and they are starting to take share in mccow, i think you'd say this is pretty impressive if they can grow their share advantage there, that could be huge each percentage is billions of dollars, so this could be something big for them do you guys left side of the desk, remember meeting mr. wynn in las vegas >> we did a lot of thing >> lack at that picture. you know something, you want to hash it out now. >> simon sorry any way, you have any questions requester pete let's vote let's vote no more questions. made such a solid pif. go first

>> sttim is behind me you win. with wynn. and this is a story since he started buying stock when they had a $60 handle maybe a $50 handle i think it continues to grind higher dan. >> i found pete b to be very concise and i found him to make a compelling argument. the stock up 50%, i would say you're long, hold it if you want it, you hold it. i try. what's your vote >>. >> they're not show iing me anything >> i think the stock has been very resilient with a fair amount of negative news. technically, it's well suited. you get pushed and finally, dan, pete, win you over yeah, i saw that with his pick for wynn, vote in

our pole we'll reveal the results later in the show, plus all the noise out of d.c. hasn't managed to rally the markets, so how much longer can this trend continue ue me p money manager has some cls,or"fast money" rig after this your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember. there's nothing more important than your health. so if you're on medicare or will be soon, you may want more than parts a and b here's why. medicare only covers about 80% of your part b medical expenses.

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welcome back despite political uncertainty here in the u.s., volatility remains low. bob pisani joins us now with more >> seems like it should be higher, but it's not, so certain things do seem to move the market it dipped when the trump tax cut seemed in pearl, but not for long, so there's several ek pla nations for whoi the markets haven't moved much in the last two years, first, thanks to advances in trading technology like automated trading, the markets become extroemly efficient and traders can now m employ fist sated hedges to reduce volatility. collectively, they may be working. second, etfs and the move to passive investing are playing a role in reducing volatility. a lot of people are no longer trying to figure out if coca k e

ra or pep is are trying to -- and this may be the most important factor the fed has tamped down volatility for years by keeping rates low and encouraging people to buy equities its massive program. that's now ending more easy money from the bank of japan are certainly lowering volatility overseas, now, remember, the markets ultimately trade on a multiple of earnings and they're at historic highs and the global economy is improving, and that's what's really helping keep volatility low now the last time the vix was elevated close to 20 for any length of time, that was early 2016 that's when the earnings recession was onened it got better volatility went down we came out of that. you want stocks to move a lot. how about a recession? not going to get that. that's not on the horizon. but something less could move stocks like a risk to margins for example, so for example, that's been some talk about sudden increase in wages

the restaurant companies mentioned that, sor an increase in commodity costs, right now, people seem to be content with earnings where they are. back to you. >> thanks so much. it's interesting two factors bob mentioned first, automated traditrad ing as well as a rise of passive investing, those two thing rs here to say, so does that mean we're looking at lower volatility world >> at this moment, we are. the way we tastarted the show, h conditions are in place and investors don't seem to be worried. bob mentioneded there's sophisticated hedges if you own options premium this year, it's been expensive. it's been a drag on performance, so in a lot of ways, you almost want to buy it when you start to see a pick up in volatility. when you start to see the risk fak factors increasing, we've seen a lot of volatility in every other class other than equitieequitie that's going to come at some

point and with all the cash on theline, people want to buy it our next guess wants you to be prepared nancy davis founded quadratic capital management just be clear. you invest in options strategy what do you see in terms of volatility a lolt of people use options as a way to augment your portfolio. right now, it's popular to sell because we've had eight year of very low yield around the world. so there have been a lot of strategies that have been created to come in and sell option, collect the premium and the most you can make when you sell an option is the premium, so for us, since our entire portfolio is constructed with options, it's one of the most exciting environments i've ever seen in my career because you have you have option prices,

it's like a super sale and volatility across equities, fx, rate, commodities, credit, all these asset classes, volatile sitting at 20-year lows, so for me, it's an incredible exciting ti time >> so the low. in a low volatility world in a world in which interest rates are low. >> we like owning commodity. specifically in the agricultural space. they're really depressed because there's been a huge flow of funds into strategies. these sell options, they're delta hedging to try to make the implied difference, but because there's so much supply into a market with thot a lot of demand because the producers tiply are selling as well since they're

long the commodity we see a lot of opportunities owning sugars soybeans, natural gas, oil, because inflation expectations are also at tremendously low levels and we're faces with this fiscal uncertainty. at the same time, monetary policy, which has been the pedal on asset prices is starting to ease off >> we like being long the commodities because we think it's attractive, real asset in the space of inflation we also like using options to express shorts and given that seeing in some emerging market, where right now, the popular trade is em for carey for yield, for return is too high

and real rates are so low. that it's very attractive to have short exposures on some of these countries that have very weak deficits and are trading at all time highs, we like being short turkey nobody can stay short in just the stock exposure because the market is all all time highs, but options, we have staying power. >> thanks so much for coming by. hope to see you again. over to you. >> we talked about getting long commodities and that makes a lot of sense she's talking about probably em credit where if you look at the emv, these etfs that track credit, it's a positive carry trade. the flows are things that probably continue mostly because i think the adjustment has been made and i think i wouldn't be running from that trade, but protecting yourself for

emerging, this is a buying bonanza. >> i agree the other day, i was talking about you have to have portfolio protection dan talk about the drag and there's no doubt about it. if you've been doing this, at least you've got the protection to the downside to give you comfort, so when you have the moves to the downside, you don't feel the need the sell your positions out. you've got that insurance policy there. that's part of what she's talking about. she was also mentioning the idea of positioning for the short side rig up your alley and a cheap volatility to play for the short. >> dan's cheap >> very cheap. >>al gait arms >> still ahead are you buying pete's pitch? vote if our poll now still have a couple of minutes it is 50-50 right now. we'll reveal the results after the break. liberty mutual stood with me

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welcome back let eets g's get the drul roll g i'm at the edge of my seat i don't know how it's going to go are you at home buying pete's pitch for wynn dirty dancing. ♪ how do you feel? >> understandably why people are apprehensiv apprehensive they look at the stock and see the reaction, makes sense. >> pete? >> i would say wynn, but i'm going to go with united. these airlines are going higher. >> stay long delta airlines. and numbers. >> dan >> i think ge.

>> great to have you back, mel stadium clap i'm clapping inside right now. you know what, eli liwill lily, positive today >> see you back rehe again tomorrow a 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. days like today. days like today where th