>> what do you mean by that we were 450 an hour totting. >> you ended up 1% you gave up 1%. >> apple earnings, job report on friday. >> yeah. >> mid-terms. >> that stock held up. it's not a bellwether for other companies but it's a sentiment indicato >> that does it for us on cloebls. >> "fast money" begins right now. "fast money" starts right now. live from the nasdaq market site overlook sometimes acquire the trader are pete najarian karen finerman abdan and tim seymour. julian emmanuel says a rally is coming you will not believe now high he thinks it goes we start there with the epic rally to end october adding to yesterday's huge move. the dow and s&p having the best two day gains since february it was an october surprise on wall street as stocks got crushed and it looked like the selling would never stop but the

market ended op a high note with the major indices climbing out of correction territory. are stocks out of the woods? are we setting up for the end of the year rally. >> we are out of october we got the couple days in a row, everybody knows this stat now. actually if you hadn't gotten that ee roenz headline on trade trafrs three days ago we would have strung four days in a row i think it comes down to valuation for the s&p. so we have had pretty good earnings this we can the companies that needed to perform, especially whether facebook or even gm today places where the industrials were being pushed around you got it i think the bottom here -- the bottom line here is that valuations for s&p right now i don't think are extraordinarily cheap. and i think that the dollar, the fed trade tariffs and yeah angela merkel are big issues the next three to six months. >> tim. >> i think the dollar is an important one. tim brought it up earlier. trading the dixie at 9

10-year yield at 3.14. the fed meeting november 8th the language is important. and no one expects an increase right now. after the markdown in the s&p 500 valuation is favorable you lock at facebook -- i know it's a stock. >> hold on. >> dan being destructive right now. >> you know, one of the things that i don't like to press lows. we just had a pretty dramatic selloff in a short period of time i don't think it was particularly panicky but it was panic in a handfulful of stocks we've been talk talking about. they all go down together that takes the market down. making one point we bounced off 2600 in the s&p 500. if you look at the last time we had ten% selloffs from the all-time high it happened in the summer of 2015, o, q 1 of 2016 january and february of this year what happened? any re-tested that prior low and i think interests a chance we have a few more% to the upside and then down to the test

the 2600 in the noft distant future. >> he started off positive. >> started off great and then. >> it did sound good days like today while pun, i don't love them actually so much either you feel like oh have i completely missed it do i want to buy here anyway to me it's interesting we are getting as 80% through earnings. then what drives us when it's no longer earnings? that's a little scarier because we have mid-terms, the fed and we have the trade situation. knows are three big things that all could be potentially really market moving. so i get a little bit nervous. i like to pin what i buy or sell on fundamentals. sort of moving out of the fundamental phase. all that having been said i thought -- >> at the same time these events seem to be asymmetrically priced into the market. you look at mid-terms, the markets are pricing in a exactic

win in the house and senate remains republican on trade -- trade if there is a deal or some sort of upside. >> you think trade is in the market, karen. >> no be, i'm saying a deal is not priced into the market if there is any incrementally positive news out of g20 in argentina that could provide the market with something to move sharply high sfleer i would argue that i don't think negative trade consequences are priced in. i think the s&p at 170 on most for earnings next year quickly goes to 150. >> meaning the next round of tariffs go into effect in december meaning the old tariffs go up to 25% in january. >> 25% i think the s&p has a moderate impact on earnings, taking you down to at least flat not up 7% attacking valuations >> it's mid-terms combined with trade i think that's the fire entire thing and the other thing is there an all clear that's been run out for us because volatility is still above 20

the fact we are trading between 21 and 22 when had we had the vxx that signaled a explosive move and see come and gone getting up to 29? i don't think so we are in a position now where at some poemt the algos take over like at the end of the today frankly. you look at the end of the trade today we were up 400 plus points before you could bling an eye the "closing bell" finishes up 240. that's a algorithmsic. >> you think that's month end i think so. >> if you press the last hour of selling what happens in the first of new year -- first month of first day of the month that thing. it's a dangerous setup to press it right now without any specific news. >> i thought the rotation was interesting, today, right. retail which had been doing well up until yesterday. >> yeah. >> that was sort of all right that's a source of funds now. >> staples got hit. >> got hit

but staples is not place to hide too spebsive banks had a rally today. industrials big rally. tech big rally. >> and fang got a little bit of that lift and i think because of the fact that the deacceleration of what people expected how bad it can be for facebook wasn't there. and advertisers are still there. the combination of the things does that mean they are out of the woods? absolutely not they have major pressure but they talked about -- zuckerberg talked about we have a lot of different areas we have monetization possibilities that's something we already have priced in in my opinion. we are spending a lot of money and they are and the growth of facebook is slowing. but other parts of facebook i think still have growth. >> just quickly on global macro. china pmi last night was missed on the statement number. when you get the private number tonight you could print with a 49 handle which means contraction. that's concern the news out of the eu about

angela merkel resigning basically means she is out as chancellor sooner than people think. that's a stability part of europe -- i can't underestimate how important that is. it's not tomorrow's trade but it's absolutely 2019 first quarter trade. >> quell o well "fast money" fans everywhere new to expect the market rally with the end of the month because the next guest called it a week ago right on this show. >> we're buying this dip if you look at the last four days what has happened is we have transitioned in the markets from uncertainty to the fear okay and all of us sitting around the table know that if you look at the last 30 years every time you buy fear it works out. okay we don't think it's different this time. >> we are joined once again by julian emmanuel of btig great to have you back. >> great to be here. >> was that it >> when the market is as volatile as this is declaring is that it with capitals it's never the right thing to do?

it's a process volatility as we observed. vix is still above 20 which means there is lots of surprises. but today was encouraging. would we have liked to have seen the market close near highs? absolutely but there were three things about today. firps 2711 in our mind was a key number because actually you had explosives negative readings in intraday volume and both of those days where you touch those numbers at the low and the high. but really as well, the other thing for us is upon a day like today there was still lots of buyers of puts and that almost never happens when you have a as strong an upday as today for us that's the kind of hedging, the kind of residual fear out there that we think once the uncertainty of the election rolls by, however it sorts out, that closing of those hedges is going to fuel further upside. >> did you like what helped the rally in today's and yesterday's session?

we had the pullback in retailer home builders, strengthin financials strength in tech and communications services. is that the napback you want to see. >> very much so. >> okay. >> and the other thing that made us happy, when you see one of the world's marquis auto makers up 9% op incrementally good news it tells that you you know those are names that are heavily shorted, names that are essentially discounting large slowdown next year if not an outright recession, trading better, because you just -- and the economy isn't there yet. we are still on decent footing. >> i was going to say real quickly you mention gm and the housing and stocks are down from the 52-week highs. what kamgtsizing them in do you acceleration in the growth in the u.s. on globally that takes the groups that have been laggards back up >> we have to go become to the 2,800 pound gorillas in the room

number one, trade. you have to have some progress in china, tim mentioned this before if you don't have progress there, 2019 could be a challenge. the other thing is, again, the fed. we have talked about in quite a bit. we think the fed is on the cusp of making a policy mistake we'd like to see them at minimum if they're going to hike in december think about signaling a dovish hike. because quite frankly the risks of an escalating trade war, if you fix it there is upside to beyond 3,000 if it escalates 25% tariffs and further acrimony next year you could trade down to 2,200, 2,300. quickly. it's a large risk reward. >> the fed hikes rates in december and signals more hikes in 2019, definitively and you say the market goes down on that. >> that's likely a negative absolutely. >> but the positive forces in the market are enough to bring the s&p 500 to 3,000.

>> we think so. >> you are painting the fed in a box then because you say that everything lines up right for s&p 3,000 positive, positive, positive but then you say but the fed has to be dovish. >> or what leadership julian that's what concerns me. it seems the technicals have broke broken down for triple qs and certainly for everybody other than apple where is the leadership coming from. >> it's having to come from the value oriented sectors he is and stocks the industrials, the banks, you know, energy, all of these things that when we look at it have worked on the shortside in year are really where the profits of shortside traders lie. and those things lyric particularly thinking about energy at 6% of the weight of the s&p at $65 to the barrel of oil versus a historical weight of 10% there is lots of room for upside particularly when you get iron sanctions renewed next week. >> julian thank you good to see

you julian emmanuel of btigp what do you think. >> i did for a trade the other day on monday -- i don't know if saw this dan you might have put it on the show the triple qs we saw huge bying at the end of the day monday i'm out of that trade. because i don't believe what i'm seeing in front of me because the volatility in the markets. volatility is volatile. >> it's not even necessarily fade it you got to trade it. because at any moment i could see easily i fwree with julian -- 3,000? yeah, maybe, under the right circumstances maybe. but otherwise there are plenty of headwinds out there that could push us down, whether the fed or trade tax or the mid-terms. all those things. >> really important to georgia are go back to what he said. what gets us back there? what's the catalyst? you got to separate the markets and the thing the economy happens there that cattlize those stocks to come back. and i just don't see it right now given all the uncertainty. the thought we are getting clarity on all of the issues that we think are headwinds we

detailed in the next couple months to get the markets to 3,000 just doesn't make sense to me right now. >> the magically reappearing julian can probably answer that. >> hey, wow. i thought i got by goodbye the guest that doesn't stand. >> i faded just a little bit of my gm position today because i look at charts and having rallied about 14, 15 off the lows very quickly -- i realize we have fresh numbers. i love gm i'm a trader on this but gm, banks, industrials rallied early cycle. a strong argument we are late cycle why do they take the leadership now. >> this cycle is quite different in that you had such a disparity between growth and value that even if this isn't a secular shift back towards value, the valuation disparities, the price gain disparities, you know which is, again, part of the angst as to why people look at fang and saying they are broken, et cetera and when you look at a stock

like the world's biggest mobile phone maker who is going to report tomorrow, it's only trading at 15, 16, 17 times. that stock is different from the rest of the group. that stock's lessens active to a fed who is hiking. so it doesn't necessarily have to be in an environment where correlations are lower it doesn't have to be all tech. >> but it's not lessens active to slower global growth and brewing trade war. because ultimately the apple is the last battle fought in the trade war. and ultimately we see considerable damage done to their supply mcmahon and possibly tariffs to the phones come back here. >> it's a fair point looking at the last several weeks in the market my suspicion is is that washington is getting that message >> julian, once again, thank you for joining us. >> always. >> great to see you again. >> joining on the hair. >> fantastic. >> despite the two-day rally 70%

of the s&p 500 sitting in correction which names are poised to make a comeback plus pete steps up to the plate to pick out winners from the october carnage. the fats fast pitch and the apple comes up amid the market chaos but it comes down to earnings tomorrow. we tell you what the traders bet on ahead of the report on ahead of the report live from new york citerage lik, that's tough to do. schwab does it. next question. do you offer a satisfaction guarantee? a what now? a satisfaction guarantee. sometime and low costs, backed by a satisfaction guarantee. if you don't like their answer, ask again at schwab. more "fast money" right after this place, the xfinity xfi gateway.

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overdrive. soaring 9% after reporting earning of before the bell the stock up 20% in a woke phil lebeau live in chicago with the numbers. >> mels ia, an impressive report from general motors, third quarter beating by 62 cents a share. sfl 30 cents because of a tax benefit. but that's still an impressive performance from general motors in north america this company posted profits of 2.8 billion-dollar looking at china, the company reported record profits of almost $500 million. let's look at auto stocks. ford, general motors, toyota, fiat chrysler. gm having the best performance the last month this is an etf looking at auto makers globally process. it's trending down the last six to eight months. is got a pop this week a pop, not a huge mouning return but moving higher.

but it brings up the question, where are we in terms of an auto comeback do we see one around the corner? couple of things to keep in mind sales remain strong. that's the encouraging news out there. there are higher costs because of the tariffs, because of commodity costs but also selling the vehicles at higher prices so able to offset that by passing along to the customer but still no valuation level and speaking of valuation you have to look at tesla. because the last month has been, well a roller coaster for tesla. but ultimately this is a stock moving higher the last month following the first profit that they reported in a long time, better than expected earnings. and melissa, you know i love to give you a stat of the day i give you this from the earnings reports of the third quarter from gm and ford globally general motors profits per vehicle up 47% gm ford's profit per vehicle in the third quarter, down 17%. >> wow. >> showing you two companies

going in different direction. >> phil, what's interesting what stands out in terms why the company looks better after the earnings report? because you look at how the stock moved. >> right. >> at september levels, hasn't advanced too far and raised the upper end of full-year guidance and lowered it back in july. where are we with this company. >> i think people are concerned we might see the consumer paul back when you listen to the gm conference call. mary barra is clear they are seeing strong demand while there may be dealers saying we are seeing a pushback on interest rates, the sales are still there. the transactionis prices are close to record high that's one reason why you might see a little bit of conflict in the eyes of investors saying, boy, we really like what they are doing in north america no doubt about it in terms of where the truck market is, the suvs, the cadence of vehicles. at the same time, are we near the peak in terms of sales and if the u.s. starts to cool off that cools off the profit driver

for general motors and for all of the auto makers >> phil, thanks. phil in chicago for us phil listened to the call. karen you licensed to the call. >> the call was impressive, flo doubt. and he talked about the differential between ford and fwm. the mad cabbing is doing great in china the mix in the u.s. was great. i mean, gm financial adding- which is now dividing money up to the parent. and they expect they will continue to do so. it was most interesting to me that in an environment where a owe company after company has tried to be a little bit cautious because of trade, china or who knows what else, how it's going to shake out, rather -- they were comfortable enough to not only be optimistic but maybe even to say maybe even upside beyond that. that was really impressive to me. >> bold or stupid. >> i don't think this management is stupid. i don't. i think they have a sense of

where their business is. >> and it's that good. >> it's that good. could it change? of course it could but i -- every time it's up a huge day like this it gives some back but i don't want to trade around it i think at this level it's good to own. >> the quality management teams deserve a quality multiple mary barra since she came in extreme lined the business three distinct profit centers crushing it. president north america is impressive because they are part way through the pickup release cycle. as 6 bucks which they reiterated for 2018 you can do the math it's six times and paying 4.5% to be there. every time they reported the last two years they've reaffirmed numbers that they gave you despite the market's skepticism why did i sell a little bit today? because i think after 20% move, mofrgt up to the 36.50 level i think i can buy that back. and the way it traded i think i

will. >> would you find a reason to add if it doesn't fullback. >> yes. >> i think i told oh you trimmed some today i didn't i would rather to have sold calls against the position rather than taking off some of the stock. because it is so cheap and they talk about strong demand and the profits they are making not just here but substantially. that existential shall- dsh which heard it time and time again about it seems like they are delivering now and that's great. >> you remember last woke i frequented out on. >> you remind me with which time. >> i suspected people were waiting like tim to get out of this i hoped it would go become and retrace closer to 30, be dogs of the dow into 2009. let me tell you why. this year started out a lot of analystists were bullish on the autonomous story saying it was a $30 billion business for gm. gm bought cruise invested in lyft ride hailing kind of positioning themselves to be in the future. >> they are. >> automotive. >> but i want to buy that story

into 2019 kawhi uber is getting ready to go public when lyft's going public. >> but it's not this this cycle. >> you're freaking out on me here brother you want to buy this story down and out where it's not being valued for anything. because that could be a great 2019 story for gm. >> it's not getting a lot of value. they have had two deals to give a valuation to cruise. the last one being $12.5 billion. >> for more on gm and auto space go to cnbc.com you're watching "fast money" first in business worldwide here is what else is coming up tonight. >> i'm freaking out, man. >> that's what investors say ahead of apple's earnings report but don't freak out. we tell what you to expect plus, pete najarian is stepping up to the plate to pitch one name that's been hammered in the october meltdown he tells us what it is and why he thinks it's heading for ar

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welcome back to "fast money. despite today's big rally october has been a rough month for markets. with 70% of the s&p 500 in correction bob pisani live at the new york stock exchange hey, bob. >> at least we got out of october alive. we got a terrific rally lifting the dow a now points from the monday low but it couldn't ob steuer the ugliest month in years the s&p down 7% the worst since september 2011 there were several themes. number one, a slowdown in global growth concerns in europe and china, on top of tariff issues number one it badly damage the big energy, industrial and material names. you see down double digits for the month. technology was hurt by big worries about the sloweding in semi conductor demand and take downin the high growth fangs consumer discretionary hurt by a

drop in amazon and a brutal month for housing stocks concerned about higher rates and slower sales now, consumer discretionary -- this is a very good example of what happens when a stock is too dominant in one sector amazon is 23% of the weighing in consumer discretionary that's too much. when it dropped oh the whole seetare dropped. you throw in declines in home depot and the home buildersers appliance makers and you can see why it was a rough ride for consumer discretionary. not surprisingly when the market turned late monday these most oversold sectors you saw there were the once bound communications services helped by the big rally in the fang names. facebook, netflix, alphabet they're in that one. now for november watch the buybacks november is the busiest for buybacks and corporation haves plenty of dry pouder to buy back stops cheaper at king of buy backs has yet to report you know that one apple reports tomorrow after the bell.

they are by far the begz user of byebacks out there they prepurchased about $44 billion its stock they could buyback 100 billion-dollars in stock this year. 10% of a all the buyback they have already melissa reduce the their share count about 5% that's remark rkable 25% reduction in share count in the last five years. >> bob, thanks bob at the nyse. let's talk about beaten down jairs looking like a buy rob is at the plasma ready to break it down for us. >> hey, melissa. obviously cyclical as bob pointed out have been hammered into october three sector charts. energy, industrials and materials. we can see the weakness. i think there is a couple of points to look at. first off looking at the long-term charts of the top secretaryners the relatively in the back into 2008 the relative performance in the

bottom panel is such an important indicator where that leadership in the in accurate. note the real andy verges and into 2015 and 2014 and it's bleeding lower. kept you out of these sectors. there is potentially bottoming action on a relative performance bases. it's early we can see the price of the energy sector come down to support. while it's a small picture on this particular chart, a lot of the energy names have been hammered and fairly oversold we are seeing bounces take hold. looking at materials, we have a similar profile. the relative performance diverging meaningfully from absolute price and really weak into the last couple of months breaking down to this big trading range we had through 2018 with the absolute price, the real price of the index back to that 200 weak that tends to be a long-term support level. lastly looking at industrials, you generally have uptrend in price and relative performance is more mixed. big sideways trading range and

roughly at the low end at 200 week moving average suiting up for bounces. fom lee put out out an trrg note highlighting when the oversold sectors they snap back and we see that here now. so what do you buy i still like charts that are in better technical profiles. there is lots of names to buy that are dumpster stocks but conokay o in the energy patch this is a daily chart back a year and a half. sitting at important price support right at the 20 oh day moving ank and starting to hookup and you see a little bit of relative strength that's an interesting name in a beaten down sector next, looking at the industrials, these are all stocks that rank highly on our quantitative model the sam doctors dqm model. here is norfolk and southern there a stock that corrected back to a lot of support right to 250 li 200 day and the

relative strength is hooking up as well. good looking charts. still in upfriends relative strength improving. knows are healthy names to look at within the beaten down sectors. lastly, while this is a weaker name and this is a weekly chart farther are back to 40u,ment air products again highly ranked on the quantitative model ranked by sam doctor off the 200 week, 4-year moving average and seeing early signs of a positive divergence three names if you look to buy in the cyclical area those are names i look at. >> rob, why don't you come on over stephanie will bring the chair in. >> way to go stephanie. >> thanks. >> so in terms of seeing these sectors as due for a bounce. >> yes. >> the sectors seem to paint a picture of a strong economy or strengthening economy. >> on the bounce. >> or i mean saying these sectors are bouncing materials, energy and industrials >> they're certainly in longer term downtrends.

i want to separate technically difference between stocks and staging overhold pan recovery rals last year end possibly quarter seasonally strong periods almost like a beach ball pressed down and pop up but i'm not concerned about sustained leadership on the whole market cycle i'm concerned that the began in 2016 is fraying. you are seeing lower highs seeing trend breaks develop across emerging markets. sickle sectors like financials and industrials. tremendous trade but unlikely sustained leadership from a technical standpoint. >> you threw a bunch of stuff in there. look at the xli mel's question was really like the picture you paint is that if those sectors rally that would suspect the economy is improving because the sectors would benefit. low back at the xli broke the two-year uptrend made a massive double top from earlier this year to recently down in a straight line 209%

you know, what you expect out of a group like that that is really important as an input to a lot of people trying to figure out what's going on in the economy. >> it's a great question looking at most of the cyclical, banks, industrials, materials, all of these have broken the two-year uptrends. two to three opinion-year. if the cycle bottomed in '16 process 2 and a half years into the normal cycle looking for a major low 2020 2019 is probably rough but you get the countertrend moves. that so many of the names have been hammered in the last several certainly the last couple months process but many peaked back in beginning of '18. the trend breaks tell you a bigger question in my opinion from a technical standpoint. >> you picked air products was it anything specific to them or just the chart compelling. >> very different than the other two. the other two were in rising uptrends they came down and started to bounce. air products screens weal from a quantitative standpoint on the sam doctor screen which i think a good screen to filter out the

best from the worst fundamentally. abthen from a technical standpoint it's at the 200 week moving i find that ample is a good long-term support level and you see some relative performance divergence prices gone to a new low relative performance has not that grabs my attention. >> who is the sam doctor you mention. >> sam is our quantitative scientist. >> doctor. >> the doctor is in. >> incredibly bright guy. >> is that a a name. >> he is incredibly broit helps me all the time and has the terrific model we've been looking at that tracks very well and it's a great screen. the quint i'll one stocks continually not every month but quint i'll five are the disasters you want to avoid them. >> go sam doctor. >> rob, thank you. >> still ahead we have much more on a wild month for the markets. plus, our own pit boss pete here has one beaten down name he says makes a major

comeback fast pitch coming up the apple reports earnings rrmoow and traders betting it could be coming back to new highs coming back to new highs we tell yob has helped us grow for the past 30 years... they helped us prevent equipment problems during harvest and provided guidance when we started exporting internationally. now we're working with them on cybersecurity. my grandfather taught me to make a wine that over delivers. chubb, over delivers. "fast money" returns

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reports results. one initial demand for the new 10 s and 10 s max, the latest and greatest phones that became available on september 21st bulls betting those would be hits and driving selling prices higher q 1 guidance that's the critical metric, olson saying that tells us the level of confidence the apple has in the 10 x and how well the xr performs 80s not hardware of course street expects the business to jump 20% in the quarter to more than $10 billion another hot topic mainland china reporter accounts for 15% of the annual revenue the top five smartphone vend ner the country. how did chinese consumers feel about the new iphones especially the max, larger iphones have historically attracted a lot of fans there. >> josh in san francisco pete how are you trading apple. >> i'm long it going into the number i would absolutely add i think

if it does down unless something shocking on the earnings call. but sometimes the reaction i think is overreaction to one small negative the reality is i'll be looking at two things really procedural practice early services he brought that up as one of his. but also wearables because if the growth continues in those areas i think people understand the phone is lightening up a bit. i hope -- they should understand that but we'll have to see. i think those are the two important parts of in report. >> where do you stand on apple these days >> i own a little bit i bought it after the last quarter which was so extraordinary unfortunately not before average selling price to me that's really important in services revenue and also i mean in the context of the broader trade situation i don't know what we are hearing about that. >> that's interesting to me you bought it after that number which i get. so did i actually. but what was the catalyst for you to say valuation about as expensive as it's been in a couple of years i don't think it's expensive but what had you going in there?

what changed for you on that number >> well, it was sort of strength cross the board. i mean they seem to be executing on every metric, the average selling provides was very good services were very good. and i guess i think that the evolution of that story from pennsylvania hardware sort of multiple company to a steadier state a higher pe multiple company would be happening. >> the one thing interesting about that is jp morgan actually now prices in stock on a mended multiple they do a hardware and software. they do it 16 times on the hard which are and 25 times on the services business, much like a consumer discretionary or software company that's interesting. >> the options market implies a big move for apple dan what are you seeing. >> about 5% either direction about $10.5. that's a little rich to the four quarter average. 4.5% today you saw a lot of action in the november second weeklies, the most active strike was

actually the november second 220 calls almost ample 4% dollars it looks like those were bought near the money ways to participate for a move back towards the prior highs. the stock seems pinned to 2.20 right here i make one point, when we look at this chart, this stock acted very special over the last few weeks. when you think about how much damage is done to the maga complex, the microsoft, the apple, the google and the amazon, this is massively massively. >> love how i maga puts it in he has a mag awe complex. >> i do. but look at the two charts there. obviously there is some support just below currently levels. 1.90 that's the air pocket on the disaamodt down to prior level. >> check out the full show "options action" friday 5:30. >> weed stocks flying highly after falling double digits. there is a signal the pot trade could heat up. plus pete stepping up up to the

mound pitching one sickly stock he thinks make a major turn around around find what do you look for when you trade? around find i want free access to research. yep, td ameritrade's got that. free access to every platform. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have an out those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. money" returns td ameritrade. ♪ their medicare options... before they're on medicare. come on in. you're turning 65 soon? yep. and you're retiring at 67? that's the plan! well, you've come to the right place. it's also a great time to learn about an aarp medicare

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high 3/4s of stocks in the index in correction or worst. but pete sifted through the wreckage he has a name making a comeback what's the pitch. >> this is an entire sector beaten pup biotech celgene when you start with the ceo this is a ceo who has been in the world of pharmaceutical as well as biotech 30 plus years. got to love that experience. also a gambler, a divide who is aggressive made the largest squiks for the company in juvenile therapeutics setting up for something good into the future. but for now look at how attractive frs a valuation perspective. talking single digits pe this is a company buying back shares great cash flows i think fundamentally it's in the right spot but they have to prove they've got growth a few days ago when they reported you look at the earnings growth, in the 20% area the revenue 18% growth they do have growth when you

start looking through in company you get very, very impressed and by the way, they've got an incredible lead drug that continues to grow but on top of that there are five different names in the pipeline right now that i think poepgsly are blockbusters when you look at all this together it's oversold, i think in creates an opportunity. >> pete, i tend to agree and i think it's representative of biotech overall but i worry that guidance for 2018 wasn't stroung strong enough for a company disappointing for six months rev limited generics what is the tide turne >> one of the things they talked about gichg the guidance, though, we are talking about a company that their continued growth is i think very impressive i think that somehow it got discounted and everybody was angry. one of the things they missed on talking about some of the revenue and missed by like $100 million at the very most that's really not that big talking about $15 billion in terms of revenue projection. so keep an eye on this i think

it's cheap. >> no more questions are you buying pete's pitch on celgene. >> yes, i am it's hard to tell but that is pete yeah i am are you -- you have an attractive valuation. >> dan. >> i'm also buying if you've been buying pete picks the last month you couldn't afford a pumpkin he turns it around >> you drew pete as a pumpkin and called it a why not only is the valuation there but i think the expectations for in this company are no where bar is low. >> clean sweep on the desk are you at home buying pete's pitch? you can vote in the twitter poll@cnbc "fast money. plus a check on the cramer cam and jim is sounding off on fang and why he regrets creating the acronym in the first place maybe he should have created maga i doubt it catch him at the top of the hour on mad

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huss a combined market cap of $47 billion canadian dollars that is a cannabis sector. here is how the top companies in the area are doing canopy growth shares on the big board ended the regular session in the u.s. up more than 8.5%. but the stock is down more than 23% month to date on pace to break a two-month win streak with the worst performance ever. the stock up 20% since started trading on the nyse pch tilray ending up 5% but down 32% month to date. the stock is up 468% since the july ipo and aura shares rising 11% in the regular session but the stock is down 29% on pace for its second worst month ever. it's down 21% since it went buc public on the nyse last week also a wild ride for occur a leave which went public in canada on monday np shares were initially offered at 11.ha

took a nose dive, rebounding since. the stock ended up just short of 10%. gnp securities put out a note on the company earlier saying with the multistate platform and production base, occura leave has emerge as the new industry leader among public u.s. cannabis companies melissa, back to you. >> thank you so much adidi roy in san francisco for more let's welcome the chairman of occura leave boris jordan welcome to the show. >> thank you. >> you are a vertically integrated cannabis operator in the united states that listed in canada do you everything from grow to distribute. >> that's right. we -- every state because of national federal regulations we have to both grow it, manufacture it we sell it we can't interstate. >> it's a siel o in every state mandated by federal and state laws. >> if there were federal legislation legalizing cannabis, what kind of switch would be flipped for your business?

>> i think it would be -- it depends on the legalization you have there is two legalization laws on the dock. one is the state's act the warren gardener act. that keeps the state structure in place it doesn't reschedule cannabis from schedule i but allows federal banking and markets. gets rid of the 280 e tack structure stp but a federal will you allowing the states to make a determination on cannabis. the other one is full rescheduling we are not there yet i don't believe the trump administration at this point in is prepared for full rescheduling. >> the first scenario, then for states what kind of switch would be flipped if that were to come to fruition. >> that would -- the main thing it would allow companies like ours to raise money in the u.s. and u.s. kpap markets. the biggest travesty is we are a $4 billion company to go to canada to raise money. theenings can raise money in their market and here.

you have to make a difference between the two. i was just listening to the report canada is a market of $36 million. we are a market of 320 million the volatility happening in the last few days should have happened because canadian stocks were overvalued for the market size they are in. there is no justification in my opinion for the types of valuations we have seen in the canadian stocks and it's because they have little small floats and huge amount of demand. whereas the u.s. companies are much better valued from a- earnings perspective the differences is u.s. companies are making money and u.s. companies are growing it at 100 to 300% a year. >> but shouldn't there be a discount to the valuation for a u.s. company if you don't have cannabis federally legal i mean you operate with handcuffs on versus the canadian companies which have full legalization on the recreational and medicinal use. >> you would think that. but it's the ob opposite . the problem is the canadian market, the sales points are

controlled by the government and the government wasn't ready for the launch on october 17th and so the stores all ran out of product. and the government doesn't have enough stores open to service the public whereas the united states all the companies controlled their own distribution and so that's why we have much more different revenue profile than the canadians. >> boris great to speak with you. boris jordan where are the valuation. >> this company trades significantly cheaper to the megacap. u.s. deserves a preem up, the biggest mechanic, the highest concentration and density. what's interesting about cura leaf we talk about starbucks. this is a emerging market. opening stores in multiple states right now that leadership advantage is one of the reasons thedervy see that of the reasons thedervy see that valuation (bicycle bell sound) ♪ ♪ (bicycle bell sound)

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do you know what pete is dressing up for? oh, my goodness. >> tony broks ton. >> my all-time favorite. >> not buying the pete's celgene. they are voting just to hear tony braxton. >> final trade time pete. >> xop put, huge buying the o'er da i i think we are seeing a little bit of a pullback in energy names. >> chairwoman. golar. through the roof. >> intel had a good quarter last woke maybe new ceo soon

i think it's cheap. >> dan, great costume tonight by the way. >> what are you going as. >> a bullish costume. >> tony braxton siel be the hand some brothers 15 years in the row. the best member of gang in my view. here tomorrow at 5:00 "mad money" with jim cramer starts right now ♪ my mission is simple -- to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now hey, i'm cramer! hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm trying to make you some money. my job isn't just to entertain but to educate you and teach you. call me at 1-800-743-cnbc. or tweet me @jimcramer a day where the do