forecast that stock though, i mean, it's up a lot, but it had been down almost 50%. >> broken growth stock, still very heavily shorted. >> gains for the dow and the s&p, the nasdaq was lower. that just about does it for "closing bell" today. >> yeah. "fast money" starts right now. "fast money" does start right now live from the nasdaq market site overlooking new york times's times square our traders, tim seymour, karen finerman, guy adami. apple gets solised, worst two-day losing streak in five years. this could be your chance to buy the stock. plus, energy bouncing back today. it's one of the best performing sectors in the past week the chartmaster will be around he'll tell you if it's the beginning of a major turnaround. he'll be here to explain, as i said first, though, we start with the markets rallying today, the dow soaring more than 200 points,

continuing to pear its october losses a huge week away bracing for the mid terms tomorrow and the fed gearing up for its november meeting trade headlines flying fast and furious so will the mid terms be the event that reignites the selling into the end of the year or can the market rally in the face of gathering headwinds, guy adami? >> welcome. >> thank you. >> great to have you on board? nice to be here. >> i'll try to intelligently answer your question, but i go back to 2016, and if you had told me prior to the election, then candidate trump was going to be elected president of the united states, would i have said to you, scott, the markets will go down anywhere from 12% to 5% over the next month or so and for about five hours i was right. obviously we know how that story played itself out. so i would love to be able to answer this. i'm not necessarily sure i can i would think that if the republicans can somehow hold serve, it's in short-term bullish, but the headwinds that the markets face are more than just these elections so to answer your questions i think the selling will continue.

>> all right karen, how do you see it playing out? >> let's just say the democrats winning the house seems to be priced in, right, base case, that's where we seem to be. >> right. >> i think so. i think then -- i think the market probably does a little bit bit better the market hates uncertainty there will be then one piece of information that we do know which is how the house ended up. to me the bigger issues are still the trade situation. that's the number one, and then the fed close on the heels of that, so i would like to get some clarity, i do agree with guy though, if republicans keep or keep both, i think a short-term up market. >> if everything goes to what the market seems to think will happen, what happens to the stocks >> well, let's face it in. >> republicans keep the senate and dems take the mouse. >> we go into the mid-term elections with as much of a negative momentum push in the markets than the last handful of mid-term elections we know the numbers, fourth quarter after mid terms tends to do very well, even the first

quarter, 4% into year end. i look at it as i think a plus wave, which i don't think is a high probability, and i think it's a very low probability, would be very negative for markets. markets are not priced for that. are markets priced for the house to be lost to the democrats? i'm not so sure, but the bottom line is that if markets actually do have a democratic house, that ultimately for stocks that's not a terrible thing and that means absolutely less fiscal, less pressure upward on rates, possibly an opportunity to see the fed step back a little bit, and i know, look, and we had massive numbers out today on the ism. this economy isn't even close to a recession so if you put a little just, you know, cool things down a little bit, which i think that all of that would, i think it's not bad. >> i think that's the point, right. the market, if you look at the economy, all numbers say, hey, everything is going great. now the stock market might tell you a different story, but if in terms of what's good for the stock market or what's good for the economy, it's basically a status quo you know, make sure nothing is unwound at this point in time.

i'm not exactly sure what that means though i'm not sure if the republicans win if that means that status quo remains, orful democrats happen to have this blue wave, then does that mean nothing changes? if i knew the outcome, i don't know how exactly it will trade. >> is it in doubt as to why, guy, the correction is over? are we still in doubt about that >> i think a lot of people think it's over, absolutely. i have absolute doubts when the market was down 10.5% a week ago in the s&p, i thought there was another 3% to 4% to the downside it's absolutely rallied since then, but i don't think the headwinds that took us down have abated at all. >> trade, rates, everything karen just mentioned. >> yes i do think there's another leg lower. it would make sense to me. with that said, i have thought that numerous times over the last five or six years only to be proven wrong. >> i think some of the trades that have actually been working since october, and when we say october, we're talking about a terrible stretch for the markets, but, remember, financials have actually

outperformed the market since the beginning of october so have emerging markets both by 2%, 3% triple qs have underperformed by 3.5% so has, you know, some parts of the discretionary landscape. i think a lot of that continues, and i think that pressure is the more important setup for markets. where are we on valuations where do people feel comfortable in the environment where invariably the fed will continue to move and people wonder how aggressively i think those trends stay very much. >> karen, you want to take a stab as to whether the correction is over or are we still at risk of going lower, more than what we thought? >> i think it's over the bounceback has been pretty strong i don't see -- like, the industrial bounceback. i think we could get -- if we have some, you know, the -- either party actually, could get an infrastructure bill, that would be some support for the industrials. so i'm not selling anything into this. >> no one is worried about, you know, this conditioned wreck in tech

what we've seen in tech is pretty you go hi. >> look at today that was really ugly on nasdaq, and i know there was a particular headline out there that perhaps would be looking into the internet giants, but that's just a one-day event. we've had some tremendous selloffs here, real damage done. the other thing iwould say you need to watch is the dollar. i've been harping on this for a long time, but the dollar is the new vix. em has improved because the dollar dropped down, so if the dollar can even stay sideways then i think we're okay and probably out of that correction, but you get a rip in the dollar, you've got a problem again. >> i think if the republicans hold serve, by the way, i think the dollar is the biggest risk to move. let's face it, we've got a lot of fiscal uncertainty now in terms of how we'll fund this we're continuing to actually having to fund this in a treasury market that will do twice as much refunding as last year i think the dollar where you at least keep the status quo, possibly infuse, i don't think we'll get that middle class tax cut, but if you get an infrastructure bill, i agree with brian though. i think the dollar is very

important for the markets and actually if you listen to what the multi-nationals were saying over the last round, they were the ones most at risk. >> can you declare the correction over as long as tech remains as weak as it is >> no, i don't think you can, scott. where we've had leadership in terms of earnings and performance by the s&p we all know those numbers also, talk about them all the time i don't think it has to be devastating, and i think either way, let's face it, we've been looking at industrials, think about the companies that surprised to the upside this earnings season, companies like gm that caught people by surprise didn't catch us by surprise, and i think the fundamentals in some of these names remain very good with attractive valuations, a lot of the energy in the resource space so beaten up. i think we've got good numbers out of those places in this earnings period, and i think we'll probably continue to follow that trade. >> our next guest says get ready for a year-end rally no matter what happens at the polls. let's bring in the head of u.s. equities strategy at bank of america merrill lynch. nice to see you. >> thanks. yeah, i don't know if i would say no matter what happens at the polls, but i think that, you

know, under the two scenarios that are most likely, which is, you know, a split government with democrats taking the house or republicans maintaining, i think both of those scenarios are actually pretty positive or, you know, kind of neutral to positive. >> history is on your side, right, if you think that more times than not there's been a ramp-up after mid-term elections. >> yeah, yeah, exactly so, yeah, just one of those things. >> just talked about all the forces at work. >> we've got the fed tightening and central bank balance sheets starting to drift lower after moving higher. >> trade fight. >> trade wars, so lots of items on the table you know, i think, though, what's really spooked the market is the fed and trade risk. those are the two factors that we found explain a lot of the -- of the, you know, downside that we've seen over the last few weeks. you know, so, i don't know if the mid-term election matters all that much in terms of

staving off negative sentiment. >> because as we were saying on the desk, the head winds haven't gone away. >> exactly. >> and they are likely not going to. >> the headwinds are firmly in place. the good news about trade risk it seems to be priced into the market pretty extensively, so if you look at the sectors that would be most hit by -- by tariffs, you know, either companies that import a lot from overseas or companies that export a lot, their multiple compression has been significant this year, since february when trump started talking about this you've seen these multiples like compress meanwhile, earnings have still been very solid so i think that a lot of this risk is in the market at this point. >> so, let me ask you on trade then, you think there's an asymmetric risk? if there is a deal on trade, that would be a very big positive it's not priced in at all? >> i think that that would be a really big positive, because i think a lot of the overhang and where we've seen multiples compress the most are really around the trade-oriented or trade-affected sectors, so if we

did see a resolution, i think that's a cause for a real knee damage jerk rally. >> are you saying you don't agree with that? >> no, no, i do. i do think trade has been getting -- that's what a lot of the correction was from. i think it's asymmetric. >> i think people are tossing around numbers like 10% to 15% increase in the s&p 500 in whatever period of time if you get a deal with china. >> i don't see that unachievable multiples have compressed that much i don't see why they wouldn't. if they reverted back to where they were in february, that would be 10%, 15% right there. >> as i ask the group here, do you think the correction is over or not >> i do. i would be a buyer into year end. i worry a little bit about next year, and i think that a lot of the benefits that we've enjoyed over the last nine years are going away, so, you know, cheap capital is changing. cash yields are starting to be competitive with other asset classes, so, you know, i think we're towards the end, and i

wouldn't necessarily sell into year end i mean, largely because of the seasonal biasses, but i do think next year is a year to sort of think hard about. >> so i'm curious, everybody that i'm talking to kind of agrees with you that red wave, short-term bullish, long-term bearish. usually when everybody agrees on one thing it never happens. >> it's wrong. >> so can you explain what's going on there >> i guess just simplistically, and this is pretty obvious, if we see, maintain the republican sweep, would try to jam as much growth into the pipelines over the next couple of years for re-election, and that could cause the pace of the fed to be even faster than what's anticipated, and if that's the linchpin for this market, you know, the fed usually ends the party, and that's likely what would happen this time we'd probably see more inflation, et cetera, kind of the typical late stage rally and then it's over, but, you know, i

mean, if it is different this time, maybe a fed -- maybe they could sustain that bull market a little bit longer if they sort of meter out the growth in a more rational way rather than jam it all in. >> you talk about this note how we're still above average in terms of earnings revision ratios which is positive. >> right. >> how about the tech sector, higher than the average but the earnings were always higher. >> yeah. >> is that coming in more than the rest of the market, and does that concern you >> so tech earnings still look pretty good, but sales are starting to falter that's what worries me if margins are at peak levels, especially for tech, which is like kind of all-time peaks, and they are no longer benefiting from tax arbitrage and labor arbitrage and all these other great things and then now they are starting to see a deceleration in sales, that's not a great scenario, so, i mean, i think out of all of the sectors high growth tech is the least favorite place to be right now just because it's seen a

great run. it's gotten no regulatory issues which might start to pop up here and there, and, you know, the fundamentals backdrop doesn't look as rosy as it is did, you know, a year or two ago. >> great to see you. >> great to see you. >> bank of america, merrill lynch, let's tray it, guy? >> she's encouraging there's a hint -- >> the tech wild card can, i just don't know. >> i don't know either, and i'll say this i don't know if people are convinced is the word. i think the market is just accepting the fact that a deal with the chinese will get done i'm not so sure. had a great interview with larry kudlow larry didn't seem all that enthusiastic about a deal getting done, and i would push back and say everybody thinks when president trump is ready, the chinese will come running to the table. i don't necessarily think that's the case i think they have far more leverage than we give them credit for. >> could a changein the house could affect the negotiating posture? it could soften though that's really the administration. i tend to agree when we talk about who is going to perform until the end of the year. the look at semis, another poor day for semis, names like nvidia

and others continue to underperform very difficult to see how the tide will perform at least until the end of the year. >> my biggest concern is if we do get this red wave that people start to price in a faster fed immediately. everybody thinks you're going to get this bullish move, and i'm just concerned we know from the last election that polls had just completely wrong. we can't trust those whatsoever, so you find out that all of a sudden we've got a red wave, i wouldn't be surprised to see the market sell off on increased fed concern. >> i'm still not convinced that the market can go up to the levels that some talk about without technology because it's such a huge part of the s&p 500. the flip side that have is if you do get the market, you know, if there's a more positive bias towards stocks, have you to believe that those stocks will go up if the overall market goes up, right? >> i think china gets those technology stocks back to those levels. >> i'm saying forget about the deal happening between now and the end of the year. chances of that i think are slim, right? >> even in a benign tape, i think your point is hard to see

that leveredship reasserts itself in the way that you would like to see it >> i can't imagine the market going up without it. >> well, i think you're potentially getting some leadership from banks again and have started to reassert themselves after a significant underperformance and consumer discretionary, and i still hold how the hope this holiday season will be best on record. >> should be given the numbers from the consumer numbers that we've seen. coming, a number of travel-related stocks are reporting earnings after the book, booking holdings, avis, what wall street is the saying about the reports. there are the stocks moving in the after hours. plus, energy stocks surging back after what was the worst month for the sector in seven years. should you believe in the bounce and later, it could be the most controversial fast pitch ever. >> whoa, whoa, whoa. >> guy adami stepping up to the plate to tell us the one beaten down tech stock he thinks you should buy right now exciting

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[ready forngs ] christmas? no, it's way too early to be annoyed by christmas. you just need some holiday spirit! that's it! this feud just went mobile. with xfinity xfi you get the best wifi experience at home. and with xfinity mobile, you get the best wireless coverage for your phone. ...you're about to find out! you don't even know where i live... hello! see the grinch in theaters by saying "get grinch tickets" into your xfinity x1 voice remote. a guy just dropped this off. he-he-he-he. welcome back to "fast money. travel names, book, marriott and avis all on the move after reporting earnings seema mody has the latest on what wall street had to say about those results. hi, seema. >> reporter: hey, scott. all right. let's start with booking

holdings that stock is up about 6% here in after hours mark maheney is on board and this quarter's results have results that indicate a reacceleration in bookings this year now a different story from marriott shares are dropping after hours as the hotel operators are revenue per available room is growing well below expectations due to weakness in north america, and it does come after its rival hilton a week ago reported a slowdown in the u.s. market citing higher input costs and interest rates behind the decline in deal flow ahead of marriott's report, tighter markets were announced as a headwind for marriott that stock down 5% lastly, a disappointing report from avis, budget car and that stock also down a similar amount

by 6%. scott, sending it back to you. >> appreciate it thanks very much let's trade it on the desk who wants it >> marriott, sorry >> go ahead, guy. >> traveling like a fool. >> i think marriott has had a rough years, bounced over the last couple of weeks from 100 to 120ish it's a valuation story now sabina was just talking about how, growth has been and maybe revenue growth is waning and that's exactly what we're seeing here with marriott that is come too much too fast and is valuation a concern i would say yes. look at their full-year guidance and to me the stock revis its $100 a share. >> connect the dots with hilton and avis and you start to see weakness across. booking is the outlier don't look at that as a signal of what's going on but all of the companies across the board are seeing slowing for the whole year marriott has been horrible. i think it goes lower. >> i like booking here i think at least they will see

double-digit growth on per night bookings and ebitda expansion is a big story. they make their business more profitable, and i don't see it as being a direct corollary on the economy or the consumer. >> or not. >> clearly not. >> is avis specific to the unique challenges to their business we saw expedia had a situation similar, which would be a corollary, to booking? >> got it. now i think do i. >> go ahead, karen, please the marriott, it didn't read that well. north american growth was really not particularly good, but i do still think -- >> revenues were off, too. >> revenues were a little light, but i think the consumer is out there and consumer spending -- >> crushing it. >> but does that mean, scott, and you do a show at noon, great show and i'm sure you have these conversations. >> thank you. >> the consumers' optimism

record level spending money without question but my question back would should they be spending money, or are we making the same mistakes in '18 as we made in '08 and '09? >> you can always count on the american consumer to spend money whether they should or not. >> but their wages have recovered to the best level since the crisis once you fell below 4%, that's what has brought the fed back into play, so there is another side the consumer on its own, worried about the household balance sheet and you quote the numbers which i think is relevant, i think they will continue to spend aggressively in the next three to six months. >> for more on earnings season head on over to cnbc.com, and in the meantime, here's what else is coming up on "fast. >> yup, apple shares are getting smashed, but one trader says this could be the best chance to buy the stock. plus -- ♪ up from the ground comes a bubbling crude ♪ >> oil is bouncing back and the chart master says this is the bounce you've been waiting for

he'lexaiwhhel pln y 's buying with both hands. much more "fast money" after this ker a fiduciary? were you satisfied with the attention you were getting? then i explain that being independent gives our firm the freedom to give our clients the attention they deserve. we can put a plan together that makes sense for them. independence lets us do that. charles schwab is proud to support more independent financial advisors and their clients than anyone else. visit findyourindependentadvisor.com

welcome back to "fast money. apple shares getting slammed again today posting its biggest two-day loss, the company is, in five years for more on that lets get to dom chu back at headquarters hey, dom >> reporter: well, scott, it's still the biggest company out there, but it's gotten smaller, and it's worth less than $1 trillion at this point apple had been one of the standout outperformers in the recent market turmoil holding up relatively well compared to other tech and communications services stocks, but that narrative changed pretty quickly on the heels of its earnings report last week which was generally positive, but for concerns about its current quarter forecast and its big decision to stop quarterly update on units sales figures for the iphone, the ipad and mac computers. now the negative sentiment as of late has translated into a loss

of roughly $122 billion in market value as the biggest pubically traded company out there. apple has a lot of influence over market-weighted cap indices like the s&p 500, nasdaq composite and, of course, the large-cap nasdaq 100 that means if you're invested in mutual funds or exchange-traded funds tied to those indices, you might have a ton of exposure for example, the spdr s&p, ticker spy, and in line there's a 12% weighting of the invesco qqq. in the past apple dips have been ones worth buying as evidenced by its march to be the biggest pubically traded company out there, but will a perception of slowing smartphone sales, perhaps less transparency around financial reporting cloud things this time around, scott, and that's going to be a big part of the story? back over to you. >> dom, thanks very much let's trade it what in the world is going on with this name

it gets below 200 bucks. >> yeah. >> golden opportunity, is it or not? >> for a trade maybe, but the problem is you don't have any visibility into it anymore that's going to keep a certain type of investors out of it. i still think you're kind of making the same bet in that do you believe that apple is going to be able to outperform and outexecute anybody else? but, again, maybe it's slowing maybe these another part of it, and the entire economy is slowing. i'm as concerned as you about the idea that tech is underperforming. i just think it's going to be very difficult to have the leader of the market underperform and still have a good stock. >> of all the companies, i mean, they didn't drop a doughnut. their numbers were pretty good the growth remains intact, so back to of all the companies that actually disappointed in some way apple's disappointment to me is company-related. not secular. i know they talked about a weaker emerging market and it's really about the guidance. it's about a corporate governance, if you ask me, for a

company as impeccable as they came, so i think this is an -- >> what's the corporate guidance >> corporate governance is a transparency issue i'm not saying there's rampant issues this is a company given a premium, premium multiple and, again, relative to itself, their ability to communicate and their ability to understand their business and their ability to essentially give investors confidence that has been shaken, and i think, scott, to your question, i think people that want to own apple here will be paid off, but i don't think in the short run that is overcome quickly. >> golden opportunity or not, karen? >> golden apple, i got it. i'm long it. it hasn't felt so golden recently however, you know, the -- the valuation is not crazy at all. i really continue to believe in the evolution from the hardware company to a mix of more hardware and software services rather with that higher multiple that would go along with it. i don't think it's a corporate governance issue i think it was really telegraphed terribly, terribly

they did a terrible job. >> the company doesn't want to tell you about the most important part of their business do you think that that's not something that they should be given a ding for in terms of transparency and insight. >> what we've seen other companies change the metrix that we get the street and it takes some time and analysts getting used to it they should have announce it had somewhere down the road when they do this i think they did it in the middle of the call instead of front and center, right? part of the issue is -- that was disappointing. ultimate lit numbers will be where the numbers will be and this will be in the rear view mirror in six months. >> beyond the way they announced it, the fact that they announce it had at all leads people to wonder whether things are bad, right? >> yeah. >> they wouldn't do this if everything was great. >> that's what i say if the numbers are good, then we'll feel all right, that's why they announced it. people are panicked now because it doesn't feel great. we'll see in six months whether it's okay. >> guy, you think this could be the perfect time to buy apple?

>> well, i do. >> why don't you head on over to the plasma and give us your fast call. >> "the power pitch," are you familiar with that >> called a fast pitch. >> apparently you're not as familiar as i am, the smart board and pitches a stock. why not. been away for a few days and apple sold off, and why don't we pitch a. why buy apple, you ask i'm glad you asked, and, you know, we just talked about this. it's like dom saw my notes and tim said it as well. number one, slowing growth doesn't mean no growth yes, growth slowed, but you still have a significant growth there. it's not like it went away entirely number two, washls and health care pipeline. i will tell you, i think the on side and amouthe optionality, i

think that changes their multiple, and we've seen this movie before let's just shown you a chart and i'll show you what we're talking about. why have we seen it before look over the last years you've seen downdrafts in the stock of this magnitude a number of times, and each time the stock has recovered. why? it's always different? it always feels bad, but they always figure it out yes, to karen's point, i think their communication, i'm no longer giving numbers was terrible, but the market will look past, that and maybe in their mind they are saying we want to get away from the hardware multiple and we want to get into a services multiple, and this is how we do it by ripping the band-aid off >> guy, i have a question for you. let's talk about services revenue. were you disappointed by 17% that seemed to be where the momentum and the stock really was going and maybe we're getting ahead of ourselves. >> yeah. clearly the market wants to see that number closer to 20%, 21

red sox, i g21%, i get that, clearly it's slowed but the trajectory is still correct. i understand why people are taking a pause here. i understand why the stock sold off. quite frankly a few months ago, you know, we did the calculus and said with a market multiple given their earnings next year, apple's worth $241 a share i think it got up to 234 we saw the broader market selloff is 185 and here we are at 200 this is not an exact signs again, i think the market has provide you, and i hate using the word, i rarely do, with an opportunity to buy the stock yet again. >> thank you for the pitch we'll find out if we're buying it now tim? >> yeah, we are buying it. i think this is a great call i think it's an oversold moment and i like the fundamentals. >> who is that in the picture? >> guy adami. >> of course. >> zoom in. >> wearing a purple shirt. that's not terrible. not my best but not terrible. >> looks like count dracula.

>> if the shoe fits. >> yes, i agree. i have apple as a buy, a little rocky, i admit, but down the road it will continue to see growth. >> p.k.? >> yeah, i'm going to say buy it more of a trade for me this market is more of a tactical market. >> where are you going to get out then, mr. trader, buy it here and what are you going to do it. >> get out at 220, 10% higher. how does that sound? >> a trade it or fade it kind of thing. i see what you're doing. >> trade it until i fade it. >> we use trade it as a term that means buy it. >> i'm just trying to play by the rules of the game, right >> that's confusing. >> that's what i do. trade, it don't fade it. >> says everything about where apple is sentiment-wise, want to do a fast pitch on all stocks out there. ever done a fast pitch thon name before >> is that directed at me? >> yeah. i'm looking right at you. >> pete najarian has pitched this name a number of times, correctly, i might add, and i'm sure karen or b.k. at some point

has as well. this is my mayden fast pitch voyage in terms of apple. >> okay. all right. come on back over. buys all around, are you but buying guy's pitch for apple vote in our twitter poll @cnbcfastmoney and energy stocks catching a byrd and one top technician says the rally is just getting started what names to buy when "fast money" returns my name is chris hughes

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we work hard to protect the environment. getting the job done safely, so we can keep the lights on for everybody. because i live here i have a deeper connection to the community. and i want to see the community grow and thrive. every year we work with cities and schools to plant trees in our communities. so the environment is there for my kids and future generations. together, we're building a better california. welcome back to "fast money. energy stocks catching fire this

past week after the sector had its worst month in seven years in october bob pisani down at the new york stock exchange to break down those moves for us bob? >> has energy bottomed you know, it's been an ugly month for the energy complex after passing $15, the bottom fell out of the oil market on oversupply concerns and weak economic data in china there's more there's the sanctions on iranian oil. they kicked in on sunday the markets have known about this for month and when the markets realized all 4 million barrels would be out at once oil rallied but it fell into the close dropping to its lowest level since april. the only good news is that big oil stocks like chevron and totale, bp and occidental all held on to 2% to 3% gains, due to a big natural gas rally of 8% on reports that november could be a colder month than

anticipated. chesapeake, eqt, southwestern, cabot oil up 10% cabot oil is the only energy stock up in the past month like apache, hess among others are down 2%. >> our next guest says there's more steam left in this energy rally. carter worth is here i want to look at the past one month of trading, how aggressive it was and play for a bounce, a simple trade a fast money item that should be quite right. crude oil, one-month performance versus nat gas, up 12. gold, copper, down 15 and from peak to trough it's 18%. 76.70 a barrel down to 62.70 a barrel so with that etup, what has

happened every instance going back as far as data is available? when crude has dropped 15% or more in a one-month period, 20 sessions, what has happened is the following. on average it's up one week later 1.4%, three weeks later 2% and five weeks later 3%, so you can call it oversold or so bad it's good. it's dropped $14 a barrel almost straight down, and today there's a little bit of stabilization. i'm betting it's the beginning of something, and i would play it accordingly here's a chart of crude oil. over the last two years, new lines and annotations by me. trend lines, very clear. we've bounced off this line once and again and sit okayin here today, and that's exactly where it came to life. so i'm betting that you're going to get this kind of circumstance yet again, a fairly straightforward setup. the okay also there's this now this is the same chart of crude over the past two and a

half years this. current rsi reading is one of the lost on record over the past two years, and every single time when it's been down here, crude has bounced, and that's the bet that we're going to make again, that you're going to get some sort of bounce off of this low that's the setup let's look at two stocks, conoco phillips and hess, identical railroad tracks, conoco is down 20%, beta in the relative market and crude down 15. hess down almost 25. i'm going make the bet that they are oversold, so bad they are good, that one can trade them on the long side. buy. >> all right come on back over. come on this way. >> just before he -- we usually like to vote upon it. >> i made a decision. >> executive decision. he's coming over. >> that's what melissa does, too. he can do whatever he wants and

he did >> you believe in what mr. worth -- do you believe in his worth? >> carter sits on the top of the hierarchy, so, yes. >> is there a bounce coming? >> i think the selloff is completely overdone. the selloff in the levered names is ridiculous. a name like anadarko petroleum which in october was a $70 item is trading now at $54. that's a huge movement in a short amount of time if you get a commensurate bounce you'll see the levered names do even better. >> can i ask you a question. >> i hope so. >> relative and right near the bottom of the relative chart which is interesting if it were to get back to the top of the relative channel. >> sure. >> what kind of appreciation would that be for either oil or phillips since they are all correlated >> let's start with the stats. when crude has drawn down this much on a very quick 20-session period you typically get a bounce, somewhere between 1% and 3%, on average average is ones that didn't work and ones that are quite a bit more

you can get crude back to $68 a barrel we're 76.70 to 62.70, 66, 67, and a bounce in equities, of course, would be quite a bit more than that does it have to be hess or conoco no, you can play it, guy mentioned others names, but the principle is even if you think crude is going back to $26 a barrel where it was in the lows of 2016, the path lower, even if you believe, that passes through a higher price presumptively. >> so when i look at the triple qs, the breakdown technically of those back to levels we hadn't seen since 2016, i mean, with brent something similar is happening. haven't traded below the 200-day since july of 17 and that's more impressive when you consider the volatility of oil. does that mean we're setting up for an environment where maybe we get that bounce, but that tra victory is gone for the near future >> both for equities and. >> i mean for energy i mean for brent and spot oil prices >> that's the better bet

ultimately, look, crude had a big move offer its three-year low and got a little ahead whether it's wti or brent, and this giveback is presumptively not just a pause, but it's the beginning of something more severe, but issue is for just trying to make money, right, is this a trade that one would be short or long year after this selloff? and i'm thinking that i would rather be long than short. >> carter, thank you. >> thanks, guys. >> carter worth. tune into "mad money" for more on the money space jim is doing a deep dive into the recent oil slick don't miss that at the top of the hour. still ahead, the countdown to the mid terms is officially on me fould be a make-or-break montor marijuana all of those details and more when "fast money" returns. welcome to the place where people go to learn about their medicare options...

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welcome back to "fast money. tomorrow's mid-term elections could mark a milestone moment for marijuana. aditi roy is in san francisco with more on that story. aditi? >> reporter: hi, scott, the cannabis industry is very closely monitoring the mid terms for key ballot initiatives and also state and congressional races which could help push forward some more progressive marijuana laws let's start with the ballot initiatives. voters in michigan and north dakota are considering legalizing recreational marijuana. while utah and missouri are mulling medical marijuana legalization if all four pass, the new markets could bring in an additional $780 million by 2022. that's according to forecasts by rf view market research in partnership with bds analytics

michigan is one of the states that a lot of insiders are watching most closely because if passes the measure would make the state the first in the midwest to legalize recreational marijuana which could have a ripple effect. utah, another critical state it's so heavily red, passage of the medical marijuana measure could send a strong message to washington in illinois, the democratic candidate wants to legalize recreational marijuana there, and a lot of u.s. companies that i talked to are closely watching congressional rations because there are several marijuana bills locked up in the pipeline. the most notable one is the state's act which would leave legalization up to states. the ceo of cure leaf which went public in canada told me the private ones are the ones he's monitoring most closely. the recent gallup poll shows two out of three americans now support legalizing marijuana another issue weighing very

heavily for the pro federal legalization side there's 51 cannabis companies on the canadian exchange making up $1.5 trillion in market cap scott, back to you. >> aditi, thanks very much before we get the trade, we should note that tim seymour is all over the cannabis craze, long a number of names and sits on the advisory board, in fact, for three pot stocks for a list of those disclosures head to fast.cnbc.com. with that said you have trades here. >> aditi did a great job framing the mid-term elections i think pete sessions who has a congressional fight in the 32nd sdis sd district of texas. blocked 35 bills hitting the floor. he loses, cannabis wins and it looks like he could lose bottom line, the states very important. think about the companies like cure leaf or med men or, you know, companies that are out there that are trading that actually have a first move or advantage in states where either you're going to see a change or,

you know, talk about these tubetorial races, new york, cuomo on board for full legalization so the companies that have that, you know, footprint in the formch licenses and dispensaries have a first mover advantage, but either way i think the state's act is very important. no matter what happens on tuesday, tomorrow, we're ahead of the game. >> coming up, the nfl getting in on the fortnite frenzy bringing its football uniforms to the popular video game when it means for the growing world of e-sports. we're live at the nasdaq and times square, and there's lots more fast still ahead. ge which y cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again?

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a guy just dropped this off. he-he-he-he. welcome back to "fast money. even the nfl now is getting in on the fortnite frenzy they are announcing a partnership earlier today with the game's publisher epic. for more on how the nfl is getting its game on, let's head to julia boorstin out in los angeles. julia? >> reporter: that's right, the nfl is getting in on the fortnite phenomenon. they willbe able to purchase nfl outfits or skins from the item shop. players can choose a uniform from any of the 32 teams and can customize the number on the jerseys. the first time that the private company epic games that is partnered for skins or outfits for players. epic games saying they know so many of fortnite fans that they also love football that this was, quote, too cool an

opportunity to pass up no price on the skins which typically cost $12 to $15 and are played with what's called v-bucks inside the game. the battle royale mode allows 100 people to play at once and became a massive phenomenon earning epic games over $100 billion as of last month now the nfl already has as huge presence in video games with its madden nfl partnership with ea sports, and on the heels of the nfl showing some massive ratings on sunday, it's worth noting that just yesterday numbers were up across the networks nbc's "sunday night football" between the patriots and packers was the highest rated game since it launched in 2006. scott. over to you. >> julia, let's trade t.guy adammy >> take two is the way to play that report. i think the report this week, and it's -- well, it's outperform while the other names have not performed that's i think telling you something into earnings. valuation is clearly a concern, but when you look at this stock

trading 125 getting to move its head as opposed to electronic arts which has been taken out to the wood shed so for me it's ttwo. >> look at blizzard who does report on tuesday, call of duty is one of the names people are watching to see the numbers. their move to mobile very important. these guys went from mega growth to actually barely growing at all, and that's not the way to go at a time when competition is getting very, very steep i still like this name don't own it but you can start to pick over it. i don't think you need to buy it into earnings. >> interesting the announcement julia was talking about, yet another thing that's going to get kids to play fortnite and maybe not some of the marquee brand names they have been accustomed to the past 20 years. >> the concept of your digital twin where you're able to buy a wardrobe for lack of a better word for your online avatar. this is a huge step forward that i don't think people see how you can monetize it. disney is the way to play it.

>> would you trar the bede the t in for a chicago bears skin? >> i'm a patriots fan so tom terrific, i'd wear that shirt. >> gearing up for earnings this week and dan nathan has a preview from l.a. to give us a preview. >> reporter: activism blizzard reports thursday after the close as tim just said it has a pretty massive prove about 8% after the stock got trailed 7% on negative fan reaction to the diablo mortal mobile game. again, the stock doesn't move so much usually on earnings, usually 3%, but call volume ran really hot a few days before earnings when the stock was down three times that of puts and one interesting trade that caught my eye. i don't usually like to see unusual activity as a predictor if anything is going to happen but in this instance it appears that a trader rolled down some calls and specifically targeting earnings they were already long in

november next week's 70 calls they sold those to close and bought 7,500 of the 65.5 calls to open to about $2.50 so that's likely a trader who has been long this thing on the ride down and long calls and he's kind of increasing their probability of success by tightening up the expiration to this friday and a little bit closer to the money. >> all right good stuff danny, thank you. >> dan nathan out in l.a for more "options action" check out the full show, friday 5:30 p.m. eastern up next, we'll give you final trades (indistinguishable muttering) that was awful. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills.

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welcome back you know what song guy adami listens to on repeat on his iphone. >> what, scott >> wow. >> "the time of my life. >> come on jennifer warren. ♪ time of my life >> nice. >> that's incredible nice work, guy you never win. >> i'm shocked. >> i'm ed shocked that the twitsetwit twitsers -- twitters fear gave that to guy. final trade? >> i would be nibbling halliburton here, hal. >> karen finerman? >> ups oversold. >> b.k.ers. >> lockheed martin, sell that

up, lmt. >> it's interesting, scott. >> how interesting, guy? >> doesn't matter how you won. interception. >> i mean, come on. >> doesn't matter why. >> not on "dancing with the stars." >> anadark 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 save 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. this market had some real year 2000 cross currents going today. dow