significant outperforming a competitor the rest of the world today. we'll see what happens overnight. >> see if there is a follow through or if this is a one-day respite. >> we are out of time on "closing bell. s&p 500 up 0.85% led high by energy "fast money" picks up right now. live from the nasdaq market site overlooking new york city's times square, this is "fast money. tonight on "fast" the man who moves market says break out your rally cap. he's updating his year end price for stocks what he says at this time to go risk on. plus, towering higher. energy names breaking out today. we'll tell you what added new fuel to this fire. later starbucks gets roasted. the big headline out of china that sent this stock falling about 3.5% today we start off with a september standoff we are halfway through the month and the chart master says there

is a big showdown happening in the markets right now. we have these three charts for us tonight firstoff, the s&p 500 despite today's gains, the index neither breaking below or holding above its trend line next up, the 10-year yield it is holding in a tight range again, neither breaking down or breaking out from current levels and finally there is gold. the chart master calling this one an epic standoff it's neither coming to life nor selling off definitively as we head into the second half of september, does this high stakes standoff continue or do we finally get some quick draw market action. guy, what do you say >> do you remember 1993, mel work with me on this one >> sure i do yes. >> there was a great movie, "tombstone." val kilmur and sam elliott. there was a standoff they were surrounding each

other. who was the first to shoot it ended up being val kilmur he won that standoff who wins this standoff >> i have no idea. >> i think rates go higher from here i think the 10-year is headed back to 1.75 and i think the s&p 500 could absolutely test the 200-day moving average which right now comes around 4100. carter is 100% right the sideways action is killing everybody. they're on the verge of something happening and that val kilmur will manifest itself into three things i just said. >> so the markets break lower. tim, what's your view? >> i like val as iceman. that's a different topic altogether semis are at all-time highs. the s&p that i believe today bounced off that 50-day moving average for the ninth or tenth time this year every time we get there. i don't see sideways action.

i realize every time we go through one of these periods and on both the jewish holidays and coming back to school and markets that are always used to anxiety around september we've been waiting for volume. largely the price action for me is in line we know it's been painful for cyclicals. guy brought up fed ex. it challenged the 200 day for the first time since february of 2020 that's where i think the anxiety is if you're a gold and precious metals investor, there's a lot coming your way. gold has been frustrating. if you look at pgms, platinum, palladium, they have been under pressure i see a world where the economy is getting going we' had a lot of bad news. i don't see sideways semiconductors have led the market for as long as i can remember and they're at all-time highs. >> if you're viewing the economy that will influence where you see rates and where you see markets. guy said rates go higher but markets go lower

karen, that's not necessarily the case if rates are going higher for a good reason, i.e.,, the economy is actually picking up, holding momentum, et cetera, then that's a great thing for the markets? >> i think so. i think that is where we're headed, actually to me the most important factor is what's happening with the delta variant because that has really seemed to weigh on, you know, gdp lower. lowered estimates recently so if we are turning the corner on the delta variant and there is not another variant behind that, then i do think the economy will pick up again we saw that very interesting empire manufacturing report which is one i don't really pay much attention to but it was wildly better and then we had some not inflationary numbers. so if we were to see pick up the economy without any additional inflation, that would be good

for sectors. >> you're an amateur chart guy what do you see on the charts? >> to break down, ask guy why he remembers "tombstone in 1993 and i'll tell you. he was taken out for his 50th birthday thanks, guy, for remembering that so on top of that, i agree with guy that if rates move higher, market moves lower i agree with tim because i don't see anything breaking down in the s&p. the s&p was in danger of breaking down in may or so we didn't see that it was under a lot of pressure there in the charts. the chart looks like a stairway. yes, it's running out of momentum it is not over bought. rsi is 52. no danger of having an overbought blow up, but seasonality is october, rough for the markets. it's a buyer's strike right now,

melissa. no one wants to buy the s&p. everyone wants to wait and see how perception is reality. if september and october have a historic level of being a little bit rocky for the market, people are pulling their chips back, so to speak. >> yeah. i mean, i think the muscle memory for all of us here tonight is that september and october are usually terrible months cramer was saying september 17th is typically the marking point for very, very volatile times in the market guy, do you think that's a big driver in terms of these standoff charts that carter has highlighted? >> yeah. it's clear people especially at my age which would make me about 79 if my math is right remember the falls over the last few decades without question people are apprehensive. maybe that's why we've been sort of going sideways. there are a lot of things to like and a lot of things to be leary of that's why you've seen the price

action we haven't seen the 200 day moving average in the s&p 500 probably in the last 11 or 12 months if not longer reversion to the mean has to take place that comes in each day that gets increased by 5 s&p handles that steve can speak to 4100 for right now for a lot of reasons that makes sense. i'm not calling for a crash. that would be the healthiest thing you could possibly have before the end of this year. >> our next guest says the bulls will win this september standoff jpmorgan's chief market analyst said they will up it >> thank you, melissa. >> you think it's the reopening trade, energy, all of these things that will power the s&p higher what is the back drop to this bullish view >> so the backs of these basically declining coronavirus globally so if you look at almost 30 cases started declining

globally that's already for two weeks they are declining we are seeing mobility picking up in the u.s. a little bit slower but declining about the last 7 to 10 days we now have around 35 out of 50 states cases are declining so basically declining coronavirus which we thought was the main driver, covid delta was the main driver of slowdown that we saw in july and august. so it basically hit, you know, hit the consumer, hit the travel sentiment and had a big expectation out of cyclicals and defenses we think now it's going to go in reverse and basically it's going to provide support for the market >> so, marko, you have a price target for the s&p 500 i believe at 4700. >> that's correct. >> if you see that rotation into cyclicals, how do you see the market playing out can the market move higher if cyclicals take over leadership >> so that's a good question

that's where we do the debate a lot. we think ultimately, yes basically we see this as a very early stage of economic recovery if you look at the consumer, consumer is pretty healthy if you look at the inventory cycle, if you look at the cap excycle, if you look at the reopening economy, we have half come to office, little international travel, little business travel, a lot of these things we think are going to kick into higher gear with decline of covid we're taking that environment so everything can go higher that said, we think cyclicals will lead and growth and tech and higher segments will feel a little bit of a headwind now that headwind is going to be function over yield. how far yields go. we think yields go higher and market goes higher but we think it's going to be led by cheaper cyclical value segments and sort of growth segments have to reach higher if our target is market yields higher then we also think that

tech also goes higher but much less much less. some of the parts of the growth segment, hyper growth may go down overall we think market can reach higher 4700 is not very far out of here we are basically 4500. we're looking here 5, 6% not calling some crazy bull market everything can go up led by cyclical so that will be financials, material, energy, industrials, consumer plays, stuff like that. >> marko, it's tim part of your work that's been so effective has been equity positioning from institutions and where they are seems to me equities are certainly well positioned in equities not terribly well positioned in terms of their down side protection in the market does that concern you? and, again, in terms of rotation, you seem to be pretty excited about emerging and global markets maybe more so than u.s. >> that's correct. let me first want to position

you. on positioning we want to position between discretionary and systematic funds so systematic funds are about 70, 75% historical they are above average we see actually discretionary manager about average. so a lot of people having this view kind of world corrections, put chips off of the table they're doing that they are doing that by buying options. some of them actually scaled a little bit back. some of them are more playing market neutral so we actually don't think that positioning on a discretionary side is high it's about average systematic is a little bit higher so -- but, you know, that doesn't mean it has to go lower unless we have some very negative capitalist. on international versus domestic, emerging versus developed. basically our view in covid recovery projects on to sectors and styles values, cyclicals grow, defensive. when you project these on different international markets, you know, ems, emerging markets

are more heavy in value, more heavy in cyclicals japan and europe are more heavily weighted in these segments we expect more up side in these as compared to s&p which is pretty heavy on the nasdaq and fangs and the growth types fangs we think will do okay but not as great as cyclicals. >> marko, the backdrop is declining covid, the declining delta. the different kinds of vaccines used in terms of efficacy. the flairup we're seeing in southern china having a ripple impact on the rest of the world or that region in the united states pretty high vaccination rates. pretty high natural immunity

weaker july and august. mobility in china. we saw some of this. already played out a little bit but certainly that will be the negative development if there will be a big outbreak in china. i would put it in one of the risk to our thesis but it's not the main case. >> what does that connection look like? >> so it's not a formal year end. we said it's going to be reached and probably be on 5,000 very little visibility right now when exactly when. if the things go very well with the closing and reopening, i think 5,000 can be early in the next year. if we do have hiccups, whether

it's early to fed, whether it's earlier to some new variant or something out of left field, it probably might be a little bit more towards the end of next year but we did put 5,000 today for the next year. a little bit when on next year. >> marko, great to speak to you always thank you. >> thank you so much >> jpmorgan. guy adami, what's your take? >> i happen to agree cyclicals, financials, resources, right i'm with him on that i think it's going to happen because rates are going to go higher, but if rates go meaningfully higher i think we're going to lose a lot of these high growth, high valuation names. i don't think the cyclicals, resources and energy can hold up the s&p 500. so i'm with him right up until the s&p 500 4700 call. i agree with him on those sectors. i don't necessarily agree with him on the s&p. >> karen, in your portfolio are you worried about any names getting swept up in a rotation if favor falls on cyclicals and

growth names -- pro growth, not growth names. >> right. >> what happens with some of the stocks in your portfolio >> well, i'm praying for a rotation, actually, to some of them like, for example, a fedex which has traded poorly. the banks have traded nicely but well off -- not well, somewhat off of their highs so i think they will continue to do better in that rotation environment you know, we talked about the market we think of it as this monolith. there can be places to make money where other places are definitely not the way to make money. that's probably not going to be the place. in your portfolio, many of you like tim for instance. not necessarily. it's a high valuation names.

it's in these baskets. when caught in a rotation are you worried that gets thrown out with the rest of them. >> i think alphabet can be more defensive. i actually think that amazon may be breaking out. mark mahaney put a $3700 target on it. i think there's room for those names. i do believe that the cyclical reflation type names that we're talking about, calling them value names at times look interesting. for example, i think the auto market, you know my views in autos. even e.u. autos, if you look at the charts and the cyclicality and how they're opening up, where you're getting earnings revisions to the up side, there are a lot of sectors like that we know where the passive money floegs

difficult period and we're relatively constructive on the reopening here how this plays out in terms of the numbers in the stock market. towards some of this cyclical. coming up, no luck for casino stocks. the group under pressure as regulatory stocks flair out of china. we've got the details next speaking of china, we'll tell you what happened there that sent starbucks tumbling today. we've got at athnd much more when "fast money" returns. hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help with that. okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, like asap!

so basically i can pick the right plan for each employee... yeah i should've just led with that... with at&t business, you can pick the best plan for each employee and get the best deals on every smartphone. age before beauty? why not both? visibly diminish wrinkled skin in... crepe corrector lotion... only from gold bond.

and there you have it— -woah. wireless on the most reliable network nationwide. wow! -big deal! ...we get unlimited for just $30 bucks. sweet, but mine has 5g included. relax people, my wireless is crushing it. that's because you all have xfinity mobile with your internet.

it's wireless so good, it keeps one upping itself. switch to xfinity mobile and save hundreds on your wireless bill. plus, save up to $400 when you purchase a new samsung phone or upgrade your existing phone. learn more at your local xfinity store today. welcome back to "fast money. china continues to tighten its grip on the gambling sector. >> it's all bark and no bite i mean, there were suggestions about increased government oversight of casinos another crackdown on the vip junket business. more scrutiny but the reaction was stark. you saw it there melko and wynn replying.

mgm doesn't rely on macao revenues as the left i got a bunch of very polite no thank you. while investors may be spooked at the idea of increased government oversight there, these concessions are in reality government partnerships. they are not licenses. any increased scrutiny on the vice president junkets may not have the impact it did they're becoming the profit driver there even prepandemic. a mandate for casinos to invest in non-gaming areas. that's not problematic they've voluntarily invested in big infrastructure education and other projects and they have been paying employees through the pandemic so some of these things are to be expected. some of it we just have to wait to get the details in the meantime, i just got a note from morningstar. it looks like they're going to

lower their estimates on wynn and las vegas sands because of the volatility and pressure. >> is there any thought, contessa, that it is a possibility that the concessions end for certain players? >> no. i mean, that -- >> okay. >> the reality of this is they have invested so much money, and i've talked to the ceos over the years. they never wanted to come out and say that publicly, but internally i think they do everything they can to make the regulators happy, to make the government happy so that it's not an issue but jim murr and the former ceo and chairman of mgm in macao have done the western investment it came in crackdown on the western casinos and took away their concessions. >> thank you, con staes brewer

you may believe it's off the table, tim, but because of what we've seen out of china, is it off the table? i mean, really >> well, if you think about some of the strategic risks and some of the places where casinos could fit in relative to the other things we've seen around, anti-monopoly or cyber, you don't have the same exposexposue around the past we've seen capital flows and regulatory tightening especially when we're having big currency outflows, we've seen the regulators be noisy around macao this isn't new i want to believe and i put a position on today via options in las vegas sands. i look at their business their singapore business in marina bay sands is very strong. it's not really tied to china regulatory it's all tied to regional mobility and travel mobility remember, we started to see travel tighten up in july just when things were actually

looking pretty strong there and the prices in these stocks reflect that i think investors who are looking at longer term have a horizon here where these companies are coming back and that actually a handful of these companies are well positioned not just in asia but las vegas sands they're well positioned in digital. that was part of my point last night. i think it's interesting. >> mgm china was down 26%. that is a rerating in a single day practically, grasso. >> right but when you look at mgm year to date, it's up 28%. wynn is down 23 perf%. las vegas down 36% mgm has the reverse revenue leverage that we see the other names have to tim's point though, in a normalized revenue environment, singapore is an area that lvs has that no one else has and that is a $1.3 billion revenue

generator in a normalized world. so one day you're going to be right and to tim's point, he's playing it through options this is the area where las vegas a month ago jumped 25% basically overnight. is it going to happen again? i think it will, but the problem is it's been on a declining trend line for the last couple of months and it's almost uninvestable if tim's investing through options, that's a hell of a lot safer than owning the equity the equity and you're hoping for pops overnight where you're headed, it becomes a trade with your heart. china relations are not getting

any better this is an area where i'm going to watch the game play out >> karen, what's your take >> i'm long mgm, which has been somewhat caught up in this not nearly as bad as the others. gaming in china. i don't know how small that chance is or isn't, it's not zero nothing is 0%. so i just wouldn't be comfortable owning it. i'll stick with mgm. i also wonder, could it possibly be the beneficiary who want to make a gaming play, who want to make it in a u.s.-based company, return to gaming, the recovery, reopening and all of that. could mgm now be the way to play it without getting a different bet and a much bigger bet and a

much more asymmetric bet of china. i don't know i'm hanging on to mg mmpt. >> we have a lot more ahead on "fast money. here's what's coming up next. shares of starbucks filling over figuring out to investors. the trades are city sipping on the coffee trade next. plus, x marks the spot u.s. steel shining bright. so is now the time to get in we've gotht at and a lot more when "fast money" returns. ♪♪ in boxing or any other business, one day, you're gonna take a hit you didn't see coming. do you stay down? or do you get up? [announcer] and this fight is a long way from over,

leonard is coming back. ♪♪ ♪♪ what happens when we welcome change? we can transform our workforce overnight out of convenience, or necessity. we can explore uncharted waters, and not only make new discoveries, but get there faster, with better outcomes. with app, cloud and anywhere workspace solutions, vmware helps companies navigate change-- meeting them where they are, and getting them where they want to be. faster. vmware. welcome change. [slow electronic notes fade in] [fast upbeat music begins] [music stops]

and release. [deep exhale] [fast upbeat music resumes] [music stops] welcome back to "fast money. starbucks shares taking a spill today on some big concerns brewing in china let's get to kate rogers with details. kate. >> reporter: hey, melissa.

starbucks looks to be following in sympathy with yum china they warned that their adjusted profit would take a 50 to 60% hit in q3 as the delta variant impacted its stores and sharply reduced its sales. at the peak in august more than 500 of yum china's restaurants in 17 provinces were closed or offered only take away and delivery this led to same store sales declines by the mid teens year over year and 20% on a two-year basis. the recovery there will take time it also said it was being pressured by higher commodity prices, wage inflation and an increase in promotions the news seems to be weighing on starbucks falling about 3.5% also set to have the worst day in eight months. china is starbucks second home market with more than 51 home stores there last quarter same store sales for starbucks grew by 19%. the company has guided for comps in the upcoming fourth quarter to be flat it upgraded the guidance of 18

to 20%, down from 27 to 32% last quarter. though ceo kevin johnson did reiterate confidence in the long-term plan -- in starbucks earnings last quarter. melissa, back over to you. >> kate, thank you kate rogers. tim, should we be concerned about this >> no. kate checked every box i would have brought up, which is that, first of all, they've already guided down on china she pointed where the fiscal q3 wasn't that great. long-term china strategy very much intact. this is a north america story. this is 72% of the stop line this is a growing asp or, you know, ultimately their margins and their loyalty program and the multiple the company is trading at is a function that they're pushing higher prices on to their consumer. i don't love this news but i'm not worried on china's news and how it's impuded on starbucks especially when the company has already guided you that it wasn't a great quarter last

quarter and that this was going to be potentially a headwind. >> when was their guidance do you remember roughly when it was, if it was the end of august or the beginning -- i don't remember >> july 28th i think it was july 28th. >> okay. the question is we did see the peak of delta in china when they guided peak of delta in china i believe was mid august or so roughly >> yeah. >> guy , what's your take. >> i'm sorry to jump in. i happen to be looking at it that's why i thought i knew the answer it's a u.s. story. u.s. comps up 84% last year. that totally blew away the street people will point to valuation you can understand the headline of 31 times next year's numbers are expensive. you're still talking mid teens eps growth i think china's factored in. you're looking at an entry point and they probably don't report until early november. >> grasso, how about you >> yeah. when i looked at the chart, it's

definitely rounded off this is not uncommon for starbucks to give up a healthy amount in percentage points and test that 50 or 100 day and right now we're at the 100 day so to guy's point, i would be a buyer when this levels off above 115. it's 115.37 is the 100-day moving average this is an america story it's less than 27% everywhere else in the world. i think they check a lot of boxes. in a covid environment they're successful noncovid environment they're more successful. i would be a buyer. >> this shows how jittery investors are. things may be looking better in the united states when it comes to delta but it's not necessarily the case elsewhere, karen. is that your take? even if you're not an investor in starbucks, you take a look at the yum news, 50 to 60% guide

down on their earnings for the third quarter, that's rough stuff. >> it is rough stuff i mean, they're able to do that, to just really literally shut down cities of, you know, 4, 5 million people, but i think that investors will really look through that i think it doesn't matter what starbucks reports for this next -- this current quarter that we're in about china. i think the market is saying, all right, we know it's going to be a really difficult quarter. i think it's going to be more important, what is the commentary are things opening up? are they starting to get back to normal more important is the north american part of the story it is not cheap. it deserves to be a premium but it's probably a little bit of an extra premium and i'm long this isn't enough of a pull back for me to add stock yet. >> okay. coming up, x marks the spot. shares of u.s. steel climbing in today's session. we're breaking down that trade later, powering up oil prices jumping sending major 'locks rallying.

wel break down the action when "fast money" returns

welcome back to "fast money. take a look at u.s. steel breaking out today shares of the company surging just shy of 5%

today's rally adding to a 53% gain for the year. where do we go from here, guy? >> i think higher, and it's still off -- i think we traded almost $30 deutsche bank upgraded the stock. listen, tim has waxed poetic on this i'll chime in. company is operating better than it's ever been the environment is better than it's ever been before the trump tariffs back in march of 2018, the stock was headed to the $50 level. right or wrong, that's just the facts. we've sawed off significantly. i don't know if we get to that 50 it's easy to see 35 to 40. alcoa's a name we mentioned quite a bit. they got an upgrade. that stock is off to the races challenging the levels we saw early spring 2018. >> higher prices because of those trump era tariffs or just demand for manufactured goods, one stat stood out to me in the journal that i read, this

midwest steel index. $1940 a ton at the beginning of september compared to 560 last september? and the september before, grasso i mean, the increase is astronomical >> the increase is astronomical. this fits into where you're looking for inflation. and a big part of this -- a couple of things going on. deutsche bank raised their price target to 50 and they raised that to 38 so you can see what they're looking for. infrastructure is still coming down the pike. that's the carrot on the string. i don't know if we get there on infrastructure just yet. the progressives need reconciliation to be passed first before they get on board we're nowhere near reconciliation i think it was a lot of things that are sort of biding some

time for the bulls in the steel market but this is something where people are trying to buy value and definitively that fits into that bucket and there's plenty of tail winds to keep the story on track. >> cannabis stocks rallied today. a series of drug policy related amendments to defense legislation including a new proposal to protect banks that service state legal marijuana businesses tim, what's your take on the action today this certainly doesn't reverse the trend that we've seen this year >> no, it doesn't. it's been painful three months or so or six months for cannabis which got ahead of itself as a sector on expectations on what was happening in d.c the bottom up is fantastic and state by state addressable market was this was a headline, first of all, the market didn't expect. when you see the biggest names in the space like gti, it's set for a rally, 5, 6, 7, 8% it tells you how spring loaded the sector really is, especially

for macro news sneaking safe banking into the national defense authorization act is a headline, frankly, that the industry wasn't expecting and something that would begin very important momentum. it's not the entire answer for it the schumer bill that was proposed three months ago was too encompassing, too much of a kitchen sink and frankly a non-starter. this is getting back into hey, let's get some points on the board, get some points on the board. it would be great for the sector rallied today. the fundamentals have been very strong the sector is waiting for a macro catalyst today tells you that. >> grasso? >> yeah. so i agree 100% with tim the problem is the time line for everything that's happening right now in d.c. is kind of tough going into year end. as we just spoke about, you have infrastructure, you have reconciliation, you have funding the government there's a real chance we see

another government shutdown. so safe banking, cbd is a dietary supplement, these are all things that are the tailwinds. i think they will eventually happen the back half of the year though seems questionable to me. >> coming up, the energy trade fueling up as oil prices pop one options trader is betting on a breakdown. plus, ready for takeoff. counting down to an historic launch spacex sending the first all private citizen flight into orbit in a few hours we're live on the ground with ne rurt he details when "fas moy"etns - had enough? - no... arthritis. here. new aspercreme arthritis. full prescription-strength? reduces inflammation? thank the gods. don't thank them too soon. kick pain in the aspercreme.

this is wealth. don't thank them too soon. ♪ ♪ this is worth. that takes wealth. but this is worth. and that - that's actually worth more than you think. don't open that. wealth is important, and we can help you build it. but it's what you do with it, that makes life worth living. principal. for all it's worth. sales are down from last quarter but we are hoping things will pick up by q3. yeah...uh... doug? sorry about that. umm... what...its...um... you alright? [sigh] [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers plus some of the lowest options and futures contract prices around. don't get mad. get e*trade and start trading today.

the pursuit is on. the pursuit of outperformance at pgim. with deep expertise to outthink across multiple asset classes, actively managing investments in the world's public and private markets.

outscale, with the resources to serve 1,500 clients in 52 countries. and outlast, with long-term conviction that looks beyond today's volatility. join the pursuit of outperformance at pgim. the investment management business of prudential. welcome back to "fast money. check out some major energy stocks topping today eog, diamondback, devon as your favorite phi, what's your favorite? >> i think $27 price target. this to me was an interesting day for energy specific names jpmorgan actually downgraded chevron and took exxon off their

focus list stocks did well. i've been wrong for a while but i think energy still has some legs in it i think it goes higher the place you want to be is service names. halliburton is best and brief. >> karen, your thoughts? >> to guy's point, the biggest exposure i have is the oih it was a pun i the higher oil goes, the better it is for servicing companies. oih. i bought it sort of around here, quickly went down to 170 i still think there's room remember, it was 244 maybe not that long ago so i still think there's room for the up side. >> a lot of things especially at the beginning of july, for instance, are a lot higher than they are right now after that brutal, brutal month we had. tim, how are you feeling about oil these days >> again, look at that move of eog. what the market is rewarding is the company, first of all, as costs that are as low as a lot of their middle eastern peers.

no growth until the market needs the extra barrels. they're providing double digit returns. better than their peer group and in the s&p it's run differently with oil prices at these levels, albeit they've had some not great hedges, i think where we're going with this is the trade moves into an investment people are starting to trust these companies. look at fanks, diamondback they say we will do no consolidation. this is what you want to here. it's a race to see who's going to give back 75 to 80% free cash flow which company will do it they all want to announce it they're all moving in that direction. that's why you want to own the sector. >> grasso, what part of the patch do you like? >> so the services look -- services charts or oih as karen refers to look to me the same way that the refiners look they look to be forming a base right now. emp still is a moon shot

when you look at the etf, xlp, that's up i guess 45% year to date eog is up 52%. devon is up 97% year to date devon would probably be mybest pick in the emp space, but definitively if you want to mute out a lot of the volatility, i would go with the etf and go with the xlp but definitely if i was forced to choose, and you made me choose and that sounded a heck of a lot like would you rather. >> it wasn't. >> i would go with the emp space. >> more specifically it was just an open-ended question but you can interpret it what -- you know, however you want guy mentioned chevron. the ceo of chevron is coming up on "mad money. michael wirth. today's rally will have you feeling bullish on the energy sector one is making a massive bet that oil stocks are about to

collapse tony zhang joins us with the action what do you see? >> we saw action in xlp. even though we've broken out quite a bit, we saw one trader reaffirm what looks like a fairly bearish outlook for the industry this xop normally trades fairly actively 47,000 contracts traded on this but 220,000 contracts traded today and about 50% of nathat volume was from a single trader. they already own 85,000 contracts of the december $60 puts but today they rolled 5,000 to the december $70 puts laying out an additional premium. now whether or not this was an outright out bearish bet or hedge that's yet to be seen, but certainly by moving the strike up to the $70 strike price, this is sort of reaffirming perhaps

some concerns of softness in the oil and gas space between now and december expiration. >> tony zhang. for more "options action" be sure to tune into the full show friday, 5:30 p.m. eastern time. coming up, a rocket launch for the record books the first private all citizen crew into orbit next more on the liftoff coming up next ♪♪ ♪♪

before we talk about tax-smart investing, what's new? -well, audrey's expecting... -twins! grandparents! we want to put money aside for them, so...change in plans. alright, let's see what we can adjust. ♪♪ we'd be closer to the twins. change in plans. okay. mom, are you painting again? you could sell these. lemme guess, change in plans? at fidelity, a change in plans is always part of the plan.

another day, another chance. make the most of it with lem the network that canlans? deliver gig speeds to the most businesses. and get the advanced cybersecurity solutions you need with comcast business securityedge. ask how to get comcast business securityedge to help protect all your connected devices. and get started with a great offer on fast and reliable internet and voice for just $64.99 a month.

plus, ask how to get a prepaid card up to $500. call or go online today to learn more. comcast business. powering possibilities. buckle up. we are counting down to a major milestone in space travel. spacex will launch the first all private citizen flight into orbit in just over two hours let's get to morgan brennan at the kennedy space center with more morgan >> reporter: we are currently go for launch and, melissa, this is history in the making. the four private citizens are already sitting inside spacex's dragon capsule atop a falcon 9 rocket on a launch pad where apollo astronauts began. nasa is just a bibystander

and if all goes according to plan, inspiration 4 will be the first ever all civilian fully commercial space flight to orbit a three day trip at an altitude farther than the international space station, the farthest into space that humans have entered in more than a decade. the crew arrived earlier this hour to that launch pad in their white and black custom spacex suits color coordinated with the spacex hardware and with the teslas that transported them there. clearly excited. hugging. writing their names on the wall of the spacex white room a shift 4 founder jared isaacman, the benefactor and crew man and his three crew mates. they're preparing for liftoff. melissa? >> morgan, will these private citizens be expected to perform the typical duties of crew or is there more autonomy involved in this particular spacecraft than

others >> yeah, so the spacex dragon capsule is autonomous. if all goes according to plan, although there's been very rigorous and intense training over the six months since this crew came together to trouble shoot and learn all possibilities before this mission. if all goes according to plan, it will be an autonomous space flight for them over the course of the next three days they'll be conducting health, medical experiments. and they're carrying pay load. they're raising $200 million for the hospital they're also bringing pay loads to be auctioned off including, what else? nfts. >> well, the fortunate thing is you don't have to transport them they're digital. it doesn't add to the weight of the capsule or anything like that morgan, thank you. >> reporter: sure. they'll have other things too. >> morgan brennan. steve grasso, you're in this space of space through space,

right? >> i am. and even if this just brings to light saint jude charity, it's one of my favorite charities so let's get that out there i think it's well worth it when you start to look at how you can invest in space, i'm still in virgin galactic i entered into this trade probably a couple years back now, and i entered around 15 1/2 dollars. i sold some when it popped recently in the last couple of months it can't get out of its own way. it continues to get more press coverage, but when you look for events, i treat these stocks, melissa, like biotech stocks there's always an event. it's always binary spce virgin has an event coming up at the end of the month in october. m ilin. up next, final trades. commercial real estate exchange. you see it. you want it. you ten-x it. it's that fast.

if i could, i'd ten-x everything. like... uh... these salads. or these sandwiches... ten-x does the same thing, but with buildings. sweet. oh no, he wasn't... oh, actually... that looks pretty good. see it. want it. ten-x it. yum! for skin that never holds you back don't settle for silver #1 for diabetic dry skin* #1 for psoriasis symptom relief*

and #1 for eczema symptom relief* gold bond champion your skin what happens when we welcome change? gold bond we can make emergency medicine possible at 40,000 feet. instead of burning our past for power, we can harness the energy of the tiny electron. we can create new ways to connect. rethinking how we communicate to be more inclusive than ever. with app, cloud and anywhere workspace solutions, vmware helps companies navigate change. faster. vmware. welcome change.

we have got a big two-hour show coming your way tomorrow. we are taking your questions so send them our way on twitter @cnbcfastmoney final trade time karen? >> yeah. i'm looking outside the u.s. beneficiary of oil, mexico, eww

is the ets i'm playing. >> tim. >> everything i heard today says buy jpmorgan, higher rates, cyclicality and sideways for six months jpm. >> steve >> apple on the dip. >> guy >> alcoa, sister. >> "mad money" is up next. see you then 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 money. my job is not just to entertain you but to educate you and teach you. call me or tweet me @jimcramer finally. finally. finally we busted the darn pat pattern. >> that wa