with geld at 1650 and i love gfi. >> we are talking about frontline?t's going on. >> frontline is bombing out. a well-defined bearish to bullish. there is a case if one wanted to do a trade, index versus bullion. that's more than owning gold stocks. >> on the frontline, right? >> i look at something differently than carter does. with the way i look at it, what's happening in the business. there is a few things in front that are interesting to me. the business model is one that we are starting to see a big move in day rates. when you have the model, they should be large fixed cost and small operating or variable costs. you have a balance sheet that is levered and you have turbo charged earnings because of the rates moving. all of that excess goes to the bottom line which makes this a hugely volatile stock. i'm long because i do believe that eventually there will be a movement and i think the greatest tanker trader ever. they saw three years ago that oil tankers were not where you wanted to be. he was out early, but he does everything right in a bag way.

we have zon, director of institutional sales, and trading at gfi group to give us the trade going intoere and into next week. so you're going to take advantage of the declines this week as a buying opportunity? is that what we're talking about here, john? >> yeah. we think the market acted really well with the negative news coming out of china and out of europe with the pmi weaker than expected. if this is the first down week that we've had all week we'll take it and move into quarter end. >> very, very low volatility. it's been a slow roll south here. f financials, consumer -- >> overweight discretionary names, overweight tech and lightening up on utilities as well as energy going into next week. there's a lot of data coming out the following week. but good friday actually falls on the day when the unemployment report is announced. so that throws a little bit of a quirk into the calendar. other than that, i think that we have some elections in germany and spain this weekend. rej nregional elections. all in all, i think it's holding quite well. >> why the underweight in energy when pri

gfi trades and if people want to play south africa overall, you have the big etf, a great way to getwell. >> tim, ian, it's zachary. just to jump to the other side of the atlantic, brazil has clearly lagged a lot of these markets and maybe it's because the indices are so heavy and metal and steel and concern about china slowing. is this lag that they are dealing with that makes it less attractive than the other emerging markets? >> well, i -- brazil is up 15% this year, both in index and currency terms. brazil has two structural problems. one is unemployment is so low, there's a lack of skilled labor and remaining not far below the surface, even though global inflation is at issue. the banks are extraordinary. it's an economy affected by china's slowdown because names like some of the mining stocks have been hurt by that slowdown. it's also very positive for brazil which is the most balanced consumer in emerging markets. stay with the consumption stories, one of the largest retailers there. i think the banks are fantastic. they've pulled back quite a bit. you may have entrance levels

john is director of instituti institutional sales at gfi group, joining us now with this trade.ohn, let's talk about this. what would you be doing with citi? a lot of debate about this stock today. >> a lot of debate. i think that a little bit overestimated what they were going to get back from the fed. so when the fed denied them, this stock obviously sold off yesterday after hours. i think vikram is maybe not as good of a banker as moynahan. moynahan had a much worse legacy asset on his balance sheet. he didn't try to overplay his hand. to have bank of america's balance sheet withstand a 21% decrease in home values, 50% stock market decrease, and then also 13% unemployment, i think that speaks to what a job he's done at bank of america. citi, we're basically neutral on citi. >> meredith whitney just said the real problem was the company asked for too much. they wanted to move on the dividend and buyback, et cetera, and they were just too aggressive. but what were you just saying? you were saying that -- what's your ratings on these stocks? >> well, like i said, citi is more of

buy gfi. production profile improving. harmony has got bigger issues on a range trade.buy it. relative to harmony your downside protected on the gold side, macro, but again you're buying a superior miner. >> good to see you. get more global trades every tuesday right here on "squawk on the street." of course, every night on fast money at 5:00. >>> jefferies out with earnings this morning beating on both the top and bottom lines. what's the read-through for the other big banks? we'll break down the numbers, next. an investment opportunity you didn't see before. fidelity's next generation ipad app lets you see what's trending around the world, as well as what over a million fidelity customers are trading throughout the day. and advanced charting lets you customize your views and set up your own comparisons. our ipad app can help refine your strategy or even find a new one. i'm velia carboni, and i helped create fidelity's next generation ipad app. it's one more innovative reason serious investors are choosing fidelity. get 200 free trades and explore your next investing i