. >> let's bring in joe terranova. let me see joe on the screen. there you are. so i am told you own microsoft and am ex. let's start with the microsoft story. intel hits the ball out of the park. microsoft gets slammed. what does it mean? >> -- buying microsoft for the story of the quarter. i'm buying microsoft for the story going forward, the back end of '09 and 2010, i think the story will be phenomenal. windows 7, microsoft, getting aggressive again. they're stimulating innovation and technology. i like that. i like what they're doing with apple and google, basically saying, hey, we're going to war with you here. bing, they're taking xbox, ramping up the xbox. i like the strategy for '09 and 2010. i've been long microsoft. i'm staying long microsoft. >> i don't mean to be argumentati argumentative. you've got to question the management. you've got to question their investment of spare cash. you've got to question the businesses they're in. once again, if it's pc driven in no small part, why does a company like intel come out with gang buster beat and microsof

he's "fast money" trader joe terranova, chief alternative strategist at vertus investment partners.reat to see you. tell me why you think you want to be buying -- what, the oil service names or are you talking about the large producers? >> good to talk to you, maria. here's the trade. forget about oil futures right now. that trade has passed. that was the second quarter trade. what you want to noex on is the energy equity names, specifically the oil service names. tonight what's important, maria, no one's really talking about this, china, the global economic stabilizing force in the first quarter, they report gdp. that's critical. tonight. and also industrial production. so if we get strong numbers out of china tonight, you will see an extension of this entire move higher that we are seeing in the equity space, and that goes into the energy equity space, where i don't want my exposure in futures, i want it in those actual energy companies. >> now, basically, china was stockpiling oil, right? it wasn't necessarily end demand that was pushing china to buy more oil and use the faciliti

joe terranova following the tick by tick in oil after the clock. following the day's biggest mover as it continues to fluctuate in the market as oil does trade around the world. joe, what's the trade you're putting on right now? >> i think it's important to focus on the overnight activity. over the last four or five sessions, the overnight trading ranges have been larger by a two to one ratio than the day trading. you heard dennis gartman talk about it. and the mcclellan indicator. everyone is talking about the low beta versus the high beta. they have been long the high beta and short the low beta trades. what you need to do is get long. play from the long side, the low beta trades. take a look at petrobras. look at what they did today. take a look at the interday chart of that. take a look at hess. the interday chart of that as well. they both were supportive throughout the day and closed near those highs. those are the ways you want to play it now. avoid the high beta names, avoid the oil futures, exposure through the uso. look at the integrated

we've got some answers right now with joe terranova. he joins us. hief alternative strategy with vertus investment partners and a "fast money" trader. good to see you, joe. tell me what you do with oil on a day when crude just below $64 a barrel. >> well, maria, it's been a liquidation story clearly for the last four or five days. the question for investors now is do you step in? are you remaining flat or do you begin to look at these names from the short side? i'll take the other side of that trade. i think what you do in oil right now is you basically want to remain flat, you want to maybe look at the larger integrated names, and you're looking for a spot to get back into the market. >> you just want to look for declines and see what would be a good entry level. joe, thanks. we'll see you soon. we'll see you tonight on "fast money." joe terranova. the markets looking for direction as oil falls today. also, on "fast money" tonight with the guys and melissa lee the traders kick off the week-long series "the porn trade." how you can profit from the se

joe terranova, what do you do here? >> well, laprincessa, i know you like dollars, but this trade is all about -- we talked the other night on the show, the geithner, chinese talks, they're over. the chinese are out of town, so the dollar doesn't have to remain supported. thus, you see the rollover commodities, energy resource trade, all boats rising again. oil, short trades better move to the sidelines. i don't know if you get long, but you don't want to be short. >> chris, you live in houston, you live, breathe, drink oil, sleep with it in your pillow at night, right? what do you think? >> not quite that, but yes, i agree, i would not be short, because i think the forces could drive this higher, i also would not be aggressively going along here. >> what about the -- are you worried about that wicked contango that if you want to buy oil today, it's a lot cheaper than if you want it six months from now? isn't that a really bad sign? >> i agree with that. but you look at the underlying demand, it's just not simply there.

our "fast money" crew today, joe terranova, and brian sulton an option action trader and patricia edwards of store house participants. let's talk about this. joe, i don't want to be the downer here. it does look good. >> melissa, this is exactly what we have been talking about on the show. and this is about asset allocati allocation, about money managers having to chase performance, and i think we have caught a worth on the show tonight. i want to talk to carter, because i truly believe is a breakout. >> option trade others are agree with joe. definitely playing in a breakout to the up side. all week long, we saw up side call buying in the s&p 500 options. the 980 strike up to the 1000 stroik. i think the premiums are overdone. i don't know that we continue to rally going forward. we even saw goldman sachs firm trader take the opposite side, and sell that type of stuff. we know how good goldman has been in trading the last couple quarters. i wouldn't bet against them. but people have gotten the technical analysis right. the next stop is probably at the s&p. just not gapping. >> john, you

the liquiditior, joe terranova, and last but not least, tim seymour, the ambassador. they hit it out of the park every single night of the week. it is yet another winner. let's get to the word on the street. the headline is better than expected. the eps, gross margin was better than expected. the cross like is what's good. that's what sending stocks higher, and we are see the nasdaq futures move higher as well. >> a little more enthusiasm with that. third quarter guidance, $8.5 billion, double-digit growth. this is a bellwether. intel is moving higher, this will take the rest of the market higher, and it probably sets us up nicely, as you rolled forward next week, you now have a foundation, 870s the s&p, that was the low. >> third quarter guidance for these guys is rare. so we talked about the gross margins, they blew that out, blew out the retches number, and most importantly, these guys are looking to the future. this will get the entire space excited. >> hate to throw an uncle charlie on it. >> don't do it. >> do it. >> exactly. go back to april 15th. these guys re

joe terranova told everybody to buy it. for more, we have our pharmaceutical reporter, mike. >> michelle i'm on a conference call right now oamgen and they just finished up his skrapted opening remarks. basically, regarding health care reform before we move on to earnings. what's boilerplate this earning season from the is industry that the company supports it and they are pleased to have a sat at the health care table. beat by 13 cents on the bottom line. it beat on the top line. it raised its full-year revenue guidance to the upper end of the lowered range it put out at the end of the first quarter. so 14.4 to 14.8 billion. the street was very pessimistic sitting at 14.3 billion, below the lowered range the company had given and most importantly, it raised its full-year's earnings guidance to $4.95 a share. the street was sitting at $4.5. and then the surprise news. the company put out a separate please release with glthe new d that's a osteoporosis drug and many analysts that we talked about before, believe could be a bi

certainly a lot of people, as joe terranova coins morgan stanley goldman light, you're taking down the same business model which we think is going to be a heavy trading model. some he can poeshz in morgan stanley's case i think more to asset management than goldman sachs. aside from the risk they didn't take in the first half with the government's money the stock's better positioned to actually perform in business that's are more longer-term annuities. >> you've got to like morgan stanley's business model but understand what morgan stanley versus goldman sachs, morgan stanley's coming from a different place. back in '07 mortgage security derivatives, they got completely obliterated. goldman sachs dodged that bullet. morgan stanley had to hunker in, change the model, take less risk. yes, morgan stanley goldman sachs light but right now they're goldman sachs very light. >> nobody trades like goldman sachs. you can only compare them insomuch as both firms trade but goldman is clearly head and shoulders above everyone else. but jefferies. go back to that stock. traded up to $22. they raise

our "fast money" crew for today, joe terranova a, the liquidator is in the house.nis gartman and patty edwards and j.j. kingaham of sink or swim. it was expected goldman would knock the cover off the ball. it happened.. what does this mean for the rest of the banks, given that its expertise is prop trading and that's where it came from this quarter. can we draw any conclusions about the banks or not? >> the banks, the consumer banks, you can draw no conclusion. goldman sachs only lost $700 million. what does it mean? it means the world's biggest hedge fund, they are back. they're taking risk. i think that is phenomenal. if you look at their value at risk, it was at the highest levels it's been at, above this time last year. goldman sachs is back, the world's biggest hedge fund is here, they're in the markets. and in terms of the markets themselves, they're functioning properly. that's a good thing. >> dennis gartman is the pressure on somebody like a jpmorgan or morgan stanley to see what their value at risk has been and what their success has been on their prop tr