CONSPIRACY THEORY: WHY ERIC BOLLING IS GONE OR QUIT?

Well we’ve all been wondering where is Eric Bolling? I think there is a huge tell by his disappearance and the news about New York Mercantile Exchange (NMX) buyout news? Well the NYMEX Chairman Richard Schaeffer said the company is discussing a merger. Schaeffer said any offer for NYMEX would have to be at a “meaningful premium” to the company’s current share price. Meaningful huh…how meaning full. The stock closed at $126.06. (Disclosure I own shares). Well there are calls for $155 to $165. I think it’s reasonable. Well I say reasonable because that would make me a pretty penny. Anyways, the NMX is selling their building. They wants to be bought and announced negotiations. But why? Well to increase the bid price of course. Hype sells. Who are the bidders? The New York Stock Exchange Euronet (NYX) of course across the street but the hype will bring more people to the table to drive the price up. How do Eric play into this? Well he’s listed as a strategic advisor. Well it’s time to be strategic and he’s probably somewhat included in the intense negotiations so that’s why no one know? Conspiracy? I think not!

Eric Bolling Profile

City: New York
Exchange: NYMEX
Age: 43

What He Trades: Natural-gas futures are Bolling’s market of choice, though he got his start in crude oil. “If you think of the crude-oil pit as a $100-minimum table,” he explains, “then natural gas is the $1,000-minimum table. It’s hugely volatile.” The international nature of energy appeals to him. “Chicago has a lot of grain markets and agricultural pits where the markets are localized, but energy is global. Something can happen in Saudi Arabia that has ripple effects from Shanghai to Manhattan.” Bolling owns two seats on the NYMEX, two on the Comex and two on the NYBOT.

How He Trades: Bolling is down in the pits all day, every day. When trading ends, he monitors his positions electronically. Still, he remains a devotee of the cut and thrust of the floor: “When something happens in the market, they all go to open-outcry, because that’s where the volume is.”

Bolling represents a lot of that volume, claiming responsibility for as much as 5 percent of the action in the natural-gas pit. Six-foot-one and a former professional third baseman, he says the physical and mental edge that comes from competitive sports gives him an advantage. “When you’re on the field or on a court, there’s a process you go through in your mind that is similar to making a commodities trade or a pit trade. Not necessarily an upstairs, long-range hedge-fund manager’s trade. But in an instantaneous pit trade, athletes are very good.”

How He Got Started: In 1985, Bolling, drafted out of Rollins College by the Pittsburgh Pirates, was playing for their single-A affiliate in Bradenton, Florida, when a routine grounder came his way. “I picked up the ball, turned to throw and heard a pop in my shoulder,” he says. “That was it, the end of my career.” He started looking for other jobs. A Chicago native, he had seen the serious money to be made at the exchanges. Later that year, he found himself on the energy desk for Prudential-Bache in Boston.

“I realized that the people really making money were on the trading floor. So I did whatever it took to get down there.” He leased his first seat in 1987 and bought his first seat the next year.
Estimated income: $10 – $15 million

MAD MONEY: CRAMER SAY STOCK WILL GO UP BUT ECONOMY DOWN?

Jim Cramer on Mad Money tried to explain the psychological shift going on in the market. While everything is still wrong and the problems of subprime still exist like H&R Block (HRB) tapping into a line of credit, American Home Lending (LEND) halting loans, and Lehman Bros (LEH) closing their mortgage unit. The news is all bad but the market is still up because the mental perspective is positive. It’s not what have you done for me – it’s what have you done for me LATELY. But he said “What I’m emphasizing is use the lesson I’ve learned, which is that don’t be so granular…Don’t look at Lowe’s and puzzle over why it is going up. Look at it and understand that we’ve flipped in the ways we look at things.”

Cramer stressed retail is “a fabulous place” to be when the Fed stops raising rates and starts cutting” and people can’t just look at can’t just look at the company,” like Lowe’s (LOW) because otherwise they’d be shorting Lowe’s which would be against the sway of the market. Cramer suggested Lowe’s and Toll Brothers (TOL) are now situations that have stabilized and could get better – not worse. But he stressed that people need to DO THEIR HOMEWORK but listen to the conference calls.

MICROSOFT TRADE:

On Sept. 25 release of Halo 3, the flagship franchise of Microsoft’s (MSFT) Xbox video-game system will be the “biggest video game event of the year” But not to be witty but Cramer believes Halo 3 will bring the halo affect to the X360 consoles that are killing PlayStation 3 but Cramer says the best play is GameStop (GME), the largest video game retailer in the U.S.

Whiles it’s already up 33% this year, this is “great season for tech” to come and because in video-game culture games are now a common part of society like a movie. Cramer suggested buying on any weakness after Thursday’s postearnings conference call as long as it doesn’t miss earnings otherwise forget it. So if it skyrockets after earnings or if earnings tank, then forget it. But if it works out then hold it as a short term trade until Halo’s release.

DOLLAR TREE TRADE:

“The psychology has changed, and stocks can once again go higher,” however, Cramer believes that the U.S. economy heading toward a recession. For this reason, Cramer believes “the world of the dollar store” is a good play because as slower times for “low-end consumers” generally call for “lower spending,” these consumers are more likely to curb spending with “inferior goods.” Cramer recommened Dollar Tree (DLTR) because it is the “best of breed” while it is still increasing store trafice and it’s one the move. It recently began accepting food stamps and debit cards for payment, thus widening its economic reach. Also to increase margins, Dollar Tree has also begun selling items that “cost more than a dollar,” (yes it’s an oxymoron but it works).

In terms of competition, Dollar Tree easily stands out from its two main competitors, Dollar General and Family Dollar (FDO). While Dollar General was recently taken private will close “underperforming stores,” Family Dollar already has twice the stores that Dollar Tree does so it can’t expand as much while Dollar Tree can. Cramer told investors to wait “at least five days” before they buy into Dollar Tree and DO SOME HOMEWORK. Yes this is all because of the Barron’s article. Barron’s should read his book.

MEDECO TRADE:

Medco Health Solutions (MHS)’s CEO and Chairman David Snow was on Mad Money and Cramer congratulated him on his company’s consistency. Medco, one of the world’s largest purchasers of generic drugs and largest mail-order pharmaceutical distributor, averages 6% growth per year, says Snow. In the end, Cramer said it’s a good long term growth because more generics are going on the market every years and see it as a long term play to 2012 as a type of baby boomer trade but he said watch the stock and buy when it goes down.

Lightning Round Summary

Cramer was bullish on Crocs (CROX), Precision Castparts (PCP), Goodyear Tire (GT), InterContinental Exchange (ICE), CME Group (CME), NYMEX Holdings (NMX), NYSE Euronext (NYX), Vector Group (VGR), Amazon.com (AMZN), Apple (AAPL), Google (GOOG), Research In Motion (RIMM) Reynolds American (RAI) and Altria (MO).

Cramer was bearish on Yamana Gold (AUY), CyberSource (CYBS) and True Religion Apparel (TRLG).

LIGHTNING ROUND HIGHLIGHTS:

Yamana Gold (AUY): “If you go through Yamana’s quarter, it is the only growth gold stock out there. It is making an incredible amount of money. … It also produces copper at the same time.” Cramer said he thinks everyone should have gold in his or her portfolio, but it’s not going to go up for a while. “Gold is not the right thing to buy in a deflationary spiral.”

Precision Castparts (PCP): “The bull market in aerospace and defense is back. Precision Castparts had a better quarter than almost every other supplier to the major airline companies. … Now that the Fed is on our team, all these bull markets are back in place, and Precision Castparts is a great way to play the aerospace and defense bull market.”

InterContinental Exchange (ICE): “I like ICE. … I like derivatives. I like commodies trading. ICE is good. … I am hopeful that the Nymex (NMX) merges with the New York Stock Exchange (NYX). It would be a terrific deal. … I like ICE, I like CME (CME), I like Nymex, and I like NYSE,” which Cramer owns for his charitable trust. “The only one of those that’s done really badly is New York Stock Exchange, but I’m stickin’ with it.” – Will the buyout of NMX help NYX? He just said he likes them all.

Goodyear Tire (GT): “I think Goodyear Tire had a major pullback, and the pullback is a mistake. Goodyear Tire is one of those companies … best of breed. I think I like the stock up to the $32, $33 level.” This is also a good global play as he makes tires for large vehicles as well.

Crocs, CROX, Precision Castparts, PCP, Goodyear Tire, GT, InterContinental Exchange, ICE, CME Group, CME, NYMEX Holdings, NMX, NYSE Euronext, NYX, Vector Group, VGR, Amazon.com, AMZN, Apple, AAPL, Google, GOOG, Research In Motion, RIMM, Reynolds American, RAI, Altria, MO, Yamana Gold, AUY, CyberSource, CYBS, True Religion Apparel, TRLG, Medco Health Solutions, MHS, Dollar Tree, DLTR, Dollar General, Family Dollar, FDO, H&R Block, HRB, American Home Lending, LEND, Lehman Bros, LEH, Toll Brothers, TOL, Microsoft’s (MSFT, GameStop, GME,

FAST MONEY: RATE CUT TRADES AND FINANCIAL OPTIMISM

First words from the Fast Money Traders: Volatility is going down according to Pete Najarian. Constance Hunter said that she would be a buyer. Adami says everything is just resting.

Pete Najarian says that now that everything is becoming transparent, banks are going up like Bank of America (BAC), Wells Fargo (WFC), and Citigroup (C) are close to buys.

TECH TRADE: Najarian recommends EMC (EMC) who is breaking new highs of recent while Adami says Network Appliances (NTAP) is the one to watch. Contact Hunter says Apple (AAPL) is looking strong. Macke says Intel (INTC) is the real one.

Target (TGT) had good earnings but Macke says specialty retailers like Zumiez (ZUMZ) and Gamestop (GME) are the trade and should start to take some off basically sell into earnings. Hunter says that based data that wages were up 7% and will support the retail market.

MEDTRONIC TRADE: Najarian says Medtronic (MDT) is a buy on it’s afterhours weeknes.

DELL TRADE: Dell has problems with production. Sounds like a sell.

Argriculture TRADE:
Hunter says that this has nothing to do with the subprime problem and says they are oversold. Buy Potash (POT) and Agrium (AGU).

CHINA INFLATION TRADE:
Guy Adami says that the “shoe will fall” meaning that it will fall sometime. Hunter recommended iShares MSCI Hong Kong (EWH) as a trade because China will let money flow to the Hong Kong market. Huge money flow…I smell MONEY! Najarian says just own China into Beijing Olympics

RATE CUT TRADE:
Dividend ETF (DVJ), Kraft (KFT), and Johnson and Johnson (JNJ) was recommended by Najarian. Adami says Goldman Sachs (GS) to be bought now. Widsom Tree International Finance (DRF) should be the play according to Hunter because of weakness in the dollar. Jeff Macke says screw the financials because the rate cuts are priced in already!

TARGET BAROMETER TRADE:
Jeff Macke says the numbers were fine and Target says the consumer is just fine which is backed up by Hunter’s data about rising wages.

OIL TRADE: Drops 12% below $70.
Najarian says the energy is going further down and Energy SPR (XLE) is coming down. All the oil stocks are seeing a lot of put buying while airlines are a good play. While Adami says any event will push oil back up and he like Exxon (XOM). Macke says sell those airline stocks.

Dick’s Sporting Good (DKS) – CEO Ed Stack comes on the show as it jumps after raising earnings forecast. Stack claims that he can grow with a new golf chain. Hunter doesn’t like it but the guys, Adami, Najarian, and Macke says BUY IT!

POPS:
Apple (AAPL) – Adami says don’t buy yet.
Synchronoss (SNCR) – Najarian says stay away for now.
RealNetworks (RNWK) – Macke says sell because they can’t take down iTune.
Contential Airlines (CAL) – Hunters says it’s just short covers – she says SELL
VMware (VMW) – Adami says it’s good but don’t chase it.
Take Two Interactive (TTWO) Macke says sell it – it has no good games.
Costco (COST) – Mackes says it’s still a buy
Starwood (HOT) – Najarian says options activity says to watch it.
Amazon.com (AMZN) – Jeff Macke says it’s just shorts getting killed.

DROPS:
Toll Brothers (TOL) – Adami used the work “SUCK” that is self explanatory.
Hess Corp (HES) Energy dropping because of oil – Hunting
Infosys (INFY) drops because of banks weakness because they do IT for them. Hunter says buying opportunity.
Saks (SKS) – Adami says it’s a sell

iShares MSCI Swedent (EWD) – Hunter says go long. Macke says go long too.

FINAL TRADES:
Macke says sell TTWO
Adami says buy Target (TGT)
HXM Hunter Buy Mexcio home builder, Homex (HXM)
Najarian says buy Under Armour (UA)
UST (UST) – Najarian says sell because of competition

MAD MONEY: DIVIDEND AND PET PLAYS

After the senate starting showing their influence on the Federal Reserve, Jim Cramer now feels that we are “in for a series of interest rate cuts over and over and over” from the Fed. The best play Cramer felt with money market and CD rates going down, was putting money into dividend paying stocks that are going to increase in value.

DIVIDEND PLAY:

Cramer said Procter & Gamble (PG) is a “a great stock” and an investment for the long term. Although only having a 2.2% yield on a $64 stock, Cramer reminded everyone that PG was just $30 a share in 2000. It might not be quick growth but safe growth through global growht and Cramer believes that the stock goes to $90.

PET PLAY:

While mentioning PetMed Express (PETS), a discount pet pharmacist, Cramer prefers PetSmart (PETM) which operates more than 966 pet stores in the U.S. and Canada, is known for selling “high-class premium” items. Having $245 million in cash and paying a small dividend adds to the best aspect of the company which is the lack of competition in the space because its main competitor, Petco was recently taken over by a “debt-ridden company” and is “likely to be closing stores.”

VEGAS PLAY:

When asked about a vegas play, Cramer preferred Las Vegas Sands (LVS) or Wynn Resorts (WYNN) instead.

Lightning Round

Cramer was bullish on Aecom Technology (ACM), Jacobs Engineering Group (JEC), Wachovia (WB), Schlumberger (SLB), Transocean (RIG) Tata Motors (TTM), E*Trade Financial (ETFC), American Capital Strategies (ACAS), Hudson City Bancorp (HCBK) Level 3 Communications (LVLT) and Tessera Technologies (TSRA).

Cramer was bearish on Dean Foods (DF), Banco Popular (BPOP), Parker Drilling (PKD), Foster Wheeler (FWLT) and First Solar (FSLS).

LIGHTNING ROUND HIGHLIGHTS:

Dean Foods (DF): “If you want to see what can go wrong in corporate America, you go listen to or call up the Dean Foods conference call. Everything that could go wrong for this company went wrong. … This has become a very problematic story, and I’ve gotta tell you something: I don’t think it’s over, and the company doesn’t think the pain’s over, too. If they’re not bullish, I’m not bullish.”

“Let’s stick with Schlumberger (SLB) and Transocean (RIG). They are the best.” Cramer owns Transocean for his charitable trust.

I think it’s going to run into selling pressure. … We will not get a reignition of FosterWheeler (FWLT) until we get another quarter in the bank.”

“E*Trade Financial (ETFC) got hit on some stuff last week about mortgages. … [CEO] Mitchell Caplan has done an unbelievable job on this E*Trade. … I would buy some here, and let it come down if it does. … I’ve been aghast that this stock was able to be rumored down. It was part of the whole subprime thing that took on a life of its own. … I like the stock.”

American Capital Strategies (ACAS): “Malon Wilkus is the CEO. He is a great investor. … He is a seasoned survivor. He just bought stock this week. … I think that this company is a survivor. A lot of people have tried to call it out a lot of times. They’re not going to be successful.” He’s bottom fishing…will he be right?

Level 3 Communications (LVLT): “I like LVLT for one reason: because I believe there is going to be a bandwidth shortage. … I am picking this as a long-term speculation.” He’s been picking this for a long time but long term it may be nice especially if there is the first earning surprise then more will come.

Tessera Technologies (TSRA): “I mentioned American Standard. I blew [it on] Tessera, too. I thought the quarter was going to be good. I got the quarter wrong. … Now in the low $30s, I would definitely buy it. … I believe in both of them, but I got them wrong. I want to stick with Tessera, and I want to stick with American Standard, but you’ve got to go to other guys who are better on those stocks than I am.”

IF YOUR PORTFOLIO IS SAD, YOU CAN STILL BE HAPPY

Here’s an interesting article for everyone about happiness. Yes it’s probably the most common thing that you hear that money doesn’t make you happy but it sure does help and we can’t lie about it but here is a summary of some books about happiness by Paul Farrell, a MarketWatch columnist.

Here’s your course synopsis, the books, the authors, the messages:

* “Zen Mind, Beginner’s Mind:” Shunryu Suzuki. “Which is more important; to attain enlightenment, or to attain enlightenment before you attain enlightenment; to make a million dollars, or to enjoy your life in your effort, little by little, even though it is impossible to make a million; to be successful, or to find some meaning in your effort to be successful.”

* “Stumbling on Happiness:” Daniel Gilbert. Another Harvard professor, who says in his new book: “If everybody realized constant production and consumption aren’t a source of happiness … how many of us would get up in the morning and say: I know it’s not going to make me happy, but I want to keep the economy going?”

* “The Art of Happiness:” The Dalai Lama. “Everywhere, by all means imaginable, people are striving to improve their lives. Yet strangely, my impression is that those living in materially developed countries, for all their industry, are in some ways less satisfied, are less happy, and to some extent suffer more than those in the least developed countries.”

* “Money & the Meaning of Life:” Jacob Needleman. “The battlefield of life is money. Instead of horses and chariots, guns and fortresses, there are banks, checkbooks, credit cards, mortgages, salaries, the IRS. But the inner enemies remain the same now as they were in ancient India or feudal Japan: fear, self-deception, vanity, egoism, wishful thinking, tension, and violence.”

* “The Millionaire Mind:” Thomas Stanley. “As most millionaires report, stress is a direct result of devoting a lot of effort to a task that’s not in line with one’s abilities. It’s more difficult, more demanding mentally and physically, to work at a vocation that’s unsuitable to your aptitude.”

* “Flow: The Psychology of Optimal Experience:” Mihaly Csikszentmihalyi. “Isn’t it funny? I’ve been studying happiness for at least 40 years, but I still don’t have a definition of it. The closest one would be that happiness is the state of mind in which one does not desire to be in any other state. Being deeply involved in the moment, we do not have the opportunity to think about anything but the task at hand — hence, by default, we are happy.”

* “Seven Spiritual Laws of Success:” Deepak Chopra. “Everyone has a purpose in life, a unique gift of special talent to give others … Sit down and make a list of answers to these two questions: Ask yourself, if money were no concern and you had all the time and money in the world, what would you do? … Then ask yourself: How am I best suited to serve humanity? Answer that question and put it into practice.”

* “The One Thing You Need to Know.” And if all else fails, take Marcus Buckingham’s incredible advice: “Discover what you don’t like doing and stop doing it.”

* “The Way of the Peaceful Warrior:” Dan Millman. “The secret of happiness, you see, is not found in seeking more, but in the capacity to enjoy less … This is the final task I will ever give you, and it goes on forever. Act happy, feel happy, be happy, without a reason in the world. Then you can love and do what you will.”

* “The Alchemist.” Paulo Coelho’s novel is a spellbinding must-read about everyone’s lifelong search: “When you want something, all the universe conspires in helping you achieve it … God has prepared a path for everyone to follow … The secret to happiness is to see all the marvels of the world, and never forget the drops of oil on the spoon.”