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Peabody Energy CEO: Regulations Will Cost

Recent safety accidents across the energy sector will likely result in additional regulation, which will raise costs for companies, said Peabody Energy CEO Gregory H. Boyce Tuesday.

The executive spoke with CNBC's Sharon Epperson at the World Energy Council, where he's pushing for equal energy access across the globe by 2050. There are 3.5 billion people without electricity, he said. A million and a half people die without electricity every year. Supplying power to the world's impoverished regions is of the utmost importance.

"Once we do that, then we will drive a global economy that will be able to accelerate the goals that we have in terms of environmental improvement," he explained. "But we have to eradicate that poverty first."

In light of several safety incidents within the energy industry, Epperson asked if changes to regulation are likely. Boyce expects additional regulation in the mining industry and said it will likely raise costs. He hopes the regulation will come from individuals who really understand what's happening underground.

"The real point," he said. "Is to bring everyone in the industry up to a real high level to eliminate these catastrophic accidents."

Boyce also predicted a super-cycle in coal and said pricing will remain intact despite relatively depressed natural gas prices.

Watch the video to see the full interview.

What's the Trade?

Peabody is "best in breed," said Joe Terranova, chief market strategist of Virtus Investment Partners. He thinks they are best positioned to grow globally and already have joint ventures in China and India.

Veracruz founder Steve Cortes agreed that Peabody is a leader in the coal space, but is worried by comments made by Cliffs Natural . He thinks it's time to take profits and is otherwise long coal.

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GOLD HITS NEW HIGH

Gold posted a record high Tuesday, as investors ran to a "fear trade" in light of a weak US dollar. The precious metal has increased by 15 percent in 2010 and gold miners are also outpacing gains.

Jon Najarian, co-founder of optionMONSTER.com, is taking a look at the Market Vectors Gold Miners exchange-traded fund.

"You want outperformance? You want alpha?" asked Najarian. "You go for the GDX."

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UNUSUAL ACTIVITY: CREE

Cree, Inc. had a big washout to the downside, but the volume of its stock turned over and bottomed out at a 52-week low last week, said Jon Najarian of optionMONSTER.com. On Tuesday, the stock started moving again thanks to mergers and acquisition talk. He noted that just three hours into trading, it had more than 25,000 calls. Najarian thinks CREE has upside from here.

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CALL THE CLOSE

Steve Cortes, founder of Veracruz, thinks it's time to take profits.

Patty Edwards, principal of Storehouse Partners, recommends buying platnium.

"Gold looks like the only hold asset left," said Joe Terranova, chief market strategist of Virtus Investment Partners. "Stay with it. It's going to 1,300."

Jon Najarian, co-founder of optionMONSTER.com, loves the news out of Cisco Systems. He also thinks other potential catalysts will push the markets to the upside.

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Trader disclosure: On September 14th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Jon Najarian owns (AAPL) call spreads; Jon Najarian owns (ARST) calls; Jon Najarian owns (CSCO) call spreads; Jon Najarian owns (RHT) call spreads; Terranova Owns (APA), (AAPL), (ARUN), (BMO), (C), (DO), (EOG), (FCX), (FTO), (XBI), (GS), (HES), (IBM), (JOYG), (NBR), (NOV), (OXY), (ORCL), (PEP), (POT), (RSH), (GLD), (SLB), (SWN), (SU), (SPLS), (RIG), (UPL)

For Joe Terranova
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners own more than 1% of (ABAX)
Virtus Investment Partners own more than 1% of (ALK)
Virtus Investment Partners own more than 1% of (AMKR)
Virtus Investment Partners own more than 1% of (CASS)
Virtus Investment Partners own more than 1% of (CSVI)
Virtus Investment Partners own more than 1% of (IGE)
Virtus Investment Partners own more than 1% of (LDR)
Virtus Investment Partners own more than 1% of (LPHI)
Virtus Investment Partners own more than 1% of (MGRC)
Virtus Investment Partners own more than 1% of (NRCI)
Virtus Investment Partners own more than 1% of (DBV)
Virtus Investment Partners own more than 1% of (XLB)
Virtus Investment Partners own more than 1% of (XLP)
Virtus Investment Partners own more than 1% of (XLY)
Virtus Investment Partners own more than 1% of (XLF)
Virtus Investment Partners own more than 1% of (XLI)
Virtus Investment Partners own more than 1% of (XLU)
Virtus Investment Partners own more than 1% of (SUBK)
Virtus Investment Partners own more than 1% of (WDFC)
Virtus Investment Partners own more than 1% of (YDNT)
Virtus Investment Partners own more than 1% of (DLUEY)
Virtus Investment Partners own more than 1% of (DRYS)


For Patty Edwards
Edwards owns (HPQ) for clients
Edwards owns (MSFT) for clients
Edwards owns (BAC) for clients
Edwards owns (GLW) for clients
Edwards owns (GLD) for clients
Edwards owns (SPY) for clients
Edwards owns (VXX) for clients
Edwards owns (PGM) for clients
Edwards owns (C) for clients

For Steve Cortes
***No Disclosures***


CNBC.com with wires.

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