Micron, qualcomm, all following. These have been some of the hottest trades of the year is this the beginning of a bigger pullback or should you buy this dip dan . Its a tough one. Obviously we had microns earnings a week and a half ago they beat and got higher they were talking about nand pricing and dram this is a headwind for apples margins, theyre a big customer of apple for me, you have to think about this apple announcement, we see this every quarter whether its hush hush, whisper whisper, theyre not going to have the builds they did on this high end phone thats going to possibly affect their asps. Last quarter expectations were not particularly high because people knew the iphone x would be pushed out later into the calendar q4 and all of a sudden they gave this massive guide for units in this quarter, 85 million. I think at the end of the day you have a stock trading at 170, i think back then it was 160 if they were to come in line and guide, you know, down a little bit, i dont think its the end of the world i dont think it changes the story a whole heck of a lot. Youve covered apple for a very long time as an analyst the taiwan economic daily, they report this, and they dont have any specific sources, and yet people in the market really took this very seriously. Why . Im actually surprised, given the context of this. So every year, theres some noise. But theres a ritual around going into an iphone cycle youll hear about these massive builds i want to give a quick context to how those builds and then they get cut they have those big builds because they want to keep their suppliers at task and make sure they produce a ton of inventory, then they dial that back this is normal operating, im surprised its getting the traction it has. These 30 Million Units theyre expecting for the iphone x for the march quarter, if apple does that, that will be double the number of iphone xs that the market is expecting. There is a Positive Side to asps in the news. Its great having you on the desk the question you have to ask is, theres going to be catchup quarters in q2 and q3, essentially probably the march quarter, at least the june quarter, where we wouldnt have seen that in other refresh cycles i think you can impute this to taiwan semi and other chip makers too, theyre getting hit on this news is this ultimately a positive for apple, the fact that there was slowness out of the gate and now its more of a smooth run . Its a normal operating procedure. It probably is a positive. Whats most important is that they still cant keep these in supply just now, as of yesterday, 97 of the stores in the u. S. Have iphone x thats basically tripled over the past few weeks if there was a demand issue, then we wouldnt have a supply issue. You would know if theres a demand issue this quarter is going to be really important to see you know, listen, the fact that they freed up supply as soon as they did i think is really surprising to me, if we get a sense for the mix, because the plus was going to be a big seller, we knew that at the end of the day they raised prices on all these phones this was a massive uptick, either 1,000 or 1,150. It should be great for asps if they hit the 30 million number a funny thing happened on the way to the forum visavis the parthenon. The pullback on apple is a gift. Very little spillover into tech more broadly, triple qs down 50 basis point, the biggest stock down 2. 7 . Very little spillover into the semi applecentric chip stocks were hit the hardest, yes smh closes on the highs of the day, still down 1 , im okay with that. Taiwan, the epicenter of this story, down 1 this is a high beta market a lot of sort of storm here, a lot of noise, but not a lot of signal the stock didnt even break below its 50day moving average. Youguys are all bulls i have to take some issue here lets talk about micron, a huge supplier to apple. Down more than 10 from its highs. It gapped up after those earnings and then got creamed, okay taiwan semi is down 10 from a month ago, 52week high. Come on it could be the hottest sector, the hottest trade in tech over the last two years is starting to roll smh goes up 33 andpulls back 8 on a classic seasonal run. You dont have to be bullish, but a rotation out of technology. This is where it would start. You heard it out of micron. Dram and nand, youre seeing a rebuild of inventories we saw a drawdown of inventories in the last six months you just think you can overreact. What if the presumption is thatthis can start or make the rotation out of technology snowball theres already this thought in the market im not sure thats a bad thing. Maybe its not a bad thing. Youve seen the action in energy, well get to the surge off the bottom tech has held up extremely well, i think, given this aggressive move into energy and more cyclical factors we talk about seiasonality. One other piece out there, we know our best estimate is that things are going well right now for apple, despite the news today. I think thats probably indicative of the broader semi market if you fast forward six, nine months from now, well be talking about 2019 im more concerned about the multiples on some of these chip stocks at the end of next year as we start thinking about because whenever you have a big year, you naturally have a pullback in the growth rate. To me, thats one of the bigg bigger but your presumption is that in 2018 these stocks will continue to run. Exactly in the first half. When things are doing great in the middle of 2018, thats when multiples start to is that your sorry to cut you off, mel, but to me its all about the multiple where are you next year on earnings, eps . 12 you can put a 16 multiple on that, you get to about a trillion dollar company. Thats the high end of the multiple so 10 from here. Guys, heres the thing if there was ever going to be a cyclical stock, they introduced a thousand dollar phone and they dont have the demand im just saying, im not wishcasting but were not sure about that well know in a few weeks it wasnt a smooth launch its not because of demand he just said that. We dont know what are we talking about . We dont know. The iphone x demand has not been great, okay . So if we see that in their guidance for the march quarter, then thats it, in my opinion, they totally miscalculated on a market where 85 of the market share is android and the average selling price is maybe a third of apples average selling prices so to me, if they cant have a hit in this high end product in this quarter and the next one, that may be it this gets back to a company that has no innovation and its all about one refresh, when thats not what people have been talking about for the last six months theyve been talking about 23 growth in services, theyve been talking about asps that are growing higher if anything, Gross Margins are going higher hes year was the lowest in two years. Thats the call i mean, the call is their asp, theyre holding it. Theyre not giving it up and then there are places like india and china which are turned around meantime the stock is headed to 300 billion in market cap. The bears have been calling a cyclical stock theyve missed out on 400 billion in market cap. I think 2018 will be another great example of that. It wasnt just apple, the rest of the tech space taking a hit as well. Rich ross has three names, head over to the plasma, rich there he goes. Sauntering away. Do we have to invite him back not necessarily weve made our list, we checked it twice microsoft still comes out on top. We talk about the strength the relative strength versus the market some of the weakness you saw microsoft is holding like a rock look at the short term trend, the next move coming out of this pattern is higher. As we discussed last week on this very show, its the power of this base that makes us really bullish here. This is an 18year base here, absolutely and on a relatively basis, look at this. Youve just started to break out versus the s p first time in 17 years, taking out those old highs. Theres really a lot to like about microsoft. So now were going to look at vmware, well stay in the Software Space, maybe not a household name but it should be. 70 billion in market cap. An equally bullish base, albeit shorter, talking about a fiveyear breakout base here to a new alltime high. Just like a microsoft, what we like about the stock is this relatively strength breakout you see a stock that had been underperforming the market for the better part of the last four years. So now we emerge, both relatively and absolutely, as you saw, just before microsoft and vmware in the Software Space, two great buys the big boy here, facebook what i like about facebook is the stock hasnt done very much, okay for the last five months going back to july, the stock is not underowned but underappreciated, underloved i like that, going into one of the strongest periods of seasonality for tech and big tech more broadly. We go higher theres three great ways to play technology, microsoft and vmware in the Software Space and facebook in the faang space. If you werent on the desk i might not invite you back. Hes going to be homeless whats he going to do . Come on back tim, your pick of the three i like Facebook Facebook has priced in a lot of challenging news the headwinds coming out of europe obviously the stuff in terms of privacy is a big deal here i think theyve also let the market know theyre going to spend a ton to control some of the factors in their business, including the media side of it, that have gotten a little away from them. The fact that this stock is holding this ground, that is bullish. Another big advantage that theyre going to have is they havent monetized messenger yet. Theyve hinted thats going to be coming. Analysts have been putting concepts around that that should be possible over the next couple of years what do you think payments messaging in general. Paypal is a massive lever for this company to pull when they bought whatsapp a few years ago, they said they wouldnt put ads on it and they havent done anything to monetize it. Would they put ads on the app . Theres a lot of ways to do it, deals with retailers, that sort of stuff. To me it sounds like payments is the way forward. With facebook, you just mentioned it, you just said the street knows theyll be spending more 2018 eps is expected to be up 11 . People have already worked in, you know, higher costs 30 sales growth. To me it may start looking cheap if people see other levers for them to pull im glad you mentioned the cashout. What are the odds that facebook or apple does something with blockchain or crypto in the next year and what does that do to the multiple weve seen what it does to Long Island Iced Tea multiple apple is not going to do anything in crypto in the next year, it isnt part of their culture. Theyll let someone else lead and be the pioneer there facebook . I think it might work with a third party to do it would you be happy as an investor if they announced something . Look, i think showing an awareness of how payments are being made and how the world is being disrupted or certainly disinteredi disentdi disintermediated facebook is trading at a premium. When you listen to paypal talk about venmo, they talk about it as a social media network. I think their silence speaks volumes here the fact that were not rushing into the market on this Nascent Technology thats really yet to be proven outside an historic run on the stock charts here as it pertains to the stock chart itself, youre moving sideways here. Thats bringing expectations down as you go into a period of very strong seasonality, you want to buy large cap tech stocks like facebook when the stock is consolidating in sideways fashion. Coming up, the Hedge Fund Manager who has just bid a cool million bucks that bitcoin will rise you wont want to miss that. Energy stocks leading the market today are any of the traders buying this move . Well find out later, tim has the hot hand. Were talking about a pitch out of the park. Now hes doubling down on one stock thats already up, 80 this year. The name when fast money rerntus. For your heart. Your joints. Or your digestion. So why wouldnt you take something for the most important part of you. Your brain. With an ingredient originally found in jellyfish, prevagen is now the number one selling brain Health Supplement in drug stores nationwide. Prevagen. The name to remember. Wifiso if you cant live without it. T it. Why arent you using this guy . It makes your wifi awesomely fast. No. Still nope. Now were talking it gets you wifi here, here, and here. It even lets you take a time out. No no yes yes, indeed. Amazing speed, coverage and control. All with an xfi gateway. Find your awesome, and change the way you wifi. Welcome back to fast money. Energy stocks leadingette market today. The xle rallying up more than 5 this month this as crude oil has surged more than 2 today, hitting a high of 60 a barrel, the highest level since june of 2015 is energy setting up for a 2018 rally . Weve seen one already the 2017 rally. This isnt about saying who is right or whos wrong what im saying about energy is so many people avoided this for a lot of Different Reasons, which included i dont need to own it, ive been hurt before, blah, blah, blah you saw this with a couple of key names, especially anadarko, late summer, they started giving money back to investors, they started investing for equity shareholders, not debt shareholders that changed the tone. Midstream right now looks very interesting. Oil services and midstream looking the most interesting this is storage, transportation, pipelines, mlps. These are the names to me that are trading at massive discounts relative to their histories. This is the time to buy them mr. Technician here the underlying commodity looks good thats not the problem with energy you have a bullish multiyear base of support. Youve touched 60 today for the first time in two years. You take out that 200week moving average, for the first time in three years. Crude, if it were a stock, you would buy it Oil Field Services are down 20 , seen s p energy down 3 . The strongest names have been integrateds, refiners. You keep buying those. E p, you like those. Oil field services, halliburton, thats a group that still has some wood to chop here it should come around. A lot of things should happen. You guys are all bullish. How much does this have to do with positioning when people came in bullish this year and pretty bearish on oil in general . Its totally about fundamentals some of it is positioning, because people have been so negative think about where weve gone, where inventories have gone. Weve gone into possibly weve at least taken out the massive supply the sector being underowned, does that super charge what exists in terms of the fundamental story . Does that work here . More people will have to push into it. Yes but i think we now need to look across the entire space. If you want to look at resources, commodities, its not just oil thats doing this copper is at 3 1 2 year highs. People have to believe this isnt just about a weaker dollar or just a supply story that suddenly changed you have a demand side of the equation you have a lack of investment, a lack of a path of investment in all these sectors, which means its putting upward pressure on spot do you think the weaker dollar is going to be sideways this year then you stay with these trades. To get a trade out of it, you can get that based on sentiment and positioning. It gets washed out, you get a nice yearend surge. To get the big long only money involved, to make energy overweight again, youll need to see fundamentals come through. Weve seen signs of it but youll need so tea people put billions behind it i like what we see into the new year rich is a bridge builder, bridging the divide. I will just tell you guys, when i look at this crude chart for the last 20 months or so, its traded at 40 to the downside, now getting back to 60, that looks like the best trade in the space it looks like its poised for an epic breakout. How do you play that in the equity market, tim i would go eog, cbx, and an apache those are great. Retail seeing its best Holiday Season in years. That has a number of names surging. Should you trust the retail resurgery he is nore sur resurgery resurgence . Ill explain wondering how high bitcoin can go one Hedge Fund Manager is betting it could hit 50,000 next year. Hell be here to tell us why plus tim is bringing the heat, pitching one stock thats up 80 this year he says it has even more room to run, when fast money returns across web and tablet . Do you want 4. 95 commissions for stocks, 0. 50 options contracts . 1. 50 futures contracts . What about a dedicated service team of trading specialists . Did you say yes . Good, then its time for power e trade. The platform, price and service that gives you the edge you need. Looks like we have a couple seconds left. Lets do some card twirling twirling cards e trade. The original place to invest online. I used to have more hair. I used to have more color. And. I used to have cancer. I beat it. I did. Not alone. I used to have no idea what the American Cancer Society did. Research . Yeah. But also free rides to chemo and free lodging near hospitals. I used to maybe give a little. Then i got so much back. I used to have cancer. Call 18004944357 today. Your contributions to the American Cancer Society fund valuable research. But thats just the beginning. A cancer diagnosis can kick off years of challenge. And thats where your donation truly shines. You help us fund free rides to treatment. A live 24 7 help line, free lodging near treatment centers. And even efforts to expand access to insurance. So, please donate today at cancer. Org and help attack cancer from every angle. Welcome back to fast money. It was another wild, wild weekend for bitcoin, with the cryptocurrency seeing huge swings over the last few days. If today is an indication, the bitcoin boom is still very much intact seema mody is breaking it down reporter melissa, after losing one fourth its value last week, it rebounded over the weekend although still trading below its recent peak of 20,000. There are concerns that coinbase is experiencing a backlog of outgoing transactions for bitcoin and ether. Despite the recent volatility in those concerns around coinbase, bitcoin still up over 1500 this year and its market cap has risen over 250 billion. As trading operators launch new bitcoin products, a broader range of investors are showing interest in bitcoin. And per google trends, interest has been rising throughout the year in nations like south africa and australia melissa, back to you seema, thanks so much dan, youve dabbled in this. Coinbase probably 50 times this weekend we had that massive 30 selloff in just a couple of days the fact that its found a level and stabilized is really important. We were talking about what Mike Novogratz was saying is it really stabilized or stabilized for bitcoin it found a home, its not moving it bounced back. 50 move to me in a week is not stabilized had of when we talk about this theme about bitcoin, what gets missed in all of this, in looking at the value of it, is retailers. Imagine a retailer accepting a bitcoin and its up 30 or down 40 the next day when you talk about the adoption, you have to put no ones really talking about it as a currency right now theres no argument for currency to be made at the moment even as a stored value, if its fluctuating, what retailer in their right mind will accept this no retailer bitcoin has been around for ten years and it hasnt necessarily been a solution on payments, right . Granted, some of this is adoption, a lot of this is what gene is talking about. But ultimately this is a new asset class. Theres a lot of Different Reasons people believe in it without get to go the theting t people believe there is a limited amount of supply bitcoin is one of the ones where people can rattle off how many coins are out there, blah, blah, blah the relaality is this is what people are investing in. People are investing in it today. But wait until you have a pullback im not suggesting this is not the future of value transfer i believe in it. But i think that this is a bubble, and i think that as soon as it starts the momentum starts to go the other way, the searches on google will continue to skyrocket but its going to be about people trying to get out. Despite bitcoins massive move, our next guest says it could search as high as 50,000 by the end of 2018 ari paul joins now from stamford, connecticut. Thanks for being with us thank you for having me when did you place this bet it was a little over a week ago. Frankly, i think its not quite as interesting as people make it out to be. It was 50,000 strike calls that expire end of next year, december of 2018 and as anyone who is familiar with options, buying an out of the money call is not a bet that something will happen. Its a bet that something could happen youre getting good odds and it gives you a chance to participate with minimum risk. If bitcoin does not hit 50,000 bit end of the year, this is worthless, but if bitcoin rises above, then you have the right to buy a certain number of bitcoin at a certain price . Correct this call costs 3600. If bitcoin settles anywhere below 50,000 next year, it will expire worthless but if bitcoin goes to 100,000, it pays 30 to 1. Its bet, to use option jargon, on fat tails this is a hypervolatile asset. Bitcoin is up more than 1400 this year, as you noted earlier. It falls 30 every other month its a hypervolatile asset these calls are a bet that if its volatile to the upside, we could easily see 50,000 next year for the viewer, its important to remember that this is not a High Conviction bet when you say youre adding leverage to an already pretty convictive near the money bet. Explain that, its like a lotto ticket on something youre already convicted on when you have near the money participation. Thats interesting. I wouldnt recommend for most people to buy these options. For me its the opposite of that for an individual, buying bitcoin is kind of like owning a call an individual a year ago risks 900 that was their maximum risk. They ended up making, you know, well over 15 times their money so it acted like a call. And i actually think that bitcoin still remains a call today youre risking 15,000. Over the next few years it could well be 50,000 or 100,000. Not saying it will, but it could. I manage a cryptocurrency portfolio and im trying to give investors access to the upside im also focused on Risk Management these calls are a way for me to capture that upside exposure while actually owning less bitcoin. These calls let me capture upside while reducing my downside risk. You purchase these calls on ledger apps . Thats right. There are a lot of crypto Hedge Fund Managers probably looking to do the same thing and hedge their portfolio. What sort of effect longer term do you see as more liquidity in options comes about for bitcoin . So liquidity, as we know, is very powerful. Theres a massive liquidity discount for many assets, when a stock gets added to the s p 500, it tends to rally. Bitcoin was trading about a billion dollars day a globally just five months ago now were seeing 14 billion a day. This is just the beginning, cboe and cme futures just launched, ledger options just launched, Exchange Traded notes are coming outside of woodwork all over the world. Does this dampen the volatility at all . Whats the longer term impact . Very short term, my guess is that it will dampen the volatility as you have more Market Makers. Right now theres very Little Market making. Most people are momentum traders on this. As Market Makers come in, it will dampen the short term volatility but i dont think it will dampen the month to month or year to year volatility there is no clear intrinsic value. Not to say there is no value, i think theres tremendous value, but theres no set number at which Warren Buffett comes in and starts buying a ton or starts liquidating this is rich ross here. I applaud your moxie here, this is sort of the texas hedge, your long crypto and long calls to manage your risk other than that, in terms of defining that risk, how are you hedging this extremely volatile underlying asset other than buying those big upside calls . So the calls let me have lower data im able to own less cryptocurrency as a whole while providing my investors with that optionality, with that payoff if bitcoin goes to 100,000 but if bitcoin falls by 80 , get to lose less because i own less cryptocurrency these calls give me access to the upside with less exposure. Investors with us specifically are trying to take this bet. They want exposure to cryptocurrency and theyre deciding how much risk they want to take. Theyre deciding if thats 2 of the portfolio or 10 or 20 . My mandate is to capture the short term alpha in this market and provide some exposure to the upside last question, ari. 50,000 by the end of next year, if thats not your call, what is your call for bitcoin . And whats your favorite cryptocurrency at this point in terms of upside . My call is for extreme volatility with upside potential, which was what makes a very attractive call in terms of favorite cryptocurrency, its hard to pick one but one that i think has very real fundamental value is manero, a privacy focused cryptocurrency with strong engineering. Isnt that the one used by criminals . Everything is used by criminals, including the u. S. Dollar and the euro. Thats true thank you for joining us, ari paul, fascinating stuff. This is right up your alley, dan. Hopefully well be doing it on options action. When you think about a 3600 call one year out on a 50,000 strike, that is still 7 of the 50,000 strike. The probability of making money on that is very low, okay . So to me, i think theres a lot of people who own this volatile cryptocurrency who would rather sell those calls to actually take in some premium against this volatile asset. One other sellry poi rsummar. He talked about the reason he put this trade on is because of the volatility this isnt necessarily a bullish statement about near term crypto, im a believer long term, but this is a bullish statement on volatility. Ultimately, what i think ari is doing is trying to employ a number of Risk Management methods or Portfolio Management techniques right that ultimately is the question i have for anybody thats managing a fund in crypto whats the skill set, whats the track record that either entitles you or gives you an edge in the space. Thats what were all about to learn. Ahead, Retail Stocks on fire after holiday sales. Some of these names may have run too far, too fast. Well break it down. Tims had the hot hand one of his recent fast pitch ideas surging more than 25 . Can he do it again stick around to find out much more fast money after this daniel jacob for every hour that youre idling in your car, youre sending about half a gallon of gasoline up in the air. That amounts to about 10 pounds of Carbon Dioxide every week. malo hutson growth is good, but when it starts impacting our quality of air and quality of life, thats a problem. So forwardthinking cities like sacramento are investing in streets that are smarter and greener. The solution was right under our feet. Asphalt. Or to be more precise, intelligent asphalt. By embedding sensors into the pavement, as well as installing cameras on traffic lights, we will be able to analyze the flow of traffic. Then that data runs across our network, and we use it to optimize the timing of lights, so that travel times are shorter. Who knew asphalt could help save the environment . Welcome back to fast money. Retailers are feeling the christmas cheer this year with Holiday Spending hitting a new record high. Kate rogers is live in the thick of it at one of our nations largest shopping malls, hi, kate reporter melissa, good to see you. Well kick it off with amazon, saying it had its biggest and best Holiday Season ever they said customers bought tens of millions of alexaenabled devices around the globe more than 4 Million People trialed their Amazon Prime Subscription Service we also got new data from mastercard out this morning. They said that overall, sales from november 1st through Christmas Eve grew by 5 that is the best case since 2011 ecommerce sales grew 18 during that same time period. And to dig into those numbers a little more, Electronics Grew 7. 5 thats the best case in ten years. Jewelry grew by more than 6 Home Improvement and items for the home, that grew by around 5 this Holiday Season. And overall, the nrf says sales were set to grow by around 4 up from last year to a total on the high end of 682 billion adobe says that ecommerce sales accounted for about 100 billion or so of that. If you take a look at the retailers today, the standouts with jcpenney, macys, and kohls, closing higher 5 on the day. Thank you, kate rogers at the mall tim, what are your picks, holdings, macys is doing quite well macys is fantastic the story is not only where expectations and perceptions were, but theyre running the inventory in a very different way. I think theyve taken advantage of some opportunities in their Capital Markets to improve their Balance Sheets to me, people made a big deal out of saying, they always do this this time of year they dont always do this. Xrt has traded lower three of the last four years, essentially from black friday through the end of the First Quarter or when they announced Fourth Quarter eps. Again, i think this is a trade, you stay in a lot of these names. Having said all that, these guys dont necessarily get back to the former multiple until we see a very different game and you can take some profits here did you say xrt was the worst chart in the world a couple of times . I was wrong a lot of these retailers were at the lows in the summer, i thought it got way overdone, but i got off that trade a little too early, september, october, Something Like that. Ill just say this we had very easy comparison year over year. We had very poor sentiment we know a lot of these Balance Sheets were impaired maybe they did better with inventory. Its a less Promotional PeriodConsumer Confidence is better. Ive said it a couple of times over the last few months, these stocks, well see amazon this is a tax bill that will totally help most of these guys are paying effective tax rates of 39 these were all things beating these guys over the head a year ago. Im a tech guy. When i hear people getting interested in traditional brick and mortar retail, i want to add perspective, because tech is the future in the next year, my prediction is target gets acquired by amazon by amazon by amazon and it really kind of puts together this duopoly of walmart versus amazon. When i look at that 5 growth for traditional retailers, amazon is going to be at 26 you can talk about the Little Things i will add just one little teaser in terms of how ecommerce is going to evolve, how the pace of ecustomecommer increase its nice to have the one and twohour delivery from amazon, but certain people will need more youll start to see the Human Element that Ecommerce Companies will adopt which is why they go to target why amazon to target amazon target adds an important demographic. Theyll take that, similar to whole foods, and morph that to Online Amazon is probably not going to be an enjoy customer but all ecommerce can be powered by a more personalized service. Im negative on traditional brook and mortar youve said this could be the time for retail, and i would agree with that, the ducks are getting in a row here. However, from a technical standpoint in many places, it might be the time but its not the chase. Theres charts i would focus on. Look at kohls, a 62 surge, just like we saw 2016 going into 2017 that was the top, the best time to sell it dont chase kohls here, this is not the place to do it next we have foot locker, okay 72 surge from the low what have we done . Resistance to the 200day moving average. Please dont chase foot locker here dan, weve got something combs, something blue, Something Borrowed on the short side, and something tiffany. A beautiful breakout this is a stock that could trade 135. Within retail you still have to be discretion ary. No way this administration lets amazon the Washington Post buy target i think alibaba should buy target if they want to enter the u. S. Retail matter the same reason they bought whole foods. Doesnt the amazon multiple have to be brick and mortar multipled even a little bit . No. If one of the reasons they can continue to fuel this low Market Growth a couple of things. Lets be clear about this. Tiffany is a takeover target these guys get a lot of benefit from the dollar and from taxes but again, talking about retail now, people are getting fired up after 20, 30 moves, is what were saying on the desk you have to be careful on a lot of these names ahead, elon musk taking to twitter about his next big idea, a pickup truck is it about to pick up the stock price . Plus tim is warming up to pitch a stock hes calling a screaming buy. Its already up 80 in 2017. Find out what when he delivers his fast pitch shes nationally recognized for her compassion and care. He spent decades fighting to give families a second chance. But to help others, they first had to protect themselves. I have afib. Even for a nurse, its complicated. And it puts me at higher risk of stroke. That would be devastating. I had to learn all i could to help protect myself. Once i got the facts, my doctor and i chose xarelto®. Xarelto®. To help keep me protected. Oncedaily xarelto®, a latestgeneration blood thinner. Significantly lowers the risk of stroke in people with afib not caused by a heart valve problem. It has similar effectiveness to warfarin. Xarelto® works differently. Warfarin interferes with at least 6 bloodclotting factors. Xarelto® is selective, targeting just one critical factor interacting with less of your bodys natural bloodclotting function. For afib patients wellmanaged on warfarin, there is limited information on how xarelto® compares in reducing the risk of stroke. Dont stop taking xarelto® without talking to your doctor, as this may increase risk of stroke. While taking, you may bruise more easily, or take longer for bleeding to stop. It may increase your risk of bleeding if you take certain medicines. Xarelto® can cause serious, and in rare cases, fatal bleeding. Get help right away for unexpected bleeding, unusual bruising, or tingling. If youve had spinal anesthesia, watch for back pain or any nerve or musclerelated signs or symptoms. Do not take xarelto® if you have an artificial heart valve or abnormal bleeding. Tell your doctor before all planned medical or dental procedures. And before starting xarelto®about any conditions, such as kidney, liver, or bleeding problems. Its important to learn all you can. To help protect yourself from a stroke. Talk to your doctor about xarelto®. Theres more to know™. Welcome back to fast money. Just one month ago, tim stepped up to the plate to pitch u. S. Steel. I want to draw a trend. Because you can make an argument that this trend has been impact the entire time. As sloppy as that line looks, the bottom line is weve challenged a lot of directional in here. Its held above the 200. Its held above the 100. This is a channel thats very interesting. Go buy this now. Nice charting, tim. Despite his charting, the up trend has stayed intact. The stock has gone down 24 since then dan and i had a combat that night, he was right, the stock needed to get above the trend line and my line was sloppy enough to hide it all. The bottom line is ive stayed long in u. S. Steel if you look at where steel demand is, the fact that were preventing a lot of dumping in this country this is a poster child for what trump is trying to do. On valuation and cash deals is why i own it, not because im expecting anything else. Head over to the plasma and give us your next pitch. U. S. Still was a stock that was down im talking about melco. This is a stock thats had a huge run and has a lot more to go heres why the vip and premium trends in the sector are going higher. We know whats going on in vegas. Most people are trying to get exposure to macaw. Theyre probably 70 macau in wynn despite what people think about big brother in china, i think weve gotten a lot of the macro issues final, the discount to the other plays that i think people are very comfortable playing is massive. A discount to wynn in las vegas is something that ultimately is exactly what we want to do and something we want to follow. If i look at this chart, this is where you should have concern, if anything. This is an 85 move. That is not necessarily where i care about the chart i care when i look back kind of to where we were in 2015 and back through the peak days of all the gamers in asia this is a stock that has a lot of room to run but on multiple its a stock you can stay very long with a lot of momentum behind it. Tim, sales are supposed to decelerate next year obviously this is a story, the company is very levered. Is there something going on here like have you gotten the move . Not too dissimilar with what we were talking about with a lot of these retailers that look like they may be overshot to the downside, now theyve had peak sales. No, their Balance Sheet gets better they just completed capex on a tower project next to their casino in macau. I like sales growth in 2018. Time is to vote are you buying tims pitch on a Melco Resorts . A for the pick. You want to be a buyer of melco. Gene . Im also a buyer, you had me at best way to play macau, i love that place. Im a buyer also. Tim is technically so bad, but his fundamentals are fantastic fair. Technically so bad. Fair. Ouch. Did tims pitch make you want to take a gamble on the stock vote right now on our poll at cnbcfastmoney on twitter elon musk is hinting a new idea is in the pelipine. Stick around to see if our traders think the stock is a buy. Tesla ceo elon musk saying hes dying to make a pickup truck. Shares are down nearly 10 percent in just the past three months the pickup truck would come after the model y which would be a crossover what do you think, gene . This is a big deal. It adds 15 to the Addressable Market for tesla more important, this shows how well positioned the company is to the next transition to ev i cant stress this enough, the big bear case on tesla right now is production. This manufacturing hell theyre going through. When theyre talking about doing the truck, what hes saying is i need to figure out the manufacturing issues and then well get to the pickup truck. Ima i just want to point out that anybody who is bearish on tesla, Car Manufacturers will are to go through the same sea change. Except they have to find a place to produce these new vehicles they dont have the Production Capacity currently to add a y and a pickup truck meantime theyre burning cash. As far asthe production ability, they have enough production space right now to manufacture essentially a million cars a year. So they did about 50,000 last year they can ramp this and get investors more calm. As far as the cash is concerned, as long as they keep positioning themselves for ev and autonomy, investors are going to back them theyre not going to have a problem. Its going to be a great story as people get pins and needles about it im a big believer in tesla. I think the story has a lot of upside whats with the stock recently recently the stock has done a whole lot of nothing, recently being the last seven or eight months it hasnt been a great year. It hasnt been a disaster either absent a break below the high end of that range. On the pullback, lets call it 280. The dow around 318 you can use a 280 stop, not super tight for traders, but the charts not broken if anything its a continuation pattern, a countertrend channel, and the stock can move higher. One tesla trader is betting on a come back break it down. I think its really important to remember this stock subpoena 50 . Its actually been really good, down about 17, 18 from its 52week high call volume was two times puts the activity looked like 4 or 5,000 of the january 330, 345 call spreads were bought for close to 4 bucks not a great risk reward. Whats next . Earnings are not until february but we know well get deliverie next week. This is a new long position for that if we look at the chart, 300 is the level it just bounced off of ill warn people about that number, that important number that dan talked about that comes out next week. People will focus on model 3 i wouldnt be surprised if theres a miss on that number. I dont think that changes the trajectory options action,ul fl show on friday afternoon at 5 30 eastern time see thats funny, i thought you traded options. Im not really a wall street guy. Whats the hesitation . Eh, it just feels too complicated, you know . Well sure, at first, but jj can help you with that. Jj, will you break it down for this gentleman . Hey, ian. You know, at Td Ameritrade, we can walk you through your options trades step by step until youre comfortable. I could be up for that. Thats taking options trading from wall st. To main st. Hey guys, wanna play some pool . Eh, im not really a pool guy. Whats the hesitation . Its just complicated. Stepbystep options trading support from Td Ameritrade directv has been rated number one in Customer Satisfaction over cable for 17 years running. But some people still like cable. Just like some people like preshaken sodas. Having their seat kicked on an airplane. Being rammed by a shopping cart. Sitting in gum. And walking into a glass door. But for everyone else, theres directv. For 1 rated Customer Satisfaction over cable, switch to directv and for a limited time get a 100 reward card. Call 1800directv. Your bbut as you get older,ing. 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Theres always a bull market somewhere and i promise to help you find it. Mad money starts now hey, im cramer welcome to mad money. Welcome to cray america. Other people want to make friends, im just trying to make you some money my job is not just to entertain but educate and teach. Call me or tweet me. Every night i come out here and tell you what happened during the day, why it happened and what you can do with the information