Bull on wall street. Well tell you who sees another 20 upside for this rip roaring stock. Later, it was one of the best performing sectors of 2019 we have the one chart that shows the biotech boom may just be getting started. We will bring it to you. We kick things off with a record start to 2020. The s p, the dow, and nasdaq all, all, closing at all time highs. Just investors keep riding this record wave or is it time for a new strategy for a new year . Steve grasso can we sit tight and be happy . All traders are not back, this is still a holiday week think about what worked last year thats what worked today tech industrials are ripping today. Communications ripping today so i do think you can sit back, but beware of a selloff q1 does that sound a little ironic the way i say that but yes, you do have an opportunity to buy a dip in q1 last time i was here you were saying the same thing, beware the ides of march of true. Its not healthy to have apple double dip performance it probably doesnt get much better than that that contention centration of m. What did the s p 500 do in the last hour . It kind of dragged up. That performance reminds me about what worked in late december 2017 into 2018 and we had the s p 500, we had a nasdaq up 8 as we headed into the bulk of q4 earnings in january. These setups are treacherous in a lot of ways for a lot of investors. If you didnt do a whole lot in a year by last year to reduce your risk, youre going to start thinking about it now. To steves point, if everything works until we have a reason to sell, its kind of hard to get out of the way in the meantime away climbed a wall of worry, karen, in 2019, that was basically defined by trade it now looks like there has been a breakthrough on trade. Maybe that wall of worry is still there but maybe its not as steep as it was we have a supposed date for a signing of the first of the phase i, whichever that is i dont even know whats in it im not that impressed its a secret deal, very secret. We may never know whats in it im a little skeptical on that clearly if there were trubloubls there and that didnt happen, we would see a big whoosh down in the market when apple is up on no news that we saw today, worth however many billion dollars more, thats scary to me. I do own it, im nervous about it, because when you have a big runup into earnings that bar is higher and higher. If they keep running up like this, and have a blowout quarter, it may not be enough to sustain where it is now. I hate when the market is like this you might see a little bit of a multiple expansion with apple. Weve seen a multiple expansion. I totally get everything that would worry you and dan said it too in the past, it is still a Hardware Company but when you look at services and that number at 46 billion, when you look at streaming and Everything Else that seems to be clicking, that to me means further multiple expansion i wouldnt be nervous about it we saved the guest for last i think i agree, today is kind of a vacation day its a pseudo vacation day most people arent sitting at their desks. The traffic is great coming in exactly, thats the tell, nobodys here in midtown trading. And i think that the moment of reckoning comes next week. And our model, so we track a variety of predictive signals, and our best short term predictive signal is earnings revisions which are more downward than upward over the last 30 days thats trending way below average, which is never a good sign for the next couple of months performance. I think well see an up year again. Nothing like last year it would be too much to expect that you would have a year like this year. I think that would be kind of i mean, i dont know what gets us there. Maybe if Interest Rates go to zero or negative and there is literally no place to go except the s p 500, maybe we get another blockbuster year but i think the First Quarter will be a little messier i guess i remember, was it 07, 08, two big back to back years . 07 karen made a good point, piggybacking on what savrita just said. If youre a management of a company and you realize that your stock price dramatically benefitted from multiple expansion, youre likely to be a bit more conservative than you would be otherwise, because the pain that you will feel if you get that wrong, right, if you actually give overly aggressive guidance and then not only do you miss but you have to guide down again for the full year, thats how stocks get put in penalty boxes. So i just think the idea of conservative guidance for at least the first half of 2020, especially as we dont know what is in that trade deal and when phase ii comes, that will continue to be a headwind, at least on management, how they think about capex. I said 07, 08 im older than i thought i was thinking 97, 98. Those were big back to back years. 98, the russian debt crisis happened in august those were big years were talking earnings here on that note, earnings could be a big x factor that pours cold water on the record rally, or not. Bob pisani is at the New York Stock Exchange with some thinking on that reporter hello, tyler, good to see you what a difference a year makes on january 1 last year, the markets were pricing in a recession and stocks were pretty cheap. Fast forward one year, essentially the opposite, the recession of course didnt happen, the earnings recession didnt happen either the economy is strong. But stocks have gotten rather expensive, 18 times forward earnings, a little pricey. The issue is whether we can finally return to Earnings Growth after an essentially flat year in 2019 most strategists are expecting mid to single high digi Earnings Growth, taking some pressure off the market right now. Early reports from Companies Reporting at the end of november are kind of mixed. There were big names out there fedex, nike, micron, general mills, carnival, they all saw their First Quarter earnings estimates reduced by analysts after those reports. A few like auto zone and costco are seeing some earnings estimates increase the overall trend, she pointed this out, shes right, somewhat lower than expected for Earnings Growth looking at the risks in 2020, markets are at new highs because many believe the risks from trade and tariffs is lower thats a big factor. Second, the risk from the fed raising rates also lower as they will likely remain neutral decent job growth, risks from the u. S. Consumer lower. Theres risks elsewhere. Buybacks, corporations have been buying back stock for ten years. There may be a limit how far that can keep growing. I find high risk a little bit believe its unlikely 2019 will be a bottom in the global economy. Nothings changed in europe with very few structural reforms. Another issue showing up a lot among strategists with wage growth many believe wages will likely be higher in years to come, putting some pressure on margins, tyler, not out of the woods yet. Dan, do you agree with what bob just laid out, more moderate Earnings Growth this years, moderate, not more moderate, but moderate Earnings Growth, and some of the threats that he sees i think he actually threaded the needle pretty well there we know we had the benefit of the tax cuts kind of you know, we know what global trade, what tariffs did to that if we had moderate or low interest growth and a lot of headwinds hanging around the rim, thats where you get to savritas scenario where you have an up year, single digits, then youre playing for 2021, a new administration or a continuation of the existing policy but more clarity. To me, i think youre going to have all of those uncertainties sticking around. Youll have much more moderated equity gains if you do have equity gains this year and i dont like to see them front loaded in january. That doesnt set up right. You have the uncertainty, thats what makes the market go higher once you have some of this smoke clear, that is a sellthenews opportunity. For me, thats why it was genius to roll out trade in phases. It keeps the bears back on their heels. You want to know something really weird about 2019 . Even though trade was the big negative over the world at large, the best set of stocks in the s p 500 were the stocks with the highest foreign explore. The best sector was technology, in the crosshairs of the trade war were supposed to be having. I dont think 2019 saw the reaction to trade. I think we faded that and tech stocks ripped. Let me try to understand what youre saying, the fact that trade deals may be phased in over three stages or however many stages there could possibly be right you dont think that was calculated to help the market, do you why wouldnt it be . I dont know if it was or it wasnt but it has, because for all of us at this table in other words, youve still got the worry of the term of sell the news, buy the rumor, sell the news, exists for a reason. Once you get a, quote unquote, trade deal, i think its a super signal to be a seller of the market yes versus me being caught on my heels. If you have phases of a deal, you always have something to worry about. So the longer people climb the wall of worry, the higher the markets go, because you have people saying short it, then have to scramble for cover once things come out that are more positive so savita, let me come back to a point you made a moment ago, the idea that earnings revisions are coming down, more negative revision. Yes it was like you and bob pisani had just talked to one another. Maybe we have maybe you have. They dont call you savvy for nothing. There he goes a long list of those affected negatively right this is kind of a standard setup, everyone kind of guides down on pretty aggressive earnings the street right now is forecasting 10 Earnings Growth for 2020 i think that i think we can get to 8 but maybe not 10 . I think where the street is overly optimistic is on buybacks, because and bob mentioned this as well, but i think that the street is forecasting run rate buybacks similar to what we saw in 2019, which was a record year for share buybacks and i dont think we see that again. Why not for a bunch of reasons. The most important of which is that investors dont Want Companies to buy back their stock anymore. So in our fund manager survey why is that because Balance Sheets show levels close to 2007 levels, close to 2000 levels theyre close to market peak levels we dont need any more reduction, we need companies to pay down debt rather than buy back shares. Share buybacks havent been generating alpha those stocks didnt outperform the market if companies are continuing to do this, theyrecontinuing to spend capital on buying back shares and juicing up their per share metrics which in a way is lining their own pockets, i do think that the market is looking less favorably at that aspect, especially given how high leverage ratios have grown for certain areas. Buybacks and earnings are two things that may not live up to wall streets expectations this year what else is out there lets break out our 2020 contrarian playbook. You just looked right into it for one of those right there steve, kick us off i think the element of a new year, lets buy the laggards, lets buy the things that havent performed. What hasnt performed . Energy hasnt performed in the last ten years, last five years. But you do get these tradeable spots. Xec, rig, wpx. You can buy them, but theyre simply just trades these stocks, rig and wpx, have been up 30, 35 in the last month or so. Thats a trade, not a long Term Investment i dont think that energy will lead this year it will continue to be a laggard. Sort of a suckers contrarian draws you in, great for a trade, but most of the people who buy energy buy it for a long Term Investment, those people who bought mobile or exxon chevrons of the world. Karen, when you say abroad is where we might well go yeah, i think the u. S. Has been the best place to be by a lot, when you look at the different metrics, whether its emerging markets or well, china is considered an emerging market for example, the uk, we could see some clarity we will see some more clarity on brexit in pretty short order almost regardless of how it ends up, i think clarity is important. And that will help the uk has been sort of sideways for a while. Thats a huge economy. That would be someplace that could outperform japan could be another market that would outperform. So i feel like we have had a really, really good run here and i would rather be looking elsewhere, even if its higher on the risk curve. You say 5g was and you were right, 9798 you stepped all over my thing here wall street loves to sell people buzzwords and 5g has been around for a long time. You remember when 2g was going to be the big thing, then 3g, then 4g. They always take longer than expected whats interesting about 5g, if youre expecting a handset upgrade super cycle because that have, i wouldnt be betting on it we just talked about apple, up 85 last year on earnings and sales growth that were flat year over year from the prior year. Its incorporating a lot of excitement about a 5g phone at the end of 2020. I dont think that will be a big driver for a company that has not grown iphone units for three years. I think about that, i also think about semiconductors i think obviously that has been the play, and the track is up 2. 5 on 5g an important fact, lets bring in the trade thing here. Huawei just introduced a phone, an iphone competitor, its called the mate in china it does not have a single u. S. Chip in it as long as our trade war goes on, the likelihood that we might sought some double ordering last year into 5g handsets into china could be a thing we could see a slowdown if we dont see demand for u. S. 5g phones i just dont think its all going to happen the way people think it is. I wouldnt be buying semis and apple for a 5g rollout by the end of the year. The carriers, especially in the u. S. , theyre really bad at this stuff. We have 4ge, we have 5ge for evolution. Theyre not going to be there yet. This is not a reason to upgrade your 1,000 handset. Did any of you all notice that Ryan Seacrest is still out there . Its so cold. Greatest story ever told. Unbelievable coming up, our call of the day. Why one Analyst Thinks tesla, even after its recent run, has almost 20 upside from here. And later, shares of chinas jd. Com soaring why one trader says this rally is just getting started. Ryan seacrest is down there. Carson daly is coming. Theres much more fafast money after this announcer this cnbc program is sponsored by ibm. Lets put smart to work. Mmm. Good. So ive spent my life developing technology to help the visually impaired. We are so good. We built a guide that uses ibm watson. To help the blind. It is already working in cities like tokyo. My dream is to help millions more people like me. Announcer which Popular Companies coul what are you doing back there, junior . Since were obviously lost, im rescheduling my Xfinity Customer Service appointment. Ah, relax. I got this. Which gps are you using anyway . A Little Something called instinct. Been using it for years. Yeah, thats what im afraid of. He knows exactly where were going. My whole body is a compass. Oh boy. The my account app makes todays Xfinity Customer Service simple, easy, awesome. Not my thing. Welcome back to fast money, everybody. A news alert on the Pharma Company incite meg tirrell has more reporter were seeing incyte move to the downside a trial failed to meet its primary goal the disease is essentially an immune reaction that can happen after a stem cell reaction youre seeing incyte down 10 , quite a sizable move on this, unfortunately disappointing news meg tirrell, thanks very much well talk more about biotech in the hour switching gears, shares of tesla revving higher today after the company says its gearing up for the year the rush to electric vehicles is being predicted to push teslas stock price to the highest target on the street we just heard from the analyst behind that big call here is how he justified the 515 target. If we look at the momentum coming into this year we see several positive factors we frankly didnt have last year. When we look at that and we kind of add up what theyre going to be introducing, and the fact that many of the bear signals are not there this year, thats really what gives us our bullish stance karen, what should i do with tesla, buy it, hold it, what i dont know. Its been too volatile i read his piece hes very optimistic on the top line, way above the street on Revenue Growth he really believes the evolution of the story the thing that is working well in tesla to me is the part of tesla that bears loved was theyre going to need to raise more money with the stock up here, not only could they raise more money in the equity market but theyre convertible debt will convert to equity that wont be debt anymore theres selffulfilling virtues cycle, as the stock goes up, those issues fade. If one of the bears legs is pulled out from under them, i dont know, what do you do with a onelegged bear, i dont know. When you look at a level, dan and i saw the same level back from 2016 to 2019, around the 176, 185 level, where you could play for a technical bounce. What i love about the stock is on an rsi, relative strength index, it does work off overbought pretty quickly. It took 9 , and thats nothing in this stock, for it to unwind on overbought status and ramp right back up again. Its currently overbought. Maybe it does pull back a little some technical overshoot levels in this name bring you up to these price targets. Its not unreasonable to think if the company doesnt have a debt issue as karen alluded to in the beginning that you can see some of these really high, lofty prices its always perplexed me that in the field of electric vehicles, it seems like it is tesla and almost nobody else but i keep hearing that others are in the game. They are, theyre going to be listen, you have to go back to this these guys will maybe sell 380,000 cars this year in the u. S. , the average selling price of a car is like 35,000 the next leg of growth for them is in china. The average price is 15,000, okay i have a deposit down on a ford mustang mach e that will be delivered in the fourth quarter. Thats excitement. They havent had a lot of competition, its a new sort of thing. At the end of the day, it has a 77 million market cap, basically equal to ford and gm, who sell 270 billion worth of card, thats 10x of what tesla is supposed to do this year. You talk about that Balance Sheet, theyre a recession away from not selling cars on the average selling price of well over what they are here in the u. S. And all around the older. And then that Balance Sheet comes into question. To me, ive been wrong for probably since 180, not since 180 but for a long time, steve its a tough stock to buy. If youre buying it for 420 for 520 at this point, a lot of the good news is in it for more on that bullish call on tesla, head to our website, cnbc. Com heres what else we have coming up on fast. Announcer chinese regulators making a surprise move that sent shares soaring overseas. How the decision will shape Investment Opportunities in the region this year plus flying high the call thats got investors in United Airlines setting pretty today. All thatndorwh st moy returns sounds like we havd society. But nothing could be further from the truth. Americans are compassionate and hardworking. We arent failing. Our politicians are failing. Thats why im running for president. To end the corporate takeover of the government. And give more power to the american people. Thats how well win healthcare, fair wages, and clean air and water as a right. Im tom steyer and i approve this message. Through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From finding out whats selling best. To managing your fleet. To collaborating remotely with your teams. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. Welcome back to fast money. Wall street closing at new all time highs today thanks in part to a big rally overnight in china. The shanghai composite, the shenzhen composite, and large cap etf all soaring on this first day of trading thats all the words i got cnbcs beijing correspondent, were happy to have you here, eunice yoon. The China Central bank had decided to cut the amount of money, cash, that banks were required to have on hand by 50 basis points, effectively injecting 110 billion into the chinese Financial System this happened earlier than everyone expected. Everybody was thinking the central bank would make this move it was ahead of the Lunar New Year holiday which normally sees these cash and liquidity injections it was an indication to analysts that were going to see more targeted cuts to come. Then add to that the beijing leadership has been indicating that stabilizing the economy is a major priority for 2020 and a large part of that is because in 2021, there is going to be a big party for the communist party because its the 100th anniversary for the government and at that time, they have promised that the country will have a moderately welloff society. And by that they mean doubling the gdp and per capita gdp from 2010 to 2020 people take that to mean 6 growth for 2020 and making sure the economy will be stable this is a first move of stimulus, more to come, in all hide yes, very much more to come, targeted targeted theyve been doing it for quite some time. Its not a year or two years. This is the eighth time theyve done it. Yes the growth china has is enviable, but when you compare china to itself and see the lowest growth in 30 years, is there any panic that goes on in china . Do they say, how do we keep this train on the tracks . Yes because its just not enough for the world anymore. For years people in china were used to the double digit growth so when it started ticking below double digits there was already some panic now that its gone down to 6 , even though its a big number in most countries, there is concern about what this means. A lot of times is because of the way Chinese Government officials have traditionally been rated and measured by their success for a lot of Different Things including promotions its all on the economic targets and media economic targets the government has been trying to move away from that but its prevalent within the bureaucracy. How big is the trade, we spent months talking about the trade deal, how much is it a topic of conversation in china its a big topic of conversation i dont think its the main reason why the economy is slowing down, but there is concern about what this means. Its been affecting Consumer Sentiment more recently, people would say, oh, i cant find something in the grocery store, so it must be because of the trade war. So there is and especially within the Manufacturing Sector, there is a lot of concern about what this means. Stick around. When we pivot to chinese tech stocks, some of those stocks did very well today. Eunice just said it, there is a move towards consumers it was in alibaba, tencent all names that i think a lot of investors would say without the trade war, they would have been higher year over year, so lets start off the year up 5, 6, 7 that doesnt sound like a great way to start the year. But with that sort of confidence, and eunice mentions the fact that, listen, this is a oneparty system over there. They will do what it takes to keep the train on the tracks, its that simple right it seems like its that fed put we had here from a few years back theyll just keep cutting or doing whatever they have to do you cant argue with it. Its just sort of a gravitational pull upward. But how much of todays move is anticipating the future stimulus rather than what just happened i think a lot of it is having to do with the future stimulus even though its targeted, theres still a debate going on in china as to exactly what that means, because the government understands the overhang and the problems from stimulating too much but at the same time they dont want this train to go off the tracks so thats why people are expecting that one other thing, when everyone says china is in a better position on a negotiating front, china doesnt like to lose when you start to see the supply chains, granted these are long term events that it takes a while to turn the ships around, but whether its incremental or percentagewise or more than enough to move the needle, they dont want to lose that. So they have a vested interest in getting this deal done before they lose an apple, even incremental, or someone else its about 30 or 40 namesthat are starting to do it. There is definitely a concern that theyre going to lose jobs, because jobs are the main priority there for the leadership so they dont want to see the Manufacturing Sector or the supply chain start to leave in any meaningful way that said, in china, u. S. Guys were pointing out, its a oneparty system and so the political factor is also really important. And if the government and president xi in particular decides its just worth the financial and economic pain in order to make a larger point for a long Term Economic future, then theyre just going to go ahead and deal with the pain eunice, its great to have you here in person i love it its cool that theres no transmission delay i know when i talk to you, you answer immediately and i know whos talking to me, i dont hear voices in my head and think, whos talking . Come back and spend lots of time with us, great to see you thank you speaking of china, one big bet is that a chinese internet name could rally 20 mike khouw is in San Francisco with the options action. Reporter we did see above average action in baidu and baba jd saw four times the average daily call volume. The trade that struck out to me was a purchase of the june 42 calls, a single print of 800 of those trading at just under 1. 60, obviously making the bet that jd will go above that strike price by june expiration, an increase in the stock price of at least 18 over the next five months. If we look at the stock price, unlike u. S. Shares, its still well below the multiyear highs it takes a couple of years ago if we look at the options premiums, those are actually approaching multiyear lows the options are cheap. The stock is obviously making a run. This is an intelligent way to make a bullish bet if you think the rally in these shares could continue based on what were hearing. Thanks, mike. For more options action, catch our live show tomorrow at 5 30 p. M. Eastern, ill be here for that so he should be too coming up, biotech stocks are coming off their best year ever and one chart says that could continue into 2020 first, dan nathan takes the mound to pitch his next big idea why he thinks this particular Cloud Company could be ready for a eautbrko well bring that you name when fast money returns turn on my tv and boom, its got all my favorite shows right there. Announcer sponsored by thinkorswim by Td Ameritrade so you focus only on what you want. Okay, its got screeners and watchlists. And you can even see how your predictions might affect the value of the stocks youre interested in. Now this is what im talking about. Yeah, itll free up more time for your. Uh, true crime shows . British baking competitions. Hm. Didnt peg you for a crumpet guy. Focus on what matters to you with thinkorswim. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Dealing with our finances really haunted me. Ttle cranky. Thankfully, i got quickbooks, and a live bookkeepers helping customize it for our business. live bookkeeper youre all set up janine great vo get set up right with a live bookkeeper with intuit quickbooks. Welcome back to fast money. It is time for a fast pitch. Tonight dans got his head in the clouds thats because he says this cloud stock could break out to new all time highs hes at the plasma with more hi, dan this is a fast trade, kind of a catchup trade into the new year obviously tech has gotten off to a good start, doubling the performance of the market. Lets look at salesforce, an interesting name to me obviously its widely thought of as a high growth, high valuation name, doing a lot of innovative things in a business where they have some structural tail winds for probably decades to come this is one of the mostloved stocksin the mega cap. There are 39 buy ratings, three holds and no sells average 12month price target is 190, thats pretty interesting this would almost be a catchup trade. Salesforce was up 19 last year, a year when the nasdaq was up almost double that one of the reasons obviously investors are focused on valuation here, the company has made a lot of big acquisitions over the last few years to kind of get that growth some investors are kind of questioning that strategy. That being said, they got one of the best in the entire business, the ceo of this company, or the coceos, actually. The next few weeks to a couple of months, the technical setup is interesting this thing has obviously been consolidated, it spent the better part of last year between 145 and 165. Its back up at that level it started off the year pretty well, up 2 , mildly breaking out here but i want to go, lets look at the fiveyear chart. You see that this is almost a near twoyear consolidation. Theres been a nice up trend the up trend actually comes from the prior consolidation where the thing had been kind of moving along in a tight range. Then you saw 100 appreciation when i think about whats going on in the market here, if were going to continue to see a meltup and people will reach for high valuation, high growth things for beta, salesforce will break out. Obviously, to me, do you want to buy every chart that looks like a breakout, probably not this is implied volatility, the price of options in salesforce. Com thats telling you at twoyear lows that to define your risk, maybe use a call or a call spread to play for that breakout above 165, maybe targeting something 175, 180, makes a whole heck of a lot of sense or you buy it with a tight stop ill make one last point, to the downside, that up trend thats been in place for the last year is down towards 145, thats probably your risk near term so to me, i like this play for a fast pitch breakout here for maybe a few weeks to a couple of months do you have a question yes last quarter, the stack ran up into earnings, they put out a pretty good quarter yet the stock traded down. Do you think well have to wait until march 2nd for them to report, that that will happen again . That could happen again karen, this is a breakout trade playing for 10 over the next few weeks before you get any real guidance. Lets go to the vote. Mr. Grasso what do you think . I like the pitch. I like to say buy on this. I like when he was talking about the technicals on the trade. Theres been long term resistance in the stock. If youre planning for a 10 move, why dont you just wait until it breaches the 170 mark karen yes, i like it, actually. Theres a cloud here and a buy with a small calls, buy calls. Little calls. Savita is recused on this, shell pass on that. Thanks, dan. The desk has spoken. Now its your turn vote in our twitter po poll cnbcfastmoney. Coming up, biotech stocks pulling back after their stellar 2019 run whats in store for the sector now that weve started the new year plus after underperforming last year, is United Airlines ready to fly high . O next. More fast in two legendary terrain in telluride, the unparalleled landscape of park city, or the famed peaks of whistler, youve faced the hassle of lugging your gear through the airport. With ship skis, youre just a few clicks away from having your skis, snowboard and luggage shipped from your doorstep to your destination. With unrivaled pricing, real time tracking ship skis delivers, hassle free. Ship ahead and go catch those first tracks on fresh snow. Ship skis. Your skis. Delivered. When i see obstacles, i create opportunities. soft music when i see adversity, i find a way. When i hear never, i say now. [announcer] Southern New Hampshire university is education made to fit your goals with over 200 degree programs, flexible class schedules, and some of the lowest online tuition rates in the nation. cheering so when i face barriers, i can break through. [announcer] breakthrough at snhu. Edu. Welcome back to fast money. Another check on incyte pharma, dropping in half hours after the company failed to meet its goal in a key drug trial. It has been a hot couple of months for the broader biotech area our next guest says theres still more room to run lets go off the charts with todd gordon of tradinganalysis. Com. Todd hi, tyler biotech, were looking at two different etfs, the ibb and the xbi. One point i would make is the xbi is an equal weighted it consists of lots of different biotechs where the ibb is cap weighted the point there is if you take a look at the lower part of the chart, xbi relative to ibb what you see here is a little bit of underperformance, meaning whats happening is xbi right now is underperforming ibb you are actually seeing a little bit of kind of large cap biotech outperforming much like were seeing in the Broader Market keep that in mind. It is underperforming the broader s p. Weve not made a new high. We need to see the index move above there for biotech to truly be back. Two names were looking at, exactly sciences is number one theres some pretty exact technicals in here which i think are amazing here so if you look at three main pullbacks here over the last two years, watch this. 42 , 41 , 39 . And they say the markets are just driven by fundamentals. Theres a lot of technical rhythms and patterns in here we dip below the 200, if you zoom in here, theres a little bit of an inverse head and shoulders. If we can launch up through there, history would show this is a viable pullback this was a high flying stock last year. I like it, im going to look to add exact sciences through 100 the other one is a little bit less of an urgent play which is regeneron. Theres one consolidation, big breakout weve seen a lot of consolidation in regeneron. This is the weekly, if you get down to the daily chart, you have to wait for this one to break. If you just draw your trend line here, youre certainly going to find buy stops above the 400 region if youre been looking for biotech and regeneron through 400, that would be the time to add regeneron. Thank you very much savita, what is your overall thinking about biotech or health care in particular health care is big and broad, biotech just one part of it. Look, if youre going to buy and hold for the next decade, there is nothing wrong with health care and nothing wrong with biotech were moving into this brave new world where there are going to be more grandparents than grandkids for the first time in human history. People are old today, like dont rub it in the percentage of the retiring population, not whatever happens out there today, remember, you have the hilton app. Will the hilton app help us pick the starters . Great question, no. But it can help you pick your room frothe floor plan. Can the hilton app help us score . You know, its not that kind of thing, but you can score free wifi. Can it help us win . Hey, hey were all winners with the hilton price match guarantee, alright . Man, you guys are adorable alright, lets go lose this soccer game, come on book with the hilton app. If you find a lower rate, we match it and give you 25 off that stay. Expect better. Expect hilton. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aie in stores everywhere. Prevagen. Healthier brain. Better life. You should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. But youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start Trading Commission free today. Welcome back to fast money. Check out United Airlines, gaining some altitude today after an upgrade at evercore analysts cite an evaluation relative to its clears is united all clear for takeoff, karen . Thats a nice way of saying youve underperformed and been crappy for a while but theyve actually outperformed as a stock. The valuation makes it attractive because not only have they operationally outperformed, now you can buy it cheaper relative to maybe american might be cheaper at this point but one of the things they also cite is a potential credit card deal when delta announced their American Express deal, that was very good for the stock. That would be a bump that were not really expecting i like the space it is cheap, obviously its a hugely cyclical space but the valuations are attractive. Airlines, transports . They look good. I would say airlines is a consumer ploy, its attractive the use consumer has never looked better. Oil prices seem fairly contained. This is a great way to look for value. I think that 2020 is going to be a year where value outperforms growth and airlines fit in that pocket 20 seconds. Final thoughts investmentgrade airlines, delta basically stands alone im long spirit, up 10 or 15 there. That was a laggard, and underperformer i think that moves higher. Well leave it there. 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Time to find out if you bought dans fast pitch on salesforce it was close and it turns out you did you agreed 53 agreed with dan. Congratulations. Thats a good start for the new year an argument well made time for our final trade mr. Grasso im a firm believer, when the year begins people start to position themselves properly or the way they wanted to be positioned so im long ge, its up 10 from the low to todays close it moves even higher from here 20 in 2020. Savita, quick u. S. Financials is my favorite sector for 2020, it was my favorite for 2019 its the most hated sector karen im going with target i didnt mean to say most hatedkaren. Most hated dan. Thank you very much mad money with jim cramer begins right now my mission is simple, to make you money im here to level the Playing Field for all investors. 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 cramerica other people want to make friends. Im just trying to make you some money. My job is not just to entertain but to educate and teach you so call me at 1800743cnbc or tweet me jimcramer. Investing isnt easy, but kit be a lot ease year if you find someone who is willing to walk you through the arcane