Excited. All right. Hi, everybody and good evening thanks for joining us on a busy thursday all that ahead but we have to start with the top story because 2020 is looking like 2019 mor new records. The s p dow and nasdaq all posting alltime highs but there are a couple of big events that could change things up in the coming days beginning with the big jobs number tomorrow the expected signing of the phase 1 trade deal next week now iran has calmed but not gone and everyone seems to be, guy, wondering about the fed. How should investors be getting ready for this the macrosetup with the market that just cant be held down. Ive said it for a while, i definitely made this more complicated than it has to be. Its interesting, the knock against bitcoin its created the out of thin air. Thats exactly with the Federal Reserve has been doing since september. Creating liquidity out of thin air and thats justing the market north of 400 billion over the last three and a half months by april the Balance Sheet at record levels. Thats it. Jobs are important, yes. China deal, all those things, this overrides everything. So as long as the fed keeps playing the game i think the market keeps vaporizing higher thats exactly what it is. This is indiscriminate buying. There are at least 20 indicators metrics name it what you want at levels irrelevancic in terms of being overbought or upside risk if the market doesnt seem to care. And things we look at talking about the aaii bull bear spreads and basically at a spread of effectively where we were at the ys pulled in a bit earlier in the week the cnn has a agreed and fear index. Extreme greed is 95 within and we are at minus 1 back in christmas of 2018 when everybody was about to jump out a window if you think about the fed and this is really where i think were universality accepting of the fact that the fed is the reason behind most of this i know we got a trade deal, this and that but the fed is the fed claret vice chairman gifting you an indication easy as she goes until midyear. When you talk about the repo crisis, the fed is buying 60 billion in bills in the next few months meaning they will grease the liquidity scale. Meaning on some level, some level, valuations dont the matter i know the dean is talking about that but at some point valuations do matter and i think they are starting to. I agree with that i mean thats fundamentally what we use is fundamentals to value stocks and i hate when they sort of levitate on nothing, because the bar gets higher and the earnings expectation gets higher. Its easier to miss. And that wouldnt be surprising to see that. I look at the volatility index today down 7 . I mean under 13. So i own s p puts. I need to protect the longside i mean its just volatility. Volatility falling, karen at a time when missiles were flying from iran at to u. S. Air bases in iraq. 72 hours ago things looked very different the vix you got to own if you want to stay long stocks because its too cheap. I think the Balance Sheet to guys point, Balance Sheet is what caught most people off guard. Adding liquidity caught people off guard. I think youll get an opportunity to sell the market on china, january 15th. Now. Yeah you could sell it in phase one because there is a gap between face 1 and 2 and earnings i think earnings could surprise to the downside there is the opportunity. The gap, steve could be years. How long did it take us to get to phase one the point is for me i think its bullish to have a certain amount of time between the two phases because it keeps shorties on their heels well the absurdity is that we created a problem and we slowly dont solve it and get more bullish thats what happened here i realize there is a fundamental problem and in fact were not a political show but we know on both sides of the aisle there is unanimity what we need to to do in terms of china policy but when you get back to it by the way asia is issial rallying asian markets have been outperforming. If you think about where we are for stocks, megacap tech of which a lot is asia exposed has been whats been outperforming i know we are talking about microsoft. We seem to talk about apple every day. But the triple qs are outperforming the s p which is up 12. 5 meaning triple qs are up 16. 5 since october 3rd low. What the market was expecting after phase one at least what i expected was maybe a couple months later but we heard President Trump say he could wait until after the election that to me allows you a window of opportunity to maybe sell the print or sell the news so to speak. Do you believe that by the way. On how long he waits. Do you think he could wait until after the election. I think he is Holding Holding it out there because i dont think he thinks he can get a deal done before the election. He makes it as if its his choice. A lot of that is posture. Totally. I will be here after the election, you know, guy i wish we had the chart i should have done it. My fault if you charted the s p 500 versus the fed Balance Sheet expansion since october. Theyre perfectly correlated. 100 . Two to one. Its not like we havent talked about it. Youve talked about it a number of times we talked about it in the show thats clearly whats driving this ship. Again it doesnt matter if you own a stock that goes from 5 to 10. The reasons why dont matter you have twice as much money as you did a week ago thats great but dont confuse it with fundamentals of the companies. Because frankly fundamentals for most markets have been thrown out the window with that said there are sectors the fundamentals are working look at health care, for example. A name like ealey lily alltime highs marc around alltime highs. Big cap pharma which fundamentals are behind could work. Could you say the fundamentals are just that, liquidity issues in the market because when the fed was shrinking the Balance Sheet and tightening people were exiting the same correlation you saw in the s p was the same correlation we see now back then now it the reverse thousand they might not be lose loosening thp. They might not be cutting but they are expanding the Balance Sheet again. I think we have to be careful, because tim when you look at who our audience, the audience watching listening to fast money fast money. Lets assume all the people driving home tonight are individual investors they are not buying or selling or stopping the 401 k on the Federal Reserve on a day to day basis. There is two markets out there, the investor who puts cash in month after year year after year saving for retirement and the High Frequency traders who maybe they just trade only on the fed Balance Sheet. I dont know. Well. Who is in charge . I think we have found that passive investing certainly seems to be winning the day. And whether you are graham dodd or someone that is following fundamentals over time and basically we said before money is made over time its lost very quickly, which means if you stay the course thats typically been the rightthing to do i continue to believe that both the memory of 20082009 and some of the volatile moments of politics are the things keeping people up at night i dont think anybody is worried about a 10 drawdown snp and injury the folks you refer to are comfortable with money in the market as long as they trust the market and we have had bouts where people have not been sure. Whether flash crashes. Trusting that the fed is the wind behind the sales. Its hard to. It is. Because any change in fed as posture will have a dramatic impact. And steve makes a fantastic point. Back a year or so ago when they were draining liquidity was that the same thing i would pushback i would say thats when the market looked at fundamentals and saying maybe the stocks dont deserve the valuations but thats what makes markets and thats a different conversation. Yes it is im sure we will continue it but something to be mindful of is earnings if you worried about pricing going up too far too fast you have to watch the e in pe ratio thats earnings of course. We are a week away from earnings season excreting a full year lets go to bob at the Stock Exchange and maybe more conversation on valuation, bob and whether anybody there really questions how much more gas is in this market tank . That is the topic of conversation right now, bryan. God to see you again the good news is that stocks are rallying because the market is assuming the magic combination of job growth a strong consumer. Friendly fed and maybe a bottom on Global Growth magically produces expansion of earnings in the 2020 after a flt 2019 bad news stock prices going up but. Earnings estimates going up. They are slightly information coming down. Now while estimates are up for q1 and q2. Theyve been coming down we know its typical for analysts overestimate earnings estimates 3, 4 percentage estimates and see them lower closer to the quarter being examined but whats not typical is with it happening at market at historic highs the s P Los Angeles rallied 12 peppers in the 4 quarry on expecting of earnings up prices up earnings down mean the ultimate the markets trade at is climbing fast. January 1st, 2019 remember stocks cheap 13. 9 forward earnings for the s p 500. Expectations were low. We were well below the historic norm of about 16 january 1, we were at 18 today we keep going up at 18. 4. That by the way is the higher end of the range in the last 20 years. So the obvious conclusion is that future stock gains are going to require the multiple to go even higher and the issue everybody talking about down here, brian, is how much more are you willing to pay for the market at this price at these prices any negative factor that reemerging is dropping the market fast what would that be well the fed retreating from the neutral position signs the skurm gets exhausted, a return to tariff wars. They are debating whether or not a really good report on jobs tomorrow, 200,000 maybe, the market expects 160 would that be enough or is that priced into the market right now its getting very tough to move the market forward without really really better numbers than weve got already back to you. We have this election thing from what i understand people with very different ideas about the economy and tax rates and what else. But thats for another day bob, thank you very much. Lets dive more into the concept of valuations and bring in the man they call the dean of valuation, aswath damodaran. Youve been listening to the conversation blunt. Is the market as a wheel overvalued right now i dont think so. I think its frothy. I think that there is a point to be made that the fed added to the froth in the last few months about if you look at whats sustaining the market, its built on four legs the first is the cash flows from stocks are incredibly high im talking about dividends and buybacks still around 5 of the level of index notwithstanding where the index is today the second is i dont think this market is pricing in high growth in earnings but its pricing in the expectation that earnings will not collapse. And the third is low Interest Rates. And there is a fourth factor which is mood. This is a market that seems to think see, i call it a half full glass market where it looks at the optimistic side of pretty much everything. And that can change overnight. I mean we saw that happen in the last quarter of 2018 and it could happen again. I think in the First Quarter of 2020 but the landmarker question to ask is should you be trying to extract yourself from stocks because you think they are overvalued and my answer is no. So at what point do we get overvalued were at whatever 19 times earnings on a forward basis. Is it 20 21 where is that point where with he say, okay we have to find Something Else to invest in bus stocks are too rich . The problem is with low Interest Rates where are you going . I mean im not sure you can go anyplace and find bargains in a world of low Interest Rates. I mean, real assets, financial assets, everything is being affected by low Interest Rates what do you think about the market today is very much a function of why i think rates are low. And i asked people to do a experiment lets assume tomorrow Central Banks all step back from acting. Where do you think rates will go if your answer is tbond rates go to four or feist you should be terrified if you think they are going to 2. 5 or 43 is okay. I think the 2. 5 to 3 is morically than the 4 to 5 even he though the Central Banks have had effect i dont think its as large as people think. Given the fact that inflation stays low. Real growth globally is not that robust the u. S. Doing better but the world hasnt caught up in terms of real growth. Its karen. Let me ask you something if we were to get to 2. 5 or 3 i think that would have a dramatic effect on stocks in the shortterm at least with the fear of all right maybe inplacing is around, maybe it goes higher than that. What kind of pullback would you see in the stock market if we went to the 2. 5 or 3 range . I think sits very much a function of how rates get to 2 the. 5 or 3 . If it happens quickly with no fundamental reason other than higher inflation thats bad news. If it happens because the economy is doing stronger than expected its mixed news i think it really depends on quickly it happens and what fundamentals accompany the change dean, when you looked at one of the shocks being a recession, how do you think about that where just like a handful of months ago where were we when we thought we were sliding off a cliff as far as growth what type of percentages because things can change pretty quickly. So your shocks were political, recession. And they were a boost in Interest Rates so we heard about the Interest Rates. But what percentages or maybe you dont do that but what type of percentage are you putting on a recession possible in the next year and a half or so i think one of the things ive noticed across the world is how companies and markets have kind of disconnected from domestic economies i mean if you go back to 2013, 2014, while the u. S. Economy was growing slowly, u. S. Companies were still posting high growth in earnings. So i think that when you see a recession, unless its a floebl recession youre not going to see the earnings consequences you might have seen 20 or 30 years ago. I think the link between how well the economy is doing and how well Companies Earnings are doing is weaker than its been historically because of that reason professor, we gave you the name dean of valuation so its not entirely fair. But i feel like we need to throw, crumple up the sil bus and the classes you were teaching ten years ago makes no sense any more i wish i could have attended that class i probably couldnt have been admitted to the university but i think valuations at some point are the ultimate arbiter where the market goes. When things get too cheap they are too cheap, doesnt mean that day. But i dont your saying they matter any more. Thats surprising. No thats not what im saying im saying given where rates are today, i dont see stocks as being overvalued thats why i said when you think about the market, it boils down to what you think about rates Interest Rates if you feel Interest Rates are artificially kept low by Central Banks which most people think they are, the question is how much lower are they than the natural rate you would say if they werent doing what they are doing preponderate answer to that question is really what drives how much you allocate to equities and what you do about the market today. Aswath a good discussion as well with the valuations im sure we might be taking your class again soon thank you very much. By the way have a great time in san diego, found pd by the germans in 1909 we have the chart the chart best in the business the fed versus the rally the orange i dont know what the orange is. One of those is the orange is the fed Balance Sheet. Yes. And the blue is the s p 500 it doesnt matter which it is. Because even if you are on the radio theyre basically the same line and, again, a point i know that steve is making, tim, karen, weve been talking about this since the fall. I understand the dean of valuation, respect his opinion but its hard to argue with what you showed there and what people on the radio listening to. Theyre correlated basically one to one. Well i guess, yeah and bring up the chart again here is the point, steve im not saying you shouldnt have market gains on that type of thing. The question i think is very simple what happens when that orange line starts to turn down. Well there is no question we know its going to happen i do think october 3rd was the low the market traded intraday it has moved 14 since it it was effectively around the time that the fed came in and talked about the midcycle adjustment but also talked about the repo market stress and talked about what they were going to do to counteract that, and say that it was not necessarily a adjustment but fantastic them doing what they needed bottom line here is this is ephemeral. And we had the moments and if you think about the january 26 blow off high of 2018 what fueled that . Extra sugar on an economy and market doing well which was the tax cut. Be careful. Good advice tim as, as always we have the song pour shoeing an. Lepered the gaunt. Deaf leprd is the band here we go. You could say there is hysteria what the mason point parton place and the Union Station have in common with one stock just out with earnings. Plus a fistful of fast calls five different calls for the day as always. Live from the nasdaq mkesiart te in times square. Were back right after this. I can. The two words whispered at the start of every race. Every new job. And attempt to parallel park. electrical current buzzing each new draft of every novel. typing clicks the finishing touch on every masterpiece. newborn cries it is humanitys official twoword war cry. Words that move us all forward. The same two words that Capital Group believes have the power to improve lives. And that, for over 85 years, have inspired us to help people achieve their financial goals. Talk to your advisor or consultant for investment risks and information. Talk to your advisor or consultant here, it all starts withello hi . How can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone wifi up there . Uhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your local xfinity store today. All right welcome back we have an earnings alert on kb home the stock down a little bit, 1. 5 after hours the Conference Call getting under way. Lets find out what they are saying about their business with seema modi at hk. Housing revenues were up 15 year over year ceo Jeffrey Metzger on the call saying it fell short of the anticipated range a as some of the deliveries in the bay area were delayed due to fires and power shutdowns. Yes, sir yet he is optimistic about the macrofirkt from lower rates strong jobs market pan lack of supply fueling the Housing Market in 2020 the company witnessed Strong Demand for the build to order products as well the expectation really high into the report with kb home up about 68 over the last year however, in the past three months Home Building stocks have trailed the Broader Market over concerns around the economy, a pullback in firsttime home homers analysts warning a tight labor market and prospect of higher rates are the key risks facing the housing sector in 2020 yet, the street still very positive on the stock. Raymond james has it as the topic pointing to the 30year fixed rate just falling below 4 , a 13 opinion week low and sun trust saps among home build he is its a favorite name in the space. Good tough, seema, thank you very much. The riddle before the the mason point, parton place. All models of kb home. Its lets trade the stock. Up 70 in a year if you owned it should we sell now. Its hard act to follow but lumber costs backed off a bit. Labor still a problem. On the back of len that are is if california is improving then kb homes is improve. If you think unemployment stays where it is preponderates stay you are okay buying the homemade build zblees january 2018 this was a 39 stock. January of 2019 it was an 18 stock. Its now round tripped the entire move. You are talking about the potential for a major double top around the 39 level off the earnings now to steve ace point its a great run. I dont see a compelling reason to run out and buy the stock and initiate here. I think there is a pullback in store. Good discussion there by the way, you can always watch us live on the go on the phone or tablet and the cnbc app check it out but right now we have more fast coming up here is what is on tap. Announcer tesla taking a breather after getting a stones throw away from 500 a share but will the stock rev up from here plus, why chinas internet stocks may be a safer bet than the fangs. Well have those stories and more when fast money comes back but it can help you pick your room from the 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. [spokesman] if youve tried colleg group cheering shed, snhu lets you transfer up to 90 credits toward you bachelors degree. [woman] it doesnt matter how old you are, you can do it, you can finish. [spokesman] finish your degree at snhu. 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Bold, yet i think they one changed the price target from 325 to 525 you can downgrade all you want still sighing upside in the shares ive been outspoken about the my eye erroneous ways the last month and a half in the name now you see analysts potentially well i shouldnt say it come to their senses and maybe taking money off the table in the name. Well, its interesting that valuation seems to be coming into play here thats my cynical comment but you expected that from me on tesla where ive been wrong. Well get oswald on the phone. Stock number stup. Amd getting the upgrade to buy at mazuho upgrading to 17 by 5 a a share. I understand why they did it. They think the pricing pressure from intel behind them they think market share gains in front of them we have seen a turn in the space. All thats good. I wonder, they were at neutral and 38 he when the suffolk was lower. And now 5 a with the stock i dont know, 48 where it closed today. Im wondering its either a bold call or the horse left the barn. Up 70 in 90 days i know. I probably wouldnt make that call. With growth they still go the names they find growth in the same names they found growth in before cant switch it up its almost autopilot. Whenever the smoke clear clears whether its iran issue are or any other geopolitical they go back into there are too many people buying the same stocks they are crowded trades thats it. Semiconductors and f. A. N. G. And thats it. I think in amd case its a phenomenal run but you are bringing on the heart ache because you have a dynamic where the valuation doesnt make sense. I know its not the valuation show any more. Stock three, starbucks barclays upgrading to overth likes the Global Growth. Now starbucks back above 90 a share. Steve grasso but is it worth new money considering its below where it was a year ago, six months ago. This is a stock always figures out how to survive but i dont like they are pushing into digital because i like getting the store and ordering waiting in the line. Picking up those second and third and fourth other items online the stupid coffee must go you dont need i dont like the idea of delivery or your orders waiting for you in the end it seems. Digital is driving so much revenue for them. It is but i think ultimately longer term they were getting people they wouldnt ordinarily get but when the people that ordinarily buy from them start using digital versus the stores think they buy less. You wonder. And i know its a bit off topic, guy but i notice people on twitter they dont like the app because if you go in the store you are second in line and 35 people come in ahead of you to pick up cups you know what you do, you love and the people picking up cups dont buy anything else. They dont get the 6 oh 0 cal roy scone. Why did you tap. Maybe they need to clean that part up. But again its the valuation show real quick this stock close to 28 times next years numbers on maybe 11 eps growth thats maybe a little frothy. Nicely done there. By the way, the wholesale cost of coffee coming up 25 in the last couple weeks Something Else to watch. I like that i see what you did the deaf leprd stock four cocacola getting outperform at credit suisse. Revenue growth speeding up this has been a rocket and if you think about it its a deaf leprd song but cocacola which had been left for dead which is actually, talking about 4 comp goegt for a company doing nothing for a long time its interesting. But when you think about how cocacola slowly expanded well beyond the carb natured strong drink. Im long the stock i think you stay there. Anybody else around the table long cocacola. Not for years why not. Yoend, just always seemed expensive and then there was pressure and the korbin ated befrpg. Not too late for love. Never too late for love. Anybody else . Not there. Finally rounding out the fast five shake shack, the shack Raymond James initiating coverage with an underperform. The analyst says the street is, quote, overly opt michk on the stock heading into the year and next steve grasso, your take. Im long the stock bought it off the dip, the recent dip. I think the call is late stocks down from 10 a any grow quicker with better margin nan the rest of the quick serve restaurant space im there it seems to have stabilized around this level quick im with steve on this. This was a 40 to 110. Base country the move is a 50 retracement give or take i think they are late aswell if you seal it here you might be trading long i understand valuation the show about valuations this is ridiculous. But i think the move downward in the suffolk reflects that already. Valuation matter on a name that is growing more quickly than most of the peers if they miss valuation matters. If the e comes in and the pe contracts. I think thats what you have. They didnt show the growth last quarter and you got massively corrected. Im with these guys after the pullback this is a stock we have been giving the benefit of the doubt in terms of the high multiple i think its back to a place where you you price that in. Listening with the stock fell today but on that cull, the analyst wasnt successful. Couldnt armageddon it. Nice. The retail wreck. Shares of kolls bed balanced bad appear bath. Are there opportunities in the sell i dont have before that steve grasso takes the mound the next best idea why he thinks this soaring media stock has more room to run grasso and the fast pitch. Watch that call. Its coming up all right welcome back to fast money. Snap snapping back in a big way. The stock jumping as much as 6 today following two upgrades both cowan and bernstein slapping out perform rating. Shares up 176 in a year sounds god but remember thats really just getting snap back to the ipo price. But steve grasso says this comeback is getting start many he is at the plasma to give you his fast pitch. Brian when you lock at snap there is a couple of things that get it going they have expanded in re ar, augmented reality. They have higher sales off of in re automated ad platform they opened up basically the sales and marketing to third party sellers. So if you look at the sales growth last couple of years, its gone from 38 im sorry last couple of quarters, 38 to 48 to 50 most recently thats respectively in the last threequarters theyve also navigated the political landscape. And if you remember what twitter said were not takingny politic willing ads. Facebook were not fact checking. What did they do they say we are threading the needle fact check. Accept those ads and all is going to be hunky dory lets look at where it came from. When you go back, this is the ipo area here. Stocks have a magnet to wherever they are ipoed 17 thats are the intro where it ipoed this is the major decline where facebook was stealing everything, bread and butter that didnt happen over here around 5. That was the low ive been long this stock from below 10 sold it at 12 reestablished the position at oh 14 now if you are at 14 or even now at 17, the major line in the sand here bull lumbar bear, 17 if it holds that level, you could probably see low 20s there is a bunch of analyst in the community right now that are negative on the name those are going to be converted bulls in short order with higher price targets. Im looking for low to mid20s in the name. A big move coming from where it is right now. Hey, steve, fair warning im definitely one of those thats van halen im a bears that needs to be converted i may be but my question is, the reversal on the shares was all about use are decline and stabilizing and slight growth. Do you think they have real growth ahead on the user side . Because on the ad side i think its a good space. There is scarcity value in social for someone like snap. On the user side, tim, good point. They were stuck at around 187 for a while. Now theyve blown through that basically from 2018 to early 2019 they were stuck at 187 million. Theyre now at 210 million so growth is coming back there User Engagement is coming back there. I think youre okay on that side of the equation. Steve think they report february 4th is this youre playing into earnings or pull the rip cord or stay with it post. Thats another great point. I think you want to track this most people want to buy ahead of the news if they dispinpoint the stock could come in drastically. Play it into earnings pull the rip cord a couple of days before. No more questions now time to vote okay are you buying grassos pitch on snap . Tim well start with you. Im afraid not going to my writing not terrible i good steve did a great job. Ive been negative on the stock for reasons i think its more of a snapback rally off the lows. Snap back raly. Get that good yeah. This is a disappearing pass i wrote with a little snap chat you lost me at snap. I dont think i could get onboard in terms of valuation. I understand for trade that may be and the momentum might be there to do it. Kudos to steve who dan nathan as well process. I say stay with snap user base like the take. Photographs which is why snap does well. Bernstein initiated 20 price target jeff jeffers a couple week ago i like it. You took the themes of the night made it relevant to the fast pitch everything coming together cost mick the desk has spoken. Folks, now its your turn. Are you buying grassos pitch on snap vote in our poll at cnbc fast money. The results revealed later in the show up next. Its just snap chinese internet stocks are on fire why . Later we hit them all. You might be able to find might be able to find deep discounts and rough details today. Stick with us fast money in two. Can spend a bit today, knowing were prepared for tomorrow. Wow dad, do you think you overdid it maybe . I dont think so. What do you think, peanut . Nope honey, do you think we overdid it . Overdid what . See . We dont think so, son. Technically, grandparents cant overdo it. Its impossible. Well planned, well invested, well protected. Voya. Be confident to and through retirement. 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. 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There is only one group of stocks doing better than big tech since october and that is chinese big tech the k web etf tracking the space is up nearly 30 in the past three months and tradeners the Options Market bet the red hot run is far from over christian has the action options action process what are we seeing christian. What i think is interesting is the rally we see in the China Internet names and what were see something both this is hit both in the etf itself as well as the individual names so the China Internet etf thats kweb has been recently seeing 11 times more call volume than put volume were seeing a massive push going into the china names and you could see as well what we have is a bunch of the individual names names like billie. Iq, tcom. These are i would call second tier China Internet names. We see the option activity in your larger names such as baba baid jd. Com but what this tells me is two things the breadth is really restraining in terms of the group. Its not just the internet that people are going after its the actual individual names. And number two, what i think is interesting is that its also underowned we see the big push and you could see that the China Internet etf right now is up 7 versus were going to the next chart which is u. S. Internet which is only up about 2, 3 here a couple of things i notice in the chart, this right now is the the china etf in the enumerator and u. S. Internet in the dmom naturer why this is interesting is because if you look at the chart weve had the base go on a long time and now we are seeing whats known as a golden cross with a 50Day Moving Average crossing overt 100 Day Moving Average and the 200 Day Moving Average. I think the move is just getting started. Christian, real quick, do you think that first of all the graup of investors these were Big Hedge Fund trades. These folks hunt as packs. I agree with you the entire space is breaking out. What type of players are in here or this foreign buying recognizing the trade war doesnt affect the fundamentals for the companies. I think its a bit of both. I think what we see is institutional money thats been on the sidelines afraid to get into china, has been pushing in. I think its a great time too considering that right now the the trade war is taking a bit of a back seat it will reemerge again but i think its been settling down the rhetoric which has been a great time for investors to go back in. So just lastly just alone, the kweb etf chart as well, you could see its doing the same thing. Its breaking over the 50Day Moving Average crossed the over the 100 Day Moving Average and the 200 you have the golden cross both in the outperformance and the etf itself i think even though the script has been really on fire the last week i think the move is just starting and i think an option trade is a great way to express the view i like going out a little bit further. Rather than a lot of the option activity that we see which is shortterm if you go out to the may 5 a calls you should purchase them just over 2 about 4 of the etf thats a great way to express the bullish trade going out a up can of months. Okay looking grood christian with thank you very much tim you got to be careful, the etf its 10 percent. Don pink basically a groupen phone if if you buy the kweb you are buying four or five chinese stocks and thats controlling the etf. And i think thats right. But christians point about the entire chinese internet space should not be lost on you. These are first of all iq is a 17 billion company, the youtube of china, growing seeing enormous rpu growth. Thats right, guy rpu its an animal at the end of the day these are stocks not loved and the entire group at times when it runs it tends to overshoot. Momentum is certainly the order of the day when you play in these names. All right good stuff there for more options action its tomorrow night, 5 30 p. M. Eastern time of course you see fast money first and then options action. All right up next were trying to bargain hunt a few names you might want to put in the shopping bag look at our cramer cam jim is talking chicken find out why he is hot on the tyson trade. More on mad money at the top of the hour. Dont go anywhere, fast money, live at the nasdaq, back after this announcer options action is sponsored by think or swim by td ameritrade. Welcome back really a storeful of Retail Stocks on the move today were bringing back the good, the bad and the ugly first to the good. That was l brand rallying 4 . Investors brushing off weaker than expected holiday sales and guidance cut on to the bad, macys tumbling halting four Straight Days of gains tp down 2 and downright ugly for kohls falling 7 after recording dismal holiday numbers the Retail Sector struggling in the trade. But is now the perfect time to shop karen you are supposed to buy low and sell higher or buy high and sell higher any opportunities you tee see in retail. Im draub to the ugly and there is kohls i think its cheap but it should be really cheap. They lost their way. Had a lot of they had hoped to get momentum back with amazon they have had a terrible Fourth Quarter or third and Fourth Quarter. It should be cheap so i would rather sort of head to the expensive to whats working than try to buy cheap and having it just become cheaper. Fast money, i like to look at the name target which isnt. Everybody loves target. But theyre killing it. Right . They are executing over and over again. Whats our theme of the show . Valuation. Valuation. Good job, class. Target at some point the valuation be somebody no where is oswald. He would say the valuation isnt crazy. Its where rates are here. Shopping. I like target i think you know i want to be where the momentum is not hoping kohls can turn it around. I hear what karen is saying and i agree with what karen is saying if i wanted to go bargain hunting i would go to macys and try to play it there but i maid it with a couple of other ones should i give mine now. Do it now. Time to do it. I like the performers like ross stars tj maxx. They benefit from everyone over ordering and high inventory levels those worked im sticking with those and costco for good measure. Renewal rates off the chart. Comp december sales up 9 . Cant go wrong with any of those three. Knows a lot of people dont realize the ross appear tjx are beneficiaries of other paying they buy the inventory on 10 cents on the dollar sell for discount but those stocks have been look at a 10year chart of tjx. One mans pleasure another pain thats a mollie hatchet song might be a theme tomorrow but in terms of what im looking for a lot of people said let it go in terms of master card and visa but i mean manafort card and visa continue to perform now master card close to 35 times next years number is absolutely getting expensive but into earnings a in a couple of weeks you own ma and l letter v. Back to good bad and ugly np nike outperforms the north american comps clearly growing both in terms of direct to consumer. The bad is home depot a bad investment the last six months and flat to sideways but i think that analyst day where they guided down is something that was very, very overly conservative and i think they are investments in technology are working finally ugly is alta so many structural headwinds in cosmetics but they have gotten into skrk and bath wear. I think it makes sense in terms of gpm accretion Going Forward thats the thats the play where its out of favor and i do think there is an opportunity there. Good stuff there. Karen still likes target as well all right up next, its your wee cknatres rba right after this. [narrator] at Southern New Hampshire university, were committed to making college more affordable. Thats why were keeping our tuition the same through the year 2021. [woman] i knew snhu was the place for me when i saw how affordable it was. [narrator] find your degree at snhu. Edu. All right. Time now to find out if you all at home or wherever you are bought grassos fast pitch saying to own shares of snap looks like you get ghosted, steve. Strikeout on the snap fast pitch apparently. Listen to that. Can you hear that . Thats the leprd. Do we have the rates or the percentage. That would be the best song by the way. 51 49. Looks big are than that we dont know either way didnt buy it final trades lets go around the horn tim seymour. Steve did not die hard. The hunter go to nike. World Class Company the ascent you can stay on it. Karen. World Class Company i think it was your bad. Bad home depot my good. I think im very optimistic on their ability to increase the numbers. I think you were right they are sandbagging a bit. Heim sticking with snap a great winner for me on a percentage basis and i think it goes higher. I like you hang on. Hanging on. As he should he has done a nice job with that a lot of people have been saying armageddon it for lyft and uber, the last dep leprd reference of evening. But lyft since october done well. Great show today. See you tomorrow tomorrow night mad money with jim begins. Mad money starts now hey, i am jim cramer i am trying to make you some money. My job is not just to entertain you but to teach you call me or tweet me jimcramer today was all about momentum thats why even though we did not have much in the way of