Over says our analyst. Tonight there are only 7. 5 trading days left this year so we are shopping for the best buys heading into the new year. Do you put more money into the names working or buy a loser at this point. Gee . Im a believer when you put money into things that were working. Losers were losers for a reason. And few play catchup into the next year. And the defense stocks, Lockheed Martin sold off since the alltime high a few weeks ago. But with a 3 dividend in a good valuation and the tail wind the space has behind it, i think you go to the best of breed in the sector that works and that is Lockheed Martin. Does the Election Year matter. In 08, obamas first administration, the defense stocks got crushed when he was elected and off to the race ever since. I said mig andy could be president of the United States and the defense stocks would go higher. They work in just about any administration right now. Tim, to you, first. Walmart. The company has had a few things go wrong and in the Third Quarter they started to reverse and downgrade and getting better, starting to stabilize. For walmart there is two problems. One, they lost their edge. Which was price beating and that is why people went to walmart. Amazon had something to do with it. Walmart is experimenting online and with small stores. That is not working. They are getting back to better comps. The gross margin is turning. And walmart will give them a edge in terms of the online pay systems and the stock down 30 this year in a world war where i think next in a world where i think people are worried about the American Consumer and they will always do well in that environment. And when tim revealed that walmart pick, you said that is interesting. In what way . Tim is right or wrong . I certainly wouldnt short this thing. It had a tough year. As i know personally well in retail. But i think the valuation makes it compelling. Compelling. Dan, what is your pick . Here is the problem. I think guy started it off. Cheap gets cheaper. And we have a broad market going sideways to down with most stocks across multiple indices in the u. S. The name i want to focus on is qualcomm. A company that has misexecuted and had regulatory issues and activists on their tail. And a difficult year where 100 billion of semiconductor deals have been announced and they are nowhere. They have 10 market cap and 4 dividend yield and they have misexecuted. They fended off activists that wanted them to split the company. I think in 2016 they will start to get things right here and i think down 35 on the year is a good level. 47 or 48 to take a shot in the new year. What is the catalyst. The fact that management might get something right or use the 40 of the market cap in cash. It is a good question. That is why i started off with the cheap getting cheaper. I think they have a good Balance Sheet and could do a deal, m a that could help them out and get into some areas where they have not been. Obviously they are predominantly mobile and had problems in china so maybe some fixes there. But ill just mention that i think the rest of the Semiconductor Space has been buoyed by this m a and they have not been involved. Im curious that china is driving the valuation and suddenly reversed. Good news that china is working with the legacy players. You tell me. I think china is the opportunity. And when you think we just saw tim cook again last night talking about the china opportunity with the smartphones. I think they play this. Karen, your pick. My pick is anthem. Up a little over 10 . Well off the highs. When it peaked it was north of 170 and now below 140. Things are going well there. Unlike united which talked about how difficult the obama care business is, anthem is not seeing that at all. And so you have good payroll growth and that is good. And you have scale. Theyre gigantic. So the more people they add, the better operating margin on that additional insured is. And you have the potential of this merger, granted it will take time and no clayity on that. Management is doing a good job. 13 times expense. And you are not buying a dog, you are buying one that performs nicely but still has upside. Are you a fan of this pick. I am. Anthem, im in her camp. But united health, at 110 a couple of times this year. A whisper of the alltime high in a sea of bad news over the last couple of weeks. So i think anthem works and unh. And on dans qualcomm. If you look at where it stopped 45ish, that is where we stopped in 2011 and bounced over the next couple of months. So if nothing else at least 45 gives you something to trade against. One beaten down dog of the dow could help you. And carter is at the smart board with a stock making a turnaround. What is it . Over the last 10 to 15 years dogs of the dow has outperformed the stocks. And the ten stocks with the highe highest dividend yield. That the stocks dont cut thur dividend. The highest dividend yield and then holding for a year. So take a look. Names, we heard from walmart there, from tim. Qualcomm, and dans pick is doggy. And the ten highest yields in the dow. And doesnt mean you are down. Pfizer is up. But this group is down 14 versus the dow down 3. 5 and the yield is double that of the daw. So a longterm chart since the early 1990s. If you rinse and repeat year after year, you tripled the performance of the dow jones itself and ten out of the last 15 years it has been prosperous. And so looking at proctor, and it has lagged the dow. Here is the spread over three years. And yeartodate it is down 14. And to my eye, what we have here is a welldefined trend and a break from trend. You could also look at this kind of thing. Head and shoulders bottom. But either way you cut it, i think this is a good place to put some money if you want to play dawgs of the dow theory. The other stock not discussed here is verizon. Which you like. I do. If i had to pick two. Who likes carters dogs . I like the dividend. And there are catalysts in terms of brand spinoffs and this is part of the story. They are divesting noncore brands and i think it will be upside and the brand where the bar is extremely low. So if you look at the earnings multiples, sequentially they are in a good comp zone. So i would say verizon is an interesting one because it is a theme it has a 5 dividend yield and 100 of the sales are domestically and they dont have the exposure to the dollar and very densive. So i think the stock is about 46. It is probably okay. With a 44 stop into the new year if you want to play this thing. The only worry i have here is the wireless pricing, i think we are on massive secular shifts here and i think well see margins come down over the next couple of years. That is the big risk to the story here. But in the meantime, 5 dividend yield. Would you rather of the dogs . Verizon or png. Verizon. And p g, beginning of the year, 94 traded down to 65 in a Straight Line over the next six or seven months. So either the bounce from 65 to 78 is just that, a bounce, or the start of something meaningful. I think it is just a bounce. The market had a tremendous year up until recently. Proctor did not participate. Where there is smoke, there is fire. So to answer your question, verizon over p g. Carter, quick last question what do the dow winners do the next year. It is interesting. Starting with the guests who were both in the dogs of the daw last year, mcdonald and ge, questioning it this year. And then there was the reciprocal. Mcdonalds after being up 25 , the odds tv outperforming this year are diminished. Carter braxton worth of cornerstone macro. Coming up next, more troubles for chipolte after news of another ecoli outbreak. We have the details. And why the street is getting it wrong on apple. And why now is the perfect time to buy. And later the former chair of saks is sounding the alarm on retail saying there is something going on in the space hes never seen before. What it could mean for the biggest retails in the game when fast money returns. We visited the farms. The cdc was on a lot of the farms. We had our epideemyologist on farms and we could not pinpoint it to a certain location. I will say though that we could assure you today that there is no ecoli in chipolte. We have thoroughly tested our food. We have thoroughly tested our surfaces and we are confident that chipolte is a safe place to eat. That was the ceo of chipolte speaking to jim cramer last week on mad money. But he may have been wrong. Chipolte hid midday as the cdc is investigating another outbreak of an ecoli strain. The stock down 6 before rebounding here. Guy, what do you do with a stock with a valuation like this still high. Not a little high. Very high. Close to 32 times earnings. You have to believe at some point bad news in terms of the next release has to come out if it hasnt already. A 25 week low today. We talked about it, december 7th. So the price action was good. It was. Trading down to 515 and and the headline was such that you have to stay away. I still stay away from the name. It is too rich. Before all this of happened and much too rich now. Ive been wondering whether there is corporate espionage going on here, with a vested interest in the company not doing well. But they dont have a handle on the problem yet and it is hard to get comfortable in the stock without that given that it is expensive. It is a very difficult thing to hear the ceo come out and say we believe it is a safe place to eat. How can he . When there is not a handle on the situation yet. It was early to come out and make such a declarative sentence. It might not be their fault if it is a supplier but it falls under their roof and jurisdiction and the question is whether this company has gotten so big to be able to control the supplie suppliers. I would stay away from chipolte. Nice pronunciation. Listen, i love myself a burrito. You know that. I dont know why anybody would go into a chipolte right now. You are not pronouncing it correctly. Right. So the point is, uncertainty. We have no idea how this will end. A couple of weeks ago people thought the news flow was going around and here it is again. And twitter loss adding to a tough year for the social stock. It is down nearly 40 in 2015. Dan . So today i think the situation has to do with the fact that the wall street journal had an article talking about jack dorsey running the two companies together. Investors are voting here with their shares. And they were talking about the new executive chairman that they just hired from google had to offer to be jack dorseys driver for a day to fit in a weekly meeting. And this is stuff that will dog the company until they demonstrate the ability to grow engagement and users again. I would just make the point that with a 13 billion enterprise value, it is still a very unique property in my opinion for a lot of potential buyers. But jack dorsey has only been there for a handful of months and it will take more time unless somebody goes hostile. Has a company ever had a ceo that it had to share with another publicly traded company. I think there is an auto executive who is doing that. It is few and far between. Yeah. Elon musk maybe. As a chairman. And one company being a troubled company with a stock under assault and another one going public. It is a confusing thing for investors and im one of them. I like what they are doing on monetization. The google catalyst of integrating into google is very positive. As weve seen also, the add monetization is much better than facebook, albeit very powerful and distant platform. One that is nowhere near its potential. It is very cheap at these levels and that is not an earnings level that is almost a dc level. Is there a floor for twitter . I have to be honest, i thought it was hold 35 on the way down and it didnt do that. And i thought it was great and a unique property and i still think that. But the stock action is such that until it does something that signals a bottom, which it hasnt done, some huge move to the downside on 35 or 40 million shares of volume. I think you have to stay away. You cant be there for a takeaway. That window is closed. That was open before he became ceo. Star wars crushing Box Office Expectations bringing in 250 million in the u. S. Alone. But disney shares falling for the second day, down 1 . And none of the star wars stocks are getting a bounce either. Amc, imax, hasbro all down on the day. So do you buy the star wars fade . Tim. I dont think so. In disneys case, weve seen this coming. And even though the Box Office Numbers and the merchandise is being pushed upward, whether it is 2, 2. 5 billion depending on who you talk to, and it trades at a massive premium to the sector and people are concerned about espn which is onethird of the ebidta. And no matter how you slice it will lead to four or five other versions of the same is probably 8 or 9 of the ebidta. I own the stock. I think it will trade lower but it has to come back to the pack. But ultimately a lot of bad news. And i mean for the sector it is priced in. Merch is cool for merchandise. Merch. Did you get some merch over the weekend. You went to see star wars over the weekend. I did. Admit to the United States and the viewing audience. I admit to the United States that i did see it. And you saw the other movies . I did. I had to do my homework to be prepared. You had to do your homework for star wars. Now, cant always be so good. My favorite scene. When the wookies went against those dont lie. Give me a trade on the stocks. I dont know if he said stay away, but i will say stay away. Because it traded back to 122 and failed the level that we broke down from in august. It has more downside. You have to admit the good news has been out there and the bad news that tim just discussed, the problems with espn still exist. So the problems of two quarters ago still exist. I think it breaks 100 on the down side. Still ahead, saks and which names are the big winners in the new year. Im melissa lee and youre watching fast money on cnbc. First in business worldwide. Here is what else is coming up on fast. Apples plunge in value and the looming question over the sales of the iphone. Is the street on the wrong side of the apple tree and what might it take to turn the tide for investors. Plus gold is on the virginia of seeing back to back losses since 1998 and that has Dennis Gartman making a very bold call. Find out why he says the gold bear market is over. All of that and more ahead on testimony. T. F. Fa. S. T. M. O. Ne. Y. Money. Welcome back to fast money. Does apples recent stock slide signal a fall from grace. The bears say yes. But the next guest says it creates a buying opportunity. The he had yoiter of Yahoo Finance joining us now. It has gone bearish with the iphone coming down. It is all about the iphone for apple now. And it is a blessing and a curse. Of course it is a blessing because it is the most successful Consumer Product of all time. They will sell 231 Million Units probably this year. But of course everyone is anticipating the product is topped out. People are suggesting also it will even decline next year. And the multiples come way down. The multiple trades between 14 and 9 p. E. And it is about 11 now. The stock has gone from 136 to i think 107. And so the jury is out. Can they keep iphone sales up, number one . And number two, what else is in the pipeline, people . Right. That is the big question. Obviously they do have a pipeline. The bigger question is can what they have in the pipeline offset the more immediate revenue losses for the declining iphone sales and that is the big question mark that every investor has. Well first of all, we dont know whether iphone sales will decline. That is an estimate. I think there is ways that they could actually make sales go up a little bit. There is a lot of functionality they could continue to add. It is unclear what is going on in china. It is very opaque there. I think and also i think it is baked in that sales will top out. That is number one. Number two, i think your point, melissa, about how do they replace that, that is a huge problem. Because were talking about a product about 64 of revenue. And even more in terms of profit. So you could add music, you could add tv and add the applemobile or whatever you want and im not sure exactly how they will do that. I go back to the multiple and i compare it to all other tech stocks. And youre betting against apple if you dont own it, right. And i would not bet against them. They are a Secretive Company and you dont know what they have got and they could change and adapt. But it is up 25 and you could make that arg 10 ago. Except it had a higher multiple. And now it has an 11 multiple. Going down to 9. Which is a fiveyear low. That multiple is appropriate for a hardware company. And until proven otherwise, despite smart despite apple pay, and streaming, despite smart home, these are all things apple is trying to do to become a serviceoriented business. But right now it is a hard wear company. Im long the stock. But i get where people are in terms of the comps, they are brutal right now. They are. I have four of these devices. Im with them at all time. Every time there is a birthday for my daughter or a christmas, i have to buy them new stuff. The products are amazing. And i dont see anything disrupting that Going Forward. They have such ownership of how we use technology. Granted it is hardware. They are trying to become more of a software company. What is disrupting in the future Going Forward, it is a saturated market for highend iphones. That is the issue. And when we have somebody from Yahoo Finance or someone sitting on the desk talking about how many devices we have, that is in the emblematic of where they will get the growth from Going Forward when you think about it. Because china, with 25 of the sales in the last quarter, it is growing yearoveryear and it wont continue that way and the recent weakness does track the weakness in the chinese currency. It is about china. It is not about you or how many iphones you will buy here. That is not how Hardware Companies evolve. Welfare enough. The law of large numbers is a brutal thing for them to be facing. And i acknowledge it is a bit of a leap of faith. That is what a horse race is all about, isnt it . Maybe. Were going to find out, right. Thank you, andy. Editor and chief of Yahoo Finance. He brings the energy, man. But lets get to the argument. Is it about a leap of faith. Should we say, apple, youve done it in the past and you will do it in the future. You have great products that could offset decline in revenue. Pros and cons. When i was in a kid in 1930s. Sony was taking over the world. It was a sony world, we lived in it. You dont hear about them any more. The products became ubiquitous. Could it happen to apple . Why not. You just heard tim talking about it. And august 24th, back out the low, if you look on that day, traded down 103. 5 was the low. Traded close to it today. Reversed and went higher. If anything else, for the first time in a while it gives you something to trade against on a long side. Youre a shareholder . Im a shareholder. Should you pay something for it . Yes. This is a team that has proven itself. I dont think you pay that much for it. And they have a big Balance Sheet and buying back stocks so they are in engineering and earning. But the retail environment this year, where is the money going, i think it is going to iphones. I think well see big numbers here. And it will move wherever until they announce earning and give us more clarity which doesnt happen for a month. Until they give us the numbers. And it is one of the top tech of the ten most used app of the year. Facebook and Facebook Messenger rounding out the top three. So who is winning the app wars. Im going to dan because i dont think guy knows what an app is. Apple, you want to justify a higher multiple. Get into that space. Make imessage an app and license it and get facebook multiples for parts of your business. I believe that is their future. 10 of the sales came from services. It should be a much, much bigger number. I think they have an amazing opportunity to diversify away from hardware and get into services and justify a higher multiple. I think facebook it is clear what is going on in the space and this is why facebook is trading at the multiple. They are getting the growth and proving it. The loyalty and the programs and the apps for this site that make sense for this site and make sense for the video adds and where they are getting the prooem. It is facebook and until proven otherwise, this is best of breed. You are a funny guy. I was at the app store this weekend. I went to the app store, wise guy, so i dont know what youre talking about. I went to the app store. Got the clock app. It is my favorite one. Im with tim. I think it is facebook. Whats up instagram. No doubt about it. They deserve the multiple they get. Trading within a few percentage off the alltime high. Another great quarter. It is facebook. The ceo of saks is seeing something in the retail space he has never seen before and it could have major implications. Steve sad dove will join us. And the 3. 8 million bullish bet on china. The largest options trade of the day. Much more fast money up next. E more. Because, for me, the challenge of the search. Is almost as exciting as the thrill of the find. announcer at scottrade, we share your passion for trading. Thats why we rebuilt scottrade elite from the ground up including a proprietary momentum indicator that makes researching sectors and Industries Even easier. Because at scottrade, our passion is to power yours. Thats why i switched from uverse to xfinity. Now i can download my dvr recordings and take them anywhere. Ready or not, here i come whispers now hideandseek time can also be catchuponmyshows time. Here i come cant find you anywhere dont settle for uverse. X1 from xfinity will change the way you experience tv. Welcome back to testimony. Stocks seeing green across the board. The s p 500 rallied 1 while the dow gained 123 points. Jp morgan was the big leader, up nearly 2 followed by pfizer. Here is what is coming up in the second half of the show. Gold is on track for the longest losing streak since 1998 but one veteran trader is coming for a bottom in how high he sees the commodities going. And the 4 million bet that china stock could surge in the next month. And the National Average for gasoline is now at the lowest level since 2009. Jackie deangelis is at the Stock Exchange with this. And it happened just before christmas as aaa predicted. The National Average per gallon is now below 2. More than twothirds of u. S. Gas stations now below that price. And why . The world is still awash with oil. And this theme of lower for longer expected to last well into the new year. Now it is problem for big oil and energy companies, also the stock market. But it is a boon for consumers. Americans have saved more than 115 billion on gas this year. That is roughly 550 per licensed driver. Now as we head into the christmas season, cheap gas and also this warm weather likely to get people to hit the road. More than 91 million americans are expected to drive 50 miles or more this holiday season. So how long can we see this gas price stay this low . Well expect it to linger unless something changes here. We dont see gas prices perk up until the Spring Season which is march and apple aril and that sa little while away. Thanks for that. A oil or gas trade. Stay away from amber jay. I think there is further room with the down side. Stay with the refiner. Des oro and valero had big days. Oil services dont work. Buy some of the best of the breed integrated. Chof ron and others have gone from capex of 40 billion plus and more next year. And the signs im seeing and the bankruptcies an the pain here are leading to a place where oil is turning. People talk about iran today. Half of that supply is in the market and prices dont reflect that. And he mentioned halliburton, stay away. And they extended the review of this. There is a 3. 5 billion breakup value if this deal doesnt get done. They will own that to baker hughes. That is 20 of the existing market cap. They might have an imbedded put in it. It is at 52week low. And i think the airlines couldnt break out. Even with oil as low as it is, they seem to have topped out. And if oil goes higher, they dont benefit. I would fade the airlines. From cheap gasoline to record warmth, the warm weather is having a Chilling Effect on the holiday sales, particularly at Department Stores and could spell trouble well in 2016. Joining us to discuss this and more former saks executive steve sadove. It is good to see you. Good to see you. And it is warm and the scarves are piling up and the markdown signs are up. How long does this hangover typically last. Judging how warm the weather is up until this point in the holiday season. At this point were in clearance mode on the warm on the cold weather goods. Because it has to get out of the system and it is being marketed down very heavily. And it will happen. It will get good great prices for the consumer. And i think as we go out of the season, january, february, youll see the coldweather goods be cleared at record low. Great prices for the consumer. And then well be back into spring goods and get into a more normalized pattern of selling. Which Department Stores in your view will hurt the most because of the warm weather overhang . Well, i think any of the Department Stores that have a preponderance of business in the northern markets are hit harder than the Southern Tier focus. But the entire sector is being hurt by the warm weather. My guess is that more than half of the miss in terms of the comp expectations on the retail Department Stores is being driven by the weather. Steve, it is karen. Let me ask you something. It seems like were actually seeing an unusual phenomenon in that luxury is doing less well than some of the more pedestrian types of stores. What do you attribute that affect to and do you think it persists . Well, i think you have different phenomenon in the luxury sector. The strong dollar against the euro. The tourism is down. Weak economies in russia. The chinese arent shopping for luxury goods because it is not politically correct. And it is down in brazil. And it is down in the gateway cities. And luxury consumers are buying other experiences as opposed to just products. So restaurants, travel, hotel are doing extremely well. So i think the luxury sector, while continuing to be somewhat healthy longer term, is if for a little bit of a rocky period. Is there any kind of retailer, steve, that benefits from warm weather in the winter time . Oh, boy. This is a tough environment for the retailers in general. Especially in at per the appa. In the home space people are doing well because people arin visiting in their homes. In terms of apparel, it is players like the under arm or, ath leisure, and others doing well. And in the near term we are bearish in the Department Stores. And my feeling is they are oversold in terms of where they are. Were selling at about a 25 discount in terms of multiple to the historic levels that these chains trade at. And i think that if i were picking my bet for 2016, as we go in through past the first quarter, i think there are great buys in the retail sector. Steve, going to leave it there. Thank you very much for joining us. Steve sadove, the former chairman and ceo of saks. So he likes retail, even though they will face difficulties. They face difficulties. He is a great guest because he sat in that chair. But multiples, do they matter . When you think about the disruption the internet has brought here and why people dont need to go to Department Stores, im not sure that is changing. I think nordstrom has invested in their business. You could see them begin to bounce back. When im looking at Department Stores, i would rather go back to a kroger or names that are focused on a different clientele and where theyve been resilient. They are winners this year. Those are places to stay. It is not time to pick the bottom, nordstrom is down and macys is another one. I dont own it. But the real estate is off the table for now. That one is one more pukeout quarter and this quarter will be bad and then interesting to buy. We have news on sumner redstone. Lets bring in dom chu. The viacom chairman again, and this is with regard to the latest with his exgirlfriend trying to tame aim at his take aim at his mental competency. A California Court has granted his former girlfriend a limited discovery for mental competency. Meaning she could then depose again viacoms current ceo, two of his doctors, but not redstone himself. At least for the time being. And the next scheduled hearing for redstones motion to dismiss these allegations or charges here i mean not charges in a civil case here, is set for february 8th. So again, a California Court has said that his former girlfriend could depose philip dell moan and tro two doctors but not sumner himself. And that the bizarre saga with regard to whether he is competent to run his own company or not. Back over to you. Dom chu, thanks very much. For investors, i guess, this could possibly open up the possibility that when the doctors are deposed, they could point out some information that they may be wondering about. So it could potentially be a large negative. So lets look at the stock at what it did. At the end of 2011, it stopped dead at 40. Guess what happened recently. Stopped dead at 40 and rallied to 55 and then here we are at 40. And they rarely hold the third time down. And if w this headline, if you are long the stock, you have to pull the rip cord. It is not a negative. Hes not running the show. If you think it gets sold yes. I dont know that it gets sold either. I understand hes not running the show. I think he is viewed as though he is viewed as the person that is running hes the puppeteer, in my opinion. Maybe im wrong. But i still think he is the name associated with the company. Coming up, gold rallying today. Could the bear rally be over. Dennis gartman makes his case right after the break into and nike is the best performing stock in the dow, up 34 . Will the report tomorrow send the stock running higher. Much more fast money still ahead. Welcome back to fast money. Gold jumping 1 after heavy pressure and losses of 7 in the last few moz. Dennis gartman believes it is finally coming to an end. Dennis, what are you seeing that others are not . Well, i think first of all, lets understand, it is a fouryear bear market. Four years and a month in dollar terms. A bit stronger in terms of yen and euros. But concerning gold against the dollar, it is four years and a month. That is a long time. But what had a my interest is the cftc reports coming out indicating that the commercials who are normally enormously net short are almost net long. And the public that has normally been net long is affectively out of the market. So these are changing that are material in nature. And the last time we saw this happen in the other direction was when the commercials got egregiously net short back in november of 2011. They are the ones that call the top. They are the ones that call the bottom. So that alone has me interested. Then i think were starting to see changes in most of the other commodities markets, the grains refuse to make any new lows. I think that is impressive. I think the crude oil market is trying its best to make the lows because the term structure is beginning to change. Copper came off the lows very hard in the past several days. There are some changes taking place in the commodities generally that have my interest. So after a 4. 5 year bear market with the commercials getting almost net long in gold which is archly atypical with the public out. It is time to be bullish. Im curious, because the cftc numbers are the weekending the previous week. So im wondering if year end is playing out and if you could look out and see which contracts they are net long or net short . They aggregate them. So it is a composite view. I dont know which ones they are net long or short. And it is possible, i grant you it is year end and there are year end consideration that come to play, but the fact that youve seen over the course of the past month such a huge shift in the in the participation on the part of the commercials, i think this is more than just a year end circumstance. Well see. Time shall tell. The game doesnt get going good until you take one 1085 out in dollar gold. That is possible. But in the next several of days there will be selling to stem the rush from the upside. But if we get past the turn of the year and we take out 1085 on the upside in dollar gold, if we take out 1,000 in the euro gold, the game really will have changed demonstrably at this point. How strong is your conviction. In other words, are you getting long gold . Yes. I have been long gold. Ive got longer late last week. If we get longer 1085, i am long. I will get long. And i shall get longer if we go up through 1085, no question about that. Dennis, thank you. Do you buy that . 1085 . Well holding 1050 the other day was very important on the downside. And i look at gold technically and i have to be impressed by the price action. I will say if it didnt have an opportunity to go through the roof over the last month and a half with the movement in credit markets, i dont think it will. So ive been saying it is going to 900 and i still think it is going lower. If dennis thinks gold is going higher, you look at the reversion trades that is one of the great trades. You have to think emerging markets are going higher and commodities are going higher because they are the same trade. I find myself in in accord with everything you said except copper. I think it has another leg to the downside. I think gold is an entirely different animal. Missed it by a day after fed day because i got crushed. But now it is doing the things it should have done last week. But if you like gold funny, should ask. In 8 or 9 minutes well have something called the final trade. Exciting. Still ahead, one trader is betting 3. 8 million that the china market is about to soar. All of the details are up next. Youre watching cnbc, first in business worldwide. Welcome back to fast money. Nike, the best performing stock in the dow. And they will report Second Quarter earnings tomorrow night after the bell. So lets take our position as head of the nike report. Dan, well start with you. Im hardpressed to think there is that much more good news. Back in november they announced the 12 billion buy back and the stock had a massive buy back up to the same levels. It looks poised to straighten out. They have the olympics coming up and the stock on okay news goes higher and it hasnt been a great strategy to beat against nike. I think it is difficult for it to have a 2016 like 2015. But if you look at the gross margin, they continue to grow. The direct to consumer business continuing to grow. More than 25 of the business. The valuation is difficult here. But still better riskreward against under armor. I love nike. But if you like them, footlocker at half of the multiple, it has all of the same underlying positives i think. I own footlocker right here. And gee . Shes been spot on with footlocker. 26 time forward earnings for nike. It is not crazy expensive. It is a 50 billion company they say by 2020 the margins have been improving. I think if you get lucky and it sells off after earnings you buy the name. 3. 8 million. That is how much one trader spent on a bet that chinas stock market could surge in the next month. Dan is over at the smart board with the options action. The shares listed in hong kong when the stock today was 3560 there was a buyer of 100,000 of the january 37 calls paying 38 cents. That is 3. 8 million in less than a month on january expiration. It got me looking at chinese stocks. A huge source of volatility across risk assets for the first nine months of the year. Here is the shanghai composite. We saw the massive 70 run from february up until late june and the subsequent massive decline of almost 50 in the ensuing four months from late june. But obviously it stabilized a little bit. The government is the business of buying stocks i suspect here. Lets look at the fxi. It has traded differently. At a 20 rise in the first half of the year. Down about 24 . It is stabilizing a little bit but down toward the lows. So the eight shares look much weaker than the shanghai, the shares that are stabilizing a little bit. And i want to make one point about the purchase of the options. They are 5 out of the money but you have to take a look at what youre buying here. Implied volatility and the price of options in fxi seem reasonable, basing down toward the lows. 50 off the highs back in august. So if you are look to make a defined risk to the upside leverage, this is the way to do it. Check out options action on friday at 5 30. And up next, well tell you what the traders are talking about tomorrow. Aka the final trade. Stay tuned. What are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place that lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim . For all the confidence you need. Td ameritrade. You got this. Time for the final trade. Around the horn. Tim. A top trade. Im long again. Trit finds a way to continue the monetization. I stay long on the future. Qualcomm, we talked about a dog. Maybe you look next week to pick this up. Use guys 45 stop to the downside. Carter kaaged it doggy. Im interested in short urban edge. They are a small pinoff. With the yield at 3. 5 . Weve seen mall traffic down a lot. Gee . G swizzle likes what Dennis Gartman was saying. What were you doing . I was popping. Gdx will get you done. Im melissa lee. Well see you back here tomorrow at 5 00 for fast money. Dontagain. Mad money with jim cramer starts 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. My job is 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 save you money. My job isnt just to entertain but to educate and teach you. Call me at 1800743cnbc. Or tweet me jimcramer. As 2015 draws to a close, i believe we will look back on the last 12 months and declare it, declare it the year of