gartman here to explain why one group of stocks are still rallying. but first we start off with the record highs and propelled by biotech up 8% more than double the gains in the health tech sector. that all as president-elect trump is pushing for a quick repeal of obamacare and republicans in the senate and house maneuver to make it a reality. so what is behind this move? is it too late to get in? >> no, i don't think it is. what is behind the move? what is behind the move is the fact that you haven't heard politicians now effectively talkingabout biotech talk about it the last month. it hasn't been steadfast on everybody's radar screen. so thousand people are lonow pe valuation and maybe the companies are not left to dead. ibb we talk about all the time. look at all through 2016, how many times did to try to get through 250 on the down side? probably four, five, failed to come so each time. now it's above the 280 level that we've talked about for the last year and a half. and i do think barring some headline out of the president-elect which is always a possibility, that biotech could actually rally significantly as we get early into 2017. >> they have been a value trap effectively. >> 100%. >> for the past year and a half. so aside from just silence -- >> yeah, that scares me. we talk about the trump trade over. this is almost the anti-trump trade it in a sense because we're not sure how much these companies will be able to charge. so there is a lot uncertainty. so i don't know the company as well as guy does, but when i look at the ibb, which is the biotech etf or the xbi, to me they still look like they're range bound. i would want to wait for this sector to prove itself to me unactual i have that zeu until i have that certainty. >> i feel like it's in the middle of that hurricane, that quiet. i wouldn't be surprised to see him come after this. obamacare is first, but right in there is going to be drug pricing issues i think. and so it's been a nice rotation in that trying to look for places that are cheap. haven't been caught up in the market rally. so i'm not -- if i had to do something, but i don't feel like i had to do something. so i to odo own anthem. that is trading nicely today on the idea that maybe costs of obamacare aren't as bad. >> i hate interrupting karen because she always says really smart stuff, but i think about the trump trade or the implications of what new policy could be. someone like bio gen has significant on shore business. corporate tax regular lays really helps these guys. a lot of offshore money. every one of these companies or a lot of them, certainly the upper weighting of the ibb just all given 2017 update as in the last few days and they ever all been pretty positive. granted there are -- >> i appreciate you not interrupting me. but what about though the idea of the government being able to negotiate drug prices? trump adoes that on his own. drug pricing is an enormous thing and the government does negotiate drug prices. that could be a damaging tweet. >> at some point i have to realize that sanity will take over. we will listen to gilead later and it will be a great interview because they will at least be able to defend the r&d that goes in to a lot. to think that the government can come in and set pricing i believe that there is absolutely some egregious pricing that will be looked at, but i don't believe that pricing power or margins will be shot. if anything, i think -- >> to me, it seems like basically all the health care, all the biotechs, they have peaked prices. >> i look at the upper weightings of the ibb and i think these companies are not companies that are terribly expensive either relative to themselves or their history or their sector, they're actually cheap because they're big mega caps. they need proof of concept in their models right now. and if you take some of the pressure off, their stocks will go higher. >> that is the concept, that some of these companies need to raise prices, "s o others do no because they have organic growth about that. >> may be, but the only problem is if you're -- first of all, if your business raising prices, y have a problem. but a tweet comes out or any type of thing where the government will negotiate prices, biotech won't trade well. it may not be logical, just the way the market works. >> but it haunt traded well. and i look at gilead stock which is above the 50. starts to show before befow -- >> i just want to interrupt you. >> interrupt everybody. >> you've done it before, you will do it again. that's fine. but i think again i look at a couple of these companies and actually they're being priced as if they're no longer having pricing power or that they will make a terrible trbs. and these are very good balance sheets by the way. >> we could have said that three months ago, four months ago. and the pressure has not abated on this sector until the turn of the calendar. >> there is pressure on the business models and then on also corporations that i think throughout this country have suffered. when i look at u.s. drug companies that actually have to compete with foreign players when u.s. tax reform or u.s. tax corporate structure in this company has been maybe oppressive, maybe it will get a lot better, this makes the world operating for a lot of these guys a much better place. so just forget focusing on the industry. i think u.s. tax reform is very bullish for the sector. >> so the hope of tax reform and potential he rerepatriation is greater than the possibility of -- >> to me that's why they still trade in a range. that's why it has to prove to me. let's say you're on ibb, you get up to $300, right, that to me is a place that i'm going to sell it. so i'm $15 away. >> let's take a pause in our conversation. but stick with biotech. no better praise than the j pchp morgan health care conference. meg is there with john millie began. >> john, thanks for joining us. they are having a very fascinating conversationmillieb. >> john, thanks for joining us. they are having a very fascinating conversation but we have to start with the m&a question. what is your take? >> we've been talking about this for the last couple years and we've been very interested in expanding our pipeline. we did have great successes last year especially with the launch of four products including two for hiv. so we're seeing good expansion of our sales based on volume growth. but m&a ability to bring in new products is a critical component for the future. and as we've been talking to investors and meeting with lots of companies here this week, m and a is top of mind for us. i think it's important to think about how deposit continuous and innovative our business is so we have to be fully innovative again and again and again. so m and a is top of mind. >> and you've two transformative deals. the hepatitis c franchise. does another company like that exist out there for you to buy? is that why you have been holding off? >> i think a couple things. first of all, these don't come lo along very often. they have to have the right characteristics and the understanding and other components to make more of it than it would be on its own. weare looking heavily at assets that can be kocomplementary. you have to be really sure of where you are. in m&a, once you buy it, you own it warts and all. >> and you hired a new head of the cancer business sparking a lot of speculation that you will be potentially doing deals there. >> yeah, he's a terrific guy. i don't want to put too much pressure on a person who has been with us for exactly four days now. but i think that he will be a critical leader in helping us decide what directions to go to and how do we leap frog, how does gilead back a player with the molecules of tomorrow that will transform oncology to a greater degree. >> and of course in the course of the conversation about drug pricing and model of the industry. gilead was the biggest company thought about when it came to pricing. how do you think about the way trump has talked about the industry? >> i think we have done a bad job being transparent. there is such a fragmented payor system in the united states. we negotiate with hundreds of different payor segments each year. that creates a disconnects between the price that is often published and the price that people pay. i think that we need to be more transparent as an industry so that people who aren't familiar with that industry can have a better understanding of where the dollars really go. i also think we put too much burden on the patient. the plans that are patient have co-pays that are unworkable. and so i think as about 2017 and the value we bring, we also have to keep in mind transparency and what the patient burden is. and that is an important component of what i'll be working on this year. >> and you have a question? >> yeah, on the point of the hepatitis c franchise, a big drag on the stock has been concern about this franchise in particular. what you can tell us about whether scripts have been flattening and how confident are you in the ability to predict what you're seeing in the future in this franchise? >> that was the most common question we've gotten over the last couple years. it's a market that behaves unlike any other. there was an enormous number of patients under care for a long time and had an urgent medical need to get treated. and we saw most of those patients were treated. so unlike other diseases where there a constant flow, what we're seeing is that the epidemic is changing in its nature. patients are less sick and sometimes the doctors don't have the capacity to accept them in their practices. so we have seen a slowing globally in the number of patients coming to market. we also expect that there will be fewer patients in hcv than there were in 2016. i don't understand that, i can't predict. i do know that we have a pretty good handle on where it's going. it's a slow decline. still a really good business for gilead and still really important that we get these medicines to people because once they're cured, their lives change dramatically. >> and you recent hired somebody from lazar to head your m&a department. he's been there on the job since november 2016. this lines up with the possibility that there could be some repatriation rerelief. should investors read these stars aligns as a deal in 2017 is almost a foregone conclusion or a top priority at your company? >> the person we hired from lazar came into help us realign our business development earth. effort. so potential creative partnerships.th. effort. so potential creative partnerships. i wouldn't say m and a is a foregone conclusion, but we will be active to bring products in so that when we have this interview in 2018, we can talk more with the pipeline sfwlp so you're seeing something in 2017. >> we will be certainly working very hard this year. >> all right. thanks a lot, guys. meg turrell with the ceo of gilead. great get by the way. what did you read from that interview? >> he can't say yes i must do a deal. it's hard to negotiate with someone when you must do a deal. they have had this billialance t that screams to acquire something. good for him that he hasn't done it until this point. anything that he would have bought in 2015 would not have been a great deal. so the discipline is good. if i had to be in the space -- >> it discipline is good and th science behind a lot of these companies actually works. we didn't talk about alumina, but the stock was up $20 after hours. but in terms of where they could potentially go,ialumina, but the stock was up $20 after hours. but in terms of where they could potentially go,lalumina, but the stock was up $20 after hours. but in terms of where they could potentially go,lalumina, but the stock was up $20 after hours. but in terms of where they could potentially go,lumina, but the stock was up $20 after hours. but in terms of where they could potentially go,umina, but the stock was up $20 after hours. but in terms of where they could potentially go, $2.5 million market cap companies, these would not the be huge deals for a name like gid gilead. clearly cancer is the next frontier. >> gilead going side way, but that is not a bad thing. i don't think that they will make a bad is acquisition. if you look at analysts on the street, they have 5% discounts rate on the dcf which means they have priced in biopharma risks. >> shares of general motors soaring today. could autos be the next great leg of the trump trade? plus one group has been surging. commodities kick says there is even more room to run. what is he buy something he will explain here onset later this hour. and guy has a stock he says could be the best idea since the show started ten years ago. that may be yoioverstating the case. but he will reveal the name as fast money's ten year anniversary week continues. ♪ we're drowning in information. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley. welcome back. general motors soaring today. it increased its full year guidance shrugging off any worries over a possible border tax from president-elect donald trump. autos have been on a tear since the election. chrysler up a whopping 58, general motors up 19%, tesla up 17% with ford up 13%. despite all this, is donald trump good for the auto trade? >> what is good for gm is that they have affirmed guidance that nobody believed that they could get to because everybody thought we were peak auto. so probably well a ahead of a lot of the street. so forget trump on some level because i think this company will continue to execute. stock trades roughly 4.2 times 2017. is th s that s that impressive. sfwr it was only a couple weeks ago that they idled a plant. so to come out and say we'll to better, you have to rethink what they're seeing strer success what may be going out there. so i think it's interesting for me, i still don't think it's an ultimate toe company, bko auto company, but the one i'm long is tesla. >> i think it was wildly bullish in that that they didn't have to come out with those numbers. and it makes me position they have some left in their pocket. they also have more cost cutting as well as the financial engineering of a buyback. so that the multiple -- >> so you bought after the announcement? >> i bought after the announcement. it ran up to like up two bucks, came back into like up a buck 37 or something. and i bought some there. i would buy more. i'd like to not buy it on a day like today, but -- >> difference gevidends and buy encouraging. but it will be better. >> let's move on to the move of the day. check out the etf, whole group rallies as southwest says its passenger traffic was up 4.2% for the month of december. karen, you own some airlines. >> southwest was the catalyst. there was another catalyst of an analyst report about -- >> alaska air and the thought that fiscal stimulus could benefit the domestic airlines. >> and united airlines after the close came out with what were good numbers. so that stock is looking up. it's all great. i'm actually thinking it's a little too great. i'll look for sell some calls against it tomorrow. >> spirit airlines was up big again today. if you're looking for a name, i still i think spirit can go a lot higher. >> big cap airline, you have to go delta. it offers the most value. there is a reason why. >> still ahead, commodities king dennis gartman says one group of stocks that has been rallies since the election still cheap. he will at the titell us why he bullish. here's what else is coming up on fast. guy is bringing the heat. pitching what he says could be a hot stock for your portfolio. but will the traders swing at it? plus the former cfo of citigroup and one type top bank analyst says the trump run in bank stocks is done. find out what has sally so bearish. i am benedict arnold, the infamous traitor. and i know a thing or two about trading. so i trade with e*trade, where true traders trade on a trademarked trade platform that has all the... get off the computer traitor! i won't. (cannon sound) mobility is very important to me. that's why i use e*trade mobile. it's on all my mobile devices, so it suits my mobile lifestyle and it keeps my investments fully mobile... even when i'm on the move. sign up at etrade.com and get up to six hundred dollars. ♪ looks like we made it so perfect. you were hoping for some barry and you got it. all coming up next for you. i laugh, i sneeze... there goes my sensitive bladder. sound familiar? then you'll love this. incredible protection in a pad this thin. i didn't think it would work, but it does. it's called always discreet watch this. this super absorbent core turns liquid to gel, for incredible protection that's surprisingly thin. so i know i'm wearing it, but no one else will. always discreet for bladder leaks welcome back to "fast money." we're live in new york city's times square as our special anniversary week continues. we have an a-list guest lineup for you with names like shane smith, regis philbin and some surprises. it may be cold outside, but dennis gartman has trhree ways o play the sector. and guy has a secure buy, but can he convince the others on the desk to get on board? but first, financials the best performing sector despite the rally slowing down as earnings loom for the historic post-election bank rally. bob pisani has more. >> analysts are getting more cautious on backs. today citigroup downgraded goldman sachs and co-america to sell saying we view the banks as trading stock and we don't see a wom compelling risk/reward for the group. and a regional bank said we believe share prices already discount the up side. none of this is terribly surprising, but it's kind of refreshing hearing caution from normally upbeat analysts. banks were huge outperformers in the fourth quarter. large banks up 30%. 28% since the election. here is the problem. banks have moved so fast, there is a risk that we could have a pull back before we move higher. and it's not because the fundamentals are bad. they're really improving. the yield curve steepened after the election. it's true yields have dropped in the last couple of weeks, but most analysts believe that the net interest margin will expand next year. secondly, more importantly for most banks, loan growth is expanding in the low to mid single dipping it range. so commercial and industrial loan growth is up 1.1%. real estate up 2.3%. coupler loans up 1.5%. that is quarter over quarter. bottom line, expect the banks to be moderately upbeat about the economy and loan growth, but don't be surprised if very few are willing to stick their necks out over tax cut, less regulation and stimulus programs. bank officials are aware of the importance of lower taxes, but most reluctant to say anything concrete. but the street will be concerned that the reveal of the volcker rule. but nobody sells the future like jamie dimon does. he sells it better than anybody. >> and one of the most powerful women doesn't see the bank run going much further. two lifetimes ago, you were one of the top banking an lists on the street. so we have to ask you, how do you feel about this runlists on the street. so we have to ask you, how do you feel about this run? >> once a bank analyst, always a bank analyst. happy anniversary. you had more hair back then. >> thank, sally. >> citigroup is up to six. right? on a split adjusted basis. it was below one, now up to six. so there has been a rally in it. a rally based off of regulation being pulled back, i don't know, you know, when the banks didn't have as much regulation, it ended in a lot of tears. and the idea of the banks going back into proprietary trading where they can perform essentially in line with the markets or worse which is what they have done historically, it's hard to get excited about it. >> so taking deregulation off the table, just the fundamentals of rising interest rates, potential stimulus, that alone isn't enough to justify -- >> higher interest rates are good. historically, when rates move up, somebody has an accident. regardless of what you think you can read, there is always a surprise that occurs. somebody is swimming naked about sxw . >> so what they benefit in terms of a more margin friendly business, someone will blow up on their dime. >> when i was cfo of citi, pre-the cry circumstance we used to try to title this. this is good, this was a one time thing. and i said why don't we just finally have the title if it's not one thing it's another. >> a lot of people are saying this is the time for active management. you don't want to be in passive funds anymore. you will find that -- do you think it's the time -- >> i will leave to you professionals for individual investors and what we do which is a digital investment platform, typically the right move is a diversified low cost investment portfolio. i asked individual investor, how many people thought trump was going to win. right? very few. how many people thought the market was going to do what if did when he won? nobody. so the trick is invest a little bit out of every paycheck, sometimes you're buying high, sometimes you're buying low, but if you're an individual investor, that's the way it will go. you professionals can take care of the active management. >> are you seeing with the markets hitting record highs more people interested in your services? >> we're so new, so it's hard to say. but what we're more seeing is okay with that, but we've been pointing out there a gender investing gap. men invest more than women do and it costs women hundreds of thousands, some women billions of dollars over the course of their lives. so i'm going gloria steinem on you here. we're not equal. and remember this is all of us, right? more money in the markets is a good thing for the economy and society. >> and you have new book coming out. own it. tell us about it. >> my first and last book. it's about the power of women. and that women advancing in business, it sold out. and a lot of the advice for a lot of years for women has been act like men. but what if we as women use the power we have, we control $5 trillion of investmentable asset, 80% of consumer spending, we're half the workforce, what if we actually act like women and bring the qualities that we have which are risk awareness, relationship awareness, long terminate, those are things that drive the power of diversity. and if companies aren't going to treat us well, which some haven't, we have the ability to start our own things which is another big driver of the economy. >> book comes out next tuesday? why on tuesday. >> can we get signed copies? >> for sure. >> and i'll be interviewing sallie next tuesday in this morning city and i'm an investor in her venture. wish you great success. >> and you and i have been debating the banks for how many years? >> years. >> one story, karen and i got drunk together -- >> what? >> a little gone. and -- just the two of us. and we found ourselves talking about the financial crisis. and i said i think we're the two most boring people on the planet. >> true story sadly. >> sallie, thank you. good luck with the book. despite her digs at my appearance over the last ten years, which a lot of people on twitter say has improved, care actually said that in our greenroom -- >> i'll disagree with my friend on this one. >>. >> takes me a bit to warm up. i will submit probably incorrectly that banks are now being priced to book. takes me . i will submit probably incorrectly that banks are now being priced to book. takes me . i will submit probably incorrectly that banks are now being priced to book.i will sub incorrectly that banks are now being priced to book. maybe 2.5 times. but you could see in the new world 1.7, 1.8. even with the citi downgrade of gold plman sachs, their applies target is still 255. >> and here is the thing though target is still 255. >> and here is the thing though. some is priced in already. we do have rates moving. remember how banks got hurt on oil last year. that has been good. and the trading revenues have to be high. >> so the one thing in the short term if you look at the rally since the election, you saw banks and rates rally together. what you have seen over the last three weeks is there has been a big divergence. basically gone up where rates have gone down. so something has close there, whether rates foe higher or banks go lower, i'm not sure yet. my bet is that rates go lower and xlf comes down. >> really nice wedge. i think fourth quarter numbers, yes, i think the sales an trading numbers will be better. i think mortgage numbers will be lower.d trading numbers will be better. i think mortgage numbers will be lower. net interest margins will be better. but think about what has happened. maybe this is where we stay for a while. >> and you thii think you agree that point. >> shocking. still ahead, call it milget madness. dennis gartman has three ways to play this rally. he will be here to explain. plus it's the one stop that guy thinks could be a home run for investors. will the other trader agree? he's warming up for his fast pitch. time for the past pitch where one of our traders pitches a stock they think is a buy and the desk will vote when they're done. guy, what is your pitch? >> thank you for tossing to me. i do appreciate that. cybersecurity was all in vogue in 2015. 2016, not so good. especially not the so god beod barracuda networks. that being said, cybersecurity is everybody's radar screen. barracuda operating margins 18.7%. they beat on revenue, billings and eps. billings grew 13% year over year and are they're adapting to the cloud. their customers are adapting to the cloud. fast he that be the rest of their competitors. yes, it's very expensive on valuation. but i do think '17 could be the year for cybersecurity and this is the stock that could benefit the most because they have moved to the cloud faster than the rest of their competition. i will pull up a chart and i hope it doesn't go berserk on me, but you take a look, there is a good chance we break out above the 2016 high and i think this stock has ample room to the up side despite valuation that is extraordinarily rich. back to you, mel. >> i think that is the first time you operated the smart board, isn't it? >> didn't be a wise guy. i've done it before and done it pretty well. >> anybody have a question for guy? >> i do. they seem like they will have to spend more money. i mean that is one of the concerns that the analyst community has on the stock. >> cash burn without question, i'm looking at you, maybe the cam rargs yes, that is a concern, as well. however, if you look at last quarter, they're running the business more efficiently man festing itself in both billings and operating margins.manfestin billings and operating margins. so cash is a concern for the entire space. but if you can think that 2017 is a halcion year like we saw in '15, there is a reason to own the stock. risk/reward sets up well. >> my question to you is this stock had a tremendous run in 2016. basically 2.5 times it went up. does that concern you that everything that you talked about is priced into it already? >> i am concerned 24/7. so, yes. you could say i've missed the move and in a large part i have. but you know back to a name like pal low a palo alto networks, a probably tripled. given what analysts are saying, fuss i don't think you've missed the entire move. >> are you feeling a bit of the burn? >> i will feel the burn from fire eye for the rest of my investing career. so yes. >> so let's vote. karen, i'll kick it off for you. >> i have to pass. just it's a valuation thing. it is a not huge. i can't get there. >> tim. >> i'll be a buyer what have guy is selling. you'll notice at the top i wrote heart. i do the logo for the band heart. >> of course. >> i think the demand for barracuda is growing. i think you pay for the mum multiple. >> for a me cyber is huge. i think you buy it. >> two buys, guy. >> that means on the price is right. so i'll drop and walk. coming up, look out below. big bucks of one of the best performing stocks about to tappintank. we'll tell what you it is. and plus dennis gartman says there is an area that will thrive unlg dder the trump administration. he will explain. are you getting this? these numbers are off the charts... sir! what's the status? there's a meteor hurtling towards earth. how long until impact? less than a minute. what do you want to do, sir? listen carefully... if we all switch to geico we could save 15% or more on car insurance. i like the sound of that. geico. because saving fifteen percent or more on car insurance is always a great answer. welcome back. medals have gone wild since the election and that's helping one sector see big gains. dom chu is breaking things down. >> i was listening to you talking about the financials. and materials is a sector that fits the bill in many ways. under a donald trump, infrastructure spending will increase helping memgtss, mining, that sort of thing. thus helping the stocks of companies that also build the other things that we need for infrastructure. of the 25 members of the s&p 500 material sector, there are currently around nine of them that have rallied to a point where each is at least 10% above its 200 day average trading price. in other words, relatively extended above a historical average. among the notables in that list, you got construction supply are mayor contin may martin marietta. 15% above the longer steel price. and same for nucor. and the stock trading at the biggest premium, that is freeport mac brand. for each of these stock, prices are below their recent highs, so they have at least managed to pull back a little bit. but melissa, traders have to determine whether or not any potential benefits are already priced in to the stock given these huge runs. but materials definitely a focus for a lot of these traders playing the trump rally. back over to you. >> thank you, dom. our next guest loves to rock out with bullish bets on gold. i'm reading the prompter. dennis gartman joining us. maybe that is your quote, dennis. >> that would not be my quote. i will pass on that one. >> but you like gold. >> still have. i know people get confused because i always want to open gold not in u.s. dollar terms because owning gold in dollar terms is a bearish bet on the dollar and i'm bullish on the dollar. in euro term, i'm very interested in. last year euro terms was up over 13%. beat the s&p by several hundred basis points. most people won't know that. most people think gold had lost last year. in euro terms, it was up dramatically. i think that is important. i'm bearish on euro and bullish on gold. >> and let's talk steel stocks. sounds like they're stretched in terms of valuation. maybe not. >> i'm not sure that they are. first of all, if you do believe that trump means one thing and he means infrastructure, he also means military, but infrastructure is first, what is more important than steel? let's try to keep things sirmmp. i'm a simple guy. i went to north authoricarolina. i didn't go to harvard. but we like things if you drop them on your foot, they will hurt. the very basic incumbent circumstances of long term economic growth. steel is that way. ball bearings are that way. railroads are that way. i want to own the things that if i drop them on my foot, it will hurt. things that really are central to economic growth and steel is exactly that. yes, it's a little overextended, but most of the steel stocks have done a nice job correcting. i don't think they are overextended any longer. >> so you mentioned gold. the other side of that and you talk a little bit about silver, i know gentlemen don't trade silver. but would you buy -- will silver trade with god, is it a one for one type of thing? >> in bull markets almost always. one thing you can count on, silver in a bull market will always gain upon gold. i shouldn't say always. my wife would say be careful about that. so almost always. but this is one of those rare times when i'd rather say i'd rather own silver than gold except gentleman do not trade silver. >> i just want to jump in really quickly. if you talk about what is happening with gold and silver, are those the best places to play in the commodity space? you mentioned gold in euro terms. but if i'm looking at other places in the market, i novemkn you've had bearish calls on oil. if i look at the trump trade, what is the best place to play that? >> i still think it will be steel more than anyplace else. i really do. it's not a metal under most circumstances. people think of copper, zinc, tin. i think of steel. i understand that i'm a civil guy. >> and yevery time i see the letter x for u.s. steel, i think happy birthday to "fast money." love you guys. >> thank you. the one and only dom chu. and dennis, thanks to you. >> i think i was here the very first week if not the first show. you scraped the bottle of the barrel then and here am i again. >> does guy have more or less hair? >> guy has the same amount but i have demon strusly less. >> the inflation trade if you heard me, it's something i continue to believe in. the industrial metals took a pause i would argue in december. copper up 3%, ppi up 5.5%. that is good news for commodities. copper to me is the commodity that has the most supply/glapd demand upward pressure. >> i still have uri. and that is good. the thing about these are really big moves. remember these companies are so levered that the equities vice president moved nearly as much. valuations rather haven't moved nearly as much. so there could be more room to run. >> look at caterpillar for example. these guys have been all over the trade. kudos for sure. but caterpillar trades at around 32 times forward earnings. december 20, they reported retail sales which railroad not good. die kle declining revenue. you have to be betting every hole will have a cat tractor behind it. i'm not certain of that. so i'll be pulling the rip cord. and one trader is betting stock headed lower. mike khouw has all the action. >> so yes, we did see above average options activity and a lot of it was bullish as copper has been up and the stock up almost 18%. but the trade that caught me eye was a buy of 3,000 august 15 puts. $3.13 for that. you're paying almost 14% of the current stock price to make a bearish bet there. but of course as karen rightly pointed out, these are highly levered businesses. and in fact the stock has moved that much just since the beginning of the year. so maybe those positions don't seem quite expensive if you're looking either to make a bearish bet or head your long positions. >> thanks for that mike khouw. check out the full show 5:30 eastern on friday . hey gary, what are you doing? oh hey john, i'm connecting our brains so we can share our amazing trading knowledge. that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? i know. your brain told my brain before you told my face. mmm, blueberry? tap into the knowledge of other traders on thinkorswim. only at td ameritrade. you guys are the original. you guys are the best. >> congrats. ten years is a big one. >> it's been a pleasure watching. >> the next ten will be even better. i hope you continue with the same energy and passion you've had. good luck, guys. thanks, halftime crew. that was nice with a shout out. >> very sweet. >> time for the final trade. >> laid out great points for gilead. i like that stock here. >> and i hate to buy on days where the stock is up on news. however, i try to think if i already owned it, would i sell it here. no. so i bought it. >> and i feel like i will agree with tim again and buy fcx. i know, ten years but got to happen. >> dennis gartman-some of she's still mad because she didn't go to georgetown. got to dance with the girl that you brought to the prom. barracuda. >> i'm melissa lee. see you back here tomorrow at 5:00. enjoy the original music. "mad money" starts right now.5: more "fast." "mad money" starts now. my mission is simple, to make you money. i'm here to level the playing field for all investors. there is always a bull market somewhere and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. others are trying to make friends, i'm trying to make you money. call me, or tweet me @jimcramer. what if business is getting bet

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