5%. i don't know the specifics. she's got this one right. >> that is a great place to leave it. >> not her biggest political supporter. >> thank you for being here. "fast money" coming up. what's on tap, melissa lee? >> opportunities in the high yield market as high yield is selling off on energy concerns. >> speaking of crazy, i got to hear this one. straight over to you guys. >> thank you so much. "fast money" starts right now live from the nasdaq market site in new york city, i'm melissa lee. piece najarian, brian kelly, karen fireman and brian adomi. the rally that couldn't. stocks trying to bounce back after friday's sell-off but another 4% drop in oil not helping the broader oil. the s&p closing below 2,000 for the first time since late october. with just 11 trading days left this year is more volatility ahead? we certainly saw huge increase, the vix up 76% last week. >> right. human rhuge run. with all the mochlts in the market started up over double digits to the upside, then the

down side 20 points, finished down 20 after guy rating up and down. the volatility index closed down on the day which i think would surprise everybody, surprised me. still over 20 right now however and that's indicating exing aly the kind of a market we're in. we've only been above that level a couple times throughout this year. there for a day in february, six or seven days in october and here we are once again. i think the duration could certainly last for a few more days. >> what do you think some. >> i tell you what -- >> with the fed meeting. >> i thought what was interesting a about today you saw the markets start to roll over before oil really started to turn. you saw the market between 945 and 10:00 start to weaken and then had that home builder number weaker than expected, still good, but weaker than expected and the markets started to turn. to me that starts to say, you know what, this sell-off is not over with and i'm going to be watching particularly tonight you watch that u.s. dollar/yen because that's the capital flow indicator and as that starts to come in you could continue to get selling in the s&p.

>> i was disappointed when we saw oil up only marginally. i think that to get to anywhere near a bottom, short-term bottom we need to see oil down a lot and then buyers come in and have some support. there was no support, sadly, and couple bucks down. it's painful. >> i think 1950 comes in for a number of reasons. in my world, a 50% correction of the october 15th low and recent high we made. 1950 comes into play on moving averages as well. feels as though that's where the s&p wants to trade. i've been in the camp that if the russell, if the iwm, can't get above 121 be careful. it didn't and now we're at 113. that feels like it wants to push down 108. those are the levels you to watch for on both holds the first down down. >> an interesting trade, the energy equities. you saw them try to remain positive much of the session. names like exxon which finished in the green today doing well. do you believe the thees sis equities will bottom before oil

prices? >> a lot are talking ability that. the upgrade effects didn't hurt today when looking at the equities but yes, i mean if they can stabilize and actually show us that despite oil going further down in some of these equity names being able to either hold support or start to move to the upside, i think that would be a sign and that's something, obviously, we're looking for. one thing i would say, pick a little bit of a fight with you. >> go ahead. >> let's do it. >> bring it. >> i still think what's bringing this market each and every time down, oil started ticking and it was moving and that acceleration in the volumes that came in, that pulled the market significantly to the downside. >> i'm not denying that. what i'm saying it was interesting to see the market start the trade on something other than oil. we did see the weakness in the u.s. economy. the empire manufacturing which was not great. you could talk about industrial production but if you strip out utilities in the cold weather might get to a flat number. i would agree with you, oil is still the main driver. >> yeah. >> but started to see some other cracks out there today. just quick, the oil, move in the oil equities was interesting

enough for me to cover my short today. >> why? because the xle is mostly large cap oil stocks and the trouble in hyg are the smaller oil stocks or bakken play. >> two reasons. one the puts i had are january, so some point i need to start monetizing that. number two probably more importantly somewhere around here on friday, the bottom in oil. if we get to $40 we're going to have a huge problem. somewhere in the 55, $56 range is probably the bottom on oil? to the latest news on the terror threat in the heart of sydney, australia. a 16-hour hostage standoff ending with three dead including the attacker. mandy drury a long-time native of sydney has been watching the situation all day. >> hey, mel his a sa. a tragic end. heavily armed australian police stormed the lindt cafe in sydney after hearing gunshots inside the cafe. they did free a number of hostages being held at gunpoint as you say over 16 hours and you're right, three people including the gunman were killed and four wounded.

more details are emerging about the gunman identified as an iranian refugee who came in the 1990s. his name man haron monis he is a cler i out on bail for a number of violent crimes including sexual assault, multiple charges of sexual assault, as well as being an accessory to murder. more pertinent to today's events, found guilty in 2012 sending offensive and threatening letters to families of 8 australian soldiers killed in afghanistan. as a protest basically against australia's involvement in the conflict and you might know australia is a staunch ally of the united states. it does appear he was a lone wolf. the australian prime minister spoke a moment ago and said he had a violent history, history of violent crime, infatuation with extremism and mental instability and the u.s. government has been advised by australia no sign at this stage that the gunman was connected to known terrorist organizations. nonetheless as you can imagine

the incident has sent shock waves around my home country with the last security scare all the way back in 1978 with the hilton hotel bombing. we are not used to this kind of thing on our own soil. back to you. >> thank you. >> let's turn to the day, what is now the worst performing currency of 2014. >> yeah. it could have been the worst performing currency just on the move today. it moved 12%, almost 13% today, which in currencies is an enormous move. let's just take a look at what's been driving this. we talked about oil. here's brent oil coming from -- this is about mid-july or so. brent oil see it start going down. that's when the ruble started to take off. this is u.s. dollar getting stronger. ruble getting weaker. what was interesting about today, is the russian central bank really didn't care or weren't allowed to care. they just raised rates before we got on the air but what happened was, on friday, the big state owned oil company sold about 625 billion rubles in debt. they immediately or so we think

immediately went out and sold those for u.s. dollars because they need dollars to pay off their debt. that's going to be continuing through alls the state-owned oil companies this month of december. big redemptions. so i would expect this ruble to continue to weaken. what does that mean for the markets, though? you have an internal problem in russia where you have inflation but the question is, does it force putin to be more aggressive and when you saw this move, in the ruble today, you also saw germany roll over and that would mean there's more sanctions coming to russia. that's what you want to watch on this. >> no surprise, rsx hitting a new low on the back of this. to breaking news out of russia actually. michele caruso-cabrera joins us on the fast line. >> hey, melissa. the russian central bank posting they've raised the key interest rate to 17%. that's up from 10%. they had raised it 100 basis points last week in an effort to stem the outflow of the currency from the country and the run on the currency. clearly, after today's

horrendous, traumatic move, the biggest single one-day drop for the russian ruble since 1998, the decline of nearly 10% if not more. they felt they had to do something. they raised interest rates to 17%. in addition they've announced they're going to increase the amount of money they have to try to buy back rubles in order to stem the decline. they're going from $1.5 billion to $5 billion u.s. dollars. unclear whether it's going to be enough. there are predictions within the market that the ruble is easily going to 100 and potentially 150. and bk is right, there's a lot of questions about where what ross is going to do with all those rubles. ross net says what he's saying is untrue but who knows what's going on. the fear is they will use those to buy dollars. imagine all those rubles coming on to the market that could crash the market more. clearly a traumatic situation for russia as they try to figure out what to do. >> thank you. michele caruso-cabrera. russia hiking its key interest

rate to 17%. let's bring in dennis, the editor of the gartman letter. great to have you with us. >> always good to be here, mel. >> is this going to do anything for the ruble? >> it may well do something for the ruble tomorrow. i mean the fact that you had just unbelievable panic today. i've been watching the ruble for several months, expecting to see it collapse and wondering when it would stop collapsing and thinking this was like zimbabwe reapportioned but the fact that you move 700 basis points tonight and they've increased the amount of money they will use to buy rubles tomorrow, you're probably going to send the ruble back five or six or seven big figures in the morning. the question will be, have the oligarchs finished selling what they need to sell, the sin mini oligarchs finished what it needs to sell the other major russian oil companies finished selling what they need to sell and i don't think they have. i think this will be a one day, one off six or seven figure

move. you had 13 or 14 big figures today. really amazing as he said, when you see something like this, 5% in the course of a year is a big move. 7 or 10 or 12% in the course of a day unprecedented. >> yeah. 48% in the course of a year so far. >> of the year yeah. >> to that point, doesn't it not matter what the russian central bank does if oil continues to fall? unless we find a floor in oil it's like you're swimming against the tide, aren't you? >> oh, they are swimming against the tide. this is a rear guard action. i've seen central banks do this sort of thing many times in the past. the mexicans used to do it in the 1980s. this is not an unusual circumstance and almost always, not always, but almost always, a rear guard action that ends up being something they wish they hadn't done. all it is a temporary stem in the decline of the ruble. this is as i said probably going to 100 and once you get past 100 pick a number. this is -- this is really quite

extraordinary to watch and the problems it will create for the russian economy and russian people and mr. putin, very severe. >> gold had a rough day. a headline at some point saying russia may be forced to sell gold reserves. >> yes. >> i don't believe it. are you surprised by the move in gold and do you think there's any voracity to the comments about the gold -- russia selling gold? >> i wouldn't be surprised at all if the russians were selling gold. they have no choice. what else can they sell? can't sell crude oil anymore. putting pressure upon it. they have wheat they could sell. i'm not surprised at all that there were rumors of the russians selling gold. it is liquid and as you know, you've been in the gold market a long time, when stock prices get weak what's the first place the margin clerks go to sell, always can sell gold because there's enormous lickety there. i would be surprised if they weren't selling gold. >> dennis, last question, we're out of time, got to be quick but in terms of oil do we see oil

with a 4 handle? >> yes. you see oil with a 4 handle. i think you see oil with a 3 handle no question. >> within what six months? immediately. >> pick a number, no, not immediately, mel, but probably within the next several months until the term structure changes, the front months stop leading the way down, until you can stop seeing the contango widen in brent and wti crude heading lower. any rallies have to be sold. we'll see a 3 handle before this is done. >> great to have you. thank you. dennis gartman of the gartman letter. if we see a 3 handle or 4 handle doesn't that make the hyg short more attractive. >> it does. >> put it back on. >> i put it back on in the rally, absolutely. listen, i think if you see a 3 handle in the -- in oil, you're going to have to really question what's going on in the global economy and to me, that would signal a severe contraction. >> i thought you had a theory possibly that russia could back their currency. >> i did there v that theory.

doesn't look like it worked today. >> anything about possible -- >> i actually think so. they will -- they will have to do so something once inflation in russia gets bad. it's getting bad and with this move it will get worse. they will have to do something. they own a lot of gold. to me that would have -- that's the highest probability, you back a currency gold makes it stronger, inflation rate comes down. >> finding opportunity in junk. concerns over energy high yield bonds are going main stream. we have someone who says there are places to buy in the high yield space. he'll tell you where coming up. twitter getting an outperform rating today but the stocks still cannot rally. we have a twitter bull who says buy the stock right now while everyone else hates it. right after this break.

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welcome back to "fast money." we want to check out how shares of verifone are trading. the company reporting better than expected fourth-quarter results as the maker debit and credit card readers gave a weak first quarter outlook. its stock is higher. last quarter earned 44 cents a share. x items 3 cents a share. earnings are seen at 40 cents, 4 cents below estimate, full year profit outlook below consensus. the stock which has been on a tear lately up about 23% over

the last year or so, extending those gains in afterhours up 2%. back to you. >> mary thompson, thank you. guy. >> something for everybody. a bear, the guidance was lousy. if you're a bull the margins were better. i'll take the bull side and say improving margins are good in this space. to mary's point the stock has been on a tear, has rolled off from 38 bucks. it had trouble there most of this year but i think you can buy it here and i don't think you have to risk that much. you risk 31.5 to get you 38. >> let's talk twitter now. it could not rally today even after j and p securities initiated the stock with an outperform rating. shares of twitter have fallen 42% this year despite analyst support why does wall street love twitter so much. let's bring in managing director yousef who has a buy rating on the stock. >> thanks, melissa. >> analyst after analyst come on the show and say why they're so bullish about twitter and yet the stock trades awfully. what do you tell your clients? >> look this is by far the

largest -- the stock with the largest volatility in our group, so it went as low as 30, went as high as 74. really depends on how you position yourself ahead of an event. the next event happened for twitter earnings and i see the setup going into q4 as being very similar to the setup we went -- we had going into q2 where the strock was around 30 and then rallied on not a great quarter but decent quarter. we think expectations for the quarter are muted. so far, all the channel checks we've had in truck order which suggests the order is doing pretty well and again, if you look at just the top line consensus reflects about an 87% year on year growth. over 114%. i like going into a quarter with muted expectations. >> it sounds like you're telling your clients that this is a trading stock, that you -- it's difficult to buy and hold

because of the volatility associated with stock and yet you're a long-term analyst with a 12 month price target on it. >> 12 month is not a five-year target. i'm not sure this is the best stock i would put in my kid's college fund. i do think it is more of a trade in stock. look at the list of shareholders up until now it's more the fast money. >> okay. fair enough. but let's take facebook for inns stance. you cover facebook. i'm assuming you have a buy rating on facebook as well? >> facebook is our top pick going into 2015. we like facebook more than twitter just to put things in perspective. >> more than twitter. the volatility in twitter stock does factor into your recommendation of it? >> absolutely. it needs to. >> it needs to. okay. >> yousef, i have a question for you, in terms of the monenitization, j and p was talking about the fact they look at this as the early days of monetization. do you see that growth and how's their monthly active users?

how is that growth there? >> those are two questions. in terms of monetization that is absolutely the case, monetization is running at about $4 a year, facebook is running 8 or $9, and most of the growth -- virtually all of the growth in twitter is coming from monetization. so we think that's probably going to continue because internationally, where they have three quarters of their users p monetization is one-fifth of the u.s. we think that's going to be a driver. but to your second question about users, that's the wrinkle. their user growth as not grown as fast as we would like it to grow. only grown around 20% for a company that keeps saying over and over again they want to be the largest social platform out there knowing they only have 300, even less than 300 million users they need to reaccelerate that, you know, that metric a lot faster to -- if they want to ever catch up to, you know, even where facebook was three years ago. >> yousef, thank you. >> you're welcome. >> joining us on the fast line.

what's your trade? it's interesting you have to embrace the voltity. >> i think the instagram headlines hurt these guys. if you want to play the would you rather game, i see you chomping at the bit. >> always. >> it's facebook. wouldn't you rather facebook or twitter? facebook. i think the last quarter of facebook was outstanding. the headlines on the back of the quarter scare people. it's traded well since. i think when they report at the end of january seeing $85 stock. >> i still like the twitter. i still much like -- >> still like the twitter. >> said it right there. facebook is monetizing at $8, twitter at 4. if twitter goes to $4.50 that's all they have to do. i know the stock traded terribly today. the market was terrible today. >> trading it terribly all year. >> not over the last week or so. >> fine. >> want to be aggressive, 3462 your low last week, use 34 as your stop and be more conservative wait until it gets through 40. >> from alibaba to gopro 2014 a year full of hot ipos at the height of the market run-up but a lot of those solid performers are now taking a turn for the

worse. karens has been taking a look at the few ipos that have fizzled out. >> wayfair you might know, very popular, lot of on-line furniture, josh and maine, as well as wayfair came out super hot, traded up into the high 30s from 26. featured under 20. very expensive acquisition costs for them. the model isn't quite working right. >> acquisition costs meaning new customers. >> right. >> they did not expect to be operating cash flow positive but this was a little more expensive than i thought it was going to be, even though i liked the concept. that one we haven't touched. another one, out, out, out front media, this is cbs, the spinoff, outdoor, and this is a reit actually so sort of an interesting structure to have outdoor media billboards as a reit. i like it. it's down a little. this to me is the safest one out there. then we had looking for the baby

in the bath water. >> right. >> the one you would actually might buy. >> would be out, actually. the ep, epe, this was an apollo led deal in the energy space. anything in the energy space absolute disaster. came in at i think 20, featured at 7, so i don't know if there's a decomposing baby in the bath water. i'm not sure. a ton of debt on this. i don't -- i mean it's an interesting collection of hedge fund holders and you got to have -- you got to have balls of steel. >> oh! >> oh! >> i thought you were going to say stomach of steel. >> oh, no. >> a whole other body part. >> you know -- >> good call. >> you would buy out. >> yes. >> of the three. i mean there's lots of energy stuff you can buy that's been massacred. this one with the debt, they haven't fully hedged. they're in the exploration production of natural gas, oil,

in, you know, hanesville, wolf camp. >> this reminded me of -- >> all the words are bad right now. >> when karen said featured at. pizza broadway guy, phantom of the opra, begin selling now at, phantom of the opra stuff. >> break into the song. >> any moment. >> the market wasn't so bad we would break into song. >> well, selling now. >> out of those -- >> that is your vine. >> out of those ipos -- >> epe. >> really? >> it's been a ridiculous sell-off. for a trade. >> for a trade. >> that's the game. for a trade this could get you done. >> likewise would you go into like a whitey petroleum or oa s oasis. >> going to play this quickly, it's when reg does what they need to do, cut the dividend by something. >> coming up next, deutsch bank making a bold call on ford saying the popular f-150 model may be in trouble. the details next. later junk bond worries spreading beyond oil. someone who says there are

pockets of opportunity amongst the carnage. that's coming up. >> from record-breaking highs to major market meltdowns. every night the "fast money" team makes sense of the trades. serving up in-depth analysis and actionable advice. >> i think this is a dip i do want to buy. >> to help you prepare for the next trading day. >> if oil stabilizes you will get a tradeable rally in equities. >> this is "fast money." >> i think gold goes lower, emerging markets continue to struggle. >> have a markets question for the "fast money" traders, tweet us at cnbc fast money.

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welcome back to the fast if five shares of boeing which is trading higher in the afterhours session after the company raise the dividend and increased stock buyback program. the aerospace giant a lone winner one of the few in the dow today increasing its quarterly dividend by 18 cents to 91 cents a share, an increase of 25%. it's raising its buyback program to $12 billion from $10 billion. the firm's ceo crediting the strong performance across all of boeing's operating units. that's the reason for the dividend increase and buyback increase too. back to you. >> mary, thank you. all right. let's trade this up. you had been short boeing at one point. >> i was short of boeing at one

point in time and i would look actually to short this again on a pop here. and the reason why is they get most of their revenue from the emerging markets and we know the emerging markets are not doing very well at all. so i think boeing at the very least you take your profits and if it gets through 120, katie bar the door it's going way down. >> i tend to be on the opposite side. >> i knew it. >> more on the bullish side of boeing. it had a huge run, let's be honest, over $140 a share and then did pull back. i think this pullback is the opportunity that you're looking for to actually add into boeing. i like what they're doing with their cash right now. it makes sense. >> let's take a look at the top trade. down day for the automaker after deutsch cut from a hold to buy, saying u.s. vehicle affordability is coming to an inflection point and the analyst points out, quote, ford's new 2015 f-150 power train light weighting and safety technology is one of the early e of the fourth quarter change. we question whether consumers will pay with to $3 gas in a

rising rate environment. costs more money, gas is cheaper. why are consumers going to buy this? >> the downgrade might make sense but i think the reasons behind it, pete's an f-150 guy. >> giddy up. >> loyal people out there. they're going to buy f-150s, $8 gas doesn't matter. i would push back on that front. i think the stock flushed in the middle of october. you had a great rally and felt like the mojo was behind it. wave given half of it back. almost exactly half. how do you trade it, trade it against 14 bucks from the long side. the autos might be at the end of their cycle but the stock might be interesting. >> we're in the sixth year of the recovery. >> i am afraid that autos are at the end of their cycle. gm i tried a couple times, i think i lost money both times. they have put out gigantic numbers, gigantic. remember in '08 when gas so expensive the autos did horribly but part of it was that.

here you have gas, you know, cheap as we've seen in years, great numbers from the autos and still can't get out of their own way. makes me afraid the cycle is over. >> i agree with guy, $14 number is important. they hold on to that $14 number the stock has legs to the upside. people do understand oil prices are not going to be down here forever and not going to see gasoline prices down here in the lower 2s. that ends up eventually working well for the f-150. >> the f-150. >> giddy up. >> can you reach the -- if you got in an f-150 -- >> she could. my wife does. she's shorter than mel. >> i'm average stature, guy. >> where? in oz? >> so mean. let it go. so mean. >> that was wrong. >> coming up next, opportunities in junk. hitting the streak but not all bad. the areas worth buying. the chinese smartphone maker that could be in the nail in the coffin for samsung and a major problem for apple. stay tuned. (vo) watching. waiting.

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still ahead, the oil sell-offs, sending shock waves through the high yield market. someone who says there is

opportunity in the junk bond space. he will explain. we've been talking on fast but now the chinese company going mainstream and has samsung and apple in its cross hairs. the details coming up. one trader making a bet that more volatility is coming. we'll tell you what the bet was. we start off with the market jitters surrounding crude's price drop. fear it could create havoc in the junk bond area because energy is a large component of the high yield market. bill gross formerly of pimco weighing in on street signs today. >> it's not a great bet at the moment. you know, it's moving higher in terms of yield spread and as the economy slows, which i think it will, now based upon the oil price, you know, i think there are better alternatives in treasuries and those good-old fashioned tips. >> prudential's greg peters has been trimming the firm's exposure but says there are opportunities elsewhere. great to see you. i want to get at the notion that

what's going on in the energy patch could have broader implications for high yield in that this could, the low price of oil, could trigger energy defaults and trigger high default rate on the index overall? are we close to that tipping point? >> no. i still think it's early. you've seen the dramatic reprising in high yield over very short period of time. it's been driven by the energy sector. just a few months ago, the energy sector actually traded through the high yield market and now it trades about 300 basis points wider. you've seen a massive reprising as you mentioned it's 20% of the high yield market. but the bigger issue that we're facing right now is the quote/unquote contagion risk across all fixed income. you have such large portions of energy bond exposure from em to investment grade that you have to worry about that become a self-fulfilling prophecy in here. >> let me ask you on that point, very often the pendulum swings far past fair value and so if

your you're saying we're early on, we could see more pain and forced redemptions. would you feel comfortable stepping in here? do you think it's sold off enough? >> i think it's a touch early but i would make a distinction between energy related names and nonenergy related names. what we've seen over the past week, particularly in the high yield side where you have seen the redemptions, we saw a massive amount of outflows on friday, and on the tuesday before, that does core late the entire market. so that's where the opportunities are. so i think it's too early to step in on the energy side, but i think on the high yield side broadly speaking, a lot of good opportunities are being created as a result. >> i want to narrow this down and get the fine tooth, fine print on this because a lot of people are able to invest in hyg, the etf that tracks high yield and that's a broad measure and you're greatly exposed to

energy which is 20%. is it too early to step into hyg? in terms of the pocket of energy are they specific sectors versus the broader index. >> i think it's too early for a trade. i don't think it's too early to inve invest. so i don't think we'll ever be able to catch the bottom or the wide and spreads here. but i do think 7.5% yield over 550 basis points of spread, you are being enticed by that. so while it might take a additional leg down from a broad market standpoint, i think from an investment standpoint it makes a lot of sense. then once again, outside the energy space, which to your point is really difficult to do when you're just being an etf or a broad market exposure, nonetheless it's creating opportunities, particularly for managers who have been underweight energy. the issue is, most investors have been overweight energy and you have this negative technical that i think will weigh as you

just have to continue to sell your exposure if you're overweight. >> if you're looking for opportunities within high yield in a specific sector, where would you go? >> so we're going to the consumer related area, particularly in the u.s., the consumer is a direct beneficiary of what's happening with lower gasoline and energy prices. we think that flows through into the bond prices there. we continue to like utility sector. we like portions of tech. sos those are really the main areas that we are focused on at this point in time. >> greg, got to leave it there. thanks so much for your time. appreciate it. greg peters of prudential. you put on a trade today in high yield. >> yeah. actually we tried to buy more today. north atlantic drilling which has been a disaster on the equity side but they will make good on the bonds. but it's interesting, capital flows so much more quickly around the world and you hear howard mark saying i want to start buying energy high yield or a carlisle and they could raise practically unlimited amounts of money.

i think it will be very hard to pick the bottom. i know i will not be. i'm certain i am not be able to pick the bottom there. >> listen i think it's too early. if you're just buying hyg it's too early and tough to get exposure out of that. the risk is the yield spread gets to a point where it's no longer profitable for companies to issue bonds and buyback stocks. that's why you're concerned. >> time for pops and drops. movers of the day, pop fo for petsmart. >> what's more interesting what does that mean for the brick and mortar. an interesting note out reaffirms the moves we've seen. the space had a nice day. look at costco, best buy, look at bed, bath & beyond. i think out of the three, costco is the most interesting but the fact that most of them are all green today, lends credence to that argument. >> pop for cirrus logic. >> coming off the barclay's upgrade where they raised the estimates not just for the

revenues but earnings per share going forward. not just apple but potential for samsung. all of that pieced together, the stock had a monstrous move up almost 21 or over 21% today. i think that actually could continue. big move but i think the stock has more upside. >> drop for green mountain down 1%. >> this surprised me. i didn't think the news they're moving their coffee buying away really was that big of a news or that negative, so to me seems something might be brewing here. >> ha, ha. >> down 4%. >> yeah. really, golar is an energy stock. that's why it was down 4%p. i don't think anything in the weeds. after the bell they did announce they are dropping one of their assets into golar partners. the structure they've had in place for a while. it's just -- i don't think that matters. it's an energy stock. tough sledding, great management team. >> time for unusual activity. pete has been flagging a move in isil. >> the tick eer symbol engaged

power management. look at this company when they unfortunately had their estimates lowered their outlook. that pushed the stock down from 14 down towards 12, now here back again over $13 a share and they're coming out and buying but going way out buying the july 13 calls. huge numbers to what we see in here. does not nrmly trade a lot of options in here. that's a massive number. buying those starting at about 1.50 looking for the stock to move up. they are exposed in every industry you can imagine from the industrials to aerospace they're involved. it seems to me, somebody wants to see or they expect to see the stock moving up towards that 14, $15 number. >> still ahead, could a chinese smartphone maker be the threat to apple and the end of samsung. a global takeover, that's next.

♪ my guy's kind of music. >> love her. like nine of her conserptss. >> only know that because the producer told you in your ear. >> liar. >> he wouldn't have a shot. >> apple's next threat may be

gaining steam. china's smartphone maker gaining market. joining us now is research manager ramon lambist. great to have you with us. >> thanks for having me here. >> share numbers and they're spectacular and we also got the results from a filing for the 2013 revenues and profits. they make a lot of money, but they also spend a lot of money to the point where their operating margins are 1.8% or were only 1.8% in 2013. are they poised and of the right mindset to do the expansion they're talking about, plus make all these investments that they're also talking ability into things like original content, and video platforms? >> well, there's a lot of pieces that have to come together to be a successful smartphone company. having content is one piece and having a platform is another thing. but it comes down to this. where's that device at? and for xiaomi to grow and push against companies like apple and samsung, they got to create their own niche and samsung and

apple are playing at the high end of the market very well. xiaomi has gone for the mid-range, low cost smartphones within emerging markets and if you take a look at growth in 2013, the smartphone market below that $200 price-point very successful. account for about a third of all volumes for the year and xiaomi had a big part to play. looking how they succeeded in that area the pieces are coming together for it to be a global contender. >> it's interesting, when we talk about xiaomi it's in the context of taking share from an apple and samsung should the third tier players be more concerned? xiaomi is talking about going into areas like indonesia brazil and russia where you mentioned they are the lower cost devices. a player like a nokia should be worried. >> well, of course. i mean i think any other vendor not named samsung and apple should be worried and that includes all the other chinese vendors like equalway, lenovo,

alkatell, all playing the same games. when you bring in nokia or motorola, the companies we've known and loved for many, many years, since the smartphone market first got started, but these are companies that by themselves are in different stages of transition. so, you know, if they can't play in that low-cost game too, without a significant differentiator, then they're going to be looking more so from the sidelines than be on the field. >> hi, it's brian kelly. we have this stuff that says apple versus xiaomi. apple is known as an innovator coming out with new products. it seems that xiaomi is a copycat. do they have a research and development area, are they as aggressive in coming up with new products as apple is? >> well, in terms of the products, you know, don't hear much of xiaomi but back in china they're known as the apple of china and so if you take a look at the devices they come out

with and some of the experiences that they're leading with, social networking, very popular here, very popular in china as well. camera technology, another one. multimedia. these are areas that smartphone makers have to be successful in in order to gain volume and gain market share. and if they're not, very -- more often than not, customers will be very fickle and say we're going to the next vendor, thank you very much. but for xiaomi to say we're going to give this at a very, very competitive price, that's what's going to help drive their volumes further and further. >> ramon thank you very much. joining us. let's talk about -- because consumer electronic show in january is coming pup xiaomi is going to be there unveiling its phones alongside apple and samsung. the normal people who are there. >> and blackberry. that's the one i think -- i like blackberry, long blackberry calls but they're the ones that's going to be the biggest threat or xiaomi the biggest threat to them. >> i would have asked him the

nokia question before you -- after you asked the nokia question it seemed redundant. makes me think the low-cost phone business is so scary, it's sort of a race to the bottom, margins getting compressed and compressed. you have to have a lot of r&d, come out with new products but that seems safer to me to be in an apple a lot. >> qualcomm. we thought we nailed it november 6th when it flushed out on huge volume traded down to i want to say 67 and change and then saw the rally to 74. looked like it was off to the races. here we are at 70 bucks. trade it from the long side but the price action has been awful. obviously the broader market hasn't helped. against that 6, against the november 6th low you trade qualcomm from the long side. >> karen's point she's talking about the low cost and marp begins squeezed. look to the apples, maybe the samsung but the apple because of that. they are drawing in and getting people exposed up to the 6 and then they're going to the 6 plus and then actually going to the more expensive, right, looking

for more and more. i think because of that you want to start to look at the plays like guy brings up. a qualcomm out there but the microns of the world, cirrus logics. they're servicing apple and samsung. i love that aspect of it if they can get into the samsungs, tell you what, cirrus logic has a upside. >> we will tell you why traders think we're in a bumpy ride heading into january. much more "fast" straight ahead. cute little guy, huh?

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uncertainty in the market sent fear surging 40% in the past five trading sessions. some are betting volatility will continue to spike into year end. mike in austin with the action. >> it's interesting. the vix options have been quite active for several trading days. we highlighted some of that last week where some were focusing on 30 as a potential target but today about two times the average daily call volume and the january 30 calls most active traded over 70,000 contracts. one of the trades was almost 50,000 contracts. i think people might think the vix is abstract but the

important thing to remember, obviously inversery correlated to the s&p so as the vix is rising the s&p declining and when the vix has been above 30 in the last five years only happened twice and in both cases the market was down well over 10% from its high to low and the average decline was closer to 15% when the vix was above 31 which is where it would need to be for the calls to be profitable. >> mike, it's karen. what do you make of the vix went out actually i don't know not down -- not up today with the action in the market. >> i think that's a really good question. people should be asking. actually the question they should be asking is why it is actually as high as it is with the s&p not even down 5% off of its highs. normally what we would have expected to see would be the vix probably somewhere in the 16, 17 range, with a 3.5 to 4% decline from the highs over the period of time we've seen. the vix is front running the s&p's declines this time which to me highlights that people who are looking at this are expressing quite a lot of

anxiety. >> thanks for that. check out our live show, 5:30 eastern time on friday. coming up on "mad money" tonight crimmer hs a triple threat of exittives, got a global perspective from the heavyweights happens at the top of the hour. first move tomorrow when we come back. stay tuned. tdd# 1-800-345-2550 [ male announcer ] your love for trading never stops, tdd# 1-800-345-2550 even on the go.

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time for the final trade around the horn. >> we had that unusual activity in isil. i think that stock goes higher. >> beakers. >> we talked about ford having troubles. i think toyota could have troubles if you get a stronger yen you have problems with toyota. sell that short. >> karen? >> you know we've talked about retail and the tail wind of having lower energy prices. i think deckers is going to do nicely this season. it's cold and consumers have money. >> guy likes those uggs. >> that's right. >> wearing uggs. >> i can't lift my leg that high. okay. >> people say that i was mean to mel. i wasn't mean. >> it was in good fun. >> all in good fun. >> good fun. >> pete will like this by the

way. coke made comments in the aftermarket they have outlook fiscal 14, fiscal 15, selling off in the aftermarket. holds 39 bucks buy with both hands, coca-cola gets you done. >> thanks for watching. see you tomorrow at 5:00 for more fast. "mad money" starts right now. >> my mission is simple. to make you money. i'm here to level the playing field for all investors. there's 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 creigh amir ka. my job not just to entertain but educate and coach and teach. call me. or, of course, tweet m me @jimcramer. here's an idea for my new stand-up routine. i'm not kidding. humor me here. i should start every show with, if things are so bad out