about the santa claus rally, have a drink and think what will the world look like six months or a year from now and invest on that basis. >> what is your guy adami cocktail. >> it is called the iron man but i'll get guy find out about that coming up on twitter. that does it for "closing bell." "fast money" up next. and "fast money" does start right now. live from the nasdaq market site overlooking times square, i'm melissa lee. your traders on the desk are tim, steve, dan and guy adami. tonight on "fast," a great rotation that could stop the bleeding. a special report on where to put your money to work right now. and the force is breaking records. but shares of disney are having the worst day since the collapse back in august. we'll tell you what it is that has investors feeling the dark side. and later, can't take the heat. how to protect your portfolio for less than $5. but first the worst day on

wall street. the selling intensifying into the close. the dow closing down 367 points. the s&p 500 losing almost 2%. apple leading the nasdaq to big losses and here is what is really scary. there are erie similarities of what happened today and before the flash crash in august. two low closes into the weekend and both coming on a very big expiration friday. the following monday stocks opened up 1,000 points lower. are we on the cusp of another major selloff to come? guy, what do you think. >> it feels that way, mel. and we didn't talk about the selloff in disney was about a week ahead of the ensuing move to the downside and the s&p. and it does feel like there is another leg down. the sell was exacerbated by what we've been talking about the last couple of days. but in large part to the oil market which continues to grind lower and the bond market which continues to show strength.

and people waking up to the fact, in my opinion, the economy is not as strong as it suggests. >> not to be the fear monger ort debbie downer, here is another stat. >> bring them up. >> the second highest volume after the flash crash. what are the thoughts on the floor today, steve grasso. >> i think mike did a good job of fiking out the strike levels, but 20, 25 was a huge strike for expiration. so the lower you go, if you are below that, it is lower for the market. it is exacerbated the selloff. but to guy's comment about the economy. november ism, contraction, first time in 36 month. philli fed, lower since february 2013. november industrial production, lowest in 3 1/2 years. so i'm not sure the economy is as strong as janet yellen would like us all to believe. >> so you are saying the stock market is reflecting the weakness in the economy.

>> the options expiration is the 90% of it but there underlying on monday going into slow illiquid week and new year's, people will say are the economy strong and the answer is no. >> but back to the original question. are we going to see more losses on mond. but the other similarity is the flash crash and the selloff happened on what should have been light trading days on days when desks weren't fully staffed. this is late in august, a thursday, friday or a monday. it is weird. >> right. so the parallels are there. and also steve pointed out some economy data. the pmi this morning was the worst print of the year. so monday, i think we could have a hang over. but i'm looking at credit and currency markets and they are telling you a few things. when the dollar sells off on a day like today, people don't think the fed will rewind course but i think people squaring off books going into year end and that gets this going.

so there is no reason to jump in input on risk here. as many as -- as much as people are saying why it could go higher, 3% on fund managers, this is a very different post-fed dynamic and also year end. >> i would add this has been going on for months, since late spring. the path of least resistance is no longer higher and that is the equity investors looking at the end of qe and i think the fed put isn't there. and my biggest takeaway from the week is the fed didn't take back a whole heck of a lot of uncertainty. i think there is uncertainty as we head into 2016. there is a lot of bad economic data here and abroad. and i would make one point about where we close today. you think it is technical and doing with options expiration. we closed at 2,000. the high in may was 2135 and the low in august was 1865, do imagine here and we're there.

i don't think we'll get killed in the next 6 1/2 trading days between now and the end of the year. but if we do move higher, in january and february we'll have a nasty selloff because as we get into q4 periods earnings the realization the s&p 500 is under pressure, we've had two year-over-year declines and that may affect it. >> next week could be dicey. but what sold off hard today it wasn't the sectors that led the markets into year end. it is not like they are the big winners. not like financials are the big winners and we saw huge losses in financials and energy and home builders. >> b.k. talks about this, the flight of the yield curve. and does that matter for the banks. and the market today does tell you that. and i do think the yield curve continues to flatten and manifested itself in the ten year going down to 1.75%. >> what do you do?

people at home want to know, what do you do here? >> you have to be cog niz apt of key levels and stocks. and disney and apple are two stocks very important. disney down at 106, down to 103. that is the bounce point. so if you are looking for places where you should be taking chips off the table, i think you have to have levels in mind. and i think this is exactly where you are year end. it could get kind of choppy. having said that, i agree with what i think dan was saying is how bad is it going to be? i don't think the bottom will fall out next week and it would be dangerous to reposition your portfolio at this juncture. nothing has changed other than the fed and credit conditions continue to tick down. that is what you have to watch. and that is what is getting worse. >> so there are places that -- to trim exposure, places make to pick up a few things. grasso, are you trimming or buying? >> dan and i talked about that. you have to be a buyer of utilities. >> even though they sold off

today. >> they were up 5% for the week. guys will hide in those and yield. but i bought disney today. >> you bought more. >> 106 to 109 is the bouncement label in the chart. but i say this all of the time. 70% of the stocks will go down with the overall index. and if i feel, as i do, that the market is going lower, you have to be cautious how you buy and where to keep things on tight stock. >> have to be careful. and i'll tell you why. there are a trillion and a half dollars of market cap that have held up. those stocks make up 35% of the nasdaq 100. and we talk about losers, people try to hang on to the winners. and they may sell them early next year. so be careful on trying to pick on amazon or facebook and taking them into the new year. you may see weakness. >> do you buy anything? >> steve grasso, excuse me, steve. >> he is over here. >> he is not over here.

>> it is interesting. if you see it below 105. we know the operation is espn and the court cutting will be there for a while. i saw that movie. it is killer. that franchise is amazing. people are cheering in the aisles. but that is the point. at some point the fears about cord cutting will abate. >> $9.6 billion this year, they are going to take in. that might be a low number. >> guy, i want to know what you would buy or sell. >> what happened in the dollar today made context in the week. it didn't make sense on wednesday. but it is making sense more now. i thought gold would rally. i was dead wrong on wednesday. and now it is manifesting better now. i do think gold has a rally in it. you play it in the gold miners. >> despite selloff, with investors look into stocks. mike santoli says this might be the rotation that wall street has been waiting for.

cnbc senior markets commentator. joining us from the cyce. how does this market set us up for a great rotation? >> well this starts with an observation which was one of the biggest weekly outflows from bond mutual funds in history, for investment grade bond funds, the greatest in history. and if you make that observation, steve is talking about huge utility stocks and dividend sent rick sectors, that tells me people are spooked in a fed slowly trying to tighten. whether that is rational or not, i won't judge right now. but they are looking for bond equivalent substitutes. three years ago everybody was talking about a rotation from bond news stocks. late 2012, early 2013. it didn't happen. here we are, the market is up annualized 15% since then. bonds have basically stood still. and now you get people

grudgingly heading into stocks. so i don't know if this is a trend with legs but it seems like the idea of owning stocks for income and having stocks do the job of bonds for you might actually be something that more people catch on to. >> so theoretically, the reits of the world, the utilities of the world, tobacco stocks, those should do really well. >> they should do well. and the question you have to ask is, are you buying an overvalued equity to take the place of a bond. you could be when it comes to things like reits. but others are pointing out there are some individual companies where the dividend yields are higher than that company's own court bond yields like caterpillar or walmart and png. in that context, maybe it does make sense that you have upside in the equity to buy them that way. this is like a 1950s market. that is why you bought big blue chip stocks because you wanted over time that rising stream of dividend income. >> thank you, mike santoli. his column is up on cnbc right

now so check it out. but the yield being higher than the stocks than the bonds. on the stocks you shoulder more risk than the bonds. >> there is a major debate about dividend policy and this is nothing to do with mike. my stock could be down 5% tomorrow and there goes your dividend yield or capital appreciation or dividend yield, what are you playing for. when you think about this context, you think about what is going on with the dollar and credit and then make the dividend call. so find companies that have diversified model or a domestic business and benefits when the dollar is strong or not exposed to credit concerns. the financial move is not the yield kirve, it is credit and you have to be warned of that right now. >> bucking a very tuck tape. is the worst over for the tech play. and which are on santa's naughty list and who made the nice list heading into 2016. plus -- >> okay, everybody, i have to

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welcome back to "fast money." take a look at what is happening with disney. they have come out and said they expect that star wars: the force awaken ticket sales for today, friday, are now expected to top $100 million. now remember, they made $57 million on thursday. so again, the total take could be, according to disney, over $157 million for the first two days. they now say, in a statement, they appear headed for a $200 million-plus figure through sunday and the possibility of an all time weekend record which is currently $208.8 million which was jurassic world this past june. so again walt disney perhaps taking a victory lap expecting the first two days to jen ate over what could be $157 million in ticket sales and then they could be on pace to set a record in terms of the overall ticket

sales for the weekend. so again, more star wars and this time could be big enoughs from the box office. melissa, back over to you guys. >> thank you, dom chu. and a tough day for disney stock. rich greenfeld cut it to a $90 price target saying it is not the force. 50% of the operating income comes from cable and that is where you should be concern. management over-paid for sports rates and was too objective with the providers they could go. >> and they didn't think bob iger was being truthful and i thought was interesting. and it was a bold call and i was surprised that an analyst could send the stock down on a day where sentiment is good regarding it. the main point is this is an uncertain story. and the stock market has known about star wars and that it would be a blockbuster so i think it makes sense it is selling off now that people are calling into question the stuff on the network side. that being said, as you get

closer to $100, you could probably leg into it. it is trading at a multiple in line with the market multiple. this is a drand that deserves, in my opinion, a premium multiple to the market. >> doesn't the cable size worry you. reading through rich's note there is valid points there. >> definitely valid points. i love rich. when you look at cable, we know more about espn -- i heard this today on air as well. we know that story more than what we know what the star wars story will be in the long run. so if you look at the stock -- >> so you think the downside is better understood than the upside. >> one last thing. when you look at it in a skinny bundle, disney probably does the best out of everyone in a skinny bundle and i think people have overestimated how much they wanted to sell it based on espn and have underestimated the risk to upside numbers in star wars. >> i see the skinny bundle secular kind of change in the

media business as something that we really don't know. and espn is 30% of ebidta for this company right now, star wars, even if they hit the numbers we talked about is 7% or 8%. star wars is a ridiculous franchise. it trades at a massive premium. i'm long on the stock by the way. but it is massive premium. black bury bucking a down tape. the stock soaring 10% after reporting a third quarter earnings on the top and bottom line. and making a push away from hardware and into software and services. the ceo speak being that today on cnbc. take a listen. >> i think that the direction of our software business are pretty good. i'm quite comfortable with the fact that -- especially on the recurring side. we're running i think about 70% some in recurring. our goal for next year will be over 80%. >> tim? >> well, look, this is a company

that said many -- that had many different lives. mr. chan is doing a good job. software company growing 43%. brian is long in the stock and part of the reason is he and what you should look at the sum of the parts. it is generating free cash flow. >> brian being brian kelly. >> b.k. >> it took me a second. coming up, seeing red on the street today. but if you are worried about pain ahead, we'll tell you how to protect your portfolio for less than $5. that is coming up. and i'm melissa lee on "fast money." here is what is coming up on "fast." >> he made his list and checked it twice. we'll tell you the retails that could bring you nice profits into the year end. and the naughty ones giving the grinch a run for his money. plus hold the egg mcmuffin.

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welcome back to testimony. it has been a rough run for

retail into the holiday season. some names have been naughty, there have been some nice. so let's get to dom chu for more details. >> tis the season for the reference of naughty and nice. let's look at the retail trades. a lot of them have had a rough go of it. so we went to the mall directory map and checked out the names not doing great. tiffany's is down 32% year-to-date. bed bath and beyond that same amount. and macy's losing half of its value. ross and home depot posting solid gains throughout the course of the year. what is interesting about the trades, when you look at the charts they have been relatively steady up or down or resip tuesdayly for the names like tiffany. when it comes to naughty and nice, the retail trade is a tale of two different types. not everyone one have gone down.

there have been some outstanding to the upside. back over to you. >> so do we stick with the winners or go into the retail rubble. >> kroger had a rough week but was a winner and more of the names representative of how the consumer could act in a more difficult environment. watch home depot and lowe's are fading. >> you stick with macy's? >> they started the year out saying this is an investment year and going to the omni channel. investors loved it. they are thinking about monetizing rate. it is trading multiple year lows at $35. you take a shot into the new year. >> macy's made a three or four year low closing on a lousy tape. wish the volume was bigger. it wasn't. but at least it gives you something to shoot against next week. >> home depot up 24% year-to-date. you have to tick with that one. and look for the sell side to come in in january.

and decker is down 64%. i'm long that name. i think it will be an impressive spring for them. >> we've had a rough couple of days. so let's get predictions and trades and get you ready for monday because that could be an interesting trading day after the past two selloffs. >> so on monday, we'll have the hangover. but turn-around tuesday is what follows a bad monday. i'll be watching on tuesday. because ultimately we'll see people begin to settle in. a lot of the moves i think were extreme positioning and are leveling themselves out. i don't think markets will attack until the end of the year. i think people are not doing anything. and i thinks that causing -- lack of buyers, for lack of a better term. >> what would you buy or sell on monday and what would you watch as the key for the market and how it will trade on monday? >> i'm going to give you both. would you buy apple and i would buy disney again. with the key to the market, look back at the 1867 level in the s&p and match up the stock you are interested in buying. if it it is over sold, compare

the two. apple, 92 is the level. disney, 90 was the level. if you get a shot, buy them. >> and dan? >> the s&p is in a down trend from the november rally. i think you sell. stick around in "options action." we'll talk about the way to do it. but early strength next week you sell it and take some profits. >> big go away. i think the dollar has a chance to unwind. i think the dollar goes lower which means gold goes higher. if you are bullish in the s&p, you hope it opens lower. real quick, we got great pages out of the nbc program. i wish we could say the same about the ones we've had recently. i'm kidding. that is a joke. >> best in class. >> he's moving on to the olympics. he's producing them. >> and he's competing. >> and he's a shot putter. >> so thank you, jonathan. and of course happy birthday to

guy adami. >> 38. >> right after the break. options action. have a great weekend.

yikes. another tough day for stocks as the dow and s&p close at the low on a frantic expiration friday. guys back here will make sense of it all. while they are getting ready for the show, here is what is coming up. >> that is what was said about stocks today. but fear not. we'll show you how you could still protect your portfolio. plus, is mcdonald's run getting long in the tooth? [ singing ] >> well maybe not like that. but we'll show you what it is that has some traders having a mac attack. >> how would you