watch now, very quickly. >> i get messages on it, i get who is calling me on my phone and it will wake you up. it is a great -- as well as tracking your fitness. >> it has held up better than go-pro, talking about devices. >> good to see you. >> good to see you both. >> and we're here all week on "closing bell." "fast money" is up next. see you tomorrow. "fast money" does start right now. live from the nasdaq market site, overlooking times square. i'm melissa lee. the traders are tim, david, brian and dan. tonight on "fast," as goes oil, as does others. and dennis gartman said there is a new normal for the crude trade and it could send shock waves through the markts. >> and one of the biggest gainers, and the amazon rally is just beginning, the next big catalyst to send it to the highs. and that is coming in the next six months.

and the biotech nightmare that lost more than half of its value and what sent the stock cratering. but first renewed fears over china, the shanghai falling more than 2.5%. industrial production, a revamp of the ipo system weighing on investor sentiment. this was chosen as the top business story of the year. 2015. so for 2016, could china but the big wild card for the markets. tim, what do you say? >> i don't think so. i think we obsessed over it in 2015. china has a major credit problem and they are the biggest part of the problem. i think the things today were the drivers, the currency is at fresh lows. and the yuan, you could read it 234 terms of deflationary forces and read it in terms of the economy outright or a competitive deval around the world but i think we priced that in. we'll get china pmi on friday night. the numbers that were out were

nah. and what china is going through, people pay attention to. when liquidity is terrible, it makes sense people are concerned. bigger issue in '16 than '15, no way. >> i agree with tim. this is a country growing for three decades and they are going through a transition and it will take time to ease out of that. i don't believe it will be 2016 that we see a big change there. the biggest impact in 2016, i think is hedge fund redemptions and energy defaults or energy companies going out of business. that is going to be what drives the market in 2016. >> do you agree? >> couldn't disagree more. >> bring on it b.k. >> so, listen. in august, the one thing that hurt the stock market was the china devaluation. that was a 3% or 4% devaluation. compared to other emerging markets, it has a long way to go.

you could see a 10% to 20% devaluation. and that will get everybody concerned about what is going on in china. and the only reason it is up is because of the stimulus program. they are building the extra buildings they didn't need before. china is a disaster. now whether or not it blows up, i have no idea. they could pull a lot of leverage. >> will it be a drag for the u.s.? >> it will be a drag for the u.s. >> let's talk about apple. 25% of the sales last quarter came from china, growing 100 year-over-year. and look at apple's relative underperformance. and here is a company getting a ton of growth from china. >> but it is an apple store. >> you look at the best-performing stocks, look at starbucks and nike. they are outperforming in china. and when the shanghai composite went up 70%, the s&p 500 went up

5% -- >> what was the question. >> we're talking about the economy but let's talk about the wealth affect that people suggested could be -- >> what was the question she asked. >> are you asking the questions or is mel asking the questions. >> will it impact the u.s. stock market. >> let me finish. if you look at s&p 500 profits or revenues, it is about 2% to 3% coming from china. so ultimately we have a question that we're talking about the u.s. stock market. are we going to be taken down. we started saying china is about to blow up and i don't think that is a reasonable conversation. >> you didn't think so in the spring either. >> and was i wrong? >> look at the u.s. stock market. it is flat. >> but the volatility we're seeing in the commodities and credit markets all over the world have to do with what is going on in china. for you to say it is so powerful. >> the question was forward-looking. let's not look backward and talk about china. >> and let's look forward. there could be two different parts of china. there is a consumer area and that has done quite well and will probably continue to do well because of the wealth affect. there is a growing middle class.

and the industrial side of china, and those companies, freeport-mcmoran, they are paying. >> in the price. >> listen, look at caterpillar or any of these. >> will we see impacts? >> but is it in china. >> but is it purely china or oversupply of the kmods in a way -- commodities? >> it is a combination, right. >> less demand, more supply. >> you said the story for 2016 is credit -- defaults in the commodities space and how will that not flow over to what tim just said. >> they need to be ratcheted in. they are extended. it has nothing to do with china. >> but if you look forward -- at the chinese economy and it continues to get worse, the cost that they reevaluate or get their debt again is going lower. >> i agree with that. >> we obviously has a rift here on the desk.

it breaks from one side to the other side. how do you express your views then? you continue to churn as normal? >> i tell you what, i think the first quarter, we may share a similar view in the direction of the market. in the next few months we'll have a lot of fed injected. the headlines out of china, i think it will continue to weaken. but i do not believe that the chinese corporate sector will spill over into the high yield markets under pressure. how i do play it? i would wait for a pull-back from the consumption led story in china that have been good when they pull back. that is bade baidu and others in china. >> how do you look at it. >> i look at the consumption. jd.com is a perfect example. i think it is a buy. i think this is an amazon five years ago. you are looking at a company

going head to head with baba. the difference is there is a quality. baba is the mall of the internet. but jd has products and people trust it and that is a stock to watch. >> how do you express it? >> ewh. that is your etf. big explosion in china. but they have a currency peg here in the u.s. so in 2016 you could see that peg break and that will make hong kong stocks stall. >> and when the shanghai goes through 3000 on the down side, there will be volatility in the u.s. if you want to take advantage of the downward opportunity, you look at jd.com and alibaba and baidu. >> that is good to point out. because you do agree there could be an impact on u.s. stock market. that doesn't mean there is still not an opportunity. >> of course. you mentioned it, the industrial shift for the consumer and that is where you want to be. >> crude oil closing at the dead

lows. falling 3%, dragging the market with it. will stocks be able to break out of the group in 2016. dennis gartman, the editor of the gartman letter. in long-term there is no correlation, but lately it seems like intra day as we see oil hit 11-year lows, the stock market will go down. when will we break that, do you think? >> i think you are right, in the short-term, from minute to minute and hour to hour, even overnight, as goes crude, so goes the stock market. but if you look at month over month, half year over half year, year offer year, has goes crude oil, stocks go in the opposite direction. and i think too many people are focusing for too much on what crude is doing and predicating stock trades on crude going down or up. better to leave crude alone. and over the course of the next year, as i said here last week, i think the time for being short of crude is over. i'm not sure the time for being

long on crude is upon us. i think it could be either side of $37 for a long period of time going forward. and that will be beneficial to stocks over the long-term. so i'm amused as those focused on rally of crude oil, stocks will going up and it falls 30%, stocks will go down. over time, the correlation is negative, not positive. >> dennis, it is b.k. the reason why everybody is concerned about oil going down is 25% of the high yield market is energy. we've had a debt binge on all kinds of commodities and oil is the proxy for the commodities trade. what is different? it seems what is different this time is oil is attached to everything we are doing in, particularly in debt area and that comes to the u.s. why is that different in your mind now? >> i'll accept your argument. i'm not that concerned about what the debt circumstances are going to be. we know they are going to be a

lot of bankruptcies after the turn of the year. not a question. dallas and houston looks bad. we know that will happen. we know the permian has bankruptcies but could crude oil go below $35 or $30 a barrel. i think not. i think at this point crude oil would like to go sideways and i think it will do better if crude oil gets quiet and i think that is what will happen. everybody thinks crude will be volatile. people want to bet it will go up or down. nobody wants to bet it will go sideways and i bet it goes sideways. and consistency of price is probably the best thing that we could have happen to the economy. so that is my bet nor the next year, beaks. >> why is this good for the stock market. is that crude oil will stabilize and stability is a good thing for investors? >> bing o, absolutely. >> so not it is a flow-through to the economy or anything like that. >> no. stability is the best thing you could get for any economy.

and what's more what, is the most paramount more than food, crude oil. energy is the most important thing. if you could get crude oil and natural gas to stabilize at these prices an maybe go just a tad higher would be the best thing you could have for the u.s. economy. it would be the best thing for the global economy. and my best is that is what is going to happen. >> dennis, good to see you. thank you. >> thanks for having me on. >> dennis gartman of the gartman letter. how do we trade this? stability could be a great thing, particularly when it comes to the oil companies. >> energy shares is clear. the question on the correlation, if you look at the r squared or oil to the s&p over the last six months it is probably two times, in the last three months, it is four times the long-term average. there is no question it is doing something here. but eog, apg, hess, murphy, they have great balance sheets. stability in oil price mean they will go higher. and another thing weird in

today's session, besides the decline, is bren traded below wti for a long time. >> look at what iran said. >> for a couple of days. >> iran, and we talked about this in shoate as far as the -- show as far as the amount of supply, they are going to have their foot on the jugular of the u.s. producer. there is no question that will come out faster and quicker. so 500,000 barrels a day is expected. there is probably another 250,000 barrels that will come in, tremendous amount of supply people are underestimating. i think you could see oil go lower and the equities go -- really get crushed when you see the bankruptcies and that is from blood in the water. that could be nine months from now. coming up next, the pulse of the wearables. and why fitbit might have had a better holiday season than apple. >> and the biotech season, one stock that tanked 80%. the name and what sent it plummeting. and later, amazon breaking records and one top analyst said this is the beginning for the

e-commerce giant. we have the next catalyst ready to send it to new heights. much more "fast money" after this.

welcome back to "fast money." shares of fitbit getting a boost as a wearable device company

took the top spot in the apple store on christmas morning and that kicks off the top trading. the app jumping 20 spots. good sign that holiday sales were strong. b.k. >> that is probably it for this. that is all it is. nobody expected this to be the top gift. it is clearly one of the top gifts of the season. but i've used it for a week after week, i got bored with it. >> and that is obvious. >> thank you very much. >> i took that as a compliment. >> totally delivered that way. >> it is not a take-down. >> no. >> but the point is that -- this is one of those fad things. and the value of this company is a function of how big its network it is and how many users it has. that is where you get value. and my concern is it is not going to grow that much. they have one shot to get taken out by somebody else and that is really the only thing i see for this company. >> i totally agree with you, b.k. this is a hard wear company and nothing more. any other way to describe it, valuation, trading at 26 times

next year's earnings and could be trading at twice times. and massive discounting. 20% to 30% off discounting. the gross margins will take a clip on this. there is no question. you are looking at slowing growth next year as far as sales growth. they had 144% -- or projected to be 144% sales growth in 2015 slowing to 30% next year. without the eco-system of people staying on board of this product, like a go-pro. >> it feels like a go-pro. >> if it didn't work for go-pro, it won't work for fitbit. >> and they want big contracts, and that is great. and the international sales growth will be there. but to say this is a platform play, that people need to spend their lives going back to their site and they are monetizing that, it feels like go-pro. >> they are not monetizing. >> the biggest problem with the apple watch is they didn't go

after the fitbit. because they do have a platform and this eco-system and they have a partnership with nike and things going on. to me, if apple gets focused on the fitbit segment, they are done. next up, freeport-mcmoran getting hit today as the chairman is stepping down. shares down 70% as commodities prices continue to decline. carl icahn announced a 8.5% stake in the company back in august. tim, what do you do here? >> good for carl. he is agitating change. but it seems to be at the wrong time. what is going on here is a governance -- it is interesting, jim moffett engineered this big deal for freeport-mcmoran and took out planes and sitting on the board, so a very, very cozy deal. the stock should have been rallying on this news. and if it gets back to where do you value copper and where do you value oil for the next couple of years, they talk about some of this stuff, but ultimately they have copper at 236 in 2017 and 238 in 2017.

it is at 206 right now. and at the levels they have, they made this clear, we may have to lower that. but it is free cash flow positive. for the prices in copper. otherwise, i would be neutral. >> will this be a losing trade for carl icahn in a year. >> i think so. but he could average down. but the problem he has is what tim talked about. what is the catalyst for copper going high. i know they have the oil and gas side of it. i think those trade roughly flat. copper may be -- let's say copper bottoms around $2. does it get up to $2.68, i think it is hard to see that. >> the airlines facing turbulence, with 4500 delays and 1500 cancellations because of wild weather across the united states. and that is wrapping up what was a rough weekend for post christmas land. and dan, you were in a land where there was a lot of

tornados. >> dfw, it is one of the largest and it was in dallas and there was mayhem yesterday. we see these situations every year. it is not any reason to sell the airline stocks. what is more important about the airline stocks in not when we had the southwest revenue give the data for fourth quarter, the stock hit 10% from an all-time high. the regionals -- or the domestic carriers like southwest and jet blue were trading at 52-week highs. they've been held back a little bit. delta is the one, it looks like it is about to break out. united and american are still well off, about 20% from the highs in january. so there is two ways to think about it. if you agree with dennis gart pan's view that oil stays lower, maybe you get a catch-up trade an united and american in the new year. >> and i'm glad you pointed that out in response to weather. not too much of a reaction today but transports had a rough time. ten days ago they were down 20% and still down 17%. so they are horrible. so if we are to believe there is

a leading indicator for the market, that is bad news. >> i look at shipping call. look at natural gas. the warm weather snaps, we get a cold snap and natural gas spikes. short covering rally, of course. but the fact is natural gas is the choice now. co coal is not being shipd as much. that is impacting the rails. but i look at the airlines and see them as the bright spot. they are controlling capacity correctly and they've seen the demand pickup so i would stick with the airlines over any group in the transports. a news alert on the change to the s&p 500. seema mody has the details. >> melissa, that is right. willis group is set to join the s&p 500, replacing fossil group. this following the willis group with towers watson, a deal expected to be completed soon. this change to the s&p 500 is expected to take place after the close on january 4th. and you're looking at shares of willis group holdings up 3.5% on

the after hours news. melissa. >> santa may have delivered but did fedex. we'll tell you what had them working over time and why it was almost smooth sailing for one of its rivals. i'm melissa lee on "fast money," on cnbc. here is what is coming up on fast. >> while you are recovering from eggnog there is no holiday hangover from amazon. and one analyst says it is the stock to own for the next ten years. we'll take you behind the catalyst that could send amazon soaring to brand new heights. and plus we're grabbing the crystal ball and giving you the biggest tech predictions ready to rock the market in 2016. from wearables to virtual reality, how you could get in on the hottest gadgets in the game. much more "fast money" after this.

welcome back to "fast money," a biotech company is failing 80% after failing to meet trial productions after stem cell implants. is there any hope for chimerix at this moment.

>> there was a virus that they were testing the drug for prevent of this infection after a stem cell transplant. they put this opportunity at $800 million in peak annual revenue and they've wiped that out of the model now. the company is trefting the add know virus and smallpox but that opportunity is maybe $140 million peak revenue by 2020. citi doesn't count this out in kidney transplant and other solid organ transplants. most analysts are wiping that out of the models. we should see the data set in february. and citi is saying there is hope there is signs it could work in the kidney. 80%, you think this is done, this is the lead drug, but maybe there is hope going forward. very optimistic. >> i saw citi, and i have to listen when a big research company goes from 80 to 19 on a stock. and it makes sense. but i thought they were saying

that the market reaction today is there is no value to the kidney element of this stock and it is trading at cash levels right now. and arguably that is an opportunity. but there is no value to this drug any more. at least people are pricing in. >> some folks are saying there is still something there, but it definitely missed expectations by so much. >> it looks like it is worth a trade into february, given the fact you have $8 in cash -- or roughly $7 in cash. >> about 4 1/2. >> so closed under $8 today. >> under $7. >> it is worth a trade. and into february, to see if there is opportunity there. if that pans out, where does the stock go? >> i don't know. >> could be a $20 move to the upside. >> if it doesn't pan out, where does the stock go. is there anything else in the pipeline, not just -- >> there are different indications. they do have much earlier stage things but this was most of the company. >> let's switch gears to valeant. the stock was down 10%. mike pearson, the ceo, taking a

leave of absence because of severe case of pneumonia. the family not commenting on the condition. but what they've done in response to his leave is create these two weird offices in which six executives are basically taking -- i thought that was a -- the strangest announcement i've read in a long time. >> yeah. so three folks who are executives at valeant are composing this office of the chief executive officer on an interim basis running the company and the board is supporting that role. and there has been a lot of talk about a success plan for mike pearson at valeant given the turmoil they had this year and there is so much uncertainty in the stock right now. probably the fact there isn't a single person named adding to uncertainty. and you saw the stock go down 10% today. >> is the company going to create a succession plan. you would think now they would say it is time to create a succession plan. >> there was a analyst report

out saying that the succession plan was a big topic of conversation for them already, over the summer, saying there were candidates. however we haven't heard who the likely successor would be. an there is doubt that there is somebody right there that could be considered as strong or at least as good as a follow-up to mike pearson given how linked he is to the strategy. >> meg tirrell, thank you, our biotech reporter. what is the trade on valeant? >> i think you stay away. there is too much uncertainty in the stock. one, they have already probably priced in the change in the business plan. but the uncertainty surrounding it at this point to me is a no-touch. there are other places to be. >> what is interesting, when i saw the headline over the weekend, i thought the stock would go up. the stock had an analyst meeting and challenging the board, if they don't like it. so the board probably has a couple of ideas as to who would be the ceo. but i'm not sure the stock would go up. >> and i'm long the stock, the

investor day was bullish. granted ebidta and revenue numbers were pushed down but you got to a place where you could see transparency into 2016. this walgreen's deal may have impact on the dermatology products and that is a big part of where they come from. but to speak to what dan is saying, for a company with a significant credibility and transparency problem, suddenly there is a nom ownia that knock this is guy out and creates a whole new board, this is a company you want to know what is going on and you want to see everything and this is a time for ultimate transparency. we feel like we are getting it with the business -- >> but when you have six people going in to replace a guy -- i don't know. a look at what are sure to be the hottest trends in tech for 2016 and how you could get in on the action ahead of the pack. and later, nat gas rallying 32% from the lows ten days ago. the details on what could be serious fuel for big short-covering rally right

around the corner. much more "fast money" after this. oh remotes, you've had it tough.

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welcome back to "fast money," stocks failing to eek out a gain today as we head into the last few trading sessions of 2015. the s&p and do you closing down a quarter of a percent. both indices negative for 2015. and crude plunged nearly 4%. here is what is coming up in the second half of the show. the three biggest predictions in tech for 2016 that could shake up the space. we'll tell you what they are and how to play it. plus one of the smartest money's hatest commodities surging. up 32% from the low this month. why some of the big hedge fund pains could turn into your gains. but first, no holiday hangover for amazon. the giant online retailer, in the days up to christmas, adding 3 million members and shipped 200 million more items for free and saw the best ever sales for amazon devices. soaring 118% so far this year and many on the street believe the stock could soon rip even

higher. michael pactor of web bush securities is a big bull on amazon. he joins us on the "fast" line. thank you for joining us. we appreciate it. >> happy holidays. >> the big catalyst has to do with the fastest-growing units. what is your predictions. >> i believe they will spin off amazon web services. i think you'll see that trade as a separate company. i think they will keep 90% or month of it. i think they have to do it. because i think aws will be challenged to continue to grow if big customers are reluctant to sign up because i think big customers fear that aws would favor amazon and they can't do that if they are stand-alone public companies. so i expect to see a spinoff. and the good news from that is not that we unlock the value in aws, but amazon retail will be put in a position to be profitable on its own. when that happens, amazon stock moves significantly higher.

>> is that sort of a reverse. won't they only do that when they are ready to make amazon on the retail side profitable? because it won't change the dynamic? if amazon is still going to control 90% of aws, big clients might think they favor them. it doesn't change that dynamic at all, does it? >> as a public company, they can't. all of the contracts between them and their largest customer, te can't offer prejudicial terms. they can right now because it is all transfer pricing. it is all internal pricing. it would have to be objective arms-length alternative pricing. and one of the biggest customers is netflix, they abandoned their own content delivery network plan because they finally realized amazon won't favor amazon prime video. but if amazon wants to expand web services to do all cloud operations, start to go after oracle and sales force.com and

microsoft, i think they have to be a stand-alone company. the question on amazon retail, bezos could deliver whatever profits he feels like delivering. once he is over his device strategy, trying to conquer the phone market and the e-reader and the echo market, one they slow spending on devices, they could turn the taps on on profits. the 3 million new prime customers imply they probably added between 12 and 15 million this year. that is a lot of revenue growth you're going to see on the retail side next year. so i actually don't think they could spend money fast enough to soak up the retail profits. i think you see retail profitability next year. >> mike, back to aws. it is less than 10% of sales. they are expected to have $107 billion and $3 billion in income and the stock has gained $150 billion in market cap this year. don't you think, whether it is part of amazon or spun out, that

that market cap gain discounts any sort of value for aws continuing to grow at 100% of the year. >> yes, i do think so. i think you said that right. and i don't think that the split-off or the spin-off is intended to unlock the value of amazon welcome ba amazon web services. i think it is intended to show that retail is making money on its own and that will compel them to do that. and i agree, i think aws is fully reflected in that and the share price. the value of amazon retail is not fully reflected in the share price yet. >> michael, thank you. >> thank you, guys. >> michael pactor of web bush securities on the "fast" line. and that is the retail part of the valuation that is not getting appreciated here. >> dan makes a good point. i think you are out of place where a company there are fewer positive surprises for amazon in 2016 with comps that are ridiculously tough. and that is the problem. and i think -- think about where we were 15 months ago, how much

people hated the stock. everyone acknowledged their commitment to logistics but people were running scared. so i think sentiment is a little too happy right now and would be cautious. >> i love the stock. and i think it is a great stock to own long-term. there is no question about it. i don't believe they will spinoff aws. i don't think it makes sense. it was a $200 stock and there were holes in the balance sheet, i think you could make an argument. but it doesn't make sense to spinoff. especially when management has been told to put your head down and growth. focus on growth and figure out how to extract growth and work on building this company. >> so you are going to buy amazon that is a hockey stick this year, just absolute hockey stick, for the long-term, at these prices. >> no question. in '17 you will see a massive acceleration in -- >> they will not. aws, which has a 25% operating

margin, we know how thin the margins are in retail. if they gain 12 to 13 million prime user, i know smart -- smrt people that will -- >> talk about leasing airlines. what kind of confidence does that show you that other companies like fed express can't keep up. >> they have to continue to moving around and keep spending. >> it is not a shell gain to want to rent 20 jets. >> i'll say this so we could do a crips and bloods things again. the company that is only begun to get international expansion. so if i want to figure out a place where amazon could do this for another year, i said the comps are tough, but internationally they have done almost nothing. if you think about what they've done here. so you talk about $310 million market cap, a billion, how do you get that move. that is the best way to do it. but chasing a stock at this levels is what it feels like and something i'm reluctant to do. >> i'm not doubting that amazon retail could be profitable or

that web services could grou grow. but i would not -- >> not at these valuations. >> i wouldn't buy it with his money or with dan's money. >> but with a long-term investment in a story. >> i want to buy -- >> it is a long-term investment. i like the stock. i think the growth is in play. in check. you buy it here and put it in your piggy bank. >> still ahead, 2015 was a huge year for tech and traders are naming the biggest predictions for 2016 after the break. plus one thing that could be a major problem for hedge funds in the new year. that and much more "fast money" still ahead.

welcome back to "fast money." it has been a banner year tor tech stocks so what could we expect heading into next year. we have the headitior in chief of yahoo finance with the biggest predictions of 2016. good to see you. i want to start off with your first prediction and that is virtual reality. >> or vr. these will come into the public consciousness and become huge. we've heard about vr for a number of years. 2016 will be the year we have a rollout.

and the big one is oculus, owned by facebook. and they paid $2 billion for it. and carolyn everson from facebook is big on it too. it will monetize and help with community and become a new ad platform. and you look at everyone else trying to get into this, sony, thc and google has cardboard and a company they invested in called magic leap. so all of this is out there and it is mind-blowing. >> who on this desk next year plan to buy a vr headset, raise your hands. >> no. >> delighted to see that. >> how do you mainstream that. >> who is going to buy that? >> you are not the group. it is gamers at this point. >> oh. >> but how big is gaming. >> it is huge. >> my daughter -- >> a huge business. and it changes everything when you have these things on. it is not going to make billions of dollars for facebook next

year. but they are teeing it up and it is coming. it is really coming. >> next rediction, snap chat. >> it is the year of snap chat. and that is like a russian nesting doll, bear with me here. because of the sweet spot. it is digital, it is social, mobile and video and it is millennials. so far, right now, you tube and facebook are kind of number one and two right there in terms of millennial video and mobile. we're looking for a number three. everybody said it would be twitter. doesn't look so good. nap chat is getting its mojo going right now with the ad platform. they have new analytics and formats and beefing up their sales force. and the people in the business, they are really big. they will probably do an ipo sooner than the others so i think they will be big next year. >> is twitter's onnize matt year-to-date performance, is that a difference.

>> twitter is for journalists or talking heads and people like that, and the media. snap chat is for your kids. it has a great interface. the u.s. and snap chat, it is addictive. billions of videos loaded daily. daily. that is not an exaggeration. it is crazy how much that is used. >> prediction number three, wearables? >> wearables. >> which was like last year's prediction. >> 2016 was the apple watch -- 2015, excuse me. in 2016, i think we get a lot of traction. the apple watch was meh, but i think they will roll out another version of the apple watch. we'll get more traction when it comes to fitness and health. and then i think you have to watch google here. because google has android wear. i think that platform will become big. you have pebble and other players as well. but i think the other thing that will happen is wearables for work. you heard about dhl using glasses and getting really great

productivity -- >> look google glass that failed miserably. >> remember the newton. some products are ahead of its time. and the other thing is you will start to see wearables for paramedics and doctors. people that will -- voice-activated stuff. so again, it is a little ahead of the curve. but i think we'll start to see traction there. >> interesting predictions. andy, thank you for coming by. editor and chief of yahoo finance. mr. cynic. which ones did you not like -- no, which ones did you like? >> i think that snap chat is spot on. when you talk about mobile and sport messaging and video, i see it with my daughters. they are not on facebook or twitter, but they are obsessed with snap chat and instagram. but i think that you'll see snap chat grow into an instagram valuation over the next year. >> tim? >> i think virtual reality is much more difficult to monetize, even though i get the gaming element of it. i think when you get to the guys that made a major kmicommitment

it, it is not why i want to own facebook. i think it is a value that people could throw into the others. with where we are with wearables, we talked about this with fitbit, right now to me it is a crowded space. with barriers to entry for new plargs. i don't think it is high for guys that already have a platform and have a following and a eco-system. so i could be reluctant to pile on that. >> i think it is a good point about facebook. not owning it for vr but you might want to own chip companies because that might move the needle for smaller players like amd. >> that is the direction to go when you want to benefit on vr. and i do agree, that is not why you own facebook and it is a name you own for many different reasons we could get into later. but i agree, off the vr and tech space. >> let's get predictions for next year. b.k., let's talk about you.

>> for me it is about bit tech and bit-coin. i think this is the year that fin tech integrated block tech technology -- >> meaning financial technology. >> financial technology. so you will see banks, you are going to see brokers, any financial service company starting to integrate the technology behind bit-coin into their services. because what it does is it cuts costs and makes it easier for regulators to look at everything. so that is going to happen in 2016. i think that will fuel bit-coin. and also with bit-coin, the daily supply will be cut in half. that is it for me. >> i'm going to stay in the fin tech space and agree with what b.k. said, but to me it is e-payments, mobile payments and paypal to me. i know that a lot of people associate paypal with an old payment processing system but they own ven mo. and this is how facebook is supposedly going to monetize their $22 billion what's app acquisition. they hired the paypal former

president. so i think they will make a play in 2016 to compete with facebook and apple pay. >> we are running out of time but quickly. >> programmatic buying which is good for -- from the internet perspective. it is allowing you to target mobile advertising better. a company like google, acquired a company a few years ago called double click and they have built this up. facebook, they are launching atlas. the more they use it, the user base, they could perfect this and could actually really ramp it up. >> coming up, it has -- we ran out of time, seaberg. >> we'll do it on the web. >> for hedge funds. brian kelly has one under the radar reason why things are about to get a lot worse. that is next.

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welcome back to "fast." take a look at this huge move in nat gas we saw in today's session. jumping more than 9% on the day. well above the $2 level. it is up 32% since the lows ten days ago. and b.k. noted that the hem funds are the most net short of nat gas since 2006. >> this is interesting. because you have a massive, massive short position in natural gas. the reason it went up 30% in the last week, is because over the last four weeks you saw the

supply of natural gas come down a bit. so i'm not saying we're into a new area, a new regime for natural gas. but the fuel is there for a big rally. so the way that you play it, the ung, terrible to trade. it doesn't do well. so you have to go to the natural gas focused stocks. for me, the one i like the most, is cabot oil and gas, cog. any short squeeze in natural gas. could you look at the other players, but cog is the one for me. >> nat gas? >> agree with that. >> even with a 32% rally in the last ten days. >> you could see a short squeeze into the-year-old. i would buy the stock. >> some traders sense a turn around, and dan is at the smart board with the action. >> and in cypress semi, this is a space there was $100 billion of announced acquisition this is year. it was an acquirer. today when the stock was $9.50 there was a buyer of 31,000 of

the june 1113 call spreads paying 33 cents for that. that is a million dollars in premium, if the stock is a million or higher, they could make up to $5 million. i suspect this is leveraging a long position. maybe an owner of the stock thinking the company that was one acquired could become the acquiry. and the stock is down 30%. this is where it breaks even, up at 11.33 with a max gain of $5 million. up there. >> thanks for that, dan. coming up next, the final trade. here at td ameritrade, they work hard. wow, that was random. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement.

there's no way to predict that. for all the confidence you need. td ameritrade. you got this.

time for the final trade. tim. >> blackstone, got out today, think more high-yield pressure weighs on the stock. >> seaberg. >> j.d.com, they are running the amazon in report and in china and they will win. >> it is wearable in 2016. garmin, buy that one. >> dan? >> utility stocks into 2016, stay defensive and go for yield. and guy, get better, buddy, we need you back here. get better, pal. worried about you.

>> feel better. i'm melissa lee. thank you for watching. see you tomorrow at 5:00 for more "fast money." in the meantime, don't go anywhere because "mad money" with jim cramer starts right now. my mission is simple, to take 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 cramerica. other people want to makes friends i'm trying to make money. my job is not to entertain you but to educate you, so call me at 1-800-743-cnbc or tweet me. close watchers of "mad money" know i'm not a chart but i do play one weekly on tv. given that i base almost all of my work on