claim that it was a weak stock market and perhaps some oil effect so i do think you'll have a lot of people extra lating this. >> and a lot of consumer names coming up tomorrow so we'll see if it's more of a secular story. >> our attention is shifting there already. >> guys, thanks so much for joining me. mike santolli and carol roth. "fast money" starts right now. >> live from the nasdaq market side i'm melissa lee. tonight on "fast," think this market is cause for concern? you ain't seen nothing yet, three terrifying charts for chutzpah doom for the dow and something happened with facebook that has some traders thinking the stock could be undervalued. we'll tell what you that is and why it could have you liking the stock. later, a very simple strategy is crushing the market this year, and it's got some traders acting, well, piggy. we'll explain. but, first, we start with the markets. stocks with a stunning reversal,

as much the dow was down 166 points and it bounced off the levels and finished up. should you buy this bounce, tim? what do you say? >> if you are short you should be concerned. i think the negative sentiment out there, first of all, still high enough where i think you can see enough of a riff. saudi's oil minister is out there on the tape saying, first of all, we actually want to destroy all the high-cost producers. they want to keep largely the same policy but he's also said we do want to freeze production. you have different players saying different things and oil is the one that i think calls for today's move. the fact that it's been holding on to this 50-day moving average, actually kissed it and is now holding it and oil is saying maybe a lot of fear in the market. >> stable fuel equals a stable stock market or does that mean

higher stocks? >> i think it means higher stocks. >> okay. >> if crude does stabilize not basically neutral. in fact it fosters the ability for stocks to move higher. i think that's what people are waiting on because crude signifies to the marketplace global growth or lack thereof, so as tim pointed out the $30 level, if that level holds, you're going to see a lot of new buyers coming into the marketplace. i think it's a big if. i don't think it holds, but i think it could play out in the next couple of weeks, not the next couple of days. >> financials still closed the day in the red. >> i mean, it reversed. >> jpmorgan was up tiny. >> but the financial sector finished lower slightly. >> i thought it was so overblown yesterday so the fact that it came back today was good. i think if the market opened a little bit longer they would have done better. to me, i didn't love the economic data, so it's only one point in a mosaic. we'll have to see if more comes of it, but i didn't love that.

>> in terms of the pmis and the home sales. >> the ism was terrible. >> that i didn't love. >> services. >> and if we are the growth engine, which we are, you know, i didn't love that. >> right. >> yeah. i'd agree and tim is exactly right. if you look at oil and it flips 5%, down 2% and all of a sudden shift up to the upside in royal, and you look at the energy names, material names, everything was down 3%. you look at all the etfs related to the energy space and they were getting smacked and once again is this healthy? i would say no. i don't know why there's anything healthy about this rally whatsoever. the financials are still lagging, the lager on the way down, down 2% and came all the way back to finish flat. most everything else moved into the positive and to the upside. >> small-cap stocks which have been destroyed much more than big-cap stocks and i would make an argument because of credit,

make an argument because of oil. the russel has been outperforming the s&p in the last three or four days n.had a meaningful way we've taken over this $35 on brent, who cares about wti, my view, but how can you not say that the market hasn't had a significant change in character? again, things that were being sold on days like today actually were rallying and outperforming. that to me is very encouraging. >> i'll tell you why i'm not encouraged. i think financials have to participate. we don't get financials participating we have a real problem, tim. what was really leading us to the downside today? if oil doesn't flip, then where are we at the end of the day? oil did flip. but look. it was all based 307b this huge move we get out of the xle, the huge move we get out of the material space. everything that was so hated, and by the way, they are buying stuff that's basically shorted. >> yeah. >> are they -- are they rallying really, or are they short covering because they are panicked a little bit and feel like they have to get down and get themselves back in? >> what do we all do today? >> if anything, i've been buying puts into some of this rally.

i've been selling a little bit of emerging exposure which i think is range-bound. >> you're buying puts? >> so you sound like you're talking my book. >> i have a portfolio i have to hold and a portfolio i'm trying to hedge and ultimately banks are in a place where their earnings aren't that good. i wouldn't be buying banks. it's earnings. >> what are you buying? >> materials name. own a name like turnium, a steel company, stock is up 15% today because in fact there are things that are turning in the steel industry, not for all-time great moments, but, again, things that were oversold and cheap relative to their history. those are companies i want to own. >> what were you doing today, karen? >> not a lot. you know, the things i look at, retail. i wouldn't be a buyer here. they are up a lot. actually we did. we sold a little bit of coors calls against our position, so that's a little bit out of the range. the financials are interesting to me, but i've been long them and it hasn't worked for a while and i thought yesterday was ridiculous. >> okay. when you look. i'm not buying anything new.

>> selling anything? >> not selling anything either. equity guys hate talking about the g-20 because i guess we've not smart enough to understand what the heck will happen at the g-20, if anything. >> speak for yourself. >> guys don't want to make up as if we know what's going on with the g-20. if you look at china, increasing the budget deficit, another headline you and i talked about off air. >> yeah. >> that could be a reason why guys are getting ahead of this. maybe that's a risk-on trade, but it definitely appears to me to your point guys that are covering, guys that are placing bets in the energy space. i don't think the ten-year is very convincing that is a risk-on trade, so i think this seems very temporary to me, and i don't think that these gains are going to hold. >> stocks may have staged a comeback for today, but long term the charts are mimicking a pattern that's much more disturbing, or so says our next guest. tom demark is the ceo of demark analytics. great to have you on the program. >> great to be with you. >> you've got three charts to walk us through.

why don't you kick it off with the first one. >> the first chart shows the price activity of the dow jones industrial average into the bottom in the spring of 1980, and the similarity between the current market and what occurred in 1980, that was the bunker hunt low, remember that period very well. everyone thought that the exchanges were going to close permanent at that time. the pessimism was so thick at the market. we knew it had to bottom at that time. otherwise the -- the prospects wouldn't look good for the economy or politically. >> right. >> that's the first chart. the second chart is -- see, what we're trying to do is compare the current market with prior periods, and what we did, we identified three. this is months ago. we came up with three comparisons that were pretty -- pretty closely correlated. the second one is the 2007 and 2008 decline. we were able to place this almost step by step percentage-wise throughout the entire decline.

people who followed us at that time did remark how well it was correlated. the third chart, which is the most important, that's what's influenced me just recently. that particular chart we've -- we've followed and we're looking at it now. i've compared the current market with what occurred through the period of august 9 through october 3rd of 2011, and they look similar. we've got these marked with 1s and 2s and abcs, but they do -- they do relate to successive or conseccive up-and-down closes. this has influenced me like i said despite the fact that the chinese markets on the days that we identified the bottoms and we identified the january 20th and the february 11th low with an intervening high on february 1st. we were able to get the exact highs and lows hand we're really going against what some of our work is telling us. 90% of our indicators have identified the low as february 11, but there are 10% of the

indicators are still saying we have to go down one more time. we've got crude oil when we were on the air february 10th, we identified that as the bottom and the market did rally. we ultimately should see that. we'll see a test that have low. intraday we'll go believe the february 11th low and at that time we thought it was up coming this week possibly. we thought the stock market could unravel and we could see a sharp decline. we still think we're going to see it. yesterday we got a price flip downside but it was just isolated to the s&p average. the broad indices did not have that same price flip and we expect them to top in two days so we want to reassess everything on friday, and we think the market could stilt get hit. >> friday is going to be a critical day. let's say in the worst case scenario or friday, tom, what's the downside in your view? >> the downside we've had for some weeks. it's been 1783, 1790, and in that area. that influenced us at the low

when we turned positive on february 11, we said we didn't quite hit the price objective. normally our model, timing mold, is consistent with the price objective. it wasn't at that time, and that's what also influenced us to think that we're going to see one more decline. i think today was just an overreaction. there was some news that we predicted the market would decline monday and the top would be made monday, and it just hasn't unfolded the way we expected. >> right. >> we've declined the 1880 and 80 and that was the downside projection for the rally and that's what we saw today. i think we'll see the blond indices, the iwm and the small cap and that shut set up everything for one more attempt to break and hopefully we do break. >> tom, great to have you on the show. >> thank you. >> tom demark, demark analytics. >> tom is a market timer and largely his timing has been impeccable, called the bottom -- the top of the china movement and the bottom of the china

movement and he's saying we can get one significant leg lower. what is significant about that not that we get there, but there's a lot of people calling for this is 2008. markets are broken and they will break significantly lower. i think people would breathe a sigh of relief to say 1790 is our floor, especially with a lot of stocks that i think probably already tested the lows that you would see there. again, i think -- what's interesting about demark's work he talks about exhaustion points and markets. let's face it. markets have gotten so overdone, i still think, as i said earlier at the top of the show, that we have a case where markets are still leaning to being oversold, too much cash on the sidelines, so you get that washout that he's talking about. interesting time. >> i mean, 1790, maybe some people will breathe a sigh of relief but that will still be painful on the road down to 1793. in a market scenario that tom is laying out to 1739, what are the sectors and the kinds of stocks that will feel the most pain? >> energy material names will absolutely get slaughtered to the downside if that's the case. the other thing would i point out about this movement.

think about the range that we've been in. can't seem to be able to break above the 19.25. the one positive i did see was volatility index, the fact that it pulled underneath and stayed underneath the 50-day and started to approach 2,900-day moving average. that's pretty significant because with all of what we have going on, the news stories that everybody here, even brought up the g-20, here we are and volatility is down 25% over the last week and a half. that's significant. >> for now. its lurking its head. a shocking new statistic on instagram could change the way investors value facebook. we'll tell you about it and what it means for the stock. a new report is raisings fresh concerns about banks and the exposure to the oil names. the names and analysts behind the report are next. looking to beat the market, a simple strategy has some traders doing just that and going hog wild in the process. we'll tell you what it is and how it can profit when "fast money" returns. the kitchen...that's home.

i know that's like my grandma cooked, my mom cooked... ...i cook. chocolate bread pudding, and soufflés, and... ...banana bread. i make a lot of banana bread because the baby likes bananas. so, we always have bananas in the house. (laughs) whatever home means to you, we'll help you find it. zillow. man 1: i came as fast as i man 2: this isn't public yet. man 1: what isn't? man 2: we've been attacked. man 1: the network? man 2: shhhh. man 1: when did this happen? man 2: over the last six months. man 1: how did we miss it? man 2: we caught it, just not in time. man 1: who? how? man 2: not sure, probably off-shore, foreign, pros. man 1: what did they get?

man 2: what didn't they get. man 1: i need to call mike... man 2: don't use your phone. it's not just security, it's defense. bae systems. welcome back to "fast money." take a look at the major author stocks kicking off our top trades, fiat chrysler, general motors and ford all down. it's a poor time to own stocks

as u.s. volumes have peaked and get this, not just the downgrades weighing heavily and now some of the underlying auto loans are deteriorating and delinquencies on subprime lows are at the highest level since 2010. >> you asked what does that mean in terms of the credit impact. >> yeah. >> people talk about the auto cycle, expecting margins to go down dramatically. i think they think the auto cycle stole and putting it on the hands of less than credit worthy borrowers and where are we with subprime so less than 620 credit score in the borrowing hand in the last two quarters, back to where we were in 2006 and a lot of people would say it's the peak of the insanity with this country with mortgages and auto loans, et cetera, et cetera. ultimately are autos going to live through the cycle? i think they will. i think they will look very interesting and i've been saying that on 20%. margins are holding up, and i have to say it's disappointing

to me. >> is it that the automakers lend them out? are they overexposed and sold too many cars and that's robbing from future sales? >> i'm not worried about a g-mac because it doesn't exist in the same place. i'm worried about the sales and the companies. look at the auto stocks. >> right. >> so one thing about yesterday, jpmorgan the oil stuff was crazy, but there was one page that i wasn't so psyched about is the auto loan book which isn't that big but one of the categories that i didn't really love was loan to value of greater than 120%. i don't love that for obvious reasons. now, the best factor is people being employed. sure. >> you can pay your auto loan. >> the credit experience has been excellence. >> t-top, hair waving in the back. >> i'd be more concerned though.

>> does this make you concerned about jpmorgan or other things that may have more exposure? >> who has the posh you're where do you look, gmc which is ally, they have had a much bigger book of auto loans than jpmorgan, so that would be a place, if i wanted to make that bet, allied would be the way to go. >> next up, a milestone for facebook's instagram. the photo-sharing app announcing it has 200,000 monthly active users up from hundreds in june. notably ahead of twitters 130,000 advertisers this comes as facebook announced it's upgrading its like button with reaction and an emoji like toole that allows them to put out knife now expressions, love, ha-ha, wow and angry. in addition to the original like, given facebook's dominance in social communication, could it make the case that facebook's stock is undervalued? pete? >> look at the multiple that

these guys trade the but look at all the investments zuckerberg has made and he's done an outstanding job. the navigation of this company since the ipo. early on there were problems and then they got moving into mobile and the acquisitions began. they paid $1 billion for instagram and now this has already surpassed twitter, as you mentioned, 200,000. video ads, that's where the premium prices are, and that's where they are absolutely killing it right now on facebook, so if you're willing to be very patient with this stock, i think in the long term it actually probably is cheap at these levels but they don't have any room to stumble depending on what we see out there that could cause them to stumble. >> in the last conference call 98 of the top 100 advertisers took out ads. benefitting from the platform and twitter began selling ads five years ago and they have a fraction of the number of advertisers that facebook has, that instagram has. >> usp, a couple minutes ago, what would sell off the most, what would get hit the most and

he said energy. energy is taking the brunt of the stock already. if the market sells off, it's up 2% or so year to date, all the others have gotten hit, netflix, amazon. >> does that make you not want to be in nook? >> for the length of the time frame, it's critical. >> just a tradeable event because you said what are you buying and what are you adding to? i'm long bank america. i'm long disney. i'm long apple. those are three big positions for me, show in a time period, i would love to add facebook. right now when i'm nervous that the market is -- >> you're not adding it. >> sell 100 handles, i'm going to wait. >> what's interesting to me though is the three companies you just named are the ones that have done, you know, been the most hit and the highest, i would say downside highest momentum where facebook was very resilient which you pointed out through what i thought was absurd and out-of-proportion disreality on where markets were and facebook calling in there because it was very hard to blow holes in the valuation relative

to their growth. >> all right. >> and they put up a monster quarter, i mean, honestly. >> and he deserves credit for those acquisitions. they deserve not to be penalized. >> is my life down to six emojis? that's concerning for me. >> he hates. >> you wow. >> pete, ha-has. >> still ahead, two very different names, imax tanking on earnings and salesforce surge after hours. the latest from both those conference calls when "fast money" returns. i'm melissa lee on cnbc, first in business worldwide. here's what else is coming up. >> he hates the cans. stay away from the cans. that's what the banks are saying about the oil and if you think your bank is immune from the swooning oil prices. think again. shocking exposure in the names you know. plus, want to know how to beat the market this year? well, here's a hint. >> you're a hog or a cattle.

>> we'll tell you about the meat and potato strategy that is crushing the market this year when "fast money" returns.

welcome back to "fast money." it has been a very tough year for the big banks as investors continue to worry about their

exposure to the collapse in crude prices. take a look at these numbers courtesy of gerard cass can i of rbc showing the billions in exposure that jpmorgan, bank of america, citi and wells all have to the energy-related investments. could this mean that oil is becoming the new subprime for the banks? gerard joins us on the "fast" line. thanks for joining us and providing us these numbers. let's take this to the worst case scenario saying every penny of enloan that these banks held went bad, what is the impact? >> we think the imapact is very manageable because the exposure to the loan portfolios and capital is very manageable. this is way different, of course, than the subprime exposure. one way of putting it into perspective. as you know, from the data. the industry has right now total exposure from the top 20 banks of about 245 billion in exposure. the outstandings are just over 100 billion. to put this in perspective from

the first quarter of '05-3-to the first quarter of '01 we originated in this country 3 trillion of subprime loans so this is no idea as catastrophic as during the home crisis. >> why are investors punishing these stocks? they seem to be trading just beyond fear of no growth in the united states. >> i think you're right, and today's action was interesting. they sold off hard this morning with some of the stories about jpmorgan's oil came out, you know, yesterday, and then talked about it with the other banks. the oil exposure, but i think the biggisher usual is the fact that the federal reserve may not be raising short-term interest rates this year. in december when they raised rates, their forecast called for four more rate increases this year. the fed if you had futures today says there aren't any more coming so i think that single-handedly has been the biggest contributor why the stocks have sold off since the first of the year. >> i'm sure you field a lot of

calls from clients, from investors out there, gerard. i'm curious. what sort of number of calls do you get regarding potential energy exposure versus concerns that -- that the curve is going to stay played? >> it's interesting. we're getting more calls and today especially on the energy exposure because it's so fresh in everyone's mind about what happens during the downturn, the financial cries and the losses the banks took on the loan portfolios, but when we frame it out and compare the energy exposure to what happened in the 1980s, again, the '80s, the banks were much more exposed, particularly the texas banks, compared to today, the investors understand that it's not that bad, and i think, again, you saw that in the price action today, sold off hard and then -- and then the declines by the end of the day were much smaller for the big banks than at the beginning of the day. >> gerard, thanks a lot for phoning in. appreciate it.

>> you're welcome. >> gerard cassidy of rbc. we had gerard walk through the worst case scenario and asking about the calls to get a sense of reality versus perception because often perception will hijack the trade and that's what we've seen. >> he broke it out to show how relatively minimal they are, but let's just go through the math of it. let's say jpmorgan gets to that bad case scenario of an additional 1.5 billion. add that in, 2 billion in total. that's a pre-tax number. that gets you to 30 cents a share, of a one-time charge. not like the earnings will always have that $2 billion hit every year so 30 cents a share in that -- that very bad case scenario. i mean, the reaction is just crazy. >> karen has been pretty consistent. i think that's lunacy to compare what banks are going through to 2008 and i feel like we do this all the time. first of all, the esoteric nature of the mortgage-backed securities, the lack of liquidity and the leverage inherent in these securities is

so different and the counterparty risks from a citi to a deutsche bank to whoever back in that day was very, very different. also, the sell side doesn't have the risk. the buy side's got the risk this time around. all the guys that hold half the loans are people that are selling everybody on the new frontier. >> would you buy the banks here? >> i would not buy the banks. >> it's not 2008, but it's the whole point. >> people are basing their opinion on buying or selling it. i own bank of america, but people are basing their buying or selling on it whether this is >> it's true. >> when banks are in a different earnings environment. >> i agree. >> i think -- i think -- i think that most people, i want to give everybody the benefit of the doubt. most people are rational and understand the case. >> they were burned. i disagree. >> i think they think in the back of their head, let's say, you know, they see the case, think in the back of their head about 2008 and think about the unknowns and how nobody thought

that citi should go to $2 a share and it did. they were burned. >> it looks entirely different. >> i'm not making the case that it's subprime. investors have been burned really badly because they didn't understand, and i don't think they understand now. >> can't u.n. that underwriting is completely different with dodd/frank, with everything that's de-leveraging that's taken place in the last seven years it can never be that way, but the problem is investors think there might be something that we're all missing again. >> it's a perception thing. >> here's where the problem real lives. i think it's the european banks and less about oil. i think it's far more about the european banks and everybody looks at the deutsche banks of the world and their concern level is rising, and i think also everybody is looking at the rates. jonathan gollub was on saying we expect three for the firm and he expects two rate hikes and gerard doesn't think we'll have any. where will the banks be making the money? that's one of the concerns but europe is the real thing, much

more so oil. >> deutsche bank goes down 50% over the last 12 months but why not here? >> we have direct correlation, there is a correlation. >> global concern, all interconnectled, all the banks. >> right. >> but i think that it is a totally different environment, but by their very nature banks are levered institutions. that's the business model. how much of an earnings hit or a one-time hit would that be because there's really de minimis to say, you know what, i've got to just sell. >> two of the biggest banks in europe, three report in the last couple of weeks which include ubs, hsbc and deutsche bank. ubs and hsbc their balance sheets got better, they went up 40, 45 bips in terms of their balance sheets and tier one capital. about earnings power. these are state banks. deutsche bank gets funded by deposits in germany and by the bundes bank. >> are you long any of the banks? >> i'm long bank of america.

>> european banks are going out of business but that's not happening. >> all right. coming up, the hottest part of the trade this year and now one trader is making a very bullish bet that one area of the gold complex is about to hit new heights and putting your money where your mutt is. one stock getting crushed and trade, are digging into it. what that is and how you can profit when "fast money" returns.

welcome back. here's what's come up in the second half of "fast money." the rally that just won't group quit. the group of stocks that are on the tear and what our traders think it means for the market. imax and salesnorse moving in opposite direction. we'll hear from both ceos later this hour on the conference call. amid all the volatility in the market there's one group of stocks that's gone hog wild. breaking it down is a man who has been known to go a little wild himself, the one and only

dom chu. >> why. i don't think i really think i'm a wild and crazy kind of guy, melissa. >> oh, come on, dom. i am just one wild and crazy kind of guy, maybe, and i do like to keep an eye, like you said, on what's happening with the action. so far this year some of the best trades have come from food. specifically we're referring to livestock. let's talk a little pork first of all. lean hogs, that's, those futures contracts, you can see it right there, upabout 19% on a year-to-date basis. it's been a great winning trade so far in 2016, but some of the winners haven't been all livestock in terms of pork. it's been chicken prices. been on a slight medium term downtrend heading into this year and then there are stocks that have exposure to some of the commodities like chicken or pork or other meat products here and there aren't that many pure play products here on the meat processing and packaging side of things and one of the plays has been processing foods and meat processing names. you look at hormel which is

behind brands like spam, dinty moore beef stew and got the applegate farms or organic sausage type of stuff. shares have gained 10% year to date and hit a record high and a big, big uptrend for those guys recently and then there's tyson food hit a record high and in today's trading it's up 22% year to date. brands like hillshire farms, jimmy dean sausage and those are up big as well and campbell's soup is up 15% year to date and also hit a record high just a couple of days ago. lean hogs, yes, have been a winning trade and so have some of america's big food companies, melissa. i guess certain rising input costs aren't as big of a concern for some investors as of yet, but, still, food, packaged food, even lean hogs, some of the big win is trades, melissa, so far in 2016 even though i may not be a wild and crazy guy. >> thanks, dom. >> you got in. >> still love you, no matter what. >> i know, thanks.

>> dom, first of all, don't let him kid you, a wild and crazy guy. having said that, the food stocks that we're talking about look really expensive. if you look at tyson, it's absurd the multiple you're paying for this company. granted, yes, there's been synergies where mergers and also the cost of bulks and grains have pushed up the margins for these guys. remember what these guys do, only so much in the business and only comes back to valuation. >> these are defensive trades. they got to eat, right. got to eat something. no doubt about it. >> to tim's point. looking at hormel trading 30 times. that seems pretty incredible, right? they have delivered and done an outstanding job, no doubt about that, but at 31 times i would think i'm not show sure i would jump in this name. i would look at kraft heinz, for instance, if i was staying in the food space. because buffet put these guys together essentially and you see some of the synergies that will come about in the next couple of quarters, not right now but off 10% from the highs and this is a

name that can go higher. >> would you nibble on any of these? nobody else had done it. >> come on, i kind of like the restaurant space even though higher costs aren't good for them, but they do get a huge benefit from lower gas prices for the consumer, so i -- i think there's some value there. >> hormel is up 10%. it has the lowest and steadiest chart. tyson is up 22%. way too spiky for me. campbell's is up 15% and also spiky. if you're going to buy one, go with the slow and steady and the market is telling you something. they are safety plays and probably can continue to be safety plays and probably can continue to get money. >> you're not in hormel? >> not sexy enough for me. >> the southern company is? >> moving on. >> still ahead. ♪ >> right up there. >> go ahead. if the economy is in trouble -- >> what are we listening to?

>> i have no idea. >> if the economy is in trouble, you know there's a rally in the retail stocks. what's going on here. still names worth buying and disney stocks have not benefited from the force and we'll hear from the imax ceo and the real effects right after the break. much more "fast money" still ahead. smart devices are up. cloud is up. analytics is up. seems like everything is up except your budget. introducing comcast business enterprise solutions. with a different kind of network that delivers the bandwidth you need without the high cost. because you can't build the business of tomorrow on the network of yesterday.

welcome back to "fast money." got some big earnings movers after hours. seema mody and dom chu are covering and let's kick it off with seema on imax. >> reporter: while earnings disappoint it had did raise its full years installation guidance as they continue to benefit from more big-budget blockbusters and movie franchises releasing sequels, one of which is "star wars." listen in. >> imax alone accounted for approximately one-third of "star wars" advance ticket sales in north america, a staggering result, and we couldn't be more pleased that our exhibitor partners were able to benefit from the strong attendance we generated and the fees they collected for our robust online ticket sales performances. >> imax says with so much major movie franchises releasing important sequels in 2016 and

2017 it's well positioned for success in the years ahead. in fact, on the call imax says its first quarter is already off to a great start between "star wars," "motion in china" "kung fu panda 3" and "dead pool" which has broken numerous records this month alone and the company bullish on china. they now expect to see accelerated installations in the china region. now let's send it over to dom chu. >> seema, as much as yours is about the negative performance in the after hours, mine is more of a positive story here, seema, so let's take a look at the salesforce shares climbing in the after hours up 9% after this closing bell. 2 million shares have traded so far. ceo mark benioff always a colorful character stressed the fourth quarter is with a the best the company has ever seen. he's been a little bit dramatic but that's how he feels about the company. they have had the best quarter

they have ever had an benioff saying they never expect every single product group, gearingsy, sector to exceed the company's own expectations and that's what happened in this past quarter. he says it's creating, more, quote, phenomenal momentum and, of course, with the cloud being so important to the company here's what mark benover told our own "mad money"'s jim cramer in an exclusive interview coming up about some of the important cloud services, the cloud business model and maybe some of the cloud imposters that are out there. take a listen. >> there's many false clouds out there, and i think you and i know that a real cloud company is a company that has a deferred revenue model, that has a subscription service, that's delivered in multi-tendency and has a customer model built on customer success, and, look, these companies are not focussed in that model and that's why they are not able to have the results that we see today. >> a lot more with mark cramer

with cramer next hour, "mad money," jim cramer and mark benioff with more on that discussion on cloud computing and what it means for salesforce.com. back over to you guys. >> thanks a lot. dom. let's start off with salesforce.com. this is interesting. up 9% and the context for year to date it's down 20%. really been punished as one of the stocks, momentum stocks taken down. >> that's exactly right. when you look at what this thing trades at, it looks like a stock that's fairly expensive and do they have enough growth? certainly they they proved they did the past quarter and the guidance is extremely strong as well. can they get the $10 billion revenue mark and that's still out in the future and certainly when you look at this coming year, their numbers are very, very high. >> this is one. stocks. steve talked about the stocks. if you think this market is going down, whoever they are out there, then this stock is one i want to sale because the 63 times multiple doesn't make it. >> one you would buy now?

>> no. >> hang on. in the space an s.a.p. or oracle have held in a lot better lately than a crm, so when you said -- >> dividend. >> exactly. would you buy it? i would lean towards those because they have the legacy business. when he was talking about fake cloud, real cloud. >> right. >> those players are real, s.a.p. and oracle. >> let's talk imax here. again, those shares are lower in the after-hours session. >> interesting, yet another part of the "star wars" phenomenon that's on l

brands. >> shares down 2.5%. company's guidance for the first quarter and full year came in below expectations. the company mentioning continued pressure from 4x exchange rates and stocks off of its lows. switched over to retailer, restoration hardware, plunging after the retailer warned that fourth-quarter earnings would miss estimates. earlier we reported an estimate mistakenly too low. the expected miss is due in part to shipping delays, weak performance and markets affected by energy and oil and higher

discount considering but the retailer didn't stop there. also blamed the stock market saying increased volatility in the ex-stock market, especially the extreme conditions in january which is historically our biggest month of the quarter for furniture sales contributed to our performance. you can see the stock down 19.5% after hours. melissa? >> thank you very much, seema mody. that's interesting, blaming the stock market for a blip in sales. >> well, yeah, i don't know how you connect them. restoration hardware is a crowded trade and there's a handful of these companies, including in home depot and lowe's part of this housing resurrection story. restoration hardware obviously a very different story. this has been at the bott tom of rsis and momentum selling. crowded trades and that's what they are talking about. caught in this vortex. i don't feel bad for them. the reality is the numbers aren't good and the valuation isn't supported but at this point the stock is overdone. >> when you're saying crowded. the short interest is 25% which is pretty high. i'm surprised by that. you're saying crowded from the long side as well?

>> yeah, yeah, i mean, it was. there was a lot of forced selling and the street has gone the other way on it, too. >> looking at l brands. >> how are you looking at it, pete? >> i think it looks pretty good. shaping up well. >> look -- she was just talking about how it was down a couple of percent. as she was speaking, started moving back to the upside. expected tomorrow morning waking up to see the stock higher. look at the numbers in a record quarter, huge year and the only negative that i heard on that entire thing was currency headwinds, if that's the biggest problem l brands goes higher. >> you have to play in retailer, i'm in aeo and deckers and i've taken my fair share of pain there, but if you're going to buy retail i think you go with what's proven to work and go totally a different space and go home depot. home depot used to be that stallion in the retail space and now it's starting to get it back and now it's sold off and starting to get a lot of buyers

coming back. >> stallion means more solid performer last year. >> that's why she's the den mother. >> oh, my gosh. >> what a job i have. let's switch gears here hopefully. gold prices rose again today setting off a flurry of bullish activity in one group of stocks. mike? >> yeah. it was in gdxj, the etf that tracks the junior gold miners. this traded more than two times its average daily options volume. most of that relatively short dated and march options, and one of the areas we saw a lot of opening activity was the march 27 1/2 calls buyers that are betting that the rally in gold and the gold miners could continue and that it could be up another 10% in just the next three weeks and another big trade, we also saw in the space, 24-27 strangle. that's a best that volatility in

general in gold and the miners which right now is in the 90th percentile is likely to continue for at least another month. >> we are ari walled on saying he thinks the gold trade in gold in the gdx, didn't address the gdxj specifically but they would go higher. what do you think? >> what do you think the dollar is going to do? if you think the dollar is stalled out, what we're talking about with oil in terms of supply disruption and lack of investment. these guys have been going through this for four years. a lot of gold companies, i think production will start to crimp and this is interesting. >> what do you think? >> gdx outperforms by 2-1 and i've said that before. gdx, usually outperforms all of them. >> a bit of a stallion. >> stallion as well. >> 55%. >> might be a gelding if it's underperforming. not like a my little bone. >> i'm going to force right through this. if you want to stay long gold play on gdx. >> i dare somebody to use my little pony.

>> coming up next, the final trade. i'm here at the td ameritrade trader offices. steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. td ameritrade.

finally fast but not least move over sky night. this is the latest version of apple's new atlas robot and it's smarter than ever. he can stroll in the woods and pick up boxes and if you knock him over he gets right back up. no word on when he gets back in time. >> why was he in the woods, what was he doing? a little weird. >> i don't see -- >> robotic animals. no idea. final trade time. >> tim? >> awz, brazil downgraded today, who cares. >> the outperformers were utilities early on in the day, if you believe the markets are going to sell off i do, utilities, safety play, slu. >> no my little bone? >> karen? >> yeah. i talked about jpmorgan being so overdone yesterday. i think you can go with that if you really are afraid of an absolute armageddon in financial stocks do it through calls and go out a couple months, already reported earnings, jpmorgan,

jamie dimon also. >> pete? >> looking at retail, target. brian cornell, this company, minneapolis-based, absolutely crushing it. they crushed it once again. buyers in there today. i think it's going higher. giddy-up to 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. 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 make friends. i'm just trying to save you some money. my job isn't just to entertain but to educate and teach you. and put it in perspective. call me at 1-800-743-cnbc. or tweet me @jimcramer. on a good day for the averages, i look at the other side of the trade. in fact, i think this might be the perfect time to discuss a dire issue facing the market. everywhere i go, i hear the