somewhere is the dollar. so many different stocks that could be exposed. that's one area where the more detail the better. the large figures priced in but the details still very obscure. >> by the way, it's 100% for december, because there is at least some chance of a half-point increase. >> all right. mike, i'm not going to see you for 24 hours, okay? or 23. >> less than that. >> "fast money" starts now. kelly, thanks. we begin with breaking news on wall street. the dow topping 19,000 for the first time ever. and it wasn't just the dow. the s&p 500 jumping past 2200 for the first time, as well. and the nasdaq and russell both hitting new highs. all four indexes hitting highs for the second day in a row as the trump trade rages on. how much longer can trump rally last and what's left to buy? guy adami, we start with you. >> great to have you tonight. listen, can the trump rally last? i'm no raging bull by any stretch of the imagination. the iwm, what is left to buy?

i have not been bullish banks, one is u.s. bank corp, but these banks will continue to rally. >> among the banks hitting new highs today. >> all-time high. but u.s. bank corp, all-time high. also trades to two times book as opposed to bank of america, citicorp, 80% of book. can they rally? yes, because people that put these things on the shelf for the last eight years are now piling in. defense stocks continue to work on the industrial front. tim can speak about mining names. i think in certain sectors, they work. but can the banks continue to rally, yes. >> keep riding the rally? >> what i like the rally, guy talked about financials, industrials. those were the early bloomers. but now we have great housing numbers today. i added to my kb homes, pulte homes. housing can run. >> even with rates. >> even with rates. when -- every housing recovery has been with rates rising. so everyone has been afraid of this trade for years now. they have been afraid of the housing trade. because of rising rates.

if you look at home depot and lowe's, they traded higher off the housing starts. if you look at the names, the builders, they didn't. that's the hidden trade. >> timmy? >> i think steve is right. if you think about the housing numbers today, not only last week the starts number. the new home sales, we have taken at least another month of supply off at 4.3 months of supply, the housing market is tight, a tail wind for the economy. agree there is value in the home builders. back to the reflation trade, this didn't just happen with trump. again, steel stocks were running and they have been running for a long time. actually, at this point, u.s. steel at 32 bucks to me is at a major level of resistance that goes back to 2012 when steel prices were actually higher. even though steel prices have rallied, i would be fading steel, half the position. part was blown out on the way down. but i think this reflation trade has legs. copper is how you play that. the pure copper play, as people think, at least is freeport, southern copper, scco, you imbeauty that to eastboubitdebi

analysts are way behind the curve. >> does it keep going, and if not, what stops it? >> you guys would be surprised. i'm not very impressed with this rally so far. i see churn. and the s&p 500 up almost 3% from the day after the election. i see the dow jones industrial average obviously outperforming, and the index, 30 points in goldman sachs certainly helps the dow jones industrial average. guy has been hitting the small caps, the russell 2000. >> 18 days in a row. what's not to like? >> listen, there is plenty to like, but don't boo at an all-time high. i'll tell you a is he can to are and i've been hitting it. look at the relatively performance that large energy stocks have made, in particular the xle, 40% of that is exxon. chevron, and schlumberger. we see crude oil down almost 10% from its recent highs. the dollar strength. and yet the xle is breaking out. so that's great relative outperformance. that's one i would play for a breakout. >> well, i mean, if you think about the waitings of the financials and energy and the

s&p right now, which is what i would prefer to talk about rather than the dow, you can make an argument energy is a way to go. how can you not say that this rally hasn't been brood and deep and removed the pow remember hanging over not only health care and financials, but you have given a green light even to retail. this has been a bad rally. >> we had that move in rates and that's why financials have gotten back in there. we have this idea there is going to be a dough deregulation under a new administration. >> give me the rest. >> hold on, pal. >> okay. and then we have health care stocks, which obviously something has been lifted off of that, the idea in the new administration. so we have had mega cap tech that is taking a breather. no doubt they have taken a breather. >> what has apple done in the last five days? how about this. for instance, november 14th. when the fangs and apple maybe bottomed. facebook up 5.5%. amazon up 10. netflix 4, google 5, apple 5.5. that is impressive in and of

itself. >> especially with the rotation. >> new money going into the market. >> the other tailwind could be the tax cut. so when people start talking about derig legislation, we have no idea what deregulation is going to look like. we know in the next couple months, we probably, most likely will see a tax cut going from eight brackets to three. >> and then you get more regulation on the banks. >> i got that. but that trade could be over. i agree i think the xlf is overextended and the industrials are overextended. i agree that retail has further room to go. >> dan raises an interesting point in that i think the rally -- most people would say -- maybe disagree or not. maybe you raise your point of view, it hasn't been impressive. i think it's been fairly impressive. the question is, though, if haven't played it, you made the statement, i wouldn't put money to work or i wouldn't chase that. two different issues, and a valid one. >> you know what is the biggest rally, rates and the dollar. and if anything, those are the very things that actually are going to hit this market rally like a ton of bricks. >> unless you get growth in the

economy. >> okay, but based on what? see, this is what i don't buy. okay? if you're telling me that you're going to have all this deregulation and tax cuts and all -- basically going to amount to deficit spending if you have this infrastructure and stuff that happens. i just don't see it. and i don't think that this first 100 days is going to go as well as the markets are -- >> s&p and financials as growth stocks. it's not a show-me right now. people are saying, buy first. let's look at earnings later. but never underestimate the power of a tax cut to put 10% more money in our pockets on a federal basis. >> we have buyers of stocks on the desk today or no? >> i bought spdrs today and added to pulte and kb homes. >> i bought a little more freeport and cliffs. and to me -- remember with commodities, you don't buy them when you're cheap. you buy them when this is momentum behind them. and when you look at the iron ore prices and coke prices, this

is an argument and exactly why u.s. steel is up 50%. you can't tell me that is an insane rally in the last month. that's something i would probably rather be fading. but the components of making steel have still underperformed this rally, and i think that's -- >> so it's not too late to buy this market? >> let's put it this way. his first 100 days is 50 days, give or take, from now. 50 days from now, the s&p could have an entirely different handle, meaning, you know, 2,200 now, we could be talking about 2350, 2400. i'm not pretending i've been some bull. i'm not. but the chaise for performance s absolutely real. so to try to fight it at this point, i don't know what the monkey wrench is going to get thrown in. >> i want to say this. you mentioned u.s. steel. when it topped out in 2014, it went down 85%, it went down 85%. and what was going on in 2014? the hope of a reflation -- a global reflation trade and the floor fell out and the dollar started to rally. and so if you look at what's going on right now -- >> no one is buying u.s. steel today. we have been using it as an

example of where things have underperformed the steel sector but might have similar momentum from fiscal policy or reflation. the reflation trade has been going on for six months, dan. i'm not saying this just started. i've been talking about this for six months and you have an opportunity to look at places. i can, by the way, big cap oil, relative to $46 is expensive. i think oil is going higher. >> the last time you had all four of the major u.s. averages hit record highs on the same day was back in 1999. do we need to start thinking about whether we've -- gone a little bit too far? >> i don't think there's a bubble -- i don't think there's a bubble in stocks, like there was in 1999. there may be a bubble in euphoria and hope right now. that's important to differentiate. for those of you around -- >> is there a bubble in trump and what he's going to do for the market? >> no doubt about it. think about what was going on in 1999, people were worried they were going to come in on monday morning and their computers weren't going to work. that's how i feel about this new administration in a way. let's see what january 24th

looks like. and it may be similar to y2k. >> i agree with that, dan. and you can't say -- from whatever side of the aisle you're on, removing the elections is a major, major relief for markets. even if you don't know -- if anything, the sky -- >> walking tape bomb, tim. a walking tape bomb. >> first of all, you -- >> my point, you've got to -- a market which was very defensive and a whole lot of cash and you can't tell me, because i agree with you. political uncertainty, if anything, has gone up and as high as it's been in 30 years in this country and yet the market has been -- people were sidelined and waiting for this event. >> futures down. when they came and rallied back, the market has decided they think he's pro growth. >> well, with dow 19,000 out of the way, could 20,000 be close by? one technician says he's eyeing three stocks that could get us there. let's go off the charts now with rich ross. >> thank you for having me. look, there is a time to fight and a time for fun with seasonty

momentum, this is a time for fun. i'm going to show you three grate ways to party. caterpillar. which discussed a month ago, cat was a dog, it was the worst performer last year, the best performer this year. this is just a nice up trend, don't need to be a technician to appreciate that. this what you love about caterpillar. i've been skeptical, as have many about this name. a perennial disappointment. i know a base of support when i need it and a base breakout and that tells me, regardless of what you think about the world, caterpillar is a buy on that breakout. now we talk about chevron. we have already alluded to the fact we have a technical breakout here. to a multiyear high against the backdrop of a stronger dollar and a 10% decline in crude, as we go into opec. now, i don't know anything more about opec than any of you. but i know a base breakout when i see it and when we have reclaimed the 200 week for the first time since october of 2014, when opec let the floodgates go and crude collapsed and deflationary fears took hold.

we're book ending that move on the breakout so you want to be a buyer of chevron. and finally, here we go. goldman sachs. so you're thinking you missed it. you're up 20, 2-0% since the election and it's not going to give you a comfortable entry point. you broke back, impulsive move above the 200 day, another $50 of up side. traders like three things. higher yields, higher volatility, and fleece vests. this is a great way to get all three. those are three stocks to play higher in the dow. >> that's funny. >> he's unbelievable. >> just on the fleece vest comment alone, i would like to have him over at the desk. it's your call, scott. >> not mine. it's yours. come on over. >> fleece vest. >> did they ever tell you to get lost, anyway? that would be cool -- he goes through the whole routine -- >> i think you're supposed to bring us fleece vests. it's the holidays. we're all a little chilly here. >> yes, you will have some evercore vests in your stocking. >> what have you got for him? >> you brought him over here. >> real quick. so caterpillar. they just came out with retail

numbers. weren't fantastic. and i get the technical thing for caterpillar, which is -- you're a specialist there. but at 30 times forward earnings, you've got to believe that every whole dug over the next five years is going to have one of those big old cat tractors behind it. because without that, the stock is very expensive. >> well, guy, along those lines, what do they have in term of this trump rally. reflation, inflation, fiscal stimul stimulus, infrastructure, spending. you want to build a highway, you've got to move some earth. copper, freerpt. you want to get that out of the ground, you need a cat tractor. it's not my area of expertise. but this is season over reason. this is "fast money." we're trading here. this is not one to own for the next 600 years. you're buying a multiyear-based breakout with fiscal stimulus coming down the pike, whether you like it or not, especially in the month of december. >> how are you doing with the aussie dollar? i know you're not terribly bullish. that should be the guys that are lifting and pulling. it's all coming from places like australia. >> look, there are some

inconsistencies out there, no doubt. i've highlighted them myself. we associate copper strength with aussie strength, reflation strength. we have seen the crude currencies and the ruble hold up better. we're in the market where dollar strength is overwhelming those macro cross currents. and once again, i think you leave your troubles outside in late november through the month of december. and we worry about trump and markets and these legitimate macro concerns in the new year. >> rich, thanks. >> thank you. >> appreciate it. have a good thanksgiving. >> happy holiday. >> you know where to send him. >> got to get a vest for scott, too. >> no do doubt. >> i think it's really important. seasonally, we have the chance of going higher into year-end. we know we have the fed meeting december 14th. an absolute certainty. maybe people start pricing higher than 25-point basis point raise. the next meeting is february 2. i think january is going to be very volatility. higher we go right now into december, i think the lower we go in early january. >> all right. see you soon. >> thank you. >> you want to trade some of

these names? >> caterpillar? >> caterpillar too expensive. you're not going to get -- right now, you're not going to get in the momentum. the stock is up probably 46% or so this year alone. probably room to the up side. but i will tell you this. closer you get to earnings, the more you've got to take profit. >> how about goldman. >> interesting to cat, those levels up there, right where we are right now on cap, i don't think you need to chase it. >> and i don't think you need to chase gold maman either. and cat, i sold based on infrastructure. i don't -- i was waiting for this thing to mr. a base like rich was talking about. it got a little squishy for me. so i exited the trade. but goldman, those are ones you cannot chase. they're overextended. coming up, donald trump laying out his plan for his first 100 days in office. plus, one of the biggest bears on the street, david stockman, said sell everything right before the election. that hasn't worked out well. and despite record highs, still saying to sell everything.

what does he see that others don't? we'll be here to make his case. and some of the most hated stocks on wall street are soaring. we'll give you the names that are so bad, they might actually be good. much mar "fast," straight ahead. mobility is very important to me. that's why i use e*trade mobile. it's on all my mobile devices, so it suits my mobile lifestyle. and it keeps my investments fully mobile... even when i'm on the move. sign up at etrade.com and get up to six hundred dollars.

on trade, i am going to issue our notification of intent to withdraw from the trans-pacific partnership. a potential disaster for our country. instead, we will negotiate fair, bilateral trade deals that bring jobs and industry back on to american shores. >> that was president-elect donald trump talking about how he plans to withdraw from the trans-pacific partnership in his first days in the white house. so which companies will feel the most pain first? the u.s. imports, about 98% of its footwear, and nike in particular has long supported the tpp agreement. the sneaker giant heavily invested in manufacturing abroad and low-wage economies and could be hard-pressed to make a move back to the u.s. while keeping prices down. in a statement last night, the shoe giant said, nike has long been committed to fair and free trade, and we will continue to advocate for policies and programs that allow us to innovate and expand our business. while creating new jobs and driving economic growth, could nike be a big loser, dan?

the trump administration? >> i think from a sentiment standpoint, i would be very, very surprised if there is some sort of massive event that hits nike and their manufacturing in the next year or two. here's a stock that is massively underperformed the broad market down 17%. barely a bounce. if anything. so investors may be focused on this. they're probably focused on other issues. and obviously we have seen sales growth decelerate. it is an expensive stock here. the dollar doesn't help them a heck of a lot. there are a whole host of things. and this is the point i was making in the prior block. i think there are a lot of things that cancel each other out as we look to the new administration policy. >> there is a lot of bad news and the valuations come back down to earth. i think there are more things like dtc, direct to consumers, now at their last check, and it's going to be north of 30% coming up, which means their margins are higher. nike's big problem and weird to talk about it like it's a tech company, but innovation. the things that set them are

apart, one of the reasons why under armour has eaten their lunch, even though they're doing significantly worse. >> the one in this space that is worth the best is foot locker. >> a beast. karen has been talking about that for a long time. unbelievable. >> and again today. >> exactly. you go back to nike real quick. i would -- i think in 19.5, 20 times forward earnings, probably reasonably validity point. i think they report december 14th or 15th. so we have had four disappointing quarters in a row, as dan just mentioned. it's been in this down trend since the end of last year, but maybe you catch a break, buy it on a flier, i think it's worth the low. >> one point. can we all agree, by the time manufacturing jobs and for companies like nike come back to the u.s., there's going to be robots, manufacturing them? so it's really not about jobs. and that's the thing -- >> not going to come back with the same work force that -- they can't afford it. so they would have to come back with robots doing it. but if you're selling nike -- >> do we really believe nike is all of a sudden going to start manufacturing sneakers in the

united states? >> no, they won't do it. they have invested too much money overseas. >> but if they try to slap huge tariffs -- >> there is going to be no tariffs. he threatened to do that, but after he got elected, there's not going to be tariffs. and tpp does not address currency manipulation. when he talks about bilateral agreements, i think nike could be a benefit faciary of it. apple teasing a black friday sale. the tech giant didn't release any details about what will be discounted but launched a new holiday page. is it a bad sign that apple needs to join in on the black friday discounts? >> absolutely not. it's a sign this is actually how people are doing business. is it a bad sign that best buy was doing black friday three weeks ago? ultimately, you're at a place where retailers are adjusting and product manufacturers to a new paradigm where actually i think you've got to do this. you've got to be creative. i don't think -- look, apple's weakness or this is not a sign of a lack of innovation that suddenly is new for anybody in the market. and they're not suffering

because of that. >> i thought apple incorrectly was into a lot better if trump got elected because of the amount of money overseas. if he repatriates all the money he says he is, the winner should be apple. and frankly, traded okay since the trump presidency. i think it should have room to the up side. i really don't know what the problem is at this point. >> the problem is the product lineup. you know, listen. as far as the black friday sales, you know, in the past when they have these sales, they discount their products 3 to 4%. but the problem really is the fact that they have a watch that nobody wants. which is at a reasonable price point, and that should be a great holiday seller when you think about it. >> how many do you own? >> none. they introduced this new ipad pro that's a lot more expensive and gameticy than the last one. iphone 7. >> is that what you own? >> they spell it differently than mac book. >> but that is the problem. they have a pretty lackluster product offering right now. >> this thing is the original -- not even kidding around.

you tell me how old this thing is. >> april 2010, people. >> amazing. peak auto sales, not too fast. we'll tell you why america could be on the brink of an auto boom. and that's coming after the break. you're watching "fast money" on cnbc, first in business worldwide. in the meantime, here's what else is coming up on "fast." that's exactly what the bears missing the rally after the election looked like. but one of the biggest bears of all, david stockman, is doubling down on his call to sell everything. he's here to explain why. plus -- >> i've been doing a lot of thinking. and the thing is, i love you. >> what? >> that's what traders are saying about some of the most hated stocks in the street. we'll tell you the names and what has investors changing their tune. when "fast money" returns. medi, the open enrollment period is here. the time to choose your medicare coverage begins october 15th and ends december 7th. so call unitedhealthcare to enroll... in a plan that could give you the benefits and stability

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the trump rally continued today with all major u.s. indexes hitting record highs. the dow closing above 19,000 for the first time ever, while the s&p closed above 2200. here's what's coming up in the second half of this show. that stock right there is up more than 200% this year, and one trader is betting $3 million that it can keep rallying. we'll tell you just how high they see it going. plus, missing that new car smell? well, you're not alone, because cars are getting older and that could mean great things for the auto stocks. we'll explain. let's start, though, with the record run in stocks and the perma bears, david stockman joined "fast money" before the election and delivered this dire warning for investors. >> the markets are hideously inflated. we know there -- >> how hideously? when somebody comes on and says sell everything, that can only mean they're seeing some

horrible, horrible impacts, horrible drawdown to come. >> the markets are delusional. as soon as we drift into the next recession -- >> drawdown on markets? >> there could be a 25% drawdown. >> well, since that californis& gained 5%. now he is doubling down on his original prediction. let's go bear hunting and find out why. david joins us now on the fast line. welcome back. nice to talk to you tonight. >> glad to be with you. >> so what do you think of this trump rally? >> well, i said sell the stock, sell the bonds, get out of the casino. i reiterate that call. the bonds have already cratered, down something like $2 trillion worldwide and we've got miles to go. this 5% eruption, i think, is meaningless. some robo machines trying to tag new highs. what i see ahead is a fiscal bloodbath in washington for the next year. not the stimulus that everyone is imagining.

no big tax cut, no big infrastructure program. what i see ahead is a $20 trillion debt ceiling bomb that's going to go off in mid march. they will spend the year arm wrestling over that. and creating huge amounts of uncertainty. i see a frozen fed on the zero bond that can do nothing. i see a recession coming down the pike in 2017. but there will be no bailout, because as i've said, fiscal policy will be in a bloodbath and the fed is out of business. so the stock market is going to go down, and it's going to -- you know, stay down long and hard, because for the first time in 25 years, there's nothing to bail it out. >> okay. >> and -- >> guys? david, let me open it up to the floor, there was a lot there. >> david, it's tim. i have to give you credit. you also predicted trump would win and ultimately said it's ripping the band-aid off but not

comfortable. what part is this going to work? is any part of this going to work? >> i don't think any part of it is going to be enacted. that's the key thing. this isn't 1981 with ronald reagan when we had a $1 trillion national debt. this is $20 trillion. reagan got his tax cut through by a fluke, because he got shot and for a couple months, there was some sympathy. otherwise, it never would have happened. this isn't 1965, when johnson had some huge mandate. trump doesn't have any. trump has no program, no mandate. a frail majority that will shatter in the house. republican party is a coalition of gangs. neocons who basically only care about defense and a few more wars. social cons, and the freedom caucus who will never buy massive additions to the deficit. which, frankly, will hit $800

billion in trump's first year before one dime of his broker -- >> david, it's scott again. i think -- you know, one interesting thing, i guess, when you talk to so-called perma bears, it's hard, if not impossible, to get them to change their opinion. no matter what happens. a surprise trump win. the prospects of a tax cut and an infrastructure spend. yet the perma bears always remain bearish. what would change your point of view? >> well, i thought trump was going to win, and that's why there is a disaster down the road. he can't govern. you don't realize how dysfunctional washington is. this is just talk about -- >> but if hillary -- you were calling for the market to have a serious correction when everybody thought hillary was going to win. >> i'm calling for -- if i may say, scott, i'm calling for a serious correction. i'm not smart enough to know when. but i know this market is basically betting on a huge

fiscal stimulus, almost everyone realizes the fed is done. there's not much more it can do. and my point is, this huge fiscal stimulus isn't going to happen. there is going to be a fiscal horror show that we haven't visited for the last 30 or 40 years. people don't realize how rapidly the deficit is deteriorating, and how rapidly the economy is dropping into recession. i look at the irs, not the bls. revenues in the last six months are down by $40 billion from prior year, 2%. that's always a sign of an economy that's, you know, heading for problems. not an economy that somehow is recovering. so you have a weak economy, and no fiscal stimulus, even close to what they're talking about, you -- if you like the s&p today at 24 times earnings, you'll

love it at 40 times earnings. because when we get the next recession, that's where earnings will be. >> yeah. david, thanks for joining us. i appreciate you coming to the phone tonight. >> okay. >> david stockman. everything he says is factual, except for the 25% drawdown, which he thinks could happen, he doesn't know when. everything he talks about is factual, right? i mean, we are in debt-wise, in dire straits. but with that said, we have been there for quite some time. i can't -- he might be right, but he might be right from s&p 2500. and i think he basically just acknowledged that. >> david can't stabbnd deficits. to guy's point, we have been that way for a long time. back with reagan. that's why david left in the reagan administration. but reagan never had undivided government. they have undivided government and they know the world is watching. this fiscal stimulus, the infrastructure spend, will happen. >> his point is, and it's going to be even worse. >> it will -- >> if it does happen. >> it will happen. >> that's the thing that's confusing. david has pointed out, he has

trouble thinking any of this stuff is going to happen. if it doesn't happen, we're back to where we were. i think what he does think will ahappen is the attack on the fed. and they can't jump in to step in. >> you have had people like stan druk and miller got out of gold. he was short what he called bubbles. and those were generally yields -- bonds around the world. so what -- what about now? >> even carl icahn warned about similar -- things that david just talked about. carl was talking about six months ago. he talked about it on your show at noon. so, i mean, the fear is out there. well-founded. and well-vocalized. >> it sure doesn't feel fearful. >> let's drop this into -- >> people are talking about selling gold, not buying gold. >> i understand. >> you know, gold investors are, i think, all over the map and very emotional. it doesn't mean i don't believe in gold. in fact, i do. but back to the market, and i think dan has put this in a context of saying, look, i don't believe a lot of stuff is going to huh. i think it's scary, but i think

the market has some room to run. >> and you have a valid point as to whether this rally has gotten out of hand. >> this is what you want -- >> he's not even in office yet. >> that's the point. the market always prices ahead six months. >> it may be doing that. if it doesn't happen in six months, if we go into recession, there is some sort of financial crisis in 2000, fed fund futures at 6%. >> cyclical -- they will happen. >> 2007, fed fund futures at 5%. there really is no room for them. they're going to have to go crazy into negative, and then when you talk about all this deficit stuff or whatever, you just -- >> the market already raised rates without yellen saying a word. now, when you look at tax cuts, tax cuts will happen. first of all, ryan's plan already has a corporate tax plan. these tax cuts, they will happen. will the infrastructure plan be smaller than $2 trillion? possibly. there is a lot of room left. coming up, a number of the most heavily shorted stocks on wall street surging since election day.

the names traders love to hate. and have you bought a new car recently? probably not. we're going to tell you why aging autos could actually be a good thing. you're watching "fast money" on cnbc, first in business worldwide.

welcome back to "fast money." we are looking at a dramatic reversal in shares of game stop. gaining an after hours trade now after dropping as much as 5% immediately after releasing earnings. the video game retailer forecasting a bigger than expected decline in same-store sales for the crucial holiday quarter, as more players switch to downloading games on their consoles. analysts expecting a 7% drop at gamestop says it sees sales falling between 7 and 12%. but it did see stronger sales in its technology brands and collectibles category helped by demand for pokemon items. that perhaps easing investor concerns for now. shares of gamestop still down 14% year-to-date. scott. >> seema thanks so much. gamestop. >> it scares me because of the dividend yield. what's encouraging and dom chu is about to talk about heavily shorted stocks and hated stocks. gamestop about 30%. so at seven times or so forward earnings, which is relatively

inexpensive, this quarter is good enough to get the stock up probably another 10%. >> problem is, they have nomar key name that's coming out. they usually need a brand, a new system to come out. playstation has one out already. xbox is probably going to be out in the next couple months. but take two -- ttwo, is the ticker symbol, up 35%. they're doing great on the digital platform. >> gamestop one of the most heavily shorted stocks in the market. these are stocks investors are betting will fall. and dom chu is here with other names traders love to hate, which have done quite well. >> they have done quite well. we know when there is a slightly positive catalyst to some of these that have an excessive amount of pessimism, it can cascade into something pretty big. you mentioned gamestop. let's go through some of the other consumer related names. if you take a look at some of the numbers, it's interesting, because some of these are russell 1,000, so larger cap but broader in terms of index size. these names, the most hated

ones, we picked out a few you might have heard. first of all, nordstrom, almost a quarter of the float out there is short. so a consumer name that's been beaten down pretty well in the upper end of the consumer spectrum. that's one to watch there. also, jcpenney. this has been a monster all year long. we know what kinds of problems these guys have had over the past couple years. also up about 20%, a quarter of its shares float. >> new high today. >> correct, new high today. sprint, another one of those ones, and twilio, both -- sprint about 26% of the shares again, afloat short. and then twilio. 60-plus-percent. i want to see 63% of the float is now short. so when you have this kind of a pessimistic behavior from traders, they love to hate them. all it takes is one little bit, and then you get the squeeze, scott, like you were saying. those are four of the ones we're watching, at least. >> gu lice like what people love to hate? >> i love dom chu. look at that pocket square.

>> i love to love dom. >> i'm sorry. my bad. >> nordstrom has a great woman's shoe department. >> that expertise comes in handy. >> yes, it does. you've seen the short squeeze in this stock, going from $35 to $60 in the last couple months. we're bunching up against levels we saw at the beginning of the year. this is one i would be inclined to fade. >> why are these stocks mostly shorted. jcpenney and nordstroms, secular challenges. why do you think this is going to turn around? the fact that 20% short interest turns into a 720% rally off the lows, because last quarter margins were better, that is something you fade. >> jcpenney, in and out of this name. and marvin ellison, ceo, decided to sell appliances. he's got a bigger margin on appliances, something that's definitely -- improved. >> top business? >> it's approved, our show-me story. this is one where short interest, has dom was saying,

can be that tail wind. jcpenney, i'm not in it currently, though. >> i would say for these department stores, if you're in them right now, you're in there for the death rattle. i think the shorts are right on this. massive consolidation in the space over the next couple years. and so to me, i just think consumer shopping very differently. they don't have the omni channel strategies that it takes to compete with the likes of an amazon. so to me, i think they're short. >> the thing about the department stores, macy's, these great balance sheets. if you think they are going out of business, they're not. >> did you just say the death rattle? that's dark! >> have you been into a jcpenney recently? >> i would say nordstrom has an omni channel presence. >> but dom, they don't need to exist. macy's doesn't need to exist, dillard's doesn't need to exist. neiman marcus -- >> why is that? >> because that's not how people are going to be shopping in the next few years. >> it's not how you shop. >> i'm 90% online. and i don't go into --

>> fine. >> i'm just saying, you're on the wrong side of history if you think people are still going to be trolling around malls and stuff like that in the next few years. >> listen, i know that i am. because that's how i got my exercise. i have my little -- sneakers on, i walk around with my coffee. >> chess king, guess shirts. >> you're very welcome, guys. still ahead, the stock up more than 400%. which stock? that one. up from its january low and one trader just bet $3 million it could go higher. we're going to tell you what it is and how you can get in. and a study showing the average age of america's car might be higher than you think. what will that mean for the auto industry? phil lebeau is all over that story. hey, phil. >> scott, you know i love charts. coming up, i've got a chart that will make you say, i get it. i understand why people are hanging on to their cars for so long. we'll show you that chart and what it means for the auto industry when "fast money" returns. incredible bladder protection in a pad this thin, i didn't...

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if we look at home price appreciation, we have seen great appreciation in certain parts of the country. for example, boston is fully recovered. >> right. >> but if you look at the middle part of the country, not so much. prices in chicago, still down double digit. prices on -- in florida and in california, still down double

digit. and as home prices appreciate, something happens with the homeowner. they think of their home as an investment, and not an expense. and they spend differently in their home. >> that was the home depot cfo, talking to jim cramer, moments ago, and home depot was the second-best performer on the dow today. do we like that trade? >> you've got to stay with it. tim did a great job last night in lowe's in our power pitch or pitch perfect. it was fantastic. >> wasn't depot down -- depot was down last week on earnings, right? >> down big. probably 132 -- look at lowe's, home depot, over the last couple months. they have definitely parted ways. with that said -- >> diverged? >> diverged. i think home depot is a great story. >> valuations is a little expensive. again, as tim pointed out. but the story is teflon. >> next week i'll teach you about ties. the last numbers where home depot was up 5.5% and depot 2.7.

ultimate ultimately, there is argument about where the traffic is and quality of business. either way, both names should be traded. i think based upon only the differences of efficiency. clearly, lowe's less efficient but the trade is back on. and you think about where household formation is and where are people putting their assets and home equity loans, they're putting them in their houses. >> and, of course -- you have a rebuttal? >> me, what am a rebutting? >> you motioned. >> you know where i'm looking, because kristen is in my ear telling me something and i stuck my tongue out at her. >> who is kristen? >> in ec. kristen is in englewood cliffs and she yelled at me because i did something i shouldn't be doing and i was making a face. i'm just saying. >> that's boring for people. >> i saw emotion. >> my bad. back to you, scott. >> okay, of course. of course, you can catch that whole interview with "mad money," on "mad money," with jim cramer at 6:00 p.m. eastern time. the average age of an american's car hit a record high. phil lebeau is in chicago with

more. hey, phil. >> scott, this is important. you hear so many people talking about we're at peak autos. people aren't going to buy new vehicles any more. there is still pent up demand out there. look at this data. every year, they analyze vehicle registration data and basically what they found is that right now, the average age of a vehicle is 11.6 years, up slightly from 2015. that is a record high. and 23% of the vehicles in the u.s. are 16 years old or older. that means they're built in the '80s, '90s, up to 2000, 2001. this is the chart i was talking about. i love this chart. because this shows how long new vehicle buyers on average are holding on to their vehicles. back in 2000, four years. now it's more than 6.5 years. some of that is because vehicles are more expensive and stretching out loan payments. the other reason, vehicles are much more reliable. >> people hung on to their vehicles for, 100,000 miles. that was a pretty good stretch

for that vehicle. now when that vehicle is 11.5, 11.6, as average age, you're now talking about, you know, 110, 115,000 miles is halfway through its life. >> so why is this considered good news for the auto industry? particularly for auto dealers? look at it this way. you should not think of the dealership simply in terms of sales of new vehicles. where do they make their biggest profits? in the servicing of vehicles. and as vehicles get older, more and more people are bringing their vehicles into dealerships for servicing. they also have a better opportunity to get people to do a trade-in and move it from there. the other trade, guys, and we have talked about this in the past. the auto parts retailers. the auto zones, the advanced auto parts. more and more people are saying, look, i've got a 16-year-old vehicle, maybe i'll change the spark plugs myself or the brakes or whatever needs to be replaced. bottom line is, we're a country with old vehicles, and that's not changing any time soon. >> all right. phil, good stuff. thank you. phil lebeau in chicago for us.

you want to trade the automakers? one firm -- i can't remember which it was, said sell gm and ford. >> if these guys -- they have reaffirmed in 2017, as best they can. and six times earnings or five and a half times, i say long this name. i think it's a decent dividend. that's not why i own it. i own it for the a elevation in a company that hasn't mortgaged their margins on a present business. >> i think you've got to go a different ways. cars are computers. that's why you see people waiting -- unlike this one here. and video -- up 184%. >> making the analogy work. >> powering right through. down 7%. as computers -- test one. look at them as computers. we don't know what the car-sharing business is going to look like. we don't know. so to phil's point, i don't know what peak autos look like but i know people are holding back on the purchases. >> dan is at the smart board. we're running out of time. go to him. >> auto zone. upgraded in september for the reasons that phil just talked about.

auto zone looks expensive because of the price tag but on valuation, it's cheap. >> all right. shifting gears. one chip stock up 2% year-to-date and someone is making it $3 million bet that rally will continue. dan has got the deep pockets. what's the name? >> yeah, right. it's amd. and grasso, you almost stole my thunder here. >> no, good lead-in. >> amd is up in sympathy with invidia, a market cap company. today call volume was hot, five times that of puts and one very large bullish roll in the stock when it was trading about 880 as traders sold to close. 29,000 of the april 7 calls at $2.49. that's about $7 million in premium. and they bought to open 29,000 of the april 10 calls for $1.09 that breaks even at $11.09, 26% higher than current levels. that's for a stock up 400% from its 2016 lows. here's this chart. when you look at it, it's just been ramping like crazy.

here's the long-term chart and this is what may be what this trader sees looking at the $10 level, a breakout above that to finding their risk, taking some profits off and moving a bit higher. i just want to make one point that's really important. amd is expected to have $4.3 billion in sales this year and only $4.3 million in net week. on the film side of that, invidia is amazingly profitable. a lot of things have to go right for these guys to turn a profitability and for this to go higher. >> i thought all the points you made were important, not just the last one. and that's just for the record. >> the points we've been making on the desk all night. all right. for more "options action," check out the full show next friday, 5:30 p.m. eastern time. coming up, tim playing catchup with one beaten group of stocks when "fast money" returns. hey gary, what'd you got here? this bad boy is a mobile trading desk

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it. >> honeywell is going to close the gap from when they preannounced. >> not nearly as much as i appreciate it, guy. >> liar. >> chief. >> all right, i'm scott wapner. "fast money" 5:00 p.m. tomorrow. "mad money" with . . . my mission is simple, to make you money. i'm here to level the playing field for all investors. there is always a bull market squr. i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. i am just trying to make you money. my job is not just entertainment but to educate. call me at