i think he changed the game. >> thank you for joining us. we can all -- >> a man crush? you have a crush? >> roger federer and charlie monger. >> thank you for joining us. i'll see you everybody on the monday after next. that does it for "closing bell" and "fast money" starts right now. >> overlooking new york city's times square. tonight on the fast, tesla soaring since the lex but elon musk's friendship with the new president isn't the only reason why. adam will be here to explain what he says is the real reason to guy stock. plus, the retail wreck wages on. all sinking on jitters over possible border attacks but there's one big reason you might want to be buying. and later, big tech's moment of

truthful part 2. as they all get set to report on earnings next week. we'll tell you which ones could be with to break out. first trump's first week in office and it was a bit of a bumpy ride but the markets didn't seem to notice. in fact, soaring to new highs. the dow and the s&p 500 up 1% this week. the nasdaq up nearly 2%. and this in the face of a number of head winds. tensions between the and u.s. mexico heated up. showing less than 2% growth for the fourth quarter and some reports from big names. particularly on the dow jones. but nothing seemed to the rally the rally. look through this noise. >> i hate to say just buy blindly. i don't think that's what you're implying. the reality is the market seems to want to gap higher. look at the vix today. negative on the day again and i've said for the last couple weeks, i don't want to pretend

i'm some raging bull. i haven't been and i'm not necessarily. i think the vix is headed to single digits like a nine handle which is not that far. people will say you're nuts. the level of complacency out there is palpable. i think what you're talking about, because although earnings haven't been great, some of the dow names, tim and bk talked about it. intel which started out lower. reverse asked went higher today. you're seeing strength where you need to see it. gdp is backward looking so i don't want to make a deal out of this 1.9 that came out today. right now the market seems to be all systems go. >> complacency has an ominous tone to it. you say they're complacent, they're not paying attention. and you're saying that. so we get to a point with the fed next week, we have a lot more. and i know it was an exciting week for dow 20,000 which it was for all the right reasons. if you look at the s&p over the

last two years, we've annualized 5%. we're up 7% since the rally. but from six months ago, look at it in its entirety. >> relaxed meaning what? >> i don't think it has been as gang busters as run as people want to call it. the market was facing a lot of uncertainty for a while. you have the relief after the election. you have the announcement of fiscal policy. this week you have a lot of very concrete moves to get you down that road. but the reality is stocks have done very little in the fast two years. i don't think this is a runaway train. >> it is your time. what day is today? the 27th? yeah. so 27 days and 5%. >> look at the stock market's move over the last six months. we're talking about 6%. >> which means that it can go higher. especially if you talk about rotation. a lot of guys to tim's point were caught in the wrong areas. or the right areas for the right

time. now they want to be out of bonds and into equities. they want to play the dollar. pl play s&p. you stepped in and was the the financials, energy names. now do i buy those names? even though i know there is a good chance that a lot of these names will go higher. there's a good chance. >> how much fear is there in you look at the markets and say s&p nerngs 2017. probably 17, 18 times? not overly expensive. next year, $136 in earnings. roughly -- >> but saying we're going to be at $136 is something that we have not been able to do. >> my point is that's without trump initiatives. add that into the mix. >> but your base case -- >> no. that's just sort of the street. >> you're saying that trump and

ryan are not in this stock market rally. of course they are. >> the sectors have proven to rally appropriately. the financials have rallied appropriately. >> but here's the part. they've rallied fast. they've rallied really fiercely. >> what's your bottom line? >> people want to buy this market. they want to establish full positions. >> but they don't have it yet. it's a name that we've been long. she's still long in the name. right out of trump. it was $78. ran up to mid 90s. i sold it. karen sold half. now it's $128. that's an incredible move. what do you do with it? i've said this before. do you still ride the gains? at a certain point, do you tring register? you have to assume that every part will be from united rentals. >> if you had those gains, isn't

it your responsibility to lock them in? >> it is. i sold mine. she sold half which is good. and she's riding it on the other half. >> let me ask this. i think you're a good one here. in your opinion, where is the up side, down side? >> i think in the short run like, always, it is about a time horizon. i think after a lot of optimism, not necessarily back substantial fundamentals, gdp, backward looking, we know. we just print 1.6. a lot of people are calling for 3 plus percent. that is a show me. the flash pmis which are january based this week were fantastic. you want to get excited. there is a lot of economic information saying the world was better. and my only point was i think people should relax. if you look at the whole thing, this is something carter worth might say. this hasn't been that extraordinary of a run.

yes. off the election bottom. if you want to do that, look at the dax. 440 basis points. >> what did you do today? >> well, priceline is a name we've been talking about for a long time. the names continue to work. i think this is important. tim talks about this. i agree by the way. pete talks about it all the time. you buy insurance when you can, not when you have to. what i think is going on. people have done that for so long. now they're saying, why am i -- and not getting reward for it. that's one of my main concerns. then you get to the point where it can go lower. i think the vix can go lower despite what conventional -- >> people are hedging in different ways. maybe it's a different ideology. this has been a trend.

the vix is not something that is a new issue. not a new phenomenon. >> what do we do today? >> the question is, financials didn't necessarily take off today. right? i think we can, we need a lot more rate discussions going forward. good for the financials. deregulation, massive tail wind. don't forget the structure. lawyers get let go. all sorts of back function. i think there's a cost perspective. >> what did i today, what i've been doing every time we get a pullback in some of the trades and value oriented trades. these things in the minors, in the autos. i've been trading around a little more aggressively. the reslowed what we're going for. >> with markets hitting record highs this week, what key levels do you reach? >> i like to look at this as a buy, sell, hold. the beauty of technicals, they give you all the answers. you have to pick your own risk

analysis. so let's call this the 227. this was the low december 30. so everyone knows i love retracements. you look for what? 150% and the 106. that's where the top is. the specific sell zone is for a retracement level. it is so tight here. this is 150 retracement. this is the, let's just call it 2,300. if we break through to that, you must stay on board this rally. if we break down, let's call it right here again. this is your first stutter step. the 20-day moving average is 2271. that's going to be your first hiccup to the down side. if you're really, really safe on the long side, you can lighten

up at that level. then you go your 50 day. which is 2245. this is for your average. your average trade here really wants to have a defined line between bull and bear. ultimately, unfortunately, this rally, as long as it stays above this level. a guy knows this level very well. the old highs. 2134. it is the rally is still intact. the problem is that this is a long way to go and you're giving up all your recent gains. >> help me understand, when something breaches one of those levels. the 2,300, the 2277. how much below in i think people get confused where they will take, be little. or do you want to stay there. >> great question. two things i look at.

i look at a closing basis and a three-day rule. i would need to stay below it for three days. unfortunately, kit get really wimpy. if it closes -- >> should we invite grasso back? >> one last question? >> if we pulled back, what is that perspective? roughly? >> we're on the way down. >> 5%. right? >> yeah all right. i was going to say, protect the spiders. >> coming up, e-lon musk is cozying up to president trump. but that's not the only reason to guy stock. plus, the retail rages on as the

biggest names get hit over fears of a border tax. there's one reason you might want to own these stocks right now. we'll explain. plus, tech didn't impress investors but there is one stock that could be poised. ♪ we're drowning in information. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley.

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only xfinity gives you more to stream to any screen. the rally during as e-lon musk has been seen meeting with the president regularly. you could say they're besties. it could be good for the automaker but it isn't the only reason you should guy stock right now. january 19th, i believe it is. in terms of this close relationship, better deals negotiating with states? tax breaks? what do you think this could mean? >> we're not in a position to be specific what it could mean and we've not valued any of that in our of tesla but i think there's been a lot talked about, 25,000

high-tech manufacturing jobs in this country already. we think they're on pace to expand and get close to 50,000 jobs early next decade. a typical auto manufacturing like that could be a pretty sizable economy behind this company that had zero jobs a few years ago. that's part of it. the other one extends beyond that. the nature of what tesla does, artificial intelligence torsion get a car to drive on the pothole screens of manhattan, to do it safely, the military applications for that technology are a dramatic step down in complexity and collateral liability. throw in space x and the dod contracts and there's lots of different irons in the fire with the elon musk story. >> cynic you upgraded the stock which was just reasonly, you've come up with two other reports. it sounds like you're getting

bullish. what's going on in the past couple weeks that's causing you to walk investors up? >> we just wanted to make extra efforts to remind people of the, in this environment, we're not suggesting there will be any unfavorable treatment toward tesla. but e llon's time is important. if the president announces a mars mission which is speck hated, does he spend more time with space x? these are concerns that maybe a few months ago would have seemed fantastic but maybe more realistic now. and we wanted to, when you're negotiating, or doing public private partnerships for traded partnerships, where the industry going which we've discussed on this program, that involves public private partnerships. if you're dealing with two cities, having those connections, they don't hurt.

wanted to emphasize that. >> capital raise, when does that happen? >> we have not commented on that. we can only point the when elon musk is asked about capital raising, as is a natural part and history of the company. he uses language like we don't need it but doesn't rule it out. >> we do have them sell financing. but their gross cash levels to get to around a billion dollars. so depending on their opportunity, and their opportunism, and taking advantage of the low cost capital, has been and could continue to be an important part of the competitive advantage in building this company. building this economy. >> thank you for coming by. we appreciate it. we've been talking about tesla as a potential trump beneficiary probably since the first time

elon musk was spotted near trump tower. >> adam has forgotten more about this company than i'll ever know, just so we understand it. my thing has been with every piece of bad news that has been thrown at this stock over the last five years, it doesn't seem to want to go down tax certain point, there are no sellers necessarily left nflt my opinion the people thrown stock are in it for the haul. they'll sell it at $80 but not at $180. another reason to be bullish, by the way. i'm sort of in the adam camp. if you see a secondary. every time they've done it it has been an opportunity to buy the stock. >> the short interest is high. the other story is who is the incremental buyer? every time it's gone through 250, it has failed. >> the market is at a record high? >> massive short move. we know that. institutional investors know that.

when you talk to the core owners. >> hold on. two people talking at once. >> tesla was, tech companies, an able company. that served as a tail wind. right now there are so many levers they can pull. no one is getting in front of this. >> a number of big earnings reports next week. i'm melissa lee. you're watching "fast money." first in business worldwide. in the meantime, here's what is coming up. >> here's what's happening to retail stocks of late. but there is an underlying reason the start buying now. plus, one group of stocks is suddenly looking a little vulnerable. and here's a little hint. and we'll tell you how they'll profit when "fast money" returns.

the dow 20 k for the first time. will it hold?

>> they've been saying now is the time to put up or shut up for the markets. >> 13 out of 15 that i would buy. >> donald trump tweeted out this morning, great. dow 20,000. can trump keep it going? retail stocks getting crushed on worries of a border tax. check out some of the dividends in some of these names. macy's and nordstrom have 5% dividend yield. is it time to guy dip in some of these high paying dividend retail stocks? >> i do believe it is the time

to buy these stocks. first they are trade specific retail. who wants to be in a mall some people want to shop online. that's why you saw the results for amazon so stellar. when you see at moving out of the christmas season, it picks up again and border tax is the reason a hot of these spooked. that will not be voted on and decide for a while. and to be implemented, another headache on top of it. so i think time to buy. macy's communicated 550 in cost savings. it is a 5% dividends. trading roughly 11 times. to me, i think the times to buy have bought these stocks is when sentiment has been so horrendous. i'm getting e-mails from the street. retailers are trying to final

out how bad sentiment is. it is really bad. if you figure out where they were after the last round earnings, i believe after second quarter, things are so bad that they won't to rally 7%. >> you saw nordstrom's what it did into the winter. here's a stock from 45 to 60. and we did a good job by cautioning people to pull the rip cord on that right back to 45. now they get to plefls are interesting. it is significantly higher than now. they reported in the middle of february. i don't think you have to go out on monday to do this but the chance for a short recovery is substantial. >> i think it is an assault to everybody that voted for trump. so i think you can pick up a name like jwn and get a nice dividend yield as well. >> tomorrow marks the beginning of the chinese lunar new year. in honor of the annual

celebration, we get to the stocks sure to bring your portfolio good fortune. let's go around the horn. >> so staying in that part of the world, alibaba. the ad sales are much better. the margins are getting better. things like ali pay. and it is growing through mobile which is what everybody expects. the stock is not expensive. >> the other side of jack dorsey. he has a number of higher priced markets. mobile payments are attractive but they have a targeted helpeding solution and that's why i purchased the stock. i do believe it has some up side. >> let's play some ubiquitous chinese music. >> so mine is a trade. under armor. i think you can make some money here. for a trade of 22% short interest in the name. the bear case is well known.

they have meet number. for a short trade, buy under armour. reporting a couple weeks. just upgraded. up there, dividend west never talked about it and probably should. >> i'll see you back here at 5:00 monday. only at&t offers you all your live channels and dvr on your devices, data-free. it's entertainment. your way.

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it was a busy week for the markets. the guys back there will make sense of it all while they're getting ready. >> out of gas. >> that's what the charts are saying about one hot sector. we'll tell what you it is and how you can cash in. plus -- >> do you know what's cool? >> buying facebook for just $3. we'll show you how to do it using options. and a groom of stocks can be in danger of selling