Skip to main content

tv   Fast Money  CNBC  January 5, 2018 5:00pm-5:31pm EST

5:00 pm
pension, it will be less than the legacy system, but they'll have the opportunity for the pension if they indeed stay for 20 years >> great stuff, that you arnk y sharon, good to see you. have a good weekend. kelly is here on monday, presumably that does it for "closing bell." thanks for joining us. have a great weekend "fast money" begins right now, which is what melissa is about to say >> right, bill, "fast money" starts right now live from the nasdaq market site overlooking new york city's times square i'm melissa lee. tonight on "fast," forget about bitcoin. its biggest rivals are surging to new highs this week, including ripple if you're not sure what the heck ripple even is, don't worry. we've got a deep dive and bk will show you how to buy it. plus netflix is heading to the red carpet with the most golden globe nominations ever for its hit shows. we've got the details. and later, the big banks
5:01 pm
with a tepid start to the year the chart master sees something in the charts that could spell big trouble ahead. we'll tell you how to profit first, the dow surging more than 200 points, well past 25,000, closing at an all-time high dowdupont is one of the highest stocks this week material stocks are the second best sector in the new year, adding to a strong end to 2017, a sign that the global rally is really catching fire, as commodities are rising and the dollar is calling. one could call it a material world. freeport, 41%, mosaic up 13% is this the beginning of the global reflation trade if it is, what's the best way to play this move tim, you've been all over this >> this is an extension of the global trade again, this really started in march of 2016. you kind of had a double bottom for a lot of these assets.
5:02 pm
some of them back in december, after we got through the elections and people were questioning, you certainly got it for emerging markets. the places you can still play, there's little bit of back to the future, we're getting old madonna tunes, why not some huey lewis? these companies are run a little different, a lot of people are getting overweight brazil again. in the case of petrobras, this is a slightly different company than the one you invested in coke and coal prices are a major component to steel steel prices are rising for i think both the right reasons and because of the political kind of anxiety that's going on. we're definitely pushing back on china who has been sending steel to vietnam, getting it retagged, and sending it over here that's not happening we're also seeing china shopping around the world for a higher grade steel to show that there really is demand and they're not good enough. ag has lagged, i'm long all of those names other than new core, and i still own u.s. steel >> guy >> i thought that was cyndi
5:03 pm
lauper no, i knew it was madonna. since this is an '80s theme, tim is rocking a 1988 vest >> got to get back in time >> no sinking. -- singing. >> the power pitch -- >> fast pitch. >> that too. the stock was trading in the high teens you'll say maybe it's run out of gas. >> it's extra chilly on the east coast. i hope a sweater vest puts a little warmth in your living room >> say what you want about president trump. one thing, you know, he talked about the steel industry, they brought wilbur ross in there was a three-month lag. these stocks have been off to the races since mr. ross has got in there is an up sight to u.s. steel, big short interest in the name wouldn't be surprised if it traded to and took out the highs of 214 david is here, i'm not asking you to comment on this, but
5:04 pm
cowan upgraded this from underperform to market perform it's just a matter of time >> the guy has a memory like a steel trap you're right i say stick with the steel names, they continue to work stld i prefer over letter s. steel dynamics is the name a very crowded trade this has been the darling of the space. these names tend to overshoot, you know, on positive sort of momentum, and undershoot on negative momentum. there could be another 25 to 30% move higher. i think you stay with the steel names. >> that's a lot of runway. >> china is going after this environmental. >> that seems pretty aggressive, 25 to 30% more >> i don't think you take your foot off the accelerator on steel names at all until the narrative changes. >> i don't know if it gets 25 or 30%. i would prefer it to tim's hot hand, so hot he had to rip his sleeves off. >> can we show that fireplace again? people are cold in america right
5:05 pm
now. >> you can't be that hot and have sleeves >> you're right. i think you buy commodities when they're running. this is partly david's point the thing that's interesting here is at the highs, people are very, very chilly and warming by the fire but also, you know, it's amazing how people have been able to change their views because of price action and i know that it's not because of price action. but it's very clear we're seeing upgrades by analysts that were downgrading at the lows. i think you need to be careful you need to trade some of these things aggressively. >> aggressively meaning on a run? >> for example, i traded out of cliffs today, clf, which is a position i've been trading back and forth. this may be a breakout level and i may be, you know, very frustrated that i traded out of it, although i've been trading it between 650 and 775 we cleared through that and i think you fade a little bit, i think i get it back. >> the reflation trailed, that reflects what's going on globally here, right >> yes >> there's more going on in emerging markets >> we have the potential for
5:06 pm
infrastructure spending coming in this country. so you can even broaden that out and look at what's happening with john deere or look at what's happening with cat tractor. those are other ways to play this and i think those names still have room to run >> the pollution control constraints, to rein it in a little bit, the higher quality steel which tim talked about them going after, the pricing has increased dramatically look at l&g, if coal starts to degrade, l&g could be the play to look at here because gas is what they'll use to, you know, to heat. >> i have a question here at this point in the conversation we've been -- not "we," there's been a great focus on the run technology has had in the new year, up 4% or so on the nasdaq. right here, technology, technology or materials? >> you're playing would you rather but you masked it in an "i've got a question." >> i've got a question
5:07 pm
would you rather >> materials or technology in that broad scope, materials would be my answer, melissa lee. >> really? >> technology is a very wide swath. >> that's true >> there are troublingstories as well as good stories. >> embedded in that answer, is it a belief there will be somewhat of a rotation out of technology, or even a trimming of position, just because that position may have gotten so big in one's portfolio >> i think that analysts, to tim's point, i think that analysts are behind the curve in terms of materials they'll have to catch up i think in tech they're already on the curve >> but also, remember, if you are getting global reflation, which this trade is, then rates are going higher, which could hurt some of the high p/e stocks which tech would be. >> i have a question for you >> we're both wearing vests today. i believe we have a special thing going on >> question for you, materials or emerging markets? >> in many cases you have difficulty extracting the two.
5:08 pm
i would probably say emerging markets. you'll get an opportunity to trade some of this stuff there's a good part of my position, in fact i sold emm today at 83 rsi at the top end of a channel, a channel on emm that goes all the way back to where we built this rally, december 22nd of 2016. you've been able to trade that lane em banks are one of the most interesting places to be here. >> let's talk about our day now, what did you do? >> sticking with eem, for the very short period, if you have materials, i would prefer to own eem longer term. for the next two quarters, materials, for the near term, the next several weeks, you stick with the materials i added to eem >> i was waiting for the answer to my question what did you do today? >> my final trade last night was ewz, i put my money where my mouth is that goes into your emerging markets, your materials trade in a sense. i actually think i like these a little bit better than i do the materials, only because they've
5:09 pm
been somewhat beaten down, relative to the materials. so i think there's a better opportunity with like brazil or the emerging market type of thing. >> continue to beat the drum quickly. look at the move in boeing today. it's a $300 stock, that's not as big as it used to be to the materials, i think you still have the industrials working for you as well. >> outside of what you do with cliffs >> i've been slowly adding to mosaic, slowly adding to bhp, rio tinto, diversified miners. brian brought up brazil. they've changed their colors a little bit over there. coming up, it's the ripple effect one of the largest cryptocurrencies out there is surging this week. what is it, how do you buy it? brian kelly will break it all down, next plus it's the olympics of health care, the largest
5:10 pm
conference of the year kicks off on monday. we'll tell what you the three largest stocks going into it netflix goes hollywood at the golden globes, a record nine nominations. could a big win send the stock soaring? much more photosynthes"fast mont after the break. even made custom doughnut cutters. wow! all with points. that's how i created the ripple. the doughnut, in a doughnut, in a doughnut. suddenly, it's everywhere. i mean, it really took off. what will you create with your points? chase for business. make more of what's yours. they cahow many of 'em?e, sir! we don't know. dozens. all right! let's teach these freaks some manners! good luck out there, captain! thanks! but i don't need luck, i have skills...
5:11 pm
i don't have my keys. (on intercom) all hands. we are looking for the captain's keys again. they are on a silver carabiner. oh, this is bad. as long as people misplace their keys, you can count on geico saving folks money. fifteen minutes could save you fifteen percent or more on car insurance. show of hands. let's get started. who wants customizable options chains? ones that make it fast and easy to analyze and take action? how about some of the lowest options fees? are you raising your hand? good then it's time for power e*trade the platform, price and service that gives you the edge you need. alright one quick game of rock, paper, scissors. 1, 2, 3, go. e*trade. the original place to invest online.
5:12 pm
we know life can be hectic. that's why, at xfinity, we've been working hard to simplify your experiences with us. now, with instant text and email updates, you'll always be up to date. you can easily add premium channels, so you don't miss your favorite show. and with just a single word, find all the answers you're looking for - because getting what you need should be simple, fast, and easy. download the xfinity my account app or go online today.
5:13 pm
welcome back to "fast money. the crypto craze continues as some of bitcoin's rivals like ripple and ethereum are surging and gaining on the crypto king you might call it the ripple effect ♪ that is right. ta-da, we've now got the ripple bug, you can track the price in the left hand corner of your tv screen but wait what is ripple cnbc's seema mody joins us now to explain >> reporter: hi, melissa ripple has literally been ripping higher, up 40,000% in the last 12 months, ranking second to bitcoin in terms of market cap among the cryptos at $117 billion, ripple has a larger market cap than 43 companies on the s&p 500, big names like goldman sachs, nike,
5:14 pm
netflix, and uber. ripple is building a payments platform for major banks it's already got a consortium of banks in japan testing out its network. other users include bank of america and a bank in spain. earlier today the company tweeted out three of the top five global money transfer companies plan to use xrp, ripple's product, in payment flows in 2018. michael morrow, ceo of genesis global trading, is telling me he's seen a lot of interest this week from institutional investors, close to $100 million in three days in ripple volume, although most of the demand has been driven by south korea, which makes up about 30% of ripple's transactional volume. while ripple has been benefitted from the hype and overall interest surrounding bitcoin, there are some differences unlike bitcoin, which is open source and supported by a global community, ripple lives on a centralized network and is managed by a team in california that is led by a former yahoo! exclusive named brad garlinghouse bitcoin's price is around
5:15 pm
$16,000, ripple just below $3. back to you, melissa >> thank you very much, seema mody is ripple the next big breakout coin if so, how do you even buy it? our very own crypto baller bk is here to tell you exactly how to do just that bk >> yeah, sure. ripple has been on an absolute tear just to add to what seema talked about, what ripple really is going after is the swift network or international payment transfers. what you're talking about here is an upgrade of the international financial system that's a very big market that's why people are excited about it let's figure out how do we buy this here. i'm on the website, you can see over on this side, here is all the trades that are going on remember, cryptocurrencies trade 24/7, this market never sleeps so we have ripple, you can see these big moves. now let's scroll down to the order page, okay so you can see, i can buy ripple, i can sell ripple. here is all my buy orders right down here, here is all my sell
5:16 pm
orders they're a little bit backwards for you old school market folks, it's going to drive you crazy like it drives bk, but it doesn't matter i've got some btc, i need bitcoin to buy ripple. as i click on the price that i want to buy, i want to buy it right there, it fills it in. it looks like i'll buy about three btc worth of ripple. hit the buy button boom lookit i bought all that ripple, that's how easy and fast it is. if you notice before, i didn't have any ripple there. now i do now i have about 24,000 ripple it's that easy, it's that simple to get into this for me, ripple is one of those core protocols that will likely be a big part of the crypto economy. >> i have a question.
5:17 pm
people are more familiar with coin ba coinbase and how that works. you have to do the transaction first, transfer it into bitcoin, and then buy ripple? >> that's right. on the website, you go to coinbase first, buy your bitcoin, you'll have your wallet, once you've opened that account up, you'll get a bitcoin address. you send your bitcoin there. once you have bitcoin, you can buy anything and as i scrolled up, look at how many currencies are out there. those are all the top ones they're trading real volume. that's 31,000 bitcoin, that's a lot of money that's trading in ripple today >> bk, it's tim. do you think there's an opportunity to arb between these exchanges? let's be clear about crypto traders, they love trading, they love some of the inefficiencies of these markets for this very reason is that a possibility? >> it is a possibility it's a little clunky, though part of the reason why some of this arbitrage exists is because
5:18 pm
there are different regulatory environments for example, if you're in south korea, it's almost impossible to get money out of south korea because of the capital controls. sometimes you'll see that global cross border arb open up it's difficult to do within exchange or within the u.s. exchanges, let's say you're going coinbase, sometimes there is a chance to do that but you also have to recognize, it also takes a bit to move these things around. sometimes the exchanges can take an hour or longer to move between. >> are you talking arb within ripple or arb like cross -- >> i'm talking about having three exchanges open at once, transacting in one and selling in the other because you've effectively locked in a price. you can see price discrepancies. you do see this, especially because at settlement times you have an opportunity to work within that as well. >> the best way to do it is to have bitcoin and let's say ripple, at each one of those exchanges. that way you don't have to worry about changing between and you just play that arb all day long.
5:19 pm
>> can you explain to us home gamers, why are they linking themselves to bitcoin, why not u.s. dollars >> because to use u.s. dollars you have to have a money service license and go to 50 different banking regulators in the u.s. if you want to take u.s. dollars. in this case polonius chose not to do that >> bk, the bigger issue here, the big bear case on ripple has always been it's not like other coins, it's not created or mi mined, essentially there's $100 billion they started with, $30 billion in circulation. it's company-controlled, they can put more coins into the marketplace which would create dilution is that a big concern? >> it has been a big concern, you're right ripple is somewhat controversial in the decentralized world because ripple is a centralized
5:20 pm
currency it was pre-mined 100% by the ripple company what they've done to alleviate a lot of those fears is they've locked up a lot of the ripple they own and will slowly meter it out over the next several years. that has alleviated some of the concern. that being said, purest decentralized coin people don't necessarily like what ripple has done i happen to like the fact that they have several banks using it and they have a company that is out there trying to make the value of the currency go higher. >> last quick question we saw the run in ripple on the notion that it would be added to coinbase and coinbase put out the blog saying no, it's not going to be added. it fell today. what's your guess on whether it will be added and what's the next currency that will be added to coinbase? >> i think it's going to be a wild six months plus >> thanks, answered a lot of questions tonight. >> very interesting. ahead, big banks moving lower today despite the record rally. the chart master sees something in the charts that could mean
5:21 pm
big trouble ahead. i'm melissa lee. you're watching cnbc, first in business worldwide in the meantime, here's what else is coming up on "fast." one bitcoin stock in particular, we'll give you the name and tell you how to profit. plus -- >> you like me, right now! >> "fast" is going hollywood in search of golden globe glory and the one stock that might get a boost from this weekend's awards a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley
5:22 pm
but prevagen helps your brain with an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember. trust #1 doctor recommended dulcolax. use dulcolax tablets for gentle dependable relief. suppositories for relief in minutes. and dulcoease for comfortable relief of hard stools. dulcolax. designed for dependable relief. (barry murrey) when you have a really traumatic injury,g) we have a short amount of time to get our patient to the hospital with good results. we call that the golden hour. evaluating patients remotely is where i think we have a potential to make a difference. (barry murrey) we would save a lot of lives if we could bring the doctor to the patient. verizon is racing to build the first
5:23 pm
and most powerful 5g network that will enable things like precision robotic surgery from thousands of miles away. as we get faster wireless connections, it'll be possible to be able to operate on a patient in a way that was just not possible before. when i move my hand, the robot on the other side will mimic the movement, with almost no delay. who knew a scalpel could work thousands of miles away? ♪ welcome back to "fast money. streaming giants are going head to head with traditional studios for award season dominance julia boorstin is in los angeles
5:24 pm
with more. hi, julia. >> reporter: hi, melissa hbo dominates the tv category at the globes but this year netflix is making gains as its $6 billion investment in content pays off it has 12 nominations including two each for "mud bound" and two each for "master of none." netflix's nine tv nominations put it second only to hbo which maintains its lead with 12, including six for "big little lies." but netflix is ramping up its content spending to $8 billion this year with the goal of hitting 50% original content by the end of 2018. and netflix is investing more in premium content. the stock gaining about 2% today after netflix announced david letterman's new series, called
5:25 pm
"my guest needs no introduction," announcing president barack obama as well as jay-z and george clooney among other big name guests. the company also announces filmmaker matt reeves of two "planet of the apes" movies, will be directing a new series for them awards, acclaim, certainly can help draw attention to shows and even potentially some new subscribers for netflix, melissa. >> thank you, julia boorstin in los angeles. what do you think for netflix? >> i'm very bullish on netflix, i have been bullish on netflix i will say -- my tune isn't changing, but it's much more difficult to find the incremental buyer in the stock on the institutional side.
5:26 pm
seeing new institutional money roll into -- >> that sounds bullish, it doesn't sound like a change of tune >> if you look at the holiday season, what's been selling, row could y roku sales suggest q4 will be solid. but when you look at earnings projections out to 2019, 2020, there's a concern about the hockey stick effect. there will be more spend, earnings will be impacted. in honor of the big golden globe night in hollywood, our traders have picked four names that they say are award winning stocks tim with the vest, kick it off >> uh, yeah. lionsgate is upselling the tv side of their business, i think it's an undervalued stock. it's a volatile stock. >> go back to the fire >> mine is baba.
5:27 pm
chinese commercie growth is off the charts >> circle gets the square. i like sq. >> big one coming up, mel. >> see you back here monday at 5:00 don't go anywhere, "oa" starts after the break. trust #1 doctor recommended dulcolax. use dulcolax tablets for gentle dependable relief. suppositories for relief in minutes. and dulcoease for comfortable relief of hard stools. dulcolax. designed for dependable relief. you or joints. something for your heart... but do you take something for your brain. with an ingredient originally found in jellyfish, prevagen is the number one selling brain-health supplement in drug stores nationwide.
5:28 pm
prevagen. the name to remember. ♪
5:29 pm
5:30 pm
we're live at the nasdaq market site. look who decided to stick around for the good old "oa," brian kelly himself. he even put on his fancy jacket. here's what's coming up in the show ♪ back in the saddle again >> that's what some traders are saying about bitcoin, which is surging again. and options traders see even bigger gains for some crypto related stocks we'll tell you how to profit plus -- talk about a bank job. >> this is a robbery >> financials have surge

114 Views

info Stream Only

Uploaded by TV Archive on