suggests stocks are moderately volume wrapping up the last couple seconds departing thoughts on the markets. >> i'm off tomorrow. no i don't have -- i'm kidding look, nevds trading, defending the bottom end of the trading raenl. i think that continues for a while. >> i shoep you enjoy the three-day weekend. >> thank you. >> that does it for "closing bell." we have "fast money" beginning right now. "fast money" starts right now. live from nasdaq market site overlooking times square i'm melissa lee. trade remembers steve grass an pop karen finerman dan nathan guy adami. a top strategist says stocks are cheap and the best chance to buy. he is here to explain. general electric soaring after jp morgan says the worst is over for the industrial giant but is the turn around in the cards? the traders weigh in first we start off with the bank inferno heating up the financials under pressure again today. the sector heating a fresh 2018 low. and it's been a rough week month and year for the group

down now more than 19% from the 52 week high in january as it inches to bear market. how much worse can it get for the banks? what does it mean for broader markets. >> great to have you back, mel. >> thank you. >> listen in the spring, summer, i tried to make a bullish case for banks on valuation, price to book at a certain point maybe you spay ner cheap but maybe wrong to defend them i would say early fall i started to say maybe things aren't as rosy for banks this is what you have to ask citi bank reported in the middle of october tangible book give or take was $62 stock is trading $56 today goldman sachs, same type of thing. 186 tangible book. trading 175. if the environment is so rosy for banks why are two of the biggest trading south of tangible book? that's a problem i thought for a while that deutsche bank is this generation's sort of bear stearns lehman wrapped up in

one. if it was u.s. we talk it every day. but that it's not we talk about it a couple times a we can now is the citi bank exposure to europe the reason it's trading below tangible book? is it systemic my sense it deutsche bank makes it to our shores but the stocks are pricing something in. >> is this the price action where you look at how they trade and think of why they are prayed trading that way if you look on the surface, things theoretically should be okay for the banks. >> should he they be yield curve inverting growth slowing deregulation is over. >> deregulation. >> you it's over that story is over so if you believe that we're. >> banks were high back in january they didn't have a fighting chance since then. >> if you belief we go back to 30 to 1 leverage we are not. deregulation is over xlf has made up all the ground to precrisis levels. it's not going higher. banks are not going higher it's over. >> karen >> well with be.

>> you may be the only defender. >> i am a defender of the banks. long the banks and you know, the banks to me have praised in a lot of the things you are talking about plus more. i think they have priced in already a slowing economy. i think nef prthey have priced maybe regulation coming the other way. particularly in citi there is some deutsche bank or beyond deutsche bank sort of credit question. but to me i think that all of the bad news is in them already. it's a terrible tape i understand that. but to me it comes down to valuation. that's what i look at first. look at pe jp morgan for example, the premiere jp morgan to me is trading cheap to the market which banks always do but also very, very cheap to itself that's really important, right they still make money. all right. the companies still make money that's why i want to own them. i think they continue to make money. the economy is not falling off a cliff. they will continue to make money. the last thing i like, dan hates

them right. so dan has been right given that guy too also been right. you're obviously not positive on the banks. >> but the xlf from the election -- the xlf up 90% now up 50% when you say they priced in bad news they are still pricing in a little bit more rosiness we have got now divided government so the that's where you started off saying there might be a little bit of regulation going the opposite way i don't see growth going the right way. you have the inversion. >> okay. >> 3s, 5s maybe 2s 10s. >> you say there is no price at which you would own banks. >> no they're still up 50% since the election a lot of stuff. >> what -- forget that. >> i can't. >> i just look at them where they are now, what are they earning. >> what is the decision right now? >> the decision right now is you still -- you still -- if you look at -- there is a definite double top, guy you like the double top are, right. xlf back to '07 and back to now

there is a distinct double top around the $po range sticks out like a sore thumb look at that. >> you have citi bank in the xlf in '07 which is one tenth. >> forget that do you think we can go back to prefinancial crisis levels in the financials were things rosier prefinancial crisis levels than they are now >> the prices were different where traded were the different in terms of the multiples. >> were you able to -- right there we were pricing in nothing but rosy skies. >> pricing nothing -- rosy skies with a leveraged balance sheet. >> levered. >> right. >> exactly that's my point. >> let me finish with a downside. >> okay. >> so right, so if you had that kind of downside that they have then you would have had to have more upside. >> right. >> this is a very different risk/reward scenario very different. >> perfect example you see that leverage and you say they had a tremendous downside i see the leverage and say that's the only reason why they

were making the profits they were making and that leverage is never coming back. 30 to 1 is not coming back. >> i'm not arguing for 30 to 1 i don't think they should have that leverage. >> without 30 to 1 you never see the profitability come back to banks. that's why they're a sell. >> that's not what you are saying. >> that's not what i'm saying. i'm not saying -- they also wouldn't trade at the multiples they traded at then. >> what i'm saying the noer scenario that made member buys and growth stocks has now -- is now off the chart and now they're utility stocks. >> you don't like -- you don't like them. ever >> dan nathan is here. >> i feel like you should -- because you're cited as a bullet point on karen's -- the fact you don't like them. >> i felt a lot of the negative points that you guys have all made the last seven minutes you didn't want to include me in, you know, that's kind of been my bearish view for this year but i actually want to take apart that third leg of your bullet here. you know, you can.

>> dan hates them. >> yeah, you can back in 2015 and 2016 appear you can look at the environment where there was a lot of similar things going op chinese equities were in free fall crude oil in free fall small caps in free fall. interest rates were going down then all the way town to below 2%, the 10-year that sort of thing there was uncertainty going on a lot of weak price action and the dollar was kind of rising then too. so think back to period. citi bank, bank america, wells fargo, goldman sachs, morgan stanley all down 30, 40% all the stocks x out jp morgan are down between 25% and 35% now you can make the argument we have seen the price action before in the recent past. and maybe they are getting to where they are so hated -- bulls are throwing in the towel a little bit we could be getting to a point heading to the new year where people make a stronger valuation case and where we see a period

with less volatility with the other risk assets around the globe. >> are you way li saying there could be a period that is favorable. >> i'm trying to be contrarian you couldn't have been as berric in the lows at 16 about the bank stocks and they were ready to go up 50 within 70% over the 18-month period. >> why were they ready to go up in '16 they were ready to go up because of deregulation. >> they bottomed well before that at the bottomed in q 192016 i want to make a point i understand what happened since late 2016 why that happened. but at some point in early 2018 investors started discounting all the bull cases, even that dan hates them, and at some point we could be getting ready especially as the calendar turns when investors think about what are some most hated, cheap and potential catalysts they're contrarian that is obviously this group. >> you asked an interesting question are we looking for reasons i am because i don't know why. >> because it doesn't make sense. so people make the comparison to the financial crisis when

actually the bank balance sheets are different. the systemic risk is much different. >> i agree i don't know the reasons i know the stocks have not performed well i could say that goldman sachs is goldman sachs specific. probably is. i could say it isty is citi specific due to european exposure but why is wells fargo making 52-week lows appear morgan stanley. 52-week lows >> but somebody like keith parker a guy like him would know. >> you think so? oh he is here. the financial fallout one piece of why this market can't rally our next guest keith parker says the stocks are cheap and if history is an indication now could be the time to buy keith is the head of u.s. equity strategy at ubs great to have you with us. >> thank you for having me. >> why do you think the financials are trading poorly and are you bullish on the financials >> we've been neutral so we had the valuation support but in terms of drivers of fundamentals we saw expectations for marjing

too high slowing top line growth and risk around interest rates we have a significant flattening of the yield curves. 5s and 2s get to a level worrying for the banks i think what's discounted now trading at a 40% discount where we were in sue and '6 a lot is priced in. you need that positive catalyst and some expectations of profit fwroe growth and i think the real bull case i think banks are asked to act like utilities they don't pay out like that and if you don't have the big r.o.e. like last cycle you need to deliver on the dividend a and payment on investment. you need to get patient to get to that point. >> you sound like almost in the camp where you look at price action and you think, things should be okay for the financials, valuation should be okay they look like they priced in a lot. are you also grappling with that sort of scratching your head saying why is this group close

to bear market territory at this point. >> i think you could say that for banks. you could say that for industrials, semi conductors it's across the board a big derating and cyclicals stand out. we did some work history karri where we get it wrong the multiple earnings are up over 20% this year and the market is down. we have had a bear market in the multiple what's interesting, if you look back historically we want to ask ourselves what happens next year does the market get it right what was interesting is that median returns and average returns in the year following -- are actually 16% well above historic averages. and only two years of negative returns. >> why are you saying to buy the market right now if 2018 wasn't a great year for stock investors or basically any asset class investor did not do well, right? i mean across the board. and it seemed like everything -- you had every tail edwin going for the markets. why should 2009 be different. >> the d rating in equity

markets and assets in general is first interest rates rose. and we see a pullback in the rise in interest rates and we'll get another indication from the fed and chair powell next week. and so lower interest rates should support asset prices, all else equal the slowing growth and worrying about growth and the cycle particularly outside of the u.s. has been a big headwind. and again i think we see how it goes but u.s. fiscal and holiday shopping here should help the rest of the world. pan lastly trade we have now between now and march with a number of political nuances in between to potentially provides out that trade risk. >> do you worry that window in 2019, if there is some sort of resolution as it relates to trade is so short because we get back to the uncertainty, get back to a political environment here where i think corporate -- you know corporates are going to be kind of, you know, a little cautious here and then the last point you made about the u.s. consumer here in the q 4, it

seems the whole global economy is resting on the u.s. consumer shoermd right now. and that seems a dangerous place to be. >> i think resting on the consumer's shoulder, is it -- are they delivering? signs are they are do they have the potential to deliver more in the first quarter based upon lower oil prices and what we have done on tax refunds could see incremental 1% boost as a percentage of income and then on the point on trade, what we would say, is it short-lived, i think port part of it is pricing out first the deescalation but china's done something they stimulated the economy since june to fend off the potential impact of tariffs. ant u.s. also has fiscal stimulus playing through in 2019 we wouldn't expect that to be as short lived if there is the follow-through and growth doesn't come in as bad as feared. >> have you published the outlook for 2019. >> we did, published it november 13th when the market was plus and minus 2%

so it's tough. >> and the year-end 2019 target is. >> we are at 3,200 10% plus return from where we think we can end the year. but obviously trade, growth and interest rates are the key >> okay. thank you, keith good to see you. keith barker of the ubs. it's a tresh rouse time to be a u.s. equities strategist. >> yes. >> having to put out forecasts, right. >> but who better nan a guy like keith parker i was going to ask him -- we goodbyed the guest. >> i clearly said goodbye. >> so i'm not bringing him back? >> thank you. >> with we might see 3,200 where do we go first i think steve submits we re-test the lows 25, 30. i think a reasonably chance. pete najarian said last night and i agree. volatility is too cheap in the environment. and dan would agree. this is not political comment but i don't think this is pricing in something out of the mueller investigation. not political. but it's definitely hanging out fl. >> do you think we test february lows by the end of the year?

>> yes i would like to see them tested the only pr problem you have with testing by the end of the year. >> three weeks for 100 points on the s&p. >> any buys off off shut downs with goodbyes. you want to buy that the problem i have with test something not the time frame it's just that people take off a lot of time around the holidays. so no one ever pushes down a dull market. so people are not at the desk. you don't get liquidity, the opportunity for selloff. but i would like to see them test it prior to the end of the year. >> coming up, there are just 12 days wsh 12 days until christmas. where is the santa rally for retail the stocks getting crushed today. but a top technician says don't stop believing plus general electric surging bab after jp morgan says the worst is over for the industrial giant. can you trust the bounce check out starbucks, a hit after hours. lowering the guidance moments ago. we bring you the details live from times sqreua

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♪ there's no place likargh!e ♪ i'm trying... ♪ yippiekiyay. ♪ mom. ♪ welcome back to "fast money. general electric is lighting up having the best day in a month following an upgrade from the ge bearing, jp morgan lifting the

rating from underweight to neutral. still maintaining the $6 price target adding that the stock is near a bottom it did hit a financial crisis low, 6.66. happening on tuesday before bouncing off the level with shares of g.e. down 59% this year is it finally bottoming out. >> i don't think you could say it's finally bottoming out until it bottomed out and has conviction it's bottomed out but the s&p bottomed out 6.66 as well that sign, it's a terrible number, a negative number. and i think in analyst was just didn't want to go to the well one too many times he had a great call on the stock. and this is not an overwhelmingly bullish call on it but maybe the worst is coming to an end, not over yet. >> i think that is sort of his point. he said that there are known unknowns at this point that the market is pricing in a lot i think sentiment has really driven the stock as well the idea that a material -- a capital raise is overhanging the stock.

he says it probably still is but bryced at this point. >> well it's a good call by him. >> yes. >> sort of looking at his how do i manage this good call, you know, you can't fault someone going to neutral even if it goes lower. i wonder if cheers broke out on the floor of g.e. when somebody went to neutral. looking at this stock it's sort of do you think that sentiment is maybe changed that could be enough to really move it? i don't know that the fundamentals have changed enough for me to get onboard. i had leaps of 19 that it goes to zero -- 20, january 20 that it will probably go to zero. the risk/reward has changed but a lot of downside. >> jim cramer said it's the best analyst job he mass ever seen. probably a lot of truth to that. still a $6 price target which if my math is correct about 20% from where we closed today. >> the and bear market scenario is $5 he said. >> and the bear market scenario is $5. >> yes. >> and the problems general

electric had two days ago still exist today. i think the move you saw today makes sense for different reasons. but i think it was people that have been short the name just covering up because why not, if the analyst is going neutral why -- but i think there is a good chance when they report january 18th that the seven handle you enjoy today is a low 6 handle. >> whoa. i think it's one of the names where there is so much debt here and it's like -- such a deep end of the pool sort of stuff that keeps selling off things giving away the groups keep rotating management new restructuring plans. it's better ways to i think put money to work in the market right now. if you are the sort of person that said i like a 3, 4% position in something going up 100% if i get a lot right the next year or two do that you know where you are stopped at $7. it's not going to zero either. buts in going to be a long slide. i will tell you this, though this is a stock you could look up and february 7th next year and could be at $9.50.

and easily and no one is wrong or right or anything that's the way the stories go. >> still ahead, retail a in turmoil ahead the holiday stretch as the group continues to get slammed but a top technician says now is the time for bargain hunting he tells us the best names. plus casinos are crapping out. the stocks under pressure even the short seller jim chen o is telling us what's behind the big bet. much more "fast money" right after this

welcome back to "fast money. the retail wreck rages on. the etf tracking the group, xrt

falling 3% now if bear territory. bob pisani with the details. >> hello, melissa. another ugly day for retailers we did this tuesday. big brands like jcpenney kohl's macy down 3% kostka of down after hours tailor brands owning men's warehouse reported weaker sales appear lowered full-ier guidance down 30% at one point. children place best buy, tiffany, jewelers, auto sellers like auto nation, penscy automotive. group one automotive near 52-weeklies preponderate retail, the xrt, a basket of retail stocks in the s&p 500 also at 52-week low. that's also among the most shorted etfs on the street what's the problem well amazon is an issue. but retailers rose in the summer on signs that the retailers were

getting better at playing the online game. online sales are indeed growing faster for all the companies and the companies though need to invest in both stores and in online that's a problem it's expensive and increasingly hurting margins. that's probably the biggest issue. then the macroissues, the concern is that this may be as good as it gets with comp store sales which improved this year and even broader concerns we could be in the later stages of the upswing in consumer spending you add in high labor costs we are seeing additional transportation costs. and it means not a lot of earning growth with a corresponding drop in margins. real tough situation back to you, melissa. >> sure is bob, thank you so are any of the names worth buying on the dip? what's behind the decline we have seen in karen what do you think. >> tailor brands has put that aside process but oxford i don't put aside. that is a real read through to

macy's qb kohl's whatever. disappointing. macy's has been getting attacked the balance sheet, think how improveds it the last couple years and insiding the debt buyback. this multiple of i don't know, eight seems really overdone to me not we can't go lower. it could but i mean of that sort of today's du jour disasters. i think macy's which i do own i would be a buyer of macy's. >> it's all a disaster i think bob surrounded the trade. he gave you everything the rally over the last year before any topped out about six months ago had to be getting houses in order. made the investments in omni channel and seeing growth. here is the thing less than 10% of u.s. retail sales are ecommerce. amazon is getting 50% of all the growth no matter the investment, target, macy's all these guys they are continuing to do it and we continue to see weak margins. >> doesn't mean they are buys. >> they could be. >> i'm just -- only on a 10%

it's shocking to me when you hear i always think it's more than that. >> one point the biggest e the commerce player got a government subsidy to open headquarters on the east coast. all the guys spending all the money. hurting the margins they have to compete with a government subsidized amazon.com. >> just canary in the coal mine. they are signaling as you said at the top there is something wrong with the economy. >> for more on the retail wreck let's go off the charts. the todd gordon of trading analysis.com hey, todd. >> let's look at the xrt you talked about double tops i have a good one in the xrt at 52 here we put in a big nasty double top and backing away back from 2015. so i like the story about that you get the point. how significant is this double tip and will we continue lower this is the weekly chart

then let's drill down and get more granular on the daily here is the xrt on the daily what you see is we have lows right at about the $43 mark. this is one of the retracement levels we are trying to hold. i don't think we will. we loobl we head lower one more level at 40.50. i'll save you the gory details if you don't hold 40.50 we go lower. xrt, xps, maybe if we go back the ratio is in the decline. basically that means the xrt retail is underperforming the s&p on the downside. that's okay we stay here i say it's weak as a trader. i want to continue to short and step on these weak names, l brands what a disaster of a chart here. 2-day moving average in a clear down trend we tried to hold as resistance we have high pressure looks like we should move down. go to the weekly charts look

back at 2000, 2007, 27.5 was a hunl breakout level. we need to to hold in l brands if you don't talking 18 years of support just lost it looks like if the overall market moves lower and retail l brands could continue kohl's really strong stock this guy put a triple top in i hold this in the portfolio broke the 200 day. come back to re-test resistance i was talking about in the makeup room with karen this guy looks like we should not be long but short. i say stick on the short side of the retail in the very uncertain market. >> how does amazon look. >> not that good either. and we should be recovering. but for me, i'm actually look to set up shorts. i see amazon -- i hate to say it from a technical point of view, beautiful. if a technical point of view i don't want to to say this i'm getting skewered on twitter for saying this. we don't have support until

about $900. >> wait, what. >> i'm not saying it's hpg happening from a technical point of view if we go lower from ha chart point of view that's where support comes in that's saying it's happening but amazon is not performing in the period of tech outperformance it's tech holding us up. but amazon but it doesn't look good for me on the up side i would not be buying >> when a technician like yourself says $900 is support -- like what has to happen for a stock that's 1,600 and change to go to nine hundred. >> it's are scarey i have the same conversation myself on apple. if i take a cold hard objective look at apple we can't get a bounce off 170 we don't have support in apple until 140 granted $30 as a% of 170 is no where near the drop in azmodan but if the market can't get a bid soon there is lower levels to come. i'm in the trying to be a controversial. not trying to scare. but objective and trade what i

see not what i think and technical support doesn't come in for a ways lower s&p 2,400, 2350 that's where you who will the uptrend support that's been in place since the credit crisis low. if you don't hold 2350 i know grasso is looking for a point. >> if we break the february lows on s&p 500 the cenex stop for amazon is 90 and apple 140. >> i'm not saying -- we could find support doesn't mean if we break 16 we goeg below if you don't hold 2350 on s&p fieftd on any pusher that's big trouble. >> todd gordon of trading analysis.com. >> guy adami. >> yes, melissa. i was -- at the top of the show i welcome you back people on twitter you weren't that ee fusive -- yes. >> well there were no balloons or confetti maybe you weren't. >> fair point. >> what do you think of todd's

call. >> i mean, i think you know it's interesting, the retail sector dan nathan talked about the xrt said it's the worst chart he has seen in the career something stuck with me from bob a few minutes before bob gordon mentioning costco. let's talk about it bottas it's been a darling but you now you look and say does valuation matter? now as 27 times forward earnings after this quarter where on the first look looks like they beat on eps but then down a little bit, actually missed, margin lower, membership fees disappointed one has though wonder this was a vital coug in the retail space. you lose costco you got to rethink. at 28 times forward earnings it's not get going done. >> the amazon call is interesting. let's take the 900 out see where it started the year. 1,200 bucks or so. still up 42% on the year what's most important to mary in with the fundamental lock and

the macrolook let's say broke the lows going to 2350 and if it hapz in late january when they point the q 4 results. they gave revenue guidance 5% below consensus if they don't hit that and guide down again it's going back to 1,200 in a weak market. that's how you mary the inputs i don't know what has to happen. a lot of things. but the stock is up 40% on the year. >> when todd talks about support levels and he talks about long-term support levels there is a bunch of support levels but they're short-term. it's 1,400 1325 a lot of speed bumps if we break the lows be with 2532 we go to down in the 23 in the s&p taking the high fliers down with them. >> great haiku. >> precipitously. >> a whole line in that.

>> the ceo sitting down with "mad money" jim cramer talking about how the company is transforming the cloud business. with he bring you the comments idcebucks lower after lowering guan a hot stock, but will it cool off? more "fast money" straight ahead. i still can't believe how incredible the screen is on the new iphone xs. and our unlimited plan really takes things to the next level with your choice of the best in tv, movies, or music. it's the perfect holiday upgrade. i know what i'm asking santa for this year. you still write letters to santa?

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welcome back to "fast money. shares of starbucks under pressure in the after hours session. the company lowering the long-term guidance moments ago

our kate rogers is in new york city at the coffee giants investor day hi, kate. >> that's right, we are in new york city at their investor day. starbucks coming off a strong fourth quarter they did reiterate the full 2019 guidance including opening up 21 net new stores but as you ms. henninged the stock started to fall after the new cfo disclosed the longer term financial targets, consolidated revenue growth of 7% to 9% and jauchted eps of 10% down from prior guidance of 12%. now the company also made a big announcement today in that it's teeming one uber eats for delivery across the country here in the u.s now this comes after start bucks tested delivery in both tokyo and miami with uber eats today they announced the expansion to nearly a quarter of the u.s. company operated stores, beginning in early 2019, starbucks does partner remember with alibaba in china for delivery, with elmay on demand

food delivery. we got to chance to sit down with rosalind brewer on the uber eats announcement. here is what she said about future profitability. >> it's one fortunate things we evaluate because it does cost more to deliver coffee but i will see and tell everyone is that you you know we see an expanded ticket. and that average ticket is really what we need to see happen as we approach delivery we are encouraged but actually monitoring that very carefully. >> i also got a chance to sit down with the company's ceo. kevin johnson earlier in the day. he said right now his focus is on doing what starbucks does best and creating the big strategic partnerships that complement what the company does best from alibaba in china to the nestle global coffee alliance and now uber eats. back to you. >> thank you, kate at the starbucks meeting in new york city guy what do you make

of starbucks and the push to delivery it costs a lot of money to deliver one cup of coffee. >> they took the eps guidance down you have to ask did it stev the 22, 23 multiple? certainly doesn't now. look in june the stock went from 57.5ish down in a straight loan and spent the rest of the summer getting that back earlier a couple months ago the stock went from 57.5 to 65 in a straight line. it does exactly opposite over the summer revert back to the mean. the mean has been around $60 you can do the math and that multiple makes sense but at currently levels it it doesn't. >> fills the gab are gap for the downside but you look at other side, duncan brands that looks more stable on the charts only up 10% year to date while starbucks is up 16%. but coffee they sort of trade together but duncan brands mass a less gappy chart. >> karen. >> it's okay

what guy said, neither explosive growth nor a really cheap multiple it's okay it will do splar to the market sort of uninspiring. >> i thought the c.o.o. comment about delivery was interesting expanded checks, right it's not about driving one cup of keefe coffee it's about something somebody i'm getting a flat macka lacka and five other people say yes but i would say coffee delivery is not intuitive. >> it's not. >> it's like not then fant they are similar issue with digital ordering it screws things up. >> you want to add food. >> they want to do food. >> i'm not as fancy. >> 1986. >> that's when i did shall did when i started working and one of my jobs was making. >> coffee. >> you had to make sure. >> um-hum. >> i can -- if i could do it 32 years ago i'm sure starbucks can

do it. >> you were a coffee boy at 32 years old. >> that's where with we are going. >> tomorrow. tomorrow don't miss jim cramer's interview with the ceo of starbucks 59 "a" eastern time. adobe lowering on the tare up more than 40% this year. we tell you what that is coming down to earth. plus casino folding today at the short seller says he is short a number of names. but one trader says he is adde wrong. find out why when "fast money" returns.

welcome back to "fast money. casino taking a hit today at famed short seller jim chanos tells sara eisen the trade war and slowing has him shorting the space. >> recently we added new and old names. one area i'm scratching my head about it the ma cao. >> who are you shorting. >> you know the name wynn sands. las vegas names. hong kong listed asian

operations and then in the hedge fund we are long the chinese operators. >> these stocks have gotten crushed all down 20% or more are there signs of a turn around what do you make of chanos's bet? it seems like a concentrated bet on the china economy, trade war, as well as the notion they might lose concessions. >> and jim does thoughtful work. but he would say erwin which is trading 115ish but it trades up to 150 he would still short the stock. as a trading show, i think there is actually -- some room to continue to bounce the upside. he would agree with that as well here is stocks i mean wynn has gotten eviscerated trading below 100. i think there is a bounce up to the 120. although he is right in his fundamental analysis, i think the real pain to the upside. >> damage is done in las vegas and wynn mgm is the only one that might

have a little bit of a rocky road but it appears on a clarity that all the bottoms near term are in and the risk to the upside especially with china trade. >> dan, where do you stand on this. >> i don't think jim looks at charts >> that's my point. >> jim -- >> jim has been -- i have all the respect in the world but jim sees- so good in china he was wrong for years. >> you know one of the things is like mel is lead in was the famed short seller he has had some famous shorts. they do a lot he said to sarah we are long these guys and short these guys. i think they do good work. i suspect. >> he has been wrong a lot of times. it's difficult for a short seller to be right because the shorts never outweigh the longs. so you could be right on one off here and there he has ha a terrible call on china for years. this is his time to shine. this is his year that he is. >> i disagree. i have heard him talk about it

with people -- look how anyone running the hedge fund, running long short, running the the exposure we're wrong a lot. it's unfair because he does goes upon the show and says i'm shorting. >> just stating a fact that's it. >> okay. >> coming up, check out shares of adobe volatile after hours. the ceo sitting down with jim cramer moments ago we bring you the comments. live at the nasdaq in times square much more "fast money" still ahead. ♪ there's no place like home ♪

argh! i'm trying... ♪ yippiekiyay. ♪

mom. ♪ quarter. unilever home depot the home initiative with sap helps customers do more with their data getting support from wal-mart and coca-cola opinion and the acquisition of marcato which he

says widens the lead in customer experience management in all industries our own jim cranium her sat down with him and asked about the key revenue drivers. take a listen. >> i think we're absolutely in the sweet spot of two massive shifts happening creativitity has never been important. and when you think about creative cloud, to your point we drove 19.45 billion of net new annualized revenue in the year, a record for us. what when you think about digital transformation in every enterprise trying to engage customers, that grew dramatically. >> so for much more of the interview check in tonight on "mad money" where jim cramer talked to the ceo about this report i'm sure more. back to you. >> josh, thanks. josh san francisco. dan is bearish on the stock. >> on valuation. and i think one of the things that i think is shone over the last month look at workday and

salesforce and results by adobe he said it there every enterprise is doing the digital transformation let me tell you who else is doing it. every government these guys are in a sweet spot you look at adobe and growing earnings and sales 20% a year and all the recurring revenue and they are signing up new fortune 100 companies every week you say at 30 times how do you sport this stock to me i think this is a pocket the sas names that are going to outperform the broad market. >> wait i'm sorry to understand if 30 times don't short it. >> what i'm saying it's hard to short because i have growth and the original price and they are at a secular shift that doesn't seem to be slowing. >> if you look back at last three earnings cycles in adobe trades down right after and ratchets up had a great year technically it had a gun run in the earnings cycle maybe you see something different action but i would expect the stock to back up a bit if the overall market hangs in there you bet back on adobe up 40% year to

date maybe that don't change. >> steve is right. look over 3/4s yes you go back a couple of years and rallies into earnings sells i don't have a week and a half two weeks later all-time highs which has been adobe story. josh is gone i know he is in san francisco. >> yes i said goodbye to him. >> i love josh lipton. >> yes. >> great beard. >> that's the thing. it looks like it needs to be groomed a bit. it's getting ratchet in my opinion. i just said that on live tv. >> would you say it behind his back. >> i would have said it. >> now it sounds like you are talking trash about josh. >> would you rather me lie >> no. >> i thinks he is a hand some man. >> would you rather, josh beard or no beard. trade or fade. >> let's stick with the cloud. oracle reports earnings on monday after the bell. options market hinting a big move dan what did you see in the action >> yes oracle reports the december 17th after the close.

the options market imply base a $3 move either direction about 6% and that is rich to the fourth quarter average of 5.25% one of the interesting things talking about adobe. it had a high implied move .not doing a lot. volatile in the after mack now up a few bucks it bounced in sympathy with workday up 13% on november 29th after good results and salesforce on november 27th up 10%. they got hit hard with nvidia. high valuation and growth nailed they came back adobe does underperform that next week oerk sell different. stock unchanged on the year down 11% from the at that-week highs in june. up 11% from the 52-week lows months ago s in a company growing earnings and sales low single digits at best the only growth they get is when they make the multibillion-dollar acquisitions i'm not expecting a lot. there is the one-ier chart

you can seasideways. look at the five-year. 45 downside looks like important support. this is not a market where you are not growing and you want to miss and guide lower because you will get punished. injury 80s one up, two down scenario for these guys next week flew for "options action" check out the full show tomorrow 5:30 p.m. eastern me next, final trades. see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade

grasso. >> you know what's outperformed everything xlu, utilities i think it's kinning to outperform up with the up market. up with the down market. xlu, utilities etf. >> chairwoman. >> a lot of twitter, dan ire and what not jp morgan. i like it here if i'm long it going in, i'm same as buying it right here i think it's on track. >> there is no ire here, karen if i were buying a bank i'd buy jp morgan all day and on sunday. >> but you would never do that. >> no. i think jp morgan at $95 listen i think the costco guy was right. sell it. >> wow.

>> you know i love josh -- josh is watching. >> you couldn't have just e-mailed josh and told him about the beard inof broadcast going to the nation. >> in the united states. >> traders. >> bristol myers yoloediku ok le i didn't know. >> see you back heretomorrow a 5:00 jim cramer starts right now. make you money i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends, i'm just trying to save you money. my job is not just to entertain but teach you. so call me at 1-800-743-cnbc or tweet me @jimcramer. it's recession no, it's boom. the economy is falling off a cliff!