>> people are saying. >> brian on "halftime report." did anyone predict a thousand point move on x li wex. >> futures were up 15 at 5 eastern time i don't need toll you they were trin thinly traded at that hour we started small and continued to gain as the day went on. >> the key question which i'm sure you'll answer is what happens tomorrow that's it for "closing bell." >> over to you brian "fast money" begins now. >> we will try that. a monster rally. "fast money" begins right now. heart in the times square. i am brian sullivan what a day the traders are near and far pete najarian in minneapolis chris harvey gene munster and brian kelly k.b.k. on set. our coverage offer the massive santa clause rally rolls on. the dow soaring 1,100 points 1100 points for the bigds

biggest hundred one-day point gain ever. the s&p surging nearly 5% for the best day in a decade no doubt investors cnbc viewers are happy right now. especially off of monday's 600 point fall but here is the trillion dollar question is the rally a sane that the bottom is in is this the start of something great or just a huge day in a weakening market because -- and i hate to do this glass half empty, the two other big point gain days, 2008. >> it's funny before on the desk. >> funny about 2008. >> nothing funny about that but funny how it felt in terms of the volatility we were having. felt like the rallies we got in 2008 that is not to suggest that this economy or market or anything -- is anything like that. what i think we had today was people just said, listen we priced everything in we priced in all the concerns we had. sounds like powell has the --

chairman of the federal reserve has the job for 90 days 180 days sounds like the fed is somewhat dovish the next six months or so sounds like maybe we get movement on the shutdown and then you know, maybe i o we get movement on tariff talks and price it in. people are short you come in and get a nice rally. >> how much of this was a short lived short covering rally. >> i don't think it's short lived. most rallies start with the short covering right but because we didn't fade at the end of today that gives me more hope this is something we're on. >> the tech selling, that was a big piece. i talked to aportfolio manager today. he said he basically cleaned everything up by the end of the last week and obviously that's weighing on. >> that he was selling. >> done selling for the clients. and that may have played into the action today get nag stuff cleaned up >> hold on a sec pete najarian here is my question what a day nobody taking ngi from the day here is what i want to know.

what is different today than 48 hours ago when the market fell 600 plus points worst christmas eve ever suddenly everything is okay. kelly is telling you powell is staying at work. maybe a rate cut trump didn't sweet tweet today what is different nan 46 or 48 hours ago. >> i'll give thu how about potential of maybe something happens earlier if you saw zero hedge talking about maybe something maps a little bit earlier in terms of china negotiations we talk about the trade talk all the time you agree with brian kelly the news changed somewhat, brian. but i'm giving brian kelly a little something as well we talk about algorithms on downside i'm talking on the upside what we were saying again was the algorithms trying reported and they moved up. this was not just short covering this was computers to the upside it's notts just the downside it happens upside as well. >> totally agree on that pete.

everybody blames the sell offs on the a algorithms but they work on the upside and downside. >> does it make a healthier market most people own stocks hold on most people own stocks they don't short stocks that's why they tend to be happier when things go up we make money. when oil goes up 10% on nothing fundamental changing from yesterday. not a healthy market. >> you could say the same thing last week when oil went down and s&p went down. >> no because it's too much down. >> let me jump in. >> the computers are part of it not causing it they are an accelerant to this we talked about it since 198 the crash is because of the computers. >> chris havre yao. >> i think gene is onto something. it's the january effect earlier. i have you have seen liquidation, tax loss selling that ended it was amateur hour this was

firing that one. if you wanted to instill confidence that's not the way to do it. we washed that out and b.k. is right. you have so much negatives news in the marketplace powell abfed mistake, fired. the economies rolling over finally what we have a little bit of good news i think what happened is the selling stopped we have gotten to that point. >> you're going to dodge this question like dodge ball in fifth grade. here you go. scott mine ert brought this up which is a missteps all around, the mnuchin email, the sunday mask or whatever you call it sparking fear. powell with the unfortunate autopilot comment offhand. you have the president's tweets on tariffman we don't need to be political but nothing happened politically. happened and see what the market needs. >> sentiment has broken. what you need is sentiment to improve. you need quiet nothing negative to occur if you get nothing negative to occur you can see a lift in the marketplace.

>> i think the other part we are missing is that when we talk about 2008 that brings back that we're not through the worst of this but 2008 there was something fundamentally wrong what was going on in real estate. 2000 a lot of people lost jobs, the companies coming out this to me -- you talked at the beginning of the show about are we at the bottom i'm no saying we are at the bottom buts in a turning point of the market over the next year because fundamentally nothing has really fundamentally changed in this market i think investor confidence is springing back. >> let's say we greet with that pete, that means 11 months good one month bad. december terrible. i don't need to tell you all the hyperbowl. >> is this month all the way it goes or 11 months. >> i would say there is a velocity issue we deal with. when we talk about the algorithms a lot of that triggers velocity. i will say this as well.

i don't know how many guys were talking about this but in the derivative markets before we started to the upside, the first hour of trade as a matter of fact we were moving back towards downside to negative territory there were buyers of spdr calls. buyer of the triple q calls. the xmi, the xl, all of these indices out there were getting bought up in huge numbers. it's all very short-term i'm not sure that i heard brian kelly exactly correctly or not i'm saying this. i think this is trading. this is not investing. when i look at the where people were looking today, they are going out one week, this week, two weeks, three weeks but they were going out into january at most expecting these moves to be very rapid and then pulling back and when you look at volatility index we talked about this a while when in the low 20s a lot of guys said we pull back from here no we are trading in a marketplace that deserves a 30-time vix that we see because

we are getting two and three and today 5% moves out of the major indices. we are actually still too cheap going out into the 30 vix right now than we should be. as a matter of fact we were at 36 we sold off somewhat down towards 30 i think a little bit of. that coming back at the end of the day specifically but we are too cheap even at a 30 vix right now in we have these moves. >> and a vix up 260% so far this year chris harvey >> yes. >> you slash the 2019 s&p 500 target late last we can but up until then a relieutenantless bull last time you were on this show you were calling for a rally >> i think we can easily get to 2,900 not far away again we have had a 6-point swing in a matter of -- in 24 hours. a 24 hours of trading or a little bit more than that. so you can easily have that positive news come back to the marketplace. that's not a surprise. we are sitting around 2,700. we tested 2,800 not long ago.

>> now the s&p fiefd chris down 8% since then. cut the 2019 forecast from 3079 to 2665 what made you change the tune and how does the rally today if at all impact the thesis on the s&p. >> today's rally doesn't impact at all what impacts it is sentiment has been broken. the fed is telling you they're going to be reactionary and the negative feedback loop is closed we think equities move higher but the ceiling is lower at this point in time. we were teetering. before the fed said what they said sentiment has been dented then what nepd is we needed a one-on and done they didn't give us that. i can tell you from the conversations i've had people are now listless the institutional investor the confidence is broken that comes back. the fed is reacting to negative news but the markets aren't waiting for that what does the market look like when the negative news comes lastly we have been talking about a little bit it's feeding back into the

psyche people saying i'm requesting to wait to invest wait to invest in that property, plant and equipment feedback to the economy feeding back into growth and ultimately back to equity prices. >> if they miss the rally if they were out, 5% gain, 10% in oil is it too late. >> i don't think it's too late but you doept want to light your hair on fire you want to be very selective. reits you can buy. some of the biotech you can buy. some of the hardware newsom -- excuse me software names you can buy. but you have to be selective. >> what's interesting what's changed was when chris here in the past the fed funds rate what the market is specking the fed to do has change a bit the probabilities have changed a bit where the fed is expected to be a little easier if you are looking for an entry point i grow with pete this is more of a tradeable bottom let's call it. let's call it the next maybe 30, 60 days something like that. you have a chance to trade this thing. but this is deep end of the pool trading. you're getting massive

volatility you have to be prepared for that. >> pete? brian, this -- you're exactly right. this is incredible opportunity for a trading prevc. you have volatility above 30 you have that in your favor as well then look for fundamental story if you are not in the derivative market where i primarily am. but if you're in the actual stock market there are quality names out there. we have seen more and more folks willing to start stepping in as a matter of fact some of the smartest guys i know were calling me talking about i'm looking for names pe names in the single digits. they have great cash balance sheets right now they are not leveraged i'm going to start nibbling on stocks well you also have an incredible volatility can you sell against some of that it does create opportunity even for some of the longer term but in the short-term this is trading, trading because that's the environment we are in and because the algos we see where volatility is right now. >> if you are raiding trading as

pete said, said, said then the charts matter a a lot. let's check on the charts with todd gordon of trading analysis. third time the charm todd. >> how you doing, brian. great cupp s&p 500 how severe was the downturn i would show you the prior two significant corrections, 21% 15% we went right down to 20% technical bear market and bounced. i covered all the shorts today as pete and the guys says in definitely a trading market. let's go down to the next chart actually same time frame but define the uptrend that has kept the market going we did break trend that's an issue. getting off the weekly chart the trend break occurred at 25, 25 off the weekly go down to daily. this is the point that defines the trend. it was broken. people caught there are algos follow this stuff if you get a retroech to 2525 on the next

chart that's watched this is the trend break right there. we might have room to go if you are nimble enough try to get up to the 2525 i don't think the lows are in. i think this is a bear market rally. markets don't crash higher i think we go down and get to the higher vix levels, 40, 50 we have seen in other volatility periods. >> any indication of how low the loies may be. >> that's a long conversation. but i do think a break out to the 2015 area about 2,100 is very possible and if that doesn't hold that starts to threaten the very heart of in uptrend and that brings in a move down around 1,800 i think we might have some room to go. but if everything comes together and we do get the squeeze up through 2525 we could certainly be back in the 26, 2,700 as guy said trade it you have to stay nimble. >> got a lot of people off today having cocktails were in a great mood until now we got security downstairs

the whisk you out the side door. thank you very much. we are checking in with todd if he is alive in a few months let's trade that call. look out below according to todd. >> but what todd said we are in a tradeable rally. i know the one thing todd does a lot is talk about time frames. and you look at the chart he presented there. we have had three corrections now. and all lasted around the same time now you expect some kind of rebound. let's call it 30 to 60 days or so and that's again a tradeable market at that point we have to see what the world looks like. in 60 days if we still have a trade war, if the fed auchlis a a sudden hawkish then you have the catalyst for lower lows but right now today that's passed. >> i think it's going higher if we get two or three more days like this the next few weeks we have agreed to psychology is a critical part that we haven't talked much about that

all the headlines from the consumers the market had a great day we continue that. >> you're safe coming out of here much more on the monster rally the biggest ever point gain ever talking more about the fang stocks two names todd says could be buy signs right now. he doesn't hate everything plus retail christmas miracle. the stocks soaring after a boost in holiday spending. is the tide about to return for beaten up reits? pan oil best day in two years. the great helima up on "fast ckft ts.ight after this. ba aerhi

urgency welcome back to "fast money. it was the best holiday season in six years for american retailers. consumers spent nearly $1 trillion sending retail and shipping stocks soaring frank holland who had a long day at cnbc hq to break it down. we have to stop meeting on the fives. a.m. and p.m. >> do it again tomorrow. don't say stop yet let's get down to business hop holiday spending growing more than 5% from last year

$850 billion spent between november 1st and december 24th online spending up 19% all this data from master card, specialty apparel stores saw the biggest ganes nearly 8%. brick and mortar up more than 3% department store sales fell more than a%. master card says largely due to closures the retail sector seeing a boost from holiday spending with the etf, xrt, etf spending up more than 5% a major turn around from recent declines and the best day since 2011 one of the biggest winners way fair closing up the 11%. american eagan abercrombiey and fitch closing up more than 10% specialty retailers in apparel amazon the big dog in retail reporting what they call a record-breaking holiday season not giving out hard data but the e commerce giant says it shipped more than 1 billion items through the prime service

and sold millions more devices like echo and fire tv. amazon a huge part of the retail rally closing up more than 9%. finally the holiday e commerce report card, last week before christmas and christmas eve is like the super bowl for the major shippers and they're graded on on time performance. the post office getting the the highest marks for on time delivery ups and fedex a tick behind all three above 95% for the holiday season which is considered excellent. and brian we have been talking about this since 5:00 a.m. not a direct correlation between on time shipping and the stock quote. ups rallying all day, the best since 2009. >> good stuff, frank holland i will see you bright and early about 11 hours take care. >> see you there. >> is this the beginning of a bigger rally for the retailers pete najarian what do you think? do you think the retailers are running goot good data today.

>> great data as a matter of fact but you know, brian it's interesting because all this time everybody is always focusing -- i think it does tell you a little bit about what's driving the market, right. part of the issue is is the consumer really there? are they strong? confident? how are sales? how is everything doing in terms of hiring and jobs and all the rest of that all of that has been very positive as we know. brian coronell talked about how strong it is and then all of a sudden you deliver. the facts are now in now people able to bite into this and say, you know, maybe it's not as bad as everybody is talking about. i think that's interesting i look at names like target. the big turn in amazon today absolutely incredible. i own some names lulu lemon up 8% many of these names have been sold off because of what i keep bringing this up but the algorithms not looking at fundamentals it's just sell and anything and everything so that's what's been going on look at something like target,

$88 stock down to 60 are you kidding me was it fundamental no but now all of a sudden you get concrete numbers when you see those they are impressive enough that i think that might trigger some interest again in retail, in ups, in fedex some of the shippers. >> okay so gene munster. the nasdaq on squawk box late august early september brian coronell speaking with becky quick said and i quote it's the best consumer economy he has seen np 30 years of retail unfortunately for brian coronell that was about the peak in target stock you have said -- you're a minneapolis guy as well by the way, where they are headquartered. you think amazon could buy target if i remember correctly. >> you do remember correctly we said it would happen in 2018 and we were wrong but we still think this is going to happen ultimately because amazon wants to be much more than just an online retailer. they want to capture brick and

mortar to get that at scale you need more than 500 whole foods stores. >> the reason i bring that up is you heard pete make the fundamental case for target and it was well oversold i assume you agree with that view given you are bullish on the markets and throw in the sprinkle on top of a possible deal i would guess that even though you are known as a tech guy you think target is a good target. >> target is a great target. injury the combination happens i would say just quickly talking about amazon a some of the things pete was talking about on the press release and set setup. 1900 word press release from amazon three times bigger than most press releases it's a puzzle. but i caution viewers this this quote record sales holiday sales quarter they had, that means it's up -- could be up a few% and the street is looking for 19% growth from amazon i think that amazon even though i'm a believer in everything they do longer term could fade

after today's rally. >> chris, the consumer is good retail stocks bounced. i think pete is right. you have to trade them sentiment around them was terrible and they bounced we had a great holiday season. i can tell from you my family a lot of gifts around the tree but at the end of the day you want to trade them when nobody else wants them. they bounce significantly i don't know if they hold the bounce you want to look for parts in the market really beaten down where. >> some of these have been absolutely crushed i do wonder, b.k. if the expectations to gene's point are way too high. >> i think. >> everyone knew it was a good year everyone knew the consumer was strong that's not breaking news. >> then fed iks coming out and say things aren't as strong. people took that as a proxy for the online retailers looking forward what we have tomorrow, consumer confidence tomorrow at 10:00 a.m., that should help the retailers, assuming consumer confidence stays high if everything that master card survey is saying, consumers are

actually pretty positive at this point. we have probably priced in the negative wealth effect of the stock market fall and due for surprise as long as the consumers say happy. you're have a sustainable rally in retail. >> for more upon the retail rally head to trading nation.the cnbc.com you are watching "fast money" on cnbc we are first in business worldwide. here is what else is coming up tonight. ♪ back in the saddle again. >> announcer: and stocks and getting back in the saddle a top technician says it's off to the races for two names in particular he tells us what they are. and -- >> announcer: want to know what has elon so giggly well it might have something to do with the tesla huge move today. and you won't believe how high l atndorwh "sttock going alth a me enfa money" returns

all right welcome back to "fast money. the teleprompter which is what we are spesed to read says a huge day on wall street. that's understated the nasdaq up 6% the best day since 2009. the single best point gain ever for the new york stock exchange. not percentage but point either way bob pisani at the nyse this was indeed a bigly day. >> yeah, a really tough day overall started out and got better as we went amazon look at moves on amazon up 9%, best day in the year facebook up 8% netflix up 8.5%. apple and alphabet up 8% when the s&p is up 1% they move more amazon up 17.6% when the s&p is up 1%. look at amazon up 9et.5% that's

a sign of how oversold it has been netflix would be 19.9% when the s&p is up 1% that's just shy of what you expect netflix now up 8.5 other tech names had it tougher but tech is outperforming throughout the year. down 5% compared to the 9% decline for the s&p 500. as positives the high beta names the volatility incredible. semi conductors for example from up 15% to down 20% as a group process. that's a 35% kwing for a sector. here a another way to look at the volatility many stocks way off the highs but still up for the year. look for example, 50% off the highs amd, 50% off highs still up 70% for the year. atoby 21% off the 52-week highs still up 25% for the year even microsoft, 15% off the

52-woke high but still up 15% for the year sysco, 16% off the high. still up 9%. this gives you an idea of how hunl the swings have been this year back to you. >> absolutely massive. bob thank you very much my friend now, let's go to three technology names you may want to buy right now. why do we say that let's go to the charts with todd gordon of trading analysis.com who has some things that he does like despite remaining bearish on the overall market. >> there is the names i added to the portfolio today to see how much of the short squeezing rally we can ride. apple is a good holding. i added some beautiful technical position in here is the weekly chart. you don't look at moving averages on daily. look at weekly sometimes the ma are more powerful on the weekly this is the 200-week moving average. you can see the average prize over the last 200 weeks of apple is there mean reverted that's all that means on top of that you look at the move that originated from 80

up to that 210 area whatever in apple, 220 we did a 50% price retracement winds up on top of that. the zone is from 147 to 142. we got right down to the 147 area put the bounce in closed up around 154, 155 today. good enough. i added holdings in apple could get a bounce navy back to 160, 170 that's all i look for next up, google, held really well alphabet held well a good shelf of around the 1,000 even level and if you throw any indicator you want up there you show differingens a loss of momentum on the approach to 1,000. the rate of change is decreasing i think that short squeeze could continue up maybe a move back towards 1,100 in google. and a sleeper pup one of the largest holdings in my portfolio a service called twilio which i

use to send text messages to my subscribers in my business really really good relative strength twlo to the s&p twil yo divided to the s&p certainly showing a strong outperformance. the 200-day moving average adding good support. i think we're around the 82 level. a move back towards 100 on any short squeeze could make a 52-week high on twilio i like this one added more to my holdings today. >> you know, hey, todd i know you are negative on the overall bkt market but bullish on google how systemically is google it's one of the fangss. it matters if you are right in the technology analysis won't it matter to the market because google is so big and important >> absolutely. i think we are seeing nasdaq relative strength to the s&p we are seeding tech outperform. you are seeing more s&p heavy sectors like industrials, and other names really start to

press lower. i do think, again, we could get a short--term move up here not saying we're making a new high with you a bounce in apple up to 150. google up to 1,100 amazon back to 1,500 i think tech is showing good performance. the other thing i mention is semi conductor smh holding good lows i think tech might be a source of value in here might be some stability i think in an overall weak tape. >> all right todd trading analysis.com. thank you very much. so, gene, we know todd likes google apple you think it outperforms in the near term. >> this afternoon we came out with the 2019 prediction eight of those predictions the number one prediction and see apple will outperform the rest of fang there is a break up in fang in 2019 but specifically i agree conceptually where todd is some of the numbers he talked about wrr apple can go we're in disagreement quick context.

every ten years or so there is a different methodology in terms of the apple story the next phase is around services we are not talking about the 15% business services. this is the hardware operating like a service if that happens and they can start to get investors more comfortable that there is sablt in this miss and predict ability you could see a consumer staples type of multiple which imply as $350 stock i mean this is orders of magnitude more than as a sellside analyst a long time it was never racking to stick your neck out that's why you see the marginal price increase targets but in could be a bigger story about apple's next chapter. >> well, apple suffered just like the market did with the fed. botching the transition. they did a terrible job in the last quarter basically surprising the market saying we are not issuing any guidance anymore. >> let me ask this -- >> how else do you do it they it it on 40% earnings growth. >> it doesn't matter we can go back and forth how

they should have done it the way they did it botched it but that creates opportunity for investors. so i agree with you. we have fundamental support for this they botched this now people say we don't know what's going on. dumped out that's an opportunity in apple i like it here. >> you think they made a mechanicing mistake. you even commercials call it the xr it's ha x railroad i think i gott gott an mel email you could buy the xr for 499 aren't you worried that they may have made a rare if not one-time mistake with in rollout. >> let me fast forward here for a month. i think apple is guiding down for the march quarter. >> you do. >> i do. >> okay. >> i still think it outperforms the rest of fang. >> the guide is maybe already priced in. >> it's priced in. but yes there is can be incremental shifts but if you look who how people are centering around apple that that's a more services like

business and deserves a higher multiple. >> may guide down for the march quarter but priced in bullish on apple. energy stocks on fire. crude oil soaring 10%. helima croft says this is the bigger rally plus tesla up 10%. one of the traders says a topic heading into the new year. we find out why when "fast money" returns shield℠ annuities from brighthouse financial allow you to take advantage of growth opportunities with a level of protection in down markets. so you can be less concerned about your retirement savings. talk with your advisor about shield℠ annuities from brighthouse financial, established by metlife. your but as you get older,hing. it naturally begins to change, causing a lack of sharpness, or even trouble with recall.

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this really truly and historic day for the markets. oil was a big part oil prices roared back today jumping 9% after sinking to the lowest level in a 18 months let's go to jackie deangelis for all the details on the big oil day. jackie. >> hi, there, brian. a big bounce indeed. let's look at the day's range that says a lot. the session low 42.5 the session high was $47 even. 46.22 is where it finished up up almost 9%. the volatility is tracking what we see in the stock market they're moving hand in hand right now. but oil has been down for a few reasons. the fundamentals say there is probably still too much supply in the market even with opec cutting. and in is a seasonally weaker period for demand. but nonoil takes a second punch when stocks suffer because investors worry about future demand, global growth. lower prices call in question the energy sector ability to

maintain profitability that drags on stocks again as if there wasn't enough fear in the marketplace. crude oil is down a little bit less than 25% year to date that number looked so much uglier before the move higher and of of the energy sector is struggling we have to tosz how it shakes out about tu could be the worst quarter in history for energy look at the names getting crushed. maybe a good dayed to by hechlt ess. hashlten the losses here are staggering the names show you there is weakness across the secretary frere big oil to servicer to pipelines, to the refiners now the question of course after a move like today, can it be sustained? investors got comfortable with prices a little over $50 a barrel i think they will be happy at this point with stabilization a little over $45 breyen >> we are finding out jackie thank you very much. your next guest well-known to jackie and our team says the selloff in crude and energy

space is overdone. helima croft first off, welcome. >> thank you. >> second off, what do you make of the big rally. >> there was really noblish news out arthro. >> that's the point. no catalyst. >> no catalyst again. >> why am i yelling i've been up for 60 hours. >> that said, brian you said earliyier on the show the big problem for oil is supply. and so i think what we really need to see as we get into january what happened with the opec costs do they materialize in a way that brings balance that's the next story to watch in the oil markets from aftd perspective. >> when we were in vienna and they made the cut you said on the air if they didn't cut we might go to low 40s high 30s went to the low 40s with the cut. but what i think is important for people to realize is that these cuts have not taken hold yet have they. >> no. >> it's not like tomorrow we cut. >> they start the beginning of january. so basically we have a situation where all the supply remained on the market

we had the saudis pushing up production going into the iran sanctions decision now it's on the back of saudi arabia to take back the summer surge. >> will they. >> i think they definitely will. one story that got overlooked last week, saudi budget came out with a 7% increase in spending saudi arabia budget is based on a $80 brent price. can we get back there is the question but for the leadership they are doing whatever they need to get the oil on the firmer footing. >> isn't this shuffling the chairs hon the deck of the titanic. >> titanic was coal fired. >> the ultimately cars use less. we're 1% of ev today that's grow egg spoengsly yes there is a rally but end of the day there is a shift away. >> the real shift away for more we are years away from that. >> but it's coming. >> it's come at a certain point still needing oil for transportation still need it you can't have an ev for plane obviously

there is energy transition but that's not the issue the next couple of years the big smu. >> maybe couple of decades, no photographs. >> i disagree. >> it's growing spoengsly but the amount of cars that are electric is nothing. >> small percentage. >> almost nothing. >> but the thing it's about the future, the intent to buy it's about where the market share goes i was recently in the uae, the sovereign funds are talking about in trends trend. >> and saudis are talking about solar panels because it sounds good. >> i think their sovereign funds they invest in evs, the ertz batteries but also make big investments in conventional places as well i like about the uae it's more did diversefy cakes but the big story is what happens with the u.s. that's the shuffling story. the morrow peck cuts and see a life line to u.s. shale that's a key story this year is what do shale producers do. >> that's the big problem.

i mean, right now capital -- can you hear that signed that's capital spending plans cut left and right for next year maybe bull zbliesh maybe bullish but right now you still have the sentiment that shale will overwell an opec cut i think this market mr. tighten. i think q 1 will be sloppy but the market is overlooking what is the impact of the opec cut. >> helima how important is the 40ish level? we saw before oil consolidate there. but below it everybody is concerned about the shale producers going out of business. we're back does in service -- is there a fundamental support level to $40 in oil. >> what we were looking for was the 42.0 was a key number to watch. if you fall below there you really are seeing question base can shale producer sustain drilling next year the permean can be more profitable but you have other plays not profitable taufl in this type of price environment the question is though how quickly does that mean production comes down?

so price is going up in the new year bottom line. >> prices will go up in the new year barring some major economic meltdown. >> helima enjoy you on the 5:00 a.m. >> that's my show. >> get up early, the early bird gets the oil worm. helima croft capital markets. if helima right. normally is. should investors buy the energy names and stocks on the dip? pete najarian. i put out loads of statistics on this some stocks down 40% and 50% in 20 days. >> yes it's been an amazing just absolutely just pounding of some of the names to gene's point go towards the integrated side of things, you get more investment into the different alternatives that are out there obviously. so and i think that's an investment that they are slowly moving towards like when you look at what's going in the marijuana world right now you see the investments that are being made there for the future knows aren't for really right

now. those are for the future i think the integrated names when you lock at cash they throw off those are names i'd be in. they didn't react in a very violent way to the upside when we had oil moving up as fast as it did but we did see them fall back fast i think knothose are the names o be in when you consider the move we expect from energy. listening to the helima it sounds like something percolating and moving up. if that's the case i think the integrated names are the place to be. >> pete, what do you think about the supermajors, the reminers right here niece are names we look at spaces we look at because we find value there. >> yeah, i agree with you. as a matter of fact i've done adding here and there but i've had positions on something like exxon and chevron i got little beta on. one diamondback. famg symbol pl outside of that a name i'm staring at today. i can't believe the level it's

at valor o. when you look at the balance sheet looks like what they look like as a company going forward that's a name that's been sold all the -- i mean incredible selling in that name i think there are opportunities out there that's one of the names is helima is right in terms of direction and energy push we have that's a name that could do well. >> i'll jump in. crack spread is changing but be be careful on the imo maritime organization 2020 rules sounds insane has the change in sulfur content in diesel. process that's one of the reasons refiners acted busy ara. pete thank you very much chris when you say looking at, i assume looking at because you think the refiners which has been hit as hard as any group are a good value. >> we think they are a good value. we ran a model portfolio in the we have the majors and supermarilyns we think good

value. >> go to a tease prewe appreciate it a lot more to do. goes to gene's theme what one trader saying tesla one of the topics for next year find out one of the four and see how high he thinks it could go "fast money" is back faster than it takes a model x to go from zero to 60 that's fast. stick around (toni vo) 'twas the night before christmas, and all thro' the house. not a creature was stirring, but everywhere else... there are chefs, bakers and food order takers. doctors and surgeons and all the life savers. the world is alive as you can see, this time of the year is so much more than a bow and a tree. (morgan vo) those who give their best, deserve the best. get up to a $1,250 credit on select models now during the season of audi sales event.

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big day for the markets. big day for tesla. tesla stock surging more than

10% today. this coming as wedbush said for the demand for model three looks strong gene you made comments on evs earlier this is one of the top picks next year. why are you so bullish on a stock that's so unpredictable. >> because the anemia is so undeniable you think about product road maps tesla is the best in all of tech cars, panels, storage walls all of that. that's the future. no other company claims that i can't make excuses for what elon musk and inevitably will do on twitter in the future but i can say the company has the best electric car at the best price ly add i think later this year any will unveil haven't talked about this -- we think they unveil the model y that's where they get beat hard in the u.s. market in the suv class. they are showing the model y later on this year i think the combination of these is opportunity for -- >> you agree with wedbush obviously bk.

>> long term sem laroue play getting cashin oil out of the electric grid. that's what tesla is going after. i think you probably have a lower probability of elon musk blowing up the story via tweet now it's in the past hopefully they have control on him. he is certainly the creative genius behind it what's great for tesla, if any got a good operator in fl that would make me happier. >> all right guys thank you very much well the big name financials also a group on a tare today this is this a real sign some of the pain in the financials one of the hardest hit may be coming to an end? the sector down 24% from the highs. see what the options market is saying check in with dan nathan who is in dallas live at the nasdaq and we are back right after this dealing with millions of customers a year, like this one. no, i'm pretty sure i didn't order a squirrel playing a guitar. that's why you work with watson. it works with your systems to resolve calls faster

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mom. ♪ like many sectors today on a record breaking day for the dow. the big banks breaking out after a shall we say rough couple of months the xlf etf sitting in bear market territory, meaning down more than 20% from the high. but one trading bets the rally has long-term legs dan nathan breaking down dairy say "options action," dan. >> sully was in morgan stanley today. and call volume 1.57 times puts. looks like a trader was looking out to february expiration playing for move back up above a very important breakdown level when the stockway was 38 today there was a buyer of 8,000 of

the february 42 calls paying $86 cents for those. break even february expiration up at 42.86. up 13% from the trading price. really important the stock up 6% that's the half the distance you need to get to if you want to break even on these. two charts quickly showing the $40 breakdown level. the 5-year chart really important level there. look at this 20-year chart it's a massive, massive downtrend a series of higher highs here to me hard hit group i know a lot of investors look for this to be a sort of dogs of the dow play into 2019 because they were so hard hit in 2018. >> big bet there on morgan stanley dan good to see you happy new year more "options action" check out the full show friday 5:30 p.m. eastern. back right after this. >> announcer: optioning action is sponsored by think or swim by td ameritrade. eh, it just feels too complicated, you know?

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time for final trades. let's go around the horn pete najarian. >> i'll tell what you stick with tick alibaba. love what i saw on the call buying there today love this name. >> chris. >> reits we love them paid to wait and work in up and down tape. >> gene. >> own apple don't think about it the next six to 12 months. >> even cutting guidance in march. >> still own it today. >> i'm calling the sully surge because you from five "a" now the market up 1,000 points

sully surge. if the sully surge works and we have a bottom you might not need gold as a safety trade take profits in that. >> you didn't call it the sully bottom don't talk about my bottom pete najarian that does it for my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere, 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 some money. my job is not just to entertain but to educate and teach you so call me at 1-800-743-cnbc or tweet me @jimcramer. we too often invest for the day. i hear people talk about what is working. and in the old days whenhe