we are looking for a substantial of the idea the economy holding together better than we thought it was four months ago. >> and led higher by tech apple continuing the charge. >> but all sectors, broad rally to record closes for all three of the major averages. we are out of time that does for "closing bell." >> "fast money" begins right now. live from the nasdaq market site, this is "fast money. i'm brian sullivan and your traders tonight are tim seymour. darren finerman, steve grasso and guy adami. tonight on fast, you guess to do more new highs for stocks. but as prices go up so do valuations especially in big tech are things looking a little 1999 out there nyu dean of valuation joins us with his thoughts plus we have not one not two but five calls of the day. the traders break down names and the wall street focus. and steve has a fast pitch on one red hot camera stock that he says has more room to run. the name and why steve is so

excited. all right. hi, everybody and good evening thanks for joining us on a busy thursday all that ahead but we have to start with the top story because 2020 is looking like 2019 mor new records. the s&p dow and nasdaq all posting all-time highs but there are a couple of big events that could change things up in the coming days beginning with the big jobs number tomorrow the expected signing of the phase 1 trade deal next week now iran has calmed but not gone and everyone seems to be, guy, wondering about the fed. how should investors be getting ready for this the macrosetup with the market that just can't be held down. >> i've said it for a while, i definitely made this more complicated than it has to be. it's interesting, the knock against bitcoin it's created the out of thin air. that's exactly with the federal reserve has been doing since september. creating liquidity out of thin air and that's justing the market north of $400 billion over the last three and a half months by

april the balance sheet at record levels. that's it. jobs are important, yes. china deal, all those things, this overrides everything. so as long as the fed keeps playing the game i think the market keeps vaporizing higher that's exactly what it is. this is indiscriminate buying. there are at least 20 indicators metrics name it what you want at levels irrelevancic in terms of being overbought or upside risk if the market doesn't seem to care. >> and things we look at talking about the aaii bull/bear spreads and basically at a spread of effectively where we were at the ys pulled in a bit earlier in the week the cnn has a agreed and fear index. extreme greed is 95 within and we are at minus 1 back in christmas of 2018 when everybody was about to jump out a window if you think about the fed -- and this is really where i think we're universality accepting of the fact that the fed is the reason behind most of this i know we got a trade deal, this and that but the fed is the -- fed claret

vice chairman gifting you an indication easy as she goes until mid-year. when you talk about the repo crisis, the fed is buying 60 billion in bills in the next few months meaning they will grease the liquidity scale. meaning on some level, some level, valuations don't the matter i know the dean is talking about that but at some point valuations do matter and i think they are starting to. >> i agree with that i mean that's fundamentally what we use is fundamentals to value stocks and i hate when they sort of levitate on nothing, because the bar gets higher and the earnings expectation gets higher. it's easier to miss. and that wouldn't be surprising to see that. i look at the volatility index today down 7%. i mean under 13. so i own s&p puts. i need to protect the longside i mean it's just volatility. >> volatility falling, karen at a time when missiles were flying from iran at -- to u.s. air

bases in iraq. >> 72 hours ago things looked very different the vix you got to own if you want to stay long stocks because it's too cheap. >> i think the balance sheet to guy's point, balance sheet is what caught most people off guard. adding liquidity caught people off guard. i think you'll get an opportunity to sell the market on china, january 15th. >> now. >> yeah you could sell it in phase one because there is a gap between face 1 and 2 and earnings i think earnings could surprise to the downside there is the opportunity. >> the gap, steve could be years. how long did it take us to get to phase one >> the point is for me i think it's bullish to have a certain amount of time between the two phases because it keeps shorties on their heels >> well the absurdity is that we created a problem and we slowly don't solve it and get more bullish that's what happened here i realize there is a fundamental problem and in fact we're not a political show but we know on

both sides of the aisle there is unanimity what we need to to do in terms of china policy but when you get back to it -- by the way asia is issial rallying asian markets have been outperforming. if you think about where we are for stocks, megacap tech of which a lot is asia exposed has been what's been outperforming i know we are talking about microsoft. we seem to talk about apple every day. but the triple qs are outperforming the s&p which is up 12.5% meaning triple qs are up 16.5% since october 3rd low. >> what the market was expecting after phase one -- at least what i expected was maybe a couple months later but we heard president trump say he could wait until after the election that to me allows you a window of opportunity to maybe sell the print or sell the news so to speak. >> do you believe that by the way. >> on how long he waits. >> do you think he could wait until after the election. >> i think he is holding -- holding it out there because i don't think he thinks he can get

a deal done before the election. he makes it as if it's his choice. >> a lot of that is posture. >> totally. >> i will be here after the election, you know, guy i wish we had the chart i should have done it. my fault if you charted the s&p 500 versus the fed balance sheet expansion since october. they're perfectly correlated. >> 100%. >> two to one. >> it's not like we haven't talked about it. you've talked about it a number of times we talked about it in the show that's clearly what's driving this ship. again it doesn't matter if you own a stock that goes from $5 to $10. the reasons why don't matter you have twice as much money as you did a week ago that's great but don't confuse it with fundamentals of the companies. because frankly fundamentals for most markets have been thrown out the window with that said there are sectors the fundamentals are working look at health care, for example. a name like ealey lily all-time highs marc around all-time highs. big cap pharma which fundamentals are behind could

work. >> could you say the fundamentals are just that, liquidity issues in the market because when the fed was shrinking the balance sheet and tightening people were exiting the same correlation you saw in the s&p was the same correlation we see now back then now it the reverse thousand they might not be lose loosening thp. they might not be cutting but they are expanding the balance sheet again. >> i think we have to be careful, because tim when you look at who our audience, the audience watching listening to "fast money" "fast money." lets assume all the people driving home tonight are individual investors they are not buying or selling or stopping the 401(k) on the federal reserve on a day to day basis. there is two markets out there, the investor who puts cash in month after year year after year saving for retirement and the high frequency traders who maybe they just trade only on the fed balance sheet. i don't know. >> well. >> who is in charge? >> i think we have found that passive investing certainly seems to be winning the day. and whether you are graham dodd

or someone that is following fundamentals over time and basically we said before money is made over time it's lost very quickly, which means if you stay the course that's typically been the rightthing to do i continue to believe that both the memory of 2008-2009 and some of the volatile moments of politics are the things keeping people up at night i don't think anybody is worried about a 10% drawdown snp and injury the folks you refer to are comfortable with money in the market as long as they trust the market and we have had bouts where people have not been sure. whether flash crashes. >> trusting that the fed is the wind behind the sales. >> it's hard to. it is. because any change in fed as posture will have a dramatic impact. >> and steve makes a fantastic point. back a year or so ago when they were draining liquidity was that the same thing i would pushback i would say that's when the

market looked at fundamentals and saying maybe the stocks don't deserve the valuations but that's what makes markets and that's a different conversation. >> yes it is i'm sure we will continue it but something to be mindful of is earnings if you worried about pricing going up too far too fast you have to watch the e in pe ratio that's earnings of course. we are a week away from earnings season excreting a full year lets go to bob at the stock exchange and maybe more conversation on valuation, bob and whether anybody there really questions how much more gas is in this market tank? >> that is the topic of conversation right now, bryan. god to see you again the good news is that stocks are rallying because the market is assuming the magic combination of job growth a strong consumer. friendly fed and maybe a bottom on global growth magically produces expansion of earnings in the 2020 after a flt 2019

bad news stock prices going up but. earnings estimates going up. they are slightly information coming down. now while estimates are up for q1 and q2. they've been coming down we know it's typical for analysts overestimate earnings estimates 3, 4 percentage estimates and see them lower closer to the quarter being examined but what's not typical is with it happening at market at historic highs the s&p los angeles rallied 12 peppers in the 4 quarry on expecting of earnings up prices up earnings down mean the ultimate the markets trade at is climbing fast. january 1st, 2019 remember stocks cheap 13.9 forward earnings for the s&p 500. expectations were low. we were well below the historic norm of about 16 january 1, we were at 18 today we keep going up at 18.4. that by the way is the higher end of the range in the last 20

years. so the obvious conclusion is that future stock gains are going to require the multiple to go even higher and the issue everybody talking about down here, brian, is how much more are you willing to pay for the market at this price at these prices any negative factor that reemerging is dropping the market fast what would that be well the fed retreating from the neutral position signs the skurm gets exhausted, a return to tariff wars. they are debating whether or not a really good report on jobs tomorrow, 200,000 maybe, the market expects 160 would that be enough or is that priced into the market right now it's getting very tough to move the market forward without really really better numbers than we've got already back to you. >> we have this election thing from what i understand people with very different ideas about the economy and tax rates and what else. but that's for another day bob, thank you very much. lets dive more into the concept of valuations and bring in the man they call the dean of

valuation, aswath damodaran. you've been listening to the conversation blunt. is the market as a wheel overvalued right now >> i don't think so. i think it's frothy. i think that there is a point to be made that the fed added to the froth in the last few months about if you look at what's sustaining the market, it's built on four legs the first is the cash flows from stocks are incredibly high i'm talking about dividends and buybacks still around 5% of the level of index notwithstanding where the index is today the second is i don't think this market is pricing in high growth in earnings but it's pricing in the expectation that earnings will not collapse. and the third is low interest rates. and there is a fourth factor which is mood. this is a market that seems to think -- see, i call it a half full glass market where it looks at the optimistic side of pretty much everything. and that can change overnight.

i mean we saw that happen in the last quarter of 2018 and it could happen again. i think in the first quarter of 2020 but the landmarker question to ask is should you be trying to extract yourself from stocks because you think they are overvalued and my answer is no. >> so at what point do we get overvalued we're at whatever 19 times earnings on a forward basis. is it 20 21 where is that point where with he say, okay we have to find something else to invest in bus stocks are too rich? >> the problem is with low interest rates where are you going? i mean -- i'm not sure you can go anyplace and find bargains in a world of low interest rates. i mean, real assets, financial assets, everything is being affected by low interest rates what do you think about the market today is very much a function of why i think rates are low. and i asked people to do a experiment lets assume tomorrow central banks all step back from acting.

where do you think rates will go if your answer is t-bond rates go to four or feist% you should be terrified if you think they are going to 2.5 or 43% is okay. i think the 2.5 to 3% is morically than the 4 to 5% even he though the central banks have had effect i don't think it's as large as people think. given the fact that inflation stays low. real growth globally is not that robust the u.s. doing better but the world hasn't caught up in terms of real growth. >> it's karen. let me ask you something if we were to get to 2.5 or 3% i think that would have a dramatic effect on stocks in the short-term at least with the fear of all right maybe inplacing is around, maybe it goes higher than that. what kind of pullback would you see in the stock market if we went to the 2.5 or 3% range? >> i think sits very much a function of how rates get to 2

the.5 or 3%. if it happens quickly with no fundamental reason other than higher inflation that's bad news. if it happens because the economy is doing stronger than expected it's mixed news i think it really depends on quickly it happens and what fundamentals accompany the change >> dean, when you looked at one of the shocks being a recession, how do you think about that where just like a handful of months ago where were we when we thought we were sliding off a cliff as far as growth what type of percentages because things can change pretty quickly. so your shocks were political, recession. and they were a boost in interest rates so we heard about the interest rates. but what percentages or maybe you don't do that -- but what type of percentage are you putting on a recession possible in the next year and a half or so >> i think one of the things i've noticed across the world is how companies and markets have kind of disconnected from domestic economies

i mean if you go back to 2013, 2014, while the u.s. economy was growing slowly, u.s. companies were still posting high growth in earnings. so i think that when you see a recession, unless it's a floebl recession you're not going to see the earnings consequences you might have seen 20 or 30 years ago. i think the link between how well the economy is doing and how well companies earnings are doing is weaker than it's been historically because of that reason >> professor, we gave you the name dean of valuation so it's not entirely fair. but i feel like we need to throw, crumple up the sil bus and the classes you were teaching ten years ago makes no sense any more i wish i could have attended that class i probably couldn't have been admitted to the university but i think valuations at some point are the ultimate arbiter where the market goes. when things get too cheap they are too cheap, doesn't mean that day. but i don't your saying they

matter any more. that's surprising. >> no -- that's not what i'm saying i'm saying given where rates are today, i don't see stocks as being overvalued that's why i said when you think about the market, it boils down to what you think about rates interest rates if you feel interest rates are artificially kept low by central banks which most people think they are, the question is how much lower are they than the natural rate you would say if they weren't doing what they are doing preponderate answer to that question is really what drives how much you allocate to equities and what you do about the market today. >> aswath a good discussion as well with the valuations i'm sure we might be taking your class again soon thank you very much. by the way have a great time in san diego, found pd by the germans in 1909 we have the chart the chart best in the business the fed versus the rally the orange -- i don't know what the orange is. one of those is --

>> the orange is the fed balance sheet. >> yes. >> and the blue is the s&p 500 it doesn't matter which it is. because even if you are on the radio they're basically the same line >> and, again, a point i know -- that steve is making, tim, karen, we've been talking about this since the fall. i understand the dean of valuation, respect his opinion but it's hard to argue with what you showed there and what people on the radio listening to. they're correlated basically one to one. >> well i guess, yeah and bring up the chart again here is the point, steve i'm not saying you shouldn't have market gains on that type of thing. the question i think is very simple what happens when that orange line starts to turn down. >> well -- there is no question we know it's going to happen i do think october 3rd was the low the market traded intraday it has moved 14% since it it was effectively around the time that the fed came in and talked about the mid-cycle adjustment but also talked about the repo market stress and talked about what they were going to do to counteract that,

and say that it was not necessarily a adjustment but fantastic them doing what they needed -- bottom line here is this is ephemeral. and we had the moments and if you think about the january 26 blow off high of 2018 what fueled that? extra sugar on an economy and market doing well which was the tax cut. be careful. >> good advice tim as, as always we have the song pour shoeing an. >> lepered -- the gaunt. deaf leprd is the band here we go. >> you could say there is hysteria what the mason point parton place and the union station have in common with one stock just out with earnings. plus a fistful of fast calls five different calls for the day as always. live from the nasdaq mkesiart te in times square. we're back right after this.

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saying it fell short of the anticipated range a as some of the deliveries in the bay area were delayed due to fires and power shutdowns. yes, sir yet he is optimistic about the macrofirkt from lower rates strong jobs market pan lack of supply fueling the housing market in 2020 the company witnessed strong demand for the build to order products as well the expectation really high into the report with kb home up about 68% over the last year however, in the past three months home building stocks have trailed the broader market over concerns around the economy, a pullback in first-time home homers analysts warning a tight labor market and prospect of higher rates are the key risks facing the housing sector in 2020 yet, the street still very positive on the stock. raymond james has it as the topic pointing to the 30-year fixed rate just falling below 4%, a 13 opinion week low and sun trust saps among home build he is it's a favorite name in

the space. >> good tough, seema, thank you very much. the riddle before the the mason point, parton place. all models of kb home. it's lets trade the stock. up 70% in a year if you owned it should we sell now. >> it's hard act to follow but lumber costs backed off a bit. labor still a problem. on the back of len that are is if california is improving then kb homes is improve. if you think unemployment stays where it is preponderates stay you are okay buying the homemade build zblees january 2018 this was a $39 stock. january of 2019 it was an $18 stock. it's now round tripped the entire move. you are talking about the potential for a major double top around the 39 level off the earnings now to steve ace point it's a great run. i don't see a compelling reason to run out and buy the stock and

initiate here. i think there is a pullback in store. >> good discussion there by the way, you can always watch us live on the go on the phone or tablet and the cnbc app check it out but right now we have more fast coming up here is what is on tap. >> announcer: tesla taking a breather after getting a stone's throw away from $500 a share but will the stock rev up from here plus, why china's internet stocks may be a safer bet than the fangs. we'll have those stories and more when "fast money" comes back but it can help you pick your room from the floor plan. can the hilton app help us score? you know, it's not that kind of thing, but you can score free wi-fi. can it help us win? hey, hey! we're all winners with the hilton price match guarantee, alright? man, you guys are adorable! alright, let's go lose this soccer game, come on! book with the hilton app. if you find a lower rate, we match it and give you 25% off that stay.

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the tape we have found the five most interesting. we call it what else pb, the fast five. ready it's fast. lets kick off with tesla you had two downgrades rw bared cutting to neutral. while cfa says sell the stock. of course tesla flirting with $500 a trade before backing off. the two calls, bold. >> bold, yet i think they -- one changed the price target from 325 to 525 you can downgrade all you want still sighing upside in the shares i've been outspoken about the my eye erroneous ways the last month and a half in the name now you see analysts potentially -- well i shouldn't say it come to their senses and maybe taking money off the table in the name. >> well, it's interesting that valuation seems to be coming into play here that's my cynical comment but you expected that from me on tesla where i've been wrong. >> we'll get oswald on the phone. stock number stup. amd getting the upgrade to buy at mazuho upgrading to $17 by $5

a a share. >> i understand why they did it. they think the pricing pressure from intel behind them they think market share gains in front of them we have seen a turn in the space. all that's good. i wonder, they were at neutral and 38 he when the suffolk was lower. and now 5 a with the stock i don't know, 48 where it closed today. i'm wondering it's either a bold call or the horse left the barn. >> up 70% in 90 days >> i know. i probably wouldn't make that call. >> with growth they still go the names they find growth in the same names they found growth in before can't switch it up it's almost autopilot. whenever the smoke clear clears whether it's iran issue are or any other geopolitical they go back into -- >> there are too many people buying the same stocks >> they are crowded trades that's it. >> semiconductors and f.a.n.g. and that's it. >> i think in amd case it's a phenomenal run but you are

bringing on the heart ache because you have a dynamic where the valuation doesn't make sense. i know it's not the valuation show any more. >> stock three, starbucks barclays upgrading to overth likes the global growth. now starbucks back above $90 a share. steve grasso but is it worth new money considering it's below where it was a year ago, six months ago. >> this is a stock always figures out how to survive but i don't like they are pushing into digital because i like getting the store and ordering waiting in the line. picking up those second and third and fourth other items online the stupid coffee must go you don't need i don't like the idea of delivery or your orders waiting for you in the end it seems. >> digital is driving so much revenue for them. >> it is but i think ultimately longer term they were getting people they wouldn't ordinarily get but when the people that ordinarily buy from them start using digital versus the stores think they buy less. >> you wonder. and i know -- it's a bit off topic, guy

but i notice people on twitter they don't like the app because if you go in the store you are second in line and 35 people come in ahead of you to pick up cups you know what you do, you love and the people picking up cups don't buy anything else. they don't get the 6 oh 0 cal roy scone. >> why did you tap. >> maybe they need to clean that part up. but again it's the valuation show real quick this stock close to 28 times next year's numbers on maybe 11% eps growth that's maybe a little frothy. >> nicely done there. >> by the way, the wholesale cost of coffee coming up 25% in the last couple weeks something else to watch. i like that i see what you did the deaf leprd stock four coca-cola getting outperform at credit suisse. revenue growth speeding up >> this has been a rocket and if you think about it it's a deaf leprd song but coca-cola which had been left for dead which is

actually, talking about 4% comp goegt for a company doing nothing for a long time it's interesting. but when you think about how coca-cola slowly expanded well beyond the carb natured strong drink. i'm long the stock i think you stay there. >> anybody else around the table long coca-cola. >> not for years >> why not. >> yoend, just always seemed expensive and then there was pressure and the korbin ated befrpg. >> not too late for love. >> never too late for love. >> anybody else? not there. finally rounding out the fast five shake shack, the shack raymond james initiating coverage with an underperform. the analyst says the street is, quote, overly opt michk on the stock heading into the year and next steve grasso, your take. >> i'm long the stock bought it off the dip, the recent dip. i think the call is late stocks down from $10 a any grow quicker with better margin nan

the rest of the quick serve restaurant space i'm there it seems to have stabilized around this level >> quick i'm with steve on this. this was a $40 to 110. base country the move is a 50% retracement give or take i think they are late aswell if you seal it here you might be trading long i understand valuation the show about valuations this is ridiculous. but i think the move downward in the suffolk reflects that already. >> valuation matter on a name that is growing more quickly than most of the peers >> if they miss valuation matters. if the e comes in and the pe contracts. >> i think that's what you have. they didn't show the growth last quarter and you got massively corrected. i'm with these guys after the pullback this is a stock we have been giving the benefit of the doubt in terms of the high multiple i think it's back to a place where you -- you price that in. >> listening with the stock fell today but on that cull, the analyst wasn't successful. couldn't armageddon it. >> nice. >> the retail wreck. shares of kolls bed balanced bad

appear bath. are there opportunities in the sell i don't have before that steve grasso takes the mound the next best idea why he thinks this soaring media stock has more room to run grasso and the fast pitch. watch that call. it's coming up ♪

all right welcome back to "fast money. snap snapping back in a big way. the stock jumping as much as 6% today following two upgrades both cowan and bernstein slapping out perform rating. shares up 176% in a year sounds god but remember that's really just getting snap back to the ipo price. but steve grasso says this comeback is getting start many he is at the plasma to give you his fast pitch. >> brian when you lock at snap there is a couple of things that get it going they have expanded in re ar, augmented reality. they have higher sales off of in re automated ad platform they opened up basically the sales and marketing to third party sellers. so if you look at the sales growth last couple of years, it's gone from 38% -- i'm sorry last couple of quarters, 38 to

48 to 50 most recently that's respectively in the last three-quarters they've also navigated the political landscape. and if you remember what twitter said we're not takingny politic willing ads. facebook we're not fact checking. what did they do they say we are threading the needle fact check. accept those ads and all is going to be hunky dory lets look at where it came from. when you go back, this is the ipo area here. stocks have a magnet to wherever they are ipoed $17 that's are the intro where it ipoed this is the major decline where facebook was stealing everything, bread and butter that didn't happen over here around $5. that was the low i've been long this stock from below 10 sold it at 12 reestablished the position at $oh 14

now if you are at $14 or even now at $17, the major line in the sand here bull lumbar/bear, $17 if it holds that level, you could probably see low 20s there is a bunch of analyst in the community right now that are negative on the name those are going to be converted bulls in short order with higher price targets. i'm looking for low to mid-20s in the name. a big move coming from where it is right now. >> hey, steve, fair warning i'm definitely one of those -- that's van halen i'm a bears that needs to be converted i may be but my question is, the reversal on the shares was all about use are decline and stabilizing and slight growth. do you think they have real growth ahead on the user side? because on the ad side i think it's a good space. there is scarcity value in social for someone like snap. >> on the user side, tim, good point. they were stuck at around 187 for a while. now they've blown through that

basically from 2018 to early 2019 they were stuck at 187 million. they're now at 210 million so growth is coming back there user engagement is coming back there. i think you're okay on that side of the equation. >> steve think they report february 4th is this you're playing into earnings or pull the rip cord or stay with it post. >> that's another great point. i think you want to track this most people want to buy ahead of the news if they dispinpoint the stock could come in drastically. play it into earnings pull the rip cord a couple of days before. >> no more questions now time to vote okay are you buying grasso's pitch on snap? tim we'll start with you. >> i'm afraid not going to my writing not terrible i good steve did a great job. i've been negative on the stock for reasons i think it's more of a snapback rally off the lows.

>> snap back raly. get that good >> yeah. >> this is a disappearing pass i wrote with a little snap chat you lost me at snap. i don't think i could get onboard in terms of valuation. i understand for trade that may be and the momentum might be there to do it. >> kudos to steve who dan nathan as well process. i say stay with snap user base like the take. photographs which is why snap does well. bernstein initiated $20 price target jeff jeffers a couple week ago i like it. >> you took the themes of the night made it relevant to the fast pitch everything coming together cost mick the desk has spoken. folks, now it's your turn. are you buying grasso's pitch on snap vote in our poll at cnbc "fast money. the results revealed later in the show up next. it's just snap chinese internet stocks are on

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tech since october and that is chinese big tech the k web etf tracking the space is up nearly 30% in the past three months and tradeners the options market bet the red hot run is far from over christian has the action "options action" process what are we seeing christian. >> what i think is interesting is the rally we see in the china internet names and what we're see something both -- this is hit both in the etf itself as well as the individual names so the china internet etf that's k-web has been recently seeing 11 times more call volume than put volume we're seeing a massive push going into the china names and you could see as well what we have is a bunch of the individual names names like billie. iq, t-com. these are i would call second tier china internet names. we see the option activity in your larger names such as baba

baid jd.com but what this tells me is two things the breadth is really restraining in terms of the group. it's not just the internet that people are going after it's the actual individual names. and number two, what i think is interesting is that it's also underowned we see the big push and you could see that the china internet etf right now is up 7% versus we're going to the next chart which is u.s. internet which is only up about 2, 3% here a couple of things i notice in the chart, this right now is the -- the china etf in the enumerator and u.s. internet in the dmom naturer why this is interesting is because if you look at the chart we've had the base go on a long time and now we are seeing what's known as a golden cross with a 50-day moving average crossing overt 100 day moving average and the 200 day moving average. i think the move is just getting

started. >> christian, real quick, do you think that first of all the graup of investors -- these were big hedge fund trades. these folks hunt as packs. i agree with you the entire space is breaking out. what type of players are in here or this foreign buying recognizing the trade war doesn't affect the fundamentals for the companies. >> i think it's a bit of both. i think what we see is institutional money that's been on the sidelines afraid to get into china, has been pushing in. i think it's a great time too considering that right now the -- the trade war is taking a bit of a back seat it will reemerge again but i think it's been settling down the rhetoric which has been a great time for investors to go back in. >> so just lastly just alone, the k-web etf chart as well, you could see it's doing the same thing. it's breaking over the 50-day moving average crossed the over the 100 day moving average and the 200 you have the golden cross both in the outperformance and the etf itself

i think even though the script has been really on fire the last week i think the move is just starting and i think an option trade is a great way to express the view i like going out a little bit further. rather than a lot of the option activity that we see which is short-term if you go out to the may 5 a calls you should purchase them just over $2 about 4% of the etf that's a great way to express the bullish trade going out a up can of months. >> okay looking grood christian with thank you very much tim you got to be careful, the etf it's 10 percent. don pink basically a groupen phone if if you buy the k-web you are buying four or five chinese stocks and that's controlling the etf. >> and i think that's right. but christian's point about the entire chinese internet space should not be lost on you. these are first of all iq is a $17 billion company, the youtube of china, growing seeing enormous rpu growth. that's right, guy rpu it's an animal at the end of the day these are

stocks not loved and the entire group at times when it runs it tends to overshoot. momentum is certainly the order of the day when you play in these names. >> all right good stuff there for more "options action" it's tomorrow night, 5:30 p.m. eastern time of course you see "fast money" first and then "options action." all right up next we're trying to bargain hunt a few names you might want to put in the shopping bag look at our cramer cam jim is talking chicken find out why he is hot on the tyson trade. more on "mad money" at the top of the hour. don't go anywhere, "fast money," live at the nasdaq, back after this ♪ >> announcer: "options action" is sponsored by think or swim by td ameritrade. ♪

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welcome back really a storeful of retail stocks on the move today we're bringing back the good, the bad and the ugly first to the good. that was l brand rallying 4%. investors brushing off weaker than expected holiday sales and guidance cut on to the bad, macy's tumbling halting four straight days of gains tp down 2% and downright ugly for kohls falling 7% after recording

dismal holiday numbers the retail sector struggling in the trade. but is now the perfect time to shop karen you are supposed to buy low and sell higher or buy high and sell higher any opportunities you tee see in retail. >> i'm draub to the ugly and there is kohls i think it's cheap but it should be really cheap. they lost their way. had a lot of -- they had hoped to get momentum back with amazon they have had a terrible fourth quarter or third and fourth quarter. it should be cheap so i would rather sort of head to the expensive to what's working than try to buy cheap and having it just become cheaper. "fast money," i like to look at the name target which isn't. >> everybody loves target. >> but they're killing it. right? they are executing over and over again. >> what's our theme of the show? valuation. >> valuation. >> good job, class. >> target at some point the valuation be somebody -- no where is oswald. >> he would say the valuation

isn't crazy. it's -- where rates are here. >> shopping. >> i like target i think you know i want to be where the momentum is not hoping kohls can turn it around. >> i hear what karen is saying and i agree with what karen is saying if i wanted to go bargain hunting i would go to macy's and try to play it there but i maid it with a couple of other ones should i give mine now. >> do it now. >> time to do it. >> i like the performers like ross stars tj maxx. they benefit from everyone over ordering and high inventory levels those worked i'm sticking with those and costco for good measure. renewal rates off the chart. comp december sales up 9%. can't go wrong with any of those three. >> knows -- a lot of people don't realize the ross appear tjx are beneficiaries of other paying they buy the inventory on 10 cents on the dollar sell for discount but those stocks have been -- look at a 10-year chart

of tjx. >> one man's pleasure another pain that's a mollie hatchet song might be a theme tomorrow but in terms of what i'm looking for a lot of people said let it go in terms of master card and visa but i mean manafort card and visa continue to perform now master card close to 35 times next year's number is absolutely getting expensive but into earnings a in a couple of weeks you own ma and l letter v. >> back to good bad and ugly np nike outperforms the north american comps clearly growing both in terms of direct to consumer. the bad is home depot a bad investment the last six months and flat to sideways but i think that analyst day where they guided down is something that was very, very overly conservative and i think they are investments in technology are working finally ugly is alta so many structural headwinds in cosmetics but they have gotten into skrk and bath wear. i think it makes sense in terms

of gpm accretion going forward that's the -- that's the play where it's out of favor and i do think there is an opportunity there. >> good stuff there. karen still likes target as well all right up next, it's your wee cknatres 'rba right after this. - [narrator] at southern new hampshire university,

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. all right. time now to find out if you all at home or wherever you are bought grasso's fast pitch saying to own shares of snap looks like you get ghosted, steve. >> strikeout on the snap fast pitch apparently. >> listen to that. can you hear that? that's the leprd. >> do we have the rates or the percentage. >> that would be the best song by the way. >> 51/49. >> looks big are than that we don't know either way didn't buy it final trades lets go around the horn tim seymour. >> steve did not die hard. the hunter go to nike. world class company the ascent you can stay on it. >> karen. >> world class company i think it was your bad. >> bad home depot my good. i think -- i'm very optimistic on their ability to increase the numbers. i think you were right they are sandbagging a bit. >> heim sticking with snap a great winner for me on a percentage basis and i think it goes higher. >> i like you hang on. >> hanging on.

>> as he should he has done a nice job with that a lot of people have been saying armageddon it for lyft and uber, the last dep leprd reference of evening. but lyft since october done well. >> great show today. see you tomorrow tomorrow night "mad money" with jim begins. "mad money" starts now hey, i am jim cramer i am trying to make you some money. my job is not just to entertain you but to teach you call me or tweet me @jimcramer today was all about momentum that's why even though we did not have much in the way of