ceremonial than actual in the details, it's a big step >> it certainly is and they are expected to celebrate it on wednesday. >> kayla, thanks so much for that the celebration for kayla too after reporting all the finer details of it over the last year or so. we are out of time here. that does it for "closing bell. bell..". >> "fast money" begins now. >> thanks very much. live from the nasdaq market site over looking just the absolutely spotless people free times square this is "fast money. i'm brian sullivan your traders on the devg tim seymour brian kelly, steve grasso and guy adami tonight adele marking a milestone hitting 29,000 we hit 30 k by the ended of the month we make bull and bear case carter says it's the perfect time to charge into the financial stock. he will tell you which later a beyond belief week the incredible run this week for fake meat.

maybe real profits hi, everybody and welcome. another day, you guess to do, another record high for stocks yes, the dow ended lower but earlier in the session it broke above 29,000 for the first time ever. everybody, though seems to be buying into the big caps with you will a the money going to the massives, small caps are all but ignored. lower on the year. s in random but interesting. the russell 2000 is not hit a new record high since mid-2018 at some point they stop the music, guy adami when they do tell us about the small caps. >> it was actually august of 2018, the iwm measuring the small caps topped at 174 frankly haven't gotten anywhere close. recently we breached 165 but still significantly off the all-time highs with the s&p now making all-time highs. i do think that's problematic. you can make any number of arguments. maybe the russell is more emblematic of the real economy

i don't know butly say, i happen to believe the russell could lead the broader market by a couple of months if the iwm is rolling over here i think that's potentially problematic for the broad are problematic. >> how problematic. >> how problematic that's a great question. anywhere from 10% to 15% is not out of the realm of possibility. given the back drop. we talked it last night quickly. 20 metrics or valuations depending what you look at we haven't seen on the overbought side in terms of broader market. >> it's interesting guy says it could be a leading indicator if you look at the components of the russell it's 10% banks and reits. and the banks are small cap regional banks that correspond with the yield curve if you look at kre, the small cap regional etf and overlay that on the 2-10 spread it's a prsk match as was as the yield curve steepened they went up but

haven't hit new highs. if you get a flattening yield curve and the russell rolls over because of theregional banks that could be the leading indicator. later lets call it end of first quarter, second quarter that might be the leading indicator that things aren't all. >> why can't it be as esz that the market traded off of big cap tech, macrostories, the same playbook from 2010 to 2018 and everyone said this is what worked where i stay in. and maybe the economy isn't to great. why do i want to go to iwm. >> i think you're right, steve certainly when you look at where investable market cap and big hedge hundred dollars and paefs and etfs goes. the metaphor when you music stops guy gets in. make it a metaphor the masuaku stopped for mall caps in january of 2018. that was the blow off top which was really stopped which the trade war. small caps need high growth environment. if you look at the

outperformance of the small caps it was really during the first phases of the trump presidency and then also when you got the tax dynamics which were supposedly fueling the economy it's when we had a more aggressive fed in the picture. since the fed pivoted kind of strange, right small caps underperforming the s&p by 12.5% on the one-year basis and 18% on a 2-year basis. >> at the same time trade has gotten -- finish the question. >> here is the thing, tim. they exist in the same economy mostly with the exception of the googles of the world that created their own economy in ways small caps, mid-caps large caps exist in the united states we can say the big caps have the international component. the international markets aren't as good. either small caps are left for dead because people are buying all the same etfs, or there is an economic story we are missing here. >> but i think that's it while the kme economy is not going in recession by the way a lot of people missed that one and said that's where we were going. we are not growing at 3%

we're struggle to grow at 2% and maybe subthat. i think the small caps are ultimately emblem mattic of the real economy the small business has a lot of headwinds look at labor force, taxation, real estate, commercial real estate the small business owner right now is in a very difficult place. and i think. >> it's i think it's a prd where you started out where the etf is going. where the money is going when people invest in the marketplace they shoot for the qs, the spiders. if that dissipated they got out of the qs and out the spyders and back what they are in. >> are they whiching them because of the economic story or because everybody else is buying bee gets buying. >> the same six stocks or eight times. >> all the time. >> we talked about today i'm sorry to get work up on this on a friday guy you know the top five sfoks in the s&p 500 are 17.5% of the

index the other 594 five stocks run the show period. >> you sound rather exercised on this. >> neil purt passed away before the stho he. >> for the folks at home tim knows being a great drum are neil arguably the second greatest drummer in the history of rock 'n' roll. >> by the name it's number one it's a sad day for rock 'n' roll. >> the drummer from rush passed away. >> you get my point. everybody is piling in to the same big cap stocks. five stocks 17% of the s&p 500 we have never had the topee heavy imbalance. >> and i think your comment tsh shall did i think you find that problematic. as do i. but that's quite frankly true now -- steve can speak to this, the last six to nine months and the market hasn't had a problem with it. it's not a story until it is become to the earlier comment, there are a number of different metrics 20 to be exact flashing red in historic ways yet the market doesn't seem to care.

>> all right there was sort of the fundamental analysis but lets check in. the chart master says the problems could be here to stay carter worth over at the plasma to break it down how does it look from a charter perspective. >> it's index construction we know the weighings in financials and tech are so different in small versus large cap that that's essentially when one bets on one versus the other. making a bet on where one wants to be overweight or underth hear is the russell 2000 on top and the relatively performance to s&p on the bottom, right however you want to explain it we know this is kinning to do this. as in does this. right. so is that because of tech and the big names driving it sure but what is fascinating is it's not new. this is now a 2-year chart same chinning first thing to point out it's yet to make a new high tp tim referred to that yet all of this so-called

advance, there is no alpha meaning the choice immediate to be here versus here not a winner pull it back even further. now look at a 5-year chart look even longer in fact what we know is that this is right now making 10-year relative lows. one could say we made all the money in the russell but could have done better in the other index, the bigger index. and here is going back the 15 years. we are basically plumbing 15-year relative lows and has a lot to do with the weighting in financials and tech. the chart itself, here is the high yet to make that high. and i suspect that we are at risk of one of two things. frankly maybe even putting in something sf a double top or at least getting to the high and stuck for a long time i think one wants to remain underth iwm. >> lets trade this here. >> good man. >> pretty clear double top on

the iwm. but sometimes you want to buy when it's looking the bleakest anybody taking a swim at iwm orp small caps. >> i'll tell you this get back to the week and what next week is today especially a payroll number where if anything it's not rapid. but there is no denying the labor market is softening .. the carrier over year trends are. financials reporting next week he talked about the weigh egtwaying of financial and tech. financials are earning stripes again. when you you look at bank earnings next week i think what we see or hear from the companies not great on the earnings trend and a market that wants to own them for weighting reasons that they are probably under wgt. >> carter you might have an answer will the underperformance of the russell correct itself by the s&p 500 selling off? will that be ou the priebus performance levels out. >> or does the s&p succumb and the small cap get worse?

back to the construction i'll troo i to answer i don't think i have the answer. but basically betting on tech. the weighting in the russell 2000 in 13 is in tech. weighing in the the russell 18 in the financials. you're saying if i want to be in small cap i'm betting against tech and higher interest rates because the regional banks will need that in order to. and my hufrmg is i don't think interest rates. >> won't that hurt the reits making up 10%. >> it's a bit of that. but basically essentially what you implied in the conversation before i jumped on it's dependent on a handful of supercap names ultimately that's the risk for the market. >> good discussion on the iwm watch small caps lets move on from the small to the big week ahead for your money. a lot on the karltd that could shake things up. number one with, you got the start of earnings season with the big banks.

jp morgan chase and others out next we can. the expected signing of the phase 1 trade deal and a bunch a number of fed speeches, all in the coming week. how should you position yourself forward, tim for the big week. >> the fed speak taking what i heard this week is that you've got a fed that's playing the game they're not changing their course if anything they are going to continue to they have to billion out pressures and stretches in the repo market. looking to financials this is a case where valuations i realize relative to themselves have certainly had a big move but relative to i think some of their certainly pree crisis levels i think valuations in banks make decent sense sense on a price to book level maybe not much but on earning ratio maybe you stay the course. >> the way i look at books look at the xlf they stapd out the larnl cap bank names tapped out in '08 same level in 2018 now we are seeing them dance arndt

that what was the major catalyst, deregular and kaks cuts for banks. even if trump is re-elected. he has divided congress. things are not lacking as good as ones were if he loses it's terrible. why put money there? >> i think that's the whole point. >> you're betting on the yield curve. >> you're betting op the first half of the year what you have to look at the banks when you think about that you think about the investment banking going on. after the summer there will be little investment banking into the election year. you have this earnings season and maybe one more quarter to buy these banks or at least for these banks to make new highs. if they don't make new highs on this earnings season i think you have real problems. >> if you look inside the big banks, the bank guy worked for goldman been you look at the numbers it's fic weak. fixed income and trading and commodities. i wonder, fie with -- we had a

boisterous fourth quarter could see we the trading revenues. >> i don't think so because the risk associatewood making the numbers is now gone. i mean these banks do not take risk at all. although goldman the stock is has done extraordinarily well, the risk profile is gone at least five years ago if not longer quickly in terms of what else next week. don't underestimate the importance of the health care conference and look at a name like eli lilly stood op a lous du tape up another couple% making all-time highs. although paemgs are clearly the most important i think health care which has been underloved has been performing well the last few months. >> what was interesting you did an interview and you had meg on talking about the performance during the health care conference every other year except for election years 2006 they underperformed the market now we're goog into another election year. lets see if neck do that because you're going with to have everyone throws maeft hit nds at the seconder see it it defies the laws of history.

>> quickly on bank chart, the breakout in the financials that's the win this is a 10-year basing process of going through the balance sheets ands rerating they just started the entire group did almost nothing if you look at money krerpt franchising you have to throw in bank of america at this point and citi is the value play. >> coming up, the big week for fake meat, beyond meat having the best week since july and then guys. >> what you got. >> a mystery chart it's a stock that ipoed. >> we can do that. >> the stock ipoed in 1995 here is the hint its company name shares the name of a u.s. state capitol. okay as we head out. >> juneau. >> no. you can always catch the slide -- on the cnbc app we are live from times square. >> credit for an answer.

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rally 25% just since monday. mcdonald's testing its product to martha stewart partnering with subway to launch beyond meatball subs. bb.k. what's your take on beyond meat, 50% below the all-time highs. >> it's interesting. beyond meat consolidated just talking about price action in the way it traded. consolidated for a linc period of time. during that period of time if you look at short interest, it was increasing to a record high. short interest at this point is about 21% of the float that's the highest it's been you have a consolidation and a breakout with a lot of shorts. i think a lot of this moved this week was short covering. yeah there was some catalyst but probably at least in my mind not enough for this type of a rally. >> you had both catalysts. you had impossible burger not having the supply capacity to further its partnership with mcdonald's and then what you had introduce to do to from 28 or whatever it was to 58 stores, in canada. but when you look at where it's

come from, this is a dramatic story. it should be bouncing a lot more in my opinion with a short interest of 25%. off of this low. these burgers as we've said from the beginning are not healthier for you. i'm not really sure what the end game is. i just don't believe. >> a lot of competition as well. i wonder, guy adami if you own beyond meat or you want to buy it or did buy it are you buying it because you believe in the fundamental long-term story or simply looking to trade a stock. >> it's a greater fool's theory at this point. to steve's point it should have been up more than it is. traded four times normal volume times today. more than maybe. tip dle closed 23 million shares today. a lot of the shorts b.k. mentioned probably squeezed today. i sampled one of these burgers granted i don't have the strongest constitution of all-time but i will tell that you it was not a pleasant experience. >> we actually we were very concerned for you. >> you did not like it. >> a year or so later.

>> look at the reaction. >> that was the beyond. >> impossible -- the impossible burger is better. >> is it it. >> it's a very different burger just saying from experience. >> anyway. >> but back to -- forget guy's indigesten or worse lets talk about the fundamentals of the company and it makes no sense. we talked about the competitive landscape some of the biggest food companies in the world. >> maybe beyond meat is the tesla of the food. the balance sheet doesn't matter you believe in the long-term zbloomt ending cow's exist. >> the people understand it does matter i think that's where we are. i wouldn't touch it. >> okay will not touch it apparently guy is not touching a burger >> never again. >> i think the video clip might have unsettled you. >> you have to say it jest good thing it's a half hour show tonight or we'd have a probably at 5:45. >> more of beyond meat's

website. head over to the website here is what else we have coming up on "fast". >> we have a mystery stock trading at the highest level since the ipo in 195 a we'll tell what you it is. and later on "options action," we're launching into earnings season with a lack at delta. what traders say you should expect when the airline reports. hth and a lot more this hour after the break find the best instructors in the world, and tie it all together with a world-class software experience. we ended up creating, as you all know, so much more. peloton is truly a category of one and we're just getting started. now, let's do this. together, we are going further than we ever thought possible.

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before pulling back to finish in the red. 15 analyst cover the stock only five with buys on ten holds or nurt neutrals and dover corporation. by the way, b.k. got did with the capital dover. >> i went through all the states from top to bottom you told me east coast maine and new hampshire. >> capital of vt is what. >> montpelier. >> uvm man. >> it's where you went to school. >> i didn't know that. >> so much. >> what's the capital of west mexico. >> oh, the mystery chart sno. >> your chart of the week. guy you flag something in the gold space what is it. >> why don't we just run the graphic here and i'll show you what's going on in new month mining the last six months here is the stock with a 30 handle brushing up against levels last seen in august of 2016 i'll say again a lot of people

think gold made a blow off top i think the gold market tells a story. the u.s. dollar weakens in 2020. finally all the non-sense out of central banks globally is globally is catching up and manifests in the goltd market. new month mining gets you done sir. >> if you look at mining companies in general, a lack of investment in cap exand op exmeans stabilization. this is a 5-year process the core commodities including led zing and copper which they also produce. >> if you trade the area you don't buy the metal because the miners will outperform 239 5 whatever the underlying metal douse because they control production and capacity. if you are willing to be a gold bug and there is plenty out there. buy the mine esper don't buy the gold. >> i'm tying it together if you buy the miners you buy the jupier miners because wlaf tim said they haven't invested a lot. you go out and buy the mine.

the junior mine esper are the buyouts candidates. >> the mine are index same place it was four years ago. >> goes anywhere. >> lets go somewhere around the torn with final trades. >> tim seymour. >> i'm figuring out why the dollar index is sideways but into bank earnings next week bank of america is probably the best combination of value and momentum in terms of core business including lending which i think is something that continues to have resurgence boc. >> good earnings next woke people might think the economy is better. buy tbt for higher yields on the short-term. >> betting on bonds. >> or get betting against bonds. >> but in the bond market. >> something going on here avis budge this is up 50% since august i think you hear rumors about them going private who knows. something is going on. car car. >> are you a college football. >> i am and clemson will cover. >> clemson. >> next year on saturday's

university of houston you might see a young man playing quarterback who happens here with his grandma and dad watch for him. also, keep an eye out for new month mining we mentioned a few minutes ago. >> to our friend hello to you "options action" is next wow dad, do you think you overdid it maybe? i don't think so... what do you think, peanut? nope! honey, do you think we overdid it? overdid what? see? we don't think so, son. technically, grandparents can't overdo it. it's impossible. well planned, well invested, well protected. voya. be confident to and through retirement.

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well happy friday, "options action" fans we have as usual a big show lined up tonight here is what's on deck ♪ >> announcer: all aboard carter worth has of an express trade to catch up to the financial sector xlf and -- ♪ >> it's greek to me but strategy to you tony zhang checking out the delta on delta airlines ahead of the quarterly next