of index performances around the world. >> coming at a time when a lot where hospitalizations seemed to have rolled over maybe we're past the intense peak maybe that's going to be day to day and tracking it and charting i. >> we are out of time. thanks for watching. have a great weekend fast money starts right now. >> i'm melissa lee and this is fast money steve grasso, brian kelly, jeff mills and nadine, ceo of sole steen capital. the chart master is out with a big warning on the banks carter worth says it's time to save the financial straight ahead plus volunteer popping and the stock breaking out today one of our advisors say it's just getting started five stocks gaining nearly a fifth in value in five days. we'll bring you the names. we start with a look at the big wave of bank earnings. it is officially earnings season and it's off to a rocky start.

wells fargo, j.p. morgan, citi posting in the red citi mix, wells fargo, that was a miss bank of america, goldman sachs on to report next week given today's action, is there more pain coming for the financials let's use the example of j.p. morgan it was a good quarter. the stock was up 36% in the three months going into the quarter, though. is that the problem with the banks at this point? >> yeah. i think that's clearly the problem. there's nothing wrong with their erpgs, necessarily, but the stock that is run up so much before the season. i think any type of blemish is going to drive the price lower we're still in this value trade. i do like the banks for the totality of 2021, but i think near term there are some concerns one of the rate side -- the positioning has unwound a little bit. you had net short positioning and long bonds really extreme

later in the fall, so i think if that move to the other side of the boat at all, if you see any issues with stimulus being rolled out or the vaccine or economic data in general, that position change could rate some. with banks 40% above their 200-day moving average, any kuip issue, with rates, with earnings, that can drive the prices lower carr are probably talk about this later you're bumping up against the k ve that was resistance for pretty much all of 2019 we'll see what happens there i will use that level for momentum upward on downward. in at one time, i think fundamentals are supportive. generally speaking the street is negative on bank fundamental you look at the 24 s&p groups, banks have the lowest of buy ratings. i think it's a decent environment for credit you have dividends and buy backs starting back up we're still many that trade but i think you could have some

turmoil in in the near term. >> jamie diamond was talking about how there was near term significant uncertainty when it comes to the economy however by summer he thinks things will turn around significantly. how do you explain that? >> they saw they had lopes up crease by 15 billion and deposits by 582 billion. if you look at pnc, one of the largest banks, they only have deposits of 350 billion. i like this type of trade in the news today and get into something like j.p. morgan you're going to see the deposits go up. if there's any type of lopes going out to corporate or consumers, these things are going to pop higher, so i have good news. >> let's hope so we saw retail sales disappointing for the month of december, rericed downwards for the month of november. do you like the banks here

>> i think -- well, i think both nadine and mr. mills just described a very bullish or a bullish scenario i think jeff was sort of let's wait and see, it will be a little rocky but people are not used to being able to buy the banks since the beginning of the trump administration, and i think that's because they're not in a rising rate environment. rates have gone up, melissa, let's look at the break-evens. they're at a two-year high if you look at the two-year, ten-year spread, that's widened out by about 150% since the august bottom on that spread but getting back to the technicals as jeff said, the xlf, i'll pick that index, the xlf is butting up against the 31 level. that's been resisting since in 2007, in 2018, and in 2020, so

that could be a little bit of a blip, but i think we're actually going to break through it this time the banks have not seen a rising rate environment, nor have investors. that is the el fapt in the room, the 800 point gorilla in the room however you want to give the analogy to it. rates are the biggest thing that will affect rates. j.p. morgan made more money in the fourth quarter than it ever has before let's focus on profitability let's focus on a rising rate environment. i think banks, this will be a blip and they'll get right back on the horse and move higher >> let's say, though, that rates don't really rise beyond what they've achieved so far this year i'm curious because when j.p. morgan -- we're using j.p. morgan as an example here. it started the run in october, which is when all the bank stocks started their runs, and back at the end of the year, rates were only at, what, .97% or so, so it is a different

environment here so do we need a continued steepening of the yield curve or can we have the yield curve where it has been over the past two months on average, let's say, in order for banks to continue their run >> well, so i think that if you have a yield curve that stays right where it is, then banks should do ok but i think the chances of the yield curve staying as steep as it is right now are lower, so i mean, i'm talking about a short to medium-term trade let's talk about three weeks to three months that's what i mean by that what's going to happen we've had the rate rise for whatever it is right now now we're looking at potentially unemployment getting worse, potentially higher unemployment claims j.p. morgan told you today, listen, the economy's going to be weak here for a bit so what is left in thisback trade? everything has been priced in. as you pointed out, it's been trading up since october so at the very least, i think you get some period of pullback

and then the question becomes over the next three weeks to three months, is how well does the economy respond, do we get enough vaccines out, does the uk, the south african, the brazilian strain cause more shutdown these are all unknowns and with stocks, banks, that have already ripped up so much and as carter worth will tell you likely that at a resistance level, why would you buy the banks here it makes no sense. >> if you are a believer that yields won't go too much higher than what we've seen so far in this young year, nadine, we shouldn't bother with things, should we? and if you're going to -- entirely bet on the treasury mark, bet on treasuries, no thanks >> we've got to bet on both. i think number one, yields are going higher even if you thought they were flat, you have to buy these before yields are rising again once it's gone up and there's perfect information about the economy reopening and the path

of the rollout of the vaccines, it's too late. so in mine mind, it's -- underowned here in the u.s. and in asia. we have plays along the world in financials at the same time, i agree with you, melissa, you can short the tlt, short the other way, make money both sides of those trades i'm more of a believer on the opposite side. >> the chart master isn't too surprised by today's bank action he seize more down side ahead. carter is here to break it down. carter, what do you see? >> well, you guys sure covered it and well. talking about levels and the reasons why. let's look at three etfs, all financial and they're highly correlated and yet their constituents are so different, it begs the question why are they all behaving the same xlf, the first one, chart and grasso and others spoke of, were back to a former high. it's not about whether it goes

higher it's the principle of when you first get back to well-defined peak, what typically happens, whether it's a semi stock, gold, of a bank etf. what typically happens is you back away rather than breaking out. there's a reason for that. because the people who lost money from december, have had their money returned to them so it's what overhead supply is. you've returned to a difficult level. second chart, also xlf again, this is 66 stocks, but berkshire and j.p. morgan are 25% white. i've drawn the lines a different way to an oh tate our highlight. it has stopped to the penny at that level third chart, it's also the xlf, the big one, the sector, automatic financials from insurance to banks to property, casualty it is a double top this is where you back away. now, is backing and filling the same as backing away yes, because what are they both? they're not higher so whether you do back away

substantially, you backed away a bit today or you back and film, it's the principle that you've returned to a different level. two more this is the cre, the k re is 130 stocks it's regionalbacks there's no j.p. morgan, no berkshire, yet it's the exact same pattern the biggest waiting here is 4% 25% in two stocks. yet it's the same principle. you get to a former high before you can exceed a high you typically will contend with it final chart. this is an etf, invest of kdw index. it's weighted to the five big names, 8% each, wells, citi, j.p. morgan, u.s. bancorp. it's the same chart. the point is it buy the rumor, sell the news? sometimes it's just about a technical level. not about the price to book. not about interest rates we return to a different level

the banks found difficulty today. >> all right carter, thank you. we'll see you in a little bit for options action in the meantime, grasso, i'll go to you since you are our resident technical analyst here. what did you make of the charts and are there those specific individual names within the xlf or the k re? >> yeah. so everything that carter said, i agree with a hundred pirz other than the fact that i think we backed away a couple of times. if you extend that chart out on the xlf, particularly you can look back to 2007. it makes it a double top it could be a triple or quadruple top and those don't exist in technical analysis. when you look at those things, i think that people, as i said before, worried about the market backing off, worried about rates backing off, worried about the banks, but the truth is, the

yield curve is the most important thing for the banks. let's not forget this, melissa the growth to value switch, rotation, whatever you wane to call it. the banks are in the bull's-eye of that. so if that gains even more traction, which it will, if inflation starts to rise even more, we've seen the stimulus, there will be more, inflation will rise even more from now, these banks will move higher last point j.p. morgan is above the precovid level now, the other banks are having some trouble getting there but if there is one to bank on -- pardon the pun -- j.p. morgan would be that one i think it's always a crowd faith, crowd pleaser and everyone including our own karen finerman loves j.p. morgan >> you're stating that pun you say it for 12 minutes, but you finally got it out there, grasso, and nobody laughed

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welcome back check out the monster moves from bed, bad & beyond just this week since it's friday and we're gearing up for a long weekend, we thought it would be a great-time to play a little game of -- >> trading or frayed. >> i know the spence is killing you on that. trade it or fade it. move over baseball this is america's favorite pastime as of right now. let's kick things off with bed bath & beyond. brian kelly, trade it or fade it >> so typically, assets up, that's up this much, bk wants to fade it but in this case i'll actually trade i i'll tell i why. it's not necessarily because the fundamentals are so good been this you've got a couple of different things going on. you've got number one they've hired a new marking thing. the bad news is in it. number three, you have a short

squeeze potential in this. something that jim cramer mentioned. between those three things you don't have to look through any of the fundamentals and say we have bad news in the sense of earnings downgrade, we have a short squeeze coming makes bk want to bikers so it's a trade. >> that short squeeze thing, we saw the power to short squeeze in game stop this week what's your fake on bed bad & beyond >> there's no doubt. that is in play. i agree with bk in a lot of areas, sales are improving i think it's still reliant on foot traffic management has come in and they've done some good things. that's ositive overall, revenue still remains under pleasure i think the one thing that -- you've had margin expansion, because you've had this product mix where people are buying a hot of higher price goods and

home furnishing or home cooking products, so i wonder when the momentum from the pandemic starts to fade and that product mix goes back to what might be considered normal, whether you have a little bit of margin compression, that's what concerns me, so for me it's a fade here. >> let's move to virgin galactic that was up 21% since monday you've been on this one for a long time. at this point given the run, trade it or fade it? >> i'm still a trade it on this one. i'm still involved i bought this stock at around $15. i bought it in the teenager stage of its life. definitely this week was about arc investments and about the etf. it's urgent orbit. i misspoke we'll have to wait for virgin galactic until sometime in february when that test light comes and it is successful -- and it will be, i have no doubt of that -- this stock will rip and eclipse the most recent highs.

that will be in the 40s. i'm still a trade it on this one. >> steve, you know, i don't disagree with you on the maybe intermediate term, but our technicals are saying it's two and a half down side to up side, so for us, on the short term basis we're at fade it but i got agree with you on ps, management, positive but right now in terms of valuation, i would love something like orsed, siemens, something like that. so i'm going to fade it. >> way fare. that was up 16% this week. trade it or fade it. jeff >> yeah. for me, this is going to be a trade. i think that they have a lot of good things going on they've actually overtaken amazon as the biggest e-commerce site for furniture they've done a hot of heavy investment in technology, logistics. way fair is stlar to bed bad & beyond in that the pandemic will

subvied but they don't have the same product mix issue i think they're pretty well positioned for what i see as a more permanent shift in the way people shop for home turn irings i know unemployment is still an issue. you've had spending come down, incomes come up. so i think there's a lot of dry powder, considering the additional stimulus likely coming down the pike i'm going to trade it here >> melissa, i hate to be the negative one but i disagree with jeff i'm a fade it. they have been the beneficiary during the pandemic. but what we see is a lot of the competition has taken their eyes off the ball when they start focussing on the eight million sku's they've got, they announced $15 minimum wage. my heart says i love that. i think it's good for the full time, the part time, the seasonal workers, but when you talk about margins, that's not

that great for the margins and what you're looking for to be accelerating on the top line and accelerating on the bottom line. not going to happen. >> sizzling, almost 19% higher this week. wrien kelly, trade it or fade it >> oh, it's definitely a trade on that taco bell news, i mean, come on. stock was up 15% or so just on the fact that taco bell is going to be doing a partnership with them so i actually really like this fake meat space. not only do i like fake metal. i'm more of an impossible burger guy but that's a different thing for another show they're expanding. they just opened a brand-new headquarters in l.a., or signed a lease for that the company is seeing the demand pick up. i think you're going to see it in the stock >> i think you got a -- >> it's almost dinner time, but i will not be eating fake meat i just can't get behind the valuation. i think for a while, restaurant

demand's probably going to be a head wind. i think the positives is there's a lot of room for expansion. i think about 80% of the revenues in the u.s. they're going to need to rapidly expand internationally to justify the valuation in terms of the current price i think that those are some of the potential positives. but i think a lot has to go right where it is right now, so it's a fade for me >> true peter lynch sort of model of investment with beyond metal. coming up, the headline that send shares popping today. what it is and why one of our traders says you don't want to miss out we're pairing your pweosrful all that and more when fast money returns. because it's just easy. bundling for example. you've got car insurance here. and home insurance here. why not... schuuuuzp... put them together. save even more. some things are better together. like um... tea and crumpets. but you wouldn't bundle just anything. like, say... a porcupine in a balloon factory.

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welcome back to fast money check out shares of palantir half a million shares of the stock. up more than 260% since the market debut at the end of september. what do you think, jeff? >> jyeah 2021 revenues are supposed to g grow over 30%. i think they're going to be looking gor growth outside your usual suspects, your usual tech, your usual fang name a high quality product the switching costs are high, so it is very sticky. i just think the question is what price you get in. if you look at the chart, it's failed at that 2829 level about three times. i would use that level again as an indication of momentum upward or downward. i think there are some stumbling blocks over the next six to

eight months you have the six month lock up expiring that could affect your contract. it's a long term buy for me. i think you might be able to get it at a lower price. >> quickly, is this one of those top drawer kind of stocks, leave it alone for a long time, revisit it down the road >> yeah. a top shelf stock, absolutely. i think knowing the ovechkin genius of kathywood, i think that's what she's thinking as well if you're going to buy this, understand what the time frame is it's a long term buy put it on the top shelf. you're going to be happy with it >> time to go around the horn. jeff mills >> it's alumina. they are the global leader of dna sequencing >> nadine. >> go with equinex on the positive side, it's a

company that's global. we've been an owner since 2013 >> steve >> bft, the most excited i've been about a stock in a long time i'm looking for a triple and i think i'm going to get it. >> wow triple >> i've learned two things in my career on wall street. don't piatt the fed and don't ignore what carter worth has to say. i think the fed keeps prices low. if they say sell, i do, too. >> don't move. we've got huge options action up next

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on computers, mobile devices, servers and the cloud. join the world's leading companies in our mission to defend. cybereason. end cyber attacks. from endpoints to everywhere. happy friday options actions fans we've got another great show first, we'll get some actual utility out of utilities we'll could some oil exploration to see if you can jen rates some reserves and lessons to take away from tesla and why we continue to get a charge out of general motors i'm joined by carter, mike and tony let's get right to it. utility. noun, state of being useful. profitable or beneficial carter worth explains how the economist sector can be all of that and more. right now,