tv Fast Money CNBC December 23, 2021 5:00pm-6:00pm EST
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up some 450% or so kate rooney, thank you we finished very strong for the third day in a row s&p 500 closed at a record high, believe it or not, the nasdaq closing up almost 1% next week is a light week, but we do have data. it's the final trading week of the year we'll get housing data have a happy holidays for everyone celebrating merry christmas. "fast money" begins now. tonight on "fast money," we are diving into the metaverse in real life. irl, and it's not just the roblox and former facebooks making waves we have the inside scoop on the virtual plays that can play you actual money casino tooks for the win americans are traveling, spending money like crazy. some develops out of china that
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are helping the stocks move higher as well contessa "big money" brewer is here it wouldn't be the holidays without a "fast money's" fade it or trade it. it's wrap it our scrap it. it i am in tonight for melissa le lee. welcome, everybody we begin with another kind of big win. that's a new record high for the s&p 500, the index plowing ahead. it is now up more than 4% from the intraday low on monday when all the headlines were scream being omicron, we're doomed, now we're up four days, three days later, in fact, another report if you're counting at home, the 68th record closing for the s&p
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500 this year, secondmost of all time all at least major indexes posting three straight gains tim seymour, what has changed? what's going on? >> well. remember we're through a fed meeting. we've gotten through some of the uncertainty. we have dealt with the build back better bust we've had the dynamic of omicron, in fact some of the trends are around reopening stock exchange, hospitality, travel, et cetera. we floe about the seasonals. i think we're getting back to levels we started with the santa claus rally was from the october low to, you know, sense that i think some of the hangover from the omicron day
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after thanksgiving, but the dynamic really i think a lot of it has been fed. we've gotten through a fed meeting. we have an understanding where the fed is predisposed at this point. in that sense, you've taken some of it out of the way if you look at some of the markets outperforming, you are seeing cyclical stuff working, you are seeing the comfort of megacap tech, and as we've seed many times over the last two, three, four months, below the surface it's the pain you've seen across a number of subsectors, and that's the stuff that is getting some rotation here you can argue we can have a better market without the index doing much that's what today felt like to me today it's been a big, big move. i think that the health of the market, though is what i'm seeing below the surface
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>> let's dive below more under the surface. steve grasso, a lot of the stocks, to tim ace point are the fin trades here. the restaurant stocks, the hotel stocks, the airline stocks the market is saying that they're sort of putting cohave i and omicron, whatever the next strain, in the rear-view mirror. is that the right move >> i think that is the right move i've seen you tweet about this, and you've mentioned this. what is impressive, brian, is that airports and security checks at airports have processed more people than before the actual pandemic happened so this time in december 2019, compared to right now, it seems like people are shrugging this off, figuring out how to travel,
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so i do believe you're going to see energy, material, the reopening stocks rally again, but also, to tim's point, i think you framed it nicely when you looked back to 2020, when we bottomed, the fed said they were going to -- we were worried about virus vaccines, and we weren't even thinking about rates. now we're worried about rates, but i don't think there's going to be an overreach i think chairman pow had to say what he had to say for the market, but i don't believe that doc plots will be nearly as aggressive as most people think they should be i think he has the card to pull that that variant or the next variant or the variant after that will keep a lid on his side of policy, if at all, limiting growth at all, but i don't think you're going to see that
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i think what you're going to see is all those back-to-work stocks really rally, but the key is you're going to see those large-cap tech names which are both value and growth still performing, keep the market up >> bonawyn, i was in newark airport last night, and it was bonkers. i referenced the restaurants as well, but we have seen this before we have seen these stocks outperform retail investors jump in, we get a nasty headline, and we fall back would you be comfortable buying some of those types of names, dining, hotels, airlines, et cetera s. >> yeah, you have to be comfortable.
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at the end of the day, we're all in this game to invest for used. to an extent, particularly if you look over the course of two years rather than a snapshot of more recent data, those have been the lag arts. the difference is you're going to have to understand and be will to stomach more volatility. now, juxtapose that with a lot of volatility around virus, how to treat virus vax nations work from home, all of that stuff, it's less opaque it's much more transparent we know how to do that that pocket the volatility has been removed i think people are going to have to forgo some of the more conservative investments in order to meet their yield criteria you'll see shifts away from some
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fixed-income type of assets and lower beta equity type of assets there's going to be the volatility on the top bit of the range. it may not bear out in the entire index, but in terms of pockets, you will certainly see that you'll barbell, as opposed to what was previously fixed income, you're going to barbell within equities, and higher beta that higher beta will continue to have volatility, but that's the landscape now. i see that continues in the foreseeable future >> yeah. tim, to bonawyn's point about yield, let's not forget the ten-year yield is under 1.5% it's at 1.49%. >> exactly. >> you are literally losing money on a real basis with inflation by owning u.s. government trade
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it seems like it's still going strong and we've been struggling with whether the ten-year yield, for example is pricing in almost too much fed, starting to get on a place where it's looking at the groud side that's part of the concern here. on the days when we've had some of the bigger market moves, it's a ten-year that's been moving higher i think we're out of place where we probably will have to pay the price for a lot of stimulus, and a lot of pulling forward, even on corporate earnings, as we get sometime into '22. whether the fed can be as aggressive as possible in '22, as they maybe tried to diagnosis to communicate to the market in the last meeting, i don't know that i do think that in an environment where yields move up
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to 175 to 2, i think the market will like that i think the market wee getting to, you know, that's a sign the breakeven and inflation and trends there dynamics are things that will be weighing down the market the jury is still out here right now this is about a liquid rally in a case where the consumers are pent up. those trades we just discussed, where you have reopening dynamics for airlines, for example, you look at delta, struggling here, right at this level around $40, but pressing through, these are trades that i think are still trades to follow through, with fundamentals in the best of breed companies, especially in the airline space. >> well said, tim, jim wait for international travel that's the big money ticket. all the numbers that steve gave
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are for mostly domestic. it's absolutely bonkers. if you are going to the airport in the next two days, leave really early, i mean super early. your next guest expects the market to have another winning year, sort of, because parts of the markets will do a lot better than other parts let's dive into the parts and find the tasty bits. adam parkers was, of course, the chief u.s. equities strategist at morgan stanley. we're happy to have him back on. adam, you listened to the conversation just now, what are we missing, if anything, about this macro market? >> ipt optimistic on u.s. equities the way i look at it, brian, is earnings will probably be around -- i think $223 in s&p edges nest year, even if the numbers are a little too high, i think that's pretty atrackive
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risk/reward. and then on top of that, you know, some organic earnings growth i probably have been bullish for most of the lath decade, and just trying to focus on what could really derail the earnings outlook. i think that's the real risk to focus on >> so earnings, then, we talked about bond yield, how much does a 1.5%, or even 1.75, if it goes up, yield play into that 1 does the ten-year note matter to your earnings forecast? >> obviously it impacts the companies directly that borrow and let it capitalize on the spread, the banking sector, select services, i'm generally of the mindset that higher yields mean the economy is
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strong so i don't like the lodger where we're anywhere never a tipping point. i they when you want to call a market top, you should focus on hubris and debt. hubris meaning management confidence gone awry hiring too many fancy mbas at the top of the cycle, those types of things. i don't see a lot of excess in that regard. i think the key thing to focus on is areas lie semiconductors and book-to-bill backlog it is are basically i'm short a product, let me order more for the future. at some point those numbers in the backlog won't be real. i think that will be a cautionary -- book-to-bill is how much did i ship versus how much did i get ordered
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we're still not producing consumption in the cyclical areas. i think we get to that point next we're, we have to look more cautiously at where expectations are more achievable. with the panel earlier, i totally agree. it's always a barbell. you're always trying to find attractive risk/reward. adam, it's tim thanks for joining us. where do corporate profits need to be fearful about margins and market squeeze profits have been really running with excess margin >> yeah, i think the air i'm most worried about is machinery and capital goods, where you've seen some of the industrial activity roll over a bit people
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have been a little too optimistic about the infrastructure bill, and you have a lot of companies with record margins, forecasted to have report margins. they're probably subject to logistics and transportation costs, material costs, et cetera i think if machine have i and capital goods is probably 9 most susce susceptible. i do like the earlier point about some tech companies that have pricing power i think about this a lot in my own small business, who do i pay, right i pay salesforce for my client remgsships, adp for payroll, microsoft for azure, competent storage. all of those have pricing power over me. i can see lots of areas in the market for that pricing power. that's the part i would say along with energy and industrial, but i avoid
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industrials and staples, reits that look more expensive >> watching the energy, the industrials, all the things this that supply change by the way, adam, i was thinking too much of my high school french i messed up your name. >> it's all right. i'll take it >> i apologize for the chunking. >> mely christmas, guys. >> and happy new years merry christmas as well. steve grasso, let's go to you now. are you a believer in the real stuff? that the energy stocks, the industrials stocks, the companies you pay? >> yeah.
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yeah, but here's the problem so and i have significant portion of my portfolio in value names those are in chemical names, paper, container packaging companies. the problem, though, is if rates do not rise, brian, and you touched on this a bit with the ten-year if the ten-year stays flat, the value bucket will be worst less. people keep running into those four to six, eight names in the tech complex, because it's the only ones they know. they don't know the mid cap value names. so i think he's going to be right, but i think you need the large-cap tech for people to feel comfortable, and then you get a bit of rotation. they look fabulous you look at the russell 2000, a
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different story. >> yeah, but there's so many amazing companies out there. we have limited time, we tend to focus on big names i like to dig deeper to find some of these names. all right. coming up, which stocks should you wrap or scrap this holiday season we're going to play a festive game find out the names our traders will be gifting this year. straight ahead. plus we're going to go deeper, because why not? i'm sitting here energy on the move what does the recent rise in oil mean ou te details and the trades arndhem, all coming up next. "fast money" is back in two. need something different. oh, we can help with that. okay, imagine this. your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, like asap! so basically i can pick the right plan for each employee.
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their families it could have been a lot worse oil prices continue to rise off the recent lows, moving higher for the third day in a row. now more than 4% this week tim, your take structurally on the energy market, energy stocks. >> structurally i think supply-demand dynamics continue to favor the demand side there's very strong consensus, at least compliance among opec plus, particularly out of the last meeting, when they set a review in january, with a lot of optionality. at least now the russians and opec have been getting along the demand side of the equation is bullish into next ye. mosts most of that is coming
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occupy emerging world. i like the setup here. i realize that a lot of people are very skeptical the most important thing about investing in energy now is the companies are run differently. to me, you know, you talk about exxon. the great irony is exxon is really trying to be more like chevron, who would have thought that 10, 20 years ago, but exxon is trying to run more efficiently. cap ex will come down dramatically they can break even at $35 oil. >> what the saudi minister has said there's decades or years in under-investment in fossil feels. what's amazing, the price of stocks have not kept up nearly close to the price of oil.
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people hate the oil stocks, they've been burned on them for a decade is this going to be dead money again for the next few years >> well, you are seeing some follow-through, right? esg, for one, will continue to be watch of an overhang, but to tim's point will be been a change in posture. you just will have to find a balance there. the old ways, the old guard will definitely have to transition. you're seeing it in the autos, evs, historical names like ford and gm, so there will continue to innovation. there's talking of your own book, speaking about underinvestment, but there's -- there's underinvestment across the spectrum >> there is, and oil stocks have
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come up over the last year we have more to do and we're just getting started here's what's coming up next. >> announcer: mega meta-trends a top analyst joins us with his best ways to play the space. we're in the hold spirit traders are looking at when stocks you can wrap or scrap don't be a grinch and miss thor names. you're watching "fast money. we're back after this. the daybed slash dog bed. the living room slash yoga shanti slash regional office slash classroom. and this is the basement slash panic room. maybe what your family needs is a vacation home slash vacation home. find yours on the vrbo app. ♪♪
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the mess averse this year so how does this all eventually play out? julia boorstin continues her series on all the way to invest in the infrastructure of the metaverse. >> brian, there are so many components first, the chip that power vittual experiences. bernstein points to the potential for nvidia, and qualcomm with its snapdragon xr platform that connects virtual and physical place places. bernstein has an outperform on both those stocks. the network needs to be fast, so 2 5g is key. third, the original met averse player
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goldman forecasts that meta platforms, the company formerly known as facebook will invest about 5% of its can, $39 million in new metaverse technologies. there are etfs like this one, meta, not to be confused with facebook, including a basket of 44 stocks with exposure to this space, including those that i have already mentioned companies do teem eager to talk about what they're doing in the metaverse. there are 449 mentions of the m metaverse in third quarter calls. so we'll have to see if that trend continues. brian, back over to you. all right. julia boorstin, thank you very much okay so we have talked a lot about the big infrastructure players in this growing metaverse. our next guest joins us to try to break it all down and give us the latest read on a real
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virtual world. jeffries analyst andrew irkwitz, your literally trying to build something out of the nothing people say what is the metaverse? i say, i don't know, but if i could imagine it, it's like a "ready player one. terrible movie, great book. >> yeah, no, thanks for having me, brian. i wish everybody would answer the question, what is the metaverse with "i don't know" because it seems to be different for everybody. facebook talks about it as a vr play the only thing that's certain is infrastructure will be very big here, and quite frankly, because no one really knows yet what the metaverse will be, everyone is
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still building their own sort of thing, so companies like roblox could benefit. the video companies could easily benefit. arguably they're best positioned at this point, and nobody talks about it >> do we have to gamble on some companies trying to make money in the metaverse, not on the metaverse? what i mean by that is the difference between the companies to build the asenate for real roads, and the companies that put up a billboard that you look at on the road and hopefully will go buy their product. it's not any different virtually or in the real world, is it? >> no, take roblox, for example, you have companies like nike, van's, forever 21, building experiences right into roblox. by the way, some of these companies have been doing this for years. the idea this metaverse is new,
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is probably wrong. nike has had a virtual store for years. in fact it probably gets more traffic than roblox does so as we go and build this, it very well may be best to what we call buy the picks and shovels that are ultimately going to build whatever this metaverse will ultimately be >> yeah, but andrew, is it right -- to say this again, i don't know much about metaverse or children, i have a couple of the latter when things become overly commercialized, they instantly become uncool. >> it is -- >> is it a boom because they're in roblox? >> you bring up a really great point. this is a reason why we're somewhat cautious in the near term and trying not to get caught up in the buzz.
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the data would suggest that maybe the kids don't want to do the branded thing. vans had a lot of users, nike-land had fewer, and the most recent experience has even fewer. we're still very early i think you'll have a lot of companies trying to build something here at the very least leverage the technology one of the things we talked about, back to your earlier point around "ready player one," if people think that will be here tomorrow, they're wrong a lot of these builders started in second life storks world of warcraft, this idea of virtual worlds is not necessarily new. it will be a real slog to get from where we are today to something even remotely like a reddy player one in the meantime there might be ways to play this space based on
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company trying to use the technology that will eventually get us there, and use that in today's applications whether that's the data centers or the video game games, they're making their games more engaging, maybe not truly metaverse, but more engaging i think there's ways to play it, but i think it will be tricky. anyone who thinking that ready player one is going to happen tomorrow, is probably wrong. >> you know where we will be -- and we appreciate your time, i have the book and the movie will move up the charts in their respective categories over the next couple days, weeks and months everybody will be wonders what the hell are they talking about? exactly right. grasso, i'm old newspaper to remember excited home, pets.com, 1996, it's a new world, real life dead, all of that they became dead money they wiped out investors and got
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bought at deep discounts how do you see this playing out? >> when andrew was talking about a bunch ever bunch of the gaming stocks, you can't hit up the year-to-date performance for some reason, thekt get out of their own way this should have been acquisition targets. they just haven't figured out how to transition. i don't think this will be any different. then when you come up with a company that inswepted or leveraged the name meta, facebook, they're only up 22% year to date it's never the ones you think are going to optimize. i think he could be right with an nvidia, which is already up 127% year to date or at md that's up 66% year to date i think apple is never really first at innovation, but they're great at perfecting ideas that other people innovate. i have a sneaky po ever suspicion -- i'm lop apple
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i continue to stay long. i think they'll leverage the metaverse better than anyone else that's why you'll probably see the stock double from here, and everyone will scratch their heads and say, wow, i missed it again. it's going to be big computing and big energy 678 it will take that if -- by the way, 9 first to leverage this was ron artest, metta world peace 20 years ago up next, casino stocks, contessa brewer has her take and news to note now. plus, we are counting down to christmas and feeling a little festive here on "fast money. our traders have made their lists, checked it twice, the things they're going to wrap or scrap. the holiday season, atwh stocks immediate the list you've got to stay tuned to find out. why not both? visibly diminish wrinkled skin in...
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coca-cola, certainly on santa's list so we thought this would be the perfect time to play a little game of -- wrap it or scrap it >> i have no idea what that was, but the game is called wrap it or scrap it. it's a holiday-themed version of trade it or fade it. carnival up almost 20% this month, tim would you wrap it or would you scrap the krein line first all, i'm wrapping whose ever kids did that i'm scrapping carnival i think i just think there are better places to go in the
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travel space i've even been bullish, as we talked on the show about it, but carnival relative to airlines, to expedia, i would rather by there. i'm scrapping. >> tim, that animation sounds like the kid in the song "where is the music?" that's an obscure reference. bonawyn, wrap it or scrap it >> i'm wrapping it i think there's other alternatives that you might like, but you hear that 20% pop recently, and you need to look at that in recall numbers. if you look over the last few years, i think this thing has beaden up. it has a large amount of dead balance, but i'm wrapping it, hold on to it. next up, cvs health, rallies
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14% this month wow, steve, wrap or scrap it >> i'm going to scrap it so the stock is up roughly 50% year to date i think the all-time high is maybe $12 or $13 higher than where it's currently trading, basically a 10% move from here i don't think it's a total negative future, brian, but i feel as if they've played the hand they had perfectly, and the up side is limited from here >> i think they hope to revolutionize health care. visa ringing up 12% higher are you wrapping or scrapping
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visa >> i'm in the christmas spirit, wrapping this one as well. i see multiple pathwaying. i think that all bodes well for payment processing and credit card companies i'm wrapping this one. >> i'm actually going to scrap this one on visa if you look at longer term -- >> ah! >> i like that whether it's realistically taking a chunk out adviceo our mastercard or just the optics, it seems affirm is taking something away from those two companies. for me it's a scrape i'm going to throw in a would the rather would you rather i go with american express because affirm and buy now/pay later is taking away from debit, not from credit.
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>> i like it there combining games. steve, thank you very much up next, contessa brewer is here with the casino stocks, news to know plus options traders betting on new highs ahead in the healthcare space, coming up. ...demands a lotion this pure. new gold bond pure moisture lotion. 24-hour hydration. no parabens, dyes, or fragrances. gold bond. champion your skin.
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all right. welcome back let's talk gambling andit's not just for one particular reason, but there was news out of the china on the space >> i love my new name. thank you, sully that report out of macau is a bit of a nothing burger that managed to give the casinos a lift today it represents the public opinion over the permitting process that allows these casino to operate largely for things to remain status quo it's just how the people feel. that will be a big deal.
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that starts the process for new concessions. other news, a macau person said it could possibly open up to visitors one other piece of gaming news scientific games ended the day up 9% on news it will not complete the full acquisition for the rest of sci-play this was part of the strategy to amp up digit at gaming offerings. reportedly scientific games was reportedly not interested in negotiating. it's down 13%. sometimes you have to know when to hold them, and know when to fold them. >> you should put that into song those are good lines. >> the lawyers get mad at me if i try to sing it, so i just let
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it alone >> good stuff. contessa brewer, we appreciate it. that's why contessa is the best she literally says the note is a nothing burger let's go around the horn steve grasso, kick it off. the casino names rose the same as hotels and airlines everybody bought anything having to do with people going somewhere and spending some coin. >> do you think the recovery is going to happen faster in macau or faster in vegas i'm of the believe touch happen faster in vegas. i believe that people in the states who have never been to vegas are more likely to be going to vegas they want to spice up a bit of their investigate station time mgn is up. las vegas sands, used to be my favorite name there, down 35% year to date would say here, stay local, stay with mgm >> tim, we have to be careful,
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right? china has been going to this deero covid cycle. when they shut things down, they shut them down. >> however you said to look at this, they've been cut in half, trading roughly 18, 17 times, i think the renewal process is to watch, but probably overdone travel mobility i think is coming back, and i'm long las vegas sands. >> bonawyn, what about you any take on the casino names. >> mgm as well no doubt it's expensive, but those credit metrics tip dale point to mgm with me i'm with grasso on this one. >> you nailed it mgm the best performer of all the casino names coming up why and where?
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the cramer-cam you can catch the full interview appeared the rest of "mad money" at the top of the hour do not forget, you can have cramer delivered to your inbox every day. sign up now with all the info. just point your camera at that qr code. in the meantime, there was a lot of bullish options activity across health care today mike khouw is here to break it all down. >> we were looking at xlv. overall on the options market we saw slightly lower buyings, but not xlv. it traded ten times its average call involve today that was largely the result of some opening activity in the january 142, 147 call spread we saw it about an average of 85 cents. i suspect this may be pressuring a bullish bet, because we saw a
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lot of significant activity in the 131 calls, june, september and november, i think, someone is pressing their bullish bet here. >> mike, thank you very much b. bonawyn eison, what do you think? >> i think it plays into the barbell approach up and to the right. i'm a buyer. >> steve >> you know what's interesting to me, when you look at the xlv, up 23% or so year to date. i'm looking at the xpi and ipb i'm looking for the underperforming space, covid and pharmaceutical stocks, took the limelight. let's see if they can get something back together again. all right. like getting the band back
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all right. it's time for "the final trade." tim seymour, kick us off joyeux noel, and along with that, love it. i think that was a fashion designer steve grasso, what's your final trade? [ laughter ] >> i'm going classic here, very well done here, tim. >> it's apple, for all the reasons i mentioned. this is a company that is perfects everything that's out there. they lower the bar for themselves they wind up leaping over it apple is my final trade. merry christmas to you, the jets
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on the desk, and everyone else out there. >> thank you bonawyn. >> xlv, a technical setup, wants to break through apprecia yteou appreciate you watching. "mad money" is next. have a great day 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 help people make money. santa's not only coming to town, he came early.
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