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"At the end of last year, First Solar, Best Buy and Hewlett-Packard were all dogs in December, and they're up 50, 60 percent in the first half of this year," he said.
For next year, McDonald said, the home builders looked to have strong potential.
"They've underperformed in the last six months. Credit is outperforming the equity in the case of Hovnanian. That's a very positive sign," he said. "But the gold miners and the coal stocks are the dogs."
(Read more: Keep buying stocks at all-time highs: US Trust)
Underperforming stocks in the mining sector include Newmont, Cliffs Natural Resources and Peabody.
"There's only 40 names in the S&P that are negative this year," McDonald said. "I mean, it's just insane."
McDonald holds long positions in Best Buy, First Solar and Hewlett-Packard.
Josh Brown of Ritholtz Wealth Management called it an "interesting strategy," urging a bias toward quality.
(Read more: Hedge-fund manager's top stock pick for wealth creation)
"There are a lot of really bad business models, and there's a ton of leverage, so I think you really want to go for the quality version," he said. "So, if you're going to say gold miners, I would err toward the larger, better balance sheets if I were to make that play."
— By CNBC's Bruno J. Navarro. Follow him on Twitter
Trader disclosure: On Nov. 27, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Stephen Weiss is long BAC, C, GS, MS, M, GILD, AIG and long calls AMZN; Jon Najarian is long AAPL, BAC, C, GS, JPM, GLD, MSFT, HPQ, AXP, NHI, TSO, CROX, UPS, BYD, VLO, HFC; Josh Brown is long AAPL, BAC, F, DDD, XLF; Simon Baker is long AAPL, C, CSCO, FB, AMZN, HD, FDX, VIAB, DIS, GM, HTZ; Larry McDonald is long BBY, FSLR, HPQ.