Market another major selloff on wall street. Stocks temably tumbling s p tumbling but check out what happened on the year this has only happened 17 times before going back to 1962. Brian kelly, what does this tell you about the market well, it tells me we are in for some tough sledding, a lot of turbulence. What is interesting, that bonds and stocks did Different Things than they should have done there are a lot of people in the market, when stocks are down and bonds are supposed to be up. They used that as part of their port foal yoan when things get out of whack, they have to balance that. This feels like the end of february, beginning of march gold didnt do well, bonds didnt do well the only class that was up was bitcoin. That seems to be a safe haven. Jeff, what did you make of that when we talk about safe havens, it is not necessarily negative health care outperformed and utilities outperformed so it was the usual suspects but tech not being a safe haven, that speaks to the statistic we have been in this weird market where technology has been more of a safe haven trade if you believe rates are rising because growth expectations are going up or people expect this cyclicality. That makes sense people were selling. Those two things make sense given the backdrop of this market partially i think that is to explain the move i dont know whether its friday, but im generally in a good move. I think we might be closer to the end of this selling than the beginning. If i think of bond yields, copper outperforming gold, a barometer of risk taking i think we are still in a reasonable spot. Jeff mills is walking on the sunny side of the street he also posited yields are rising because Economic Growth looks better historically that has been the case, but is that happening . You are in position for that scenario for me, the biggest thing is that they have made or the investors have made the crowding into the tenyear, into these quote, unquote, safe havens, so barbaric, that the unwind will be terrible for the investor everyone crowded into tech and bonds because bonds were thought to be that yields were never going to go up again what happens if we started off the show saying is the 30year bull market in bonds over . That would probably be really inflammatory to most people that are watching but just think about this. The disparity between growth and value, when you look over a longterm chart, right now value is mispriced 2x back when the bubble popped. You could say tech stocks are not overvalued to the level they were then, but the disparity in growth has never been what it is now. So i think we are in brian said we are starting off for some tough a tough road ahead. Jeff was definitely more constructive i dont want to say that i am in the middle because i am not. I am worse that brian these days i think we are going to see an outperformance of value that we have not seen or do not remember in decades wow, that is quite a proclamation bonawyn, where do you follow you will see some rebalancing that you typically wouldnt see on a standard trading day. I dont want to dive too deep into the options, but we need to unpack what is trading the Options Market outtrumps the equity market. We have seen a ton of buying options over the course of the last several months. Deals are going to be short downside put when you get moves like we have seen this week, down 3 , down 2. 5 and the down volatility people have had to sell out of stocks to hedge their position i think some of the economic picture speaks to that but there is one point we are missing which is just mechanical when we get to a month end i think this is highlighted moreso you outlined one kind of mechanical pressure and bonawiy is outlining another kind of mechanical pressure. If its mechanical are you saying buy the dip if it is not fundamentally driven, should that make you feel better about being in the market i didnt mean to imply the entire move was because of the mechanical that tends to accelerate the underlying move. The fundamental is that it is an economy past its prime what the bond market is telling me is there are two parts. The economy is going to get better because of inflation or bond yields can go up because there are defaults i am not suggesting the u. S. Will default when i look at the bank stocks they have been trading like death. So thats further evidence that underline these moves, the fundamentals underlying these moves are relatively weak economic trends. Thats an interesting couple scenarios that would explain the rise in yields jeff, what can the feds do at this point it can provide liquidity but cant solve the solvency issue how do you explain your more optimistic view of why bond yields are rising . I think that is clear that the feds cant do much more. Evans has come out and said as much to the fundamental point, i think brian is correct in the sense that everybody is talking about the macro, but if you lock look at the companies and how much they are being punished it is a wide margin. And technology, where the expectations are higher, they are underperforming. I think there is a fundamental performance, but even as he would move into next year, if the feds cant step in regardless of who wins the election, there will be stimulus and maybe a vaccine. I am trying to look at the technicals because there is so much to unpacket unpacket about 55 to 60 are in 20year lows it puts us in the ballpark of a bottom starting to see that put call ratio rise, too. I think we are closer to the end than the beginning of this thing. Lets check in with the chart master it was a rough week, but the pain might not be over carter, what are you looking at . There is a ton of stuff to look at. Its important to say before we look at a handful of charts, what we know is that equities have been nothing short of disaster the best we have ever been up is 10 , down as much as 35, and here we are crunch as measured by the s p have done nothing and treated investors to a great swoon only to be recouped and for what . Underperforming gold and treasury you have on your screen what we know you see the trend line just drawn on the march low it is also from a double top formation. While these things are not perfect, they have a lot of history behind them and what we have is, of course, that circumstance another chart, just looking at where we are now in relation to the prepandemic high we are below where we were at the peak in february before things went haywire. If you put the charts together, chart three is what we would call an ascending wedge or triangle and we are breaking below key levels next chart, drawdown this drawdown in relation to the others, there have been five yeartodate of greater than 7 . Can you see the numbers there. There was the initial drawdown of about 7 and then a second drawdown in the may period of about 6 and then an 8 in june the biggest one was in september at 10 plus and then this one at about 8 or 9 is it likely to be contained here with another 10 or less i suspect not given the trends we have just seen. So the final table, this is how much lower were we to check off down 10 , 15 from the peak of september 2. A 20 decline which is no big deal in the history of markets would take us as low as 2870 12 would be another 3 . You see the far right column from here. There is no indication that stepping in here is going to be the right thing to do. Carter, thanks. We will see you on options action shortly steve grasso, which levels to you like here . I do it a different way we come up with the same answer. I go back to the covid low of 2191, go to the recent high of 3588 and then you look back on retracement level and get to carters 2889ish is my level, close enough to him. And then you go a little steeper dive to 2725 those two levels, melissa, are the 50 and the 618 retracement. Thats normally where you get the bounce so if you are looking for a bounce, thats where i would look for it. Selloff for me hasnt been aggressive enough. We keep buying the dips in technology back in the tech bubble we bought the dips until Technology Stocks lost 90 of their value i am not going to say that is what is going to happen, but we have been rinserepeat for too long for something who likes tech, do you think buy in the dips mentality should be gone i dont think it should be gone i understand what he is saying i dont think you should try to step in front. These companies had strong earnings these have been momentum trades we have seen for quite sometime. I expect them to continue in the longterm. The housing that you got to hear, and later, ford, why this could be the new story to watch in the market. When i was in high school, this was the theater i came to quite often. The support weve had over the last few months has been amazing. I have a soft spot for local places. Its not just a work environment. Everyone here is family. Gonna go ahead and support him, get my hair cut, leave a big tip. If we focus on our local communities, we can find a way to get through this together. Thank you. If you are ready to open your heart and your home, check us out. Get out and about and support our local community. We thought for sure that we were done. And this town said not today. Welcome back if this weeks selloff wasnt spooky enough. Diana has details of the Housing Market even as jobs slowly come back and Housing Market make records for sales and prices, a huge number of households struggle to make their payments, about 12 million. Renters struggle the most at 8 million behind and 6 million homeowners say they have no ability to pay next month. Other than an Eviction Moratorium which expire at the end of december, there has been no relief since the relief expired. For homeowners there are bailout programs where borrowers can delay their payments for up to a year a reported to found that a number of borrowers increased to just 3 million last week and thats after they had been improving. That is 5 of all active mortgages. Another half million are behind but not in any bailout a vast majority of borrowers have extended their terms at least one. This is an interesting story we wanted to bring to you guys, brian kelly, because this means the numbers may not tell the full story how much pain consumers are in because they have this moratorium protection. If rent is not being paid, landlords are in forbearance and banks are not getting their payments there are multiple ways to go. This highlights kshape recovery we are in people who own stocks and homes and have a job they can work from home are okay but those who cant have no way to do it as you pointed out, it becomes a daisy chain of payment i suspect thats why the banks havent rallied as much. Its great you can make money on an interest payment, but if you dont get any of the money back, that doesnt help you out. And i expect it will get worse in the winter and spring thats why i think turbulence is coming you needed to get that out there. Now we are probably looking at march for stimulus that will exacerbate it. Bonawyn, where is the trade i expect commercial side to be in better shape they will be larger, more assetbacked, stronger financial situation. Residential side, those people i expect that to be a domino effect keep in mind that peoples homes are typically their largest asset. If you are going to lose your home or have your credit damaged because you are falling behind in payments, you are going to be struggling to get access to payments because you are cash strapped thats the way i am locking at it, commercial versus residential. I think the trade, given the statistics, i think the builders are an interesting place to be i think about trends that have been accelerated and house something one of those bui builders are the one to ease the supply restraint i still look at dr horton and lennar if rates stay low, i think housing works. Is this the new energy trade . And later, one of the worst performing sectors, is that about to change . Why banks may be the best bet right now. As business moves forward, were all changing the way things get done. Like how we redefine collaboration. How we come up with new ways to serve our customers. And deliver our products. But no matter how things change, one thing never will. You can rely on the people and the network of at t. To help keep your business connected. United states cant easily get to a doctor or afford the treatment they need. Thats why goodrx has built a leading consumerfocused Digital Healthcare platform. We wanted to make shopping for healthcare as easy as it is to shop for travel or electronics. As a public company, we hope to provide even more services that help people get the healthcare they need at a price they can afford. If youre concerned about the environment and climate change, how do you find companies that are driving the right outcomes . If you care about economic equality and social justice, which firms are addressing it in their workplaces and their communities . For nearly 40 years, calvert has delivered competitive returns by investing in Companies Making a difference because we see value in doing good. Talk to your Financial Advisor about investing responsibly with calvert. Welcome back to fast money. Fisker soaring today but check out what happened to energy stocks. The spdr fell. So is this the new energy trade . If biden is winning in the polls and he said he wanted to put an end to fossil fuels, it doesnt take a Rocket Scientist that oil is going to fall off a cliff. But look at solar, up 138 but election is not a done deal yet. You could see these trades unwind you are going to get a lot of volatility in the next three, four, five days until we figure out who is president what do you say about the overall trade, not just for solar. Another thing to keep in mind is the whole impact investing. I think that continues at a minimum in the secular trend away from fossil to renewables that was in place through our Current Administration i dont see that changing soon ready to say goodbye to big oil . I think we have been ready to do that for a long time. Saudi arabia sold off their oil reserves, not all of them. And it is almost a self fulfilli fulfilling prophesy. People scoff at those, but those are the kind i like. I still like the first solar trade. Final trade bonawyn . Restaurants had a rough week. Ium yum brands, strong margins caterpillar it bounced nicely off the 50date support. Steve i cant remember this was the last time this was my final trade. This is deep value ge, look at this thing for 10, sooner than later. Brian i am going to be a bit of a contrarian i think you start buying tlt, bonds. Too many people are on the other side of that and i always lto rike un to the other side of the boat when every is on one side heart monitors that let your doctor watch over you, just like you watch over your best friend. Another lifechanging technology from abbott, so you dont wait for life. You live it. Happy friday it is a cold day on the east coast, but we have a hot show lined up for you here is what is on deck. It is a scary halloween for many investors, but fear not, the savvy amongst us can take a different approach thats why tonight we are dressing up as counttrarians looking to make a withdrawal from the blood banks