Is more hope than entrance. What should people be thinking about . The way that the market is trading. I have a couple of thoughts that ill get to really quickly. I asked the producers to make this chart for me. I wanted to show you rsi on the industrial average because its at the highest its at the highest levels that weve seen really going back 20 years. Now if the for the dow at these levels. We saw it in 2003. Frequently that it will be at the beginning of a leg higher even though it does mean a shortterm pullback. I think people need to not lose their head when this thing goes off. I mention at the top this notion of this rotation thats going on. You know, hour by hour in some instances. Day by day. Out of sectors into others. Some stocks that are up, you know, a couple of hours later. They are down. Money starts to move elsewhere. Jim cramer said the following this morning. I want to go through it. He said im quoting. By the way, the rollover in tech is incredible. The rotations are amazing. Adobe up two. Now down. I just warned people the rotations are so vicious, said jim, find a stock you like and use the rotation to buy it. Heres what else he said about what investors should do. Dont, like, oh, wow, its my day and then, like, buy it at the top and then sell it because its been the exact opposite. Just be aware that things are really nuts out there in terms of the rotations where, theyre way too fast for me. Right. You get the point. I mean, how are we supposed to as investors think about whats taking place internally within the market . Its hard on a day by day bays. You can either day trade or take a longer term approach. I am worried about the dollar. Its up 13 from the may lows. If you asked me something that bothers me, that bothers me. A lot of the S P Companies do business outside of the state. Dollar has been going up. Now all of a sudden. Now were i would just like to see it pause, says and in terms of what josh just said about the markets overall, maybe this rotation is kind of healthy, right . I mean, the fact that the pharma stocks are starting to do a little bit better. The telecom, like at t and verizon are telling a bit. That is not every single day that the cyclicals are going skyhigh. A company some would say, okay, maybe thats a sign and maybe jim said it yerm in the week as well. Maybe thats a sign of frot. I think its a sign of maybe were going to just pause a little bit. Weve had a really nice run. I dont think the narrative changes between now and the end of the year or until we get earnings, which is in the middle of january. I think were still going to focus on there is better growth ahead. Weve got to get the fiscal policy detailed. When we do, we can analyze it then. I dont think you change your strategy between now and earnings for sure. Just watch the dollar. Financials up 18 . Telecom up 10. Energy 10. Industrials 8. You want to stay with those areas . No, i dont. I dont you dont need to sell them outright, but, you know, steph was just alluding to this. If you look in the Health Care Sector or if you look in some of the old Line Technology sector, stocks like apple. We havent talked about apple in a long time. Apple has a nice uptrend thats been developing here. Its like a delayed response. A onemonth delayed response to what Everything Else has gone on since the election. Its about time. I think that is the rotation that you are seeing. Yes, you may be seeing these intraday rotations, but what theyre really indicating is that some people are taking profit in these sectors like banks, like the materials, that have run really, really high, and theyre saying, hey, you know what, there are other cheap sectors that i can invest in. Health care is one of them. Pharma is certainly staging a recovery here. Also, old Line Technology. Take a look at intel. Intel had a bad quarter last quarter, but now started to march steadily higher. As we get later and later into this month, the possibility of them preannouncing gets smaller and smaller, and i think you can see that crescendo and go into the new year. I mentioned at the top this headline and part of the journal today, the stock rallies more both in substance. Josh said its always that way. This forward look. Of course. Just wonder if theres going to be a day of reckoning if the hope doesnt turn to reality when you get q on earnings. The hope that earnings are going to accelerate into 2017, youre not going to see that this quarter, are you . No. No. What about commentary is a little more down than people were expecting . I think people need to remember what last january was like. It was the worst start to a year for u. S. Stocks in history for as far back as we have data. The first 28 days of last year, we lost, like Something Like 10. 5 in the s p. The russell, youve lost 17. It was an absolute nightmare. No one was ready for it because it was a relatively quiet end to 2015. It didnt end up mattering. It did a lot of damage. It threw a lot of people off their game, and you could get something similar this year. Theres no reason to think that you couldnt. I know im going to have a better tax rate next year, so ill have to wait until next year to do some selling. What about the first week in january. Theres always the winter thing. The econ data urns it down. We have a minirecession, and then its all fine afterwards. These combined with earnings and combined with the inauguration, and whatever goes on with that, you could see people making some big sales in the first two weeks of january. My whole point is dont let that throw you off and completely change your entire narrative to stephanies point. You are looking for companies. You are looking for sectors that employees do well for more than a few days or a few weeks zbloosh if you are expecting things to rotate slowly, its only going to happen on days when theres really low volume. Otherwise, if its a normal day, ill call today a normal day. Youre going to see fast rotation because the people that are trading are fast. With that as a back drop, obviously murphy oil, williams, a bunch of these stocks are just rampant today. Up 4 . Up 5 . In the energy sector. Lily is up for 5 or 6. Preannounced yesterday, by the way. Goldmans conviction list. Upgrades. And then they got Morgan Stanley today. It is interesting we got a negative preannouncement or negative news from caterpillar. We got negative from he honeywell. Both of those stocks are higher. Honeywell is up today on news, and cat is where it was. Maybe people are willing to look through 4q and look through not make. The uncertainty. Lets see. The point of it is that maybe theres stuff that can look forward to in 2017 and you buy on any pullback. Were talking about the rotation into the industrials. Ge rises 8 . Now one firm sees another 25 gain from here. Welcome back. Thanks very much. Were talking about some of the industrials that seem to be throwing up some red flags. Yet, you are giving the green light on this unwith, where why . I also point out your prior conversation on honeywell and their numbers today. Their Fourth Quarter is actually at the low end of their range, and the only difference is 1 cent was fully tax rate at 1 . Their actual operational expectations, nothing has changed for them, and thats one of the reasons that stock has been doing just fine today, and the pension was better too than we expected. Ge, my view is we had downgraded ge at about 32 last april. The concern was the stock had gotten too far ahead of itself. We wanted to see some of the proof points in their big restructuring efforts that are going on. Since then we are sitting at the same level. 31 roughly right now. My view is that this company has done has a lot of things going for it. Power business is doing well, and then we are positive on oil and gas trajectory as well. Health care is strong. You start ticking down these things, and you can work your way towards 2 eps in 2018. Very controversial. We think theyre going to get there, and then the multiple i put on that is probably one more point of expansion versus the 19 times theyre trading at right now. I take 20, and get 40. Thats the up side over the time period. Are any of these catalysts that you mention offset by fx head winds . I mentioned at the top of the program about one of our panelists. Absolutely. Im concerned about if i had to say where im concerned here, where is the biggest risk to my perspective, its on the oil and gas side. Should we be wrong there . The second piece is currency, right . Currency, of course, higher u. S. Dollar. Generally bad for my whole sector. It is not good for ge in the near term. Weve built in roughly 1 headwind, which is comparable to some of the other names. Close to spot rates right now. Certainly thats a headwind that theyll have to overcome with increased productivity, with better pricing in their book, and, frankly, services which i forgot to mention before. This Company Makes 80 to 85 of their profits from after market. Thats the kind of strength im looking for to help give them Pricing Power in that part of their business and to push through what are potentially continued currency headwinds through the year. Obviously i would like to see that abate across the sector and that is one of the negatives here. Does the trian and peltz presence also give you reason to think that if not putting a floor in the stock, theres an external force, if you will, watching the store very closely . So i think there are certain stocks in at least my experience with trying to pass like Ingersoll Rand and others where its incredibly helpful to have them in the board room, and their advice on the table. I think with ge it is, of course, helpful to have an investor that savvy sitting at the table helping you think of your capital indication. No question thats important. Look what ge has already done. They announced investments. Theyre planning for Water Industrial solutions. Obviously ge capital. Theres no accident that these things are happening. Theyre happening under jeff immelt, right . Its not like we needed a change of ceo for that to happen over the last several years. For us it was for about the question of the right buyin points and waiting for the stock to kind of hedge up to where forward earnings and cash flow are going to be ohh owed, and i accident loo like cash flow conversion looks like a positive ten points from where they are. Thats one of my big criticisms for them. I think theyre going to improve working capital. Enjoy the conversation. Be well. You do the same. Steve i own it. Yeah, i know you do. I love the setup. This is the six worst performing stock on the dow this year. Up only 1. 5 . For all the reasons cited, it sat out a lot of the thats let me tell you, this stock is now facing off against that 32. 5 resistance point. Its also facing off against a 17 year alltime high. Its right there. You need to respect breakouts. You learned this with the bank stocks earlier this fall. Were going to learn it again some of the industrial names, and ge is the type of stock once it gets above an alltime high. There are no sellers. All of a sudden its going to become highly popular. You cannot think we some would say, okay, we didnt see this moving forward. Stock had this run, right . I tell you what you could say the same thing then. Dont get in front of it. It really hasnt budged. You cannot believe, and i dont, but a lot of people do now. You can not believe in this whole trump rally, trillion dollars in infrastructure. You cant believe in it and not think that ge isnt going to feast if thats what ends up happening. Very highly exposed on the ku currency sigh side. I would much rather own rails and steel and airlines. They dont have as much of a problem with currency. They also dont have much of a problem in terms of organic growth accelerating. The problem with the rails and steel thing, though, not the problem, the difference is ge as has a big leg in the internet of things. Its highly involved in medicine and health care. If you think those are going to be growth areas, then whatever the estimates are for the industrial part of the business, which not graed is large, thats want the whole story for the next five to ten years. Kevin oleary, you want to weigh in on this conversation as well . You talk about billions spent on a French Energy deal. Youre dealing with the french. Theres no Pricing Power. The government is going to decide what the margins and cash flows are there, and i think if you want to play any sector that ge covers, you can go get a pure play in it. I look at that Balance Sheet, and i say to myself, do i want to spend the next four days trying to figure this thing out or should i go buy the sectors i like . I have to give it to immelt. Ive watched him now for 17 years. I remember the day he took over. He gave a speech in boston. I went to it. I thought this guy is going to have a tough job, and that was before the black box financial thing. Remember, this has been i love josh that he would take the guts to do it, but i think the thing is i want to have respect for it, but its the old style conglomerate. You dont need to do that anymore. You can get plays in every single sector without the french government deciding what your margins are going to be. Its a good point. I think the complication of the Balance Sheet largely is what the company has tackled over the last year. When you take a look at what this business looks like a year from now, substantially less complicated than it used to be. I dont know if its been a dogs breakfast of a stock. Over the last five years. Youve cleaned up where. What do you pay for it, josh . Its at 22 times forward estimates. Youre getting single digit growth. I dont look at a stock like this and compare to it Everything Else thats out there. I only want to own ge. I dont mind the conglomerate aspect of the company as much as other people do. I think thats an opportunity to unlock value as they simplify or emphasize and to the point that the analyst raised capital indication, we really dont know where the emphasis will be over the next few years, but for longterm investors, and we look at the intelligence that will go into these decisions Going Forward with someone like peltz on the board, we have to think the future looks pretty brighter than the recent past. We also we already talked about honeywell as being, you know, where they took down their numbers. Are we overly optimistic about the industrial trade given fx, given many of these trump policies . Look, things can go wrong. He is not in office yet. We dont really know what were going to get. You think about higher rates and the impact on emerging markets where boeing and airbus have sold a lot of planes that have yet to be delivered. Full disclosure, i owe bowing. Im on that side of the trard. Look, ge sends sells a lot of engines to boeing and airbus that may not come through if airplane options dont come through. Theres both the sector specific and theres the company specific. A lot has to go right. Theyre priced a little bit for perfection. Lets see what happens in the market. If the market is smart. I think the market understands all these potential risks. They got that on camera. Its the christmas season. What can i say . You sure youre done . Im a giving individual. He is a giver. Dow chemical . Yeah. So i like the story a lot. I do think if the dupont deal gets closed, its sinnern ene n synergistic. For obvious reasons were waiting for depont, but as the calendar turns, well get closer to the approval, and the stock starts to work where. A lot manager ahead on the halftime report. Next up, the stocks kevin oleary says buy before the First Quarter of the new year begins. Plus, when the president elect tweets, is that a buy sign for you . Were going through the stocks, mr. Trump has hit and where they stand a few days later. Before the break a look at the cnbc iq 100. An index made up of innovators. Up 22 this year. Ge is on the list. Getting a big upgrade today. For more on the q 100, go to cnbc. Com iq 100. More halftime with scott and the gang coming up. What i love most about tempurpedic mattresses. Is that they contour to your body. It keeps us comfortable and asleep at night. Get your tempurpedic. The most highly recommended bed in america for as low as 25 per month and 90 night free trial. Ways wins. Especially in my business. With slow internet from the phone company, you cant keep up. Youre stuck, watching spinning wheels and progress bars until someone else scoops your story. Switch to comcast business. With highspeed internet up to 10 gigabits per second. You wouldnt pick a slow race car. Then why settle for slow internet . Comcast business. Built for speed. Built for business. Welcome back to the halftime report. Nine trading days left in 2016. Were now looking ahead to next quarter. Kev, you have some names on your shopping list, some big ones at that. I do. Heres my investment thesis. I have decided to take my financials down from a 20 allocation down to ten. I basically sold off all the regionals and gone short on the regionals, and all the money ive cut my positions in half. The question is where do i go . Where do i redeploy that capital . What i dont want to have happen to me in q1 is he dont want to have downgrades on earnings because im so worried that the markets have such a huge move on the animal spirits that weve been talking about and all the wonderful things that are going to happen, but theres been no earnings upgrades at all. What im trying to avoid with the names im giving you here is low risk of down i had ggrades earnings in approximate q1. I see no chance that theyre going to down gra i had their earnings. Its the best Balance Sheet in energy out there. If you are going to have an energy position, its the only one. I go here. Microsoft. Theyre killing it on the cloud. Ive owned this name all of 2016. It is delivered. It is made it on earnings. I see no chance. Well, anything is possible, but theyre not going to miss q4 or q1. I stay long. At t. Boring, boring, boring, safe. You know, theyre going to generate cash where. I like it. I just dont see a downgrade coming. Forgive me. I stepped on johns feet. No, thats right. I was just agreeing with them on microsoft. Yeah. Cloud as well as car because microsoft is doing an awful lot in vehicles right now, and thats going to be huge, i think, Going Forward. Ubs moved the target from 66 to 70. Thats one reason that he was smiling when he went to trump tower the other day. Hey, kevin, its i love microsoft. I got a question for you on at t. Interesting call. Obviously that sector is going undergoing m a activity, and its probably going to continue into the new year. Heres the risk. Im getting there, scott. You know, we dont have all night. All right . All right. Heres the question. Heres the question. Yesterday you got news that yahoo that deal might break with verizon. What happens if that if the same thing happens with at t time warner . What if theres all these failed mergers that go on. Does that worry you at all with at t . Lets assume it doesnt work. My good buddy mark cuban was up on the hill trying to pitch for it, where. You can argue that youre going to have derisking my holdings. Back in 2014 it was six and change in earnings. In 2017 they may get the 3, and we like that stolk. Thats a risky, risky, risky play based on the whatever animal spirits that came in on the trump election promise. Why own a stock like that when you can own something that isnt going to miss on cash flows in q1 , q2. Im getting more boring. Thats all im saying. I like boring. Kevin, i kind of disagree with you on some of these staple stocks. Procter gamble and Philip Morris. While they are fabulous companies, and i still own a little bit of p g, but i have been trimming it. Im out of Philip Morris now. How do you get comfortable with 1 to 2 max organic growth trading at 20 to 22 times forward, and in terms of earnings richks, how are they going to deal with currency without actually taking a price which hurts volumes . Every name you own that sells abroad and that is over 50 of the s p earnings, now over 50 coming abroad, and its got the headwinds of the dollar. Every name you own for any sector, you have to deal with the dollar issue. This is no different. What im trying to avoid with these names is i dont think theres a single name in this list thats going to get a miss on earnings. They could get downgraded over concerns, but theyre not going to break my heart missing earnings by 10 , 15 , and theres plenty of risk in the financials and the and the Energy Stocks where you might get that. I try to de this portfolio is a derisk portfolio. Thats what im arguing. If you got to redeploy the profits, im going here. Are they boring . You bet. You just said that you just called my stock a boring stock. I love you for that. All right. Well take a quick break. Up next, nordstrom under pressure following a downgrade to underweight. Stephanie owns it. Well find out what her next move with the retailer is today. Plus, the new star wars hits theaters this weekend. Will the force be with disney . Find out next. Well, if you want to sing out, sing out and if you want to be free, be free cause theres a million things to be you know that there are and if you want to be me, be me and if you want to be you, be you cause theres a million things to do you know that there are is it because so many go after it the same way . Chasing after short term returns. Instead if getting caught up with the crowd, the Investment Managers at pgim take a long term view, teaming specialized active investing with riskmanagement rigor, to seek out global opportunities. We manage over a trillion dollars this way, attracting many of the worlds leading investors. Partner with pgim. The Global Investment management businesses of prudential were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. All right. Thanks. Lets do our trader blitz. First up is oracle. They reported a mixed quarter. Disappointing crowd growth. Jimmy, its all you. A little bit of guidance that disappointed Going Forward, but ultimately i think this stock, like a lot of the old Line Technology, intel, microsoft, qualcomm, i this he these are very honorable here. Safe going into the new year. This is a buying opportunity on the dip. Okay. Give me the scoop on adobe. It beat on the bottom. Stocks down 1 3 4 . I think there was a lot of enthusiasm in the name already. This is the one cramer was mentioning. Remember, i said what he was talking about in this rotation, right . Adoiby goes up and then it goes down. You know, it could be a big seller thats being cleaned up, and a couple of traders piling on, and that could go away in a second in the stock and be right back up. I tend not to want to fade Companies Like this. I continue to beat and have good news. Anadarko, they boost their fiveyear view. They close the freeport deal, and then they raised their guidance for oil. This is a great restructuring story. Theyve been doing a lot of asset sales. Picking and choosing what to buy in the down turn. I like it. Its are up 46 yeartodate. I just if you own it, you hold it. Lily, got upgraded, doc, to overweight . As we said earlier, on this drop on that alzheimers drug, steph and i both bought it. We thought it was an extreme value down at 65 a share. We upgraded it, steph. Then goldman upgraded it yesterday, judge. Took it to the conviction buy list. I believe Morgan Stanley did it as well this morning to the equivalent of the same and set the price target up in the 80ss. Love the name. Ill be out of it today because i wrote calls against it today. Kevin, give me the scoop on disney. New star wars this weekend . Youre in the stock still or no . Still in it. Still in it, and you can see the analyst now starting to move their numbers up. Were starting at 107 to 110 range where theyre calling it. Heres the whole story on the stock. Its under owned. Everybody hated the espn story of three months ago, and now youve got lots of institutions not owning this name, and i think this rogue one will go way past 150 million, which is less than half of the last star wars, but if they could pop one of these out every year, this is the content story, right here. I bet you could be even better. Rogue one can do half a billion bucks. They have five out of the top ten movies. This is a content machine. I think its a way to own a pure play on content. Josh, rig. Transocean gets that stock is up where. Well, these stocks have had a huge recovery recently. I dont think that theyre terribly bearish, but what theyre basically saying is industry chatter is talking about needing sustained prices of 60 a barrel in order to feel comfortable of that estimate for the deep water names. Theyre just kind of steering you towards other names of the sector and away from the deep rigs. I dont know if thats something really actionable for a momentary investor. Steph, did people get too optimistic about retail too quickly . Nordstrom today gets downgraded to sell by matt botts. He is the best. He is the number one ranked retail analyst. Jp morgan. The stock rallied 65 from the lows. I was buying it in the 30s. It got to 60. I started to trim it. I still own it. I was trimming a little bit this morning too because i do agree with him. I think its still up 50 . Even with this correction today. I am going to hold to a small piece because i do think that this company out of all the Department Stores really runs the best show. They have the best presence or the greatest presence in ecommer ecommerce. Ive done a good job in ermz it of cost cutting. Im going to stick with it. Youll see where it settles in. I might even buy it if it pulls back more. Kev, whats your view on viacom . You got Sumner Redstone leaving the board. You have Sherry Redstone that doesnt want the deal with cbs where, what do you do with this . Im hoping Shaer Redstone eventually now that her dad is leaving the board brings some adult supervision into this name. You know, just the last ceo they whacked they paid him 95 million in comp. The new guy is only getting 12 million. I hate story stocks like this. Theres too much moving parts and drama. Im a content guy. If she brings in more of an adult supervisory role, give me a couple of quarters where they dont miss, maybe i would look at it again. Its been such a hair ball. Doc, what do you do with chipolte . They get four new board members. Theyre acquiescinacquiescin. Do you buy the stock based on the Board Changes . No, i dont. And, in fact, deutsche just, what, beginning of the week i think deutsche came out and said they have a 280 tarlgt. Not 390 where its trading here. Not saying theyre going to be right. I do think that youll still see some tax loss selling over the next couple of weeks in this name. Kev, see you next week. Thanks for joining us. Have a good weekend, okay. Thank you. All right. Kevin oleary joining us. Why you should buy the next stock that Donald Trump Tweets about. Dont sell it. Buy it. First, though, Brian Sullivan with a look at whats coming up on power lunch. You might have heard about this dow 20,000 thing. Were just wondering has santa already left town . In other words, have the gains, the trump rally already been priced in and we could be on hold . I know kevin oleary thinks that for a while well continue to dig into the market. Speak approximating of jobs in america. Well speak with the ceo of a toy company that brought jobs back to the states from china. Well ask him why and how much of a cost difference he is seeing. Plus, we are waiting a waiting way Live Press Conference from president obama. Should take place around 2 15 p. M. Eastern time. Well bring that to you live when it happens. Street talk and a bunch of great stuff on power lunch at the top of the hour. After the break more halftime report. Strund. Keeping the power lines clear,my job to protect public safety, while also protecting the environment. The Natural World is a beautiful thing, the work that we do helps us protect it. Public education is definitely a big part of our job, to teach our customers about the best type of trees to plant around the power lines. We want to keep the power on for our customers. We want to keep our community safe. This is our community, this is where we live. We need to make sure that we have a beautiful place for our children to live. Together, were building a better california. Im sue herrera. Heres whats happening at this hour. A Chinese Navy Warship has seized an underwater drone deployed by an american oceanic graphic vessel in International Waters in the south china sea. It triggered a formal protest from the u. S. And demand for its return. Army sergeant bo bergdahl who faces charges of dessertion while walking off his post. The Pretrial Hearing will include arguments on whether prosecutors should be allowed to the aed amitt evidence to injuries to Service Members who searched for bergdahl. Vermont senator and democratic president ial candidate Bernie Sanders had a skin cancer removed from his face. His office says he had a small basal skrel cell carcinoma on his cheek on thursday. Tomorrow is Super Saturday for the retailers. According to the National Retail federation, nearly 156 million americans will be out buying, and thats good news for the retailers because only one in ten people have finished their holiday shopping. I will be out there with my Running Shoes on. Ill see you at the mall. Thats the news update. Scotty, back to you. See you next week. Coming up, buy the tweet. Were tracking the performance of the Companies Trump has been tweeting about and taking down on twitter. Next. The halftime report. We love knowing whats happening. So the nest cam Security Camera looks after things and alerts your phone if somethings up. Hey, need a glass . No matter what it is. Hey, dad. Hey nicole. Hey i just wanted to thank your support team for walking me through my First Options trade. We only do it for everyone gary. Well, i feel pretty smart. Well, were all about educating people on options strategies. Well, dont worry, i wont let this accomplishment go to my head. Im still the same old gary. Wait, you forgot your french dictionary. Oh, mucho gracias. Get help on options trading with thinkorswim, only at td ameritrade. Were back. President elect trump using twitter to call out individual companies, and many cases the stocks have dropped quickly, but then theyve turned around. Lets get to dom with the lowdown there. It is a turnaround story, right . You take a look at all the companies that trump has talked about. Some of them have seen those really, really sharp moves to the down side right off the bat, but do they last . Typically they havent. We only have a small sample size. Remember, ford, rexnor, boeing, amazon. Many companies the target of Donald Trumps iyre. This was not a tweet, but it was an overall impact of an industry. This was a time person of the year cover. Donald trump the president of the divided states of america saying in that story im going to bring down drug prices, donald trump says. I dont like whats happened with drug prices. The next day, the i abobb, biot etf dropped by 5 at its lows to rebound a bit, and take a look at that now though. Sharp move lower. Weve rebounded since then. A shortlived move here. If you take a look at some of the other examples recently, of course, you have what happened with boeing in that tweet. Air force one, the costs out of control. It calls the shares of boeing theyve recovered all those losses since then. Even some more just a couple of days ago, and Lockheed Martin, which perhaps we know 4 billion of market value wiped off the value of Lockheed Martin because of the f35 tweet cost overruns there. Lockheed has gotten back losses. We talk about many of the sectors, and the question becomes whether or not some of these moves are sustained. Its all going to depend, scott, guys, on whether or not trump actually follows through with some of these tweets and maybe those tweets in the future will have more teeth. Back to you, guys. Thanks so much. All right, jimmy. Youre on the spot here. You said right. To buy lockheed when trump tweeted that the stock would be up. You guaranteed it would be up by the end of the week. It was a guarantee. He is a registered person. He cant guarantee anything. You cant use the gword. It is up from ill make a citizens arrest if he uses the gword. Guarantee. Im just kidding with you. Listen, its up about 2. 5 off the low. To be fair, i thought it would be higher. I thought it would be up 5 . Frankly, i think what dom just reported is absolutely accurate. You now have a definable pattern that you can predict if a stock like Lockheed Martin or maybe pfizer goes down 5 on the day of one of these tweets. Thats absolutely a shortterm buying opportunity. To that point, scott, i actually did put it in the halftime portfolio competition as a shortterm trade. That competition he put his money where his mouth is, scott. Let me tell you something. We did this already in 2013 when carl icahn first joined twitter. He would send a tweet will apple. The stock would add 18 blg in market cap. You had a 10 move in one of the biggest stocks in the world. Then he would send another tweet a month later and go up 6 . Then 3 . By the fourth or fifth tweet its like, oh, carl is tweeting about apple. Theres a law of diminishing returns on all this stuff. Whether we are talking about einhorn or whatever it is. At a certain point the market says, all right, big deal. Theres somebody talking about a stock and maybe it fluctuates a little bit. I do not think we should be rearranging our investment style or strategy based on what somebody might tweet. All right. We have unusual activity in a solar stock. John is on the case with that trade. First, though, the chips, micron applied materials, both hitting 52week highs earlier. Nvidi hitting an alltime high. Well discuss when we come back. Najarian on the desk means we have unusual activity. Doc made his way to themarks ar first solar is there. Stock down from 75 a share, judge, back in march of this year to less than half of that. It is just a little off the 52 week low. So what do we see today . Well, someone buys next weeks calls, 34, and 35 strikes. So watch this. The calls last night closed right here around 40 cents. So far today, they shot up to a buck. Thats the 34 calls. So that did i do . Bought those. Im going to try, judge, to sell some other calls against this as the stock rallies here. It is already up 5 today. Here is the 35 calls. You can see similarly these have gone up and doubled your money overnight. Obviously crude oil is moving higher, judge. Often when crude oil moves higher, some alternatives to crude oil, like first solar, since it is so beaten up, gets a little love. Thats whats happening today. Shares up 5 . Ill probably be in it three days. All right. Good stuff. Come on back. Coming up next, the dow continuing to flirt with 20,000. It cant seem to breach that level just yet. What history says about that delay. Thats coming up. Is happening before our eyes. Shift in Human History sixty to seventy Million People are moving to cities every year. At pgim we help investors see the implications of long term megatrends like the prime time of urban expansion, pinpointing opportunities to capture alpha in real estate, infrastructure and emerging markets. Partner with pgim the Global Investment management businesses of prudential. How else do you think he gets around so fast . Take the reins this holiday and get the mercedesbenz youve always wanted during the winter event. Now lease the 2017 gle350 for 579 a month at your local mercedesbenz dealer. There he is. Farmer jim. Slow mo. Super slow mo. That was directed at you, scott. Look at the rolling his eyes like a teenage girl. Anytime he starts to go on a little bit too long, hes going to remember the picture. Know that it can be brought out at any moment. Hes going to think twice. Like dancing dr. J. A warning for all of you. We havent seen the dancing dr. J in a while. Creative people in the control room. That serves as a warning to everybody. Yes, sir. With mr. Roberts sweater on today. I dont roll my eyes off camera. I do it on camera. I wasnt talking about that. All right. Lets show you the market. Dow is negative. Trying to get to 20,000. Thought we hit it earlier. Eric with what history says about that milestone and others. The dow has been struggling to get over 20,000. Now the fourth day since we crossed 19. This could be a selffulfilling prophecy that we dont get over 20 k, we may struggle to get there for a while. Lets look at a few examples. The dow crossed 4900, no stopping it. Consider the move to 15 ,000, we blew right by 14,900 and hit 15,000 on the same day, holding a close two days later. We hit 9900 and then had to wait three trading days to touch 10,000, but then had to wait 12 trading days to close above 10k, including a close of 9997 and 2625 before coming back. Here we are at day four, this could be the make or break day. Doesnt look so good. Why the trouble, you think . Out of breath . Market needs a breather . The market of stocks. It is not an index. It is individual stocks that have to advance or decline in order to make thats why it is called the Dow Jones Industrial average. It is four stocks that matter. Is this how markets were . Part one. I open the hood and you can see the mechanics. It is a market of stocks. Apple and gold dont have a catalyst propelling them higher on a given day, the dow is not moving. We can talk about bank of america all we want. But it is not relevant. There is a feeling that things have, i dont know, stalled or taken a little bit of a break. A breather. The feelings are not as relevant as they might have been at dow 10,000. All of the volume and all of the activity that is ultimately going to push this market through, if, in fact, it goes, is going to be generated by unfeeling, unthinking, uncaring, algorithms, software programs, bots, computers and some of us will trade around the fringes of that. But the thrust when it goes could be as simple as a dia, the dow diamonds. That could be all it takes. Speaking about not carrying and not thinking, who cares about the Dow Jones Industrial average. I care. It is a sign, to some respect, still relevant to main street. Im sorry. I dont care about the dow. The s p 500 is far more relevant. These 30 stocks, theyre always picked but the front page of the paper says dow 20,000 in every newspaper or website from here to los angeles means something. No professional money manager cares about hes talking about the fringes. The fringes, retail, thats who gets involved with the big numbers. Theyre the ones reading usa today. They end up in the same place, they can say that one is not relevant, this is the professionals index and thats true. They end up in the same place in the end. The dow is a really good tool to watch. Most statistics, you need 30 things in any sample to get what the rest of the universe is doing. 30 is good enough. They move up and down together, even though it is not for the rest of the world is 200 billion, only like 7 or 8 billion in the diamonds, i think. To jims point, like serious investor, if theyre buying an index or trading an index we get the point. Were talking about a measure it is a reinforcement of where the tone has been since the election, what the level of optimism is and has been. Has to mean something moren this than a big number. It has been a tough year. Massive rotation. First half of this year was all defensive. The second half of the year is all cyclicals. And people are not positioned and havent been positioned all year. Maybe a little tired, maybe take a break, wait until we get earnings and then make better decisions. All right, final trades. We have three hours. Thanks for being here. Nobody is paying attention to apple. It is marching higher. Thats one to watch. Keeps going higher. A couple of posz caitive cal this week. Ive been bullish on bristle myers. Get long. Walgreens. Photonics. Thank you. Power starts now. Hi, everybody. Im Brian Sullivan. Well, after being red hot since the election, why have stocks turned as cold as the weather . Dow 20,000 seems as far off as santa answers where the questions are and where the market is. Plus, with just nine days until christmas, the clock is ticking on retailers nationwide, why many may be growing nervous ahead. Will the force be with disney as rogue one hits theaters . Power up your lightsabers, power lunch, your father, begins right now