Next week getting results from walmart and jcpenney then kicking into high gear barreling toward black friday. Is there a giant moment of truth for the consumer. Everybody says about the healthy of the consumer. Never underestimate the u. S. Consumer want to spend doesnt mean they should be spending they have jobs thats great as long as the stock market goes higher every day whether people have a dollar or not in it they will spend money because they feel the economy is doing better thats the calculus i make with the alltime high in the stock market i think the consumer continues to spend doesnt mean some of the stocks are going higher but the consumer will spend. If you want to play the stocks, i think in the next thursday a name like nordstroms which had great trading ranges over the last couple of years, yes its bounced off the low but you have a huge Short Interest, reasonable valuation and we find ourselves time and time again in in environment these big Short Interest retailers tend to do well into earnings imprisoning thats the way to play it. It feels were in an interesting spot in terms of the earnings season for the retailers. We dope know if the tariffs on december 15th go into effect the guidance isnt going to be the guidance we would hope if they nounsed officially december 15th is off the table. I think its difficult to do that analysis in this environment. The best you can do is what guy is talking about and you look at sentiment. University of Michigan Sentiment today was decent held up. That tend to be somewhat of a leading indicator. Does turn with a little bit of head of the stock market if we get a stock market tailwind into the holidays with consumers already feeling well, then i think they should hold up well that being said, i was a little surprise surprised how walmart traded today it traded horribly down towards the lows of the day. Its already had quit a run. So when you look at these retailers look at those that maybe havent had that much of a run. Very interesting, the xrt, president etf tracking the retail seccer, in midaugust made a 52week low traded below the low from december of 2018 i think the point about guidance is a good one. You may see he deeson back to School Numbers but not a whole heck of a lot of clarity some of the stocks you mentioned more nordstroms rallied 15 off lows the dpchlt rt while 20 off the lows its well below the 52week highs last year. To your point about the walmart some of the big box has done heavy lifting. Costco, walmart, target and macys we talked about last night could it they ral judge . Yeah there will be good trading opportunity. For the reach is it for the laggards or winner self you want longer term go with walmart, target, kiosk costco Short Covering macys jwn but its very binary. But in this market away from the value trades and the consumer state your nameles and utilities, is that an environment in which walmart and target still win i think you see people i think bought walmart regardless of valuation they looked at it listen, earnings have been fine. I think they were pouring money into a stock paying a dividend, seems to be recession proof and that stock won now people say to b. K. s point does this make sense in terms of valuation . I dont think it does. But i dont think it did 15 ago. So in terms of the xrt dan makes a gad point. But if look in terms of the xrt major Double Bottom at the 8. 5 that dan is staring at at the trm nall this will overshoot to the upside and the overshoot is probably 46. 5 or 47. Target blew out in august blew out eps up 24 . Digital up 38 so i dont know if you could say they are overvalued. Nobody saying they are not performing or executing they are questioning the valuation. But thats the point and see i think you have to go to what is performing. And maybe you get a better a higher multiple on the stocks that is traditional. I think you want to be careful of the ones that have already popular performed. Tjx boekt broke out to a an alltime high in the last month or so. Look at starbucks, mcdonalds, i know we talked about those, making alltime highs this summer, trading at preems yums to the market and many pierce and done nothing but sell off over the last two quarters another name i throw in the basket and other stuff going on nike in the last couple weeks. A few weeks ago broke out surprised on comps now become at 90 at the breakout level. Splook at tjx and roth stores they benefitted from retailers pulling forward ahead of the tariffs. They had the overstock and sell off to a tgx and ross stores if you dont have the the tariff do they give some back. They might. Theyve had the run already. Youre predisposed to sell those. If im trading into the numbers going into next week im looking at macys right because they have the high Short Interest 15 seems decent support on this i know what im shooting against. And i have the possibility that even if there is bad news there is going to be some Short Covering on the bad news and might hold it up. You know some of you guys appear on the other program i host, power lunch. I like that. 2 00 eastern time steve grasso on on halloween we played a game. What scares you. Trick or treat stocks he said the scariest stock was macys which you bk and dan at least seem to like for a trade. Its a Short Interest of 26 . Anything with a Short Interest above 15 is susceptible to pop higher the problem is if this fails and this continues the downward trend line you are looking at another jcpenney in the making here if it dips below 10, et cetera its getting ugly very fast. I wouldnt disagree with that this is a pure trade for me. Im not saying macys turned anything around by any means i think maybe the sentiment got extended to the downside. From retail tos rates now bond yield seeing a big rally at stocks hit alltime highs but the chart master says now the perfect time to buy bonds. Carter is breaking it down at the plasma lets try to explain the whole thing if its explainable. What we know is starting the year we were at 3 and consensus among lets say 50 economists that are supposed to come up with a projection for the year ahead was that we would go to 3. 25 inconveniently of course we dropped to 1. 4 instead and we are hear we are now i think after all the jockeying for position, rates are basically where they belong and if anything i think you back away a little bit. But lets draw lines and see if we can figure it out so a lot of overhead supply. You have returned to a level where you are starting to struggle another way to draw the lynn, same exact chart, right to adown trend where we have come up against trouble every time and then intsz of a trend line use a moving average, same principle, the reciprocal of this this the my hunch is you get a bit of a bounce. And the frenzy, overshooting to downside at 19. 4 and now back at 2 level its where they belong, if you will with the potential for rates to back down to 1. 7. Therefore. Come on over, carter well bring the chair in wow come on over. He is in the pantheon. Its amazing. If youre a pantheon its like automatic. Get out of jail free card. Got the muk back. Because the silence was kind of creepy. Awkward does this mean that you should still or can still be in the dividend proxy trades, the utilities, et cetera. Obviously global banks, u. S. Banks, regionals, Money Center Banks they dont call them anymore but those all of a time have moved in response or ahead of however you want to characterize this move in rates. And yet the move in rates from 1. 4, 1. 45 to 1. 95 is back to an inherently difficult level you have expended a lot of energy and dont carry through and start printing 2. 2 or 2. 4 which is starting to become the flavor of the day, which is all of a sudden end of times now People Project the other way. I think its time to bet the other way yet again. Lets do some cross Market Analysis then. We have seen the dollar go up as rates go up. We have seen the stock market go up as rates go up, which is different than we have seen. Does that mean the stock market is in danger does it mean the dollar is in danger well, the interesting thing is also of course we have seen gold behave a certain way, right . My hunch is that its not a market issue but a retation issue. The rotation thats occurred in the beaten down cyclical names have gone too far and if rates dont follow through much youll get profit taking in big moves in banks and industrials does it i mean, does it matter what we see in the u. S. Is being confirmed by global rates, that its not just the u. S. Moving in isolation right, but rates are almost moving globally to some extent. Yeah. Basically the directional element to it is sort of uniform. Yes, rates have popped everywhere but thats just it, they have come along way, they popped. All right, carter thank you Carter Braxton worth. We are will see him on options action. The collective we or we. The collective we. Mel look look looked at me the two smarter guys on the deck will be on. Thank you appreciate that quickly conned edison, dan maid a cogent argument yesterday its bounding against the trend lineup conedison holding its trend line you can buy conedison if you believe the rates are heading lower. The vice chairman of lions gate will give us the low down on the box office and what the streaming wars mean for the industry and lions gate. Unof the traders unveil the chart of the week and and why he is seeing a golden opportunity thats a hint. Live from times square in new york city. Much more fast money right after this but in my mind im still 25. Thats why i take osteo biflex, to keep me moving the way i was made to. It nourishes and strengthens my joints for the long term. Osteo biflex now in triple strength plus magnesium. You should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. But youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start Trading Commission free today. Welcome back to fast money. Shares of layens gate surging more than 11 percents. Nopg the best day since may. After the starz unit added 1. 2 million streaming subscribers posting better than expected earnings and revenue. Now joined buy Michael Burns vice chair of lions gate nice to see you again. Nice to see you as well. The Earnings Report good across the board according to a lot of the analyst on the street the stock you see responding to it up 10 . But it seems the dominant issue at least in the analyst and wall Street Community is the carriage issue with comcast and whats going on there there is one firm that cut a price target because of the uncertainty surrounding whether or not starz would be on comcast in part of the bundle or would it be an extra surcharge for subscribers . Whats the latest there. Its a head scratcher for us, melissa. We have been a great supplier to comcast for quite sometime its a great Value Proposition that we give them. And ultimately they pass on to subscribers. So its odd for us that they would be saying we are taking you out of the bundle, put a couple of channels that we own and another one in that bundle not giving a discount or rebite are bait back to customers they say you can get it through amazon or some other place which is sort of disingenuous. Because what happens is in that particular case in an underserved community. If half of americans canned afford to write a 500check. Half of american families, to say yes take it out of the bundle you pay for it as if there. And on top of that get broad band and some equipment and you can subscriber to amazon prime, another 120 some dollars a month and charge you the ala carte fee. The importance of the agreement to starz is big, about 40 of domestic starz eentda from comcast about a third of domestic subs. The warning and see december 10th is when this they could i was going to say cut the cord thats not the right terminology but take starz off of the bundle. When was the agreement going to go to . Wasnt it just to the end of the year anyway. They say december 10th. Our deal is until the end of december again thats an odd thing for us because if you go on the comcast website and look at xfinity, you can sign up and one of the two or three big bundles they sell or market or on the website which includes starz saying if you sign up for a one or twoyear deal starz is included in the pricing. What toes that mean tend of december all of a sudden it disappears that to me seems rather disingenuous. Has lions gate been trying to get the doj to open a form investigation into this . Is there an informal investigation going on in which you are cooperating with the doj . Well i read the new yorks like everybody in new york seems to read. I think that theyve got letters from very prominent u. S. Senators, very Prominent Congress people around the country be the oddest thing for sus if you look at the business round table which i know the comcast people were signers on, they talk about taking care of their suppliers, customers and communities. This sort of flies in the face of that. So do i think the doj is looking into it . I would say that would be a question for them. I will tell you that if i were working at the doj and i was getting letters from u. S. Senators and congress people, as well as consumer groups out there, i might take a look at that. All right we should note that comcast is the pannarat company of this network. Just for housekeeping matters. In terms of how this plays into the streaming wars michael, it seems that some people are saying maybe its a great time to spin starz or tell it you can reduce debt, get out of the streaming wars entirely and focus on content content is king in this streaming war scenario what would you say to to that . Is that a possibility. Our john talked about this on the Conference Call yesterday. One of our jobs here is to highlight the value of what we put together and if you take a look at what lions gate and starz can do together, whether an International Launch were in 50 countries right now you couldnt do that starz couldnt do that without lions gate and the 17,000 Title Library and the ability to distribute this around the globe. So the industrial logic what have we are doing makes a great deal of sense. Yes the world in some cases is moving to ala carte and we are looking for a thoughtful transition and thats what most partners have been doing the people can take the bundle or get it ala carte process. But for us we believe the industrial logic of what we put together is working. All of our core businesses are going and quite well im happy to report it looks like i dont want to jinx it but midway will be the number one movie opening. And the numbers from joe drake and his team, they turned that around nicely. Television is crushing it. We are this giant creator of skoe content. It comes down to great people and creating great content and lions gate is doing that. Great to speak with you thank you for your time. Melissa thanks so much. Michael burns, vice clarm of lions gate what do you do lions gate. You look at the stock, a 32 stock in january of 2018 you see now. Despite the move today, less than 10 the quarter if you look at the numbers, the quarter outstanding. You can make an argument the valuation is extended. I get it but i still continue to believe its too valuable of a property to be trading as poorly as it had the last 20 or so months. How much is netflix spending on content this year 8 billion. Higher. Market cap of lions gate is 2 billion sounds to me like they should be hitting this from a different angle and maybe they get put instead of the acquirer get akwoird by somebody else and then you have a ready to make shop there. And you have some content. You have the studios in place. These things arent easy to do and sounds lake a no brain are to me. There is more come up on fast money after the break here is what we have on the docket. Gold bug or decline bull both under pressure this woke later earnings season is winding down but there is still opportunities to cash in on results. Well take a look at how Options Markets are getting ready for whats to come when fast money returns. 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Flag this its bitcoin versus gold why did this stand out to you. Its not just because bitcoin. Certainly im fan of that. What i thought was twag interesting. Both bitcoin and gold trade traded in tandem for a good portion. This we can we saw the same thing. Gold came on bitcoin came off. Dollar stronger. But whats different about this you expand that chart and move back and look at what happened, earlier in the week this is bitcoin in orange. And gold flat. Bitcoin up about 17 over the last ten days or so where gold is down. Why is that . Because china came out and said we are going to embrace blockchain at this point in time people have taken that to mean that cryptocurrency and bitcoin benefit from that. The point is dont be fooled by gold and bitcoin going down. They appear to be decoupling at this point in time. There is a story that china was going to allow bitcoin mining. Yes. And wasnt a prohibited industry i was wondering what i couldnt figure out if that was bade for bitcoin or gad for bitcoin. I think its very good for bitcoin. Two things good for bitcoin. One, the fact that they already have the mining in there and its been going on a while but now its not prohibi