Maybe call it the ultimate catchup trade. If you missed the markets record rebound, fear not because we have three stocks that could be primed to pop later, tiktok you dont stop giving us news, that is. Theres a strange new suitor for the red hot social media app that our traders have our own take of who should put a ring on it so much to get through in the next hour, but let us begin at the beginning a brand new record close for the s p 500. This is by far the fastest bear market exit in history it has been just over 100 days since the benchmark index plunged with lows of the year. Need i remind you of the pandemic panic of march. Were up 55 since then. Its close today by the ever so slimmest of margins putting an official end to the bear market. Guy, the market acting like the pandemic induced lockdown and mass job losses simply never happened is this all, thank you, mr. Federal reserve . Of course it is y the Balance Sheet in february was 4 trillion, now howevering on the side of 7 trillion. You have to say with some degree of certainty that the fed had a lot to do with this. Whether theyre in there or not, the market believes they are thats good enough you mentioned jackson brown. He sang the pretender which i think a lot of people think this market might be. Another one is here comes those tears again. Were at levels that the tears mi might be coming soon the euphoria index is literally off the chart. The market cap s p 500 to gdp is even at levels that Warren Buffett would consider ridiculous were probably north of 170 now. A lot of people say it doesnt matter because the amount of liquidity in the system. I get it but at a certain point it matters. At a certain point a lower dollar is going to be bearish for equities my fear is were precariously close to those levels. Well talk about the dollar in just a minute here. Think about this fact here youve got the fed, five nice and, im sure, very smart people, unelected officials. Five unelected officials running a Balance Sheet which is almost double the annual federal budget of the United States which is essentially run by 535 elected women and men. What do you make of this market rally here is it all the fed or is there some element of maybe the market believes were going to get through this faster than some of the ultra negative headlines we read every day when you look at positioning, the street is still positioned pretty defensively youve only see about 20 sboo 2 billion into equity flows. Also think about this idea of this divorce between the real economy and the market go back and look five, six, seven months off any major market low in history. The economy is typically not in a very good place. To think this divorce between marketings and economy is unique, i think is historically incorrect. Its actually quite common when you look back. You put this in context, down 35 from february to march, up 55 off the low, 103 trading days to a new high. Its actually the third quickest recovery of a bear market. 1982 was faster and 1990 those declines were less but the magnitude of the rally was similar. There is some historical precedent for this i dont think its quite as unique as many think it is wow i did not know that. Maybe it was just the depth of the decline here either way its pretty gdoggone fast bonawyn, the stock market is not the economy. That has always been the case and it will probably always be the case will this gap between the real American Economy and the equity market ever get closed by the equity market coming down or will all that money we just talked about just continue to p power us higher in the coming months and quarters . Great question. It definitely is a chasm between the equity market and the real economy. The s p is a leading indicator visavis the real economy with that said, for us to continue to grind higher aside from all of liquidity and money that is on the sidelines, the real economy is going to have to close that gap so that we have some followthrough to the upside if you look at bankruptcies, if you look at where the consumer is, granted wea eed weve had sf the leveraging in the cycle from the consumer but you see that being made up through corporations i think liquidity is a large part of that we have only met the expectations that are priced in. For us to continue to grind higher, there is going to have to be some closure of that gap. This is the sad irony, is that maybe the worse the news gets for the overall economy, the better that is for the equity market because it keeps the fed in play. I mean, is there some kind of weird element to that . The fed put is what we used to call it. Is it bigger than its ever been right now . I honestly think were past that i know we were in that fed put situation for a long time over the past ten years, but i think the fed is so entrenched in the zero Interest Rate environment and the guidance is so clear that people actually want to see the economy Getting Better were talking about bridging this gap and we keep talking about the fed. But the one thing i think could give the market trouble is i think the market might need to force policy makers hands in terms of that additional stimulus deal. I think we need it its been Income Growth. You think about unemployment skyrocketing, but Income Growth actually rising as well. In order to continue to underpin this environment where investors are able to bridge the gap between today and this future state to which theyre clearly looking, were going to need the stimulus especially at these levels where you look at the b of a fund manager survey investors are as bullish as theyve been since february. I think people are expecting a vaccine in 2021, so a fair amount of optimism positioning is not overly aggressive if were able to get that additional fiscal stimulus, which i think we ultimately do, then i think we can bridge that gap. If Economic Data starts to get incrementally better, you probably want to be underweight the mega cap growth trade and you probably will see cyclicals do well. I think between now and the election we may revert back to the growth trade where investors feel safe. I dont want to lay it all on the fed. Its also Congress Congress is passing stimulus somebodys got to fund that through deadi issuance. Nancy pelosi said today were getting close. But if we dont get it for some reason, what happens i mean, the logical answer would be the market sells off. I know brian kellys one big concern has been what you just said the market doesnt seem to really care about anything right now. Its impervious. In a day or two at max youve had a vix thats gone from 80. I think it closed around 21 or so thats been coming down. The market is in cruise control. For example, apple since the march low has added to its market cap over a trillion dollars. Think about that for a second. We used to talk about a trillion dollars as a magical number and apple just in the last five months effectively has added it to their market cap. Today for example amazon added a target to their market cap so the numbers flying around here, weve become somewhat desensitized to it but its something worth pointing out. That could have been an rbi i might steal that stat. I love it. Apple at 1. 976 billion closing in on that 2 trillion. Lets follow this up now with something that jeff just talked about, actually Income Growth. If you have a job, youre not traveling and not spending money. Youre probably saving a lot were getting new numbers on retail trading activity and maybe a trillion more reasons why stocks keep going up its a big story lets hit it right now with kate rooney. Fidelity reporting record customer assets last quarter thanks to this boom in retail trading. The company had 3. 3 trillion in discretionary assets at the end of june. Fidelitys total assets under management which include assets from Advisory Firms increased 8 to 8. 3 trillion. Customers opened 1. 2 million new retail accounts in the quarter trading more than doubled with an average of 2. 3 million daily transactions in the quarter. The firm citing market volatility and the pandemic as drivers for that quarterly growth it sounds a lot like what weve heard from publicly traded brokers and robinhood as well. Hold on, kate were not done with you yet. Are you saying if somebody is free, youre going to take advantage of it . Is there anyway to directly tie the stimulus checks to trading activity have we made that connection you get the 1200 bucks, lets just throw it on robin hood and see if i can make it 2 grand. Theres been a couple of reports that show that it was Something Like 70 of stimulus checks that went into the stock market other things like commissions and fractional trading, you see fidelity and Charles Schwab advertising stock slices so you can buy an expensive name brand stock for as low as 5 free trades i think has been the big factor that analysts point to jeff, your take amazing data youre talking about incomes if youre saving money, a lot of people appear to be putting that into the equity market. I think its a good thing generally. Everybody was complaining for so many years that the younger generation, the millennial generation wasnt investing in stocks now all of a sudden they are and i feel like youre getting complaints on the other side as long as people are doing it gentintelligen intelligently, i think ultimately its a good thing since people have started investing its been a really easy ride. You hit a rough patch and you wonder how sticky some of those additional accounts are. Its a good trend. Id rather see the money invested in the stock market than a lot of other places so far i think its a good thing. Now were complaining theres Retail Investors you cant have it both ways. We know now that the market has bounced back in a bigly way. But many of you may have sold during the march panic and are now probably kicking yourselves for missing out on the rebound have no fear because chris is back with three names to play. What i think is important here as we saw with the s p down 35 from february to march, got to remember a lot of names out there peaked well before the market peaked. The three named were going to talk about peaked in early 2018. Caterpillar i think is a great example to start its basically cut in half over the last several years i think its improving here. Its on the verge of breaking through this 145 level the technical condition here is improving. The group industrials are improving as well. 50 days now up to the 200 day. You have a lot of trend support. I think it makes it a catchup candidate over the next number of months. Morgan stanley is a stock thats really dominated relative to its peers, outperforming goldman sakes. Its kind of endured a twoyear bear market. Theres good support near 49. 50. If you get any weakness into that, you want to be a buyer thirdly, lets go over to pharma and talk about pfizer. Multiyear down trend. We think this is coming to an end here its really coiled to rally. We have this nice bottom thats taken shape over the last year or year and a half i think were talking about a 50 or 55 stock here. I recognize new highs for the index can be intimidating but these names have endured multiyear bear markets. We think theyre all starting to improve and quietly exhibiting some leadership, so cat, Morgan Stanley and pfizer three good names here. Pfizer is one of the hot names on the vaccine side, coming back but still well below where it was a couple of years ago. I dont think pfizer is in play for a vaccine necessarily you have some potential tailwind with that. Its too cheap and its clearly lagged some of its bigger competitors, for example eli lilly. I like the caterpillar one that 135 level seems to be a line in the sand i think you can get back up to that 150 level we saw back in late january, early february. Wow bullish call there for caterpillar from mr. Guy adami. Coming up, call it a big box blowout. A pair of retailers reporting rock solid results why didnt their stocks respond a little more . Later on as tiktok takeover talks heat up, were going to play a game of matchmaker. Look here, its your very own allinone Entertainment Experience xfinity x1. Its the easiest way to watch live tv and all your favorite streaming apps. Plus, x1 also includes peacock premium at no extra cost. This baby is the total package. It streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. Yup, the best really did get better. Magnificent. Xfinity x1 just got even better, with peacock premium included at no additional cost. No strings attached. Welcome back to fast money. We have got a market flash right now, some realtime breaking news on Sorrento TherapeuticsContessa Brewer with those sorrento had received fda clearance earlier this year, emergency authorization on a saliva rapid test for coronavirus. Yesterday its stock plummeted when a competing company got the goahead to pursue the same thing. Now more bad news for sorrento, down 10 its cfo is out and theyve hire add 38yearold to come in as the companys chief financial officer. There youre seeing the stock moving on that news. Interesting headline. Guy daadami, we have a Company Whose stock is up over 400 in a year were talking about best in class saliva covid test coming from this company. Everything is firing on all cylinders and the cfo suddenly leaves and it doesnt sound like on his own accord. Waiting for more details but thats a bizarre headline. Waiting for more details is the operative. It seems like three or four days ago this was a 19 stock up from 2, i think, in early spring, maybe rightly so whos to say in this environment . Off all those great head lineups about tlineuheadlines about the test you just cited. Its not particularly encouraging. I dont think you buy it on the weakness its hard to say what you do if you own the stock. Just looking at it, you know, when a stock goes from 2 to 19 in 3 1 2 months and now its basically cut in half from there, thats somewhat concerning. Ill give you the headline here, jeff mills im not asking you to comment on the news but comment more on the headline as it pertains to any company. Im going to read you the exact line for the press release the cfos employment terminated in its entirety effective immediately. So he was fired effectively immediately on a red hot stock this is going to be a name that i have a feeling were going to hear a lot more about in the next couple of hours and particularly tomorrow. When the cfo is terminated effectively immediately, theres something usually behind it. Theres something usually behind it but you dont know exactly what it is and you dont know whether its going to affect the fundamental activity of the company i think it points to the idea when you have a stock thats moved like this stock has, its vulnerable to these types of headlines. You can look across the market and see some of these companies that are trading at valuations that might be tied to some sort of coronavirus treatment or Something Else it just means that higher valuations are more vulnerable to these kind of pullbacks especially when investors are speculating that the future is absolutely perfect. Were watching that stock tick down as were talking about it the cfo terminated effectively immediately. Moving on, a pair of big box retailers reporting blowout results today but youd never know it by looking at their stock. Lets kick things off with walmart. You might have heard about it, little startup out of arkansas walmart says ecommerce sales nearly doubled last quarter getting a boost no doubt from the stimulus checks. But clamming up about the rest of the year, not giving any guidance bonawyn, your thoughts on walmarts trading today . Talk about what have you done for me lately. You touched on the online portion of their business almost doubling they came out and were very transparent about the fact that they saw sales start to normalize a bit in july and that some of the spinning was led by the stimulus this is not something thats off the table. The stock is off moderately. Its hard for me to call it much more than noise. Its shown its been able to navigate this covid situation quite well its got about 50 of its revenue comes from grocery items. I still like the stock here. Lets move onto another big name that is home depot it lost investors a little over 3 a share today even as sales rose 23 last quarter. Of course everybody you know is probably taking on a Home Improvement project during the pandemic by the way, just try to find a contractor right now home depot sales surging 25 last quarter jeff mills, whats wrong here . All the gains already bought in . Well, i think maybe for now to follow along on bonawyns point, i think youve had this spending redirect its been very clear. But how long does that go on, for maybe another year i think this narrative that the world has changed forever in every single way is probably overdone ultimately consumer dollars will start to get spread out again. People will go out to dinner and take vacations walmart started to see some sales normalize as the stimulus checks started to wear off you wonder what is left in these names whether its walmart, whether its home depot. I like lowes better just from a valuation perspective. Typically home depot trades about two times higher than turns. Right now 4 1 2 turns. I do like that over home depot but i do think ultimately those stocks could be in a position where if you do get a stimulus deal, you get a little bit of a shortterm pop on deck, the market sputtered for days before posting a new record close coming up were going to be joined by mike wilson to find out where that might y that mig for concern. Later, a natural gas breakout something we havent seen or talked about in a long time. Before money, people traded goods. Tools, cattle, grain, even shells represented value. Then currency came along. They made it out of copper, gold, silver, wampum. Soon people decided to put all that value into a piece of paper, then proceeded to wave goodbye to value, printing unlimited amounts of money as they passed the buck to the future. Thats why its time for Digital Currency and your investment in the grayscale funds. Go digital. Go grayscale. And then found the home of my dreams. But my home of my dreams needed some work sofi was the first lender that even offered a personal loan. I didnt even know that was an option. The personal l