Charles payne. This is making money. Breaking right now, stocks, weve seen a little bit of moxie but were seeing major defensiveness. Maybe this is why Piper Sandler at the beginning of the week said the relief rally is quote questionable at best. We have the author of that report at 2 15 im getting tremendous reaction to the economist asking if inflation is morally wrong. Keep comments coming on cvpayne or on twitter x. I will read some at 2 30. Speak of the fed, cash car remember said rates will likely hold for a extended period of time. He brought out his inner paul volcker. He is determined it looks like. Dont look know, reddit, reddit may save the ipo market. My take how unfair things have been, finally how you have run out of money. All that and so much more on making money. Charles you can still feel the anxiety in the air, i know you can, right . This is the thing. This is the pandemic index, panic index, rather. This is the month of april. It erupted right . Because listen we were down for the first time in a little while, like since last october. First time a lot of investors have faired any adversity, a lot of people headed for the hills. Heres the then though. We have come down very dramatically since then but still, you can testimony again, there is a fair amount, lets call it fear. The fear and greed gauge. This thing has been stuck in fear for a long time. Even after we had the big strong days, right . We had four or five days up pretty nicely. Weve been in the fear gauge for sometime now. You got to wonder what is going on here. I dont necessarily think it is fear but i would say the action, the action in this market really turned defensive, right . Look what is working right now, your traditional safe havens. Only two areas gone to new 52week highs, utilities, staples. Those are the classic areas when you want to hide out. In fact, look at this thing. These are utility stocks, the xlu. 50 of them are at new highs, right . So new 24week highs. That is where the money is going. The problem though, this will never, never lead the market higher. You say okay, there is a lot of fear, there is a lot of anxiety, whats happening . I dont know because here is the mixed signal. There options you can use to hedge in case the market will have a sharp pullback. They have disappeared. April everyone was loading up on them, maybe thinking the worst was over. April faded away. Here we go. My next guest says the april showers seem to have brought mayflowers to the market. B. Riley chief Market Strategist art hogan. Art, the april selling scare it feels like it is over but it hasnt been replaced with the sort of oomph we had in the beginning of the year. Yeah. Part of that scare heading into april we just had a run of about 26 on the s p 500 off the october lows without a 2 correction along the way. So the market went unidirectionally higher that will be always looking for a reason to sell off. Market delivered two distinct reasons to sell off. U. S. 10year went up 40 basis points in 10 trading days. Wti went up to 87 in four trading days. There were reasons behind that. Energy spike was a catalyst of result of iran and israel tensions. That eased a bit. We had betterthanexpected economic data. We had much larger of creation of jobs in the First Quarter. We certainly saw a bit of a surprise in terms of inflation picking its head back up. I think both those things have dizzy dissipated. I feel like april heading into may if those thing calmed down, if investors look at reporting season well calm down a bit. Charles lets look at that were in the midst of that now. Tremendous amount of earnings beasts. 80 on revenue. If you miss on revenue by even a small amount youre taken out to the woodshed. First quarter were doing better than anticipated. Wall street looking for eruption in earnings. I kind of like it when they look to go the other way. Could this actually become a headwind if earnings dont come in as great as we anticipate now . Yeah, it is interesting. During the Quarterly Earnings reports season estimates go higher not lower that typically confirms t tends to work the other way. Finish or Earnings Reporting season estimates come down. We thought First Quarter would being 3 1 2 to 4 . It is about 5 right now. Im guessing if we continue to create jobs on a monthly basis and the economy continues trend better than the mean which the Second Quarter will already look like it will be about 4 according to the atlanta fed, those estimates will like light when we head into the Third Quarter earnings season. Charles that would be something. Barbell approach on one side. You have energy, financials and health care. What do they have all in common that make you comfortable being in right now . Plenty of mean reversion. Energy worstperforming sector in the s p 500 last year. One of the best performing sectors in the s p 500 this year. We like that a lot. Still only 3 of s p 500. We think that expands to 5 over next 12 to 18 months. Financials again very poor performer last year. Interest rates are coming into their favor. When you think about health care, unless youre glb drugmaker lake novartis or lily you have been ignored. I think health care has a leg up this year. Charles on the growth side you do have some criteria here. Liquidity is strong, free cash flow, solid defensible leadership. I guess that is having a really big moat. Feels like when i look at these it takes us back to the magnificent seven, maybe the top 10 stocks . To a certain extent that is where it falls in but we look at the magnificent seven saying okay what hasnt performed this year . Apple is good classic example of that. Apple has a lot of important things to deliver. Yesterday with the new ipads First Time Since june 2022. Worldwide developers conference. What is important to remember about apple theyre a fast follower. They havent raised their hand what we do with a. I. You know they will in june. They will deliver something exciting we didnt know we needed in the fall buying cycle. It is multiple and certainly proven to be shareholder friendly use of cash in the last dividend. Buybacks. You know, i got to tell you, art, the even, the right before they posted their numbers i did the show, well need more than a buyback announcement. Little did i know it would be like 110 billion. I still think to your point we better start hearing more about a. I. Because apple has fallen out of favor. Maybe to your point also, maybe that is why you want to buy it here. Art thank you very much. Appreciate it. Thank you. Charles all right, my next guest says this being an Election Year changes everything, including the urge to sell in may and go away. Nicholas Wealth Management president david nick last. David, what is so distinct for you this being an Election Year that would give us more confidence to stay in this market . Charles, i can give you a 100 years of data shows you Election Years the market does very well. What is interesting when does the market do well . Formally the back half. First half of the year some uncertainty. See some volatility for markets but it is the back half of the year we see markets take off. If you look at some years that were down, 2000, 2008 were the only two years where the market ended up down during an Election Year. What did we have . We were in the midst of pretty big recessions. Were not in that. This is the first year of a president s reelection term. We actually have had a never year in market in first term of reelection campaign. Im telling clients and investors fight the urge to sell. Charles one of the things you can say help fight the urge, bullish sign of s p 500. This is the a day moving average. We 50day moving average. We crashed below it. Now were above it. You like that we come back. How long do we stay there and start making new highs to get really, really bullish here . It is a great point. We, i want to see a multiweek close above the 50day moving average before we get very confident but i think were seeing breadth. I know it doesnt seem like that on the surface. Eight out of 11 sectors trading above their 50day moving average. You bring up utilities. Utilities reestated are two highest yielding sectors s p. They wouldnt be below averages. What is that telling us . Not just Interest Rates it is not just inflation. You have a safety versus risk play. When you see sector like real estate not performing well, i think that tells us there is credit fear for the markets for real estate. If they believed markets would go higher, utilities wouldnt be where they are. That is bullish sent men. Charles what is interesting for the last year, maybe two, the big mag7 have become the defacto safe havens. Looks like were back to traditional safe havens. Speaking of stock picks, i have saw your list, when david bowie and queen got together recorded under pressure. These are names we know. Theyre under fair amount of pressure. The only company with more bad news about tesla is boeing. You say this is an opportunity to buy it though . You are spot on. I love a sale. I dont like a sale at target because my wife has a great time. Outside of target i like sales on stocks. When i go buying. Meta is down 10 from its highs. Palantir is down 20 . Tesla down 40 from its highs. These are not failing companies. These are companies slowing significantly. They are still growing revenues top line and bottom line. You want to go shopping the time to get in the names now which is why were putting money at work. Charles david, let me ask you a about a name i played on and off for 15 years. Viva systems. It is not on my radar. I seen your list. You have a six month chart. Gargantuan gap. Must be earnings related beginning of april. Why would you start to buy this stock here now . Yep. Great point. If youve been a longterm investor in the stock you can be very frustrated. Here is why i think it is a good time to put new money to work, look at the Life Sciences sector i do like this sector but if you look at the way viva is going. It is an addressable market. They are minority in the market of 12, 13 on a market continuing to grow. Think about economy beginning to slowing, Life Sciences well see higher growth relative to the rest of the economy. Veeva is a name in that sector. If you have money to work i think a year or two charles i like fundamental Value Proposition stories to go along with technical analysis. David, thank you so much, my friend, talk to you soon. Thanks, charles. Charles obviously my friends caution is in the airplane. My next guest said the recent relief rally it is questionable. We have jailing from Piper Sandler to explain it all to you. You might want to buckle up for this one. Well be right back. Sup . Who are you . Im your inner child. Get in. Listen, what you really need in life is some freakin torque. What . Horsepower keeps you going, but torque gets you going. What happened to my inner child craving love and acceptance . How about you love and accept this . Pppppowershot when can i drive . You already are the dodge hornet r t. The totally torquedout crossover. Investment opportunities are everywhere you turn. But at t. Rowe price, were letting curiosity light the way. Asking Smart Questions about opportunities like advances in healthcare. And how these innovations will create a healthier world tomorrow. Better questions. Better outcomes. And theyre all coming . Those who are still with us, yes. Grandpa whats this . Your wings. Light em up gentlemen, its a beautiful. Day to fly. Charles so theres a headline that grabbed my attention on monday, right . The relief rally is questionable at best and stocks finish theyear lower from here says Piper Sandler . Well obviously we had to get to the person who came up with this report. Joining me now Piper Sandlers chief market technician craig johnson. I read your report. What i read it said it was too early to say if fridays stock market rally could become more than a relief rally. You would prefer to see a waitandsee approach. Did this article take certain liberties here . , charles that is exactly right. What weve been seeing for this entire year 2024 obviously an Election Year, were expecting this market to define a high level trading range, hltr. This market will end up stuck in a range. Somewhere around 5200 at the upper end, 46, 4800 at the lower end and over the near term here we think the market needs to correct further and chop around in this range. When i look at this market, when i look at what your brier guests talked about, charles, the composition of this advance off the lows were seen a week or so ago, being led by electric utilities, being led by staples, led by financials and youre not seeing tech really drive this market higher like weve seen before. Too early to call it anything but a relief rally. Charles of course that growth sector has been phenomenal. In your report, something caught my eye is seasonality. We have may which is a little bit historically a bullet more negative than positive but looks like the rest of the summer might not be a bad time to be in the market. If someone is looking for a few weeks or a couple of months to trade, would that be an okay period to at least hang in . Well, there will be some trading opportunities. Were still overweight tech. Were not saying to people that you need to exit all your tech or exit any of those names. I think you need to be a lot more selective through the summer months coming up. But again, keep in mind when i go back to look at the history of all these sort of Election Years, charles, we found youre typically strong in q1, you are neutral at best in q2 and q3. Then you finish higher into q4. This sort of high level trading environment is going to lead to some trading opportunities. Again we still think tech is a place to be overweight but it doesnt have to be the mag7 stocks. Charles right. It could be other names like micron as an example or klatencor, some of these other names. Also mapped out the new highs and lows for the past four weeks as a percentage of the sector. On the winning side basic materials, industrial manufacturing, on the downside, technology. Maybe this is again buying the dip. These are areas that become poplar in part because of all the money cascading into this economy. What is your view being invested maybe not in traditional safe havens and if people are worried about the hot betaness or volatility of the big tech names . You know, charles, this has been a very concentrated market really coming off the october lows. By the way we were super optimistic, super bullish coming off the october likewise. For us to rein in the bullhorns here a little bit and be a little bit more conservative about this ties all together. Inn those charts specifically help tell the story to us. If were starting to see basic materials, were starting to see zoom of the industrials, starting to see parts of the market rather small parts of the overall investable Market Making new highs and tech is sort of rolling over it will be hard for the popular averages i think really to take up to the upside. The risk is to the downside, not to the upside. Charles to your point this chart tells a story. Maybe if youre nimble and look for individual opportunities but materials, industrials, utilities, they will never lead a bull market thats for sure. Correct. Craig, great work. We really love it. Thank you. Thanks for having me on, charles. Charles see you soon. Hey, American Workers are calling inflation a moral dilemma. Economists and the white house dont see it that way. Mischa patel, Danielle Dimartino booth on a segment you must see. Well break it all down for you next. At enterprise mobility, we never stop looking for new mobility solutions. Because sometimes the best road forward, is the one you didnt expect. Known for following your dreams. Known for keeping with tradition. Known for discovering new places. No one wants to be known for cancer, but a treatment can be. Keytruda is known to treat cancer. Fdaapproved for 16 types of cancer, including certain earlystage and advanced cancers. One of those cancers is earlystage non small cell lung cancer. 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Charles i think probably the most important story in america today, and its reflected even in political polls, the growing divide between the have and havenots. It has become so extreme. Blami