It was an excite diego. The dow rallying. The nasdaq did close at a record high. The host of wall streets at the white house. Financials were the big standouts. 2 saying he would roll back bank regulations. It wasnt just a bank rally. Energy, consumer staples, industrials. I think weve been steadfast. Weve talked about the vix and vix closed below 11. Today i think it trades single digits. Is the rally still on . I think the rally is still on. You see what they did today. Gary led the charge with his comments. I think Goldman Sachs continues to go high. It held at that 225 level. I think we blow through that and maybe test three handle which would make sense. That in my opinion puts about 1. 8. The banks were the story of the market today. Right . What you saw was really interesting. It was all on this regulation flight. You have the bond market. The yields going a little lower. Not too much because we have the wage growth. But the banks never looked back. So we, everybody has been waiting for that dip. I dont know. It may not come. Particularly if the banks would lead and break out. Are you saying to guy banks here . Yeah. I was waiting for a dip on zmoes i dont think ill get it. Get your popcorn ready. We knew it was out there. Because everything that drove banks higher is the kind of stuff that can continue on give investor something to fall through. The north america of going after dodd frank and rolling that back, the headline today that gives you more momentum. Either way, removing the same presence that was hanging on banks while the economy is Getting Better ask Interest Rates going higher. So yes, financials. The things to watch, small caps, resoundingly back. Airlines are back. A number of things. A coal company was on the nasdaq. Things going on that we havent seen in a long time and youre getting a leadership, a broadening of the market. Positive momentum. Lets be clear. I was ahead of the banks rate and i believed in it. Well say, be very careful. Well probably have until the end of the summer but it will be years before you see meaningful impact. You talked about the fact he is going to get out there and force the treasury and force the regulators to make change, right . Just like when you heard about drug pricing. The president has the power to change. It doesnt. Correct. Until that point in time when people are looking, investors are looking. We have a clear path to the summer and then be very careful. I would be a lot more nimble than that. Were 12, 13 guys the presidency and look how much hes changed. The whole entire world could change by summer. Even if you say, buy the breakouts is that the banks, be very, very nimble at these prices. The trump trade is reignited, i want to say. So what happened . Technology that we talk about technology specifically. If you want to say amazon is a technology, maybe it is. Think about amazon making a big deal of it. It is back to levels we saw. Names hanging in there. Intel nangs there. We talked about it at 38. Maybe down to 36. You got that level. So microsoft to my opinion is poised to make another move. So i dont think you can broad Brush Technology but i think names like intel. Apple i still think makes the challenge at the 134 level. Even texas instruments. Look at health care. Since i look back three months. Theyre up 30 . I think they can continue to work through summer. That you do i see, were seeing investors getting really comfortable and starting to tick away at health care in a way thats pretty interesting. Not going in head first. Youre seeing some emanating stuff taking place. What did you do . Well, the markets, put me on pay roll. Wave place where emerging markets have been outperforming the developed markets. Mexico, up almost 11 since two weeks ago. Add in some russia and brazil. I think in base metals in mid december, it continues to be that you buy. To the point, look at gold and silver. If youre talking about a reflation, inflationary trade. We had some fed comments in the afternoon that you might get some like in march or theyre open to that. You saw gold and silver trade very well of the as well this morning, we had a mixed job. Lower wage growth which might that inflationary trade. It is still a theme thats holding up. Dont look yet but it is on a source against. Look at, they have 5 . You talk about a stock within 5 of its all time high. We talked about it for a while. So health care was in the cross hairs six months ago. It is no longer in the cross hairs. We mentioned the financials are the best performing the. Which are the names to call . Mike mayo joins us now on the fast line with his take. Give us the cold hard facts . In terms of our hopes for deregulation for banks . How fast can we see something done in your view . Well, first i want to make the point that yes, they were bullish on u. S. Banks even without the trump trade. Take the trump tradeoff the table. I hear you say banks, we think theyll be excellent investments over the next three years. Weve that, the trump trade. And yes, you have regulations. So on the one hand, dont get carried away with the deregulation. Banks need to be saved. The point is banks have the safest Balance Sheet in a generation. So thank you, regulators. Youve done your job. Not one but two global xhings crises and still have cap and Balance Sheets that exceeds the minimal level. But there are three issues with dodd frank that could be addressed. Number one is the red tape. The u. S. Banks are on a pace has 100 billion of regulatory and control costs over five years. Thats 100 billion. A portion which of can be used to make loans. Number two, regulation is in a black box. The rules keep changing. And third, it has been a little overdone. And heres one example of how far regulation has gone in materials of the red tape. Look at jpmorgan. Jpmorgan alone has a regulatory and personnel eek twool filling up Madison Square garden two times. Jpmorgans control people, they can fill up Madison Square garden twice. Thats a ridiculous number of people making sure they stay safe. Yes, you need a lot of people. Yes, you need to spend a lot of money but not this much. So the regulatory pend lum, this far too lax and we spoke a lot about that on your show. Now way too far and the regulators are too strict. It was a happy mid play here. Mike, its tim. Youre a surfer. Surf the banks. What is the biggest part of the model . Is it for the integrated, is it truly lending . If were going with the surfing analogy. It is not the type in hawaii where banks go for the big waves where they get it and get crushed. This is a slow, steady way. So traditional spread revenues. They are now starting to expand. You have net interest margins at bay. At the lowest level in 60 years. And youre seeing it normalize which isnt anything when we work in our spread sheets and our financial model. Thats great. The 50 of Bank Revenues and pushes them higher at a time when you still have self help. With regard to expense control. Aided potentially by the deregulation. Appreciate it. Have a good weekend. Morgan stanley, Goldman Sachs. I was looking at the regionals, too. Kre does the regional. Smaller banks should benefit. I also go kind of a Second Derivative change. Look at high yield. Remember one of the biggest problems with high yield is the lack of liquidity because banks couldnt be a market maker anymore. You may have more people willing to get into that, especially if the economy does better. I think they benefit well. I learned a little about, the interest margin. What if yields start to roll over . What if the borrowing demand isnt there . Folks, if you think that theres less regulation, you have to go after the guys most beaten. The most this global pullback on mexico. So if you think thats better. City bank is the one opposed to jpmorgan with a lot more room to run and congratulations to mike mayo who was updating these banks nine months ago. Thats what we like to see. U. S. Bank corps made an all time high today. They do have very conservative management which has been great for them. I think it will go well going forward. U. S. Bank corps. One of our traders says theres something in the xharts could signal a turn around. Hell tell us what it is and how to profit. Plus, filing and it could be a good thing for twitter. And later, what do donald trump, which and lady gaga have in common . It could have some folks making a lot of money on the super bowl. Isnt that right . Yes. Super bowl and super betting. Like whether or not lady gaga might show cleavage. That when fast returns. Iful ll we ou thest averagrnpoial goa givel l ic well talk, . Inpsom doi righ cme ly it ght. Whoout. Inpsom doi righ cme did you know slow internet can actually hold your business back . Say goodbye to slow downloads, slow backups, slow everything. Comcast business offers blazing fast and reliable internet thats over 6 times faster than slow internet from the phone company. Say hello to internet speeds up to 250 mbps. And add phone and tv for only 34. 90 more a month. Call today. Comcast business. Built for business. The stock has rallied 170 in the last year alongside, also alliance resource. Both up double digits. Kicking off what could be the biggest surge in coal ipos in decades. Are these stocks a little too hot to touch . If youre buying a coal company, make sure youre buying the Balance Sheet. The coal prices are up significantly. Its exciting to hear that there is a coal Company Going public. Again, this industry was left for dead. It is about supplies. If you want integrated, theyre best places to play. Ill add to that. I think that signals this deal that was priced at 13. 5 up. It really signals i think what theyre seeing from a demand perspective. They priced 6 million shares. The company sold 3. 8 million shares. Its 38 million shares. Theyre going to have to issue more at some point. Too cheap, up 200 some of shes names. If you take look at, lets look at the names you mentioned. Theyre up 200 over the last year. Do we really think the demand for coal has changed that much over the last year . Look. Youre right. And theres a reason these are trading but they were trading like they were going out of business. So up 200 doesnt mean it has gotten 200 better. It means it traded from the levels of bankruptcy. Tim mentioned the derivative play. He was on this one and it being u. S. Steel. Trading 8 or 9. And it looked like one of those companies and was going to head to the very low single digits. Here we are. It trades 3 up and down seemingly every day for the last couple weeks. But i have to tell you something. Cold companies arent going, theyre not going public unless they see something out there in the environment and steel to me is the most interesting sector. Although u. S. Steel reported a less than stellar quarter, youre talking about a level that with a couple pieces of good news, it could go up significantly higher. New corps is another name in the space. If you want high risk, high reward. Letter x. A couple mentions of infrastructure, a couple mentions of u. S. Steel in the pipeline and that stock moved a lot. Tubular steel prices are getting significantly better bids and we got to the story where people thought they wouldnt be made in the country. The protectionism for u. S. Steel. Jpmorgan is one of the top picks. So the reinforcement is about cash flow generation. Thats the story for these guys. If they have it, you want to own them. Theyre good Balance Sheets. Disney near 50. If you missed out on the rally, fear not. One of our traders has a way to make even more cash. Youre watching cnbc first in business worldwide. Well have a special report. Plus, it is the contrarian frayed has the smart money in a tizzy. And well tell you what it is and how to profit. When fast money returns. Forget picking the winners and losers for the super bowl game. Heres a list of crazy things you can bet on. The money being wagered in some of the weirdest available. Reporter this season nfl ratings may be down but the bets are up. The patriots are still favored. A relatively high scoring one with the over under with a total score of 58 and it is estimated, 4. 7 billion will be bet. Most of it illegal. And there will be a half billion more than a year ago. So so many more unusual bets. The over under on how many times donald trump is mentioned is 1. 5. That does not count lady gagas halftime report. So likely we see tom brady the, one or none. I dont think ive ever seen it. Heads or tails would be even odds. If the patriots win, belichick and tom brady will shake Roger Goodells hand on tv and in the oddest bet, whether lady gaga will show cleavage at halftime. Odds are yes. The last time, Janet Jackson had a wardrobe malfunction. Lady gaga cleavage, that inadvertent show of purpose include on purpose show of cleavage . This is on purpose show of cleavage. The entity there will not be a wardrobe malfunction. Can i ask her a question . You reside in california. But youre in texas now. And i have to tell you something. Digging the hair, jane. You have some big texas hair going. Can you speak to that, please . Reporter you know, these texas hair dressers. This woman had, it was like the a six shooter in each hand with hairspray. This could withstand the Nuclear Holocaust right now. I only have three hairs. A miracle worker. I was joking when i said on purpose. It is actually delineated in the bet, its on purpose. You were joking . Again, a wardrobe malfunction as opposed to intentionally showing cleavage almost sounds like get it out there in the open. 3 grand. Lets bring this back catch scene overs take bets, right . In the casino world, where would you go . I think as long as theyre not playing the new york giants, the patriots win super bowls. Shes asking for a trade. No selling doing touchdowns stocks. Serve confused here tonight and i dont know why. Touchdown trade. Touchdown trade. Mattel. This is a stock that got sacked. A 6 dividend. Bar by is taking the market share. This is a touchdown. Ill say visa. Visa is a name we talk a lot about on this show. They crushed earnings. 86 share. The cross border transitions were very solid. They get easy comps. It will continue to go. Now, listen very carefully to the weird sound effects they have underneath these picks. It is bizarre. Was that you . That was guy. Im going with the new york picks. It is more of a trump pick. You have the tweeter in cheat out there every day basically advertising a fouryear company. Yes or no, youre watching the game . Patriots lose. Falcons, 3431. Google. We said that in after earnings. You know what i put it down . Rallying now. Options actions starts right after this break. All . scaki l s tea wth sks he irtto t t valwawothe pitaisea, not stealth, but ingsha. S wont replace the full value of your totaled new car. The guy says you picked the wrong insurance plan. No, i picked the wrong insurance company. With Liberty Mutual new car replacement™, you wont have to worry about replacing your car because youll get the full value back including depreciation. And if you have more than one Liberty Mutual policy, you qualify for a multipolicy discount, saving you money on your car and home coverage. Call for a free quote today. Liberty stands with you™. Liberty mutual insurance. They are getting ready behind me. While theyre doing that, heres whats coming up on the show. Oh, snap thats what they were saying about snap chats ipo. But they are looking at another social media stock. Well tell you how to play it. Plus, the bond market is doing something very strange. And could it signal the next contrarian trade. Well explain. And missed a run on disney . Relax. Because we have a way to buy shares of the