Pausing phase. I do believe it does. I mrs. Think 2300 in the s p p is important. Those are the targets for a lot of those on the street. Getting to 23 will be good. It is nice and diversified, the rally today. I know financials are leading. It is clearly from a technical standpoint, something that is sustainable for the market. You are 6. 5 points away from 20 on the s p. Do you think this is sustainable . Sure, why not. We got the election, the trump rally and you kick off earning season. You have jpmorgan and bank of america knocked it out of the park. 52week highs on virtually almost every single stock. We had a little bit of a pullback and rotation. We are seeing m e goia going on. I think they are going to get more kicked up as we get closer to the middle part of the year. We are just at the beginning of a rally that could last. Do you think that retail is coming in . Do you think we have started to see anywhere near the full extent of a rotation from bonds into stocks and f noif not, whe will we and why . I dont think we have seen the full extent. I think it is going to happen. It is going to take a while for them to break that 30, 35year bull market. They are going to give up the ghost. Thats going to happen over time. It will be very positive. In terms of the retail investor, we have been waiting for them for 15 years. They are going to continue to play etfs. The churn underneath that will create the volatility and the opportunity below the major indices p reta indices. Retail is a funny thing. We are positively set up. It is not just u. S. Economy as we referenced yesterday. It is the Global Economy that is picking up. It is global inflation picking up largely commodity driven. It feels good. I still think that some things are expensive. I added up the financials today and bought a couple other things. I added to citi and to arcadia. I think thats a great group. They have been sold down about 10 . Aaron, do you need some of the sectors that havent performed as well from the election . It has been a broadbased rally. It is not like there are two handfuls of things you need to worry about. Do you need to see some of the lag ards pick up . You have had financials underperform. They are down. They are up about 1 . Some have underperformed pretty significantly. You have have the tech based and material based up over 500 . We are going to see some underperforming sectors like the fi financials and some of the Consumer Retail space and some of the energy space, which i really like. I think those sectors are going to start to outperform. We are coming to a point where we are going to see a leadership transition. Tech up 5 . Financials up 1 , industrial, up 3 . Real estate up 1, health care up 1. Staples up 2. Are they going to Start Playing ball . I think they will. I dont think 1 up is such a bad number. I think the rally will continue. It will continue to be broadbased. Here is why. You look back to yesterday. Things really picked up steam when trump executed the executive orders about the pipeline. That was a way of saying, whether congress will approve his agenda. He doesnt care. Those pipelines were the heart of what the greens were protesting about. I am not being political. I am being observational. He is going to do things by fiat. That is good for the market. Does the fact that the stock market continues to go up and now we have crossed 20,000 take a little bit of the worry away and all the focus on bha what h says and what he tweets . Some of you have been worried about the reaction. He says he is going to focus on the Manufacturing Sector and corporate. I think what scott is referring to are the tweets that dont have anything to do with policy. I am not talking about some of the noise thats out there. Dow goes up 150 points off the bat. They dont care about that. Are we aness cita sized to thatt this point is this. Yes. The country is not used to that progress. Guantanamo is still open eight years after he said he would close it. Here, we have a president thats coming out. It is action, action, action. The market is overlooking that. I think that will continue. Ultimately, i think he finds that reasonably he shouldnt be tweeting about that stuff. Lets let his presidency be decided by action. I also bought ssl and laid out the short on ak steel, steel e dynamics reported. A. K. Steel reported a great quarter. We have been down since they reported it. You have been holding a little more cash. So you are looking to get more invested. I am pretty happy there are shorts that are working, like steals. Are you seeing more opportunistic shorts . It is such a tough game because of atfs. I think one of the reasons why it is so tough to short. There is no way we are getting out of the top of shot without me asking pete. When is the last time the vix was below ten. Are we going to make volatility great again . Thats a concern from a lot of Portfolio Managers. Joe and i were talking about this. Two weeks ago, i was talking to him. I was saying, actually, the volatility index is too high based upon the movement we are getting and the s p 500, it shouldnt be where it was trading. That doesnt mean it is still not cheap, though, scott. The opportunity to protect your portfolio at these levels still makes sense. When you consider the amount of movement of the s p. What i mean by that, you have to understand, as we go higher on the s p, these moves, take a look at the percentage moves we have gotten in any single day over the last two months. When you look at that, you are going to say even on some of these big down shot or upshot days, it is not significant enough to put the vix where it has been trading. Why wouldnt you buy the vix . You should. Thats what i am saying chlth pvmt. You are a smart man. To your point, if you could buy the protection so cheaply, doesnt that mean the environment is conducive to staying long. It doesnt suggest the major shakeout and correction that the sellout crowd has wanted. This policy isnt going to be growth oriented. It hasnt gone down. It is when the negative crowd, the bears, suddenly find themselves bulls. Thats the time. Ky ju can i just point out that single stock volatility is a lot higher across the. We have clients that call in and say, give me a little bit more income. We are getting good money from that. Why . Because individual stocks are moving 4 , 5 even though the market is having less than 1 moves. There is a lot of volatility. Thats a great opportunity for stock pickers to buy things on the cheap. Thats why you cant confuse the vix, which is measuring the s p 500 versus actual trades. I made a lot of money for vol. I got lazy. I finally got out of them. Sold the rest of it on monday and, of course, now is the time to buy. Whats really interesting is if you look at the move index, which is the index that measures volatility for the bond market, versus the s p. The volatility has been huge. The move index has remained elevated and equity volatility ha collapsed. That is suggesting a disconnect. Lets welcome in two stock market veterans. Art cashin and michael far is as well. He is the president of farr p miller and washington. Arthur, you have the hat. You go first. Does this, in your mind, have staying power . I believe it does. I like the broadness of the move in the sense that the diverse participants, boeing is a big help, travelers, triple m. It is not a sector. It is not the financials to the text that are slowly leading the way. It has staying power. Your previous conversation on set, the one thing that does disturb me about the vix, we are making record high was a reasonably low vix. That always worries an oldtimer about signs of complacency. I dont feel it in my gut yet. You have made the argument that you think this trump rally has gone too far too fast. What do you think today . I think it is going farther. May west said too much of a good thing can be wonderful. Let the pind juns loose. Market prices are out stripping the fundamental evaluations. Whats so lacking in fundamentals . Okay. So the banks look really good. I like the banks. I own the banks. Im going to continue to own the banks. The roes on the banks are below 10 00 . Stuff has moved up in anticipation of great earnings from the banks. We saw some good numbers. Thats got to continue. Rates have to continue. A lot of stuff has to continue. The pipeline stuff is going to be great for some of the energy and basic materials. This all has to continue. Prices have surged in an miss pags anticipation of it all happening. This market could go up another couple thousand points on this momentum. Yeah. It could. It is going to go up a lot faster than the fundamental earnings and gross sales are going to increase. As they do, it makes it more expensive and makes me more cautious. Arthur, are we becoming immune to some of the things the trump critics are bringing up on almost a dalily basis, the comments that have nothing to do with the agenda or random tweets and we are focusing on the policy that can be good for growth, investors and the stock market. I think you hit the nail on the head. When he moved into the executive directive toss directives to do the pipeline, it underscored that it looks like he is sddedicated to in looking into those things he mentioned during the campaign. He is going to be committed to tax reform and deregulation. What he did yesterday substantially underscored the idea he will be dedicated to bringing those things before congress. No guarantee they will all be done. It is guaranteed he will go through each and every one and address them. That gave the market a big boost yesterday and today. Good feeling got you from the wee hours of the morning of november 9th to the end of the first day on the rally. Now, you are starting to pause. Lets think about this. Joe, you had mentioned earlier the financials. Steve, you did too. One of the thee cease for the financials, President Trump has shown he will unilaterally take action. He is a real estate investor. He is going to attack dodd frank. I dont care if he attacks dodd frank. Are you sure . Not with the stocks i own. I have citi and b of a. It doesnt matter . It is great. It will be a help but thats not part of my investment case. Of course, i care. Thats not why i own it. Thats a bonus. Quit arguing. I just tried to show you the Promised Land and you fight me. I own them. They are all discounts to book. If dodd frank happens, great, it will increase my portfolio that much more. Arent the financials going up more because of the prospects of reflating the economy, inflation going up, Interest Rates . Thats part of it. More a part than rolling back dodd frank. There are three main things, exactly what you just said. And what steve said about book values. I was saying that yesterday. Absolutely. If you roll back any part of dodd frank, thats going to make it easier for banks to lend. Thats where they make their money. I think thats the up side. Since the election, the entire move has been driven by the yield curve. There is incremental up side to the positive. Thats where you can get a big boost. Arthur, the notion of sort of good feeling versus actual fundamentals wharks fundamentals, what do you think is the chief driver of dow getting over 20,000 . I think it is the anticipation that you are going to be visiting all these key important issues, deregulation, some form of stimulus and tax reform, most importantly, tax reform. Yesterday, you had speaker ryan say he was working on an agenda to get through the first 200 days, not 100, 200. That told the market we would probably see some move towards tax reform within the next six months. Thats faster than people thought. You are talking about a good feeling in the marketplace. Anthony scar amuchy tweeted out, this is the biggest rally of any election since 1900. It is more than just a good feeling. In addition to that, what steven just said, which we did not talk about. That suggests it is more than that. It is more than that. I see the Portfolio Managers and hedge funds saying, hey, we dont have enough exposure to european. Urine is having a recovery. Thats what happens when the euro goes from 135 to 107 pmis explode. This is now becoming a global recovery. It is bigger that what we are witnessing here. What did we learn . You look at the year over year numbers. Pretty incredible. We havent seen anything happen from the president yet and yet look at the numbers they have produced. When you guys talk about some of these things that are valuable. Thats why jamie dimon told squawk, the gains werent in the financials. By the way, yesterday, you guys had a big financial discussion. You werent here. You guys talked about a lot of these executives are taking off their position. Jamie dimon hasnt. I think were seeing two other kind of important things. With the pipelines, that takes everybody. You have to show me. He is talking about it. Is he really going to do it . This has been a week. Not only is he doing. He is doing everything he said he is doing. It is hard to keep up with everything that the president is now doing. Were moving beyond the showme stage to were seeing the whites of their eyes and i think markets are very encouraged about that. If he goes ahead now, if he reduces Capital Requirements for those banks, we are going a lot higher. Appreciate your time very much, michael farr, arthur, be well, art cash Shin U Cashin Jo well. Ed, good to talk to you today. Thank you very much. You said you thought we were entering the final stages of the bull market. If that was many months ago, where do you think we are today . Look at where the valuation multiple is. What changed . Everything changed on november 8th. We had a radical regime change in washington, d. C. Now, i think we can actually look forward to the fundamentals of earnings validating these euphoric p. E. Multiples. Yeah, we were in the final stage until november 8th. Now, there is more room. So now we are not closer to the end. In fact, we are at a new beginning in your mind . In some ways, thats true. Not only that but forget about the election that just happened, the economy was basically coming out of an energyled recession that started in the middle of 2014 and ended at the beginning of 2016. You can almost view the current environment as a Recovery Period in some ways. I dont want to exaggerate that point. It is important for earnings. There was much talk about an earnings recession. Back in august, my colleague and i, joab bot and i, said that the earnings receptionist over. Earnings are going to be up 6 in the fourth quarter, earnings fees. They will be a lot higher if we get the tax cuts. You soend like you are painting a picture in which you think the dow can continue to move higher. Im wondering how high. I will give you another 10 . I do things with the s p 500. Perhaps i should have asked it that way. After the elections, joe and i raised our s p from 2300 to 2400 this year to 2500. Let me make one other point, i think somebody said we are just getting deluged with all these amazing changes that are going on, on Economic Policy. If any one of them happens, it will be bullish. Imagine 2 trillion coming back to the united states. Thats all you need to drive this market higher. Appreciate the time. Thanks for coming to the phone. Well talk to you soon. Ed yardeni. Here is whats coming up. Earnings helping drive the market higher. We are drilling down on two of the biggest names reported today, boeing and United Technologies and what those reports mean for the rest of the blue chips. Our partners run the numbers on the top stocks when Economic Conditions p matmatch what we a seeing today. The stock that is do best. More halftime with scott wapner coming up. 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 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. As for the top stocks, with gdp, infra inflation and tenyear, all around 2 , cisco and boeing are the top two performers. Microsoft, United Health and nike, all above 20 . We are going to get to boeing in a minute in more detail. Im wondering what you mean of what ed yardeni said about another 10 upside but what the kensho report showed us as well if you take the atmosphere thats in the economy, you could be poised to move a good deal higher. It is not a nobrainer but easy to get another 5 out of this rally. You nor the at euphoric highs. Are some things a Little Pricey . Sure. You are not in this bubble type of territory. 17 times earnings on the s p 500. It aint cheap but by no means is that bubble territory. You could easily get another 5 . Inflation between 2 3 is the market multiple. It trades at the highest multiple when we. Narrator that 2 3 inflation bucket. We have been in 1. 5 to 2. 5 for the last seven years. This is the first year we have the potential to break above that for a sustained basis. You cwe can get significantl higher than where we have been. Domestic demand can finally start to move higher. Behind all that, you have got the fed who has danger of running behind as they have the last couple of years as it has been fine, behind the curve. If they ramp up, i have been looking for three hikes. If they ramp that up or run it tight together, you get a nervous bond market. I dont think 3 kills the market like others do. It depends on the rate of change. You are looking at a 14 increase to s p earns this year. That will give you a lot more up side. Two big dow stocks reporting. Boeing, as we just mentioned, a company beat on the top and bottom line. United technology matched. Who wants to take boeing. You made the comment you think it is expensive. I am going to talk on both sides of my mouth. All the headlines are about the 787 and the order book. Thats great. Look under the hood. Look at the Defense Sector for boeing. That was down year over year. Thats where they have been r k racking up orders nobody pays a