Lower, the s p 500 having the biggest reversal since february 2013 so what changed as tax ufori dont weighs off, it looks like fears may be back. Welcome to fast money. Thanks for being with us today remember there was a kurt ffl last week, but now Chuck Schumer and nancy pelosi say they will go to the white house on thursday, to meet with the president. Theyre expected to hash out some negotiations over this Government Spending showdown remember, friday is the day on which the government will run out of the money if they could come up with something we hope the president will go into this middle eastern with an open mind. What theyre talking about is that moment we saw last week, with the president appearing at a meeting with two empty chair for chum schumer he said he didnt see any possible de, so the democrats decided not to show up to sort of demonstrate now the democrats are going to the white house for negotiation, if there is a Government Shutdown this year, it wont likely be this week. The expectation is they will be able to come up with a twoweek continuing resolution, just continue all the Government Spending asis, without making any changes while they have the opportunity to do some diggal negotiations that will push it up against christmas and that christmas break. The question is, because they need democrats on this vote they didnt need democrats on the tax vote last week, they will need democrats on the vote this time around on Government Spending, what concessions are republicans prepared to make eamon, thank you very much ultimately you have a case here where the market has gone very long the tax deal in fact, i dont think anybody believes well have a ceiling impasse and were going to go into a case where the government will be defaulting i think this is all about positioning, about where we are, small caps rallied 17 , one of the first ones to go negative. If you look at the stef thats most sensitive, still not a bad day for banks, for transportation, and for industrials. The Economic News has been better than everybody expected, so it would be natural for people to be selling this news weve been think this multiple sometimes before why not take something off the table and buy some nice in your biggest gainers the stock market ahead of itself, taxes was moving forward, we went up 380 points in the dow then you start to see fang, where people have had tremendous years. Down in the last month or so. All that year to date performance. Guys are saying, do i want to give back my performance, even increptally . No sell the fang first off the comment i look good. That was a declarative statement. The best performing two stocks of the s p 500 in the last month footlocker and macys et cetera odd. I want your comment on that. Is it possible that as much attention that this is more of a Bank Deregulation rally, because the banks have been the boss tim can speak to macys not only footlocker and macys to steves point probably people buying the lag guards, hope to to your question, 100 , thats exactly whats going on if 9 economy was as rho best and now the tack r coming bond market should have gotten, in my opinion obliterated today, and it didnt. So youre getting a lot of mixed signals. You know, we have gone down to 60 basis points in a remarkable short period of time my question continues to be to the guys point, usually the flattening of that curve inspiring tailwinds. We didnt see that that to me is just didnt does it have to go into what that means . It could flatten, but its why its flattening that matters. To the point of growth. Its plain and simple. If you just chart it, you can see the differences. Advance auto parts, the best performing stocks out there besides 21st century fox, which has a potential deal bid, whats going on which lit a fire under the media stocks, by the way every name you just mentioned, brian, was handily beat up, they were truly seeing some degradation, but the amazoning, and the disruption of their entire business. Macys is a classic case for me, where amazon has gotten some assetheavy in the last couple months macys was given no value for their physical presence, and meanwhile, theyve turned around their online presence. Really got to a place where people didnt believe they had the Balance Sheet to pay that different. Retail has room to run but you know what laggard is not up the xle. Energy. So there are fundamental reasons why the worst is probably out of the way for a lot of brickandmortar. Im not knocking tax reform, about but if you believe small cap stocks are supposed to benefit from tax reform, theyre up less. A lot of were going to focus on tech, but how much recently do you believe is tax reform versus maybe some other stuff its probably 80 20 i want to do open up says its rotation if youre just buying laggard, you would buy thats why its tax reform so this was the last kind of exhaustion buying on the tax reform, and then you say, objectionic end of the year, where am i going to go, as tim was saying wife to move, probably the least exposure of any other groups well talk more about that another group that got hit today that we talked about a machine ago is technology. Our next guest says now might be the best chance to get in with the stock down a guy you know well, carter worth, had hes at the plasma to break it all down. Sure. I want to just point that out. Here are the numbers, unprecedented. I called it the great rotation tech is a sector, down 2 , you would say sort of thats a yawn for the week industrials up three, no big deal, but doing that in u. N. You i son, down two, up three, has only happened eight times in history going back 30plus years. How about tech being down 2 and s p being up 1 1 2, thats only happened three times in history, and then finally think about this the semiconductor is beta, cyclicality, down six while the transports were up six, that has happened its happened one other time in history. My point is this is unprecedented rotation, do you chase the signals or ultimately take advantage of the weakness in tech. I think its the latter, take advantage of the techs a future more charts and then im done we have here a group chart, and i think youll like this ive plotted them as though it was one secure in an equal basket here it comes. This is that basket, essentially half of the s p. What we know is it is trying to break out after four years of sideways here is the rub. This is your relative performance as a manager, as an asset allocator. If youve got in this, youve just lost a bundle what you just said, macys and footlocker, thats laughable lets keep going heres the tech sector, and important, here is the relative performance, up trent absolute and outperforming. What we are right now is right on the relative line thats been in effect for the past two to three years. My hung is were going to bounce off this line. Oy do not want to dig around in the trash and find some chipotle or no thanks. Carter, come over to the desk. I think what hes addressing is a really important topic is the run done . I dont think its either it might last a couple weeks, when you say this has happened in other times in history, has it happened for multiwall weeks. The first time it happened, it was for two weeks. Its typically shortlived, but its so incredible 1200 basis points spread in a fivesession period. The first thing to ask, was that really collectively people selling and big managers with big asset firms . No, thats machines in fact, we talked to all our clients, nobody did it. The first thing is its machines as much as ever, but the final thing is, youre not going to win the race with footlocker you can make money off of it, but no prudent manager will say, this is it. Carter, ill push back a bit. How long is the race youre talking about. People running the sprint have made more in for aloicer. You have to know your time frame, but for big longterm quote thoughtful money its typically 23409 right phrases like dash for trash come up isnt it worth notes the extraordinary theres other standard dive nation events, too. Things that should be typically trading in the same direction. That augers a ton of volatility. Isnt this about the extraordinary run that big tech had . They could do no wrong, this is the largest capacity place to put money and everybody was there. Sure. And yet its more extraordinary to move in the transports. Remember, tech is a broad the transports is only 20 stocks to have that index move like thatis an incredible things. The bull would say thats a very riskon, and Economic Growth and so forth i would say its an impetuous kneejerk reaction on a moneyflow rotation. Its a yogi berra market, nobody goes there, adami look up. Its not that im paying attention. What was the question . Im kidding. The report at the end of september was a 36 took or so ran up to 50 in about a week and a half i dont think the story in micron is over join the nan and dram story is over i think thats just giving an opportunity to get back in with the risk reward that sets up extraordinarily well. If you think about the transports, feddics is roughly and fedex has every reason to be raylying. Their marges are growing, the high multiple tech stocks nvidia, micron, square, whatever you name it, we took the top off the teepee its things like apple, microsoft it makes sen that they were hesitant to sell their tax winners, because they didnt have a clear vision as to the taxable consequence, and then all of a sudden, when you start to see moving forward, people started to lock in it was rotation, it was tax, a whole host of reasons, but nvidia down 15 , micron down 21 i hate the term fang stocks but we have to use it. The fact that theyre down in the past 30 days when the rest of the market has been relatively soaring to me. I actually think its a big deal. I dont think its a big deal. I do. When you have moves like this, two and three standard deviation moves, to me thats a change of behavior in the market i know you may not say that the pensions and those bigger funds dont act that way, but theyre also late to the game. Im not necessarily saying, hey, you have to short all these things, but ed need to pay attention. Im glad im two standard deviations after have seemo. At least. Thats a lot between us no offense a curious dynamic in the dow that could be predicting a murky visiting and well tell you what it might mean. Cvs buying aetna for nearly 70 billion. This is amazons threat in the Health Care Industry looms large. What names in the space they think could be next. Later on a former energy hedgefund manager is going all in at bitcoin. To tell us about his new fund and how high he sees it soars. Much more fast money, after this work on the cloud with open technology, and open standards. The ibm cloud. The cloud for business. Yours. Right in the heart of the was in his financial crisis, and saw his portfolio drop by double digits. It really scared him out of the markets. His advisor ran the numbers and showed that he wouldnt be able to retire until he was 68. The client realized, i need to get back into the markets i need to get back on track with my plan. The Financial Advisor was able to work with this client. Hes now on track to retire when hes 65. Having someone coach you through it is really the value of a Financial Advisor. We have a question about your brokerage fees. Fees . What did you have in mind . I dont know. 4. 95 per trade . Uhhh and i was wondering if your brokerage offers some sort of guarantee . Guarantee . Where we can get our fees and commissions back if were not happy. So can you offer me what schwab is offering . Whats with all the questions . Ask your broker if theyre offering 4. 95 online equity trades and a satisfaction guarantee. If you dont like their answer, ask again at schwab. Work with ai thats been trained by experts in twenty different industries. The ibm cloud. The cloud for business. Yours. And welcome back to fast money. Time for your move of the day. Today it is the Biggest Telecom etf, ticketsers vox. A 1 move does not tell the whole story. Its been a much better last month for frontiers communications, up 20 verizon 9 , at t 9 , and centurylink rounding out the group, up 8 in just a week. Wow, tim seymour, what do you make of these moves. When i look at the vox, i think this is a function of stocks that get weight overdone and hit multiyear levels in the case of at t, its rallied roughly 12 , 13 , i think you probably take some profits off the table. I think were in a range bound, obviously a lot of uncertainty if you think about this time when weve been talking about extraordinary moves in highergrowth stuff, a very big rally back in stocks, utilities, bigyield plays. Which is weird, steve grasso, considering that Interest Rates are expected to rise they happened for so many years now. But why i do think its more of a value versus growth play i think thats number one. Number two, theres m a. That caught a bit. Thats why the reason that one outperformed i do think this is going to be shortlived. I think its another month to get to the new year. But i would lock in profits. On the yield plays, thats kind of a canary in a coal mine. When you see bonds start to go up, to me thats the warning sign for the rest of the Equity National these should still do well. And anytime we inhavent a new term, thats a good day. Thats a bitcoin term. Thats icecold, brian. We made of deieselene once could this just be a portion of a number of other deals in their space . Oh, nice. Well tell you the names that could be ripe for a merger in the meantime this is what else is coming up . Just keep buying. Thats what investors are doing with bitcoin, after where you hear one fund manager talk about where he thinking its going, you might be buying, too. Something could reveal a major trend in investing welteoul ll y what that is and how to cash in when fast money returns. All right. Welcome back to fast money, the dow hitting another intraday high today, but theres something strange going on in the index, and it might just be because of one investing trend thats been on the rise. Dom chu back at the cnbc newsroom to break it all down. Brian, its got to feel good if youve been long this market this year, but just among the major u. S. Indices its been the dow thats a standout, so much so a handle of even creeping to the 300 mart. The fab foyer. Four boeing since the dow is a prettyweighted index, they pack a good punch just one of those stocks, unitedhealth care is in the top ten, worth around 216 billion thats dwarfed by the 879 billion market cap of apple, the 375 of johns everyone johnson. We all know the debate about whats bert pride weighting like the dow, or market cap weighting like the s p so far this year its been the dow that outperformed the s p. With so many stocks reaching triple, even some quadruple share prices, many are looking towards passive investing. Fewer investors buy stocks that was when visa split 4 for 1. Before that, brightic, it was cocacola. Now, there were days back in the late 70s when ibm was a 300some stock. Are we seeing a return to those types of times well see. What do you think of this trend . Is it saying anything about the market at large . Passive investing has been a massive part of this and probably more the an effect. Everybody is just plowing money in day after day and buying the market in general. I think not only do evident this is higher priced stocks, but very low volatility. So low vol, good different, and passive investing, i think this continuing until we see people start pulling money out. We saw hintsds of it on trying when i believe passi passive aggressive said did i say passive aggressive thats just a freudian it might be a partial thin of what you wanted to say. When passive becomes wow wow, that was deep. And i think you got a passive is great, and i think friday gave you a window as to what it could look like. If you look at a handful of these stocks, first of all and i mean actually in terms of home depot and mcdonalds, youve had companies that continue to execute on a plan that really frankly means theyve got mull pat expansions, so at loo lot of stocks are highly exposed to the trump trade. Whatever were calling that, these are companies i think that have as much exposure as any look at blackrock, up 35 percent year to date this is a bigger portion of the market year in year out, this is how people invest. Yet, theres a pla is for active, but i think the market is moves to a more passive is there a risk yes its going to reverse at some point in time when the baby boomers decide i want to retire and taos money out of this market theyre goods to passively take it out and it will start putting pressure on the down side. I think people should just remember because youre in a passive fund, passive investing, thats a bit of a misnomer, you are actively deciding to use a market cap or a priceweighted index for your investment. So youre not really doing this kind of passive thing that everybody has sold you on. Were probably in the longest equity and debt combined bull market in a century. It makes a lot of passive investors look like geniuses i just dont think this is whats going on. I think 24 sets the stage for enormous volatility ahead, and therefore i think you have to be careful. Goldman sachs made an alltime high i think earlier this year of 255 and change. Weve been bullish on Goldman Sachs, but look at it today. Basically up to 255. It doesnt stay there, closed around 250 and change. Thats worth watching. Recall bks double talk about two or so months ago, a similar set upnow in gs. Good discussion there i have a feeling the passive investment dialogue is not anywhere near being done yet coming up, cvss bid to buy aetna sending ripples across the space. What could be the next targets the traders will weigh in. One former Energy Traders going all in on bitcoin, and get 0,0. , he set it could go to 1000 bo collins will be here to tell you what has him so bullish. Stick around and the wolf huffed and puffed. Like you do sometimes, grandpa . Well, when you have copd, it can be hard to breathe. It can be hard to get air out, which can make it hard to get air in. So i talked to my doctor. She said. Symbicort could help you breathe better, starting within 5 minutes. Symbicort doesnt replace a rescue inhaler for sudden symptoms. Symbicort helps provide significant improvement of your lung function. Symbicort is for copd, including chronic bronchitis and emphysema. It should not be taken more than twice a day. Symbicort contains formoterol. 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