Where does this leave us pete, good time to answer that question i think our viewers, investors everywhere are wondering we had this big comeback weve had a bit of unsettlement in week. Now what yeah, i think we have reached a point now where theres been some pull back and everybody is looking for that opportunity those that have missed a little of some of these moves youre look for something. We had a huge range. We started to change the what we have been seeing which is contracting range and that sell off late day im surprised we havent seen an acceleration to the downside i think theres nervousness in terms of a lot of things the retail number we knew about. We knew it was worse than we anticipated. Thats a big deal. You look at the smh. Thats a great reflection of what im talking about they are hammering those stocks. They have absolutely hammering those stocks today josh brown, what do we do with the fangs what do we do with the chips fang stocks have had such a great run. Today were talking about huewei theres some commentary about rotating into more value names that these things have run a good way maybe they need a breather i think its a good point one of these things you learn is you try to gauge whats happening in the market, you start focus more on things like weekly chart, monthly charts just try to pull the lens back and get a broader sense. When you do that, say weekly closing candles for major averages you see that really what we have been doing over the last few weeks is just flopping back and forth. Its hard to look at weekly candles and give an edge to the bulls or bears to your point, winners and losers beneath the surface have absolutely started to have asserted themselves. It seems like the trends continue to stretch even further and further for the winners and losers i dont know that can go on indefinitely or week after week. Its hard to want to get in way of that. Its a very difficult trade to make because of the timing gop kwlo when you look at this week, its a risk off week. Gold up 2. 5 tlt, which is long term treasury bond etf up 2 on the other side of the ledger you have the iyr which is real estate off 9 . One of the ugliest weeks we have ever seen for that particular etf. Energy loss ground more than 5 or 6 . Xlf is ugly. Again, that trend continues to persist both the downside and the upside and i dont know when it ends but i dont want to lay down in front of it. Risk off was pretty much reflected as well from our guests for most of the week. If you go back and you play off the stan wasnt on our program but his comments broadly resonated saying it was the worst risk we regard environment maybe in his whole career. Then you had nelson come on yesterday and lets listen to what nelson told us. I think investors are torn as to what they are supposed to be thinking today here is nelson peltz theres so much doom and gloom and this thing is not going to last forever. Theres still loads of value in the market because the market is primarily a tech market. Theres still good value out there. I do believe in america. I do believe when we get a vaccine and i do believe we are going to get a vaccine interesting comments there, joe from the great investor nelson peltz good value still out there he says if youre focusing on the fact the market has gone up as much as it has, you need focus because tech is so heavily weighted in the s p. Its not telling you the whole story and he initiated two new positions which he didnt reveal yesterday but the mere fact hes putting money to work and he doesnt put small amounts of money to work. Hes putting money to work when others are saying its a bad risk reward environment. Because of the elevated volatility, thats whats going on youre finding theres times when you can look at Quality Companies in the s p 500 and take advantage of them being priced significantly lower you take this week which is a very odd week. Since were all watching the last dance about the chicago bulls, i think you think about this week as you have a lead in a basketball game and its time to rest Michael Jordon and scott pippen and you got do put the back ups in. You say hold the lead. Dont get us too far behind. If you look at this week,its obvious that the 6 pull back that were experiencing in the market, a lot of that is because the Technology Names are beginning to not out perform as they previously were youre seeing the high yields in the Investment Grade market. Youre seei ining limited issuae in the market. Lastly, the economic numbers that are coming out are brutal theyre the reality of what covid19 is presenting and look no further than a uc. P. S. Or fedex which trades largely off those economic numbers this is an odd week. Try to find opportunities where you can and survive. Its interesting you use the word odd week. Did we think the market was going to go up forever maybe many of the other weeks were the odd ones where we went up to where we are now and seemingly so offsides in many ways with where the real economy is and that showed its ugly head again today with some of the data maybe its just this is the way this week is supposed to be. Give some back i dont know. I guess thats maybe your view on how would you look at the market i think theres others that would look at it differently i look at from the perspective of how do i react to the pricing as i see on the screen as i said to you, im reacting in a very defensive, protecting whatever risk exposure i might have i hear you. I hear you i thought your choice of words was interesting. Calling it an odd week as were we pulled back a bit. How do you see things here and where do you go from here . I think, this is rare for me to say i think everybody is a bit right. I think that the market overall is rich. I think nelson peltz is right, theres loads of value josh said something interesting. He said winners and losers beneath the surface. Thats true too. You dont need to look at the s p 500 overall and say the market is rich you can do deeper and make individual decisions on individual stocks, maybe individual industries and find some really astonishingly great value. I want to know where. Sorry to interrupt you if there are things are cheap, i want to know where i know our viewers do too. Theyre looking. For example, we brought three new positions in the last week we add intel and ca. These are stocks that have crept onto our screens some of them are trading at three and four times earnings. Say they dont hold up and get cut even more. Lets call it six and eight times earnings theres a lot of value out there and a lot of cash flow to support those earnings they have fallen out of the market overall what we have done to fund those is we have trimmed things like home depot which we still have large position in. We would say thats been a huge winner. I get the fact it has a nice yields on it but its been pretty ugly nonetheless. Really ugly but i think thats why its aattractive. I remember when i was on in november and i had nothing to say. Then it was at 50. Now its trade ing in the 16, . The margin of safety is much, much larger. Again, i think with significant decreased add revenues they should still earn probably close to 4 a share. Trading at 16 times, thats compelling joe, you have some interesting moves as well that i think we can have a pretty feisty debate about with the gang today you bought disney and you bought jp morgan. Tell me about both of those moves. Sure, scott as ive been talking about with jpmorgan, im kind of trading around that position where i step in as a long Term Investor and buy jpmorgan here with trading around 85, yes, i believe i would. I have been, as i said, selling it as it gets to the mid and upper 90s and buying it back when it gets down to 80 thats what i have done this week i have reestablished that position will i allow it to go beyond 90 if it does get up there. If the conditions as it relates to the yield curve would improve, yes, i would do that. Disney we talked about on the show the day of earnings i think at the time it was trading around 108, 109. I said i wanted to wait for a bit of a better pricing. I think you got a great pricing in disney as it fell back towards 100 thats a long term investment. Thats not something im going to trade around. S what do you think about both of these what i like is they are very, very easy trades because your down stiside is so clearly defid id go long right here i agree with what joe has to say. Its down 40 something percent from the high. The stock has found support over and over again at 99 a share. There isnt a lot of support beneath that level thats where i would want to be out on a trade its a good risk reward. Your stock goes right below. If youre trading these names, you dont have to take a ton of risk those are your exits be humble. Let the market tell you nice try. Were not done selling this thing. Im in jpmorgan without a stop because its an investment i think joe could make money with both of these its interesting the way you look at theese joe, sounds like you dont have too much long term conviction in banks at all this is a trading position in jpmorgan with well defined areas and you dont have a big belief in these bank stocks over a longer period of time and maybe for the way that Interest Rates are, its hard to have a longer term position. David tepper talked about the banks on our show this week too . Yeah. Thats a fair observation, scott. I certainly would agree with that one of the reasons for that and if you go and look back coming out of the great financial crisis, the opportunity, banks was in the debt markets. Not in the credit markets. I think were going to have that same experience right now. I think for banks the prudent behavior is the hoard cash not going buy back significant amounts of their stock if at all. They are in challenge environment as it relates to the shape of the yield curve im going to be very quick very quick in managing the risk surrounding that trade i am not looking lower in the banking chain, so to speak for other names that you might find. I dont think were at the point yet for banks. Pete, you have some interesting things youre doing too. We longed talked about the positions in pfizer and merck. Right thats the value side of what i added to, scott. I also mentioned to the guys that draft kings was another one of these names i realized its new and everybody is looking at this and trying to figure this thing out. I think its a monster i think its going to be a monst monster. That stood out for me. It hasnt participated add well as i would have liked it too i think this is name that could probably play some pretty nice catch up when it comes to merck and pfizer, you talk about value type names theres a lot of Different Reasons why i like those three particular stocks in this environment. I would also add to that disney conversation that joe was having last week when we were talking with Kevin O Leary knnobody wanted to touch this at 100 share. This is name that i love its moving away from that because as we dropped from the 50s and 60s and in the 80s for volatility, now that were in the mid to low 30s its less and less there are names where it makes sense to buy the stocks and sell calls against it because they still have inflated volatility my option positions have exploded in number the number of positions that ive got on because ive been rotating away from stocks and into those option positions because now is the time. Its like anything when you look at this and look at volatility, trading 33 from 83, you want to be a buyer closer to 33 it doesnt mean it cant go a lot lower but the opportunities are there and the opportunities for risk reward are off the charts and theyve been unbelievable in the last cup of weeks. Question for pete on draft kings. Go ahead. Yeah. All right thanks pete, its great to see you. Your living room looks dynamite, by the way i want to ask about draft kings. Ive been reading about the stock and i know its one of the most popular stocks on robinhood and people are excited about the company and maybe with good reason in is a 9 billion dollar market cap Free Cash Flow predicted to be negative through 2022. Revenue growth looks decent assuming theres sports next year dont you feel like this thing kind of came out at a pretty max valuation. There is. Youre 100 right. They did come out at the right time they did come out with an extremely bhen you lookts the valuation, thats always really difficult. I totally agree with you on that on all points. Theyre the king and they stepped in first they are literally the guys in front of everybody else and i think because of that, will they be able to develop some form of im not going to call it a mote but something where they are the first responders, so to speak in this particular case and they actually because of that when you look at Morgan Stanleys note, the price target is put out there. They are in front of everybody else and taking advantage of that that part will take some time like everybody else is waiting for now. I do think they are in front of everybody else by leaps and bounds right now i think they will be able to extend that in the short term. Okay. Good stuff there. That being said, its not cheap. Its trading at above market multiple of 24 times its a lot of expectation in that with respect to ross stores, we think when demand for Retail Therapy comes surging back, we think ross stores will be a big beneficiary of that. Joe, twilio reports next week that was one heck of a report from twilio last week. I said at the time when i bought twilio, you had to buy it thinking they would get to 200. Its reached close to that level but im going to stay with it. It was a fantastic Earnings Report just real quick on the draft kings, 10 national gaming. If you believe in theory that josh and pete are presenting, which i do i think Penn National gaming is the return of live sports. The gaming concept i think thats the right trade i might make that trade myself anything closely related to video gaming is on fire. We know that gaming cards and pc chips for gaming on and on and on thats really nvidias market. We know thats good. Here is what we dont know when does Data Center Spending resume its upward course a lot of capex on hold now you look at nasdaq, tech stocks, they seem to be doing really well stocks close to all time highs but you dont know what their Spending Plans will look like. If a lot of planned accumulation of the types of things make get put on hold. Pete, walmart, target next week along with tjx. Pretty excited about all those. I own calls in walmart i own stock in target. In terms of target and walmart, they have been knocking it out of the park for a long time. Every time we go over there, parking lots are packed. People are coming in and going through and picking up if he gets close to the stickiness hes talking about, i think they will be able to put up some monster quarters what about best buy i love the name i think they do an outstanding job. Its difficult of an environment for them right now. I think all of that will feed into best buy in the future. People are spending out the experience online has turned tout be something much better than they maybe even expected. I look at best buy i think its really i still think its an inexpensive stock despite the fact its made a run up of 20 . Josh brown, you have a thought. I look at best buy a little bit differently which is i think people are looking for it but they are also looking back and they know how much money they made as we did this huge work from home push id have a bit of pause on that to see if they can sustain those sales levels Going Forward you think sochl that was pulled forward. I think extension cords, electronics. Big screen tvs whatever you needed to work from home petes display back there. Maybe its from best buy there it is up next, hormel report next week buying minnesota stock is a Winning Strategy next week its still very inexpensive this is the perfect environment for hormel to do very well i think they will. We all know we heard about these shortages, all these other issues hormel makes spam next, skybridge founder. Hes betting on some very investors. Well tell you what i mean by that when we come back here is a check on the s p sectors as we head to break. Almost an even split you got Communication Service at thboomhee tt tre were back after this. Feed a healthy lifestyle, with pure protein. High protein. Low sugar. Tastes great high protein. Low sugar. So good. High protein. Low sugar. Mmm, birthday cake. And try pure protein shakes, with 24 vitamins and minerals. Welcome back joe, you were talking about Penn National gaming in our drafts king conversation. Its getting a little more expensive for you now. It is now its more expensive to buy it yeah, thats who i am i want to viewers to get in before i do. The ceo, scott, he made a purchase in this stock recently. I know pete like it when ceos step in and support their stocks good quality making a nice recovery pete, speaking of, other casino stocks, where are you right now along the casey now landscape . The only other casey now im involved in is in Las Vegas Sands. Its a because of the dominance they got there what would it take for you to buy a casino name . What would it take for you to buy those back well, i do own Las Vegas Sands. Ive got that position there in terms of wynn, i just love steve wwynn here is a guy who put his money where his mouth was guying his own stock. I remember going back. He bought it in the low 60s and the stock got up into the 200s this is a guy puts his money where his mouth is he put his money where he said it was u p underpriced he said it was time to buy pe put in huge buy orders. Im not seeing that right now. For now, if i want my exposure, ive got it in Las Vegas Sands thats good enough for me and draft kings. I should have been more specific too im thinking as you say, lvs is a buy because of mccowell. Im thinking about what it would take for do you buy a a casino stock with a huge amount of exposure to las vegas. We got to see the Airline Traffic pick up. The nervous there, we know how las vegas works in terms of people come from all over the world, the country to go there for a variety of reasons think of all the different folks that put on big operations those are all on hold. The travel to vegas is on hold i have to see that sort of that side of change for me to get excited about an mgm or whomever im looking at. Lets bring him in. Hes betting big now the founder and co