About the golden opportunity traders are spotting in the market, thats ahead we start with another big day for the market nasdaq posting another alltime high as coronavirus cases continue to climb and risks up we got the Economic News on the u. S. Front so guy, have we become enured to the rise in coronavirus. We got really good and really bad data i think the market seems to discount the bad it seems to get geeked up on the good, which weve seen over the years. To me its all about the liqu liquidity thats being presented and put in the market by Central Banks globally im pretty outspoken about that. But we did say on june 26th, if you recall, we were encouraged the market held 3,000 level at s p 500 and gave us something to trade against. Didnt think wed be here today, quite frankly. But the next level, the june 7 high of 3240 is in the cross hairs of the market and has to prove itself there what i would say today that gives a bit of pause is the fax that the vix is sub on today, held in a tad higher and 26, 27 level in terms of the vix is where we bounced off early june. Also noticed the russell 2,000 small caps didnt participate to the level the Broader Market, unusual for a big market rally, tim. Yeah, russell is now down, i think, about 33 relative to the nasdaq, think about the under performance, i think its down 18 or so down year to date. So the real growth and economic sensationitivit sensitivity that small caps are in measure of is in front of you. This is about liquidity and the brow is getting very, very tight. You if if you look at other stocks to the nasdaq and s p 500, its outperformed the s p 500 by 22 year to date. Theres no question that the reopening of the economy were pretty sure there wont be heavy draconian economy, you have the news that the great if market news is the market is drink by liquidity right now. To that point liquidity to the same name should we care amazon going over 3,000 for the first time is that concerning to you . You know, i think its a little overstated. Certainly is not as broad as it was the first week of june but lets distinguish between stuff not going up as much as the market and stuff going down. Theres a lot of the former, theres not as much of the latter i know airlines on a relative basis have been weaker banks have been weaker theyre not going down in absolute terms thats the difference. You look at the leadership factor semistrong. Softwarestrong. Biotechstrong but materials are acting better xd some of the transports the trucking names even the rail. Could this is not as broad as a month ago but to call the market dangerously narrow is a little overstated. Dan fine. But you know, theres certainly meetings going on here amazon start going up, broad bottom before market in march, above 3,000. That puts it up 10 before trading days 10 on 1. 5 trillion market cap. Talk about what that is discounting. Do you know how many stocks in the s p 500 have 150 billion market cap, what it just gained in the last week, less than, i think 100 or so, maybe less than 70 so some of this stuff is really getting to a point where its really makes little sense to ignore it. You know, were going to talk about tesla. Tesla is up 45 in a week. 45 in a week. Just kind of let that sink in a little bit here. You make great points, yeah, the bank is acting better today. They dont act well. Oil stock is acting better, they dont act well on a regular basis. So a lot going on the back half of the year. Just like in early june there was a may jobs the number to get the rally going, and could say its june job number that got this going. If you look at weekly continuing claims theyre not particularly good and over that period of time since the may report we want to on a weekly basis add more added back to the job thats were loss due to the shutdown. To me i think the back half of the year is not shaping up particularly well, especially considering the fact were going to have rolling shut downs not lockdowns on state or federal demanded level, i mean, the private sector will continue to lead on those lockdowns and were going to continue to see spotty recovery. I get that and i was on that train for a long time, ever since the market rally took off, but guy, as a trader, if you put your trader cap on trade what you see so what do you see in the market were seeing the market go higher and a wave of liquidity from the fed that is unprecedented. So dont you just trade this high i mean, this is the market we have were at it every day because we have a panel thats pretty cautious in general about this rally and the hiccups in reopenings yeah, well, i dont think tim has been cautious, i think tims been spot on and chris has been very optimistic, ive definitely been cautious, but weve also tried to point out opportunities along the way. Nothing short of a a miracle will not make me cautious. Just by virtue of what is going on in the world you have to be pragmatic and say theres serious headwinds and to your point have to action knowled knowledge acknowledge whats going on dan has a very draconian back drop, i think hes been blinking help me, the last few minutes. Its very stark, his background no declarations except one painting, its an unidentifiable location dan. Let me say this, i get at it a lot and dont give a you know what. I know. Heres the deal, if you just want to ride the point is were seeing things right now that weve seen in other very speculative manias. We know how they end trees just dont grow to the sky. So when you see this euphoria and universal agreement that amazon will go from 3,000 to 4,000 it just doesnt always go that way i get that its Great Companies doing great things but dont think you can say that about all of the names up 300 from the market lows. I want to look at stocks compared to Broader Market two stocks at the top of the take a pair of big old because kills. Tick kick it off with tesla after a new it high 1500, analysts say the company could get to 100 billion in yearly revenues by 2025 shares are now up more than 215 this year. Chris this is one youve been bullish on, what do you see. I think dan called it right, pretty remarkable last five days, stock up 45 lets talk about levels. The prior high before this break out was 970. And the low in march was 370 the difference is 600 points add 600 to that 970 gets to you a target 1560, 1570. Thats a fair target for this move i think this is the embodiment of this growth trade that remains very much in tact. One of the most remarkable stats, theres still only sell side not embracing this move, theres five down grades this week so this one will probably go higher. Dont know if you saw, elon musk taunting the shorts as he is apt to do with a sale of short shorts i checked it on the tesla website, you can actually buy them its not just a joke these red satin short shorts only extra large and small are available, guys. Will work for guy ha, ha. Its unfortunate. You know, the red, you know, its absolutely my color. Quickly, ill say it is interesting, going back to the joe interview with President Trump in davos when stock tesla was around 300 or tad higher if you go back and listen to exactly what President Trump said, we did right by tegs l tesla, theyre going to do right by us. Stocks never looked back in may stocks were 700 and elon musk tweeted stocks too expensive. Im paraphrasing again that lasted a day and here we are double he can do what he wants on twitter because he seems to have air cover. I dont necessarily get it but i see whats going on. You absolutely stay with the name. Another stock, square, marki markingilities marking its own record high. From 1550 to 83. On all four components on the kb bank index. And you have a case at 50 billion a lot of the analysts are just catching up but lets be clear, square has a lot of market share, its a have, in the world of have and have hitch notes in the havenotes in the covid19 profit very profitable. Growi growing since 2019 its part of the higher margin story for a company thats not even focused on profitability. If you are looking at evaluation you evaluate on ev to revenue story. At some point its a total catch up im still on the name. Ive taken a lot of chips off the table and owned it in a few accounts its very difficult to rationalize this valuation for a company that i think jack dorsey has had his finger on the pulsz of whats going on with consumer banking. Square will be there cross sell something in the app. But at some point the streets just chasing its own tail. What does the chart look like to you, chris. This is one of those names it was dead money for two and half years, it was sideways it only just broke out i know the move has been super aggressive in the past several weeks but it is not a stock that was up it was sideways. I say buy weakness. Another buzz kill. Fedex. Losing early in the day and eeking out a game. So guy, under performing, whats it tell you. We talked about it last week. Remember it was 250 stock in september 2018 its effectively been cut in half worse a few weeks ago. Uvs upgraded the name, raised the price target to 156. We flagged that couple weeks access weve been optimistic on this name, correctly. But going back last week postearnings had a huge volume day, traded up to the high 160s, levels we saw few months ago seemingly failed again, i say take profits here youve seen this pattern of lower highs and lower lows i think that pattern will continue in my opinion if youre looking to buy this you buy to break out above 165 or therabouts or youre looking for a pull back back to the mid130s. I think the latter is more feasible. Yeah, tim well 155 is the level i want to see the stock hold. Remember youre not getting that excited over the numbers last week they were about costcutting and some excitement about revi reviseallization of ground express. I think after massively under performing, fedex was a lead indicator for the market in 2018 when it was at its highs and i think it put in its time we are were working through the pain theres not going to be a turn around overnight but this stock is harbinger for that. I think you watch the 155 to hold i like it lets get to zoom. The recent stock more than 5 up, end of the day, negative, dan, you flagged what had been parabolic move in the stock. For decent reasons. When this Company Reported fiscal q1 earnings in may they had sales up 170 year over year astounding and theyre up 75 sequentially. They guided in midmay to Something Like 50 sequential Revenue Growth investors paused for a minute. In early june, this morning the stocks up 50 or so this company is pulling forward a lot of demand. Who knows when we get back to work in a normal fashion, who knows if theres a backlash of doing zoom one after another all day. Its a great product, a great service, a oneproduct company, that will be a headwind for this company. It trades with 73 billion market cap. It really is going to take time and other offerings to grow into that valuation i cant tell you to sell it. Feels like its going to 300 look at the way the other stocks are moving understand when you get a gap opening like this and reversal you might see a follow through tomorrow and will feel ugly next week pick your spot where you will own it and dollar cost average into everything. I love that you dont have to wear proper pants while doing zoom thats the one upside. Whoa. No, no, no. Something you want to tell us. I meant wearing yoga pants instead of slacks or skirt, Something Like that. Business attire. Okay. I was just looking for clarification. Im not quite certain what qualifies as proper pants. You made that abundantly clear and we should probably just move on at this point. All right lets move on todays broad market rally start in asia with shanghai scoring almost 6 and Chinese Security times saying fostering up healthy bull market is more than ever that triggering a explosion of searches on social media how to open a stock account. This is reminiscent when day trading waya huge frenzy in china and they had to put a stamp tax on trading. We saw this in 014 2014, and i massive run june 2016 had a pretty wicked pull back. Remember what the central bank is doing maybe the pboc doesnt have the same type of ability to communicate but they certainly, the state agencies and the securities journal, with a front page article about this, talking about the wealth effect owning stocks how it will be a good time and the Chinese Government has bought stocks before and can buy stocks and understands and sees whats going on around the world. This is a massive break out. We talked about it last week, the fear around hong kong and naturalization law in china. The reality is the emerging markets are breaking and the dollar is going higher huge tailwind for stocks some chinese tech names are not just for today but also for tomorrow and i think the market will give you more i saw tent cent streaming, theyre spotify, an off shoot of ten cent, to me is one of the most interesting tech incubator in the world i think its going higher. Lets go deeper dive to some chinese stocks chris, what are you seeing you know, i think tim has it right. Look at how the average investor will play china. I think kweb is the place to look, the chinese ticker, kweb were right back to those 2017 highs. Remember, this has really been the bare market in the better part of two years. Question is as we push near the old high dozen we embrace old highs, do with embrace or fade to answer that we have to look at the big weights driving all these em so when you look at the second largest weight, al bacibabe is already taking out 17 highs and blew through 230 in last several weeks. Got to look to big targets if you like large weights the first largest weight is ten cent its already broken out. I think pull backs for support it is also outperforming s p 500. So outperforming u. S. Tech is a remarkable feat given how good u. S. Tech has been i also think you need to start looking for laquers. If this is a group move you have to go down quality scale and look for whats catching up. Baidu is an example of that. This one just starting to turn i think anything back to 125, very good support. Id be inclined to buy that. The bigger question for investors, whats driving this move the dollar is copying here dxy had a very tempered rally, it should have been stronger, that was a tail, we failed at 98, i think they will push it down to 95 that seems to be tail wind for em trade, Natural Resource trade and china tech trade i think stick with it. Sounds like theres a lot of forces at work, not to mention the wave of retail money Chinese Governments attacking the shoulders of banks saying its time to foster a healthy bull market postand because postpandemic because its more important than ever to do. Yeah, and you wonder where it is coming from, if you listen to President Trump speeches over the weekend he mentioned china how theyre going to pay for their involvement in the coronavirus. This rhetoric continues to get ra wrached up what you are seeing out of china 45ir i theyre tryingto be ahead of the curve to get the market higher. With our market higher President Trump feels he has equity in terms of racheting up the rhetoric it clearly matters for the market but nobody cares now but i dont think it will go away any time soon. Dan you know its interesting that tim mentioned the move in the shanghai composite in 2015, if you remember, it kaulz caused a great deal of global volumality, stocks, fixed income and it had been tremendously volatile in 2018 went from 2500 to 3500 on the trade war so to me the market cap is 5 trillion equal to microsoft, ample and amazon apple and amazon seems our fed has greater control over our stock market when they want to over the bank of china to me it seems like a fake market, like a lot of things out of china but cant argue with the charts that backa is breaking out and it looks like the real deal. You dont like the overall composite but you like baba. Its listed here i wouldnt buy the chinese market. You mentioned chinese tech versus u. S. Tech who you rather, which one . I think u. S. Tech is still global leadership. I want to respect that but to touch on something dan talked about, its not just china working, a lot of related markets, look at taiwan, look at the aussie market firm as well the related stories are telling a very similar tale. Lets switch gears, were continuing to follow continuing stories across the nation with more coronavirus hot spots popping up over the weekend, now the latest. Reporter these record numbers, just since july began we added 250,000 case in the united states. We had four days more than 50,000 cases the testpositive rate has also increased. Florida reporting record numbers over the weekend more than 10,000 cases yesterday. More than 11,000 on saturday they did close some beaches. Some over the weekend did remain open meanwhile hospitalizations continue to be on a disturbing trajectory in states like texas, more than 8100 arizona, more than 3100 people currently hospitalized these arent the only state thats are having issues georgia is also one of concern and multiple states from alabama, montana, new mexico, south carolina, tennessee and wisconsin on the peak of their sevenday average. In terms of the areas with the fastest growth, still mainly florida, jacksonville with the fastest growth with a casedoubling time of pace of eight days, following by charleston, south carolina, orlando, texas, and tampa. Good news is were seeing progress on treatments the antibody cocktail drug that could be preventative and treatment is now in latestage studies and should see data from that late in the summer that could potentially be available before vaccines of it works. Well be eager to see the data when it comes. Meg, thank you for the latest on the hot spots and treatments. In terms of who or what you might trade. Regeneron is in there. Lily with another antibody. Without question one thing were stead fast is on biotech i believe theres alltimes as well talking about amgen for a while but that stock made an alltime high last week, broke prior resist angelesance resistance on the upside theres a lot of names we talk about. I understand, i get it, im a human being and want to be optimistic but again, the vaccine game does not happen as quickly as a lot of people want us to believe it does. Im still somewhat trying to be pragmatic and evenkeeled. I understand the optimism around it i dont see it happening as quick as a lot of people think it will happen chris, whats your favorite chart in biotech. If you look at the whole group. One that is a fantastic long term almy another good one. And among the former charts lily is fantastic breaking out of a 20year base thats what you want to own there. 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