Going. Well start off with game called market jeopardy the final market jeopardy answer tonight, the most important event for the markets next week. Now, remember, the rule is you have to phrase your response in the form of a question or it might not count. The stakes are high here bk, set the tone. Ill set the tone, alex how do i play this game . I just blurt out an answer i say whats the most important thing . Yes thats how it works. Have you not seen jeopardy. What . No i mean, i havent seen it in a while. Im more of a wheel of fortune guy. Its a lot easier game what is the stimulus bill . That is my answer, melissa ill tell you why. I think a lot of people are kind of writing that off, okay, were getting this back and forth, this is how the sausage is made. Ultimately theyre going to come to an agreement. Theres not much incentive for democrats to come to an agreement on this given this Election Year. That could be the wildcard in this. What happens if we dont get a stimulus bill, in your view, brian kelly and what do you do yeah. So im extremely cautious going into this. I think we could see a lot of volatility in the market by volatility i mean it goes lower. You look at some of the tech stocks and what stocks did today. Theyve certainly broken some patterns theres a lot of fragility in markets and bonds and commodities and gold to me, i stick with the gold and silver trade we have the fed next week. If anybody thinks theyre not going to add more ink to the printer when its needed, then youre not paying attention. Number two, if we dont get the stimulus, then the fed is going to have to print more money. I think ultimately gold and silver benefit from it. How much does the market go down if theres no stimulus bill its so hard to know. I think if there was no stimulus bill, it would be good for maybe a 10 pullback conservatively. Incomes have been higher post virus and preprievirus. Weve had spending hold up if we dont get the stimulus bill continuing to put money in peoples pockets, youre going to have problems with the overall economy. The Unemployment Rate is still unusually high we need this for asset prices to continue to maintain the levels that they are. Steve grasso . I would say what is large cap earnings for me we have to see that switch weve never seen the chasm between growth and value be as wide as it is right now. For me, how would you position that i mentioned the other night when i was on air that i sold my apple and i sold my microsoft last week. I doubled up on a lot of my value plays. So i wound up buying tse, wrk, oln. And i think thats the biggest question for the market. We know what the fed is going to do, to brian kellys point we sort of know what that stimulus plan is going to look like if we dont get it, 15 down would be my guess. I think theres a vested interest in both democrats and republicans not looking like the bad guys in the marketplace. There is one day next week where we get apple, amazon and alphabet thats going to be a crazy night on fast. Bonawyn, some might argue the setup for big tech earnings is even better after the big pullback we saw this week in advance of those earnings. Yeah. Sticking to the rules of the game, im going to go for the gusto here and the daily double. My question or answer is what are stimulus and gdp figures i think the gdp figures are going to shine a little more insight into what exactly Economic Activity is and the breakdown there as well. I think the devil will be in the details as it pertains to the stimulus bill. I think bk, mills, grasso all hit on it. Really were going to need to see how much of the unemployment benefit is going to be continued. The way that im playing it, as they pointed out, the fed is going to continue to print money. I think that bodes well for precious metals. Again, i hate to hop on the band wagon but this is clearly the right train to be on the Home Builders are also set up nicely. You saw pultes earnings yesterday. You have their unique situation with specifically to Home Builders because they serve a slightly high eer niched market with the low rate environment and given that weve all been talking about stress valuations across asset classes, its really a case of where else do you put your money bonawyn is in the penalty box for creating his own rule. I said what is the biggest market event for the week . Its not plural. Its singular and you did plural jeff mills, i feel you can play by the rules. Im an avid watcher of jeopardy. Ive got this. I say what is the fed meeting . I do think its important. Youll get a little bit of an assessment of Economic Conditions i think that will still be cautious but the big thing is the Balance Sheet. I dont think its coincidence that the Balance Sheet started to peak and roll over a little bit the beginning of june along with stocks. I think what that will look like is the fed saying we are not going to let the Balance Sheet shrink, we are going to do more. I think thats rates staying low and the dollar rolling over and maybe taking a little bit of momentum out of the cyclical trade weve seen if you look at industrials, small cap, mid cap, they are always losing momentum at that downward slope 200day moving average. Number one, i would like to staples. I think staples are obviously levered to low rates i think they hold up better if things get a little bit dicey. Theyre also levered to a lower dollar they have the third highest International Revenue exposure in the s p i think you look to Home Builders and more stimulus. Need to keep buying gold. Grasso, are you worried that a lot of those sectors you rotated into may look like they may be rolling over . Yeah, totally i had such large gains in the tech space that i feel as if i didnt want to push the trade a little too hard. Where will tech go from here where does an apple or a microsoft go from here longer term, i think, higher but theyre so high already and so overbought. All these value plays are trading at trough valuations so my downside is limited there. Id rather be a buyer of that than holding onto limited upside. Lets get some more analysis on tech. It will be a big week for tech earnings the sector already hit hard this week carter says there are a few names in the space flashing even bigger warning signs it was a bad week for tech. Not fatal, but tech worst sector on the week. What we also know is were approaching a record that was only set one time before, which is to say the sector, s p 500 technology, has now gone 96 sessions without having three down days in a row the longest stretch ever was 108. Inve it was in the july to december period of 2004 after it ended, tech dropped 15 , twice the rate of the market drop in the period. Lets look at a few charts what we know is that key tech stocks and by inference tech sectors and tech aggregates are all breaking trends. The first is apple apple is a tremendous performer. We know its up 26 year to date you can see the welldefined trend line in effect since the march low and the break of trend. Take a look at microsoft its really the same circumstance the socks, again same circumstance welldefined trend line in effect since the march low and now a breach or break of trend the next chart is the Technology Sector, the s p 500 Technology Sector having a great year, of course, up 15 here too if the big constituents break trend, the sector you see here is breaking trend two more take a look at the nasdaq composite itself than the nasdaq 100 which is the marquee names, the biggest and best is this the beginning of a more meaningful giveback . The tech sector is down on a three or four day basis 6 drawdowns of 10 or 12 are perfectly normal in high flying sort of higher excitement stocks that are embraced, crowded, loved. The presumption of this break in trend is not over. What outperforms in techs stead while tech is on this 1015 pullback . Thats a good question. What we know is that in great periods theres a lot of auto correlation, sort of all behave the same what i would be looking for are oneoff idiosyncratic names that arent tied to the aggregates. Is it the tale thail that wags the dog. We saw what happened to intel today. Its picking their own favorite. I like salesforce. Com. Brian kelly, do you like any of carters suggestion there is . I like service now. That stock has just been absolutely on fire crm would be another one that he mentioned in there if you want to try to hide someplace, again, if the market is going to go down 15 , almost all stocks are going to go down. But i still like these kind of cloud plays. I think they continue to do well i mean, alternatively jeff i think mentioned the staples. If we are going to get the selloff, it could be precipitated by a weaker dhaoll. Maybe they get some tailwind on that thats the way i would kind of play this and hide out. I thought it was interesting that the chart master didnt say this sector will outperform when tech underperforms or has its pullback he said its going to be idiosyncratic names because you dont know if this is a sign of weakness for the Broader Market or a sign of weakness just for this particular sector. Thats right. Im concerned about the cyclical trade. I mentioned that as losing momentum as its downward sloping resistance on the other hand you have all this crowding that took place in tech the question is where do you do, what do you do i think about semiconductors now you sort of know whats wrong. The stock very quickly priced in a 15 decline. Now its trading at a valuation at ten times forward earnings where the stock has been wellsupported over the past couple of years. Looking idiosyncratically at certain names, that may be a good strategy. I think for us and the way were positioned, i think about our three largest holdings, amazon, apple and microsoft. But theyre also our three biggest underweights relative to the benchmark. When you think about that and trying to retain some diversification. The context is that the nasdaq 100 along with the break and trend is sitting at a valuation that is the highest in two decades. So am i out of the penalty box now . Yeah, yeah. Me calling on you and allowing you to speak is you out of the penalty box. Yes, maam. Honestly, im a bit cautious on intel the stock has rolled over 1516 its broken its trend. Yes, we can speak to valuation im not going to knock that whatsoever however, im going to be following the trend until i find a support level. Im going to have to stick on the sidelines. Moments ago President Trump signed an executive order aimed at big pharma. Plus, its always 5 00 here on fast money. What better way than to kick off the weekend than with a stock that isbubbling higher save hundreds on your wireless bill without even leaving your house. Just keep your phone and switch to xfinity mobile. You can get it by ordering a free sim card online. Once you activate, you only have to pay for the data you need, starting at just 15 a month. There are no term contracts, no activation fees, and no credit check on the first two lines. Get a 50 prepaid card when you switch. 5g is now included with all new data options. Switch and save hundreds. Xfinity mobile. Welcome back to fast money. President trump signing an executive order or actually a few of them aimed at lowering drug prices. Meg . He actually signed four executive orders, which was one more than everybody was expecting. And the extra order is actually one thats favorable to the pharmaceutical industry. Lets walk through what he is promising here the first order promised discounts be passed through on epipens and insulin. Its bad for those pdms. Fourth is whats known as reference pricing to other countries or most favored nation status this is one that the president says wont take place for 30 days hes inviting drug industry executives to the white house on tuesday to basically hash out a deal to avoid him implementing this order ive been reaching out to Pharma Companies all afternoon to see whos going. Nobody yet has an answer for me. But the Industry Trade groups are starting to weigh in on this bio, which represents the biotech industry, saying while we strongly support todays action to help a broken rebate system, adopting foreign price controls by executive fiat will cripple the Small Innovative Companies developing vaccines and therapies that will help end this pandemic. Pharma say theyve been working around the clock to develop vaccines to treat and prevent covid19 and the administrati administrations proposal is a reckless distraction the stocks we move on this were those pharmacy benefit groups. One of those executive orders basically paves the way for the importation of drugs from canada, lowerpriced drugs yes although a lot of folks are saying that would be very difficult to implement thats kind of the reaction im hearing across the drug industry on this right now. Its just that President Trump has tried a lot of these Different Things none of them has really stuck. It already seems like hes backing off the fourth executive order. Youre not seeing drug stocks react strongly to this because theres disbelief any of this will have a major impact on them. Youve got to thinks that an Election Year. This really sets the tone in terms of what will be an issue come Election Year what will joe biden put forth to counter what President Trump is trying to do because lowering drug prices, i mean, that sells in america. Everybody wants to pay less for drugs. I was just going to say its a bipartisan issue so what weve all commented on on this show here and there is that with the pandemic it seems as though the bullseye on the back of pharma and biotech was or had been erased shortterm. This is a sign that its still there. When you see the ibb in the last couple of days drop 7. 5 , thats an awakening when you see pharma stocks drop, thats an awakening. For me i would play it with a muted etf. The 50day moving average is 135 to 75. Wait for it to hold. Theres still a bullseye on the back of all of these names on a political front. Brian kelly yeah. I mean, i agree with grasso in that theres a bullseye. Both sides of the aisle this is going to be an issue for so i think these stocks are challenged i actually think it goes to what would happen to the stock that find the vaccine are they going to be able to charge any price i think for those playing biotech or any of those names making the bet that one of those companies was going to come out and get the vaccine and beable to charge a high price, i dont think thats going to happen, whereas i think its probably better if you get a vaccine to just buy the broad market or cyclicals rather than biotech. Coming up, investors are seeing double digit gains in this stock whats so kpox kaintoxicating at this thing youre first. First to respond. First to put others lives before your own. And in an emergency, you need a network that puts you first. That connects you to technology to each other and to other agencies. Built with and for first responders. Firstnet. The only officially authorized Wireless Network for first responders. Because putting you first is our job. I see a new kitchen with a grill and ask, why not . I really need to start adding less to cart and more to savings. Sitting on this couch so long made me want to make some changes. Starting with this couch. Yeah, i need a house with a different view. And this is the bank that will help you do it all. Because at u. S. Bank, our people are dedicated to turning your new inspiration into your next pursuit. Welcome back to fast money. Check out boston beer topping the tape today, shares bubbling over 25 after the Company Reported a monster earnings b t beat do the gains keep flowi ining w people are apparently drinking while theyre home bonawyn, i hear through the grapevine that you have firsthand knowledge of some of these products [ laughter ] you know, i love the products if you kind of look out of the whole Competitive Landscape going on in the food sector, youre seeing a rotation into Health Conscious consumption whether its calories on menus or a vegan burger at some of the fast food chains i think this is a trend. When the bars opened you saw a glut of consumption there. Those got closed i can be Health Conscious and calorie conscious while i do it. The hard seltzer with a beer. The question is will these Consumption Patterns continue as the economy reopens . As the economy worsens, is this an area in the budget that gets cut back thats part of my concern if you listen to the ceo of boston beer, he basically said people are buying 38 more alcohol. I dont know that that continues forever. Theres a ton of competition i was at the beach last weekend. This was truly in the corner but also high noon, white claw its emblematic of the hysteria in this market time for your final trade bonawyn . Xhb. General mills. Talked about Home Builders. Dl horton is one i like. I think it continues to benefit from the low rates and plays in that high demand, low price home space. Steve grasso . Tfe i cannot pound the table hard enough that this one is undervalued. Brian kelly thats an interesting one you dont hear that a lot. So gold and silver is doing well, but bitcoin is doing even better, up over 33 . Looks like its going to break higher i knew you were going to say bitcoin. [narrator] this is kate. Hey. [narrator] she takes two prescriptions. Kates son jack, takes one too. Kate works hard, and thought she had good insurance. But she still pays too much. Thats no good. So kate downloaded the goodrx app. Now she can compare prescription prices, to find the best discounts. She even beats her insurance price. Good for you kate, good for you. Goodrx, stop paying too much for your prescriptions. Download the free app today. We know its friday because its options action time heres whats coming up on the big show. As the saying goes, home is where the heart is now carter worthi this iie thin where the money is and tony zang has a way to pilot you through. Plus, hold the phone, literally. After a huge run, apple and other tech giants are on dec