Jason snipe is here as well. Lets get a check on the markets. Stocks are still deep in the red. The nasdaq, the biggest losers by far today on pace for its worst day since june 11th. The s p on pace for its worst day since june big tech names like apple, microsoft, facebook. There you see the index and some of the names amazon, alphabet they are the ones that are dragging the markets lower look at apple. Down nearly 6 microsoft, 5 . Facebook, 5 amazon almost 5 and alphabet 4 whats going up . Only the bond, the tenyear note at. 62 . Lets kick it around a bit is this the beginning of something bad or maybe not i dont think it is when i was on the show last week, i said, hey, all of us on the show today are greedy. Greed has a way of biting you at some point and you have to decide is it a flesh wound or is it drawing real blood. I think its more of a flesh wound. Its taking the weak handed traders buying things like zoom and now selling. That lets others as well were saying amazon will be next wants to split maybe zoom will split. Money piled in now youre just seeing a natural course of markets. Its not a big deal. Its not one single event. I think that were going to be okay i dont know if it will last today or go through the next few days but the important thing is theres no valuation support in my mind for the market. Its a momentum market the bet has to be the momentum hasnt stopped its just tataking a pause im not putting more money in nor am i selling today he sees a trickle of reasons why the market is selling off. What are you see and what are you doing . I think stooefr is rigeve ist there are reasons the market is semii selling off. We seen the tech names perform looks like they reached some unsustainable prices whether that reaches today or tomorrow, i dont think anybody knows. The risk reward trade off between growth and value has been pushed to a great divergence level we have used the latest moves in markets in tech to kind of take money out of momentum. Move money into some of the cyclical laggards. Were not making meaningful moves. This is at the margin, were making moves thats sochl tme of the aks wece moving raising a little cash. Its just an acknowledge that some of these dichotomies, i green growth has out performed value by 33 thats one of the largest in history. Its a huge dichotomy. I think its a matter of prudence to kind of tap the brakes the fed came and pushed us on our bicycle and we got a lot of momentum were going down the hill. Its time to touch your feet to the floor and make sure youre balanced a little balancing, a little repositioning but not a complete abandonment of the strategies you had in place the summparty has been going all summer long or maybe since march. The punch bowl is getting a little dry or will it get refilled i think we need to think about the broadening of the market its there its still a bit available we can brink from it what were seeing now is probably the end of the insanity of the party and thats okay maybe the party goes into a more moderate phase and other people get to enjoy the dance floor now. Its an interesting thing. If you look at the value indices today, they are performing relatively well to the Broader Market i dont think its over. I just think those who partied the hardest, it might be time for them to take a nap im going to save the last word for josh. Jas jason, what do you think it does appear, we started september in fine form and today a really rather surprising pull back i cant see a headline thats driving this can you . I agree with most of the panelists comments i look at this summer, which is historically great, particularly last month which is best august in decade ts i think its a bit of rebalancing. I think its a bit of profit taking there wont be a lot of news and preparing for the elections. Theres a bit of uncertainty we talk about here in the office, theres something to discipline which i think is important. Josh, what are you thinking . I broadly gle with what every one had to say today it feels better. I do think that the bunch bowl maybe had been over flowing. I noticed yesterday somebody pointed out it was a three times tesla etf that somebody had the audacity to put on the public markets. Things like that, you cant really trade based on them i think you want to keep them in the back of your hiends. Its like a realization of the way people are behaving. Now you have people thattrading are leading people into stock split trades, et cetera. Jpmorgan is up on the day. Im long plenty of stocks that are green or flat. I think if you have a diversified portfolio, this is another reminder of why you have it to begin with if youre one of these people that went 100 all in on the paraboliy stocks, the docusigns, the zooms, congratulations you played yourself. On a day like yourself you can never have too many voices lets welcome in two more. Why today . Why now . Its not clear theres a headline or anything that dictates today was the day the nasdaq was up 14 in three weeks. Youre still not cutting into muscle it was a bit of a buying cres crescendo. There was a lot of frenzied activity in the Options Market tremendous demand for short term upside bets on stocks. Thats been greating a little bit of erratic vibrations in the market in terms of hedging and things like that some of it, i think the fever broke today. Thats, to me whats going on its relatively normal in a high momentum extended market if you look at the up trend since the lows in the nasdaq composite, it got to the upper end of the trend and we had three or four pull backs dom, did you have any inkling this was coming . Yes and no. You have these statistically rare events when Companies Like the docusigns and the zooms and the tesla shoot up in a way that is just unsustainable. Theres no way that can keep going that high. It will be the entire world gdp by the time its done. Why perhaps the bulls out there say this is not the beginning of some broader correction is that you arent seeing exactly stresses in all parts of the market right now one thing i want to point to is something that rob kind of addressed and thats the cyclical laggards. If you look at the trading action today, what you are seeing is an out sized decline in Communication Services and technology you are seeing a green speck in terms of sectors today is in financials we have been down playing financials for the longest time and energy youre seeing some light there as well. The cyclical laggards are playing out. The other place youre not seeing a lot of Downside Movement being priced in is in the credit markets right now you arent seeing a lot of stress in Investment Grade credit you arent seeing a lot of credit in junk or high yield credit either. It lends you to this idea its the momentum stock side of thing that is really driving the downside youre not seeing a wholesale risk off move. That kind of thing happens you would see Energy Markets fall, oil prices tank. Everything goes along with it. Youre seeing a more Modest Movement out of certain sectors and into others. Dom, just add thats an indication of the denine benign rotation we would hope for then theres the catch up trade which we all hope happens which indicates a much more healthier path to an economic recovery how does the performance of those stocks today, you touched on it a momentum ag ago, how do fit into whats going on i think three of the best performing stocks are cruise lines. I dont believe these countered i dont believe the these counter trend rallies are meaningful i wish i were wrong about this this would be symbolic of an committ economy thats recovering faster the only way by the way, we had an episode like this, middle of may through june. This is the worst day for the s p since june 11th. We had a version of this already. It went on for almost four full weeks where the value quote unquote catch up rally, whatever those stocks ripped and teches got killed and served add a source of funds. I think a lot of these value catch up plays are guilty until proven innocent. Tell me where oil and where curve steepening is going. If you have a sustained move higher in oil, again, no evidence of that at all. If youre in these value stocks and they are green today, smile. Enjoy it for five minutes. I wouldnt base your whole life on it. Jenny, you want to jump in. I would love to jump in jenny, would love to jump in. I dont think its a fake out. This references back to a point rob made earlier is theres a 43 return divide between growth and value. Thats unsustainable i think its emotional exhaustion i think people have gotten emotionally exhausted watching tesla just spike and skyrocket the same with apple. I think its exhaustion on seeing those go up and up. I dont think josh is right that the growth value divide will not be a permanent narrowing of that divide and if we lump in financials again its an interesting thing to look at the reality that underpins these moves. The reality is the financials are Interest Rates and Oil Prices Going up or down . I dont know that it really matters. I think as long as they are steady and predictable its the only thing that matters for those stocks i dont think so. What we know let met say one thing and you can get back on this earnings right now for financials are 15. 5 of the index of the s ps total earnings they make up 10 faang, six stocks, 13 of total earnings and they make up 20 . Things are out of whack and people are exhausted with that i dont think you need to have Interest Rates to go up significantly for many financials to do well. I dont think you need oil prices to be above 60 for many energy and Oil Companies to do well i think there could be an improvement in the bottom half just stability josh and stooeeve and rob. The value trade is defacto a bank and energy trade. Period end of story if oil is not going up energy not going to work for a consistent period of time and the companies that compromise the xlf are not going to keep pace with it we talk about the out sized market capitalizations of faang stocks these companies are growing 20 plus a year and have 30 Profit Margins plus it happens year after year show me a reason why that reverse and ill say we get the sustained value. Its not happening today it may happen today, like daily. Its not happening on a monthly, quarterly basis. I hope it does im just pointing out the truth. Steve jump in and rob and well see good bbye to dom and mike go ahead, steve referencing josh with reference to june 11, the market traded up since june 11th at the peak yesterday, 20 . Nasdaq even today its still up 15 if you fade the moves then i agree with josh. We never had a pandemic before value cannot be a euphemism for saying companies that arent growing. Theres no value there we all have biases jenny has a dividend and a low p e bias i have no bias i can go into value, growth, anywhere i want. I choose to go into companies that are growing that will continue to grow and can grow regardless of economic condition. I never goat exhausted seeing good things happen i dont buy the exhaustion claim. I get more exhausted watching stocks lose money than going higher going back to all this, whats most important is your discipline if your discipline is 10 cash or 20 cash, you have to continue to sell otherwise today will be uber painful. Rob, tie it off before we bring in jonathan. Ive been skiing on this same ski for a long time. This growth trade. My leg is getting a little tired. Im going to try to put some weight on the other ski to have a little more balance in the portfolio. Im not saying to completely abandon everything thats working because we all know it can work a lot longer than we thought it could theres Tax Implications to doing that by taking some off the table of unsustainable valuations despite the durability of growth, despite the fact people pay up for growth in low Interest Rate environments, i also think markets are forward discounting mechanisms and when we get clarity on the election, we get clarity on the virus, youll be glad you bought some of these value sectors. Josh said that value is all energy and all financials. If you get a rotation into those sectors they will ben fits regardless of the fundamentals regardless you dont need the fundamentals to be there. You just need the rotation to happen i agree with everybody and i think you can ski on both skis rob, im glad you brought the vaccine. I think the vaccine story took a hit over the last couple of days the reason i p say that is the date for vaccine coming to market has been politicized. People on the fence as to whether they will take the vaccine or not take the vaccine now have come off that fence and said, im not going to take it what id like to do is everybody say when they would take the vaccine. For me, its at least a year or two when it comes to market. What about you rob, josh, jenny, when will you take it . I will go where i can to get it immediately im in full agreement with rob on everything today. Lets do there. Lets bring in another voice here jonathan is the chief market technician at Bay Crest Partners good to have you join into this discussion what are the technical indicators telling you about the market, what its doing today . Where its come . Where it may go . Tyler, theres ban lot of good discussion there. I agree with some of it. Disagree with some of it i think whats lost in the whole Nasdaq Market is theres a lot of things we are seeing today that we havent seen since 1999 and 2000 kind of the bull case for some of the areas of tech here is it got a lot of crazier in 99, 2000 if we look at the nasdaq 200 its about 35 above its average. You could say that could get a lot crazier. The other piece of the puzzle, when you think about march of 2000, every one thinks theres some major top in the market it was thats because very similarly technology was such a big part of the market and a dominating force. Here is whats lost. The day the nasdaq peaked in march 10th, 2000 from that point through the end of the year, the nasdaq lost about 50 of its value. Over the same stretch, four sectors in the s p 500 gained 40 by the end of the year theres a very similar set up in a lot of these areas of the market were not going o the use value but a lot that have not participated, were seeing a similar thing in 2000. I think part of the discussion is certainly accurate that i think you do want to be rotating a bit into some of the areas that havent performed it doesnt have to be value but it does mean we have come a long way in the nasdaq. The other thing ill leave it with, the market is not independent of itself on any given day. Were seeing that the nasdaq is down the most since june 11th. The nasdaq is up 17 since june 11th theres a lot of unwind left to go we think today is probably the start of that. Im thinking back to march of 2000 to the extent i remember it, there were a lot of Companies Going up and up and up but they were kind of phantom companies, werent they . They never made a dimes worth of money today were looking at a nasdaq with companies that are really blue chip money creators right every period is different. We have the fed with extreme low Interest Rate. Thats all the case. On the other side, the concentration within the nasdaq is actually more extreme today youre seeing what can happen when the biggest stock lost 8 in 30 minutes. That will have a dramatic impact giving the weighting just to put things in p perspecti perspective, were down about 4. 5 on the nasdaq were still 7 above its 50day moving average if we to excloud tude the earlyt of the year, there are things that are not add extreme they were in 99 and 2000 i think its just important to recognize that we have seen this play book before where if youre saying tech is overstretched, it doesnt mean the entire market has to come down as well all right thank you very much. Woo well pause there and get a news alert from julia on pinterest and well continue our conversation pinterest is making changes to its add policy ahead of the election saying it will no longer show ads to users when they search for election related terms like candidate names or polling places they banned political advertising in 2018 announcing a series of updates to direct its users toward reliable resources and to prevent the ability for ads to be next to political content saying they will show fewer recommendations about election content the dpaen is saying if any users, including public figures publish content that violates its policies or shares misinformation or hate speech, it will take action. This comes the same day that facebook announced it will not allow new political advertising to run the week leading up to the u. S. Election to prevent last minute misinformation but it will allow political ads submitted before that to continue to run. Facebook saying it will remove posts claiming people will get covid if they vote and label misinformation about the information and voting interesting to see facebook and pinterest shares low facebook will allow the old misinformation to be republish they wont allow any new misinformation basically, they believe is something is published far ahead of time, lit be time for the media, other people to do their own verj and realize that something is false. Next, the bright spot in todays sell off plus bank stocks falling 30 and one firm says now is the time to jump in. Well talk a bit about financials well talk about two of the big banks to buy the names and the debate is next in our call of the day halftime will be right back in two minutes. You can go your own way go your own way your wireless. Your rules. Only Xfinity Mobile lets you choose shared data, unlimited or a mix of each. And switch anytime so you only pay for the data you need. Switch and save 400 a year on your wireless bill. Plus, get 400 off when you buy the new Samsung Galaxy note20 ultra 5g. All right. Lets get some news headheadlin. Heres whats happening hyundai and kia recalling nearly 600,000 vehicles to repair brake lines that might leak and cause engine fires the recall effects certain kia sorentos and optimas the Brooklyn Nets announcing their head coach is steve nash this despite him having no coaching experience. His strengths as a leader and mentor will gain the respect of players. It took a couple of tries but spacex launched its next batch of star link satellites. It landed safely on the recovery drone ship a u. S. Court had ruled the nsa Surveillance Program uncovered by Edward Snowden