To buy the dip should you hold onto what you have in terms of technology or should you get out of some of names you have ridden up or wondering what to do i ask you through the prism of selling slack on august 25th and then adding to crowd strike this week and what that says about how you view that question one of my favorite sayings about being a Market Participant is if you dont know who you are, the stock market is a very expensive place the find out i know who i am. Its taken me a long time to get here i understand the way that my mind works in both bull markets and bear and bear markets. I understand the things i have to correct for the biases i have to overcome. I cant get rid of them. People dont really change they get smarter but they dont change theres two ways tho think abou your question. Here is a stock thats 400 chair. Down 18 from a recent high. You watch it the whole way up kicking yourself that you dont own it one of the hardest hit names a of the last week or so, if youre type of investor thats looking for that bargain in a stock that you always wish you owned, this is way the take advantage of that and buy in and the bounce today is pretty healthy. There are other types of investors and those are the investors that say dont tell me what got killed the most tell me what didnt budge. I want to know that when the nasdaq is down 1,000 point, i want to know which stocks. Nobody sold them people so bullish o isish on a , they are willing to look past the volatility stand and buy and not even at a discount thats what brings me to crowd strike its not like it didnt go down it was down double digit percent. I hope you didnt use the restroom or blink your eyes or try to catch an episode of el visi television because you missed it. Im looking at stocks that arent been sold i want to know where the real buying power is. You have to noi who you are and the fact you are that type of investor and trader and you have to live with it. Thats where im coming from i appreciate the explanation. Strategies dont always work sometimes youre a prisoner to the way the market moves and you have to adapt whatever your strategy is and then you work with that. Jon, youve been buying new tesla calls this week. Tesla is one of these names that got obliterated in the threeday sell off this fastest correction in the nasdaq on Record Record high down to a 10 pull back what does that say about your view of the market right here . To me, did it deserve to be over 500 i dont really think so. Obviously, they thought it was high enough that they raise another 5 billion at that level through some rather unique way of offering their shares i was shocked as you are that the krek was correction was so and so fast not to boar retoo much from a vuniversal theme. They traded down i thought that was wash out from over 525 on the highs just a week ago yes, when i saw them coming back and them being institutional paper, i bought in there another one, draft kings, scott. This one just crazy. A little over a week ago, some firm downgraded them, downgraded pen and you were able to pick up shares at 34 bucks share today, its 10 higher than that were not talking about a high flying tech stock or a stock that you dont know is a car company or is it a tech company, a Battery Company like tesla were talking about draft kings. That thing got slammed down there. Knowing who you are, who i am is a person that wants to take advantage of fear. I feast on fear. Im like a shark in that regard, scott. I love to smell that blood in the water and jump in there and buy. I saw that in draft kings. I saw that in tesla. I think you see it in a number of the tech names that have made very sharp v shape rebounds several times this year. Not just in march but very recently and thats what i love to see based on what youre doing and some other things youre seeing, do you have a feel on whether you think that the correction that we have witnessed in the nasdaq specifically is over or is there more room to go, do you think . There could be more room. The reaction yesterday forgive me for throws it the way i did. Im not talking down 1, 2, 3 . Im talking a more substantial correction that may need to be witnessed. Im asking you whether you think it is or not i have no opinion on it. Okay. My opinion is that a lot of the stocks that are at the core of my portfolio right now stocks like apple when i saw that they ordered 72 million handsets thats alleged the order they put in reported by a number of the apple tracking sites 72 million handsets for the new iphone 12. I think when you get a correction from 138 down to the teens in apple that represents an opportunity and theres not a lot of downside from that level. To answer your question, i dont know that it means that we have to see a much broader tech sell off. I do think tech continues to out perform the so called value stocks im not afraid to be in some of those stocks if the price is right. The other issue to deal with is whether you think well be in a more unsettled vierm now at least up until and perhaps through the election right i dont see any way we wont be in a more settle environment theres so many questions out here for the last three or four week, ive just gotten whipped sawed with client conversations on both ends of the extreme terrified that biden will win. Terrified that trump will win. Some in the middle i think that will lead to bum bumpiness with the nasdaq being done correcting or still up 25 on the year even after what happened last week thats a lot the valuations are stretched not many but many are very stretched. I couple that with the fact we dont have vaccine yet we dont know what the real Economic Impact is what the real fall out will be from this pandemic were just going to start to figure that out. Value weighs are stretched i dont see any path to it not being a bumpy ride i dont think bumpy is bad could create something healthy theres no way it will be smooth sailing. Jim you have 12 cash what do you anticipate in the days, if not weeks ahead for the market specifically tech. Im going talk about it from a stock pickers perspective. I think everybody gave a great st strategic overview first off in large cap tech, just take apple, i think apple is perfectly safe. 30 times forward multiples in a 0. 7 tenyear treasury world, i dont blink an eye at that where i think theres some air pockets that may form are the new economy stocks that are Great Companies but that are up six fold in the case of zoom or five fold in the case of tesla valuations are not just unseen they are obscene those are susceptible to profit taking in terms of where i would put money to work, as you see maybe some money coming out of those high flyers, its not just the apples, the googles. Its maybe the nvidias of the world. I did add to visa last week and i got my eye on sales force. On the other side of the equation, i think you still have to stay away from energy and financials even though i own some of them, its hard to make compelling case where it is easy is the industrials. I dont know if anybody missed this but the industrials are on fire you look at Companies Like caterpillar breaking out its at a 52week high general motor, forget where the price is the underlying fundamentals of car sales and car pries are terrific you can look at industrials for opportunities if you dont want the stay in tech i know youre thinking a lot about this now, we know you sold slack. If i recall, you no longer own zoom am i right about that . I took my original costs. My original cost average was in the 70s prepandemic i have the houses money on the line i dont recommends that i ves r investors i veinvest that way. Zoom was a trade for me. I wanted my principal back out but im there. Not in the way you were before what about teledoc actually more if you buy a stock at 70 and it goes to 300 and you take off the original cost, the shares you are left with are more than what you starred with im still there. It matters to me what about teladoc . No position dont own it you did have a position, right . Yeah. Check this out i will only you understand where im going with this, right totally i will only personally put on concentrated positions with stocks of beta 1. 7, high momentum, high ok octane stock, i will only handle a few at a time you will never see a homie like me with 12 of these things ricochetting off the wall. Ive been in many of these high octane names i cant be in all of them at once i dont believe that five years from now, any of them will be in the conversation theyre not all going to turn into google and apple. I hope people understand that. You cant fall in love with your stocks because they dispyre all the disappear all the time. Im in zoom. I cant own them all its too much. Im 43 years old i have other things im focused on i think were all trying to figure out what to own, whatnot to own where we are and where we may be going. The nasdaq is in ominous company. We had coming off the highs, a threeday decline and nasdaq 100 of minus 8 after hitting a 52week high we have only seen that set up five other times back in 1985. Three were in early 2000 one was in november of 07 and one was in february of 2020. I think whats notable those are some ominous dates i think if we had to draw any type of analogy, it would be the 2000 time frame. In fact, this is what is lost on a lot of people, from march of 2000 through the end of the year, there were four sectors that were up 40 take it step further theres an index thats a reverse cap weight index where the smallest kp companies in the s p is given the most weight. Theres some extreme analogies that are very analogous to some bubblelike periods. That doesnt mean the overall market has to be a concern some of the names like the coffee names, dunkin bucks starbucks, mcdonalds, the Home Builders youre not suggesting the nasdaq couldnt have more room to go to the downside. Throw out some ominous dates its like five dates and Everybody Knows what happened around all of those instances. Its more concentrated six names represent about half the index. We do think theres some downside risk. Were still 21 above the moving average. Outside of the july august move of this year, thats still one of the most extreme spread versus 200 we have seen in last 30 years we think theres risk in those big megacap names but like we have seen throughout other times in history, there are plenty of over names below the surface that can do well despite those maybe seeing some profit taking. Its not like it was in 07 where a lot of sectors continue and theres really no place the hide we think its more like that late 90s period where certain areas of the market got a little extended but theres others that can be played for the long side. Sdplp not the minimize it, this is basic area of the market youre suggesting may be over extended that is a good point. Its going to be almost impossible for the s p 500 to make meaningful upside progress. The average stock may be flat the hire jenny, you hear what jonathan is saying, hes not the only one. If you have large upset, its going to be awfully hard to keep those winds from blowing a lot of other stocks over maybe the point he made at the end was critical is the stocks could have positive returns. That is exactly what we saw in 2000 the high growth trade collapsed, the value part did really well you could have a lot of winners out there. Be carriful of falling in love because some stocks will disappear. I think thats true. I think theres a tremendous amount of stocks out there that wont disappear. It has significant cash flows thats been lost in the shuffle of our love affair of growth at any price. We have been ignoring the fact that those guys dont have earnings those with earnings and those with cash flows could start to actually jonathans point about the rest of Market Making up for the top part that backs off. Josh, time to worry the storm clouds getting a little too ominous now or what i just go back to this idea that the way you orient a port kno portfolio around a realistic view what do you do for a living. I own an orthodontist practice really and youre trading on technica technicals you prop the phone up to the patients mouth. Thats an investment stra that requires constant monitoring if youre the kind of investor who is setting up dividend reinvestment portfolios and buying a lot of the jenny stocks, i love those stocks. That requires much less. Forgo forget about ominous storm clouds those five dates is out of 100 years of market history. Its not a really big sample size its a sample within a sample thats not that big. Give me 1,000 years of market data and ill tell you when you say and jonathan, ill give you a chance to respond. I was on a huge roll here, judge. Which is why i had to jump in when i did krinsky goes onto say its not insignificant data we have only seen it lose 8 or more over three sessions immediately following a 52week high five other times. You dont need to have 100 years worth of history to have the instances that he sites. Jonathan, ill hand the ball the you. You run with it now. The push back, you could have made a lot of extreme cases at any point in august. We have been talking about how stretched the nasdaq was you could have said its different this time. Interest rates are different, et cetera the reality is it was different this time but we still lost almost the entire month of gains in august if three days. That just shows you the power these names have to joshs point, it is a small sample size. Were not saying thats going to happen we are going to say when you see something that can lose a month of gapes in three days, that tells you its not this safety trade that we think a lot of people perceive. They do is risk. Were still 20 above the 200day outside of the last month and a half, would still be one of the most extreme stretches we had in 30 years it may be the alarm bells may not be lost around the big five or faang or the largest megacap names in the lights. Maybe the alarm bells are going off. Maybe some of this new money has flooded into how much Robinhood Money was flow sboog ting into the megacas its probably not new money its probably margins and options level. Even worse. Even worse if youre being reasonable and honest with yourself, youre saying yes these stocks lets say 50 to 100 stocks that we talk about relentlessly had been incredibly stretched into the end of august. Lets all concede that nobody would argue otherwise many of them had been incredibly stretched in july in june, in may and this idea of losing a months worth of stock Market Performance in three days, we lost almost two years worth of stock Market Performance in 16 days in moarch and april these stocks came ripping back i dont know thats the type of Market Action that we want to say has a cause effect on what happens next last thing one pr unprecedented stuff happens all the time this time was different from march and april. We pulled back in the magnitude over those 16 days because we had a once in 100year event inflict the economy, the market, health care. Krinsky, tell scott what the tenyear treasury was yielding back in 2000 those ominous dates youre talking about. What were you able to get on a yield if you sold out of your stocks back in may of 2000 josh, thats my point if i came to you last week and said the nasdaq is about to do something that its only done in 2000, you could say you cant do that because Interest Rates are different. Thats my point. One of the the things ill say, the pull back and snack bap bac march was coming from apple below its 200day moving average. This is not saying the end of the run by any means its saying think of the risk in some of these big megacap names and dont be surprised if some of the middle ground stocks that dont get talked about as much actually out perform in the coming months. Well see where the none goes i agree with all of that. S jonathan, well talk to you soon theres tom lee with an opinion on the market. Most of them have been right today hes saying fed put equals buy the dip. We must still by the dip he also thinks theres better risk reward in the epicenter stocks as hes made that case numerous times and in print. That works only if you have money that comes out of tech and goes into cyclical stocks. Lets take a quick break thats not exactly true quickly theres been tremendous in flows into bond. Its just huge its been like hundreds of billions of dollars this year. Thats money that can and should come out from low yield insecurities into the stock market as it corrects. Okay. Good point. We will take that quick break. A historic day on the street citi naming its first female ceo. Its the first time a woman will become head of a major u. S. Bank its big deal. Well talk about that. Debate the financial next on the half were back after this. Welcome back lets get the headlines now with sue. Here is whats happening at this hour. Senators Mitch Mcconnell and Chuck Schumer trading bars ahead of a vote on covid19. Its a relief bill that mcconnell is saying that democrats should stop hiding and help the American People schumer says the republicans delayed relief for months and offering a bill with no input for the democrats. In georgia a fugitive wante for shooting two people. Shes stepped down effective immediately. The move comes after backlash. Developing stories well keep an eye on it. Back to you. Lets talk about some of the moves youre making. Whats going on . Scott, i exited sonos just did because the thing hasnt been moving and some of the calls i was long in there were shrinking i said, ill hit the exits took some profits on amd that we did for unusual activity. I was long calls and short puts. This one rallied significantly we had a nice trade yesterday, scott in one of josh browns favorite stocks. Shake shack. At the money calls yesterday the 67s that expired tomorrow, friday the 11th. Those calls accumulated in big money yesterday. They went 5 trading from 67 to 72 and change most dated within the next 30 days some of in days as in two days until tomorrows expiration. Sounds like well have a debate for a moment on shake shack. I think youre calling shake shack too early to make that move i was just teasing the shark. I dont want to get too cloese t the shark. Josh, youve made the case. Its options. Hes doing options hes defining his risk. The difference for me and jon. I can sit forever and can be right. Jon is leaking gamma and th eet out of his ears. Hes got to make a move. I hear you. The thesis is different. I get that jon is doing this for a trade but maybe youre more optimistic about what you think shake shakes exploits are Going Forward even at a time where josh, youve been a little more cautious on that name due to the pandemic and more some of the obvious reasons you stated. I give josh full cre