A big upgrade. We will find out what makes it stick out in that big social media space. Plus, petes got a fast pitch on one medical device maker he says could be a home run. We will tell you what it is as he lays out the big case thats medical miracle mystery chart. In a special bonus hour of fast money at 6 00 p. M. Eastern time, we are taking your burning trading questions. Tweet us cbs fast money and you might get them answered here live on the show in the next hour we start with that monster rally on wall street today the s p up more than 1. 5 and the dow jumping over 400 points as you can see there the nasdaq also up nearly 2 leading those markets Higher Energy stocks, financialis and the small caps as well investors appearing hopeful a new deal for stimulus is town the pike markets still down significantly for the month. Does todays action give you a reason to perhaps be more optimistic and for that perhaps, guy, i will turn to you first. Welcome its always wonderful to have you onboard. We got a bonus hour with you thats fantastic and i think the answer to your question is yes. You cant say that in a vacuum something we talked about the last couple weeks, probably a shortterm market bottom on a day the market sells off you actually saw that over a few days pete can speak to this the eviction topped out around 36 and as the market was selling off, the vix at the 25. 5 level that gave you a good indication we were going to bottom. One of the things we said for a while off that low a week and a half, two weeks ago, the obvious move was probably a move back to the prior alltime high of 3393 we made in february and steve can speak to this. Not only does that make sense for that reason. It makes sense because it would be a textbook 50 correction of the recent alltime high and the low we made a couple weeks ago so the answer is, yes. Lets see what happens when we get there. I say when because i think we will rally another 40 or so s p. Steve, guy teed it up for you there. Is this a level, is this a market right now, the action that you have seen, that makes you feel as though you are comfortable being long, comfortable putting new money to work right now. I know Everyone Wants that gut instinct of being positive on the overall market. The market has shown you nothing but positive because that gap is closing from the corona bottom to when we restart the economy you have a couple of levels. The 50day moving average, i heard you talking about it today, 3353. Thats why people are keying in on that level. Where did we bounce from the 100day moving average, 3210 this is technically a great setup to play it for a bounce, but the problem is we still have what the problem was we have an overbought market granted we worked that off a little bit what has been the mostover bought the tech space the most bloated names those six or ten names that we all focus on doesnt mean that other things have not rallied doesnt mean that other sectors have not rallied but its time to take a pause because the market and the economy are two totally Different Things a lot of volatility Going Forward. The biggest thing for me, dom, month end, quarter end this week i heard it was mentioned prior on closing bell. I still think its a big deal. I still think people are Underweight Energy we had m a today underweight financials we saw those rise today. What sold off . What rallied into month end . I think thats what you have to keep an eye on lets see if it lasts a week or so. Tim see more, over the last five trading days, it says that the big, one of the bigger Cloud Computing epss over 50 . Smh is up over 3 right now for five trading days. We also saw financials and, to steves point, lead the rallied it those are different parts of the market assuming some leadership role does that then mean that there is this kind of allclear signal if the bad and the good are going up at the same time . Dom, great having you getting me to say you have an allclear signal is tough to do. But i hear where you are if you looking at the triple qs in the nasdaq 100 you rallied 6 over three sessions, the semis, which they have pmultiple times the last couple of years and certainly out of the worst of covid19 have been a leader and something to follow. In fact, they have led the way both are now back over the 50. Today todd gordon will talk the technicals in a bit. You are talking about the broad mi ning of the market to the extent you are excited about the move in retail and small caps and along with that with the banks if you look at the european banks we are up over 3. 5 . These are the parts of the market that people want to see back to where you have an allclear and i dont think anything has changed is the guys who talked about some oversold conditions i agree with that. I think the nasdaq can correct further down and i mentioned kind of those late june early july levels. The fed is still very much your friend i think the payroll numbers will give you a sense where we need morphous cal health than just what Monetary Policy is. I think its a case seens partsy to give you confidence in terms of leadership and they led you on the way down from 2018 into 2019 and transports have been outperforming the market for the last almost four months now. So many key bellwetheresque parts of the market now. Pete, i know that you are on the news line with us right now at cnbc lets talk a little bit about what you are seeing in terms of trading action there is there something that makes you feel as though this is a constructive environment or are we due for a little bit more consolidation, perhaps even more discount pricing in the coming weeks ahead of the election . Well, i certainly could see the consolidation side of it, dom. I could tell you this also in the derivatives home where i live, a lot of bullish activity over recent weeks and it continues to come in now, a lot of that is shortterm, but today we are seeing a little bit longerterm type options that we were seeing where they were buying major indies not specific names or whatever indifferent indices across the board we were seeing some buying it felt like a bullish tone potentially. Not as much short term as we had been seeing. That makes it a little bit more interesting because its very easy to sit there in the short term and see this movement that we are seeing. But to commit to buy those kind of premiums that you have got to be able to go out to january, maybe december, that says a lot more about what they really are feeling, those very large buyers out there in the marketplace so volatility, guy brought this up and i have to address this real quick volatility was selling off all day. Well, going up early then it started to sell off. We nearly closed on the absolute lows of the session. That was interesting to see how that volatility ip decks was coming down as the market came down from being up 500 to 400. So a lot of Different Things going on right now certainly there are sectors i am impressed with that do lead us a little bit more so out of where we have been recently like transport, like materials, and a few other names. I like seeing what we saw in financials today thats one day we havent been able to see financials put back it back to back days together for a long period of time thats something we have to watch very, very closely. All right we did get back to back to back days with the financials this time around. We will see if it sticks around. Thats the first pass at the Broader Market narrative the next guest says last weeks lows may have been an even better time to bay than the march bottom investors may have a chance to get in lets have him explain why tony dwyer, chief Market Strategy at genuity. Lets break down your thesis how could it be at higher prices it was a better time to buy the last couple of weeks than those dead lows over there that we saw back in march . I dont know, dom we got the story wrong i didnt say that. I mean, i hate to put it that blunt. It was a terrific to buy the lows we had an opinion in march where we also thought that the market had set up for a sharp oversold time but i never said that i think that that low last week was better than the march lows thats not accurate. All right lets go then, lets figure out whether or not this is a good time to buy then mine, this is an environment, we are in a no mans lands, bounced off recent nearterm bottoms but we are below the record highs we have seen. There arent a lot of positive catalysts. We have the election looming why would you want to get into this market with all of that uncertainty . Extraordinary catalysts we have never in the history of our country seen excess liquidity where it is today. We have never had a Federal Reserve chairperson literally say were printing money and were keeping rates at zero for years. Even if the economy gets hot and inflation goes above our average at 2 , we are still going to keep rates at zero and, in addition, when you look at the global economy, you are seeing a synchronized pivot off of the low in growth its a really important point where you have the combination of excess liquidity that can fund growth that is just beginning. Dom, you go into problems in the market, when you have a lack of liquidity, when you dont know what the economy looks like, thats what happening. What as referenced in the preinterview, whats the difference between buying down 10 now, you know, last week, versus buying down 10 in early march . And the difference is, and, you know, we downgraded the market in january we were not saying to buy the down 10 back then the reason is you had no idea what covid19 was. You had no idea what the fed was going to do because you had no idea what the economy was going to do. We hadnt made the decision to shut it down yet today we have excessive fed liquidity. Its unbelievable. We have a global synchronized recovery and nearly every biotech is thankfully working on a vaccine or treatment and i think thats what the march reference is to. Whats the difference between the first 10 then and the first down 10 now, and thats why we wanted to attack last week remember, corrections are natural, normal and healthy until you get one. Then by definition it feels like something different. Tony, when you look at it, you just mentioned it, we have already had excess liquidity we have had rates at zero. We have had the ability to pop above the feds inflation target you just said it we tosold off 10 with all that so are you talking about a max down of 10 . I mean, that happened with all of the scenarios that you had. Do you think that this market is insulated for, if nothing else changes, for a 10 only selloff Going Forward . Given algorithms, youre a trader, it would be ridiculous for me to say that let me give you some stats my buddy, i saul him call him m dude, our stats that we came up with today since 1962, this was the tenth time the s p has pivoted off a 30day low while in an uptrend and then had an 80 upside volume and upside day. The worst case six months later of those prior nine times was one time a loss of minus 0. 1 an 11 median gain in six years one year you were up median gain 16 . I have no idea i have proven to the viewers, i am not the greatest trader in the world on the intermediate term front, i stick with the data. And the data on a macroeconomic front and a trading front suggests by the way, in this data it shows when we did the study the next two weeks are chopra this is going to be choppy it should be. Py. This is going to be choppy it should be all right. Choppy into the election and beyond as well tony, thanks great to get your thoughts, as always tony dwyer we appreciate your thoughts. Thanks, dom. Guys, lets trade this. Pete, to you first lets trade it how is tonys thesis playing in the way that you were attacking the markets these days well, you know, its primarily for me, obviously, as i was talking earlier about the Derivatives Market so much interesting activity there, dom thats really been something first of all the volumes are off the charts we have been talking about this all of 2020, volumes have been huge because of that there is an incredible amount of liquidity in the markets right now and a lot had been very, very shortterm i like the fact we are seeing a little bit longer term i dont mind trading it. I expect it to be bumpy. So i think there is no doubt about it, you have to be disciplined in this market right now, you have to have your hand partially in your pockets ready to wait and also to pounce thats exactly the way i feel right now. How much higher can the market run at this point lets go off the charts with who else todd gordon, trading analysis. Com todd, the traders and i have been talking about this battleground thats happening right now. Its that 50day moving average. I know the markets are more than just one simple number but when you have the dow hovering around there, the s p 500 and nasdaq composite on top of their 50day moving averages, it seems as though this is place you say, hey, it could go higher or this is resistance and we are due for a pause. What are the charts telling you . Yeah, hey, dom, good to see you. Listen, i am bullish, continuingly bullish i am not so much of a moving average guy as much as grasso is maybe another stat on top of what tony brought in which i think is interesting we are on the verge of losing a fivemonth consecutive gain in the nasdaq we have only seen that one other time in history and that was heading into the covid selloff so that was the first time in the history of the nasdaq we saw this so if we were to close down in september, history would show with this much momentum behind the market we should continue. Lets looking at the last ten years. Two situations november 16 and may 2017 we had a little bit of a pause and then we rallied 37 before we saw a meaningful correction. Before that it was the march lows we went for seven months, took a breather and another 24 so covid was the first time we saw a meaningful decline following a fivemonth rally now, seasonality look at this september we know is a seasonally bearish month over the last 30 years, nasdaq down an average of 0. 13 in september. Here is the thing which follows my last stat october snaps back to be the biggest monthly gaynor of 2. 74 . I continue to be overweight tech in my portfolio. My biggest hold exist are excel, apple, netflix we look at the s p and vix, i heard the guys talk about volatility, super interesting. Its important to keep in mind here if we look at the chart of the s p before the vix, we are still in correction mode the last two corrections from the credit crisis low were consolidating patterns consolidating volatility like coming to a point this is opposite we are expanding we are seeing expansion in vix, range expansion, and we are actually seeing higher highs and higher lows which is why its incredibly difficult scenario for investors but good for traders. I dont actually think we are through resistance, 3,500. To close it down, its sort of my catch up seconder, i love it. Air Freight Logistics acting well, fedex, u. P. S. Made the move railroad, some made the move watch tsx, 80 bucks with a nice sellout, 1. 3 saw dividends. Dont do airlines yet. Still stuck on the tarmac. That iyt, up 205, i think thats the next catchup level. Todd gordon tradenanalysis. Com thank you for the charts guy, to you first with in. Thats a lot of stuff to soak in what we heard from tony, what we heard from todd, but with all of that in mind, is it changing your calculus how you approach whats happening with the markets . No. I appreciate their points. Im not going to over a five, sevenminute conversation change what i said five minutes prior to that. What i will say, i think pete and tim probably agree, there are names that wiould do well i the environment they are talking about. Caterpillar is a name we talked about a few months ago pete was on that night the stock was trading around 134. We said it sets up well to test that high we saw in january which was 148. It did that, actually traded north of 155 and here we are at 148 again. So for Trading Opportunities off exactly what todd and tony said, a name like that for the risk reward t risk reward to me looks interesting. Caterpillar, perhaps some of the transportation stocks like fedex and u. P. S. Not so much the Airlines Just yet. Thanks, guys we are coming back in a moment coming up on the show, another twist in the seemingly nonstop anime drama between lbmh and tiffany. The bold claims that the french luxury house is making about the company it wanted to buy just a few months ago and things could get pretty spicy for shares of mccormick. Get it, spicy, mccormick what options traders are expect willing from those results all that coming up when fast money returns after this break. I felt like. I was just fighting an uphill battle in my career. So when i heard about the applied Digital Skills courses, im thinking i can become more marketable. You dont need to be a computer expert to be great at this. These are skills lots of people can learn. I feel hopeful about the future now. Welcome back to fast money. Lvmh has filed a counter lawsuit against tiffany. Thats just the latest piece of drama going in that ongoing merger dispute between the two luxury brands. Robert frank joins us with the latest here. And this is getting to be a pretty bad divorce in a marriage that hasnt even happened yet. Thats right, dom its the latest shot fired in what i call the battle of the bling. Lvmh filing a counterclaim now, this is a response to tiffanys lawsuit filed earlier this month that sought to force lvmh to proceed with that deal to buy tiffany for 16 billion now, lvmh complaining, heres how it starts out. This is the first line quote, the business lvmh proposed to acquire in november of 2019 no longer exists what remains is a mismanaged business with no end to problems in sight and it gets worse from there, dom lvmh alleges there was a material adverse effect here it says that the pandemic created a extraordinary damage to tiffany and, and this is important, there was no carve out in the deal agreement for a pandemic now, the core of the complaint is really that tiffany has been mismanaged it says that tiffany paid out dividends when if shouldnt have, cut marketing and sg a expenses that will cost future sales, and it said that Luxury Companies in the u. S. Have a bleak future, saying that 90 of tiffanys sales are brick and Mortar Stores. You dont want to be that kind of retailer right now. And 80 of those brick and Mortar Stores that tiffany has are in shopping malls. Now, lvmh also cites a letter from the French Foreign minister