So you know, when it comes to corrections, thats 10 off from recent highs. Then we started the climb once again. Up 367 points. We are up 319, 320. These momentum swings are awfully important to watch but they are not set in stone. Remember, it was exactly at this moment yesterday, 24 hours ago where the dow began dropping and dropping and at 11 minutes past 3 00 p. M. , boom, in the blink of an eye we fell nearly 1600 points. 1597 to be exact. Could that happen again in this hour . We already showed you the dow which is up 331 points. The s p is about up a percent and earlier, we have to tell you, the low was down 55. That was a significant swing. Looking at the nasdaq, we are up about 92 points and so, as we see at the moment, i need to point out that nasdaq had been down 142. The key question here, why does the final hour have that potential to start quaking and shaking in that last 45 minutes. Starting in about 20 minutes, think about the redemptions i kick in. Thats when hedge funds who need to balance their books into the close and out of the session start to buy or sell, depending on what their levels are at. The markets are trying to gain back overall someone . 9 trillion in paper losses over the next two days. We need to remind everybody this is a moving target but for now the target is an arrow up. Let me tell you what a traitor told me the minute i got on the floor at the Near Stock Exchange and i tell this to you as we hit session hi, the dow is up. The traders that ive been trading for 25 years and what i said earlier today, 200point click, click is a traitor word for move. Every 12 17 seconds, its something he has never seen before. We told you this yesterday. All of this happening right now, the powerful muscle comes from advertisement trading. Executing stock sales based on a predetermined level. Now were seeing a reversal into key metrics after searching more than 115 , the fear index, the volatility index which showed a lot of fear yesterday has actually started to trade lower. Weve seen a very wide string when it comes to the bit, its down eight points. Remember when i was at nine a couple weeks ago, its now 29. We want to check the ten year treasury yield which was one of the strongest figures last week that started all the problems, we do have that yield at 2. 7 in overnight coming into mondays trade it was a 2. 88. That would have been a four year high. We are coming welloff that. Heres whats interesting. Safely haven, mia, gold, if you look at that usually consider that, its been virtually flat over the past 48 hours, but gold right now, once again its down and nine dollars. Its not a huge move, but it does send a message. Lets look at utilities. Utilities are the worst sector in the s p 500, shaving about 2 from the broader index. As we look at utilities, all of these names from. [inaudible] your down 3 , usually these are names that are safe havens. People run to them because they pay usually very strong dividends. Right now people dont look at the utilities as a place to hide. Maybe they dont want to hide, the dow is up 368 points. Lets pick out some dow stocks specifically that were with the crimson tide yesterday. All 30 stocks were lower and we can look at some of the stronger at the moment. Dupont up 5 . Someone got that on cell yesterday. Home depot up by 4 . Apple three and two thirds. Apple say they may give some money back for people who had to switch out the batteries on older iphones so thats just moving right now. Boeing is better by nearly 3 . So, yes its about 384 points, despite that stocks are still in a bit of trouble but the dow just turned positive for the year. Remember yesterday lost everything, all the gains we had seen for 2018. Now we see the dow as positive for the year. Its very touching go. Slightly flat, s p up just slightly for the year end we do have the nasdaq also up for the year. Small and midcap stocks, they are still in the red as well as the transports but just slightly. Remember, we have had such an incredible runup thats important to put that all in perspective. Too do that, forget about me, im just a conduit. Let me bring in the traders on the floor of the Stock Exchange. Come on in. We have larry joining us in chicago, wells fargo head of global fixed strategy and crisper around. Lets go to the Technical Analyst guy. Give me a sense of what technical changed overnight that has now brought us to this final hour of trade. I think we have to put this in some context. We are only six or seven days into this move. That would be a very short drive down. We have to be careful before we get to euphoric. Its been too short and theres probably some more to go in terms of time. What you see historically, you get the big chromatic down move followed by retesting of the lows, probing new lows, i think thats probably likely as we look out over the next number of weeks or months. We think its too soon to call the all clear. We have a brandnew session hi, of more than 448 points. We are now at a thousand. Swing today alone. Whats it worth. I told her viewers the final hour can get a little squarely. Absolutely. If you look at the activity weve seen in the market, people are waiting to make decisions on what they want to do. The way toward the end of the day. That was a lot of activity we saw yesterday and we will see it again today. If the market continues to trade, people will start feel like maybe they miss the dip on a very shortterm basis and they will have to get back. But first i think we have to wait and see how much more time we have in these movements that were getting. Im guessing its not over yet. You never know, but brian you are the fixed income guy. Arguably that spike in tenure yields, starting last week stocks were down because people got nervous thinking theres a change, but give us a sense of the fixed income guy, how you saw that spike. I think in fixed income, things have been pretty normal but the move was really just a little bit more than a one standard deviation move. Weve seen a lot of moves like this in the past. I will note on friday we had that positive correlation where bonds were down and stocks were down, but since then we have negative correlation back so yesterday, stocks were down in bonds were up and today stocks are a little bit better. I think thats healthy. We just touched up 500 points for the dow jones industrial. As we were looking at the volatility index yesterday, that was a scary moment. We have had two different, one Exchange Traded note and one fund pretty much collapsed. As you look at whats happening right now, what does that bear for what we talked about with john and chris. Youve got to be careful, this may not be over. I was watching it very closely yesterday. There was to inverse that really require a phd to even figure out what theyre doing. Complicated structures, volatility is so low to begin with, just one month volatility. They are going to leave a huge bark and a painful lesson for everybody but especially the retail traders that dont invest in something that you dont understand or something that your Financial Advisor doesnt understand. Also, keep in mind, they call the coin of fear index but its measuring the index but its not really a measure of variance and variance in the market is what matters. Its not volatility. Se. Its all relative to where it is at that present moment. I am looking at a 90point swing for the s p 500 right now. We are up 43. We had been down 55. Gentlemen, thank you. Awesome work because what we are trying to do is explain to our viewers all that they are seeing right now. Before you get too confident or too nervous, its important to know that stocks are high right now but the thing about money is that once it goes into one area or comes out of another, if find another place to go. As investors got out of stocks yesterday and are now getting back in, what happens with that fixed income picture because, as you look at the tenure yields we do see its making rather significant moves up, down, and all around. I want to bring in board mccarthy because he is going to make this less confusing. He is over at jeffries. You were the top economist guy at the richmond said. We just heard from brian that they are basically performing as they should be. Why then did stocks get so anxious yesterday and why are they unafraid today, at least at this moment. I cant pinpoint the timing of why its become more volatile, but i think when you look down from a big macro perspective, its understandable because we have countervailing forces going on that we had not seen for quite some time, specifically the fed is gradually moving away from accommodations, basically trying to get the economy off its training wheels, at the same time the fiscal policy is becoming more accommodative. Its not reasonable to expect this is going to be a smooth process, and then of course you also have the new fed chair as well so you know. Let me stop you there. Talk about baptism by fire, jay powells first day he was sworn in yesterday as the new Federal Reserve chair. Hes watching such unbelievable volatility. Is there any correlation or is it simply coincidence that on the first day avenue said, by the way the market really seem to like when he was first announced, suddenly we see a very dramatic point swing and one more day, again. I think there were a few things that have happened over the last week that are contributing factors, one is the treasury let us know last week but there will be a lot of treasury supplies coming down the pike and we also do have jay powell who is not janet yellen, and lets not forget one of her parting comments were that she thought the stock market was very highly evaluated. So weve come up along. Of time where we had risk market complacency, stocks continuing to grind higher. We are really do for correction and right now the big issue is is a correction or is it something more significant. Your guests . I think there will be a correction but i also agree with the speaker who said it will take some weeks before we figure that out. I dont mean this to be a loaded question, but the treasury secretary a few days ago last week said, i can remember now but he talked down the dollar a little bit. It was two weeks ago. He said a weak dollar can be good for u. S. Trade. Yes, we know that, but for treasury secretary to not wholeheartedly put a full spoken word of support behind the greenback doesnt necessarily bode well for anything in the market because the dx y started to go negative earlier today. Im just interested to know if you think that had anything to do. They were asking what was the trigger for such a big loss. It was a combined group of things. I agree with you and i think that is a factor as well. Some of the messages on the economy coming from the administration have been confusing, thats not just from the dollar, but some of the recent moves putting on tariffs and that type of thing. Markets dont like that. They like free trade, they like free markets. And that is all contributed to the uncertainty thats part of whats developed since last week. Thank you very much. Im sure its certainly interesting on your trading floor. Lets go to this breaking news. Congress was just a little over two days to go before another Government Shutdown looms and that would be thursday at the stroke of midnight. We have this. President trump, moments ago said bring it on. Listen. We cant do a job using credible professionals unless we change the legislation. We will get it done. Frankly, although a step further. If we dont change the legislation, if we dont get rid of these loopholes where they can come into our country and continue to kill, were just about ms 13, there are many gang members, if we dont change it, lets have a shutdown. Will do a shutdown and its worth it for our country. Id love to see a shutdown if we dont get this stuff taken care of. Three times he said that. Three times in the markets are Still Holding on the gains of 404 points for the dow. S p gives us a better sense of a broader area thats doing well, 500 stocks standing at 683. They seem extraordinarily ordinary but we are now five minutes away from that point during the final hour of trade where funds start to come in and do their redemption. Theyve balanced out the books for the session. It could get a little wild. Youve got a stay with me, weve got trader, weve got experts, we got Charles Schwab, coming up whoooo. Looking for a hotel that fits. Your budget . Tripadvisor now searches over. 200 sites to find you the. Hotel you want at the lowest price. Grazi, gino find a price that fits. Tripadvisor. Hi, im the internet you knoarmless bowling. Lt . You got this, jimmy you know whats easy . Building your website with godaddy. Pick a domain name. Choose a design. You can build a website in under an hour. Now thats a strike get your domain today and get a free trial of gocentral. Build a better website in under an hour. I love you. Searching for answers may feel overwhelming. 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Still sitting in the red at afterhours trading, down 61 cents. Perspective, always important, lets stretch out a little bit, compared to the s p 500, crude is actually taking a less painful head. If what happened since the highs of the session in january, the highs of the market overall is drawing blood for the s p, its not for crude. Just a few bruises here. Oil trader has just come over here. You traded for many years, never stepped foot. Are you breaking out in a rash. I am. Its a little uncomfortable. Its like working from a gym. And oil trader is looking at things completely differently. If you look at the stock market and you see green on the screen, would you rather be in energy or equity. I think equities. I was looking at it, and ill tell you, after looking at it, what we touched on earlier, theyre not doing that. I feel like thats really the tell, that people dont, theyre not really panicking about this. Theyre not running out of stocks and running into gold. If i was happening i would say there could be a lot more room to run. I wouldnt say jump in and buy all your start today, but i dont think i would panic. But the S P Energy Sector yesterday got hammered, did not. I believe it was the worst sector of the majors in the s p. These things happen. Oil is overpriced. You sound like my grandfather. It happens. Markets fluctuate. I think that, and i also think thats whats happening with the dow as well. Its going to go down and is going to go back up. One of th what do the oil trader say that you been working with. They say why is crude oil trading at 65. Thats liste real question. The Stock Exchanges a different animal. Its a good question because the last time we thought the United States was putting output of 10 million a day was during nixon era. Oil was in 20 a barrel . Its been a lot lower than that. It has. The nixon era was a little before my time. Sorry. Yes, mr. Millennial. While it was like 1972. I was two. I was playing with my matchbox toys. Working right now, we should let people know that as the count grows, up more than six from last friday, that means more of these Oil Companies are starting to churn out somewhat well at this point. They fire them back out and that means more supply and the price could go to get down . Its a vicious cycle. They stop pricing and then they jack the price up and then they roll themselves in. Okay so you said you like equities better. If someone could buy a barrel of oil or apache stock or any other name in the integrated oils or any part of the oil patch, what would you say. I would say by netflix. Im not an oil fan. In your favorite show on netflix. That black mirror. I like stranger things. Elliott, great to see you. Thank you. Thank you very much. Its good to see you. We have 37 minutes before the closing bell rings. We are coming right back. Dont go away. Much more from the floor of the new york Stock Exchange. You have to see how this day ends. 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The company is saying of the 57 Million People who were hacked, their information was stolen, 4. 1 million were drivers and another 24 or 25 were actual u. S. Users. 25million users in the United States and the rest would be global users of uber. Heres the interesting thing. They are almost putting it out there that they are proud they have paid hackers to sort these things out. They have the Bug Bounty Program and they kept the secret for a while but they paid out millions, about 1. 3 million in money for anybody who was able to figure out any problems, 800 different system vulnerabilities have been resolved because they paid people who were smart enough to find any of these problems, any of these holes or issues. That is b