This moment . Expert analysis how you should be positioning your portfolio. Has a deal within reached in washington for more stimulus . Could it be mean more testing and stimulus . Well have more and the answers coming up on making money. Charles markets down for a second day in a road. The hardest hit sectors are not oil. Technology stocks getting absolutely slammed today. We knew after this huge bounce a pullback was inevitable but how deep will it go . How should we be positioned for this . I want to bring in capital wave strategist shah gilani and Divine Capital ceo, dani hughes. Shah, let me start with you. That was amazing vshaped, sharp, strong, stock market recovery, more than probably anyone had anticipated but everyone knew we would pull back. This is part of it. How are you positioning yourself as some people made money buying on the first deep or eager looking at the second dip . If you were lucky enough to time that to get in i wasnt, good luck to you, but i would suggest being careful on the downside because i think the market has, will give some of that up, maybe a good bit. The prudent thing to do, put stops in on the positions you have profits in if the market comes back down. Take those positions as trades. Dont ride them as longterm investments. Charles shah, if you think, shah, if you think were going to pull back, forget the stops, why not go ahead take profits now and just load up on some cash . Good reasons not to. First of all we to the some momentum. Right now looks a little bit shady. I have the dow in in a range between 20,000 and 24,000. 22,000 being a pivot point. If we get to the 22,000 point it will get pretty dicey. Woe have more room to the upside. There are more shorts in the spy. Record number of shorts in the spy, basically bets against Standard Poors you brought this up other day, is gigantic that is ammunition for longs. If the market goes up, they have to cover. You have ammunition there. Earnings are coming out. The problem right now maybe sell the news kind ever situation coming into earnings. Charles dani, youve been cautious, youve been expressing caution. Were starting to pull back again. This is how markets are tested. Part of the price discovery process. How are you going about your trading right now . The market, charles, the leadership has not been broadbased. It has been really narrow which portends to me another leg down as we talked about last week and when the economy is healthy, investors have the luxury looking out on to the investing time horizon with longterm possibility of thinking everything is going to be great, but when market hit as pothole or falls off like a cliff like the coyote in loony tunes the market forgets rushes to the portfolio right now and not the portfolio for the future. That is a mistake because the right now will change dramatically, in three, six, 12 months. When youre investor you have to look out on a further time horizon. What is working now and what will continue to trend is i. T. , health care and consumer staples. Charles let me go a little deeper there because there have been certain stocks that have really done extraordinarily well in this sort of shutin economy, right . Zoom, netflix, roku, ring, you know we know the names. Often when the markets down these stocks are up huge. Are some names that danny, when you look at some of these, even consider them postcrisis investments . They are a few that i would look at i think arent overvalued right now and that are actually making money in this type of an environment. One is at t. Largest telecom, everybody thinks it is telecom and mobile which are really important right now. They have own a huge content library. Own warner media it is now called. Hbo, launching hbo max at the end of may. The yield is 6. 7 . That has gotten beaten down a little bit but i love the name. I like ice, Intercontinental Exchange which owns the New York Stock Exchange t owns 12 different Market Centers and exchanges across the u. S. It has record volumes. That is another one to charles they have had record vols and you look at bank earnings, a lot of banks made a lot of money trading markets. Shah, on dividends. Last thing that emerged companies hiked dividends their stocks are higher. Feels like investors are comfortable with the companies ability to hike their dividends particularly if they have been doing it a long time . They shoulding comfortable. Everybody else as far as im concerned is off the table. Unless a company will make a pronouncement they will increase their dividend and have good forward guidance, no reason to invest in companies that have nice dividends because a lot of them could be cut. Were a long way getting where were going, that is the depths of a recession which we are headed straight into. A lot of companies will not have the cash flow to maintain the dividend. They will not be able to borrow like they did in the past to maintain dividends. There will be a lot of dividends cuts. Maybe raiding dividends, god bless them. Those companies with solid dividend you should probably invest in now. Charles shah, dani, always great to be automobile to share your wisdom with the audience. Thank you both very much. Meantime, folks, we have breaking news. The Texas RailroadCommission Decides not to take action to intervene in that states oil production. The commission which met last week, they heard 10 hours of testimony, more than 60 oil executives, all kind of observers were there. It was hoped they would take action today to slow output. Would have been the First Time Since 1973. But instead they pushed off any changes to may 5th. I want to bring in former shell oil ceo and citizens for Affordable Energy ceo john hofmeister. John, im sort of surprised by this we got a tweet from President Trump earlier today saying he will come to the rescue of the industry but people are waiting for someone to actually come to the rescue of the industry. We spoke briefly yesterday in the midst of that free fall. I dont want to say you were sanguine but you are not as worried as other guests. How are you feeling today . Im feeling about the same as yesterday, charles. The, you know, i understand why traders would be panicky and why shortterm investors would be panicky but if youre sitting inside of the boardroom of a Major Oil Company other even a middlesized oil company, this is another roll of the dice. This is another punch in the gut but you can survive the punch in the gut by taking things one day at a time, looking out over a time horizon that includes months, not weeks. And so thats what people are doing right now. Im happy with the decision by the Texas Railroad commission. I dont think they should have artificially driven a rollback. In reality the toughest decision an oil Company Makes is to, is to slow down production. They spent billions of dollars to get production up and running. Now if youre cutting it back, what message are you sending . And so you take a very reluctant approach to it. Yes, were running out of storage. Yes, thats a problem and more and more companies will cut back only when they have to and if you have a multimonth time horizon you are not going to cut back overnight and switch off all the lights, say, go away, come back another day. It doesnt happen that way in this industry. Charles john, you mentioned the role of traders in this as opposed to industry executives and those looking longer term. Earlier today there was scuttlebutt, uso, an etf. Some kind of a bailout. 50 of their holds is west texas intermediate contracts. Down 67 yeartodate. Can you explain the role of these contracts and the investment community, with respect to oil . Because you know, really a lot of people are saying well, oil is ought off business when we know that is not the case but it is sending a shock throughout the entire Financial System . Well, oil is the lifeblood of any economy. There is no, no other way to look at it. The natural gas, the oil, it is the lifeblood of the molecules for mobility and electrons for electric power. We got to have both. When it comes to trading, you really have to put a box around it. It is a different business. It may be dealing in molecules but it is a different business relatively to how you think about it, how you manage it, what you do with it. Its a buy, sell, hold, business. That is all it is, a commodity. Buy, sell or hold. So when you have trading organizations and theyre independent companies, many of them, have nothing to do with Oil Companies other than trade the molecules, they will take their own approach to it and they will think about how they want to maximize their profitability in the short term or over the medium term or over the long term and then they will take positions to buy, sell, or hold based on how they want to satisfy their own financial objectives. Charles right. But the fact of the matter, wall street for the most part is not looking to take physical possession of oil, right . No one is looking to take these barrels and put them in their backyard. Is this part of the reason this whole thing has blown up this week . Yes. Its all a trading phenomenon in my opinion and really has nothing to do with the underlying fundamentals but traders set the price. Thats the big deal here. Traders, not Oil Companies, set the price. Opec thinks they set the price. No, they dont. Traders set the price. And so when they drive it down or drive it up, theyre sending signals or messages whether to opec or to the independent, publiclyheld companies. And the companies will respond to those signals but not on a daytoday basis. This is not a daytoday business. Charles john hofmeister, thank you so much. Really appreciate it. Mean while, folks the big news out of washington, d. C. Is that congress is working to vote on replenishing the Small BusinessEmergency Fund but with warnings that the fund could burn out, were talking 50 billion a day. Is it time for congress to stop doing this in piecemeal . This better be gargantuan. Also what has the lockdown revealed about you and your family . I want to hear your stories. Tweet me cvpayne on twitter. At 2 30, share you my new ride had to be towed in the middle of this lockdown and why it is a cautionary tale for our economy. Well be right back. Heres huge news for veterans with va loans. 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[ applause and band playing ] only pay for what you need. Liberty. Liberty. Liberty. Liberty. Charles well, a deal in congress has been reached to extend the Small Business loan program, other known as the ppp but this time minority leader Chuck Schumer saying 125 billion of the plan will be exclusively for ma and pa shops. Will this prevent big businesses from getting their hands on this cash . Here to join the discussion, university of maryland economist peter morici. Peter, a lot of folks in an uproar. Shake shack got 10 million, potbelly got a bunch of money, ruth chris got a bunch of money, publiclytraded companies. In the case of shake shack, 1. 6 billion valuation. They have given back the money. Maybe 10 million was not enough for bad publicity for them. But a lot of companies are struggling but not give being back the money. Thats true. I dont know they should take it because it wasnt put there for them. Federal reserve has a program for corporations. They have a borrowing window for them. They should be going there. Charles i get it. You know, i guess what, i think theyre looking at the idea maybe this is a potentially forgivable if they keep the employees on. I think they probably want one or two bites at the apple this whole thing created a gigantic morality issue. Harvard, 40 billion in endowments, did they need nine Million Dollars from taxpayers . This after a month of firing all their subcontractors worked in cafe. They get rid of the little folks. By the incomes they paid them was less than 1 of 1 of their 40 billion. There is something wrong with that, peter . Basically looking for a social conscience, dont visit harvard university. If youre looking for good economic advice, certainly dont visit harvard university, unless you visit people that run the endowment. A few years back they were buying water rights in california, could we corner the market there . That is my conjecture. My feeling is that harvard doesnt behave on responsibly. A university that doesnt have to charge tuition, yet it fleeces its students. You know at some point we need to look at this phenomenon of rich people leaving money a to harvard to admit their kids. Growing and growing, kind of like money church had before, say henry viii closed the abbys. Charles right. Someone will have to look at this. It is amazing to me they even had a chance to get some of this cash. Yeah. Charles i do want to follow up, now, go ahead, peter. No, no. Fine. The legislation was not properly written. Leech it at that. Charles it was not properly written t was written in haste. They will relead it if you will. President trump a few moments ago alluding to the fact after this is passed, resolution, next feel of this, he wants to discuss state aid, infrastructure, tax credits for restaurants, entertainment, sports and payroll tax cut that is a pretty big list in my mind. Does any of that make sentence to you . Should they force the hand of democrats route now while the public is watching . Some makes sense. Some doesnt. Aid to state and local governments during the financial crisis, their revenues fell 9 . This time it is likely much more. Last time there werent a lot of costses imposed on state and local governments beyond unemployment insurance. This time they have to fight the virus. So my feeling is certainly the federal government should be at least reimbursing them for the virus costs and putting a floor under their revenue losses. Local governments being like our mayor in the city of new york surely has way to cut expenses but they cant cut them by 15 or 20 that makes some sense there are other areas that make sense as well. But you know, aid to say Entertainment Industry or restaurants beyond Small Business loans, i dont think so. I think, there is some, in some manner, the u. S. Economy has to function in a neutral way, that government aid should not be targeting beyond, you know, an industrying doing something to great social purpose. Charles right. So my feeling im recommending in my next column is that the government give every american from Going Forward 1000, 1200 a month until the crisis ends, beyond, 18 months. Give every company, no matter what industry theyre in, 1,000, 1200dollars per employee so they have incentive to employ people. Not Pay Attention whether it is a Football Team or a Baseball Team or restaurant, airline what have you. Charles all right. Let the market decide where the money goes. Charles well read the article. Well bring you back, again real soon, to discuss that as well, because you know, unfortunately i think the time horizon, eight weeks is too short. This next reloading if you will come far short. Were going to be back here again discussing this in short order. By the way, folks, that brings us to this, to our special, right . You dont want to forget. Thursday i will be hosting an America Works together virtual town hall. I will be joined by billionaire mark cuban. So send me your questions now about the market, restarting our economy. How will our world look in a postcoronavirus . Everyone says it will be vastly different. Mark cuban has big ideas there. You have been sending me some great ones as well. Make sure to message fox business on facebook or instagram. Also email us at investedinyou foxbusiness. Com. Video of yourself asking questions. Tweet me cvpayne. Youve been hitting me with great ones. This will be amazing part of it. The good news you could be part of the show thursday right here at 2 00 p. M. Eastern time. Well, Oil Continues to be the center of attention. The selloff weve never seen before. I have got one energy ceo who will speak out what it actually means for his business. Plus, President Trump making a major immigration announcement amid the pandemic. Weve got the latest there. Later Southern States are working to open up amid the lockdown protests sweeping this nation. Will political pressure step blue states from doing the same . Charles President Trump taking the to twitter to announce that he will sign an executive order temporarily suspending all immigration into the United States. This in order to help fight the coronavirus pandemic and protect u. S. Citizens jobs. This also coming as many governors are looking to ease restrictions in their states. Joining me now from one of those states, republican florida congressional candidate paulina luna. Great seeing you. Lets start with the immigration. President trump saying hey, listen, you know, it is pretty tough to vet. We talk about testing and adequate testing of american citizens to reopen the economy. It is going to be really tough to be able to test