Was set to take off, but the gravitational pull of reality kicked in. So the big question, of course, is what happens next. Weve got daniel shay robli n to help you with that. And, of course, whats the difference between solvency and liquidity . If ill ask economist Julia Coronado on how much longer america can keep up this mindless spending. Meanwhile, bank shares are higher, ill have Eric Najarian if the crisis is over, whats going to happen with the Smaller Banks. And the most dangerous time the world has seen in decades according jamie dimon. Ill ask Brad Hirshfield how he sees it, this ugly, ugly period. All that and so much more on making money. Charles so scanning the skies around the planetted today, we can see the impact of one of mankinds greatest inventions, talking about the rocket. It has changed the course of history, and it can be used, of course, for evil as russias doing in ukraine. A source of security as israel is attempting to do as they seek out terrorists in gaza and, of course, as a source of hope as in the case of the launch ofspacex heavyload rocket that will race to an asteroid. The mission is to learn more about the core of earths planet and maybe even mine it for critical minerals. Now, as far as the markets concerned, the rocket ship of the bond yields has been really tough, in the last two days a failure to launch a short squeeze e on the equity market. The day began with yields coming down, stocks surging out of the gate. The Bank Financials were pretty good across the board, particularly some of the bigger names you can see there. But then the market stopped, turned and started coming down fast. Now, the catalyst for that, the university of Michigan Sentiment report. Sentiment declined really sharp, but the part that took the air out of this market was the Inflation Expectations. Consumers see inflation a year from now at 3. 8. Remember, in september they saw it at 3. 2 . Higher prices are hitting everyone. It was reflected in that report, and, of course, indirectly hits the stock market. I want to bring this in Simpler Trading vp of options, danielle shay. We were on the verge, i think, of a potential major short squeeze. Again, going with back to last friday, we were opening lower, closing higher, we were right in the shadows of the 200day moving average, so we fell a couple of times here. Would that itself be a sell signal . Yes, charles. And thats especially true because the nasdaq is forming a bit of a head and shoulders pattern right now. The nasdaq needed to continue up through about 15,500 in the nasdaq futures for this short squeeze to run into earnings, and now with the rejection in the reaction to bank earnings, its not looking good for the upside in the nasdaq. Charles you know, speaking of the nasdaq and just overall like the put to call ratio and the markets in general and the overall short positions, the massive bets, hedge bunds are massively short on stocks and bonds. Could you take a contrarian view of that . Certainly you could, and when you look at the market right now, i mean, theres a lot of reasons to be short, right . We have a massive geopolitical risk, especially over the weekend. And the thing is, is when you look at the put call ratio and its so high, it is a contrarian signal, a buy signal. But you have to remember that nobody is going to cover those short positions as long as the markets going down. So its only a buy signal when the market gaps up, breaks through resistance and starts going. Thats the moment where we can buy this contrarian signal. Charles now, i know you came into the day, you were cautiously optimistic about jpmorgan. Great report. Stocks acting pretty good right now. Would you become an aggressive buyer . I like jpmorgan. I think that this is the best out of the bank stockses. I like the technicals. Its sitting up against a key support zone and i think that, yes, you could buy jpmorgan here. The stock has been consoling dating for a while, and it hasnt done too much, but i still like this name in the space, and i do really like the way that they performed on earnings this quarter. Charles you know, daniel can, for danielle, for a while you would come on the show, you were a swashbuckler, right . [laughter] like, hey, we want to be positioned this these things before the Earnings Report, before the x, y, z report. Now youre sort of staying, hey, maybe its not the best thing for investors to get in front of these news reports or these events. Maybe people should think twice . So, charles, im just doing it in a little bit of a different way. So we have a situation right now where the vix has been rising. We have high volatility, and because of the way that the markets been so volatile over the past year and a half, it provides an opportunity for options traders to come in and sell premium. However, what im not doing is im not coming in directly before an Earnings Report and buying calls or buying puts. Just because of the way that the market has behaved over the course of the last two quarters on earnings. Charles so what do you do here . Its just this sort of odd Holding Pattern . Have you built a big cash position . Yes, i have. And right now what im doing is im getting ready because october seasonally is a pretty good time to buy. Generally, especially going into next year we have an election cycle, this pullback in the market and if that short squeeze does really set off, could be a fantastic buy. I just think that right now with ongoing geopolitical issues i think that we should be a little bit cautious. And ideally, going into this earnings season, if we can get some positive reports from netflix, from tesla, from microsoft, especially when sentiment is a little bit weak, that could be a massive buying opportunity. Charles all right. Hopefully, webbing get you back on as thats we can get you back on as thats happening. Danielle, always appreciate seeing you. Thank you, charles. Charles later in the show, millennials are delaying getting married they say in part due to economic reasons. Tomi lahrens going to share her own personal talk. Shes going take. Shes going through some things. In the meantime, i want to bring in rob luna. Speaking of form former swatch bucklers [laughter] so, rob, listen, the market made a huge reversal last friday. The jobs report calm out, the knee will have kneejerk reactions, oh, its great. Maybe it wasnt so great. We take off. Then, of course, this tragic, ugly, barbaric action over the weekend, we opened lower on monday, we turned around, we go up. Tuesday was really great, every single sector of the market was up. So you begin to salivate as an investor of a potential short squeeze is. So i know that youve been really reluctant. What will it take for someone like you who used to be more aggressive, now youre cautious and become more constructoff with the stock market in genera. Yeah. And the primary reason is because youve got these tbills at 5. 5 , money markets at 5, so theres now an alternative. The only way thats going to change is if you start to see these ppi numbers, cpi numbers come down to where the market can get comfortable that the feds going to have coffer to at least stop cover to at least stop raising Interest Rates, and we still havent got there. Youre not going to be roadway warded for getting out there we rewarded. If you look at services and rents, those are not coming down. Thats going to keep that number around the 3. 8 inflation youre talking about, and thats a little bit of a challenge for the markets. Charles so have you assessed a potential worst Case Scenario to the downside . Yeah, i mean, look, its very, very hard to tell those things. I think this geopolitical event really didnt do much. I do believe theres a lot of cash on the sideline. You talked about the short interest, there is a lot of fuel that could take it up. Look, youve always got to be prepared for a 1015 pullback at all times on stocks. I think that could happen, but you look at days like today, the nasdaq looks weak with, i think that is about this geowith political issue. Theyre talking about the 13th being a problem, so i think people are a little bit nervous. And, again, if youre nervous, you can sit in cash and get paid right now. Charles whats interesting is we got this Sentiment Report and, of course, the inflation read on its the higher. We always hear jay powell say one of his goal is the to massage how the public thinks, right . When we expect inflation, it becomes a selffullfilling prophesy. Maybe im just looking for a needle in a haystack, but do you see, do you look for nuances like that in a market that really has been more kneejerk reactions than anything else . Yeah, i mean, i think you have to. And thats why, you know, i looked at that jobs number just like you did. It wasnt really the type of jobs that you want to see. Im looking at inflation to see if is there some way this can come down. So, look, were all trying to figure out and get ahead for when the fed is done because at that point in time its usually going to be at the point where the economy is in the worst position, but its the best position to start buying, and thats when you get that rally. Its coming soon, charles, but theres not that glowing needle in the haystack that you can get really aggressive right here. Charles i know you still like cybersecurity stocks. Would you chase some of them here . Palo alto, crowdstrike are, to me, a nobrainer as a longterm hold. When you have this geo political issue, everyones worrying about cybersecurity, personal security, theyre doing well then, so i think its the one sector that you can be aggressive on long term right now. Charles i know its early, only 5 of names have reported. What are you expecting for the rest of earnings season . I expect that you could start to see some cracks. Im just starting to see it from some of my investors right now that theyre really Small Business owners just now starting to feel the pain. If you dont see it this quarter, i think youre going to see it next quarter. There is going to be a quarter, either this or next, where theres going to be a surprise, in my view, thats going to slow things down a bit. Charles good stuff, man. Have a great weekend. Congrats on the book, charles. Charles thank you. Coming up, folks, our governmene who are running our government, do you think they know the difference between solvency and liquidity . By the way, tweet me cbpayne. 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About a cashew farmer from mozambique named carlos. Carlos lifted himself out of poverty with the help of techoserve. Go to technoserve. Org and see how you can support struggling farmers like carlos. Its a different way to make a difference. Nice footwork. Man, youre lucky, watching live sports never used to be this easy. Now you can stream all your games like its nothing. Yes [ cheers ] yeah woho running up and down that field looks tough. Its a pitch. Get way more into what youre into when you stream on the xfinity 10g network. Charles as i said at the top of the show, a lot of pep in our step at the beginning of the market. Look at that, some of these beats were absolutely phenomenal. But, you know, the industry, of course, i cant think of an industry where the dells more in the detail devils more in the details than the bank. I want to bring in erika najarian. Thanks for coming on the show, its your first time. Ive been watching, reading your work for a long time, youre fantastic. Jpmorgan, in your report you say they, quote, once again flex earnings muscle. Now, you raised your target before numbers even came out. Were they better than you expected . Believe it or not, yes. Thats very jpmorgan of them. You know, at the end of the day, jpmorgan that is has that raw material that you need in a higher e Interest Rate environment like this which is great deposits that are earning way less than their assets, right . So their Net Interest Income not only beat, but their outlook for the future for the rest of this year also increased, and they kept increasing all throughout the year. So is, yes, that was a big muscle that they were flexing this morning, charles. Charles all right. Wells fargo, you wrote this is the first time in some time where theyve been pleasantly surprised with respect to fees. For a long time you had a sell, a neutral, at one point you had no rating on the company. Im just curious, is it all the controversy behind the company . Look, regulatory issues always take some time to resolve, but i think that this is the Management Team that is truly addressing it, right . So theres sort of a parallel, you know, path in terms of improving wells fargos returns. You know, number one, the regulatory the path which is super unpredictable, takes forever, and you just immediate to plow as many resources into it need to plow as many resources into it in order to get out of trouble so to speak and improve your operations and your relationships with washington. The other path which is what i was complimenting on my report that you quoted, charles, is investing back into the business. Because at the end of the day, you cant cut your way into glory, right . You cant cut your way out of a revenue problem. And why wells fargo remains a business that needs to be optimized in terms of cost efficiency, what i really liked is youre starting to see previous investments really pay out in the form of better Investment Banking and trading. And you dont think of wells fargo and think, oh, Investment Banking and trading, you know . But theyre doing this sort of in their lane so to speak, theyre doing it in services, the large corporates that they have huge market share in. Charles right. So it was a pretty impressive showing for wells this morning. Charles citi beat, but think youve got a i think youve got a neutral on the stock. Why is that . You know, its been 10 years, charles, and weve had stops and starts [laughter] with citi. Look, at the end of the day i think the market, along with myself, we are justified in being skeptical, right . Because its literally been a decade of changes, of promised changes, and we havent seen really anything yet at citi. But i think that what im loving about this Management Team is that it does feel like you finally have something tangible in place in terms of improving both revenues and expenses. So they are essentially saying well update you in january 2024 in terms of, you know, what we can do about that float bloated expense base with. But theyre actually doing9 quite well on the revenue side which i think is underappreciated at city. And so at citi. So while the returns on intangible common equity were so far from their target of 1112, it does seem like this is the finally the Management Team thats going to make real progress. Charles it does feel like im still waiting. Charles it does feel like jane frazier is a leader. Ive got to broaden this out. Federal reserve, this Bank Term Funding program added another 1. 2 billion, now at 109 billion, how critical is it to the Banking Industry that this stays in place . So right now, or charles, i think all is calm. If you look at the Regulatory Data for deposits if for the system, that includes not only the largest banks, but also the small banks, you know, through september 27th deposits were actually down just 50 basis points. So it seems that all is calm in the market right now. But keep in mind its october, right . So were only seven months away from the epicenter of the liquidity crisis. And i think a lot of investors are feeling good about the Smaller Banks or sort of the bread and butter in terms of credit providers to main street america because they feel like the Bank Term Funding program is sort of a nice backstop. You know, you can pledge securities that are, you know, at par value, and as you know, a lot of these securities are underwater right now because of rates. And so while its not needed, its a nice backstop so that, you know, investors dont have to sort of circle around, you know, regional banks again the way they did in march and april. If so i very much advocate for that renewal of that program. Really were far enough away from this liquidity issue and or we really are convinced weve hit peak rates. Charles all right. Great stuff. They said you were great, and you were. Appreciate it, thank you. Bye, charles, thank you. Charles were just a week away, less than a week away from from the special edition, making money unbreakable investor, thursday, october 19th. Im going to be joined by evander holyfield, annie duke. Search go to eventbrite. Com, were going for standing room only. Its its based on my new book, unbreakable investor. Its amazing, youre going to love what i put into it. Go to unbreakable investor. Com, get your free copy. You will have to cover the shipping, but i got you on the rest. David nelson says the market is more afraid of higher rates than fullblown war. In a way its sad, but its the truth. How do you navigate a market like this . Hell tell us, walk us through each step. But first, the government has put the economy in a really vulnerable spot, im going to ask Julie Coronado rea