And the rally was led mostly by the financials. And here is why that matters. Check out this chart. Its a good one. For the last two months, if you want to know where stocks are going, look at the financials. They are breaking out once again, so, are banks now flashing the buy sign for stock . Well, theyre flashing the overheated sign. On the technical basis and again, i look at relative strength indicators and by the way, that can quickly be worked off. So, bank of americas got to decide, that means its in extreme territory. I think the banks obviously they look interesting, not just because the fact of the matter is youre seeing Housing Market starting to escalate. Valuations in this sector that are defensible. Theres a lot of reasons why people can feel good about financials now and they they didnt six months ago because i think d market being overheated. I would say thats probably consensus because everyones looking for the sell off. Sell off in september is probably the biggest telegraphed event. If we dont get that, everything just rips new highs once again. Were talking about banks and i look around. They take fms well because theyve underperformed. 2 . Backdrop. S p, about f year to date. That would be the most unconsensus view to have financials rip higher and the market make new highs. I think thats changed. I cant disagree with that. I think that the market looks settled for september. I get the side of the year to date performance, but it is momentum the past month or so that has been dramatic. You take a look at the sectors, it is the best performing sector. That contest. Great things for the broader market. Not pretending by any stretch of the imagination, but the market doesnt get give the highs, right around the all time high. How do financials play into . Ipg i understand why people buy financials. He mentioned an yeefr heated rsi and then talked about work itself off. Thats right. Bank of america can trade around 1600 clrs. Levels were seeing now back to reasonable levels with the stock not going down whatsoever. It feems like theyre breaking out. My still favorite place in the stocks are the exchanges. Cme for example, thats make k a a tenyear high. Much better year over year and names like u. S. Bank, which is very boring. I like long for a while. Great, but its a tiny move relative to what has been for years of this sort of back and forth, but i think devastation. For financials. Not just back theyre well off the lows. Thats my point. Theres a bounce of not a huge magnitude, but if you step back an look at the data that came out today, pretty good, which just sofrt gives more fire power for the fed to do something. Probably higher, which is good for the financials. If they do raise though, proeshl sure to turn back to the market. Jobs on a friday. So you can still see the trade in the xls continue to go higher, but this trade probably has a time stamp on it for the next meeting, so i think if youre in the financials for the september meeting. They dont do anything. Now were back to the same top foolish talk hawkish act outish for the broader market, which is encouraging, this is a cyclical value. Look at the rails. A bunch of the industrials. Theyve had a chance to massively deleg. Up 60 this year. About five times to 3. 1 time by the end of next year. Its a dollar play. Commodities and cyclicals. Theyll go down together because theyll act as a reaction. Zpl a lot of things though in the market sort of dont make sense. You take a look also in the bond market. Tlt was up more than the financials. Both were up together. Sort of a head scratcher. That move was a bad move and then today, you got it all back in spades. Despite what the fed may or may not do, thats something tlt is going up, meaning rates go down. Which means as tim pointed out, doesnt having we can live in a a world where tnt goes higher and financials continue to go higher. I dont think they work out together. I think brexit was the bottom of yields and i think even though ive waffled a little bit on where i think rate rs going and that was a deflationary signal. You have a reason for cyclicals and financials to continue to build even if the feds going to hike once or twice, thats dwold gold i locks. Anybody do anything today . I know its a quiet summer week. Zwl i bought dollar gen. I bought ilt today. Well talk about it later, but you have to keep in a floor and exit strategy. I like growth and want growth. Because i feel like the dividend play is getting so excessive. Id rather own growth. Havent done anything today, but what im screening for are names overbought and in the retail sector, i think youve had massive moves. Best buy, where i think they dont justify the challenges. Two year highs youre trying to work off. These are valuations, i think you could short these names. I understand more headline risks and valuation eight times forward earnings, maybe not as cheap as youd think. You look at the impact of earnings going forward, you put a fair valuation on this stock. Trading 43 now. I think its a stock once the dust settles, klose to a 50 name. A lot of the problems they face now were created by the government and forcing people not to be in the same space. This is the government were talking about. I think this move to, tink optics are terrible and the wake of you know, with that said, they will get through this. I think its still a cheap stock even with the epipen news. Even with todays rally, the market has been trading a tight range. Our next guest says september could change that. Chief market technician rich ross is at the smart board. As we know, its been largely a trend list summer over the last six week, but im always on the lookout for the perfect trade fast money and ipg ive got just ticket here. Unfortunately, the perfect trade could be the perfect storm. Were going to start with the vix. Volatility. Now, this is an inelegant trading tool in is laigs, but gifs it a good backdrop to frame our trade. What do we know that post becs it down here at multiyear lows. Do you know what the best month for volatility is . September. Meaning volatility goes higher and in theory, risk assets go lower, so what are traders do g doing . They are most short volatility theyve really been on record, so during the best month, they are most short something, so thats the potential for that perfect storm. The pain tray people talk about could be volatility going higher. Havent seen it yet, but september, keep an eye out. Now, that brings us to the s p 500. Do we happen to know what the worst month is . Yes, september. So with vix, the best month for volatility going higher and stocks going lower. We see this breakout, obviously. Most of the gains post brexit come in the first two weeks. Credit where credit is due. Have this consolidation and youre in a tight ring. Almost historically tight range going back to last monts or so. Theres a case we could get a breakout here, but with the positioningsing going into the worst month seasonally speaking, i still think that the bigger trade is to the downside. You see the neckline here. 21. 30. Thats your break point. The point you dont want to go beneath. About 2 from part level, so its not a big push. So hokd we get there . Were going to look at crude. We love this head and shoulders bond, but what we dont like is shoulder season. Thats when the driving end, yes, demand goes lower and crude. We failed into the neckline of the pattern around 50. We failed into the 100 we can moving average, so a failure into resistance you enter a season of poor seasonality for crude. Thats bad set set up. I think we could test the right shoulder down around. Just to finish it, when youre talking crude, youre talking commodities, emerging markets, theyve had a r poor quarter so far when you talk b about commodities, ag, crude, gasoline, hasnt been going well. Brazil, up 60 off the lows. 20 since just brexit alone. But where are we . Right into a multiyear down trend and look at this. Tuke abotalk about poor seasonality. August 29th of last year. You start a 26 decline. In brazil, youre most overbought. Facing a prospect for a fed rate hike and consider this, once again, we talked about positioning. Theyre most short volatility, lot of lopgs in stocks and the second biggest in flows in etfs are going into emerging markets just like bra sill zyl, so you have this backdrop for a potential perfect storm. You know, rich is at the smart board. Should we invite him, do we want to talk to rich more . Ask him a couple of ke questions . Invite him over . Come on over. Bring in the chair. Chart off with him and carter. Just going to bring a chair here. Thanks for coming over, rich. Thats fantastic. All right. Youre saying long volatility, short s p 500. Oil goes lower. So, the sectors within the s p 500, which look most vulnerable . Well, clearly, weve seen this rate trade. Obviously, the defensives that have been leading, those big yield plays. The staples, telecom. I think theres room for those stocks to move lower. Given that extreme position. Positioning can push things around here m i think the defensives continue to move lore. Seen whats dpoipg on in health care. Bio had a lull. Mi lan going under pressure. Going into the election season. People Like Technology more immune to macro, so tech in the world of low growth, tech and growth is a good place to be. Probably time for Carol Burnette show. Seriously, it seems as if what youre talking about could be another opportunity to buy this market. If anything wha im saying is a character change in emerging markets. Talking about a character change, the tiger doesnt change its stripes. Ive heard about a the dpraetest opportunity is when nobody wants to buy emerging market, not when its the second most inflows of all etfs. I think this has pushed people out to the cap of the risk spectrum, if you will. I think youre going to have a hard time. Bringing the fish back home when that perfect storm hits. This is lost on you. George clooney movie, perfect storm. Thats what a double r does. I thought you rushed the answer by the way. You could have paused more when you said you know what the worst month is. You know what the other canary might be . They had that brief rally, but are starting to give it back. Maybe theres something going on. I dont think you have to be right though to have a few good trades. Risk reward being production is good. Rich, thank you. Thanks for coming all the way over to the set. Coming up. Worst year ever for tesla shareholders. Share rs in danger of making a rather dubious milestone. Plus, leaked photos of the iphone 7 are burning up the web so, so what do they tell us about new phone . I think its quiet out there. Think again. Some stocks are if the midst of crazy rallies and their names are sure to surprise you. Well tell you if any of those are a buy. [engine revs] [cheering] the highly advanced audi a4. Inside everyone is an incredible cook, someone who can cook an amazing meal any night of the week. Farm fresh ingredients, stepbystep recipes, delivered to your door for less than 9 a meal. Get 30 off your first delivery blueapron. Com cook. Hey, jesse. Who are you . Im vern, the orange money retirement rabbit from voya. Orange money represents the money you put away for retirement. Over time, your money could multiply. Hello, all of you. Get organized at voya. Com. Narrator it wasnt that long ago. Years of devastating cutbacks to our schools. 30,000 teachers laid off. Class sizes increased. Art and music programs cut. We cant ever go back. Ryan ruelas so vote yes on proposition 55. Reagan duncan prop 55 prevents 4 billion in new cuts to our schools. Letty munozgonzalez simply by maintaining the current tax rate on the wealthiest californians. Ryan ruelas no new education cuts, and no new taxes. Reagan duncan vote yes on 55. Sarah morgan to help our children thrive. Reagan duncan vote yes on 55. [ clock titime. ] you only have so much. Thats why we want to make sure you wont have to wait on hold. And you wont have to guess when well turn up. Because after all we should fit into your life. Not the other way around. Tesla falling the today. Shares of the car maker down about 10 this year. If the tok were to close the year here, it would mark first negative year for shareholders since going public six years ago back in 2010. Grasso, shareholders be worried . I think they recollectshould. Isnt the bloom off the rose . Sure. The shine off the apple. Its confusing. Theres a bounce level. 205 down to 190. Trz fundamentally, the torre has changed and technically, the story is challenged, so either way. It wasnt too long ago, we were say iing the shares were trading like a champ given the autopilot fatality and the accident, et cetera. Solarcity deal and yet, you take a look back and the performance has been good. Makes you wonder with all the Capital Market stuff going on. The only guys stepping in for the senior directors. When you consider the fact that really, the only thing in the grand vision thats working, we know tesla is making a great product, but in terms of deliveries, in terms of being the mass market car, changes before it gets out there first of all. The battery is the one thing that works and its in the price of tesla and if solarcity fails thanks. Thats why you should be cautious. Over the next 12 month, more to the bull case. I think the people that hold this stock in a major way, they believe the story. I dont think theyre flying out of this name. You cant say that though. Just because people, i hear what youre saying. That investors, tas cult stock, but at some point. Loses it cult, doesnt it . That becomes a scarier environment. The major hold ers wont sel it. Theyre inclined to se sell it ate 125 than 215. Its their absolute belief in the story. Zpl when do they niese to raise money . They already did. Theyre not done. Get a bigger boat. And the bulls are every time theyve had an offering, its traded well after that. Were right back, i think it was 215 before they priced the last one. Youre in the bull camp. Gl why not just because. Broke the 200 today. Dennis gartman ready to pull the trigger. Youre watching fast money. In the meantime, heres what else is coming up. Maybe not. Because National Home prices are about to do something they havent done since the housing crisis. Well tell you what that is and what it could mean for the ra rally. Plus, did you see that . Reported leaked photo of f the new apple iphone could give shareholders a reason to smile. Well tell you what when fast money returns. When it comes to medicare, everyone talks about what happens when you turn sixtyfive. But, really, its what you do before that counts. See, medicare doesnt cover everything. Only about eighty percent of part b mecal costs. The rest is on you. Consider an aarp medicare sulement Insurance Plan insured by unitedhealthcare insurance company. Like all standardized Medicare SupplementInsurance Plans, it could really save you in outofpocket medical costs. So, call now and request this free decision guide. Discover how an aarp Medicare Supplement plan could go long™ for you. Do you want to choose your doctors . Avoid networks . What about referrals . All plans like these let you visit any doctor or hospit that acceptmedicare patients, with no networks and vtually no referrals needed. And explore the range of aarp Medicare Supplement plans. Sixtyfive may get all the attention, but now is a good time to start thinking about how you want things to be. Go long™. This car is traveling over 200 miles per hour. To win, every millisecond matters. Both on the track and thousands of miles away. With the help of at t, Red Bull Racing can shaha critical information about every inch of the car from virtually anywhere. Brakes are getting warm. Confirmed, daniel you need to cool your brakes. Understood, brake bias back 2 clicks. Giving them the agility to have speed precision. Because no one knows like at t. Apple today announcing it will host its annual fall event on september 7th. Guy, mark your calendar. For what . Hello. Not on two. This all comes as leaked photos of what is reported to be the new impb 7 make their round on the internet. Hey, josh. Well, thats right, melissa. This is from our colleagues at cnbc asia. They tell us that the Chinese Media is now reporting that China Telecom has only started prebooking orders for the iphone 7 and there are some very specific descriptions of these new phones. Theyre said to be waterproof, offer wireless charging, dual camera systems with better photos, bigger battery, removal of the headphone jack and new Color Options like night sky blue. So apple declined comment to cnbc about these alleged leaks, but there is a lot riding on this new iphone. Apples flag ship product has been under real pressure, sales have fallen for two straight quarters. If xhaens overall sales fell 15 from the late err quarter. Apple shares up 10 in the past six months. Down 13 from the 52week high. Telling me there are 275 million active imps older than an impb 6 still out there, so the bet here is that many of these users will be ready for an upgrade even if the 7 only boasts incremental changes. We could soon find out. Thanks so much. Josh lipton. In case vacation last week, karen, you sold on apple. Twothirds. Most my apple sold. For no other reason that i dont know what the right multiple would be here. Selling into quarter did the right thing to do. I got to say, if the it is waterproof, that is a good thing. That is a huge thing. Is that what taking the headphone jack out means . Why is that special . Wireless one i dont know. I think wireless charges would be fantastic. You can do that now. But if thats the standard. Let me ask you question. Talked china taking preorders. Wouldnt somebody know if that were true . Who do they take the orders from . I mean, i dont know. Somebody once the stock and provider, who wants and were watching do a wait list because were going to get an allocation and we want to know what demand is. If you liked china, youre going to love india. I think the penetration is lower and i know youre worried about asps, but theyre going hard on india and i think if anything why is everybody discounting the india side of the story. Why is everybody hopped up on china. I think people believe per capita income in india is that much lower. I think this is a very big story if you thought apple china was a big story. A major tail wind was the money offshore. How many billions they had offshore. It was a ruling tomorrow. Coming out of the eu. When they say how much is their fine going to be, if on taxes, is it going to be 1 billion, 19 billion. So i think thats a huge question. Polls love it had the money offshore. It could be a negative. Karen sold the stock. Probably has a right to sell was if you look at it, this is where these levels are trading out. Where we failed earlier this year. Since the middle of earlier last year, made a series of lower highs, lower lows. Failed at 110ish. If its the lackluster announcement, she probably