Cisco and all the rest. The rally that helped today. President trump meeting with a number of the top ceos at the white house today and they all made their case against trumps border tax. Eamon javers is in d. C. Reporter . To the ceo of target very briefly after this meeting. A lot of them didnt want to talk about what happened. They did definitely bring pup border tax. Presumably behind the scenes they made the same argument theyve been publicly. Heres the argument against the border tax. Theyve been saying it could like prices by as much as 20 and the tax could derail job growth. Thats a key priority of the jump administration. They stay border adjustment tacks could cause a recession. They said that to the United States in the president of the United States in the closed doors but in the open doors, they talked about the mans for a tax cut. That got the markets attention. Heres what the president had to say. Tax reform is one of the best opportunities to really impact. So were doing a massive tax plan. It is coming along really well. It will be submitted in the not too distant future. Youre talking about big number of savings for middle income and very much for business. A lot of question now about what the not too distant future means in terms of introducing that tax plan here in washington. Of course, a lot of questions about what specifically will be in and it tax reform is an uphill lift. Any time youre dealing with a major legislative package like that, they havent done something of this scale since 1986 in washington. Of course, the politics in washington this year are very different from what they were then. So no guarantees that this will at all be shepherded through the process and be exactly what the president wants at the end of the day. But here at the white house, theyre going to get started very soon. This is not just about the border tax. Follow my logic. A lot of elements could be jeopardy. It has pushed to record highs. Does this mean the rally could be in jeopardy . If the tax plan does not go through . Is the rally in jeopardy . I think you could make the case that it could be. The banks have been what has led. And i dont think it is necessarily about tax reform for the banks as much as it is roll back and regulation. So if Bank Regulations dont get rolled back, i would be concerned. I dont think the narcotic is set. I think it is 50 50 back and forth. I think if it doesnt go through, the thing that would concern me would be if measures to then banks didnt go through. Then we have huge problems. This whole tax conversation seems part and parcel with how the whole campaign went. At the level of detail at some point doesnt even really matter to people. We have someone talking a very different set of objectives than the last administration. The reality is youll to have pay for a tax cut somehow. The border tax does not make sense and i think it will kill all these iconic brands in a big way. Saying this tax cut as it is presented does not detrail rally. I think well get things more important to me. The fed earnings and valuations. We were not expecting this to be solved overnight anyway. That would be a big lead tax cut. Expectations. He set expectations. We hear it all the time. Massive cuts. He is a phenomenal its been set. What do we have . We cant fulfill those obligations without a massive shift in something. What was interesting, the ceos didnt want to talk with their frgss could with trump which means it will probably be relatively negative for the retailers. It would catch me off guard. That would be one of the biggest things. The signs are indicating it. Trump is saying massive tax cuts coming. Need offset that some somebody. It will have to be through that and the ceos not having an open conversation about it. Ive been saying it over the last xperiod of time. I didnt think it would occur. The signs, what hes saying over the past several days are scaring the heck out of me. We are hearing expectations being built this for a tax plan that people are expecting to be massive. If a back tax isnt posed. It will put retail into a recession. I think you have to look at what jeremy was talking about. What could derail us . We know jeremy has been such a bull and hes been right. Of course hes bullish. Just about everybody ive heard of. The reality is, if you go over the last eight or ten years, this guy has been right. The markets have come back. He talked about tax wars being a huge issue here. And that i think is where the problem is that we face. And what could derail this market. On the other hand, if we get the deregulation a little bit out of the financials, maybe it is not a complete exiting of dodd frank and all the rest. If we can do something to actually help some of that regulation. The tax reform though, does that indicate there could be cracks on the way to deregulation . I think any removing of regulation is a win. But how long will that take . At least 12 to 18 months. How about this . It will ill fact earnings. How about we look back at the earnings. We talked about it the previous time. What really kicked off this . The reinvigoration came from the financials. They werent the actual ones that reacted. They stayed in the flat line between 23. 75. Now all of a sudden, what is really broken out once again. You look at it now. Look at the way it has taken off. And how about the huge disclosure . He bought a lot. And i mean a massive amount of calls in the financial spider. Hes been on the wrong side of the trade. He has. This is a huge winner for him. Are we saying it is intact even if tax reform looks less likely . Yes, it can. A show of hands, please. All right. Do i have to do this . You have to tell everybody. Were smarter than that. The bottom line is there were a lot of things that happen that were very bullish. You had a slew of fantastic Economic Data out. Youre getting at the rally. It is the same question. The fundamentals. Other things going on in the market. Do i agree there are other good things happening and i think the rally does not need to be derailed by what happened today in washington. Okay. I think well see a solid news event. The market is underestimating the risk thats exist, the ability for this administration to enact what they want to get done and theyre using language that is setting expectations at a bar that is significantly higher. Were in a greedy market. Retail investors across the board at some point it will snap. It will be a sell in the news. We get the news with the tax cuts. Not what people expected or there will be an offset that is worse. Thats my call. I think theyre a very difficult buy right now. If were going back to the retail side of the trade. Thats a very difficult trade right now because what is amazon proof . Thats what you have to look at. Otherwise, how difficult is it for all these retailers . Who is amazon proof so far is in the last three years . Costco, best bye, tjs, ross stores. Those are the stores that have been able to manage to continue to grow. You look at where it is now in the last three years. Huge runs for the upside. Thats because theyve been able to withstand this push from amazon. And i agree with everything youre saying. But the sentiment is so absurdly bad. If you look at our positioning. Youve now in the last four or five days seen short conversation that has brought that positioning in 20, 30 , im getting from my prime brokers. A lot of people are, theyre way negative. They havent necessarily expressed that in the form of a short. Then you have names like a gap or a macys or a nordstroms. Theyve all been in the news and there have been reasons for it. These are great Balance Sheets. These are companies in many cases are slowly engineering, im not calling this a turnaround. Im calling it a sentiment. They are way oversold. You want to sell this in the hole . Im telling you, weve seen recovery. If you think theres a border adjustment tax, what about macys . Do you think theyll be hit the hardest . If youre a best buy who apparently makes a million dollars, if theres a border tax they lose two. As it is script, it is a negative. These names had issues prior to everybody hearing the word border tax. Nordstroms problems went back six months. To tims point, i think they have sold off enough where you can take a look it a. But the day trump was elected, target was a 62. Traded pretty much in a straight line. I think for a trade it is interesting. I think the numbers will be disastrous when they do report will rally into earnings. What did you do . Took profits. Just taking down positions. Long term im positive. In near term, weve come too far too fast. And a lot of retail earnings, guys. Jcpenney, gap stores reports. Youll see guidance being a little bit concerning. February was train wreck. Discipline always dictates action. When you have that situation like we have right now. In the last three days, ive sold 16 positions and bought six. So that gives you an idea of what is shifting around. I still believe the story but i would rather have the exposure i have right now. Of the xlf. I still own bank of america. Im in the stocks i want to be in that i think have the best but the xlf has made such a spectacular move. That was the one i wanted to trim. Trading your portfolio is different. Fading some of these names. It is a little ebullient. Jack dorsey made a, 7 billion bet on the stock but it is not as good as it looks. Check out shares of cisco. Well hear from the ceo about what drove the quarter this hour. Ways wins. Especially in my business. With slow internet from the phone company, you cant keep up. Youre stuck, watching spinning wheels and progress bars until someone else scoops your story. Switch to comcast business. With highspeed internet up to 10 gigabits per second. You wouldnt pick a slow race car. Then why settle for slow internet . Comcast business. Built for speed. Built for business. Jack dorsey is buying the dip. Naturally he tweeted the move saying, love twitter with an s. E. C. Link. However, it may not be as big of a move as investors think. He had previously dumped 125 million worth of stock in 2016. Should this renew Investor Confidence or is it all smoke and mirrors . Ceos buy and dump it. You cant brag about buying 7 million worth when you sold 125 million worth. The metrics are still in decline. Theres really no Growth Opportunity given theyre catering the upgrades to the current user base or the really big user base. So i look at the story and say there is no way this stock will hang in here. It is only up on any sort of takeoff premium. This will be a 10 stock. Mark my words. It is going to 10 before it goes anywhere near 20. Hell probably be buying more then. Isnt their core user base this very avid grooch people. I dont think the growth is really the issue with this company. Im not saying it should be content at 320, but if we were able to monetize it, we would not be having this conversation. I agree 100 . They should not use that metric. Google doesnt use it so twitter shouldnt use it. I hear that. I thought it flubbed 109 million shares. If you see it flush 10 , buy with both hands. That wound up being the right thing. I think it rallies from here. I think if youre looking for the down side, to me, youre playing against something that might not be there. The only way to play it is through options. Youre only playing it for a takeout. Virtually, when you look it a. Monday at th they do it only because theyre going against facebook which is not the great comparison but everybody uses it. But jamie dimon steps in for the dimon bottle and puts down nearly 30 million on his trade. Steve steps in multiple times. Comes in 30 million here, 50 million there. Throwing money at his stock. Theyve been raking in the dough a long time. It probably is. Just the play that. My argument would be, hes right. He sells 125 million and he puts 7 million. Thats not something, we want him to buy it but thats not it. He just made a statement. Theres no way it will be taken out now because he has obligations. It is illegal for him to buy the stock. At least in the near future, there its no deal on the table. Probably the most credibility out there. It was emblematic of the financial sector. We were talking about credit risk. The world falling apart. And he said my business is safe. My Balance Sheet is safe. I think it is apples and oranges. To say that jack dorsey is a great trader is not what we want to be saying. Lets shift to our move of the day. The biggest biotech. This grocomes from appaloosa. Is this the time to buy . Weve been saying this for i think a couple months. Weve been right. The stock heldthe ibb held where it should have on the down side. It is now significantly above the 280 level that we talked about. These stocks are under the radar. Nobody seems to be talking about them. And weve said this. You will wake up one day. The ibb will be traded 320. Just like when oil a year ago was trading from 2540. And then the same thing is setting up in biotech. I still own gilead. I sell calls every couple months against this position and it has been on three months. They have on make an acquisition i havent understood why they make that move. Until they do, thats the problem. The present drugs that they have. Those are going down in value all the time. I agree with that. Ive been very vocal about gilead. What i say about the ibb, this break out is like a lot of other things. We saw ibb break out at a cheer level. I think the market was in the tanks, we would be hearing more. I think to say that suddenly things are game on for the biotech sector. Different than yesterday. Im not so sure. On the heels of that, a little short recovery going on. I do believe, look. I love the ibbs. I think it is a fine level for the long term but you could see them settle out. Still ahead, two big names. Cisco and cbs. First in business worldwide. In the meantime, heres what else is coming up. Forget apple and goldman. There is another dow stock that has quietly made four Straight Days of all time highs and traders see more to come. Plus, the strange market ano, maam reply has traders saying this. Just keep buying. Well tell what you it is and what it can be for more gains to come. Toda iinle worer. D als. I amospi rsaltmentsts n torediheigowsofbeteours in adnc d i amorking worreco u bmaeratto boo thpemance e athlete workintogeern outt athin idou havind . Bout yo brokeraes i donknow 65 idou havind . Uhhh yo brokeraes d i fers some sortuantee . Ar . If your brerage ere cet ourees d commisons ck if w nappyome sortuantee . Ar . If your brerage soan o m what schwab isering . With the estions . Ask your bkeiftheyre offeri 6. 95 on equtradns . And a tisfacon guarantee ifwhs the value of cal . Fwhats . Sketll cts 14. Whsm wth . cs whats it woh. Talk to yo mom . Wh value of n e woods . The valuofcapipiis tcr nrgtanleyshat matt wont replace the full value of your totaled new car. The guy says you picked the wrong insurance plan. No, i picked the wrong insurance company. With Liberty Mutual new car replacement™, you wont have to worry about replacing your car because youll get the full value back including depreciation. And if you have more than one Liberty Mutual policy, you qualify for a multipolicy discount, saving you money on your car and home coverage. Call for a free quote today. Liberty stands with you™. Liberty mutual insurance. Welcome back. The s p 500, dow, and russell 2,000 all hitting new highs today. Health care was the big sector winner. It is a busy night for the earnings. All out with reports. Well bring you the headlines moving these stocks. And later, the one dow stock that is making new highs for get this, four Straight Days. Well give you the name. But first we start with the record in the markets. The s p 500 on an historic winning streak after posting seven consecutive days. Here to break it down is a man whose winning streak never seems to end. If i even had anything close. Remotely close, i wouldnt even know what to do with myself. But the short term stuff is pretty straightforward. Five days in a row. Seven days in a row for the s p 500. The same for the nasdaq composite. And by the way, that sevenday win streak, the longest streak cynic wait for it, september of 2013. And according to data from dow jones, all three major indices setting record closes five days in a row. That hand happened since january 3 of 1992 when it ended the sixday streak. 47 trading days. Thats how long it has been since the s p 500 has seen a move of greater than 1 up or down. So the trend is your friend and that has been a gradual move higher for some time. A lot of stats. But one more because someone tweeted a question. The average value is around 13. 9 and it has been trending lower since. The last time we were above that level interesting first trading day of this year. It is worth noting that the vix did close higher on the day but still language wishing. So vix stocks streaks all over the place. Back to you. All right. Thank you. So does this point to even more gains ahead . Lets find out what it is. Great to be here. I think the big takeaway, when we look at the low volatility is that this is a common feature of bull markets. It has been 42 consecutive trading days without the 1 range. We go back in history. That really only happens in bull market advances. The mid 2000s is another example. So low volatility. While the move has been pronounced, it is more a feature of an uptrend than a down trend. I think the other interesting takeaway, since the election, s p 500 is up about 8 . That seems like a big move over a threemonth period. When you look at the forward returns. This has happened a lot over the last 75 years. When you look at it after the 8 rally, the forward returns, the next six months, are all above average. So strength often begets strength. Dont be afraid of it. And lastly, any time we have a market advance we have to answer the question. Is it overbought . We dont think so. It is only 8 above the moving average. Historically you need to get it to the 12 or 13 range before would you want to call it. It almost almost four years since the last time the market was overbought. People dont know what it looks like. So should we invite chris over . I think yeah. On a day like today . He will bring the chair in. Thank you. Handsome men. A handsome devil. Looks notwithstanding. The statistic with 42 days. Its a more than 1 move. We havent seen that for 42 Straight Days in terms of the trading range. If you look at the inday range, it has been 42 consecutive days where that range has been under1 . When we look back historically, that tends to be a feature of bull markets. That means were on the verge of an accident. Look to the 2275. Very good support on this. If you do get some type of a pause, the trend is up. Remember it has been three years, almost four years since the market was overbought. People forget what that looks like. We had a long conversation about how financials have been leading the market. And how thats the key. What do you see in terms of financials and how that group has built its gai