Market the major indices selling off today. Those losses accelerating into the close, falling about 1 with the nasdaq getting hit the hardest. Wasnt Just Technology energy and health care taking it on the chin. This as high er rates and soft data sends a chill lew investors. Simple question to want, with toks at one lows, is this the dip you buy or has something changed . You know what, i dont think something has changed dramatically about this rally. Weve talked to death about whats happened with Interest Rates. The only thing that was different today to raised an eye breaux boroureaux was the financials with rates where they are, you would have thought they held up. That was a warning signal, but i think there are some places you want to look in tech that you might want to start picking some stuff up here. To me, the only place its safe is in the banks i think you have a valuation fundamental and rates moving higher i said this ten days ago, the of international sentiments said things have to change and almost said youre behind the curve ever since then, rates have exploded, especially across europe banks to me, which have been around an enormous part of market pressure, you have seen the yield curve. Banks were cheap going into this, but right now, bleeding end of the credit. Are you getting slower fwrout . Thats okay for banks. 24. 3 is the 50Day Moving Average in the s p cash. Weve seen a month ago, two months, we banged around here for eight or nine days. Rally from there i think draghi is the only thing thats changed reflation havversus deflation not because of growth. You tell me whats happened about inflation thats changed the economic data. There hasnt been anything why the market spooked is it buying opportunity not for tech because trs no sign of inflation yet rates are rising rates are rising. Makes it difficult to be buying tech i think you want to be b a buyer still of financials, still of Energy Although tough day tr crude. It makes it tough to buy it. But its down 12 , xle xlf had made up ground all right. Thats a lot of ground baked in already. You could see plat flattening on the buy side i absolutely love the reaction of the banks today because all day long, they were virtually in the positive. Did lip late when you consider where the banks were a week ago and where they are now and they only barely pulled back maybe half a percent, i think that says a lot about what people think of the banks and where they mightwant to have their money right now. They were Still Holding on to some of these names. I i still like the space we see paper in there every day. Including today. O. Rotation, back half of the year when you have xlk up 13 or so and you have xlv up 16 with a lot of the regulation sort of out of the way and put on the back burner. What dupg the next 10 is going to be b . More in xle, xlf to a certain extent. The problem i have now is energy everybodys been trying to pick up and nobodys been right yet mark fibber was on today he said the only area you could look at is is naturcural gas it was more of a sooner or later, natural gas will perform. I have a question why do we have to assume theres another 10 in this market thats a question for tonight. Thats been the way thats where the rates coming we talked about the price you will pay for stocks given a certain level. As Interest Rates go up, you are less willing to pay those higher multiples, so that to me why ultimately, the higher rate rs a problem in the the market. How much higher can they go you tell me i dont think theyre stopping here we might get a pause but it wouldnt surprise me they were 3 . I definitely think something has changed. Basically, theyre saying it doesnt matter growth isnt strong were going to do what we have to do to normalize again, were still in uber accommodative Central Bank Policy thats a different thing equity markets havent lost Central Bank Put for seven or eight years. Youre telling me thats over . Im telling you a lot has changed. You dont think theres concern in the market that with everybody, four of the five largest Central Banks in the world essentially say iing thatw are quoing to ease up on monetary, that things arent a little different we know how thats going to come out why is there a 10 or perceived 10 higher why do we have to believe that if trump gets tax reform passed or if health care, big ifs, those are Game Changers thats probably im not betting 10 on policy hang on hang on. They have. They have. Are you betting 10 from here you could have said that when it was up two, three i didnt. No, but you could have but i didnt. I could say a lot of things that i dont. But i didnt youre here now. You said to buy technology. Thats the place in the market where lets talk about a trade versus investment, you look at something were going to talk about tesla later that has come down 20 in a week thats some place i want to look to pick something up for a trade. Which might last for another week or so the reason whey technology has outperformed so much is because weve been in a world where growth hasnt been as strong as people believe if you change the Interest Rate dynamic dramatically, theres no reason to Chase Technology here. And in fact not chasing it down 20 im not chasing anything i dont know what youre doing. Im buying. Trade im buying for a trade. Its 40 year to date you want momentum on your side come on you buy the ditches and momentum names. I end up agreeing with brian. You and i very rarely do this. You like financials and Technology Im looking at technology. I think you have to look at the 10 pullback just said he rarely agrees with you. If youve got something close, doesnt have to be close, i still liked them at those levels from a growth standpoint, we just got or cacles earnings it trades at the pe that it does i think apple is a tougher call here. Two quarters away from where youre going to get any real news on the stop before you get into the best season of the year we made it two weeks ago when they gave us those numbers youre betting 23, 24 times as youre getting with sales force 150 times, so there are stocks to play where where youre getting this, but to say techs down 5 , making lower lows in an environment where people with still where we are im talking more individual the individual names a lot of people are obviously inv invested passive investors which is a mistake. Sounds like you might be a little conscious my view if you look, these arent blow it out the roof numbers. Durable goods, the only spot youve seen it construction, but certain not telling you youre going to get a universal wage growth. Lets settle this with the charts, fellas off the charts with todd gordon of trading analysis. Com. Yeah, i put the bk trade on didnt even realize it to start, i have two long positions here, so ill lay it out for you to start though, heres the s p 500 and nasdaq nasdaq is in blue. S p in orange. We have a clear diversion. The nasdaq has not made new highs where the s p has. Weve seen a big underperformance with technology namely apple cant get off of the 140 area. I think though however, this unz performance of tech has completed, begun to come off those lows i put nvidia on today. Options are very expensive high volatility in the chips. I sold chips, which is a bullish position i think this underperformance is over if we then take a look at the s p 500, this will just go back about three months we can draw a line around the 2400 mark. We have not broken through this support level even though it felt scary today it was a Summer Market very volatile. Very thinful we have earnings coming up and nonforeign payroll. Feels a lot worse than it is i think the financials, went long Goldman Sachs, they look great. I dont see a stock market dropping significant through through this technical level with financials on the highs what do you see for rates, todd with rise rates, it might be difficult for the markets. Are you seeing a bounce lower for rate sns. Its been such a directional move higher in rates mostly lower and bond, but im not seeing response from the currency market and to kind of tie that in, if were getting rates lower to the rest of the world, i want to see a dollar to the bottom were just not seeing it so here we are we have Interest Rates moving higher a beautiful little pullback here it seems to be b this global uptick in rates. I think its just a little bit of a taper tantrum ahead of earnings and ploim, so its just a summer little move lower i think. All right todd, thank you. It was not an insignificant event for the markets. It was a, a period for markets in june of 2013 that took four months to play out steve talked about key levels of the market so did todd. We get to a place, close below 50 for the ninth time since leches cant tell me the market isnt under pressure it is and youve got to watch the 50Day Moving Average. I thought when we did the retracement, 2450 was the resistance area. We saw a bounce around that level. Youve got to watch the 50day if we dont make it out of this week, with that 50day holding, the markets going a decent chunk lower. What did you do today amd i talked ab bt the chips earlier and some of the performance, but mike ryan extremely active when you look at technology and get the numbers like we got today, unbelievable. Demand is there. These names ar spoesed to i want to move next to pete were buddies ton. Gl flipflop nd a bear suit and here you are welcome aboard i think amd looks great i like the action in nvidia today. In the tape like this. That was kind of nice. So those are the places that i think you want to look both currency plays both kryps toe currency plays. Ive been below for the second time since the lows of december i clicked some off again hes going to react first then later. I dont care this is the same thing as it was in other rate scares, but been probably the best performing class could go down when youre long something in this mark, you better have a good reason. Theres a lot of passive investing guys, but im long monosan monosanto, kb homes. Theres a housing recovery thats why im long those stocks square has a bunch of different level levers they could pull sq monosanto. 11 upside real quick on top, the ee measuring. Huge put buying in august. A put spread to the downside, so somebody b expegting maybe a little further coming up, could President Trump block one of the biggest media deals of the year . A juicy nugget in the New York Times has vinvestors nervous. Plus, the two hottest ipos of the wreer struggling to stay afloat could it be a warning sign for the rest of the big names . A special report and later, tesla e entering bear market territory. Down 20 , but gene money center says it model 3 is is about to change the world hell be here. Much more still ahead. You always pay your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with you™ Liberty Mutual insurance. Welcome back weve got news alert on qualcomms fight with apple. Over the past few minutes, we have seen this news cross. Qualcomm hitting back at apple with a dual pronged approach, making a complaint to the International Trade commission, arguing for a ban on the importation of certain iphones this is going to be a subset of overall iphones, many of which do not have qualcomms Modem Technology in them a statement from qualcomm from executive Vice President and general counsel Don Rosenberg reads in part, the patents we are asserting represent six important technologies out of a portfolio of thousands each is vital to iphone functions. Apple continues to use qualcomms technology while refusing to pay for it apple on the other hand, theyve just rereleased a previous statement. Old dis but goodies, reiterating their illegal Business Practices are harming apple and the entire industry for years have been demanding a percentage of the total cost of our product. Interestingly though, this particular argument that qualcomm is crafting, seems to be framed specifically to combat this because this is not about the modem. Theyve asserts six patents that dont have to do with the modem. So apple and others cant say see, theyre using their power the fact their Technology Ideas were built into standards to try to bully uz. These arent standards they dont have to do with the mode el. Support supporting qualcomms argument we know how you like to squeeze widget suppliers for profits these are technologies that allow performance to be high while also con serving battery live, which we know consumers are interested in. So, whatst the impact if qualcomm wins on this . Well, this probably suspect going to begin to be heard until august and then its going to take more than a year to be heard, so no impact on the impending iphone release that we expect to see in september. And plus, when these bans even do go into effect, they tend to be maybe less fireworks and more whiz bank poppers. Weve seen scisco win a case against networks, but companies have some wiggle room to tweak their products and perhaps not be in violation of certain patents or settle before these rulings come down. Saying that in the past ten years, its om brought a case like this once before that was last year and it was settled before the itc made a determination, melissa all right, jon, thank you on the fight between qualcomm and apple. Presumably, if this is going to take that long to hear and figure out, then that hold left on qualcomms Balance Sheet with with revenues that it used to get from royalties from apple, which they said theyre no longer going to pay, which they arent going to pay, that will remain unfilled, so this really doesnt change the story of qualcomm and if you look apple, jons right. This is such a long, drawn out thing. T not really affecting either stock in any way, shape or form, really apple specifically is still sitting there and its, im look ing at it now, i think its trading flat theres no reaction now whatsoever i would love to see a reaction because whatever reaction woul probably be an overreaction and a buying opportunity for sure. Zpl i think on the year to date basis, qualcomms down apples up not necessarily having anything to do with this. The level now as i was sort of getting, i do think it has to do with it on a macro basis. A lot of other moving parts, but the market has picked apple, so if youre making me pick, which youre not. Would you rather . Apple because we know, always talks about it the level 14 t2. Apple is buying apple. Its a monster buy back. For qualcomm, how about the i think its the key in the driver and i dont think people are giving them the credit theyre going to close this deal i think the news is in the price and its a lot of bluster by both sides i think thai going to get this deal done. It expired apple needs qualcomm i know its hard for anyone to hear that. They can work with intel, other people and they will from one battle to another, President Trumps hatred for cnn could throw a wrench in the time warner deal. In an article, the New York Times reporting growing tensions between President Trump and cnn could put the 85 billion deal in jeopardy the piece calling trumps disdain for cnn a wild card as the Justice Department mulls the merger this comes as david faber reported today could close within 60 days this is unprecedented in term of the plitization of our media in this country and its frankly very scary, except for the fact that i think you have to give people the ability to see through what part of the media and both sides, i think theres a clear case to be made for somebody overreaching. Tink real issues is that they traded to levels on valuations that historically significantly higher because people are expecting them to move into higher territory immediate yarks con tenlt tent et scetera part of the reason why at t and verizon, they killed each other wireless and broad ban thats the biggest problem for these stocks now this deal i think will go through. It should be free and fair markets. It will impact that could evaporate quickly if you have unfair markets. I think if a deal goes through, its probably 6 to the deal price left in time warner im long monosanto 11 to the upside. Nxpi is already in thats 110, so not much juice left in the tank there but deal stocks are still there. Those are the fundamental reasons there. Do you see options activity that would int kate this deal to clo close . I was studying that the last little while no people seem to think this deal is is going to get done. All right still ahead, one o f f the big bank setting a winning streak today, well give you the name and trader later this hour heres what else is coming up on fast tesla shares are in free fall, but top ten says now the time to buy. Plus, the worst performing stocks h the dow have some of the biggest dividends. Its a trap maybe not. Because one of our traders sees o btedo sckn wnto hell give you the name when we return welcome back the dow dropping 158 points while nasdaq and s p fell about 1 heres whats coming up in the second half of the show. One dow stock snapped its longest winning streak in nearly three years. But traders to new highs with earnings next week the market is is finally showing signs of life, but the two most highures of the year have been disasters first, teslas terrible week continues. The automaker officially in bear market as of today phil has more on this developing story from chicago hi, phil you know, we thought at the beginning of this week it could be a big week especially with elon mus bk tweeting out were beginning production this week a will the of hoopla around those. Well, guess what, it has been anything but a great week for tesla shareholders, the stock is now down more than 20 in what people would call bear territory. Youre