Money trade as it relates to energy, and the oil bottoming, and the u. S. Dollar, and that has ended. I would take the chips that one might have and a materials, energy, lower dow type of trades and move them elsewhere. Myself, i bought some puts in the xle, and the xlb in the last couple of days. You sold all of the holdings on friday . Yes, and i told friends that i had in energy names to do the same. And i truly believe it is the dynamic as it relates to the currency, and steve has often talked about what has changed fundamentally as it relates to oil, and not very much. It is a currency story, and the reversal to dday is power nfl t u. S. Tlar where it was this morning and where it is right now, and that trade is now past for 2016. You sis the other side of it . No, i tend to be with joe. And we have been talk about the dollar for how long on the desk, and talking about this, and the energy and how we have been correlated with the market and that has not broken. People have come on the air and say it is breaking and the s and the p and oil are not moving today, but they are. The oil is beaten up, and looking at the china numbers and the markets are not down 100, but 200, and look at the volati volatility, too, judge. The volumes yesterday were absolutely atrocious, and we are averaging 18 million a day so far this year, and 17 million, and only charted 13 million in the options world, and volatility indektss creeping up, and it has been low for a long time, and opportunity to get protection, and buy it cheap, and joe is right. And people have said that the overall rally, the air is thin, and this is what gunlach had told me a few weeks ago. And now, joe, the bottom, it is a february 11th. Wti up 711 in that period, and energy up 26, and the materials better than 20 , and it is incredible run for commodities across the board, and a number of stocks which trade in that space. Sure. And joe could be right. But i think that it might be a little bit premature, and i think that we are overreacting to the volatility today, and just in reading everyones commentar commentary, and when you are actually looking at what is going on this year, so in january and if february, you had 35 days where the s p was a 1 move down, and only two since then, and that is remarkable. We have had the incredible lack of volatility. And today could be the third by the way, and it is also the first time ta we are staring at the possibility of two backtoback down weeks for the s p since january, and so people are looking at the tidal wave of volatility hitting on one day, and extrapolating out further than they need to, and it is not a good bet this spring, and so i dont know why all of the sudden we want to say it is. Sorry, im not making a call on the s p and saying to take the money that we have allocated to it, and the trash, and the energy names that have recovered and the material names, and go buy something else. I bought facebook and you mean the chesapeake and hold on. Is it the trash, because exxonmobil and chevron both be. Microsoft was not a good report, and neither was apple, and so what is the trash here . The companies in a challenged industry with low expectations. No he is talking about the freeports up 200 , and the no, i will talk about the Gas Companies and the peabody coals that traded up 20 after a day of saying they were in bankruptcy. So i said that market does not make sense and i cite d them specifically and i am taking off citi because not that it is cheap, but risk. I am out of energy and time for it to reverse, and it was too easy to say weak dollar and weak dollar and the dollar is going to the be continuing to strengthen in my view. What happened today, and im not looking at today when i am taking the risk off, but the whole picture, multiple expansion with the declining person, and when does that happen with the low growth . You had the growth analysis coming out from europe. And the china pmi. And it is ultimately why and so draghi blamed germany. And we are to say that even if the commodity rally rolls over, they will find another k sector to go into, and suggesting the overall rally is about to be done . Sxwlit is always going to find some place to go and it does not sit in cash for more than three days, and everybody is looking at the same math, and the same problem in the whole world which is a low return environment, and they need to generate a return that is rel realistic, and the dip is aboard quickly, and so we could have a risk off moment, and the is h tri of these things in the recent pasts not always, be new the recent pasts is that the money might go to the cash temporarily and the short term bond, but it wont stay there long, because lit find a home. And so, suggest hag the utilities and the telecoms and the yield plays that were hot and then not could be back in vogue quicker than we think . Some heavily shorted telecoms are part of the dash for trash have rallied despite really depleting fundamentals, and you will see the utilities picking up, and the consumer doing okay domestically. And what about the big Balance SheetTechnology Names that are punished . Great rotation area, out of some of the trash names that we are talking about, and i dont put chevron and exxon and conknow coe in conoco in the trash, but it is the freeportmcmorans and those who have made 180 or so moves and great trading names and we have talked about them as trading names, and great for the options world, but not stock, because you dont know when the rug is doing to be ul ped out, but the rotation when you look at the names in the tech space crushed recentlya and im not saying apple, but microsoft, and apple and the names that i truly believe in, that is an opportunity and the spot for rotation and maybe it is tech. And talk about financials as well today under pressure, and dom chu has the latest. From the s p, and the financials are down nearly 200 in the trade, and the spdr and the kbe also falling by 2 at this point, and tracking for the worst day since early april. Laggards are the big banks like the wells fargos and the jpmorgans and citigroups down 3 , and internationally, usb and the wells fargo hurt the First Quarter profits, and the president said that they suffered from even more pronounced client risk aversion than they have seen in the past. But scott, you brought up the dividend play, and the xlf, the big etf that tracks the financials is tracking 2. 5 right now which is the same as apple. Thank you, dom chu. Okay. You got out of citi . Yes, goit out shg, i got ou because of what was not as bad as expected quarter, so that is the tone nor, so you want to find the yield plays and safety, and you want to be in cash, because i think that you will get the opportunity to buy stocks, and i will give you one example. We have one manager that is long chesapeake bonds and 36 cents on the dollar and short the stock. Now, the stock trades to 4 billion market cap which it did, the bond should be apart, and they did. And the ones paying attention to the Balance Sheet is the fundamentals to get it right. So you have to be selective, and not completely risk on anymore. I dont believe that oil goes 36, but 45. And careful in the european bet. And yes, be very careful in the European Banks, and when you look at usb and deutsche, judge, they are nothing like the numbers reported in the u. S. The u. S. Banks are disappointing, but they exceeded the expectation, and these names not only disappointing, they could not reach the low expectation, and they cant get over the low bar, and that is a huge problem. The narrative from the most bearish people out there from the depths of the lows in j january is that Deutsche Bank was the poster child of how the next wave of crisis or whatever you want to call it is going to manifest itself. All sorts of fear in the market, and it subsided a little bit, and are we back to that . Le with, it is driven by the cds which is insurance against the company, but it is moved up, because there is no liquidity, and somebody sold 50 million and through the roof. But the European Banks have not gone through the stress test that we have and they have not cleaned up the Balance Sheet so they are between a rock and a hard place with nowhere to go and the one thing about the ur peep banks that if the we are pointing out that the american banks are a better buy, a lot of of the problems that the European Banks are having in america, and Credit Suisse does not know what it is doing here, and u bs is the Management Unit and even that may be on the blockt at some point, so i am not sure that you can say it is a European Bank issue, because looking at the xlf, and here is a chart that is in a very defined down trend virtually all of the businesses these companies play in are under pressure. It is not changing any time soon. And they are rolling them over again. And with the up trends, aptd it is up 10 . And pull the chart back further, and you will see a pattern of lower highs, and the buyers are not coming in as they approach the prior highs, but selling off before we get there. And boring, the canadian banks continue to work. I know it is boring and bland and not something that the viewers are, but you are getting the performance, bmo, and toronto dominion, and that is where the performance is, and that i have good structure and no regulatory rhetoric that surrounds the Financial Institutions in the u. S. And i would continue to own them. And guys, good stuff. Here is what is else is coming up on the Halftime Report. Still ahead, the 500 billion questi question, and at what point is apple the screaming buy . The traders will weigh in on tim cooks exclusive interview on cnbc. Plus, a checkup on the biotech, and a fund manager with 50 years in the business is going to join us with his top six stock pick, and hedge funds under fire, and steve cohen is the latest to join the can chorus of billionaires calling out the Fund Managers overpaid to underperform. It is all coming up on the Halftime Report. Theres a lot of places you never want to see 7. 95. [ beep ] but youll be glad to see it here. Fidelity where smarter investors will always be. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. Stephen king, the master of suspense and the macabre. I enjoy keeping people up at night. My Analysis Shows your stories are actually about human connection, even love. Great storytelling needs drama and empathy. My cognitive apis can help any business Better Connect with its audience. You should try writing a book. Find a remote hotel. Bring the family. I do not think that is a good idea. For the First Time Computers can see as well as humans and that is is inincredible. Active investing as a whole is certain to lead to average results. Is active investment still possible . And there s a all right. We are back on the Halftime Report apple ceo tim cook speaking out to Cnbcs Jim Cramer say tag the street has it all wrong as the stock is seeing the worst losing streak in almost 18 years. I think it is a huge overreaction. And look, we had, actually incredible quarter by absolute standards and 50 billion in revenues and 10 billion in profits, and to put it in perspective, the 10 billion is more than any company make, and so it is a good quarter, and not up to the the streets ek expectations clearly. And what do you make of tim cook telling mr. Jim cramer . Is the street getting it wrong . No, because they are look g fing for the Growth Opportunity in the near term and not seeing it. No visibility on it. Is the street going to get it wrong longer term . Yes, they are, and that is why there is a name that you want to own and not trade around it. And can it fall behind 90 . Yes, absolutely. It is my mantra as well, because i have made the mistake in years to be the idiot of trading around apple and losing a ton of money doing it. And dont forget i called it a generational buy or Something Like that stupid a few years ago, and i have lost a lot of money trading apple, and it is better to own it, and be cautious of the consis ten soif the earnings because of the Balance Sheet, and what they give back to the shareholders an ultimately they tend to find their way in terms of growth, and they will do it once again. Steve . Well, the stock is a market stock, and doing better than market, and maybe in a declining market, and so it is a fairly safe place to be, but apple is in a showme story, and what i didnt like what cook did instead of being forceful about the growth, he averaged iphone sales over two years, aed when a ceo starts to spin like that, that when i am worried. So we are to see if there is room to upgrade, and the clearly the upgrade cycles are changing, because of the subsidies on the upgrade upgrades. And cook must hear this commentary and frustrated. And sit back and laugh and say that you guys dont know what we have up the sleeve, and you think that you do. Sg i dont believe he is listening at all. And gene munster thinks that he is, and xyz investor thinks so. And 9,000 article s a ds a d and i dont believe he is reading 9,000 articles, but he could be watching right now. And he knows the tone. And this is the point. No doubt that tim cook understands the tone here. And the tone follows the stock price, and when the stock is up 20 , and apple is back, and drops 20 , apple is dead and over and over and over again. And how many times well, he doesnt care about that. And that is not his job. I am not i sag it is his job. And this is true of any ceo if you asked them about the business they believe that the street is undervaluing the thing th things that are not known to the the street, otherwise he would not be talking about it. And pay me cash, because i dont want opulence. And you are not talking about one of the most quote, unquote seek retive companies out there, because they dont just show their hand, they keep it all to the vest. And you buy out one quarter, and you will be penalized by the guidance, and the visionary, and the person who drove it, the o products, he has not been around for a few year, and so we have seen the runoff when all of the pricing is created so it is reasonable to bet on what is Going Forward and by the way, a lot of the Service Revenues which is Going Forward and the glory of hold on. The global Service Revenues is is 1i8 bi8 billion, and what au willing to pay for that and he talked about china, and are we running that sound bite or not . Well, he did addressed china, and they were changing it up which carl icahn told me was his main reason for selling out of the the stock. We no longer have a position in apple, and you worry a little bit and maybe more than a little about chinas attitude. In what you have been een seein well, tim cook says it is a strong source of revenue, and lets listen in to him. And the revenues in china were larger than any other foreign company, and in greater china, the revenues were 58 billion and we did fairly well in china, and done fairly well, and despite the short term turbulence here, we are doing well now. And these are two separate situations. Icahn is talking about the relationship of the Chinese Government and the companies doing business there and the risks involved and i am sure that every company doing business there are going to include significant risks including mr. Cook if he were here, but mr. Cook is talking about the revenues in china and how they had the year over year decline. What do you make of both of the angles and what it should factor into the stock . Well, as a short term mentality as it is surrounding apple, and josh spoke before about the performance and he is correct in the sense that if you are right now a Large Cap Technology growth money manage, you are thinking of the next quarter and where to see the growth, and you dont see it in applement so is you turn to, where do you get that . In facebook, and get nit facebook, because it is proven it consistently over the last three quarters so it is a shortterm mentality, and so i cite that it is a name that you have to own and not trade. And tim cook also said to tony sack toni sacconaghis comments. Well, i believe that everybody is going to be owning a smartphone. Toni, i dont know if you saw the interview last night, but they directly addressed a concern on the program that apples best days are behind it, and he says that you are completely wrong. How do you repond . I did see the show. Look, it depends how you define best days. Apple had one of the greatest runs of any company in history. Between fiscal 2007 and fiscal 2015, revenues went up 10fold, aband earnings up more than 15fold and the stock price up 10fold. If that happens in the next eight years Going Forward, apples market cap is going to be 5 trillion, and i dont think that anybody among the panel is going to be making that bet. So my perspective is from the Financial Impact and i picked that period because that is when the iphone was introduced in fiscal 7. So from the Financial Impact, apples best days are certainly behind it. Can the Company Still develop a powerful and potentially, you know, gamechanging technologies Going Forward, absolute ly. But the kind of growth rate that apple had over the last eight years will not be replicated. It is hard to say that the street so to speak is going to be getting it wrong, and it depends who on the street you are talking about, and you folks who are looking at the longer term trajectory of the stock and you have outperform on it, and you are buying into the story that tim cook is saying that by virtue of the fact that you are outperforming, and the people are urging you to buy the stock, and you believe it is a