Home, and so techs and fpgss are leading the way. Josh brown, time to be more bullish about the market despite the headwinds that are perceived to be out there . Well, i are will say this, if you are into the confirmation bias, you are getting it right now, because the tone seems to have shifted almost overnight, and we are challenging the old high going back to may and june of 2015. I dont know if this is the time that we punch through, but we have been here before several time, and this is where we continue to fail. If we were to break through at this the point, and do it with the breadth that we have right now, which is very good, you will have all of the confirmation bias that you want. And we have dow, and s, and p and russell and nasdaq above the 200 days, and the technicals lining up, but yet, you are skeptical of it, and what are you saying . Well, the market is caught on the technicals and the weak upside, and you have a dovish fed, and the dollar showing some stabilization year to date and likely to reach a floor. And the earnings, and there is a disconnect between the fundamentals and the price, and we ve seen five quarters of the top line contraction, and three quarters of the bottom line construction, and with need a weaker dollar to get some relief and the earnings going, and then more upside in the equities. This is what jim cramer said this morning on squawk on the street. We can react to it. Here it is. Finance and tech are this stock market, and it is amazing. This is stealth rally, and nobody is talking about it. If you want to get out of the stocks, you have to stay in, because it is day one of the rally. To that point, okay, a large section of the market, tech and fpgss looking like they want to participate, and fitz takes up the china gdp forecast for 16 and 17 and housing is looking strong based on the numbers yesterday, and doesnt it make you stand back and say, well, maybe it is time to be a contrarian to how i thought before . Well, i think that the market overall, i think that it is limited upside, but, yes, certain parts of the market, and s sectors, and certain parts of the equities globally have upsi upside. So for instance in the u. S. , i like the energy trade and the a materials trade and the financials are more interesting in the shortterm tactical perspective, and globally, emerging markets is a great trade with respect to the u. S. Which is on the winning side over the course of the last three, four, five, six years. And i want to point out that the sectors that you like, and have liked have done the best since the february 11th bottom, steve, those being energy, materials and financials are up 20 since this diamond bottom of early february. I want to agree on the financial, and disagree on the energy and the materials, because i think that, not that i think that there is tremendous downside, but of course, who knows, because the best cant analyze the energy, and we we have seen it. I am concerned about the dollar, because we are in a trading range up against the upper end right now, and what is happening is that there is so much cash on the sidelines here and more so in europe, it comes in and plays the momentum, and shaken out so easily, but right now, you have more so today to the comment about earnings, multiple expansion that is not deserved in the market. So you go to the upper end, and then you will have the dollar to strengthen, and more of the s p earnings are outside and that going to hurt ultimately. But are we saying that the stock market will not go up if the dollar incementally rise. And wasnt the dollar the speed at which it rose and not the fact that it rose . Absolutely. And everything is ready to change in psychology, right . No expectations. They said they were unprepared. Am not saying, thatt play the markets, but the stock s. Yesterday in financials and tech, they were working, and always things to do in the market, but that is the danger to be too bearish or short, so i have not shorted stock for i tont know how long, but what i am long and bought yesterday with pete is volatility, because that is so low and cheap, and that is how i want to participate, and in financials, schwab and bank. And what aboutb yesterday that gundlach said that the market is dead money, and that it is not healthy, and this is a short squeeze that we have seen a massive short squeeze over the last couple of days. And i would agree with him talk ta talking about the dash for trash names, but in the last week and a half and accelerating this week is not a dash for trash, but it is a run towards the value, and it is the financials, scott. And look ing at the tech stocks and apple, and it is a value stock, wherever it is trading and now near 99, but it is a value stock at 110 and too cheap at 90, and too expensive now at 130, but it is at 99, and looking across at the names moving, and the chip stocks, and the mmh, and the values and the pes are Single Digits in many cases, so it is not the dash for trash on this leg of the rally to push us up to this next level. Think about where this market is given what is going on. You are 2 away from the alltime high on the s p and closer to 3 on the dow, and with have contended with a dollar rally that ripped everyones earnings to she reds as you mentioned, and we are at the 2s and 10s at the smallest and the tightest, and the banks can barely make money, and look at them, klres and they are threatening to break out. We have had a commodity route, and one thing after another, and look at how the market has held in, and henn forbaven forbid yo will get the good news, and the commodities rebound and oil at 50 and heaven forbid to get some participation are from europe and the emerginging market stocks, and what could that do when you are looking at where the market is set up . You could get the breakout, and nobody is in. Nobody is in. And the point that you could finally get a rotation, too, out of the bonds which look expensive to areas to perform. And rotation, i completely agree with, and i have a hard time talking about the level of the market moving higher, and the rotation within the market, i totally see that, and talking about the bonds and another thing with the equities and bond proxies trading at 30year high multiples versus the values. And taking a look at the Short Interest that is coming out, and what has increased the most is the yield plays, and telecom and utilities and we will continue to see that, and point it out yesterday, and the yield plays are being sold to go into the other stock, and the money has to find a level, and the level in where it is least overvalued right now is eq equities, and the bonds are overvalued and that is why it is a bid under. And judge, talking about it a week ago when the macys traded down hard and said im a buyer and im holding on, and the reason is that i think that amazon is going to hurt these guys, and it is already hurting these guys, and that is is margin compression, and it is. P. E. Compressionings and when that happens, then the price were just too darn high. And now, where they have been, and takinging a look at the performance in the last week, we are up 2. 5 since monday in the s, and p and macys up 5 , and dillards 6. 5 , and in order strom a in order strom is nordstrom is up, and could bit a rotation . I suppose, but overall, it is that people thought they were way too cheap. What happens friday, two days from now, janet yellin puts the green light on june or july at the latest, because everybody says that you have to hear it from her for it to count. From the people i have taledd to, june is going to happen. I think that june will happen. If you are looking at the timing of what they have, and you have a meeting in june and one in july, and then you have, if you are further out, they wont do november, because it is right around the election, and maybe december, so she has to go in june, and they have set you up for it. And even though bullard told cnbc that it is not set in stone. Well, you cant say it is set in stone, because you cant front and run. And he is still looking at the 2 d at the data. Well, it is market dependent. I cant tell you if the first leg is up or down, and the market can handle it. But, steve, if we are not getting the massive crude Oil Bankruptcies and the price buys the companies time, we wont have the jump on the route that everybody is talking about and get through the june rate hike, and brexit, and what is next negative catalyst and that is where people say, im done about all of these things that we have been talking about for a year, and move on to pick the stocks. Well, 140 Energy Bankruptcies so far, and lot of the Small Companies around the negative is the valuation, and the trees dont grow to the sky. So you have declining earnings, and increasing multiple and that does not work, and the negative, of course, the big negative, and the mother of all negatives is china devaluing, because that is going to make the dollar stronger. And the uncertainty of the political process, and that is going to be thrown in there as well, and the valuation uncertainty, and china, and a few things. And any certainty is president trump, havent you been reading the newspapers. And let the market opine. And what about the election, and how that will impact the stock market, but this rate question if the fed does move two three times this year, if you believe that impact will be . Yes a few a thoughts. The fed hiking generally has been associated with dollar strengthening, and that is why it is negative for earnings, and negative for the fundamentals, and that is why the rates moving higher is going to be putting down more pressure on the market, and if there is a market to have the rates rise for growth, and financials, and saver of the average american and at the same time the dollar does not rise, it is the issue, but it is not likely. So that is why i am cautious in the environment where the fed is going to hike. As far as the elections, most likely increased volatility through the the end of the year, yes. I think that there is lot of uncertainty as to who is going to go through, and what parts of the agenda get passed. Will the Infrastructure Spending or the fiscal stimulus be add odd to the table nope. I am saying if it is done early next year, yes, it could be a great boost for the market and the economy, but it is to be done. And dubravko, we appreciate the conversation, and you coming across the river to have it with us. Thank you, and here is what is still to come. Alibaba under investigation. And the stock is selling off. We will get a trade update. Plus, the tale of the tape and the brother versus brother debate. The spending in china was down in q4, pete, and i dont know if it has picked up yet. Well, the numbers are so depressed, all they have to do is to eat the stock. And now, sitting down with jon and pete, and what are ta doing now . And whole foods going after the millennial shopper. Can that give them some mojo . It is all on the Halftime Report. Man 1 i came as fast as i could. Whats up . Man 2 this isnt public yet. Man 1 what isnt . Man 2 weve been attacked. Man 1 the network . Man 2 shhhh. Man 1 when did this happen . Man 2 over the last six months. Man 1 how did we miss it . Man 2 we caught it, just not in time. Man 1 who . How . Man 2 not sure, probably offshore, foreign, pros. Man 1 what did they get . Man 2 what didnt they get. Man 1 i need to call mike. Man 2 dont use your phone. Its not just security, its defense. Bae systems. Welcome back to the ha Halftime Report. Im dominic chu. And now, the food and Drug Administration is going to delay a review of the drug that is to releave symptoms of duschenne muscular dystrophy. They are going to continue to review the drug, and try to complete in as timely as possible. The stock is down 19 over the last 12 months, and back to you. And you know, o thank you, dom. A and steve, you have been waiting for this drug . Yes, i was waiting for the calls, and overnight i sold out. Earlier, i had bought it, and sold out, and now slightly back to the position. And the risk reward now is down to 4 to 8, but the upside is 50 to 60. No cure. Three other drugs were not approved, but Janet Woodcock has been supportive of this drug, and the families who want to see this drug come in. She can overrule the panel. It has been done before, and it is rare, and this is troubling, because maybe she puts out a complete response letter, and to way, and here are all of the reasons, but the vetting from the smart biotech investors is that it is going to be approval, and the risk reward is unbelievably attractive and speculative not the leave to the family. And it is speculative and if you back to march, it was trading with volatility, and monday, trading with over 800 volatilit volatility, and that means that he he was trading with predickty of a 12 move either drirection and could have been 5 or closer to 30 or higher off of the move. It is not going to be happening this week, and the good news is that the stock went to 23 and an opportunity, and we put on the 2030 call spread, and we were able to take it off 3 and not the gains that you made, but risk reward, and the risk is worth it, and the reward is minimal, but now it is going to give us an opportunity to play it when we can figure tout time line of when it is going to be coming up. And dumb money win, and i am happy to win. And no, we talked about it. And steve had a strong conviction and looking for the trade, and we were going to be looking at it together. That is helpful. As are you. And you can take advantage of the 600 and the 800level volatility by selling the weekly options. I will do more on the web at Halftime Report for that, but this is a phenomenal trade, judge. Certainly, we hope for the those suffering from this, that they do consider just as steven said, and that it is a big win for the patients, too. And cnbc. Com halftime is where you are going do that . After the show. Yes. Okay. And just making sure. Yes, and tiffany, and lets talk about that company reporting the biggest Quarterly Sales drop since the financial crisis, and cutting the guidance and jon and pete were at the wall arguing this case yesterday, and doc, you made the bear case, and then you bought the stock . I bought the stock, and here is the reason. They came out, an missed the top line, and missed the bottom line, and lowered the guidance and i did not see a good thing about this, and the stock traded and believe it the prints here, the stock went down the 59. 25 in the premarket, and then a big buyer came in and bought 50,000 at 60. 25 and another 50,000 at 60. 50, and this is a big buyer in the premarket, and obviously a seller, because there are two sides to every weekend, but the weak hands lost because the stock rocketed all of the way back up, and when we were coming back on air, it was down 1. 5 , and that is why i bought, because somebody wanted out, and they got the weak hands out, and if you are seeing the horrible earnings like this, and the horrible guidance they saw and the stock is only down 1. 5 , that is the reason to buy. And so you were bearish on the fundamentals and that is the case that you laid out yesterday. Yes. And that is what played out, right . Right. But you simply bought the stock today, because of the options activity that you saw, and not because you changed your view in any shape or form . Right. I have not changed the outlook, but i bought the stock, because of the block buyer of stock. I will tweet it out, because it is in the premarket, and no premarket trading of the options, but look at this, folk, because that is pretty telling this big block. And the bear turns bullish for a trade. Yep. And what is the bull going to do . And the bull unfortunately and we talked about this being a longterm process and the Management Strategies and that stuff, and i thought that maybe the bar had been brought down far enough that they could stretch above it, and it did not happen, and that is why the stock is off as much, but now it is only off 1. 50 , and to jons point, when it is not nearly as bads as you expect, it is tellinging you something, and a floor, and call it 61 or 62 area for the stock, but i am not ready to jump back in, and jon has guts to go in there right now, but i did not see enough out of the report to involve myself there. And risk reward, it is a very good to trade it long, because 60 was the february low, and it seems to have not wanted to go beneath that on bad news this morning, to jons point. If you want to be in the stock long, and thinks it is snapping back, put in the stock at below 6 60, and the upside would be 10, but honor it, and do not be caught in that if it breaks, because it is on the down trend, and 1. 10 is not a good story. And spin cycle in the old tech. Hewlettpackard is announcing a surprise split, and we will look at it in the rally and break it down in the hot blitz. And now, pete and jon lagging in the portfolio competition. I am lacking a lot. He is lacking. What will they do to turn it around. It is josh and pete. Jon is not lagging anything. It is just josh and i. Lagging. Okay. I got it. Back after this. speaking japanese oh watson, your japanese is very good. Thank you. speaking japanese exactly. I can understand nuance, context and idiom in seven languages to help companies all over the world with everything from retail solutions, to banking, to cyber security. speaking japanese today, scientists and Cutting Edge Companies are blurring the signs between science. Modern medicine reports throughout the day on cnbc. We are back on the Halftime Report with the tradeer blitz. Four trades on four stocks making news. Noble energy is up first. And upgraded, steve . Yes, and basically what the analysts are saying and it is a good report because i read it, what should be a major positive such as the field in israel has turned into the negative and overhanging stock. They expect it to be settled and a lot of value to the company, and the stock is overlooked for that and other reason, and still down more than 50 from the high, and lot of upside. And pete, everybody is ahead of the western dij earnings, right . Yes, the second upgrade in two days and you got one yesterday and another one today. Yes, and they say that it is not going to zero, because they like the synergys and the margins from that acquisition, and that something else, but lastly, the multiples, and the mu multiple potential for expansion, and that makes sense, and looking at the yield here, and one thing i caution, always trades at very, very low multiples, so i dont know if i would graspp that as one of them, but i like the synergys idea with sanda. And two upgrades in two das,s and so do you at some point sell the riff here . Well, you would if you were lucky enough to have been there, but it is a little bit more, and this guy is looking at 60 target, and so there is plenty of room there. And nimbl