Dow is down 28 points. S p 500 down 11. That is nearly. 5 doc, theyre selling the teches again. Banks are trying to get a bid post fed they look like they dont know which way they want to go. A lot of the teches got bids, too. Youre right they were under pressure hard today. And that selling pressure, i expected it to continue for longer than maybe 15 minutes but it didnt. I mean when you look and we didnt get we couldnt break the 50 day in, for instance, amazon and you look at the other support levels for alphabet, even on the downgrade today or facebook these broke but then they held basically right there at some key Technical Levels and we saw v shape bottom on that nerld in other words, the money did come pouring into the names. The one that caught my eye is netflix for other reasons because filling a gap, i believe. Ill talk to josh about that boy, i was impressed about this i expected, judge, there to be more of a bloodbath based on what we saw in the premarket and the early selling we saw here today. Interesting, weiss. I mean doc makes a good point. Fed hikes rates. Dealing with the Balance Sheet word that president himself is under investigation for possible obstruction of justice and here we have a stock market with a dow thats down 27 points. To america its almost like a game of russian roulette which negative news head shrine going to be the one that breaks the camels back is the one that is going to shoot the market dead i think that it keeps piling up. If you had if any reasonable investor with any time line of history had said heres what were going to have and list go through the litany of things including what happened with the president and a 60 disapproval rate and all the promises not come to fruition and then the fed piling on and doing nothing unexpected, they were going to lower the Balance Sheet. You say, wow, i have to go to cash i have to buy bonds. However, you have a ten year yielding 10. 15 . You have to be whistling by a graveyard not to be cautious i havent bought anything today. Ive got a decent amount of cash i didnt add any cash. Kunlt n you cant not be conserved. Where is risk right now it says that were continuing a trading event which kurd since last frid occurred since last friday and youre looking at the risk associated with overweight groaning john mentions today the qs today which i was short this morning went down to 139. 49. Last fridays low was 137. 47 trading many the marketplace and you see that pattern, it doesnt break below friday low, you get the response you gaent the qs are 138. 25 the market very technically driven the s p 500 itself, the s p 500, the high for today is matched right against the low from yesterday. This is not a longer term event. This is a trading vent i think people need to understand that. Okay. Carrie, the president himself just said moments ago very good numbers on gdp are coming or some variation of that yesterday janet yellen said the economy was doing pretty well. But what if i told you that because of the investigations and all this other overhang that its going to be in d. C. For a number of months, were all expecting that what if i told you no part of the agenda is going to happen anywhere close to what people think . Anywhere close sure. But the economy is what the president says it is, what do you do in the market under that scenario i think this is business as usual. Weve been living under the cloud of well maybe theres going to be reregulation its going hurt some industries and help some industries meanwhile, that hasnt happened. So were chugging along as an economy, unemployment is 4. 3 . The companies that are the fangs or other Growth Companies thash, they are the numbers. Interest rates are low that helps Growth Stocks its boosting the market you cant use bonds as a substitute right now you get nothing for it so i think its steady and here we go and dont pay too much. So, josh, do you buy stocks under the scenario that i just laid out to carrie you get nothing from the agenda because of all of the noise but the economy is okay. And they continue to produce do you buy stocks under that environment . Yeah, because its important to remember in a the rally that were in the midst of arguably started in july. Thats before we knew that who would be the president its before we knew about a lot of policies that seem to have just kind of been made up along the way. Between then, the election and now. So like i dont really think that a lot of what weve seen so far is based on economic policy. Thats been much more of a media story than an investor story im just being very frank here i dont know about. That Lee Cooperman sat listen let me finish he sat in the chair where joe said and said you get tax reform, you get another 10 added to earnings and thats what helps take the market higher im sure he is right. Some has been reliant in some investors minds because all of the areas that would benefit from that scenario are now back to where they were in october and november. With almost no exceptions. To me, thats not the story here the story here you is get new record highs in things Like Health Care and industrials and the gray that small caps okay, so tech is retesting fridays loechlt big deal. Apple got below the this morning. Netflix got below the low. Forget about support levels. Then you look at amazon, all right that one is putting in a hammer a higher low maybe thats the one that holds up i dont that i we can tell i think its a Bigger Picture thing to say this market just swallowed four rate hikes in a row. You know, how much more can you throw at this market to have it demonstrate resilience so now you have this subrosa rotation taking place in areas of the market that had not been the fang stocks and were looking for reasons to be pessimistic because apple didnt make a new high every single day. To me i think we have to think bigger and broader should you be cautious yeah, obviously. Every day you should be kaushgs. No more today or no less than yesterday. This could be as josh said this has to be one of the most resill yenlt marke resilient markets weve seen you cant explain everything away im the definition of complaisancy i think your view. Ive been right for seven or eight years, so i guess i am complaisant. Congratulations let me know when you catch up to me kbl. This doesnt have to be a personal thing. It apparently z let me challenge that assumption. G. On average over any rolling 12 month period youre going to get a drawdown of 13. 5 . Youve been around longer than me if im willing to say i can accept that with the money that i have allocated to equities that is something worse, something not as bad, it averages tout Something Like that, you would say thats complaisant . No. What i would say is being complaisant is explaining taking all the data points and we never seen a situation like this agreed. Youre a historian, and saying they cant impact the market. Who said that i feel like you said that i feel like you showed up in the mood to argue but i did not say. That they absolutely k i said they have not yet. And youre saying its a isnt that sort of the point were making you have a vix where it s the market reflects rightly or wrongly what is going to happen in the future. Its not joshs view this is the market the market the market hasnt done anything but pretty much go up. Thats absolutely right. No one is saying that will be forever. Youre putting that in my mouth. I didnt put anything in your mouth. Tone down the arrogance for two minutes. Heres what were not going to do. Were not going to have this personal nonsense. Were going to talk about the market or not going to talk. We have three other people. Right the issue is when you see the anythingtiv negatives pile up, that will sprenlt a better buying opportunity. Markets go up will 80 of the time right. This is one time i think, and i havent lowered exposure i didnt sell any netflix even though i think it is still a great company. But ive got cash on the sideline for when that happens i dont think the issues are media creation i think theyre real issues that have evolved where there was an expectation and where ceos started to spend a all they talked about is spending and whats coming with the administration thats not going to happen i think you have to be cautious, more than normal cautious. The point im trying to make is i think its astounding that market is where it is, almost on a daily basis. Yeah, there are fits and starts and whatever based on some of the news and noise that has been out there. At other times would have had a much different reaction. One final point and the psyche of investors. You can take a look at that and you can say this is going to go on for an extended period of time or you can take the other look which im choosing to do and say at some point theres going to be something that breaks that do you think that say profound statement dont we know that something will break this. Im not going tore profound then you and i completely agree. We found a twi argue about it but we completely agree. At some point something will be thrown at this market that will absolutely vindicate the people that have cash im not saying its a black swan me either it doesnt have to be. I agree. To scotts point, there is a lot of money out there it shows that theres a lot of money and theres demand for stocks and given opportunities this morning, people rush in and buy. You have the funneld manager sauer have a we had, people think the xbleervegt valued. People talk about bubbles in various places of the market the president is under investigation. All of that has been incapable of derailing a rally judge, i saw massive hits in the eem this morning just an hour ago i saw three million shares on the bid. 2. 2 million shares on the bid. Just multiple million share, bang, bang, bang and i expected okay, now were going to wear the fall now its going to roll over. Thats the way i have come to view those sort of momentum trades nope reversed right away. Came back up 20 cents. Im like there is impossible but its not there is that money that you spoke of clearly it is committed on drops like that. And this wasnt even a 1 1 2 or 2 elloff. It was a lousy 50 cents. Because a lot is program attic. And people are not necessarily doing those million share trades or notional trades with the idea that somethings changed there are things going on. There are programattic trades going on and there isnt necessarily a person fretting about an Interest Rate decision with their finger on the enter button that not actual wla is going on. I misspoke, eem, 41, just making sure. Thanks for the house keeping. There we want to get more about one of the stories that weve been discussing. Nbc news confirming to day a especially Counsel Robert Mueller investigating the president for obstruction of justice. Lets get more from our reporter amen thats right. We saw the Washington Post break this story last night. Nbc news confirming it this morning. We also saw just within a few moments from now the president asked about this and the white house shotted questions from reporters attending just declining to respond in any way to a question of whether or not he considers himself to be under investigation. But heres what we know from nbc news as of right now the special counsel rob uert mueller is investigating possible obstruction of justice. He requested interviews with the director of national intelligence, dan coats, mike roth be rogers with the president and he wants to interview the Deputy Director ledgett they have all agreed to be interviewed. The Washington Post sparked a reaction from the president s attorney who spokesman issued this Statement Last night saying the fbi leak of information regarding the president is outrageous, inexcusable and illegal that statement despite the fact that its not at all clear the fbi was the entity that gave this information to the Washington Post last night, not at all clear it would be illegal for people who were aware of this investigation to talk about it. All of that on the president s mind this morning. He issued two tweet this is morning giving his take on all of this saying they made up a phoney collusion with the russian story, found zero proof. So now they go for obstruction of justice on the phoney story nice second tweet, youre witnessing the singling greatest witchunt in american political history led by very bad and conflicted people magg i asked whether or not the white house considered Robert Mueller to be onest bad and conflicted people the white house is not commenting onlt president s tweets this morning. Previously they said the tweets speak for themselves now theyre saying you have to talk to the president s personal attorney on. This they wont take any questions on russia or the president s tweets about any of this right now very buttoned up feeling here at the white house. Scott . What did you make of the president s comments about very good numbers on gdp coming presumably hes talking about the q2 numbers which come at the end of july and are expected to provide a snap back from an ugly First Quarter yeah, i think thats the president being very bullish he is always filled with economic optimism. He talks about the stock market. He talks about gdp he talks about Business Confidence i think thats all can you read into that the president is just very optimistic about where this economy is going right now. Yeah, aemen, thank you. Speaking of the economy, the fed announcing a rate hike moving forward as well with a plan to shrink the Balance Sheet lets bring in richard fisher, the former head of the dallas federal reserve, Senior Adviser at barclays and cnbc contributor. Welcome back nice to see you. Youve been saying they need to get down the road on the Balance Sheet. Now they say they will you must be a happy man this morning. Zblir am that is the last advice i gave to chair yellen and saying your job is to work down the Balance Sheet. I think the way theyve done this this is the reason i think it has no impact on the market, they have been as clear as a bell in signalling what their intentions are and that addendum that came out yesterday, the statement and her press conference, i think made it very clear that theyre going to be very slow, very cautious but as a determined path to pair back on the Balance Sheet, there was a very interesting comment made in that press conference which i havent heard reported or picked up and that was her saying essentially if we need to come back and do more quantity take theive easing if, the economy turns down, then we will have that capacity. They would not have had that capacity if they had not begun the proservice pairing back. The principle qe has now been established. They want to pair back eventually ultimately on the Mortgage Backed securities, thats an Asset Allocation decision but have the capacity to use the treasuries and purchases if they need to if and when the economy turns down and i think you need to remember and everybody on the panel needs to remember we just entered our ninth year of economic expansion. We never had an xpenexpansion in more than ten years in American History and also in 13 tightening cycles since world war ii, in 10 of those for the feds actions tipped the economy over and set a recession ensued. So this has to be very jenltgeny done at this point i think she did a good job yesterday. So how much credit should the fed get among a lot of voices out there that have been critical of the fed for the expansion that you just mentioned and wall street journal today a gentleman by the name after Michael Gapen from barclays, a former fed economist. Zblo the fed has done a tremendous job helping the economy grind its way out of an extremely deep and disruptive recession it generally operate add lone and received a lot of criticism for doing what Congress Asked it to do. Do you have a problem with that statement . Not one bit ill tell you why. Our congress has not given us a budget in eight out of last 15 years. They have done nothing to look, the principle is the fed provides liquidity for the economy and the fuel and fiscal policy, regulatory policy should be what then drives the economy forward. The fed had to act all by itself i play have been a critic as to going too far. The fact is there was no other player in town it was only the federal reserve. Our fiscal authorities disappointed us over and over and over again and coming back to a point i made earlier, despite all this distraction were seeing in washington, remember, we went through president nixons resignation, president clintons being impeached, we still move forward. Were a great country. We need have good fiscal policy and we have to have regulatory guidelines that encourage job creation and uses the cheap money that they provided to good use. So i think thats what this comes down to that statement was absolutely correct. I wonder if youre in the room again, richard, how do you sort of my spirit hovers over the room. Always. Always as it does this set. How do you balance and how do they balance their own economic forecasts with the projection of the trump agenda coming or not or being delayed and how they view their own policy decisions in the months to come . Well, i think one aspect of this is not also been discussed which you is want to have money in your pocket to be able to spend if and km economy tufrnz down it will happen again, were pressing the historic envelope. Maybe this is a different time we could press further but eventually even god hasnt conquered the Business Cycle so you want to have some money in your pocket i would consider that as part of the argument right here. It is a good time. The markets are very accommodative. The ten year rate is trading in the 215 level. There is a lot of interest in our sovereign securities let the market take that in. And meanwhile, youre building the capacity as you build on the caps and wean down your portfolio, youre building capacity to use that portfolio should you have to in a further cycle. And on the short end, member, she spoke about the, janet yellen, about the asymmetry of risk when she spoke a year