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tv   Countdown to the Closing Bell With Liz Claman  FOX Business  February 9, 2018 3:00pm-4:00pm EST

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hour. so we'll see whether or not we can close out the week in positive territory here on this friday afternoon. a lot of investors don't like to have to sit with these positions over the weekend, so liz claman is going to walk you through it. do not go anywhere. liz has got you covered. liz: walk or run, trish, i mean, who knows these days. [laughter] we just ran in a circle, turned around, smacked into a wall and then bounced. it's a reversal of or fortune that literally just happened a couple of minutes ago. the dow swinging at breakneck speeds, we're live from the floor of the new york stock exchange. here it is the friday of the week that was one of the wildest in history. the dow right now turning negative for the moment and then straddling between up and down here, we'll just call it an extreme oscillation. but i'm going to call it flat for the second, and the russell 2000 up 3, the s&p 500 up 2.6 points or just a fraction of a percent. this wild swing in the market, it's the sixth day in a row that the dow has swung more than 500
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point process the day's highs to the lows and back up again. today's move alone, 849-point swing. we were down more than 400 points about an hour ago, and here's what happened. the s&p dropped to what's called the 200-day moving average. this is a so-called major technical indicator that stretches out over 200 days as a trend. when you drop to that and hit it and go below it, that kind of makes the markets do squirrely things. it triggered a move, and the move was to bounce up higher. people saw that lower level, they swept in -- at least some of you out there -- and started buying. but both the dow and the s&p 500 we do need to remind you at this moment remain solidly in correction territory. that means it's more than 10% off the highs of january 2016. that was a record high. the nasdaq is just slightly below that at the moment. we're watching it tick by tick here. so far the u.s. markets shedding
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some $3.2 trillion -- this is on paper -- over that time, and it's according to the wilshire 5000 index which doesn't even have 5,000 stocks anymore, but never mind, that's a whole different story. globally, we're talking about $6 trillion this week alone shaved off all markets. take a look at what the major indices are doing at this hour. i show to you, i know we keep looking at it, and i know that we have the ticker at the bottom, but the dow jones industrials has been behaving in very interesting -- let's be nice about -- way this whole week, and that is jumping up and then seconds later jumping down. looking at nike, microsoft, amex, ge is one of the top performers. do you remember what it was doing yesterday exactly at this hour? it was down more than 4%. we do have ge moving up off the floor at the moment, and we also have am-ex, a nice move for nike jumping 3.25%. leading the s&p 500, mattel,
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invidia which is, of course, the stock du jour of the year, certainly. the graphic chipmaker just a win overall over the -- winner overall over the past several months, at the moment moving up off the floor by five percentage points. dollar three, up four and two-thirds percent. under armour up to $13.59. the energy sector cannot seem to get itself unstuck out of the oil patch here. still weigh on the s&p 500 at this hour, it's currently the worst performer. this after oil settled at $59 and change. so below that $60 threshold. it's at its lowest level sinces december 22nd. in fact, i think i have the exact number here, because i like to get you the exact number. $59.20 is where oil closed for the week. we're looking at the after market right now, but the big oil names, chesapeake leading the downside, down 5%. conocophillips down 3%,
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apache down by 2.5%, bp down 2%. as we look across the board, most of these names are, indeed, lower. why? let me just also say 26 new rigs were added into the rig count which always comes out at 1 p.m. eastern every friday. i don't want to get too wonky here, but that mean means the oil patch is getting excited and thinking let's fire up these rigs end again. that means more supply, sometimes the stocks go down because they think supply up, price down of oil. that's what happened today. dow jones industrials down 23, lower by 23. folks, the dramatic selloff in u.s. equities spilling over, you heard me say $6 trillion off the global markets? i wanted to dig into this. stocks have lost more than the $6 trillion, but which, which areas? let us check in at the moment on some of these countries, how some of the foreign markets did. now today alone to the floor show, we've got the traders at the new york stock exchange and the cme group, and as we look at all of this, you can see that -- sorry, can we go back to that as
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we go to the floor show? i want to put that graphic back up, thank you very much. shanghai's index fell 4%. then you also have the other chinese stock market which tanked too. europe's stock index down the least, down 1.5%9. but look at canada, it got smacked, the nikkei down two and a third, that's just more today. japan's nikkei, guys, down 8% over week, and then the shanghai index also got clipped by 8% over the week. so not a good picture, tim anderson, globally. what do you think happens monday? let's spin it forward, because it's been a very tough week. >> you know, monday is anybody's guess, but i think what the market is really going through here is a little bit of a shift of a paradigm that we've seen for the last decade really of zero or near zero interest rates and very, very low volatility. and wall street delivetives
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operations -- derivatives operations have created numerous products to enhance investors' returns under the idea that we would have very low volatility for an extended period of time. that was kind of blown out the window this week. and what we've got going on is an unwind of just a myriad of products that have been created in the derivatives world that are no longer really working in a hire volatility environment. liz: in fact, tim, did you see that e-trade was no longer allowing its customers to borrow money on the margin to invest in vix etfs? >> i believe i've heard that about a couple of other large discount brokers also. liz: what does that tell you? >> that tells you that these products are, a, leveraged by design so, b, buying them on margin would just exacerbate the leverage, add to the volatility, and in a lot of cases, frankly, people that are buying these
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products really don't understand how they work. liz: alan, you've watched volatility from the floor of the cme in chicago, and that seemed to be not necessarily the trigger, but the victim, correct? what would you say was the trigger that started volatility going haywire? i guess you'd say last friday. >> i would say just everybody was on one side of the trade. the boat tipped over. everybody was looking for volatility continue to decline, and eventually it caught everybody short. that is a classic short squeeze, what we saw on tuesday. you saw the vix spike up to $50, but it actually closed lower. so some of the worst, if you look at it numerically, is over as far as the fear factor goes. actually, we were lower in the vix just a little bit ago. you talked about that turn around that we saw at the 12:30 hour, my time anyways. we went down in futures contracts, the s&p traded over my shoulder, we went down from the lows of tuesday night, and we tested those but did not go
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lower, so then you saw a reversal, and we rallied 70 points straight up, the positive. that's how bottoms are made. now, we've got to close positive on the day, and there's still a lot of time left in this session, and you know how it works this last hour, but that could be the beginning of a bottom. the vix slower and -- liz: money is fungible, guys. if it leaves one area, it has to go somewhere else. >> it moves. liz: absolutely. tim, where did you see it moving? >> well, you know, the utilities are having a pretty good day today, and they have been an underperformer for most of the year, frankly. the rates are acting well, some of the other high-yielding stocks are acting well. clearly investors still have an appetite for yield, and as they can get yield in a lower risk product, that's where a lot of the money is going today. liz: yeah. of you know what? we brought up utilities the day
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before yesterday because they weren't moving, and you would have thought they would be. great to see both of you after a really wild week. thank you very much, tim, alan. >> thank you. liz: if it's true that one of the triggers at least of this crazy week had to do with the ten-year yield spiking at one point -- twice, i think, twice. yesterday and monday to 2.88%. today we do have it moderating just a bit. it is slightly lower off those levels, but you've got to ask yourself which sector would supposedly benefit most from that trend of higher rates? it would be, what, the financials and the banks and the brokerages? why are they collectively down 8% this week, and what does that foretell for any of you out there who want to own them or were thinking of buying them? famed wall street analyst dick bove of the vertical group has a very pointed answer to that. why would the very group that's supposed to move higher as rates
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move higher drop that much this week? >> well, first off, because rates moving higher are not necessarily positive for that group. in other words, you know, you've seen over the past, well, from when the fed started hiking rates in the third quarter of 2015, the fed funds rate is up, what, about 132 points, right? liz: yes. >> basically, if you look at the top eight banks in the united states, three of them have either down net interest margins or flat net interest margins. not one of the other five which showed an improvement got as much as one-third of the increase of the federal funds rate. so, in other words, when people look at banks, they see, gee, interest rates are going up and, therefore, the banks are going to charge more for what they're selling, but they don't stop and say, well, wait a minute, that's going to cost more money for what their raw material is, the money they take in. and, secondly, they may not increase the interest rates on what they're selling. liz: right, right. >> and they didn't.
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liz: well, they didn't. >> the net effect is the margins got squeezed. so the increase in interest rates people say automatically means higher bank profits do not automatically mean profits -- liz: okay. would you buy them here? they're on sale, nick -- you would not? >> no. liz: why not? >> we're dealing with a significant change in the structure of the financial system in the united states. right? for the last eight years, you know, since 2010 we were in a financial crisis is, and because we were in a financial crisis, the federal reserve, the government, formers, etc., everybody -- foreigners, etc., everybody was subsidizing the flow of funds. they were printing money like crazy, and they were driving the cost of that money to below the rate of inflation, negative real interest rates. the football crisis is over -- the financial crisis is over. they're not going to pump money anymore. their not going to keep interest rates below the cost of inflation. the net effect is -- liz: what about, i was only
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going to say what about companies in the financial space that should benefit from increased volatility or increased trading? the cme gets a commission on every volatility trade out there, doesn't it? or what about the charles schwabs of the world or the td aher trades which have certainly seen activity going up? my tellty? >> yeah, you've got me on those, because i don't follow them. if you're looking at the morgan stanleys of the world or the goldman sachs or the jpmorganings, you know, they have an inventory cost. and as interest rates go up, the value of that inventory goes down. yeah, they get a benefit, but the fact is the cost of the inventory that they have is going down so that they're not seeing a big increase in earnings as a result of the increase in volatility in the market. in other words, bottom line if you want to make money in banks or, you know, financial companies, it's because they're selling more of something. and the something that they sell
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are loans. and if they don't sell more loans, they're not going to show an increase in earnings, and their stocks are not going to do well. and so far they're not selling a heck of a lot more loans. liz: we have a very long bull market. it is now in its ninth year. growing a little gray around the temples, dick, or do you think that the bull case is still in place? bull or bear? >> well, it depends upon if you're looking at the economy, i think the economy looks terrific -- liz: weow the economy's totally -- we know the economy's totally separate from the stock market. economy's greater, right? >> you're exactly right. you're right on the mark. the issue is, is money going to be there to fund the deficit, to fund the growth in the economy, to fund the recovery in europe and the likelihood is that it won't be. the net result is there's going to have to be much higher rates, and that's going to result in, you know, difficulty in financial, in pricing financial assets. liz: i know it won't surprise
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you, dick, but while we were talking the dow went from being up slightly to down 100 points. right now we're down 49. i have to say it's been a wild week, certainly. i haven't been in the business as long as you, have you ever seen anything like this? in this specific prism, through this prism of wild trades within seconds of each other? >> yeah, well, what seems to me is happening is that each time the buyers come in and see value and start to acquire shares, the sellers wait until the market gets up a little bit, and then it hits them. and if you take a look at the -- you would know this better than anybody -- if you look at the last 15 minutes of trading, you can see what happens the whole day, right? liz: yeah. [laughter] >> in other words, people wait until that last 15 minutes. in fact, even to the last minute, and that's when they dump stocks if someone else has pushed the prices up a little bit. liz: yeah, yeah. >> so the volatility is a function of the fact that the
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buyers see the economy doing well, interest rates being low, inflation under control, and they want to buy stocks. liz: okay. >> the sellers just want out. liz: dick bove, yeah. tell varney that. last 15 minutes is the whole day. [laughter] we're always joking with each other. it's my hour, no, it's my hour. dick bove, thank you so much. right now the dow is up 26. s&p up 5. could all change in the commercial break? and let me guess, at some point this week some of you if you didn't outright panic about your portfolio, you thought a little bit about it, right? with the closing bell ringing 45 minutes away, don't beat yourself up if you got a little nervous. even hedge fund billionaire bobby axed rod from the hit series billions. coming up, we've got a fox business exclusive with the real wendy rhodes, the hedge fund
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whisperer reveals what she's been telling people to do this week. and robots, are they really in charge of this market now? stay tuned, we're coming right back. ♪ ♪
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♪ ♪ liz: we're about nine minutes away from a lot of hedge funds
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coming in and doing their redemptions or blasting for the -- balancing for the week, so we could get crazy here, but right now the dow's up 54 points. now, some of you learned a new word this week while dropping the spikes and dips in the markets, algos, right? let me show you what some people say algorithmic computerized trading accelerated this week. 260 points 0 seconds late -- 30 seconds later, five minutes later watch the dow crawl back from session lows, even getting to losses of just 50 points, right? by 9:37 a.m. by 9:43 we're in the green, albeit briefly. this hyperspeed volatility has some people questioning whether algos are at the heart of these very fast-paced swings. yesterday vinnie viola played defense of the algos which i
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said might attract the attention of congress. we know congress loves to regulate. here's how it went down. you may have congress breathing down your back, vinnie, and coming in with some type of regulation because you know the government always inserts its nose into certain things. >> well, we welcome finish listen, we are leaders in regulation, you know my background is as an exchange leader and a regulator. we've always embraced regulation, and i think we've helped in any way we can to educate around these market structures. but quite frankly, liz, i have to say i'm disappointed in you and this interview because you know better. these markets are way more efficient -- liz: you can be as disappointed as you want in me, but don't be surprised -- because i've seen it happen before -- when congress looks at something and tries to find a villain. >> never before have investors been able to access the market with as many specific market
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structures and instructions. liz: right. >> so that could say, hey, i want to trade at this price and only at this price. and i don't want to trade in a flat technology environment. liz: so are algos the white knight here, the villain or maybe a little mix of both? let's bring in the experts, chris nagy is an expert in routeing technology known as best execution, and seth marin this is the ceo of liquid net which manages $15 trillion in trades for clients. chris, let me get to you first. do you take a side in this? do the high-frequency guys have some role in the volatility we saw this week? >> so, liz, as you pointed out, the markets have really whip sawed over the past couple of weeks, so let's talk about the good things that have happened. back when we had the flash crash in 2010, we put in a number of plumbing fixes or infrastructure fixes into the marketplace. and by all accounts, those have
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really held up with the volatility. so we're not here talking today about stub quotes or flash freezes or quote failures or even busted trades. and is that's a big, underrated win. but what's been really bizarre is how this market, these markets have been acting. and i think certainly algos footprints or fingerprints, rather, are all over this market, particularly if you look at monday's trading where you saw that huge 600-point drop in a matter of five minutes followed by an equally impressive rebound. it certainly leaves some suspicion. the problem is, is that we don't really have an audit trail in the markets yet -- liz: okay. >> -- to be able to accurately find out why this happened or who's to blame -- liz: okay, hold that there, hold that there. you just said the algos have their fingerprints all over this. what we decided to do with this interview is, seth, we're going
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to wait for a commercial break and see what changes. the dow is up 91 points, and when we come back, we'll get seth's side of this so we can see how much movement we've seen in this commercial break. we're talking algos and computerizedded trading live from the fluor of the new york stock exchange. -- nor of the new york stock exchange. coming right back. the alerian mlp etf can diversify your equity portfolio and add potential income. bring amlp into the game. before investing, consider the fund's investment objectives, risks, charges, and expenses. read the prospectus carefully at (daniel jacob) for every hour that you're idling in your car, you're sending about half a gallon of gasoline up in the air. that amounts to about 10 pounds of carbon dioxide every week.
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♪ liz: okay. gang, when we went to the commercial break the dow was up 91 points. now we're up 96. calm? during this four-mint commercial break we took, the dow fell 50 points off the 91. it jumped up more than 100. this is moving all over the place. we bring back our fests guests. seth, you heard what chris had said, that algorithms had their fingerprints all over what has been going on this week with the wild swings. what do you say to that. >> at -- algorithms is the way
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markets have gone. that is too broad a category. that is like saying credit cards gone electronic their processing. the market structure is changed so dramatically. during january we had $25 billion, coming in, flowing in to s&p etfs. in the last four-days we've seen all of that go out. so a massive concentration in relatively few assets that when it foes up, it is wonderful but when it goes out there is a relatively tight door. and that creates a lot of supply demand imbalance. that is exacerbated by some players in the market that use this technology, like high frequency traders and that is why we see such massive swings up and down. you can't do that technologically. you can't do that manually. not human beings trading. it is absolutely computers but a certain type of trader that is
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benefiting from the volatility. you saw their stock went up 25%. liz: i sure did. we showed that yes. vinnie was saying, well, the perception is that the big al go traders and high frequency guys are benefiting. nothing wrong with that our theme is power to pros -- prosper. watch out. regulators will sniff around if it gets ugly. we're on compressed time frame. chris nagy and seth marin. we appreciate it. true, tight doors here. one of the traders say you take the stairs up and elevator down and too many people trying to get out of the he will have it tore doors. send it back to ashley webster. you're watching intraday moves as well. >> all day. you take a breath. i will talk about a couple stories here. move over alexa. apple's virtual assistant homepod entered the building.
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apple touting the $349 device. it is better than its rivals because it has superior speakers. you would hope so. preorders did sell out ahead of the in-store launch. apple shares up slightly. that is apple. amazon on the verge of another battle with fedex and ups. "the wall street journal" reporting that the e-commerce giant is preparing to launch a new delivery service for third party merchants. shipping with amazon, swa. the new service will begin in los angeles the next few weeks. it will expand to more cities by the end of the year. amazon though today trading down, as you can see, down 1 1/2% on friday's trade. we'll have more with liz claman live from the floor of the new york stock exchange when "countdown" comes right back. ♪
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♪ liz: 26 minutes left to trade for this crazy week. okay, as you see, the dow is now up 180 points. the s&p up 21. what is driving at least some of the indexes here? nvidia. this is the superstar graphics chip company i referenced at the top of the show. we need to revisit. at least 20 wall street brokerages have now raised their price targets on the chipmaker's stock. you've been looking at this. >> n individual yow! is great performer on major averages. nvidia. it is heavily traded. it's a top performer. up 6%. while the market is up about half of a percent. they came out with quarterly numbers. beat on revenue, beat on earnings per share. you have the demand surging for nvidia chips. we're seeing gamers,
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cryptocurrency miners, they're willing to pay up three times the price. thatthat is good sign. liz: nvidia is in that space. >> it surged more than 10%. at one point they said it would be be best day since. it is winner. we have other winners to watch, intel, advanced micro and micron in the same group nvidia crushed semiconductor index the last year. liz: it has been more than a year. nicole, thank you very much. you can bet some big hedge fund guys and women who have been anxious to take a bit of a breath if they're long. all these crazy market swings over the past week are enough to make most seasoned, so don't beat yourself up here, even the most seasoned traders panic. who do they turn to keep them from lose are their mind and money. in fox business exclusive, joining us now, a woman,
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character wendy rhodes on the show billions is based. prescription coach performance architect, architect of market mind games, we'll call her the hedge fund whisper per. denise shults joins us. tell me what your week has been like? >> well, a lot of panicked calls, it's true. we like to think these hedge fund guys are super men and they don't react. the truth is they're human. the truth is they do. like for example, in one situation a hedge fund i work with here in new york they were like, oh, my god, analyst, call can we have a call. you have got to stop him from doing this stop from making decisions. he is doing crazy stuff. we took him through what the hedge fund manager is really feeling. is he panicking? why is he really panicking? i think i got two or three poe proposals to work on this weekend i didn't know on monday. yeah, they panic too. liz: what do you tell them? because when people get panicked, they make incorrect
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decisions and mistakes, do they not? how do you get a seasoned trader who thinks he or she knows everything, i've been doing this forever. this is serious. the market is dropping, now it is jumping, what do you say to them? >> well, you will find this amazing what are you feeling and why are you feeling it? there is huge myth out there, emotions don't have anything to do with it, you have to take emotions out of it. the truth is emotions how people make decisions regardless what we think. had hedge fund world conviction a emotion. why you unpack this feeling. are you really going to lose the fund, chances are if you're in the vix products probably not but you might feel like you are. we help them pull that apart. that is data set they never work with. when they work with it has huge benefits. liz: we're coming up on an end, much welcomed end what has been certainly a difficult week for some people. what did you tell a client who
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calls after monday, where we lost more than 1000 points? >> i had some good calls on monday i had people who were killing at the beginning of the week. tuesday when we rebounded then they weren't prepared to pull back again. they had difficult ends of the week. that has been my actually client's experience this week. of course i would like to believe that is the thinking about what they felt and understanding their confidence and convictions levels. but volatile got to be too much. liz: it was too much for some people because it spiked the 50 level. it is in the 30s now. denise, i'm sure you have a busy week ahead of you. thanks for joining us. >> thank you. liz: she is the one, if you watch the show, "billions," wendy rowe, the hedge fund whisperer. that is the crazy stuff. you get real world excitement. denise, thank you very much. some of the biggest names on wall street calling the market trajectory, talking about the one leading up to this week, up,
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up, up, a fomo rally, aka, fear of missing out and eerily silent through this volatility has been equities top cheerleader donald trump, the chief executive of the united states of america. let me get to charlie gasparino. yeah, weighs cheering it on. every time that we had a one of those 99 record closes of the dow, he got excited about it, no problem with that where do you see the problem? >> i think he got excited about it every day. he deserves some credit for the market going up obviously with his fiscal policy but, a lot of people are trying to figure out why the market went up so much since his election and why it is starting to crash, exempt for today, why it has been crashing lately or being least volatile. tough look at we're talking about etfs a lot. talking about program trading but the, some of the interesting, sort of money that flowed into the market, particularly in january was from small investors. as you know small investors also
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known as retail, they usually buy at the market tops and, sell at the bottom. you know what i'm saying? if you look at it with two charts. throw a merrill lynch chart up there if you can and this will tell you, show you, just how much, look at the spike in january of retail flows into equity funds. it is, from merrill lynch, i read this report, merrill lynch said it is near historic. like one of the top weekly flows, that one week in january. and then there is one other thing that is an interesting barometer of how much retail, small investor money came in. it is td ameritrade's share price over the past year, if you put that up. it is worth looking at. now td ameritrade is a discount broker. if you look at it over the past year, is that yearly chart? i can't tell. liz: that is one week. that is one week. >> if you get the yearly chart, there you go, bingo, except for recently the stock was up pretty
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dramatically. what is td ameritrade? it is for the average gal and guy. td ameritrade, that is discount broker buying stocks. they were doing a lot of that over the past year. that is the indication, that is my money indication that this, market was way overbought because retail was getting in with both feet. now why did retail get in so much? they didn't want to be left out. i get that but guess who was touting this market. it wasn't journalists. a lot of journalists were talking about how it is overvalued. i think it is long-term good. we were talking about what could stop the market. the onefy that said everything was rosy was president of the united states and when i talk to traders they say he deserves some of the blame for retail getting caught in this thing. we should point out there is a ton of retail selling out. again, another possible indication. selling as market is recovering. i'm telling you when you talk to traders an investors, when they talk about a bought that was out
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there pushing people to buy stocks, probably when they were overvalued, before the sort of correction that we've had lately, we talk about the president. i'm not, this is, i mean, i think there was one person who is out there every day saying how great markets were. it was him. >> can i go back to the housing crisis, leading up to it before we saw implosion. you saw the treasury secretary hank paulson and president bush constantly saying the housing market is healthy and stable. it is american dream and then poof. presidents should stay out of it. let the market moves speak for themselves. 99 record highs you have to get president trump credit for that. >> don't get involved in stocks. i don't think he knows a lot about the stock market. you know, i know, they crash for reasons -- there was mini crashes in the '90s for no economic reason. they crash, they get overvalued. things that happen. stick to the economy.
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economy is getting better. sounds like something you can brag about. liz: when they turn, they turn at rapidity after horse in full gap lop. we're up nearly 300 points. we're coming right back. don't go away.
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liz: when we went into the commercial break, we were up 300. the new high up 455. we jumped 155 points in couple seconds. what do we have here, 456. now look, we're up 388. i spoke to art cashin who walked by, in in charge of floor operations here. he told me a billion, 1.2 billion to buy on the close. that is a bullish sign, that appears to be reason we're moving to the upside right here.
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not so for oil. caught in the cross-hairs of all the downdrafts and big moves in the markets today. oil falling nearly 3% today. this is the after-market at the moment. we are below $60 a barrel. we're doing another floor show. we have blown out all the commercial breaks. we do it going down. we're doing it going up. jeff flock, ira epstein, and charles payne is with us too. jeff flock, give me a sense of oil first. all the enat that -- integrated oils were moving down. >> below 59 during the session. we got as low as 58.07, liz. i think mainly as a result of production issues. got news from baker hughes today. al and i think number of 26 rigs online in the u.s. that is great. we have total of 791 rigs working, it was the largest increase in april of 2015. that is great news for our production. it is great we have more people
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getting more oil out there but that has an impact on price. what can i tell you. liz: exactly. that is why i challenge it. because you have start to see too much supply. you start to see some of these guys go under. although they're clinging to it, aren't they, ira? broaden this to the entire market at the moment. what kind of behavior do you expect to see on monday? >> more volatility. liz, you left the bull market straight up pattern at the end of january and now you're in volatility. markets don't go from bull market to bear market. they go from bull to correction. then make a decision, will the bull resume or the will the market get into a bear phase? you're in that middle area right now. as charlie said just before, a lot of new money came in in january. money that wasn't ready for this kind of break. they're probably getting out at exactly the wrong time. liz: charles, you know what ira just said is 100% correct. we are now, while still down for the year, out of correction
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territory. dow is down 8 1/2%. but it doesn't mean not this moment today, but overall from the highs. we're not down 10% anymore. we see a big move to the upside of 500 points for the dow. what do you see from your clients and people we talk to? >> i got a little more aggressive this morning. i based it on behavioral analysis. to have a rally on a friday is pretty impressive most of the time. to have a fried on rally like today in midst of all things we're going to is phenomenal. 24,200 was the magical number. if we close above it, i think it is great. i get very aggressive north of 25,200. i think the then the smoke is cleared. all of my work is based on fundamental research. i know what i want to buy, liz. it is just a matter of charts are useless when the market medicals down like this except to the upside and behavioral analysis. a lot of people sold i think it
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is found north. i disagree with the experts. i like when president trump talks about the stock market. the average person need to know they can buy a stock at company or restaurant they frequent and hold it for 20 years to pay for their kids college tuition. we are myopic. look at it second to second. no one champions the stock market for people over fly over country. people come on tv, no, don't doubt it. doubt it because it reflection of american greatness. i hope too many people didn't shake out. it will be up for the year and pretty soon people will being kicking themselves. liz: what is it it brad? 1,000 -- 1021 point swing today for the dow. new high up 521 points. we have less than seven minutes to go, jeff flock. you've been with traders all day long down at the cme, i should remind people the futures largest trading pit. you have all kind of people making all kinds of bets.
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where did you see the flow i guess last hour or two? >> last trader i talked to said he saw a double-bottom. if we close positive today. he thought we were done and we're up from here. since the vix traded across the street here at cboe, the vix is down five points today, now below 30, which as you know, vix has been pretty volatile itself. liz: wow. >> that is also got to be a good sign. liz: 469 points to the upside >> i'm looking at market-on-close orders. we have a few minutes to go. not far off session highs. market to close orders, $2 billion, notionally to buy. that could get pared off. that is a net of the buys and
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sells. so big picture, we are seeing buy orders. buy orders for for the, for example. this, sr. to the s&p 500, which could mean we're going higher. as you know, we have five minutes left. that doesn't necessarily hold true. but we are seeing a buy orders, two billion notionally for the buy on the sell. liz: exactly five minutes, five minutes to go for trading. ford, by the way i'm told, dipped into bear market territory. >> we've seen a lot of people buying into ford though. liz: it could be a buying opportunity for some stocks you have been waiting to be on sale. nicole, thank you very much. gang, let me press a reset button with a two minutes left here. dow up by 346. craig johnson, research strategist at piper jaffray. craig, i would like to start with you, because i would love to know what your best trade was this week? how about that? >> well, liz, our best trade
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this week was really apple. here is a great stock that has been a relative outperformer in all of this volatility and it has been really go-to place for a lot of institutions i was talking to. they are taking profits. a lot of technology names are extended above 40-week moving average. repositioning into some of these names. apple is one of our better names. relative trade and anance absolute. liz: that is the thing. you look at moments you think you are catching the bottom. there may be a another day we have 600 point drop after the 1000 point drop which what we saw. doug, how are you advising everybody on your team to behave during this time? >> patience is the big thing. keeping big picture in mind. at the end of the day retail investors don't have a lot of advantages over. two of the greatest advantages are heim horizon and generally
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lack of leverage. your hand is forced. go through periods of volatility, inevitably follow periods of low volatility, you can't squeeze up forever. you get certain periods of volatility. doesn't mean you have to do anything. our biggest bit of advice, remember the big picture. the big picture, equities are cheap. bonds are expensive. the appropriate catalysts are part of equities. we think this bull market has several months if not years ahead of it. liz: i'm glad you said that. charles, charlie gasparino earlier in the program had shown bank of america merrill lynch got concerned because they saw from lipper fund inflows and outflows, two weeks ago, $100 billion of money came into the market, into stock fund. well, this week it looks like we've seen record outflows, $23.9 billion, that came out, i guess last week. right, from now until then. so that is the slower, dumber money, correct? everybody needs to take a breath
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here, do they not? >> absolutely. i saw that coming. i talked about it on my show before the meltdown. could you see a deliberate shakeout of so-called weak hands. i will say this, everyone is saying market is on sale but not every stock. when you were talking about ford, ford has been executing miserably. people have to watch the show need to say themselves what stock i owned just missed corporate earnings and was down anyway. those are ones you bite the bullet on so you have cash to buy winners. we know winners. they have already reported. they have given us amazing guidance. now we get them cheaper. first move for a lot frozen, hey it is oversold. sometimes it is oversold because fundamentally driven, you have to bite the bullet, put that money back to work. liz: craig, your recommended equity piece here is at the lowest i understand you have had in 10 years. what will trigger you to get back into this market with one minute left? >> one minute left. so, liz, we reduced recommended
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equity exposure from 95% to 85%. we did this in about the 10th of january. charts were going parabolic. no question the fundamentals in the economy is doing great. parabolic stocks end in one way, not a time correction but price correction. we still think there is more left to go before ultimately schick this out. this market has been trading very, very technically. this is just a bounce of the 200 day moving average on the s&p. until we get more evidence it is just a relief rally. liz: doug, give me the last 20 seconds, advice for people watching as we go into the closing bell. >> advice would be just this kind of volatility is expected. [inaudible] [applause] bull markets need to have certain bases and this is what we're doing right now.
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liz: just need a little air let out of a growing market bubble. [closing bell rings] football, you name it. another flash day, but looks like we're moving to the upside by 311 points. that will do it for quite the "claman countdown" week. melissa: wow, whiplash on wall street as stocks make more dramatic moves capping off a wild week of a ton of volatility. the worst week for the dow and s&p in more than two years. we've seen major comeback in the past half hour. we were up 500 points a couple seconds ago. david: it changes with a flash here. melissa: yeah. looks like we'll be up 334 on this session after experiencing more than 1000 point swings again today. all three major averages ending the day up. i'm melissa francis. david: you know, i just have to break for a second here because you mentioned something, when i came on. the quants are making out like bandits.


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