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CHARLES: WELL THE G20 KICKING
OFF ON THE LAST TRADING DAY OF
NOVEMBER.
INVESTORS ON EDGE AS WE AWAIT
THIS BIG MEETING BETWEEN
PRESIDENT TRUMP AND PRESIDENT XI
OF CHINA.
WITH THEIR ANALYSIS TO HELP US
UNDERSTAND THE RAMIFICATIONS,
JONAS PHARIS, AND CHIEF
ENINVESTMENT STRATEGIST, ROB
LUNA, AND BUBBA TRADING.COM
CHIEF STRATEGIST TODD HOROWITZ.
TODD, LET ME START WITH YOU.
EVERYBODY KNOWS THE STAKES ARE
HIGH.
HANDICAP THEM FOR US.
SOMETHING LOOKS LIKE AT LEAST A
STEP TOWARD AN ULTIMATE SOLUTION
OR NO SOLUTION AT ALL.
HOW DO WE LOOK ON MONDAY?
>> GOOD AFTERNOON, CHARLES.
THE MARKETS ARE TELLING ME THERE
WILL BE SOME SORT OF A DEAL.
IT WILL BE A HANDSHAKE, LET'S
WORK ON THIS, LET'S PUT IT
TOGETHER.
AS YOU LOOK AT OVERALL EQUITIES
WE'RE CONTINUING HIGHER HERE.
EACH AND EVERY OPPORTUNITY THEY
GET TO RALLY BUT LOOK AT GRAIN
MARKET.
GRAINS RALLIED GETTING TROUNCED
ON MONDAY, THEY WERE OFF ALL
WEEKEND.
EVERYBODY TELL ME AT LEAST THEY
THINK THERE WILL BE A STATUS QUO
WORKING ON DEAL GOING FORWARD
AND NOT WORKING ON ANY PROBLEMS
IN THE FUTURE.
I THINK THAT'S WRONG BUT THAT'S
WHAT IT LOOKS LIKE.
CHARLES: WHAT DO YOU MEAN YOU
THINK THAT'S WRONG?
>> I DON'T THINK THEY WILL GET
ANYTHING DONE.
THAT YOU MIGHT GET A WINK AND A
NOD.
THERE IS A LOT OF WORK TO DO.
THAT THE MARKETS MAY
MISINTERPRET WHAT HAPPENED BUT
WE'LL SEE A SPIKE ON MONDAY,
BASED ON SELLERS AND LACK OF
BUYING WE HAD ALL WEEK THIS
WEEK.
CHARLES: ROB WHAT DO YOU THINK?
>> I THINK THE EXPECTATIONS
CHARLES, NOT NECESSARILY A DEAL
TO BE DONE.
MAYBE SOMETHING NO FURTHER
TARIFFS AT ALL.
I THINK MARKET IS JOCKEYING FOR
POSITION HERE.
I DO THINK IF A DEAL COMES OUT
OF THIS, SOMETHING THAT
SUBSTANTIAL I THINK MARKETS WILL
TAKE OFF.
TWO MAJOR ISSUES HOLDING THIS
MARKET BACK HAVE BEEN THE FED.
WE SAW POWELL BLINK THIS WEEK.
IF WE'RE ABLE TO GET SOMETHING
DONE WITH CHINA, GET TRADE
BEHIND US, THIS MARKET IS
PREPARED TO RALLY IN MY OPINION.
CHARLES: WHAT KIND OF DEAL WOULD
CONSTITUTE THAT BECAUSE EVERYONE
HAS A DIFFERENT VERSION OF
SUCCESS.
FRAMEWORK TO AGREEMENT TO MEET
AGAIN OR TOTALLY COMING TO
CONCLUSION AFTER THIS ONE
DINNER?
>> COMING TO SUBSTANTIAL
CONCLUSION AFTER THIS ONE DINNER
WOULD CAUSE A HUGE RALLY.
I THINK FRAMEWORK IS MORE OF A
EXPECTATION.
ON THE FLIP SIDE, IF THERE IS
NOTHING DONE, IF WE SEE RHETORIC
NOT POSITIVE OUT OF THIS, I
THINK WE GO BACK TO TEST THE
LOWS WE EXPERIENCED A COUPLE
WEEKS AGO.
CHARLES: JONAS, ALL THE RHETORIC
IN THE LAST 24 HOURS HAS BEEN
PRETTY GOOD.
THERE WAS EDITORIAL IN THE CHINA
DAILY, POINT-BLANK, CHINA WANTS
TO CUT A DEAL.
THEY WANT TRUMP TO MEET THEM
HALFWAY.
WE HEARD TRUMP SAY IT TODAY.
WE HEARD LIGHTHIZER SAY IT
TODAY.
WE HEARD A REPRESENTATIVE FROM
CHINA SAY IT TODAY.
EVERYONE, THIS IS THE FIRST TIME
I'VE SEEN SIPS SINCE THIS WHOLE
THING BLEW UP, I'M HOPEFUL.
>> MEETING 40% OF THE WAY AND
LOOKING CHINESE MARKET, ASIAN
STOCKS ARE WEAKEST SINCE THE
WHOLE THING STARTED.
THEY'RE KIND OF PICKING UP THE
LAST FEW DAYS.
DOESN'T MEAN EVERYONE IS RIGHT
BETTING ON THAT, BUT THAT IS
WHERE YOU SEE THE MOST POP IN
THE ACTION.
THEY GOT HIT THE HARD EVIDENT
AND GETTING HIGHEST TARIFFS.
I WOULD EXPECT, IT WOULD BE
CONSIDERED A WIN IF WE DON'T GO
HIGHEST TARIFFS.
10%, MARKETS HANDLE THAT, WILL
NOT CAUSE ANY KIND OF CRISIS.
THAT WOULD HELP THE TROUBLES
GOING ON IN ASIAN MARKETS AND
EMERGING MARKETS BECAUSE OF
THIS.
I WOULD SEE, NOT SEEING BIG
ACTION IN THE U.S. MARKET.
WE TOOK A HIT ON OTHER THINGS.
RATES GETTING TOO HIGH, TECH
STOCKS, BUT NOT THE TARIFF.
CHARLES: THE TOP EIGHT WORST
SESSION THIS IS YEAR ONLY ONE I
CAN TIE DIRECTLY TO THIS WHERE
REST, HIGHER RATES, WHENEVER THE
FED SPOKE.
YOU KNOW I FIND IT INTERESTING,
TODD, YOU THINK THE MARKET WILL
POSTIVELY REACT BUT THAT WILL BE
MORE OR LESS A HEAD FAKE.
WHAT DO GET SOME SORT OF
COMMUNIQUE FOR NOW THE NEW
TARIFFS IMPOSED AT BEGINNING OF
NEXT YEAR PUT ON I.C.E.?
I THINK JONAS IS RIGHT.
THAT IS THE KEY THING MARKETS
ARE PROBABLY LOOKING FOR RIGHT
NOW?
>> LISTEN, CHARLES I THINK THERE
COULD BE SOME POSITIVE NEWS AND
COULD HAVE SOME POSITIVE
MOVEMENT IN THE MARKET BUT I
THINK THE MARKETS ARE OVERDONE
ANY WAY AS YOU KNOW, AND I THINK
WE'RE HEADED LOWER.
INTEREST RATE WILL GO LOWER AND
FORCE FED TO RAISE INTEREST
RATES MORE THAN THEY WANT.
WE'VE SEEN THIS MOVIE BEFORE.
I ALWAYS GET A CHINESE DEAL
WOULD BE DONE.
IT IS NOT A CONCERN ALWAYS
REFLECTED IN THE PRICE OF
GRAINS.
AT THE END OF THE DAY I DON'T
THINK ANYTHING WILL REALLY STOP
THE MARKET GOING LOWER.
I THINK OUR NEXT BIG MOVE IS
DOWNSIDE, A TEST, TAKE OUT THE
MOST RECENT LOWS, WE COULD RALLY
THROUGH THE END OF THE YEAR BUT
I THINK FIRST QUARTER WILL BE
VERY UGLY NEXT YEAR.
CHARLES: ROB, A LOT OF ANXIETY
LAST HOUR OF TRADING WHETHER OR
NOT TO GET LONG.
IF PEOPLE DO, ARE THERE CERTAIN
AREAS YOU'RE LOOKING AT?
>> CHARLES, THE OTHER GUEST WAS
SAYING YOU WANT TO BE IN STOCKS
LIKE ALIBABA.
YOU WANT TO BE IN STOCKS LIKE
TENCENT.
THESE STOCKS HAVE BEEN
ABSOLUTELY CRUSHED.
EM, HAS BEEN DEMOLISHED WITH A
BEAR MARKET.
TECHNICALLY WE'RE PUTTING HEAD
AND SHOULDERS BOTTOM.
THOSE ARE THE NAMES THAT LEAD.
IF YOU LOOK AT U.S., LOOK AT
NAMES UP TODAY.
SALES FORCE REPORTED GREAT
EARNINGS A SOME AN, THAT WILL