SEE MARKETS PLUMMET.
CHARLES, BACK TO YOU.
CHARLES: GERRI, THANK YOU VERY
MUCH.
JOINING US FROM BUBBA TRADING
TODD HOROWITZ.
DR BARTON IS STILL WITH US.
YOU TWEET AS MUCH AS I DO DURING
COMMERCIAL BREAKS.
TALK ABOUT YOUR THOUGHTS ON THE
ACTION SO FAR?
>> I THINK THE ACTION WAS
PROBABLY PRETTY MUCH EXPECTED,
CHARLES.
BASICALLY IF YOU FORGET ABOUT
EVERYTHING ELSE THE MARKETS HAVE
BEEN IN WIDE SWEEPING
CONSOLIDATION ABOUT 10 WEEKS
LEARWE GO THE BOTTOM, LOOKS LIKE
WE'RE GOING DOWN, BOOM, WE GET A
BIG RALLY.
YESTERDAY'S FAILURE TO BREAK
ABOVE 2820 IN THE S&P SIGNALED
THERE MAY BE TROUBLE.
WE CAN BLAME IT ON TRADE WARS,
CAN BLAME IT ON ANYTHING WE
WANT, END OF THE DAY MARKETS
DIDN'T BREAK OUT, SELLERS CAME
IN.
THIS IS BIGGEST TIME OF
CONFUSION FOR TRADERS AND
INVESTORS WHEN MARKETS ARE
CONSOLIDATING.
I THINK THAT IS WHAT WE HAVE
HERE THE I DON'T THINK IT HAS
ANYTHING TO DO WITH TRADE WARS.
THERE IS OVERSUPPLY OF SOYBEANS
TO BEGIN WITH.
THEY ARE MUCH HIGHER THAN THEY
WERE BEFORE EVER STARTED.
I DEAL WITH FARMERS EVERY DAY.
THAT IS PART OF WHAT I DO.
I THINK NOT AS BIG OF A DEAL.
I THINK MARKETS SHOWING PRICE
ACTION.
THAT IS REALLY WHERE WE STAND.
CHARLES: THAT'S A GREAT POINT.
LET'S TALK ABOUT IT.
YOU'RE A TECHNICIAN.
I WILL USE THE DOW.
I SAID LAST WEEK UNTIL WE GET
THROUGH 26,000 ON THE DOW
ANYTHING CAN HAPPEN.
WE'RE MAKING A SERIES OF LOWER
HIGHS.
AND SO THAT WOULD MEAN THAT
CONSEQUENTLY WE COULD RETEST THE
BOTTOM AGAIN.
IS THAT A SOUND THEORY?
>> I THINK THAT IS A SOUND
THEORY.
I WOULD BE SURPRISED IF WE TEST
OCTOBER'S LOW FROM MY WORK,
CHARLES, BUT FROM TODD'S POINT,
THAT NUMBER ON THE S&P, 2800,
26,000 NUMBER ON THE DOW THAT IS
A REALLY KEY SPOT WHERE ALREADY
TURNED AROUND TWICE.
WE WERE JUST A LITTLE BIT LOWER
THAN THAT SO THE MARKET IS
SHOWING A TINY BIT MORE WEAKNESS
THAN I WOULD LIKE BUT AGAIN I'M
NOT SEEING US GO BACK TO TESTING
THOSE LOWS.
CHARLES: ALL RIGHT, TODD, OTHER
ISSUES THOUGH, RIGHT?
FINANCIALS, SOMETHING IS WRONG
WITH THE FINANCIALS.
YOU KNOW.
THE YIELD CURVE.
LISTEN I KNOW THERE IS A LOT OF
HYPE.
I KNOW THE YIELD CURVE IS GREAT.
IT CAN PREDICT A RECESSION TWO
YEARS OUT.
LIKE ME TELLING YOU THERE WILL
BE A MASSIVE SNOWSTORM IN THE
NORTHEAST NEXT TWO WINTERS.
BE THAT AS IT MAY WALL STREET
REACTS TO THIS STUFF, DOESN'T
IT?
>> THEY REACT A LOT.
THIS IS WHAT HAPPENS WHEN YOU
GET EMOTION INVOLVED, CHARLES.
WHEN YOU'RE TRADING OR
INVESTING.
YOU GET TOO EMOTIONAL.
THERE ARE A LOT OF PROBLEMS OUT
THERE.
THE BOND MARKET IS SIGNALING
TROUBLE.
ON OTHER SIDE OF THE COIN
FEDERAL RESERVE TRYING TO STAMP
DOWN ON THINGS TO KEEP IT UNDER
CONTROL.
INSTEAD OF LETTING FREE MARKETS
TRADE, DISCOVER WHAT THE RIGHT
PRICE THROUGH PRICE DISCOVERY.
TRYING TO MANIPULATE.
FIRST THE DOLLAR.
THEY TRY TO PUSH THE DOLLAR DOWN
TO HELP EMERGING MARKETS.
THAT DOESN'T WORK BECAUSE DOLLAR
IS TAKING OFF.
NOW THEY ARE TRYING TO WORK ON
BOND MARKET.
EVENTUALLY MARKETS OVERTAKE THE
FED.
WHY THEY'RE ALWAYS WRONG.
10 YEARS FROM NOW THEY WILL TELL
US WE HAD RECESSION APRIL OF
2020.
BUT THEY WILL NEVER KNOW IT.
BECAUSE THEY CAN'T PREDICT,
THEY'RE TOO BUSY TRYING TO
MICROMANAGE EVERY SINGLE MOVE IN
THE STOCK MARKET, EVERY SINGLE
MOVE THAT GOES ON, VERSUS
LETTING FREE MARKETS AND ASSET
CLASSES PRICE THEMSELVES.
CHARLES: HAVE YOU BOUGHT
ANYTHING TODAY?
HAVE YOU BOUGHT ANYTHING OR WHAT
ARE YOU DOING?
>> ACTUALLY, CHARLES, I'M ALWAYS
A BUYER.
AS A TRADER I'M VERY SHORT.
BUT AS ININS HAVE TORE I BUY ALL
ALONG.
I BUY AND HEDGE WHAT I OWN.
I BOUGHT SQUARE, DOWN TO $65 OR
$66.
I WILL LOOK TO BUY APPLE IF IT
CONTINUES TO GO LOWER.
I AM NOT AFRAID TO BUY BECAUSE I
HEDGE ANYWAY.
CERTAIN COMPANIES WILL BOTTOM
LONG BEFORE THE MARKET DOES.
I THINK WE TAKE OUT OCTOBER
LOWS, NOT THIS YEAR, FIRST
QUARTER.
MEANTIME, STOCKS WILL BOTTOM
LONG BEFORE THE ACTUAL LOWS OF
THE BOTTOM OF THE MARKETS GET
IT.
CHARLES: DR, IN THE LAST THREE
WEEKS WE HAVEN'T DONE MUCH.
BURLINGTON TOOK HUGE PROFITS.
LAST WEEK IT WORKED, TOOK HUGE
PROFITS THE DAY OUT OF
RESTORATION HARDWARE, HUGE
PROFITS.
THESE ARE BUY AND HOLD SERVICES.
I DON'T WANT TO HOLD IT UP 25%
IN THIS CRAZY MARKET.
ARE YOU BUYING ANYTHING HERE?
>> AGREED.
GOING MUCH FASTER.
DID THE SAME THING ON TARGET BIG
EARNINGS PULLBACK.
CHARLES: LIKE ANYTHING TODAY?
>> YESTERDAY.
AND TODAY WHAT I'M LIKING IS BIG
NAMES THAT I THINK WHEN WE GET,
THE NEXT REBOUND.
WE'LL DO THIS --
CHARLES: GIVE US ONE TO BREAK.