so far bad day for stocks take a look at netflix shares today though netflix the big company like netflix down 21%, the company currently on pace to see its worst trading day since july of 2012 and amazon not down as much percentage wise about 4% down but it is off about 22% from its high in july, so i'm hoping that charles payne can turn this market around charles it's up to you. charlie: i'm going to turn my back david i promise you have a great weekend. good afternoon, everyone. i'm charles payne, this is " making money" and breaking right now the market has shown some grit today it climbed off a couple of times including bouncing off that 200 day moving average but the gravitational pull is like a black hole. the question is when will it stop, we've got great folks to help us out here maine while, the peloton saga just the latest reason individual investors feel like they are being played so i'll ask the best of wall street why main street should stay the course and if you do, when do we start to buy this dip? now, at one point, maybe to look

is to the chief of stocks, also we're going to talk about hitting your economic future and rising celebrity entrepreneurs its worked over the last 10 years and big brother run amuck, first it was snooping through your payment apps and now the irs wants to scan your face , this is not the class warfare you were promised all that and so much more on making money. all right folks as you can see from all the red on the screen another rough session for the market, and it really points at this one it feels like the market is on autopilot, of course the throttle is tilted straight down. meanwhile the bond yield and the vix, you know if you look at those kind of things they aren't screaming panic at all, which makes me wonder if these emotions are dominating the stock market, so much more than fundamentals and that's why we see every failure exacerbated because people are just ejected. i want to bring in from cross

mark, their cio, bob doll and bob, you know, you've obviously, you were cautious on this market the last several times you and i talked you were waiting for a pullback, but if the year were to end today, this be the worst year since 2008, so thinking of it that way is this justified? >> well, some would say yes, charles and the stocks more than doubled in the prior 18 months so this little pullback is hardly noticeable. i'm not sure i'm not negative but think about it. the stock market got hooked on a drug called fed large s, generic name, free money, and we're now in a period of time where we're still adjusting to the fact that the fed pivoted very quickly from fighting unemployment to fighting inflation and that means rates go up and when rates go up valuations get challenged, particularly for those high pe long duration stocks, and that's what we're facing now. it's not going to be a one way street, you know that, and will

grab hold at some point here and get a rally, but we've got to do some repair work, we've done some damage charles. charlie: and to that point, we get the angst against the fed and the actuality we know low rates help assets especially stocks, but these companies in the stock market, the u.s. corporations in general , they made so much money corporate profits up about 600% from 2000. does that mean something? does that provide any sort of support for this market? >> you bet it does, and we need those good earnings to continue. we've entitled our theme for this year tug of war between earnings tailwinds to your point and valuation headwinds, and i think it's going to be back and fourth and back and forth. we're at the front end of fourth quarter earnings, as you know, and the news has been reasonably good. there's some blemishes but we need those good earnings for this market to grab hold.

charles: yesterday the news that peloton was suspending production, the ceo has said that's not the case but nevertheless, it wiped out what was a pretty robust rally attempt. i think it was a gut punch to individual investors who just found out also the insiders sold half a billion dollars worth of stock an unflattering video floating around about their operations and i bring this up, bob, because we've seen individual investor bullishness stumble, and it's 25% less than bullishness is 25% less than bearishness. the question, why would an individual investor watching this show right now feeling like maybe they have been had, they have been abused, they bought all this hot stuff like the spac s and the ipo's why would they want to stay in this market? >> well for starters, they aren't alone. there are a lot of professional investors got damaged pretty hard too as you know coming into the year the consensus was the stock market was going up with earnings, up above 5,000, and now we've gone the other direction, so we just have to

have a dose of patience, we have to not let our emotions runaway with this and i'm saying if you got monier marked from the stock market, take your time, do it on big red days, and if you have to take some money out wait for some green days. we're going to get a lot of both this is normal, we just haven't had it for a while, charles. charles: bob, next week, jay powell, would you like to see him go 50 basis points? there's a sort of thinking now, everyone is expecting the worst, the harshest treatment why not go for it while we're anticipat ing it? >> you know, i think the major sentiment is still 25. they are increasing number of people asking the 50 question. i don't think we have an emergency here so i'd be surprised, and i think the market would have a hard time if they went 50 so i think they got to get out of the gates first of all they have to finish the tapering, they got to get out of the gates and we'll get a few 25s this year most likely. remember, charles we're coming from zero.

zero was appropriate, we had an emergency, but the emergency is long since passed so the fed has got some fighting back to do charles: absolutely, bob always appreciate it thank you so much. >> take care. charles: i want to bring in simpler trading options director danielle shay, and danielle i want to start with the netflix, because it's one of these well- known stocks that really honestly for maybe five or six years went up when wall street said it would go down and now it's getting slammed poor guidance but do you have folks like rich greenfield pounding the table to buy it today. what are your thoughts? >> so, you know, charles i'm looking at netflix this is just so critical to the health of the market overall because netflix is the first that comes out and reports and historically , it trades higher by about 5% going into earnings. this quarter, it got slammed pre -earnings and their earnings report was actually, i think really good and it got completely destroyed so first of all i would say it bodes very

very poorly for what's going to occur next week on major tech earnings. as far as actually coming in and buying netflix, i really don't have a problem with it. i like netflix, i think it's going to be around for a long time. if it can hold 400, you know, averaging in some shares, my concern is that i think it can still go lower. charles: and to that point, we got a lot of tech names reporting next week, you make the point netflix typically would trade up into earnings. when these stocks trade down so strongly, so much into earnings, there used to be a contrarian feeling that you want to be in them because whatever bad news if there is, it's already baked in but that's not the case right now, is it? >> well and that's number one reason why i'm concerned, charles because normally in a case like netflix where it already traded lower by $100 and the 21 bar period prior to earnings, investors would have said hey, this is baked in, it's not a big deal, we know that growth is slowing down, we know netflix has competition, but that is not what happened. what we're seeing in this is

people panicking and you have a lot of people that bought really high last year and the fact of the matter is if earnings are good but not great, and people panic, it's not really going to matter if the earnings are good but not great. charles: and that's so much for the efficient market theory. hey, on your twitter page, you have featured right there your favorite cloud ideas, which i think is pretty bold considering all these tech names under pressure. are you holding them or should we be buying any on weakness right now? >> you know, charles, i am holding them, because i know that things are a little bit crazy right now and yes, i do think that the indexes can break lower especially next week, you know, you have the s&p that's sitting right on 4,400. if the s&p breaks that level, and we break october lows i they we could slide all the way down to 4,300 but the fact of the matter is i'm looking at my investments on a long term basis , and when you look at

tickers like crm, like microsoft , like mdb, these are strong names that have done a lot in the past several years. they've grown, their earnings are growing, microsoft buying activision, it'll be a little bit quiet for a while like it normally is when companies take over other companies but i'm looking at this five to 10 year game plan and i want the average to these names especially in times like this. charles: so and again, you brought up the fact that you're a long term investor. today, the winners are all consumer staples, right? we already saw procter & gamble had pricing power and general mills and those kind of names. is it worth people trying to hop , if they say i'm a long term investor, is it worth them trying to game every single week trying to be in the hot sector even when it's stocks? >> no. so for me, i trade options and i'm a long term investor as well , and when i'm trading options, i definitely want to be in those hot areas, consumer staples, energy, whatever has their own relative strength at

the moment because i'm looking for short-term two-week play, but as a long term investor, i mean, i don't want to buy consumer staples up here at the highs, so i need to see a 10-20% pullback before i'm going to be adding shares. charles: yeah and that's the point i tried to make earlier in the week. just because it's a "value stock " doesn't mean it's"cheap", danielle thanks so much we always learn from you appreciate it. >> thank you. charles: folks we know charts are extremely important because let's be honest. a lot of times fundamental analysis doesn't work when the markets in free falling mode , so i want to bring in one of the best in the business, top down head of research column thomas. let's start with the s&p 500 we bounced off that 200 day moving average. immediately we had a strong bounce, in fact all the major indices went into the green for a moment. of course they began to slip again, how critical is it that that holds? >> exactly, it's sort of time less question of the current age

of whether it's a minor incursio n or something deeper and to me, the 200 day moving average is pretty key but also looking at the 4,400 level, because as soon as we breakthrough that 200 day moving average the next question is what actually happens next, and if the 4,400 line goes then it's the line in the sand, but really , it's at 4,300 level to me which is red line and if 4,300 goes then it's just stand back, wait and see what happens. charles: move out of the way, jump out of the way, i mean, with the good news though being if these levels fell including 4,300 that wherever we've got to go to the downside, we get there sooner rather than later? >> well, that is i guess one point, and we're kind of learning that listen in 2020 speaking of match 2020 i was looking at the sentiment and some of them are actually as bad as they got to back then, and that's probably the upside of

the downside that when sentiment gets rattled like this then the market gets primed for at least a rebound and if the fed carries on its playbook of being very cautious and basically delivers something a little bit less scary than what the market is anticipating, then maybe that's the ingredients for a bit of a relief rally. charles: speaking of a relief rally, where do you think the nasdaq starts to become a really strong buy? what looks attractive? >> well i've kind of taken the line that i'm not really looking at the nasdaq or tech stocks for buying opportunities at this point. i think they are basically done at this point in the cycle, if you look at the tech companies we've been talking about this for a while and they basically got a one off delivered to them by the pandemic. their earnings growth is brought forward and had to repeat that. it's pretty much impossible so we're going to see earnings taper off for those sectors, and

basically just the fact there's better opportunities elsewhere within the market and elsewhere across global equities. charles: well, we got to leave it there but thank you very much , that's an interesting point. we did talk, everyone, about how everything was being pulled forward, but the notion that maybe that means the rally is done, done, no one has really said that thank you very much, coming up, folks, we separate fact from fiction. is the market really controlled by just five companies? it's a little bit of a trick question, also, we're continuing a look at the first year of the biden administration, what the president is going to try and salvage his agenda, so don't go away. ♪ save those tears for another day ♪

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charles: all right, folks, president biden, he's out there suggesting build back better, it's going to happen but he's going to put it through in chunk s, but already, the idea of these bite-sized morsels being shutdown by people like speaker pelosi and progressives like sherrod brown, meanwhile there doesn't appear to be

anything else on the drawing board nor willingness to move closer to republicans which has a lot of folks wondering if president biden officially becomes a lame duck in just a few weeks brian brimberg joins me, first on a notion of pushing through build back better as an appetizer rather than an entree. >> [laughter] we'll do the chunks here, i love that word by the way, chunks. look, he got a gift. this thing failing was a gift because it keeps the spending out of the economy that could have ramped up this inflation more. he got a gift with the vaccine mandates on the private side being quashed because that gets, you know, things oust of the way in terms of hiring. let it go. don't salvage any of this , let it go and start talking about things that you might be able to see eye to eye with on republicans but most importantly , this has got to be his theme for this year. we got to get back to work. that's how you solve the inflation problem. that's how you solve the supply chain problem. he needs to salvage less and get back on message more.

charles: if they could salvage anything it seems like it might be child tax credit, you know, but do you have to have manchin says you got to go to work, right? >> yeah. charles: i don't care how compassionate you are, that is wanting people to go out and fend for themselves. >> thank you for making that point. it's not compassionate to hand people money and say you'll thrive. there's no way that's going to happen. flourishing is earning a living that's what we should be focused on. charles: how do you think the market will react if it became consensus, conventional wisdom that president biden was a lame duck, that if it looked like okay they are going to get crushed in the mid-terms, anything else left on the drawing board is done, he's already, he already has really, influence among his own party, get stacey abrams to come down to our own state to atlanta for a speech on civil rights, so i mean, if he didn't have any influence what would that mean? >> i think gridlock is good markets like that in the face of potentially far left wing policies, to say nothing is really going to happen other

than getting back on track, getting closer to that pre- pandemic economy. man if i'm in the market i love that because the pre-pandemic economy was strong and i still think the fumes are there, but you got to clear away this left wing garbage that we've been se. charles: i think the fumes are there and the same muscle memory >> the muscle memory, great point. charles: still there and just the thing is, we had an amazing economy without the inflation. so what do we do? i saw president biden, he's bragging again about the supply chain thing. i don't know why being solved i just looked at a chart today and it's at a record, the amount all they've done is pushed them out further so you can't see them. >> stand further out there that's all they said. charles: if you park here, you get a fine, but okay, but they're so backed up. >> no, they are. charles: how do they solve that? >> look there's no magic bullet here. you said it best. we didn't have these problems pre-pandemic because you had people going to work, you had

jobs available, businesses were bringing people in. they were making things shipping things and they had the energy to power it. charles it's not that hard but you've gotta have the theme of getting people back to work this year, it's the only thing the president should be talking about on the economy. he's got to get off the chunks. get off the chunks, get back to the main course, which is work. charles: real quick, intel announcing $20 billion plants in ohio and here is the news. that's not the lead. the lead, this is the first factory in america in 40 years. that's almost heartbreaking. >> it is. charles: how much money has intel made off americans? and this is their first investment in this country major investment in four decades, it's mind boggling. >> what i loved about the pre- pandemic economy is we were encouraging people to build businesses here you gotta put businesses here i love the sound i hate it took 40 years to do it but that's the answer to supply chain problems right there. charles: oh, yeah think about the computer chips into everything we need, everything we use, and it's one of the

reasons that we would have to go and defend taiwan. we would have to defend taiwan. >> that's right. energy and chips change your foreign policy game, charles it's all interconnected. charles: brian great seeing you. folks make sure you catch brian today hosting fox business tonight 5 p.m. he's been rocking 5 p.m. eastern time. also coming up, of course watching these markets for you, and i'm asking about the manic investing coming into the year was the hottest thing possible now it's cold, cold, cold and the irs is set to require facial scans from online tax filers, now how worried are you about the government adding your face to their data collection? i don't trust them, tweet me, cb payne, i can't wait to see what you have to say. >> ♪ why do i always feel like i'm in the twilight zone, i always feel like somebody's watching me ♪ ♪ limu emu ♪ and doug.

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charles: so, we live in an era of prosperity and change, which has spauned a whole new set of celebrities i'm talking about entrepreneurs in the companies they create, now for those that have bet on these folks the pay off has been absolutely enormous but how has this golden era also known by many support the industrial revolution, how does it continue with the fed turning off the spicket and the lights of fame turning into infany, i want to bring in ann b erry and joel shulman, your firm focuses on entrepreneurs and its been a great run no doubt but now the fed is removing the punch bowl, you've got a lot of negative news from shamat, elizabeth helms hurting the image of the industry so what does the next 10 years look like? >> next 10 years still look fantastic and the next six months might be choppy particularly the next month or two as the fed is sorting out interest rates and the markets catching up to the inflation, but 10 years, five years, things

look fantastic and we've got to remember over a long period of time the best time to get into these entrepreneurial stocks is times like right about now, when they hit near-bottom. i'm not sure we're at the bottom but they are pretty darn close they have been beat up and down quite a bit from their highs. more than 40% of the company or close to 40% of the s&p 500 are off 50% from their highs many are the high growth and ultra high growth stocks and they are going to come back at the end of the day and get in q 1 as we've already seen some companies are going to fall off with earnings and some are positive earnings surprises so hang tight. during 2022 we're going to see them come back. charles: ann, same question. >> yeah, i think net positive charles. i think anything in this kind of famous founders, anything encourages young people to go out and build businesses, innovate, problems create wealth in the meantime i'm all for it. charles: let's talk about some of these stocks, joel. i looked at your holdings and

the entr fund and there's a lot of these names we're talking about here. i know you're confident they are going to come back. a lot of people want to know when should they be buying to maximize it, are there any now in that buy zone to buy the dip or when would that come? >> well timing is very tough particularly when the fed is no longer buying 120 billion per- month or they are going to put that the to a halt very soon and start raising rates and we're seeing interest rates creeping up prior to that and high growth stocks are getting hit. we've got an active etf which means we could buy ultrahigh growth stocks and also things that are still high growth but they have cash flows. i think this year is certainly first quarter people need to look at these entrepreneurial companies or growth companies with cash flows companies like e pan or regeneron or google even. it's going to be larger cap stocks with profits and some revenue growth and that's the place to be. ultimately second, third quarter we think the others will come back. charles: and it's the manic investing has become a wreck,

you know at the bottom of the list of course is ark. you see these, well, are you still seeing kind of deals come across your desk? >> you know, it depends on what you mean by deals if you look at nasdaq it's down roughly 7% today, bouncing around a bit. some of these etf's are performing in line with that when i don't think they should be, i think they should be doing better, cybersecurity is and i talked about in your share before that's one i think should be doing better than nasdaq because the tailwinds are strong others like ark don't think meets money down the line and i see why that's been punished at the moment, i'd be very nervous before calling that a deal i'd be waiting it out a little bit. charles: okay, hey, everyone kind of talks and complains about the out sized influence of just five tech stocks, but when you factor in the billion dollar acquisitions they've made in recent years there's really 35 companies so ann, does that make their influence more palletable? >> you know, it's really interesting, the big threat that big tech is supposed to pose is

that their shear scale means they can consume the data and to use that and my experience, charles when i've worked with big companying doing these acquisitions integrating them, having that information sharing, having the omni presence to unify is actually quite difficult so i do think it makes it impractical but it may feel more threatening because of their omni presence even under a different banner so it's a little mixed. charles: joel even the best companies eventually run out of steam or they can't be experts at everything. you must have a bunch of the name you're olding ultimately could be taken over we saw a gigantic acquisition this week potentially microsoft for activision. could we see a pickup and take over activity this year? >> actually you're absolutely right. the spac market has fueled more of that and there's more on the horizon, multi-billion dollar targets we saw for example, after pay acquired by

block or formerly known as square for 29 billion and so we're seeing monster acquisition s in this market we're going to continue to see it. the interest rates are going to start to rise so probably rush to get these deals done sooner rather than later while interest rates are relatively modest. charles: i like that, ann, joel, you guys walk the walk and know this stuff better than anyone so i appreciate you sharing your knowledge talk to you again real soon. meanwhile, folks president biden directing the blame for the record inflation at the federal reserve, so how does this change things for the central bank? listen, powell, he's been thrown under the bus, we've got fed watcher danielle dimartino booth she's going to give us her take, next. chase first banking. a debit card for kids, and a set of tools to help them learn good money habits. by creating allowances and assigning chores, they can practice earning every day. with a debit card just for them,

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♪ charles: all right, well, with all due respect to tupac, right now all eyes are on jerome powell, the federal reserve chairman, he's already in the hot seat. he was already in the hot seat even before president biden turned up that knob to broil. i want to bring in danielle dimartino booth to find out what's going to happen next week you know, danielle, president biden, he put all the inflation blame on the federal reserve. how's that going to influence their decision-making now? >> you know, i don't think it's going to influence his decision-making. i think that even though chair powell also maintains that this is primarily a supply chain disruption issue, i think that he knows better than most that the fed ignited speculation in the housing market, that the federal government's fiscal policies have kept wage inflation higher than it would otherwise be as your recent guest was just saying a few minutes ago.

you pay people to not work, the child tax credit, told 1.5 million parents out of the workforce, the food assistance program has gone up 25% since october 1, for more than 10% of americans. this is not just a supply chain issue, but i will tell you, that the intrigue on capitol hill, charles, is growing, we're technically not going to have a federal reserve chair because sherrod brown has come out today and said they are going to wait until early february to do the actual vote in the full senate for powell's confirmation , i'm like you're kidding me there's actually a kukin the kitchen the federal reserve is not going to have an actual chair. charles: well during that sort of confirmation hearing that powell had, there was actually several of these senators who outright sort of made threats. hey give this information to my office, you know, back what i'm saying, i haven't made up my mind yet. there were enough folks making these threats to him that you won't get my vote if i can't get you to bend a little bit, so he is under tremendous amount of

pressure and then of course, also, this week, president biden said he's going to fill all these seats and we know they are going to be all on the left, all who really probably want to print as much money as possible and they could even direct it to places they want, but again, i just see tremendous amount of pressure. this is why i think he should go as strong and as hard as he can right now and next week 50 basis points whatever he thinks the harshest treatment is maybe go for it, what do you think? >> well look. if you look at the difference between the two year and the 10 year which is something we spoke about non-stop in 2018 and 2019 if you look at the yield curve it's at 75 basis points today, that's like three quarter point hikes that the fed has in the chamber right now according to what the market perceives is tightening so if it wants to get out in front of this and try and store up as much cushion as it can for the future need to ease policy, if need be, then

yes, going bold could certainly be a step to take but again, if i'm jay powell i don't know how bold i go, because again, i'm a sitting duck. they're not even telling me if i'm jay powell what the date of my actual confirmation is going to be. this is insane. charles: so you always hear that the best cure for high prices is high prices, and of course that had to be the thing behind powell and transitory, so why is it so persistent now and do you think the fed still is in the heart of hearts particularly powell believe it's transitory just a longer version of the word? >> well, i do think, charles, that we are seeing delivery times come down when we're seeing surveys we are seeing inventory numbers pick-up, so i think that certain areas of inflation are going to be less hot in 2022 but a lot of the inflation that is not of the transitory nature has actually been made by very bad fiscal and monetary policy that they can't all of a sudden wave

a wand and undo. there's no abra cadabra for the source of the sticky inflation and we're talking about the essentials, housing, grocery store, prices at the gas pump and these are things that are completely out of powell's control and again, they're by-products of very bad policy on the fiscal and monetary side. charles: just don't tell the white house that. danielle thank you so much always appreciate it. coming up, big tech companies pushing back against lawmakers plans to regulate them, saying voters don't want these laws. we'll explain, also, your favorite federal agency has a new trick up its sleeve, folks, the irs, well let's just say, they want to get a good picture of you. we'll be right back. ♪ we can't read a poker face ♪

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within the irs and as with most of these dealings with the irs people obviously just not happy about it. gerri willis has more on these concerns about data collection and monitoring. gerri? gerri: hey, charles that's right and happy friday to you. the irs launching a new program that will require you to scan your face and provide other personal data to get access to your tax files online. the irs has hired a third party, this company called id me, they're the gatekeeper to verify filers identity claiming facial recognition is necessary to deter today's criminals cyber criminals, that is, most effectively. the taxpayer trust in the irs extremely low, due in part to scandals like the targeting of tea party groups by irs employee s way back in 2013 this is leading some folks to question whether the information gathered by id me will be shared with the nation's largest tax collector or other federal agencies. the irs says those concerns are

overblown, "there have been some wildly inaccurate statements regarding the use of selfies relating to paying and filing taxes." the irs ex fasizes taxpayers can pay or file their taxes without submitting a selfie or information to a third party identification company. now, id me says the irs will never see the biometrics. they are simply confirmation the user is authentic and the ceo says the process is well , similar to using your own smartphone, listen. >> we match a selfie to the photo on your government id. it's called one-to-one matching and it's what you do every time you unlock your smartphone, we want to be crystal clear that we do one-to-one matching, we're not doing any type of surveillance programs or anything of that nature. gerri: he added that the only case in which information from the company scans might be shared with federal agencies is in the case of fraud when a scam mer is posing as taxpayer.

look, charles by june, facial recognition, that is, will be the only way to log on to irs.go v, and as you month this is where people routinely check child tax credit updates and online payments and this is a big step for the irs. some of their equipment is 40 years old, charles? charles: they will have an army of agents soon so that'll make this a moot point. gerri you have a great weekend. now i want to bring in the author of ken trust will hiring for the human element in the new age of cybersecurity. lisa garber. this new facial scan thing, it scares the hell out of a lot of people myself included. are there any constitutional safeguards against this kind of stuff? >> great to see you charles on this friday and it scares me and quite a few other privacy advocates as well. id me was just recently a few months ago, called by forbes, a startup even though its been around for 12 years, and it

supposedly is worth $1.5 billion , it's now being really relied on as the digital bouncer for many government agencies not just the irs, which as spokespeople have said, you don't need to use it to file your taxes, but that's not to say it won't happen in the near future. there are different departments that already use it, and as we know biometrics which can be a facial scan, or your fingerprint or even the sound of your voice, are in replaceable so to put all of our faith in one entity to hold on to and protect this information should scare us. charles: yeah, you know, obviously you're one of the weld experts out there in cybersecurity and the law, so merck just won its legal battle against an insurer who claimed that this recent attack, it was an act of war since it came out of russia, and then of course none of these insurers want to cover that. how does this change the dynamics of the cybersecurity? it was like the $1.4 billion-

$1.5 billion payout, because the big argument is who pays for cybersecurity? can this clear that up? >> this is a problem and the problem also is cases like this and we'll keep seeing more and more. they help illustrate and define different pieces of the puzzle but we don't get the whole picture yet and that's part of the problem here. the internet has been around for over 30 years but the laws are just as old and we don't see that evolution happening fast enough that's why big tech is now running into many obstacles with anti-trust issues , we're seeing cyber warfare only recently being defined. we see this administration and prior ones throwing money at cybersecurity but we still see questions about how to find the right people to fill these jobs, and that's just going to ramp up with continued discussions of cyber warfare, and the metaverse itself, so really, we need the legal to step up and our senators to step up and instead of fighting over these different patchwork privacy laws create a unified standard because that's the only thing that's going to help and we also need to make

sure that people in power understand what cybersecurity is , and the ability to be proactive. charles: yeah, well, proactive is not a word i'd associate with cyber cybersecurity maybe that's why the stocks have done so well always appreciate you coming in clearing stuff up for us, leeza. so the market, it just can't stop crashing into the close. this month has been one of the absolute worst for that last hour of trading. it means the ultimate buy signal will be when we get a rally into the closing. doesn't look like it's going to happen right now but this is a time you really want to start to look for opportunities i've got two of the best we're going to help you out, next. ♪ thinkorswim® by td ameritrade is more than a trading platform.

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charles: so yesterday at 10:30 it felt like a sigh of relief. you know, there were a lot of unanswered questions, but, you know, we had a lot of green on the screen, and we felt pretty good. but, of course, later on in the day it all changed. in fact, just about every stock in the market went the exact opposite way. if something was up 1.5%, it closed down 1.5%. and i gotta tell ya, it was the inverse, and everything looked really, really crazy. i put the blame on peloton, i

really do. i think it was a gut punch for individual investors. but let's face it, the last hour of trading selloffs this week and this month have been amazing. and the point now where i think they're self-fulfilling. with that in mind, i think the big buy signal would be when we get a big rally into the close. nevertheless, buying into the close is when you make most of the money over the last ten years. so to help us find some ideas, scott martin and david dietz are with me. scott, first of all, your thoughts on these selloffs in the last hour of trading. it feels like now it's sort of, it's just knee-jerk at this point. what's causing it? >> yeah, status quo. yeah, to be expected. it's a lot of things, charles. i mean, there's probably some margin liquidations, there's rebalancing, and there's other things too especially today with crypto that seems to be pushing other things down. so, look, the -- charles: wait a minute. crypto is leading the equity

market now? >> well, here's the thing, man, a lot of the malaise that's been in equities today are spread -- have spread over into crypto because they're way outpacing the losses in equities today. bounced a little bit, and now you're seeing accelerated selling into the equity e close just now. so i think that's one thing hitting the other, maybe the cat leading the dog. the point is, charles, quickly on the selloffs, the problem with the late-day selloffs is once you get a few many -- in a row, that becomes typical. so once the glass of milk starts to tip over, the whole thing spills out. you're right, we need a reversal of one or two days, and all of a sudden it can change, but it won't change until we actually have some real buyers coming in which i don't see today or even monday. charles: it's really tough on a friday ahead of the fed meeting but, dietz, is it just one of these things that begins to happen, it's a pattern, people anticipate the pattern and it becomes self-fulfilling? >> i think the last couple days

the smart money died get out in advance. charles, when you look at the overall markets, those companies that have the highest valuations and taking the biggest beatings while some of the value cyclical stocks are better. when you're coming into earnings, peloton, i mean, the ultimate stay at home stock that was going to keep sinking further and disappoint, netflix, the same thick. huge -- the same thing. i think the smart money wanted to get out. but i'm more optimistic for next week because we're going to get sop of the heavyweights reporting, and so i think things in terms of selling off at the end of the day may start to shift. charles: we're already starting to see the selloff. scott, i see you did a pretty intriguing trade. i see you sold your amazon and you're buying netflix. you like this big dip, huh? >> look, i just like stuff on sale, charles, and not when i'm buying shoes or other things i won't mention. netflix, when the stock is down 20 plus percent on a day when the market malaise is

widespread, typically you can get a bounce out of that name. not maybe on monday or even friday, but you can get a bounce in the future. so we're playing that one for a short-term trend. a quick note, david's right about the earnings heavyweights coming out next week, but the market sentiment and psychology maas changed meaning you can -- has changed. you could get good earnings, and the market could sell them. so don't be discouraged. the media's going to go nuts about that, that could be a buying opportunity. charles: david, less than a minute, i want to go other some of the ideas that you like, at&t, gilead and walgreens. feels like safety is the key here. >> yeah, absolutely. but, you know, i want to highlight walgreens. we are seeing a nice move in cvs up over 100 as people are coming back and seeing the value of the local drugstore during this pandemic, but they seem to have stayed clear of walgreens. 80% of americans are within 5

miles of their stores. they just upgrated -- upgraded the number of jabs they think they're going to put in arms, there's all sort ises of levers they can pull. i think -- charles: okay. all right. we got ya. hey, scott, david, thank you both very much. as i hand it over to liz claman, again, it's starting to happen, liz. this last hour of trading has been nuts, bananas, and it's been deadly. we're buckled up watching you for the next 60 minutes. liz: yeah. watching you and your request of leather, charles. charles: oh, what? i can't, i can't see ya! give me a return, somebody. [laughter] liz: can't afford another television? [laughter] charles: my ratings, huh? liz: and ye shall receive. investors are playing the game of survival at this hour. netflix, disap