tv Making Money With Charles Payne FOX Business August 8, 2022 2:00pm-3:00pm EDT
david: so if the dow stays at current levels of above 75 we are out of correction territory, folks. so that's god news. charles payne can take the good news and do something with it, charles. charles: i will take it and run. david, appreciate. good afternoon, everyone, i'm charles payne this is "making money." breaking now, market resolve that is confusing everyone especially the experts but while you might dismiss the stock market it is the message from bonds are making a lot of folks second guess whether or not the fed could engoer a soft landing. nvidia is i can tanking after warning. beth kindig is coming up. she is a believer in the stock. she has been on a roll. how about this one?
short squeeze season continues. hedge funds are betting against them big time and losing big time. they are champing at the bit at open. as you can see they are rocking. should you be chasing? democrats are making a 80 billion-dollar wager a bigger irs will be a better irs. tweet me @cvpayne. what are odds monster of an irs will only go after rich folks? don luskin at 2:35 to sound off on that. appears janet yellen is gaining more power how to tell businesses to pay taxes. another worry that big government is out of control. all that and so much more on "making money". ♪. charles: you know, to me the most impressive rallies are the moves that go against the grain, right? that ignore the experts, that rip up the script. these are moves that engender deep disdain on wall street, which makes them more delicious. making the current move right
now more complicated is the debate oaf recession. nobody watching needs an economist to tell them whether or not their own circumstances are bad or not but as far as an official call, i don't know, maybe it is too early. i don't know the mber stuff but it is in the cards. it is going to be at some point. with that in mind the market is at a pivotal point historically. if there is no recession it wouldn't be unusual for the bounce to become something bigger, a real long-term rally. if recession is still in the cards maybe there could be more months of pain. let's get right to it, bring in kaltbaum capital management gary kaltbaum and capital founders partner kim forrest. gary you started to nibble in june or riding away with the names you already bought? >> i added some last week but i'm looking over my shoulder. i call them rentals until otherwise notified. i don't think the fundamentals are great but the market is
acting just fine. i have to add another area of the market that may be trying to put in a good low right now, that is the whole consumer area. retail has been the death drop, restaurants, housing, housing relate they're starting to act better and showing bottoming process like bombed out software names that look pretty good off the lows. i'm not saying that the bear market is over. i'm saying a lot of things have put in bear market lows. we'll ride it and hopefully it continues. charles: kim, when does the bear market bounce become something more? >> well, sure, this is a technical analysis sort of tool that i don't generally use but i think in this case it's a pretty good indicator. so if we do the difference between the high and the low of the market and then divide that by half, then add the low of the market, we get around 4230. so if the market can close above that, what that is telling
fundamental investors is, enough people are buying stocks and they believe that the, this can continue. charles: right. >> it is -- if a market moves above half of the retracement level of you know a decline, that it goes back again. charles: right. >> but again, it goes to fundamental principles that earnings have been good enough. forward guidance has been good enough and that's why the market has been good enough. charles: i'm actually going to get into more of how to play the retracement in chart school in a moment but i do want to pick up on that because it is so interesting to me when the markets go the way people want, experts want, they always say respect the market particularly the bond market. here we have the stock market saying one thing and to a degree being corroborated by the bond yield curve, right? 10 and 20 both suggesting we're in a recession and the fed may have to pivot soon?
kim? >> you want me on that one? charles: go ahead, gary i want kim to follow up, brought up fundamental analyst. >> go ahead. let her go. >> the bond market is affected by a lot of things. in any other normal kind of market, whatever that is i might throw in the towel say sure, recession is right around the corner but we've got this really weird thing where the u.s. has tremendously high interest rates compared with the rest of the world. you can see that in the strong dollar. people are buying those dollars to come in and buy our bonds. >> right. >> so it is not at all uncommon that the two and 10 would be inverted meaning the 10-year is below the two-year. charles: sure. >> because there is more demand for it from outside investors. investors outside of the u.s. charles: gary? >> look, i just tell your viewers, and i have said this many times to you, charles, i just scan every day 1500 to 2,000 stocks, 200 sectors, every
country, every commodity to get a feel whether uptrend, downtrend, no trend and for months and months we were in a downtrend. we stayed out of the market. on june 17th the s&p hit a low because yields hit a high, direct correlation and so far so good. you can also look the fact we've gone from 3.5 to 2.7. as long as stocks are going up i'm fine. if that changes i will deal with it and i'm pretty good when things change. as i said before, all of sudden consumer stocks are starting to kick in gear. i could care less why. hopefully the consumer is better. all i know they're starting to turn up and keep fingers crossed that gets better, because if it does that means we're probably not in a deep defined recession that will hurt everybody. charles: i know they're spending a lot of money. we saw that friday at 3:00. we got the cpi on wednesday.
obviously this market senses maybe it will be below consensus and that will really take us off to the. kim, would you buy anything now or would you buy anything before that report? >> i think you're a fool to wait until after good reports to buy. if you have an eye on a good company buy half a position, you will be a winner either way. if it goes up you already established a nice low so your dollar-cost averaging well and if it goes down, you can always again, if it's a good company and you want to own it for the long haul you're still establishing a good price you want to buy it at. buy half. >> i like that. gary, kim, thank you both very much, appreciate it. >> thank you. charles: so there is one popular name not participating in this h today's rally. before the open, revenue 6.7 billion. previous to that they said 8.10 billion. i want to bring in io fund
technology analyst, beth kindig. down 33% from a year ago, 44% sequentially. i'm not sure in the long run how big after puzzle that is, are you still going to hold the stock? >> you bet. a tough day for nvidia investors, but long run it won't matter. we hold the stock with artificial intelligence, so anything outside of that thesis is not important to us. i love to be contrarian, you know, data center will be up 61%. they also provided that number. for a.i. investors like myself we're right on track. showing to be much more secular than the cyclical gaming market and what we want that data center segment to continually expand and surpass and double and potentially triple overall revenue from gaming. so the more that we see that really the better. then i would also point out third that the proof of stakes emerge which is ethereum's
merge. it is, it's way better to get that over with, put that behind us which is probably what happened in this quarter. it has been looming for a long time. let's get it over with, get back on track and focus on a.i. charles: you are still confident in management then? >> oh, for sure. charles: i look at your list of stocks and you're having an amazing great earnings season for your portfolio including paypal. is the worst over for that company you think? >> oh, we don't hold paypal right now. we considered it, so we certainly talked quite a bit about it and squared compared it to scare. we at this point prefer square. it is a higher growth company. despite the 15 billion-dollar buy back that paypal did, we need a better call lift which elliot has moved in. perhaps we'll see something around crypto. charles: what are some other names then standing out for you this earnings season?
>> we really liked amds report. we got 61% data center growth number from nvidia. they're coming in over 80% a and b. at the same time intel's decline is 16%. something is going on there. amd is clearly doing something right. management which is incredible also said gaming should clear around q4. she is looking for sequential growth in q4. that is exactly what i want to hear on top of strong dater center. over all amd was stronger than the market reaction was next day. we don't own cloud flare but selling good things for cyber security. one thing about the cyber security only area impact budgets are increasing year-over-year. i'm sure you heard everything budgets cutting, budgets slashing. budgets increasing from 2021 to 2022 is cyber quart. cloud flare dave us our first glimpse of that we're seeing how
the rest of cybersecurity reports. charles: you're not in it yet? you're kind of teeing it up? >> we like crowdstrike and sentinel one. they're pure plays within the cybersecurity industry. cloud flare was the first to report so far but that earnings report was much stronger than we were expecting. >> beth, thank you very much, always appreciate it. >> thank you. charles: folks, coming up nasdaq is also on pace here to make a magnificent move out of the bear market and small caps if you haven't noticed are on in a ilk about-time tear as well. we're going to chart school as well and we'll tell you how to look at retracement. ♪
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for just $30 a line per month when you get 4 lines. switch to xfinity mobile today. ♪. charles: okay, the retracement, all right, especially 50% retracement. these moves are very important and often prescient with respect to predicting turns in the market. i got to tell you they are really phenomenal when trying to
analyze markets. look at this rally, from the pandemic low. we're using value line geometric index from the march 2020 low to the november 2021 high. it was 382 points. want to bring in adaptive market technician ian mcmillan. we had the move up. 50% is 191. retracement would take you to 504. i got the index got to 514. is that good enough, 50% and perhaps a buy signal? >> i don't know if a retracement to 50% or really any level is an automatic buy signal. for me a 50% retracement is a little bit more of kind of a basic behavioral level versus more classic fibonacci retracement which the math nerds for lack of a better phrasing will get a little bit more excited about. but 50%, again it feels like
your average behavioral intermedia -- intermediate term countertrend move but on value line geometric we're still belows from the highs of 2018. so that tells me the average stock has not gotten anywhere for four, four 1/2 years. i think i'm going to need to see more than just a short-term bounce. charles: right. >> to get excited. charles: so on a nasdaq, let's talk about that, because that keeps edging a little bit higher toward the breakout point. again, every time it gets there the last few sessions it has come down as well. if we get through, it looks to me again, 13,000, maybe that would be the point where we would start to get excited. where would you become very constructive on this chart? >> yeah, i think as long as we stay above this recent breakout level that we're at, we're still above 12,300. last time on your show i was
flat-out wrong. i thought growth would underperform, and it has not. so i, as long as the nasdaq holds 13,000 i think we can fill, i think we can fill that gap at 14,300, another 70%. charles: let me go to the qs because i got a minute to go. every is watching them. a lot of hurdles there. feels like make we cleared something about 320 area, maybe next thrust benign cpi number, something like that? >> that's possible, right? all eyes are still going to say on apple and microsoft. those are the two big ones. news out of semiconductors today probably not helping too much. it hasn't been too much too quickly. from a visual standpoint you could argue that. coming out after bottom, this could keep, this could keep
trucking. charles: for now ride the wave and be patient? >> yeah. it is hard to jump in right now with two feet. charles: absolutely. >> i would say if you're waiting to get in, if you haven't gotten in yet, i would say let this week play out. charles: okay. ian, thank you very much, always appreciate it. >> have a good one. charles: so forget recession talk and talk about market performance, getting stronger because actually one firm is talking about. a top wall street firm is saying everyone got it wrong. brian wesbury with us. can't wait to see if he reaches that. has the internet peaked. tweet me @cvpayne. are you shopping as much as you used to online or find yourself going back to the mall? ♪ ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations,
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now the number even catching the white house off-guard, right? remember the press secretary let it slip the evening before would be 150,000 but labor is a lagging indicator. seems like something else might be moving these markets. with me first trust advisors chief economist brian wesbury. brian, you were never in that recession camp not just yet but could it still be in the cards? i'm reminded of march 2000. we had a jobs report came in at a 30-month high, well over 400,000. we fell off a cliff and didn't look back for a couple of years? >> charles, absolutely. all these data, one month of data, two quarters of data, gdp, i, i am not kidding when i say i kind of take them with a grain of salt because just as you pointed out you get a really big number and the next thing you know you're in recession. so what i try to do is step back and look at the underlying patterns and today, we've talked about this many times, today the
pattern that is taking place is all because of covid. you know we did not really have a recession in 2020. we had a lockdown. we haven't really had a recovery. we've had a reopening. and then that reopening was stimulated by borrowing money on our kids credit cards and as a result, retail sales were up like 25% over 18 or 20 month period when they should have only been up about six. charles: right. >> right now we're in the collection phase all the retailers who hired, built inventory, they will have to pull back but the services side is still reopening. i mean i just saw today at the drugstore a sign that said, no, you cannot return your covid tests. so, this thing's over. everybody is done with it. they're trying to give back their 29-dollar tests and they won't take them. so the services side is going to
open up. that is why i always thought this year services will come back to 70% of consumer spending. goods will go down and that is going to create a lot of mixed data but if you look through that we'll still be creating jobs. charles: so jeffries says, forget about recession, that the market mayor tiff should be shifting to a stronger for longer type scenario. total income wages to salaries will exceed% month over month. at the same time inflation is starting to come down. that means real wages and income spending will actually accelerate, that will help the gdp, we could have a strong third quarter. you think there is some merit to that? >> well, right now our forecast for third quarter, obviously it is really, really early is about 1 1/2% growth. so that's not strong but when we looked we created almost 3 million jobs and private sector wages and salaries are growing. we'll see if they grow faster
than inflation. i don't think inflation's going anywhere for a long time. charles: right. >> and so, so you know, look, we're going to have a recession at some point. i just don't we've had one yet. we will pay a price for the mistakes we made. charles: i got 30 seconds but on friday we saw consumer credit expand by 40 billion, second highest on record after the 47 billion in march. now, there is a debate. some say that is actually a sign of consumer confidence. others say it's a sign of weakness. where do you come in on this? >> i would say, it is not -- i would say it's a confused consumer. the checks stopped. now they're borrowing. we calculate what is called a financial obligations ratio, how much you owe on car loan, mortgage, your credit cards insurance, property taxes. that ratio is really low right now. we haven't seen the financial burden on consumers this low since the '80s, since 40 years
ago. so we have room to build credit. i think it is just because the checks stopped. now people are actually having to spend their own money. charles: you know what though? they got hooked on the spending. americans like to spend anyway. people are not missing a pete. i always say they will not stop until they completely run out of money and max out the credit cards. brian, thank you so much, my friend. >> thank you, charles. charles: retail etf, did you see it up more than 5%? i guess all the credit card spending is starting to have impact. we have definitive director of consumer research jerome martinez. you were bullish on retail and everybody else was bearish. the dark clouds of recession i'm not sure you were as confident then but can this continue? >> good afternoon, charles. it is good to talk to you. well, yes, as you mentioned there is a dark cloud on recession and inflation. all these things are affecting consumer confidence but when we dig deep near the data the one
area the consumer feels optimistic about is security in their job and their outlook in their careers. as long as they feel the unemployment in the united states will remain low and the economy will continue to create jobs this is the one secret ingredient that is keeping consumers engaged, allowing them to open up their wallets, keeping u.s. economy floating. charles: it really, really is. according to morgan stanley, the most participated outdoor activity is eating at restaurants. that is up a lot. surprisingly visiting malls has eked out entertainment. i guess this is what would you call the fomo economy, right? >> well, there is definitely a shift in consumer spending. after being cooped up in their houses for two years the consumer is choosing experiences over things and so when we looked at the data the restaurant index is posting healthy numbers on top of the
most difficult comparisons ever the restaurants had. in fact only four out of 32 restaurants are expected to see negative -- themself. this tells me consumers are spending money eating outdoors. in fact when you look at the strongest sector for the entire year, the strongest sector is expected to be hotel, restaurant and leisure. consumers will spend money on experiences, not so much at the mall. charles: the flipside of the memo economy might be the internet. there are signs maybe sales have peaked. we're starting to drift back to the pre-pandemic, that mean. do you think that's happening? >> absolutely. so when we look at the data we're definitely below the levels we saw during the pandemic but the amount of money consumers spent online continues to grow for the most part. it is only growing at a much slower pace. so our projection at refinitive at end of the year at holiday
season we'll see growth of 15.5% of total retail sales when it comes to e-commerce. this is still slightly below the 15.7% we saw at the height of the pandemic. but still shows that it is growing at a very slow rate. charles: i got 20 seconds. what is the retail stock that you think the folks like the most here, looks most intriguing? >> analysts are raising estimates for discounters that are selling gasoline. talking about costco, sam's, bj's as consumer is cutting out netflix subscriptions looking to save money at the pump. also the luxury names like lululemon, hermes and burberry. they pass higher prices on to the consumer that high-end consumer is spending money, nothing holding them back. charles: nothing at all. thank you very much. always appreciate it. bitcoin is breaking out. maybe the crypto winter is over already so where can it go from here? >> democrats new spending bill
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applicable corporation falls below the average annual adjusted financial statement income tax. in recent analysis of the bill casey mulligan, former council of economic advisors, you see yellen there, under trump agreed writing in his blog, supply and demand that the bill gives the treasury secretary to authority to determine an individual corporation's tax liability. new corporate alternative minimum tax would raise 313 billion in revenue over a decade, according to the non-partisan joint committee on taxation. to do that companies would be charged a 15% minimum tax on corporate book income, that is the income reported on corporate financial statements. now some 150 companies with annual revenues over a billion dollars would be subject to the tax initially and according to new research from ubs would include well-known names like ford, amazon, nvidia and broadcom. corporate amt isn't the only
corporate tax instituted by the inflation reduction act. it also would create a 1% excise tax on stock buybacks. "making money" with charles payne will be right back. ♪. you'll always remember buying your first car. and buying your starter home. or whatever this is. but the things that last a lifetime like happiness,
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♪. charles: another massive spending and tax bill. it is on its way to passing later on this week when the house gets a chance to vote on this disingenuously named inflation reduction act. does nothing for inflation. does nothing for climate. really it doesn't do anything for politics of envy. rich college grads living in the big cities, they will get all the money for electric vehicles. they're getting obamacare money before, remember that was pitched as a way to provide poor folks with health insurance?
by the way if you have private insurance, get ready your costs will go up a lot to offset that. joining me trend macro cio don luskin. don, let's start with something i thought was really amazing. so senator crapo has an amendment and because you keep hearing democrats, particularly president biden saying no one who makes less than 400,000 will be hit. he says, put your money where your mouth is. he put up a bill that says 87,000 irs agents would only audit companies and individuals making 400,000 or more. well it failed 50-50. i'm just shocked about this. i know every time i tell you i'm shocked about something you see, you always say i shouldn't be? >> yeah. i mean, aren't we immune to surprises at this point, especially comes to the banality of the u.s. congress but you know i have a solution to this, this thing with all the new irs agents that will be auditing everybody. i think we should put the
high-tax, blue city, district attorneys in charge. that way nobody is guilty of anything. charles: yeah, i do find the math kind of interesting, like 700 billionaire and 87,000 irs folks to go after them. more than half of the audits of 2021 were on folks earning less than $75,000. yet they unleash the army on middle america. i think it's a bad move? >> it is unbelievable. you know what? , you know what this is? i almost hate to say it because it just sounds like a conspiracy theory but that doesn't mean it isn't true. what is happening here is a state apparatus is being created with unparalleled power to surveil, investigate, and prosecute americans at all different wealth levels. doesn't matter whether you're rich or poor, the idea of having this kind of invasive state apparatus that can punish you
simply by accusing you. you don't even have to be found guilty at the end of a multiyear process that has taken up months of your life, put you in fear, caused you to bear legal costs, the process is the punishment. i'm telling you under democratic administrations it will be applied to republicans. under republican administrations it will be applied to democrats. this is too much government power. charles: intimidation is a big part of this. you and i talked about loss of trust in major institutions that includes the financial industry. 50% of folks would rather seek advice from family and funds when it comes to financial stuff. gen-z, 34% tiktok. 24% picked youtube. only 24% would go to againstal vise sorry. should we be upset with gen-z or upset with the industry? >> this poll doesn't necessarily have to be a critique of invest advisors. it might just be in the modern
world of technology wonders that we live in where we have things like youtube and tiktok, we can reach out, to find out things about the world ourselves and we don't need advisors to do it for us anymore. so you remember the one of the greatest investors of the 1980s, 1990s, peter lynch of fidelity magellan fund, he was a mentor to me, a very good friend, he used to say invest what you know. that means what you know. not what some financial advisor pays awe fee to know for you. with things like tiktok and youtube we can know so much more. so invest in what you know now that you know so much more. maybe gen-z is onto something. charles: my wife is onto something. she you tubes everything. nothing that she can't do after couple days of youtube videos. always appreciate these conversations. thank you very much. i love what you said about the irs agents. both sides will really regret what is happening this week. mean while, folks, bitcoin break
the out, cryptocurrency up 5% in the last 24 hours. joining me cryptocurrency expert and host of the mark moss show, mark moss. mark, is this crypto winter can we call it officially over? i think if we close, never closes but steadily get above 24,000 maybe we can say it is springtime? >> first thing is nothing ever moves up in a straight line or down in a straight line we know that for sure but i agree we have really good momentum on our side. it has been there over a month. it looks like we have a really good chance to buy on this breakout. charles: you have been advocate bitcoin is superior to many other offerings. it is unruly, when you build a portfolio do you consider other coins as well? >> so the way i look at it, bitcoin is the asset we have fundamental drivers for so we see institutional adoption on the bitcoin asset.
we see lots of products being built on the bitcoin blockchain, all types of custody, things like that solutions but on the other side, the other 20,000 or so cryptocurrencies they are more speculative. if people think they can time the market, get in and out of the proper times good luck with that. i think for most people if they don't have an edge, if they don't know what the edge is, they don't have one. if they don't have an edge, better buying bitcoin and holing it. charles: i had the conversation with don, loss of faith in different institutions particularly government, particularly the federal reserve. it feels though every time the federal reserve has been in the news the way it has been in the news the last few weeks it feels like it helps cryptocurrency particularly bitcoin. >> yeah. charles: does this disarray add credence to the value proposition? >> i think it certainly does. what we really saw the fed meeting in june. around june 15th they came out and announced a bigger rate hike than everybody expected, 75 basis points and at that point
we saw risk-on assets take off. since that meeting we saw the two-year and 10-year yield both start dipping off of that meeting. because of that higher rate hike we saw the risk assets including the nasdaq, tech stocks and bitcoin have both been rallying since. i think it shows obviously everybody is waiting on the fed. it shows they're losing control. they probably will be capitulating, pivoting than most people thought they would. charles: i was also talking with don about the gen-zers and millenials, looking outside of the norm if you will, financial advisors, wall street and so forth. >> yeah. charles: i, they look to folks like you. you're independent. you have a strong voice but you make a lot of sense. is this the way it will be and to a tee agree the financial industry forefitted what they might have had in the past? >> i think so, right. the way we learned has changed. the internet changed that specifically over the last 10 years. with the rise of social media,
youtube, tiktok, et cetera, we have independent voices as it should be. some voices say the wrong thing. some will say others. we don't need to hang on the experts, so-called experts. i think a lot of people are disillusioned with the traditional financial advisor industry, feel they are sales reps. they sell products their firms represent. perfect example, i won't names, somebody i know working at charles schwab is not allowed to talk about bitcoin when the customers ask them about it. they can't even talk about it. charles: wow. >> i can tell you things your financial advisor doesn't know, and wouldn't tell you even if they did. charles: when i became a broker i was so disillusioned because i wanted to be a broker since i was 14. i thought you go home, you did reserve, did all of this stuff, mark. i learned the hard way if you don't sell house product you don't make money. >> yeah. charles: i learned this lesson. everyone is learning now 30 years ago. always appreciate the conversation. >> thank you. charles: if you like what is
happening with bitcoin you like what is happening with the small caps. look at slm. this thing is right on the cusp of a major, major breakout. you have a little bit after channel, then the 200-day moving average, it could be off to the races. joining me now caruso research founder, franca russo. you're looking at this. when i saw this chart you're the first person i thought of. are we there, almost there, getting ready to take off here? >> we took off on the lows, right, charles? i don't yeah. >> if you're looking at value standpoint, you look at p-e ratio, but not looking ratios, these last couple quarters companies lowered estimates we're still trading at lowest levels, the data i went back to is 23 years. it is probably even further than that that is how far we've come down in terms of small caps. you see a nice jump because i think there is ton of potential left because they sold off so hard. not every name will do good but
a lot of names within the russell 2000 have incredible potential six to 12 months out. charles: peg ratio is attractive. i want to get your thoughts on this, hedge funds are betting big time against small caps. they're net negative. they're net short right now. you know, at some point i think if this moves the way we talk about, they will end up chasing retail investors. >> they will, right? that amounts to a massive short squeeze which we like to sigh in this industry that will happen if the fed decides to slow down or stop raising rates. i think they will do in september. people don't realize how much a 75 basis-point hike is unprecedented. seen it 1994 last time. now we've had two. we're seeing effects. leave it, unemployment doing very well but overall, if you look at gasoline prices oil prices, looking demand for home prices coming down. copper, wheat, corn, lumber, down 30, 40, 50% we still have a ways to go. you're seeing it work.
if they overshoot, that is the biggest risk. if they come out in september, look, we're going to slow down, let's see what happens, that is when you think this -- probably get a massive short-covering too, this thing take off with the russell. charles: before i let you go been a long time, what are you buying right now, what do you like? >> two companies. i want to wait until they report tomorrow, norwegian cruise lines. different than carnival, royal which are terrible companies. you will see a lot of separation. 80% of debt is fixed. earnings, cash flow, revenue going to surge. a small pharmaceutical company, my md. reporting great results, under the radar. small company, high-risk, high reward. target same things humira targets. safety, efficacy on this drug is fantastic. i have a person that thing. my daughter has crone's. this could help tremendously. humira is number one selling drug in the world, 20 billion in sales. if they get it right, massive upside. my md is a my speculative play.
charles: touching as well. i hope the hedge fund shorts don't attack this one like they attack all of them. a lot of companies try to do good for humanity. they look like sitting targets for the shorts at times. frank, too long. appreciate it, my friend. >> thank you. charles: coming up, do you remember this commercial from the '70s? >> it's not nice to fool mother nature. [lightning] you may think it's butter, but it's not, it's chiffon. charles: that commercial reminds me a whole bunch of the establishment on wall street. i will make the connection. "my take" is coming up. ♪.
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charles: i'm going to date myself a little bit. back in the day there was a great series of commercials featuring mother nature. she'd frolic in the woods with the birds and animal and wills come upon a tub or stick of what she thought was butter and great and refreshing butter. they'd announce and say it's not butter, it's margarine. mother nature would go into a rage and blow up wind and rain and thunder and exclaim it's not
nice to fool mother nature. >> that's a stick of my sweet, creamy butter. >> that's stick margin. >> chifon. >> it's not nice to fool mother nature. charles: so kind of reminds me when i see the market rally and everyone on wall street is betting against it. take a look at short inches on the s&p 500. at a two year high and hedge fund and leverage fund and smart folks set out a june bounce and it's not enough to trigger their anoer and the one part that bothers them. retail investors are making big time money. sooner or later that's going to trigger the elites and we'll see what happens when a cpi report comes out and events weaker than expected and a monster breakout that would sweep up the elites and the smart money folks and they'd jump in as well and they're short covering and take
lumps, there'll be a collective screen like mother nature thinking it was butter but it was margarine. that's the part they hate is being embarrassed; right. remember, to ere is human but to come up for them is unforgettable. that's okay, folks. stay the course and you're doing extremely well. it's been a tough year but you're making it through in part because you've got one of the best in the business to get you through the last hour of trading. elizabeth: you know that mother nature actress. charles : >> no, who? >> elizabeth: dina detrik. now i'm showing my age. thanks charles very much. we got to start with a fox market alert. bed bath and beyond. okay. keep in mind, this was a $4 stock as recently as july 27 . shares are jumping 36.75% and this heavily shorted stock seems to be among the most researched names on