Bed Bath & Beyond Stock Gets CRUSHED BBBY

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Episode Summary:

Markets RecapEnd of Q3BBBY EarningsKSS WarningsSPCE Gets OK

Guests:

Marc Chaikin, Founder of Chaikin Analytics 15:00

MEET THE HOSTS:

Dennis Dick

Twitter: https://twitter.com/TripleDTrader

Spencer Israel

Twitter: https://twitter.com/sjisrael

Joel Elconin

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https://www.premarketprep.com/

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Unedited Transcript

Coming to you live from downtown Detroit. This has been is pre-market prep with your host Joel Kahn. And this is a foul tile puppy here. Isn't it. And Dennis stick, I bet the petty, I will buy the stock for a pet with everything that you need to start your trading day.

Good morning, everybody. Happy Thursday. Welcome to pre-market prep. I'm Spencer there's. Joel. That is. And um, then this is worried. Is deja VU all over again? Pretty sure it was Dennis Dick. Who said that first? I we'll talk about deja VU markets. We'll talk about the last day of the quarter. What's under that bed bath and beyond actually retail as a whole, uh, Ryan Craver data warn us about this the other day.

Uh, and if you own retail stocks, then, uh, today's not going to be a good day for you. I'm afraid of between bed bath and beyond between Kohl's, uh, Footlocker. Uh, there are some pain in retail stocks today. We'll talk about all of that. Um, mark shaken is our guest today 8 35. Before I throw it to Joel, some calls to action.

Number one, hit that like button please. Number two. Stay tuned. After the show. After this show for day two of our small cap healthcare conference, you can win a free one year subscription of Benzinga pro would it be easiest? Small-cap dot com to see how you can do that through the conference today, let's bring on Joel's charts here.

And Joel, how are we doing on this Thursday morning? Oh, but there's a couple of ways you could look at it. Uh, the bottom line is that we're on 15 handles at 64 75. Uh, we caught abandoned, uh, four o'clock and 30 seconds. And that bid took us all the way up to 43 89. We sold off 23 handles and now we're back in the 43 60 handle where we chopped and slopped all over the place yesterday.

So end of the quarter, we'll see. We'll see how we end this one. Our crew take a little breather from that big move down 75 cents. Uh, gold up three 70 hanging out near that 1720 level big level there for support silver up a dime 2158 and a half Bitcoin up a couple of grand at 43, 1 60 Ethereum. Is up $156 and 25 cents.

We're going to bring in triple D here yesterday and a triple date. I think you got to just go to bed and just put to stack those spider offers up there and just let them come and get ya. It's literally the same market every single day. And if you guys haven't recognized the pattern, then you haven't been listening to this show because we've been talking with this pattern for the last two weeks and the market rallies all night and then starts selling off during the pre-market and then seems to sell off the majority of the day and then starts rallying right from the four o'clock clothes, rinse and repeat.

It's been the same thing again and again and again, I don't know who's Jack in an overnight, but I tell you, it seems like all the, all the moves here are overnight. And if you're buying, you know, at the open and selling at the close, you're absolutely doing it backwards. The play has been to buy at the club.

And Sandra and the pre-market rarely because it seems like by the time we get to the open, we've already leaked substantially. And that is the same story. Again, today we're up 40 handles overnight. I don't know who's buying us up 40 handles overnight, but they are way wrong because now we're up 15. So we get back to almost two thirds of the gains already.

Joel, this is just a, it's a weird market to a certain extent. I see that same thing, but here. And the reason that I'm a little bit concerned is that in this great bull run that we've had. We did have the overnight pops and the overnight pops, we would either like, we'd either hold them, you know, maybe give back a little bit or blast through that.

Pre-market I just keep going. Right. And, you know, maybe settle back during the day, but now it's the exact opposite phenomenon, you know, where we're getting these jacks overnight, they're not holding. And then they're not going back to that pre-market levels. So we're at the end of the quarter, uh, I'm going to reserve old judgments until the end of the day, you know, cause we could be up 50 handles.

We can be down 50. And I was throws a monkey wrench into that overall plan because we know typically you see this day actually close, strong. So what we are calling and what has been the pattern is this day closes week. But because of the end of the quarter, I'd be hesitant to just employ this strategy today for the simple reason, is that historically from a quantitative perspective and you know, Yeah, historically this day closes strong.

So that's why probably won't be employing this, the strategy we were just talking about today. We'll see if this resumes on Monday on your show and I've got advertisements coming at me. Okay. I know that's in the background. I don't know if you guys heard that. I was like, I was trying to put on the show for the chat and I'm you got the pop up ads and then it's like Blair and you know, the noise at me.

So it's like, okay. Um, also another thing just to keep an eye on you guys, you know, not the little, you know, how little too technical at times, but you don't last week when we hit this 40, you know, we traded it a 4,300 handle, you know, we shout out here like a cannon, right. And boom got up to 44 50. We have worked our way into this hand.

We did get near yesterday's low, but as of right now, we haven't shot out of a candidate yet. So we'll see how we end up today. Uh, it's hard to, it's not an inside day already because of the, uh, because of the glow backside, but man, I wouldn't be all that surprised if we even trade within yesterday's, um, inner day range and not looking for any downside bajur downside until we crack the low from yesterday, which is right near, uh, Tuesday's close.

But, um, we've got retail Jagen down to market today on Spencer and I said, and that, and that was just the, the being the last day of the quarter. Um, I don't know. And I know we've discussed this many times, but do you, do you do anything different today that you would normally do or do you prepare for anything different or is it just extra volatility at the close.

I can go to either of you. I think Dennis just threw himself on mute. So Joel, go to you. No, no. I mean, I just, don't, I'm pretty much the same way as far as portfolio adjustments. I mean, I'm getting a little nervous up here, but um, yeah, I just now we'll see, I mean, based on the last three months performance, unless we have a huge rally today, we're going to be starting Q4 out with the show.

And I haven't, you know, that since I don't even know, I don't even know what Q1, we still had the market going up right in 20. So Q2 is probably when it turned, but by the time it was ended Q2 from a quarterly basis June, we were right back up. So it's, you know, it's the first time in a long time. We'll see if it holds, I just kinda just got this feeling for the remainder of the year and it's just going to be, you know, we're not going to crash necessarily, but I just think the upside is just going to be much more, uh, you know, much, much sicker with offers in seller.

So we completely last triple date here. Huh? We did a, he may have had like a kid emergency. You just said, boy, he stepped away from his desk. So yeah. All right. Uh, let's go to the number one mover of the day and then we'll, and then we'll, we'll bring the market chicken on, in a few minutes here about bed bath and beyond.

My goodness, our earnings this morning, and they were pretty, pretty, pretty bad. So the earnings per share for the second quarter, they reported 4 cents per share, um, down from 50 cents per share a year ago, just under two bill versus a $2.06 billion asset. But the guidance is what's more concerning here.

They gave Q3 sales guidance, um, in the high $1 billion range versus an estimate of over 2 billion earnings per share of 0 cents to 5 cents. That's the range they gave for, for APS for the current quarter is 0 cents to 5 cents for a say, 28 cents. Big miss on BBB. Y let's get the charts up there. They are.

Whoa. Look at the. Top left. And, uh, I don't know if Michi Mitch's in the background, but I hope he was crushing bids when we started talking about this thing that was right in 18 75, 18 80. And, uh, I guess, I guess you just gotta, instead of wait to buy the dip and this one, you should've just been whacking beds.

I just look at the monthly shear and, uh, took Spencer and Mitch about a half hour to figure it out half hour, 25 minutes. Uh, you do, I mean, you are coming in to support. I mean, on days like this, when things are getting crushed, you know, it's hard to say, but what do you have? You have the low for the year at 1770, right?

That was your January law. It's augmented by three other lows under 18 bucks, 17 61, 17 99 for 1795. So hands down, you know, first time off that level, you may get a bounce and see if you thicken up around 18, but boil boy, that's a big level. Then you have a gap down. I get down on a monthly. That's weird.

Was that, uh, I wonder what happened that month or they must have had earnings. Oh, they probably had an earnings at the end of the month. So then you got a gap down to 1538. So if you don't like it at 1770 and you see 1538 today, uh, that'd be quite the beat down, but big stores, big coupons. I mean, what else can you say?

I think they go from 20% off. I think the 15% off, I think they're going to have to go to now 10% off of their coupons. Huge stores. I mean, this is just a bad day for retail. Yeah. Bad day for retail. Sorry. I was listening in the background. I just got, uh, I'm going to be off and on today. I have so many positions on and I'm just trying to work out some stuff here.

So, but I did hear listen to what you were talking about. I mean, bed bath and beyond. This is a disaster. This was a meme stock back in June. And remember the big move from 27. Oh, we're going to get the shorts and we're going to squeeze the shorts. High, short interest docs, all flying twice. This went up January and June.

You have to use these opportunities. I'm going to say it again, and we're going to take it to a meme stock conversation, but you got to use the opportunities when these meme stocks, squeeze, and you're just happened to be long them. These are fantastic selling opportunities. They're not fantastic buying opportunities.

They're fantastic selling opportunities. And here's a business that has been struggling for a long, long time. It went from 25 to 50 in about a week because it was a Reddit. Those are selling opportunities, not buying opportunities. So, I mean, here now, anybody who's stuck, you know, that bought it back. You know, when it was a meme stock and was going to go to a hundred or 200 and they were going to squeeze all the shorts is getting punished.

Rightfully so because fundamentals do eventually matter and fundamentals matter today on BB Y. I want to read you from the press release. Uh it's um, if you can imagine like a, a spin wheel of, of pick a reason why we had a tough quarter, they're going for all of them today. Greatest hits. Here we go. Um, this is from mark and the CEO of bed bath and beyond following a solid growth in June, we saw unexpected external disruptive forces towards the end of the quarter in August, the final and largest month of our second fiscal period, traffic slowed significantly, and therefore sales are not materialize as COVID-19 fears, reemerged amid the ongoing Delta variant.

We experience a challenging environment. This was particularly evident in large key states, such as Florida, Texas, and California, which represents a substantial portion of our sales. Furthermore, unprecedented supply chain challenges have an impact in the industry pervasively, and we saw a steeper cost inflation escalating by month, especially later in the quarter beyond these significant increases we had already anticipated.

So COVID check in supply chains, check inflation, check. I did one quick, good story. Uh, my brother-in-law was stuck in this stock big time, I think maybe 30, 35. And I think he averaged down on it, but I remember talking to him in January and this guy, I think he ended up getting out at like 45 and he just thought, man, what a gift?

He was like, what a gift? And you know, he's a retail investor. Long-term got caught average down what you shouldn't have done. And then he was just like, save money back in January, there was so many gifts. And we knew when we looked at our portfolios, you know, long-term portfolios and everybody thought they were a genius and I'm like, I don't even manage, actively manage my longterm portfolio of buy and hold.

And like I said, I think I was up in 96, out of a hundred stocks that I have in my long-term portfolio. And I was like, that's just not normal. It's not. So, I mean, everything was just going up, but then you had all these gifts on the side, like the bed bath and beyond the Reddit gifts where, you know, an AMC and GME to a certain extent, obviously were gifts as well.

And you obviously participated fantastically in the GME gift, Juul selling out perfectly on that one. But I mean, that's what this is when stocks disconnect from fundamentals and they're trained four or five, six times where they should probably be trading, what do you do? Yes, that's what she in. And you take the money and you run into say, thank you, stupid market for giving me a gift.

Uh, we are a triple B, Y just hit that level. We taught, I don't think I've ever done this before on the show and I'm going to do it and I'm going to stick my neck out and I'm probably going to be wrong. But I think the next 15 minute candles going to be a green candle, I've never heard Joel, call out a 15 minute candle before prediction, probably wrong.

Full disclosure, no position. I'm just saying, man, if I was short to say here, I had the 22 pilots or 21 pilots here, 21 to average, 19, 19 and a half, I would, I would be buying something, but. Been wrong before I'll put away more 17, 19 17. Oh, wait, 1760. W what was it that you said? So I, I said 1770 is where it's a bunch of monthly lows.

If people aren't stepping up there, then, you know, whatever they know more than me, I got to talk to mark shaken. He's here. Let's bring him on mark shaking. Good morning. Good morning. My Q4. Come on and tell me about it. We're ripping back to new all-time highs. We're going to 5,000 in Q4. We're at 4,700 on the that's.

What I want to hear. Uh, let's just put a point on bed bath and beyond the power gauge rating. Turn bearish on July 22nd, the stock was 29 63, and it stayed bearish ever since. And in 18 of the last 20 quarters, whether they reported better than expected or worse than expected earnings, the stock has always sold off the next day in amazing pattern.

That's all it matters. It's not even same with the numbers. It's the stocks. Uh, they react, but let's go back to the market. Um, since we talked a young Kapore, we finally got a 5% sell off. We got the five and 10 day advanced declines at oversold levels, which hadn't happened. We got heavy volume in the spy, uh, on the downside.

And yet we're still holding that a hundred day average in the low 43 hundreds. So till proven, otherwise, you know, we get through all this noise in Washington, which is really. Yeah, when you file it really mark, can you really, I mean, is there any attempt to fighting that on dead off, uh, stimulus, stimulus stuff?

I mean, so going to resolve this stuff, I mean, this is silly. We shouldn't have a debt ceiling limit, you know, and then when we play this dance every year, you know, it's the same, uh, tango between, uh, the guys who don't want to increase the debt ceiling, who contributed to it with all the spending. But these things always get resolved and a, the U S can't default on their debt.

I'm sure you guys have talked about it. We issue the debt. Everything's denominated in dollars. You can't default. It just, you just print more money. So this is sort of forever. Yeah. So until the markets don't like it anymore, but the bottom line is, I think there are opportunities. And one thing I'm looking at are semiconductors.

They're breaking our longterm trend lines. So now the ratings on Mo many of these are neutral plus, which means underlying fundamentals are bullish. And, uh, just as Joel, doesn't like, uh, or never calls 15 minute candles. I'm going to say that you've got to step in and buy some of these semiconductor stocks on this weakness.

And two that I like, um, midcap, cadence design. It's been a great stock CDNs. They provide software and, um, equipment for semiconductor manufacturers and a, a smaller cap, semiconductor Kulik and Safa KOIC all right. CDNs. When we got KL. I see. All right. So I think these are two that you want to step in and buy on this weakness.

I mean, I know logic never works in the stock market. But you've got the whole automobile industry. That's just starving for semiconductors. And I think, you know, you're going to get another wave in the semiconductor stocks then sort of in straight down here for awhile, right? Oh, I see. No, uh, KLA Lacey is, um, clack KLA Tencor.

Now this is a small cap, keel and soften. I've never traded a kale. I say that's based in Philadelphia. I think I've known it for 40 years. Wow. I knew stocks. We liked, I liked new and I always say gets a furniture company sofa that's cause you're mispronouncing it. Sofa. Um, I also think. Vaccines are going to be with us.

The COVID vaccine is going to be with us ad infinitum. So I think you got to look at some of these plays in the, um, in the medical field. And, you know, the obvious one to me is Moderna, um, the S they only have one product, but they've got 24 new vaccines in the pipeline. And there was talk a couple of weeks ago about a combination flu shot and COVID booster or COVID shot.

So. With only 27% of the world vaccinated and likelihood that we're going to need boosters, you know, for years to come, just like we do with a flu shot. I think you got to take a look at some of these medical stocks that have come down here, the double bottom from the last two days and modernists. So MRI and a, so it gives you a level to lean on.

I always like when I get two consecutive lows in the same area, so cause it gives you like that area. Now you've five points up from there. So I like that, you know, that spot there as is no trying it. Obviously some of these drug stocks have really been hit. I came on the show, um, a couple of days ago, mark saying the same thing.

I think some of the drug stocks have done would just spend punished severely. I mean, Pfizer, if we look at that, it's come from $52 when everybody had own it back to 42. I mean, we've had a nice pullback at some of the drug stocks. I think it is about an opportunity. Yeah. Yeah, I do. And I just think that once we get through this early October period where we got all this.

Fuzziness in Washington that, um, earning season is actually going to be pretty good. The one thing you have to watch out for is obviously the supply chain, uh, inflation conversation in the guidance that's coming up. Um, but remember when you're looking at the market here, Joel, you've got the blackout period, uh, for corporate buybacks in place right now, which means that they're the, you know, that underlying bid for the market is not there as we head into earning season in this two to three week period.

So that, that gives you the, you know, the sort of volatility that we're seeing on a daily basis because you don't have that bit in there. But I still believe, um, with all this liquidity in the system that we're going to, um, work our way higher. Mark. I've got a question for ya. And, uh, I got lucky. I want to lodge that with Dennis on, uh, on Microsoft, on that one, the, uh, the buyback I'm in, I, I know I'm stepping out on a huge limb here, but is it, is it premature to call this their, their IBM moment?

I'm an IBM bought billions of dollars worth of stock near the high. I mean, I know they do it, you know, they're not out there buying it that day at up at 3 0 5, but men on man, just what a rotten, Microsoft unusual year for it unusual off the March slow. Uh, given, I mean, besides the buyback here, let's just talk about these big cap tech stocks.

They kept the market up forever. Is this the place to be in Q4? Are there other IWM gonna lead us in 5 47. That was my other theme because interest rates are clearly going up and, um, small caps do better in a period of rising interest rates. Okay. So, uh, yeah, the, the, a mega cap growth stocks are going to be under pressure from a, uh, evaluation of P point of view, because if, if we do get the 10 year above the old highs at 1 73, uh, on a yield basis, then, uh, you know, these auto strategies are just gonna kick in as they did earlier in the week and put pressure on mega cap tech.

And, uh, that's why I mentioned Qlick and Safa in the semiconductor space because small, I think small caps are going to do well. Now having said that our power gauge rating on the IWM remains bearish, but we're in the middle of that trading range, which now is almost eight months. Going back to February.

And I think the likelihood is that we break out to the upside at some point in the, in the fourth quarter, wait, interest rate is clearly going up. You mean like getting up off the floor, but not much more than that, right? Well, no, the 10 year, 10 years working up toward the high end of the range, um, you know, ten-year peak what an April, I think.

Yeah. At 1 73, 1 75 and with the supply chain issues, wage inflation and, um, commodity inflation. I think that, you know, interest rates, they heard Powell, the fact that on the day of the, um, his fed minutes in his comments, the market went up, not down and interest rates. Didn't budge until Thursday, Friday.

Doesn't mean people weren't listening and you know, clearly they're going to stop. Uh, they're going to start tapering, whether it's December or January, And, you know, that's not an interest rate hike, but yes it is. And I've been, I've been out there saying that, um, you know, uh, sort of tightening is not the same as raising interest rates, but taking the stimulus, taking your foot off the pedal, ultimately leads, especially in an inflationary environment, which, you know, I don't believe in transit.

Uh, you know, as far as Dennis has been talking, it's funny, you mentioned that mark, because Jerome, I'm not sure if you're on palpably is going to neither at this point. Cause if you, I don't know if he's always said yesterday, but he was acknowledging that it's persistent, persistent little bugger does that's not during the dollar trees jacking up their price.

I mean, do you think they're bringing them back? No, it's the dollar 10 tree now

Dennis, Dennis. This beer can analogy, you know, and if you talk to builders, um, w our contractor was around the other day and he said one client's complaining because the cost of the house is so high. And he's saying, well, look, lumber futures went all the way down. I mean, this is the client from hell, right.

He's watches the lumber futures market. And our contractor told them, yeah, that's wrong. You're talking about finished lumber and treated lumber. And he said, that's not going down. In fact, it's instilled in short supply. So, uh, you've got to look at what cues you're looking at. Yeah. The lumber futures went down, but the cost of lumber to build a house is still way it's not even just the lumber.

It's every single aspect that goes into the house. Like I just keep getting hit. Like my, my electrician was, it was a coil of wire, you know, the wire that they're running or whatever, it was $40 last year. It's 120 now the same exact coil tripled in price. So it is just not lumber. There's so many things tripled in price from there's a company as a shock to play that.

Dennis it's called Atkore. It's another TKR wait, say it again. Sorry. 80 K are great stock. I've recommended it. It's been my bullet stock of the week. Um, and it's, it's an interesting play because not only do they provide. It just peaked above a hundred, not only do they provide, uh, you know, at the industrial level, but for single family homes, the kinds of wires you need to put in a charging station and California sort of mandated the new homes have charging stations that may become a trend.

And at core is a way to play that trend. All right, mark is coming to come in hot with today with some names he's dropped too late. Now. Now you think mark, are there still more? Cause I'm looking at this one a year ago. It was 20 now it's 90. I feel like I know, but the earnings are good and the stock periodically pulls back like most small caps do.

So you're in that little mini pullback phase here, right. Into sort of support area. So yeah, I mean, Hey look, I was looking at large cap stocks and everything I like was selling it, you know, 40 and 50 times earnings. You got to adapt to the environment you're in and yeah, 20 to a hundred looks expensive, but if you're looking out a couple of years and looking for where the growth is, it's in these lesser known names, like an Atkore like a KYC.

And I think you have an edge in the small cap space that you don't necessarily have in the large cap space. Nice. All right, mark shaking, coming in a hot today with some, some symbols that, that we don't talk about very often or wherever actually for that matter ever, but we love it. We love it. Mark shaken, high market veteran, founder of Chaikin analytics, creator of the check and money flowing the Gator, uh, joins us every other week on the show.

Thanks a lot. Thank you guys. Always a pleasure, always a pleasure to talk with mark. Hey, smash that like button from mark. Let's get those likes up. Come on. That was those three concrete ideas he gives. Good. Mark always comes. Mark knows a lot of different trading ideas. And obviously, you know, I wish we would've known the, the wire thinks I've known about this for probably a few months here already on this Atkore.

So could been buying this one back at 65 or 70, if that was a way to play it. But I mean, there's so many issues and that's why, you know, people who say, oh yeah, well the housing prices keep going up. They can't keep going up at 20 20%, but let let's look at what the build costs have gone to. I mean, how current housing prices are simply a reflection of what it costs to build a new home.

So you get a discount it's like a used home. So, you know, if you can build a home for $500,000, It used home might be 300, $400,000. But when these same homes are costing, you 800 or 900,000 to build now, well, somebody is going to say, well, if it's going to cost me 900, I can buy his home down the street for 300.

I'll do that. And that's what brings the housing prices up 400, 500, 600. So if you think we're going back to where we were in the housing market, the housing market's going to crash, and we're going to go back and the housing price is going to fall 50% in order for that to happen. The building costs need to fall 40 or 50%.

I don't think these builders are bringing down their cost anytime soon, because half of it's labor almost. And the labor costs coming down.

Yeah. If you could find the labor, I mean, I count, I count my lucky stars because we were, you know, we were considering for years to do, to do a build and just the more things went right. No, no, we can't, you know, no, this is hard made you feel like Dobbs and this and that and everything, and would be absolutely be getting crushed right now.

Absolutely. I living that life, Joel, I'm crushed. Every single thing that comes in is coming way above

and it's way worse right now. Like in the COVID environment, it's like that on steroids. So, I mean, it's horrible to build a house right now. Obviously I haven't like can, like, we're supposed to have a shop and I put that whole thing on hold. I'm like the prices are just too nuts right now. I'm like, I'm holding off on that part of it.

You know, I can't hold off on the house cause we're into it. But I mean, I can totally hold off on the new show. So, I mean, you know, at the end of the day, you know, you hope everything continues to increase over time, but, you know, we went in this huge bubble and I'm building right at the top of the bubble.

I feel like, you know, I feel like there, you know, the billing cost could come down and some of them probably have like lumber prices have come down to a certain extent. I know, you know, mark was saying, you know, that we know the future's come down, but the cost of the two by fours have come down to, I mean, at home Depot and I'm in Canada, obviously, you know, they were, it was 10 99 for a two by four, uh, going back six months ago, those same two by fours are going for like 4 99 now.

So some stuff has come down. But a lot of stuff has not. And the labor has definitely not. The trades have not, and you can't find stuff, but it's not a home billing show, but you know, home building is obviously a portion of the markets, a big portion of it. And it's a huge part of this inflation story as well.

And also the other thing, I mean, and who knows how far it will be concerned down the road, but, you know, people are, you know, borrowing to buy and build these houses at these inflated values. I mean, I know we're not looking at a, uh, you know, 2010% interest rates, you know, so they're thinking, oh yeah, I can do this at 2% interest rates.

And it's the driver. You build the bigger home when you can borrow more Juul. So you can blame that for a lot of it too. I mean, it all goes back to the fed and easy money. So you know that the inflation, they wanted inflation for how long Spencer for how long and saying, we need to get some more inflation, even though they had it in pockets, they wanted inflation, they needed inflation.

You got it. Why are you referring to the 2% or the whole mandate? Yeah. Then we need to increase inflation. This was what Powell was viewing at us a year ago that we're trying to get inflation up to 2%. Well, they've clearly overshot that goal massively. And you know, and, and obviously now it's like, how do you get, you know, how do you put it back?

How do, how do you cool it? But the only way to cool it is to raise interest rates. You can't do it. So I don't know how you fix it. Uh, yeah, that's a massive problem. But again, it's a massive problem for cash too. That's why I keep thinking, like, I don't see this market crashing, even though you can say, you know, that, you know, we were overinflated in a lot of stocks, you know, are, have had incredible rough.

I just don't know where you go. I mean, cause you know, you're losing a cash. So I, it's a very tricky environment because we have not seen inflation like this in these numbers. And I know, you know, when they're saying 5%, we know it's a hell of a lot higher than that, but we haven't seen this in north America in a very long time, probably going back to what that like the early nineties, if they're going to say the seventies and I was like, don't say early nineties, we had pockets of inflation hitting too.

Um, but it's been 20, 25 years since we've had inflation. Like we're seeing. Yeah. I mean, yeah. And when there's and how do you outpace it? You buy stocks or commodities, you know, like, so, so yeah, you've got to buy physical assets. Right. So I just don't know. I don't think so. The way I look at it here and people say, are you loose?

What's the market. I want to raise cash, but you know, and I have some cash, but at the same time, I'm like, the cash has been really bad. So I don't know where you go, where is safe right now? Joel, like you tell me, like people normally would go into gold and he'd say, okay. Yeah. Well, if we're growing in an inflationary environment, you absolutely want to own.

But gold and silver has been an epic disaster. It's not responding to inflation at all. It should be going up like gold and silver historically should be flying in this inflationary environment. And we're seeing the opposite. We're seeing it sell off. So then you say, okay, we go to digital gold and crypto, and maybe that's where the people are going now, but it's tricky.

It's tricky to, you know, put on your long-term investment cap and see how this all ends. Yeah. You know, what's crazy is on days when the stock market goes down, Bitcoin is down too. So I don't know what kind of totally possible, I, I don't know what kind of a hedge that is, but, um, it's supposed to be a hedge.

Oh, wait and gold too. Like gold used to always go opposite the market. I know Congress has got some gold in your portfolio for the long time for the insurance aspect of it, but let's be honest here. I mean, gold has not been a good hedge for a long time. I don't know. Do I want, do you want to own gold?

Yeah. You should, but I don't know, are we in a different environment now where Gold's not going to respond well to it? Hey dad, as much in my Peloton, I don't know why anybody, my age would own bod, treasuries or gold ever, ever like, or maybe not ever made me for the next 30 years. I don't know. I know I talked to my neighbor and he's loaded right up and gold.

Um, and he's, you know, an, obviously not a trader, but just saying I see all this money being printed and I want to be, you know, headed, I see inflation happening and I think gold is a place to be. I mean, and if you read an economics textbook, it will tell you to exactly. I'm questioning if it works or not, like maybe we're going to regret.

Maybe we're going to come back to this episode a year from now and see gold, you know, uh, you know, the GLD at 2,250 and be like, wow, that was so obvious. It's an obvious trade, but it's not working. And it hasn't been working like, I mean, when your trades not working and people have been flying, Peter Schiff has been preaching to fly into gold for these exact reasons for a long time.

And it hasn't worked. So I don't know. It's tough. It's tough. If gold won't go up in this environment, what environment is going to go up? I dunno. And the, the sister to the inflation. Thing is supply chain concerns. And that is exactly what is hitting, uh, Kohl's this morning because bank America came out and said, inflate, uh, supply chain problems.

We're going to downgrade calls today. And case has skin hit on that Footlocker. It was also in that, no, they're getting hit on that. There's a bunch of socks mentioned in this note, but Coles and Footlocker were the main two and the Coles. It was a wait, let me just pull it up here. Cause I added all over here.

Kohl's was a downgrade to underperform, gave it a $48 price target, uh, Footlocker. It was a, um, it was a reinstatement underperform for a price target 45, which is not that dramatic, but, but for Kohl's a, you know, $48 price target, we were at 54 yesterday. We're at 59 now 49 now. So cool. No business being up at 60 though either.

I mean, it was probably had no business being down at. Back, you know, and we thought everything was going under, obviously it was $40, but it had been in cyclical decline for a long time. Like you you've seen the brick and mortar not doing very well. So even before COVID hit Kohl's was like 45, 50 bucks, then COVID hit and it really got ugly, but did it have any right?

Like w w Cole's in a better environment now than it was before COVID hit? I challenged that. So to say, you know, maybe it should be where it was and maybe 49 is a happy place for it, but 60 just felt like an overshoot. So I don't know, I'm not coming in and buying brick and mortar stocks on a Deb. You know, I'd be buying tech stocks on a dip.

Maybe some of the stocks that mark shaken just mentioned that are still in a good environment, buying brick and mortar on a depth, what works. It seems like on dips or stocks that are an uptrends, you buying those on depths, Coles, not really in an uptrend anymore. And I challenged whether it should have ever been in a hardcore uptrend other than the fact that it really overshot during.

Uh, they're hitting it. I'll give you a couple monthly lows to keep an eye on, uh, 48 65 was your August law and then drops to 46, 46 or 46 56. Was your July low in Kohl's? I don't understand. These stores are so huge. I got so much stuff in there. I'm like, whew. And then you see like 40 of like the same, like you walk by the men's department.

I went to target to get something and I'm like, who's going to buy one of those. Let alone 40 of those. I don't know. Well, Mitch and I were talking about this like an hour ago and he did bring up a good point. The one thing Coles has gone forward is the Amazon return program, which, which at the very least will get you in this store right here.

Whenever you buy on Amazon, you can go return the call by Amazon. Then if you, if you're buying Kohl's because of Amazon, why not? No, no, that wasn't the point. The point was they got people going in the stores. Yeah. They going into the stores because they're returning the stuff from Amazon. So the Amazon is the driver.

Why not own the driver is what I'm. So I'm I get your point. I'm just saying like the whole reason, oh, this is going to be huge for us. We're going to get Amazon returning products to our store. They bought online. Like, I mean, if you have to derive your demand from another company's return policy, that is not a company that I want.

I am not arguing against you. I'm just saying, getting foot traffic people in the stories, this is a driver. That's all I'm saying. I'm actually not Amazon. You're saying I didn't say it. Mitch said that. I agree with you, Dennis. Um, but it's something I wound up today as I can call it something that Mitch did.

I ended up managed to defend him. I did. Did I relay that? Correct? You did Spencer. And to make it even better, they also, they give you free. Dollars for their store. They give you $5, like go spend it. So if you return the stuff from Amazon, they give you a Kohl's dot. Whoa, wait a minute. It used to be like 10, there was some major inflation going on.

That's deflation. That's only like a five now. No, no. Cause it's wow. Cause their coupons they're couponing less. That would be inflation, whatever. Okay. Thank you. Moving on. Um, did you guys see space today building to use? Give me a hard time with the chat this morning, cause I bet you Spanish is going to mention space.

Well, I am because it popped after hours. Cause I remember remember that FAA inquiry where everything was on pause while the FDA looked into their, their, their flight deviation, the flight path deviation from back in July. Well that inquiries over FAA says thumbs up. You're good to go space. So Virgin galactic popped on that.

Got to above $25 last night. Space flight pop is a selling opportunity. So stop making new lows on the move yesterday. We get a pop because the inquiry's gone. This isn't changing. The fact that one, I didn't know, it was a 32nd experience in space. You know, I think that turned off a lot. I always said, I'd love to do that.

And then you find out you're only going up there for 30 seconds or a minute of feeling actual space. Part of it is like, well, it's 350 grand for a minute. That's kind of expensive. So I've not liked it since I actually, they successful launch because then I learned more about it. And I was like, this doesn't seem more 350,000 whatsoever.

So they have people sign up. They'll eventually get some revenue from it. I don't think this is a huge growth industry. I don't think it's worth. The market cap is currently is I like the story back last year. Now the story is completely broken. The stock is went from hot ice cold. I'd sell rallies in this, including.

Ah, got it done. It got real over, down on that pop and the after hours, once again, your 4:00 AM or this was after hours. So, you know, same thing, you know, trading got up to 25, 24, you're a buck off that, uh, that was a good area for you. We're looking at your dailies cause you had, uh, no, not really couple highs in that area, but use that as a target now.

Let's see. Was there anything now the highs were in the higher 20, uh, in the higher 20 fives, but right now we're under your two day high of 24 9 before. So keep an eye on that. I mean, if you look at, for any major upside, got to get through the two day high, 24 94, all right. We're going to do a ticker time in a second here.

Uh, but I just want to talk about a couple of UV stocks for a moment. And one of them is Laura's time motors ride. We are going to talk about this tomorrow as well because everybody Marcus had called her coming back. Nice. And then I think every Friday, uh, for the rest of the month, I'll clarify that. But definitely tomorrow I'll tell you that for a fact.

So we will talk with tomorrow, but there is news on ride today and it is not good. Uh, the car, apparently it's good to stocks up. No, I'm saying it's not good. The company that named itself after a town that, and they made a hole, but it was all this fanfare where we're buying this GM plant that's in Lordstown, Ohio.

We're going to turn it around. We're going to bring in the jobs to middle America and fast forward two years later. And we are selling that plant because we need them. And that's what's happening today. They're selling their, their, their, their namesake plant to Foxconn. I didn't see a price tag on it. I don't think it really matters though.

Um, so th th their, their one and only production facility is going to be is, is not going to be there anymore. Um, so I'm not quite sure what that means for an Evie company anyway, Lordstown selling their plant good news. They get some cash venues. Obviously this is a survival mode, right? I mean, and, and in related news, uh, our, I don't want to call them our friend, but, uh, someone who's been on this show before Steve Schrader, the CFO of workhorse workhorse, I'll remind you, doc workhorse has the technology that works time motors uses the CFO of workhorse has, has left the company, Steve Schrader.

So, um, not. In the Lordstown of workhorse land today? Well, I don't know. I would say it's very good though. When the Lordstown cause it's up 50 cents, so I, why it's trading up on bad news is, you know, that's often a good sign with stock trading up on bad news. Um, I don't know, eight, eight major resistance on ride though, because they're getting cash, they're getting cash in their pocket, but how are they going to make any cars without a production facility?

Well, maybe they'll run it. I mean, is, is Foxconn gonna immediately turn it over, you know, turn it into something else or do they get, is it a buyback maybe? Or they get read it and they, you know, sign a lease on it or something. I, uh, that's, you know, it's the only thing I could see and I don't know. I don't know.

I mean, I don't know. I don't know. I don't know any of their, the ABC story as I was trying to get hot before the market rolled over a couple of days ago. I will say that some of these Evie stocks, just like the lucid motors, um, was trying to get hot before the market rolled over. No three days ago or when we had the really bad, yeah.

Two days ago, I guess. So even Fisker had rallied up significantly and then you get the pull back here. So I, it's hard to be long ride when you're talking about them selling their production facilities, but, you know, I will say, and I'm not, I'm not long ride not going in. And I will say the technicals, you know, the, the diesel stocks, it stopped going down a lot of these place.

So technically, you know, they're, they're actually showing a little more relative strength than they were a month ago. A lot more relative strength. It's interesting. You mentioned that and ride popped there two days ago. Also pop there at the end of July. You almost got there in the pre-market. Now the thing that's interesting is it's like bid here it's 7 85 or bitter offered, but it's holding upright just below that level.

So you get above eight or. No, maybe get a little bit of short covering I'm being, I'm being corrected in the chat by who, who, other than Chris catchy, uh, who knows everything. Uh, so they're selling the factory, but they're, uh, I'm sorry, they're going to use it. They're selling their plants, but they're still gonna use the factory, I guess.

I, I read that makes sense. All right. So I stand corrected on that, I guess. I guess that's why the market, they would like that because they're getting, they're not, they're still gonna have the ability to make cars and, and get some cash, so, okay. I guess that makes more sense than what they, when I was saying.

Um, so thank you, everyone on the chat for correcting me. I don't, I don't mind being corrected if it, if it didn't make sense that they would, did it make sense that they would view the market would view that as a positive and positive? Although, take this with a grain of salt, it's trading up 6.6, 6%. We know those 6, 6, 6 numbers are kind of.

All right. It's 8 49. Uh, let's do some, take your time and drive, particularly in the chat. We'll cover a few of them then the next 10 minutes. Was there anything else on my list first? Um, Frugo had a headline. I don't know if you all saw that, uh, sports book announcement or integration with football, with pay safe.

Holy man, this has been like gross stock implosion all the high, multiple stuff. It's it's really, even yesterday you can say, oh, S and P nice day yesterday held up now for the growth stocks. You see Kathy K or K K new lows straight down. So there's so many higher, multiple stocks that are just getting the beats in this environment and deservedly.

So, um, because a lot of these stocks had no rights to be where they were. W what's doctor, just start on before I went to that

I still liked the man. I don't like the chart at all. And when their stocks are making new lows, you got to go and break down and new lows. So I'm not going to be the hero and say, this is the bottom. Uh, close right near the lower the session yesterday. Getting a little pop seems. It's just a little bit of good news here.

Uh, let's look at the range from yesterday 2277. If you feel like you want to lean on that, I'd be more comfortable if it maybe put another low in today at like 23, whereas it trade in at 23, 22, you know, make a little low above that close green on the session and then maybe rally. But that's the only number you have.

I don't even think. Ooh, what's this a December low, uh, December low. Oops, blow that 2361. So if you want to buy it on strength, let it maybe get about 2361. Try and pick a bottom here. 2277 yesterday. Oh Lord. Jim drops ticker that I haven't looked at this chart for a while. Rocket are Katie. This is, this is one that I was thinking about that I w I want to like it.

They just can't. I want to like it as well. I've wanted to like this stock for a very long time. I've owned it a couple of times and I keep getting accused, making, you know, Lou, Lou lows, and it doesn't rally on good news. I'll say there's huge support at 16. So this doc has had huge support. I'll give you that 16, 23 lower just going to round and call it 16.

There is nice support there, but man, the trend is ugly. And I've said for a while, I think that they should put in a divot or something. I do own a piece of that. UWMC cause it has the dividend, but that hasn't helped at all. Either that stock's been an absolute dog, so I should just buy it and never look at it ever again.

But I said, well, no, and they just keep going down. That's been a bad call to just buy and never look at it again. I mean rockets near all time lows. Is that not? What do you mean? It works for. Yeah. In certain stocks. So rocket, this is right near the all-time low in our KT it's yeah. Yeah. And they had the dividend too.

I don't know. We talked about this when you know that when the environment was really good. Right. And going up the few times when it became a Reddit stock, that those Reddit stocks man, when they get these kinds of pops, you gotta ring the register. One thing I've learned from social media is that when you're a stock rips up 100, 200% and you're just, you know, and, and you're just lucky enough to own that stock that day.

Maybe you anticipated or something, you know, and that's good too. But I mean, when they give these 20, 30% pops in a day, because it's the top stock on. That is as selling opportunity, just like Corsair gaming. I was, I bought that at 40, I was a dog, dog, dog and went down to 32. I was like, ah, it's just not working out then all of a sudden, one day it's a top mentioned stock on Reddit and opens it 42.

I was like, thank you very much. I got my money back. It's 30% pop overnight on no news. It used to be like a stock or pop 30%. It was getting taken over. Now it's popping 30% because it's the high mentioned stock on Reddit selling opportunities. Thank you, Reddit. True. Okay. Couple people mentioning Teladoc.

Um, in Chad, the fit there it's at a 52 weeks, 52 week ago is where it's at zoom Teladoc, all these Kathy stocks, man, these are dogs, man. These were the pandemic darlings. And you know what that obviously Delta, you know, is an issue, but you know, it doesn't seem like it's as bad as you know, we were in the first, but this wave doesn't seem to be getting as bad.

We don't seem to have the reopening going. We completely away. This was $300 stock. It's now $125. Is there a certain point in time that Teladoc makes sense? Yes, but I'm don't want to be the hero and stocks are going straight down. Why be the hero it's breaking down? Making new lows of trend is awful. It's tough to make money on buying stocks and down trends.

Yeah, we've come down hole all over two for one stock split. Uh, what's your you're below 1 35 32 next monthly Lowe's down at 1 0 2 0 1. I don't know what to say. I mean, 10 bucks off yesterday or where are you? Yeah, I don't, I can't there's well, I'm looking for triggers in the chat that we don't talk about too frequently.

Um, DocuSign DocuSign though. That's a product that everyone is going to continue to use because it's just superior. I mean, I've, like I said, I bought a house I've sold a house using DocuSign. It's so smooth. I mean, I love that product. Valuation's crazy is eventually DocuSign. Have it zoom moment. It isn't going to be as bad as zoom.

It isn't going to be as bad as Teladoc. I don't think could eventually DocuSign have a date with 200, again, it's possible, but great. I mean, zoom is a great product too, but I don't see like DocuSign, everyone uses DocuSign. Like we said, zoom, but people are using different, you know, uh, web webcasts, you know, we're using the streamers.

We use different stuff. This competition has come for zoom where DocuSign, I don't know if it's going to be competition coming for them in that industry. Like, that's just the way people are doing business now. So fantastic that they've, you know, become the player in their business. I don't like the valuation.

Why couldn't buy it though. I don't know why. Why they're they don't have any big competitors? I mean, it's not, why are you going to go away from doc? Is somebody going to make that better? I mean, it's already as how do you make that so easy. How do you make that better? So I'm sure there is some competition, but now DocuSign is just, it's like Google and search.

You've got to come up with a better search engine. See how banks. I mean it populates the thing. It it's easier to say let's Google it. Let's bang it. I mean, dang. It was way easier to say. That's why they called it. Bang, bang it. But it's still around all these years later. That's a victory in itself. I think.

No, you said the number one on CMBC taken from CNBC. They take our contents. We can take theirs too. They said yesterday on CNBC, that the number one searched thing on bang is Google.

I got a bang and I got to go to Google on bang. Oh, that's true. But that's hilarious. Gotcha. I wait, I knew a guy in college that if you wanted to Google something like he had the Chrome at the Google Chrome browser, he would go to his, his, his, uh, URL tab. Uh, whenever he would go to google.com, he would go to the Google homepage and then he would go to the search it from the Google homepage.

I would say. Just type it in, just type it in, just go. And anyway, it was all thing. Okay. Let's let's do some more thinkers here. A couple minutes left, uh, op start ups T once we have a hot minute. Yeah. This is FinTech, Mr. Stock. Eventually it has a cool off period. Kramer is pumping, pumping, pumping, but he's been pumping that for a while.

So give him some props. He's been right on that for a long time. It tried to go down the other day and Kramer was this all already ran a segment on mad money for stocks, for growth stocks that he'd be buying the dip bond. And this was one of them in a pot, 10 bucks on that segment. And it hasn't really looked back.

The other stocks. He ran on that segment where a from, um, upstart, I think it was a sauna. How is the firm doing? One 14. Oh, okay. Are you in it? Oh, you got stopped out. That's right. Should I stop? Should I be in it? I don't know. I don't know either. I don't know why we should be in at this point in time. It's a tricky market to call it.

It's a fantastic day trading market. I hadn't, you know, I've had one of my best weeks, you know, in a long time, last week because of all the volatility from day trading, but from like a swing trading perspective, there's a lot of chopping from a longterm investing perspective. It's been tough. So it's a great day trading environment and overnight trading environment, but that's about it.

So I don't know, from a swing chain perspective, I tried the K and G stopped out. I mean, you know, I've tried a few swings. I've stopped out. I don't know if I have any swings on right now. I think I got stopped out on all of them and that's what stops are for, you know, so that when the swing doesn't work out, you don't start losing serious.

Uh, focused number. I mean, it's a pretty valid tile stock and the ups T but I see the old time closing I at 3 24 and then it would write that next day that had a at 3 23 59. Now I know that that's a ways away from the previous day's high, but it's close. Still closed it out on 3 30, 1 99. New number 3 31 99 old time closing high yesterday saw high 32, 10.

So big number 12 bucks off it lets you get above that. I see more downside in ups T it's 8 59 guys. Final thoughts before we go. Final thoughts before we go, it's hard to say an inside day from yesterday's intraday rain yesterday. You did eat and y'all call that angel called the 15 minute barn by Beth.

Um, that is the first in the last 15 minute buyer I've ever called. I was going to call myself out on it. Triple B Y fill in the monthly gap. Now, I guess I might as well double down and say, well, you filled this monthly gap here in 16. So there you go. There you go. No more 15 minute charts for me. Cause you have a dad joke for the day.

A dad joke. Oh, there been a couple of good ones, but just one. Um,

dad, two of them dad's love saying I don't care who started it. I'm ending it. And then the dad's love adding Bicester to the end of everyone's Nick as a nickname for her. That's her Meister. I felt plus we missed a lot of, a lot of tickers here. I'm going to cover those on this, uh, end of Q3. Mark is boy.

I'm kind of bearish. We'll see what happens. I don't know how bullish the market is, but again, the one thing to consider is that the trend has been to sell the overnight rallies, which we have already seen here this morning. The one issue I have with coming in and selling us up 13 is that we're already significantly off the highs.

The second thing is that is the end of the quarter. And historically speaking, I started the show saying, it's going to say it again, just to remind you, historically speaking this day closes strong. We will see if the recent weakness trumps that, but from a quantitative perspective, you don't usually want to be selling early in the stakes that often closes strong.

All right. Thanks a lot, Dennis. Have a good one. Everyone smashed out like button subscribe if you haven't already, but to end the stream, please remember all the information from our show is meant to be used as informational purposes, not a foreign investing or trading advice. The day two of the Benzinga small cap healthcare conference starting right now, I'm going to end this in a redirect to that everyone in progress.

Good luck and stay green.

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