SHAH GILANI STRATEGIST AT PATH.
THE SHOTS GET TO SEE
THIS MORNING. LET'S START WITH
TECH SECTOR OF THE NASDAQ UP
ONE AND A HALF PERCENT I GOT TO
GET YOUR TAKE ON TECH IS THE
SELLOFF A THING OF THE PAST.
>> I DON'T THINK YOU WE'RE
GONNA KRISTIN I THINK WE'VE GOT
A LITTLE BIT MORE
NERVOUSNESS AHEAD AND REALLY IN
MARKETS HAVE BEEN DRIVEN BY
RETAIL, IT'S REALLY UP TO
RETAIL RIGHT JUNCTURE FOR
RETAIL. THEY CERTAINLY HAD A
GREAT RUN PULLING
AND PUSHING AND JUST DRIVING
MARKETS HIGHER THE SELLOFF
PROBABLY SCARED A LOT OF RETAIL
FOLKS LAST WEEK THE NASDAQ
CORRECTED TEMPER BY FRIDAY NOW
IT'S QUESTION OF WHETHER THOSE
RETAIL INVESTORS ARE GOING TO
BUY THE DEBT INSTITUTIONAL
INVESTORS HAVE BEEN TAKING
THEIR CUE FROM RETAIL, SO WE'RE
GOING TO SEE WHETHER OR NOT THE
RETAIL COMES IN BUYS A STEP IF
THEY DO THIS WEEK IN THE MARKET
HAS A CHANCE EARLY TO GET BACK
GOING NORTH AGAIN I'M NOT SO
SURE IT'S GOING TO HAVE THE
ENERGY TO DO THAT I THINK WE'RE
IN A TOUGH SPOT. I THINK WE MAY
SEE SOME
FURTHER DROPS I THINK MAYBE
IT'S POSSIBLE WE COULD SEE 5 TO
10% DOWNWARDS
FROM HERE.
>> IT'S ALL RIGHT LET'S TALK
ABOUT THIS TIC TAC DEAL ORACLE
REPORTEDLY WINNING THE TIC
TAC SWEEPSTAKES BUT OF COURSE
STILL QUESTIONS ABOUND WHAT DO
YOU THINK OF THE POTENTIAL DEAL
AND WHAT IT COULD MEAN FOR THE
TECH SECTOR, BUT ALSO FOR
ORACLE.
>> IT'S A IT'S A MYSTERY
BECAUSE THAT THERE'S NO REAL
DEAL FACT OUT THERE AND FROM
WHAT WE KNOW AT LEAST WE THINK
WE KNOW IS THERE
ISN'T IT. A MERGER AND
ACQUISITION THERE'S EVEN A DEAL
HERE THERE IS A PARTNERSHIP OF
SOME NATURE WHICH MS. WE NO ONE
KNOWS WHAT THAT
NATURE IS IIHS ORG ARE GOING TO
HOST TICK TOCK IN ITS CLOUD
THEY GOING TO BE THE
GATEKEEPERS OF THAT
ALL THE RHYTHMS NOBODY REALLY
KNOWS WHAT THAT MEANS AND
BECAUSE THEY'RE SO LITTLE OUT
ON THE DEAL I DON'T KNOW THAT
IS GOING TO HAVE MUCH OF AN
IMPACT ON ORACLE ALL I DO THINK
IT'S PROBABLY BENEFICIAL FOR
WALMART IS THEY GET INTO THE
DEAL THEY CAN TO TRY AND GET
INTO THE DEAL THEY WERE
APARTMENT
WITH ME MICROSOFT THAT FELL
APART WHEN MICROSOFT PRETTY
MUCH KNOCKED OFF THE BLOCK, BUT
WALL HAS INDICATED THAT THEY
WANT TO COME BACK IN AND DO
SOMETHING WITH OUR BUT THAT'S
WHAT SHAPE THAT TAKES NOBODY
REALLY KNOWS AT THIS POINT IT'S
QUITE A MYSTERY IN
AND I DON'T KNOW THAT THAT'S
REALLY MOVING TECH FORWARD, I
THINK TECH IS MOVING FORWARD
BECAUSE OF THE SELF LAST
WEEKEND BUYERS ARE COMING IN
HOPEFULLY TO BUY THE STEP
THAT'S ALL, BUT I DON'T THINK
THEY TAKE TALK NEWS MOVING THE
MARKET.
>> TALK ABOUT THE HEALTH CARE
SPACE OUT WINNERS AND LOSERS,
IT'S NEAR A RECORD HIGH BUT HAS
HAD A HARD TIME REALLY BREAKING
NOW SINCE THE VACCINE, THE
NOBLE VACCINES. ALL OF THAT
NEWS HAS BEEN OUT OF THEM
MARKET THAT THERE ARE COMPANIES
IN LATE
STAGE TRIALS. BUT TODAY FOR
INSTANCE GILLEY ADD A BIND
IMMUNOMEDICS IT'S 4.21. A
BILLION DOLLARS. IT DOES THAT
CHANGE THE GAME IN HEALTH CARE
SPACE.
>> NO IT DOESN'T IN MY MIND TO
ME IT'S A BIT OF A DESPERATION
MOVE ARE GUILTY
AS PART. IMMUNOMEDICS
LOSES MONEY AND IN ORDER TO BUY
THEM AT PRETTY MUCH TWICE THEIR
CLOSING PRICE
ON FRAUD ID GILLEY AT IS TAKING
ON ANOTHER 6 BILLION DOLLARS IN
DEBT HIKING ITS DEBT PILE UP TO
MORE THAN 30 BILLION DOLLARS IN
SPENDING 15 BILLION DOLLARS OF
ITS CASH POSITION TOWARDS THE
DEAL. SO I DON'T THINK THESE
BENEFITS GILLEY AND ALONG WITH
A LESS IMMUNOMEDICS
HAS SOME STAGE 3 DRUGS THAT ARE
ABOUT TO COME
OUT RIGHT AND BOOST THEIR THE
POTENTIAL
EARNINGS FOR. ABOUT 4 BILLION.
BUT RIGHT NOW KELLY HAS BEEN IN
TROUBLE THE STOCK HAS BEEN
TRADING TERRIBLY GILLEY AT
ACTUALLY HAS BEEN LOSING MONEY
OVER THE LAST 12 MONTHS AND
IT'S GOT A COST OVER ABOUT 2
AND
A HALF PLUS BILLION DOLLARS
THAT I DON'T THINK IT'S GOING
TO BE ABLE TO MEET ITS GOING TO
HAVE TO BORROW IT IS GOING TO
CONTINUE TO PAY THE
DIVIDEND SO THIS SENTENCE NEXT
TO ME THE BIT OF DESPERATION.
I CERTAINLY HOPE FOR GILLEY AT
STAKE AND THE INVESTORS SAY.
THAT IMMUNOMEDICS HAS SOME
DRUGS IN THE PIPELINE THAT ARE
GOING TO BE BLOCKBUSTERS.
>> AND IT LOOKS LIKE SHOT AS
WE'RE SPEAKING THE NEW YORK
STOCK EXCHANGE HAS
HALTED TRADING IN ORACLE NEW
SPENDING THE LAST RATE IS AT
$59.47 SO A STORY THAT WILL
CONTINUE TO STAY ON AS WE TALK
ABOUT THE TICK TOCK SWEEPSTAKES
AND HOW THAT ACTUALLY MIGHT
SHAKE OUT. IT'S AND WHEN IT
DOES I DO WANT TO MOVE ON
THOUGH I
TALK ABOUT THE IRIS CASES MORE
THAN 5% IN 11 STATES IN THE
U.S. INCLUDING SOME OF THESE
NORTHEASTERN DID A PRETTY GOOD
JOB OF CONTAINING IN THE SUMMER
MONTHS, I'M TALKING ABOUT
CONNECTICUT, NEW JERSEY, RHODE
ISLAND
AS WELL. WHAT DOES THAT DO TO
THE MARK OF HOW MUCH HAS COVID
NEW RISING CASES STILL A FACTOR
IN THIS MARKET.
>> IT'S LESS AND LESS A FACTOR
BECAUSE INVESTORS HAVE SEEN THE
PLAYBOOK THEY UNDERSTAND WHAT
LOCKDOWNS MY DO THEY UNDERSTAND
IRVING
THE CURVATURE OF THIS ART LOOKS
LIKE IN TERMS OF PERHAPS BIKES
AND THEN THOSE BIKES
FALL DOWN AND WE SEASON, SOME
PATTERNS THAT WE CAN UNDERSTAND
THE TERMS OF THINGS OPENING UP
AGAIN SO AGAIN THE PLAYBOOK IS
OUT THERE. INVESTORS HAVE SEEN
I DON'T THINK THEY'RE OVERLY
WORRIED ABOUT SOME SPIKES HERE
WE SEE NATIONAL THAT
CAUSE LOCKDOWN IN MAJOR CITIES
THAT MEANT THAT CHANGES THE
GAME, BUT I
DON'T THINK THESE NEWS THAT THE
NEWS OF THESE TYPES OF SPIKES
IS AFFECTING ARE IMPACTING
INVESTORS DECISION AT THIS TIME
AT ALL.
>> SO ONE OF THE BIG RISK TO
THE MARKET ARE OR WHAT IS THE
MARKET MOVING NOT SHY KNOW TECH
STILL MIGHT GET SOME OF ITS
FROTH WORKED OUT OF IT WE
TALKED ABOUT, BUT WHAT ELSE IS
A FACT AFTER TO YOU THAT COULD
TAKE THIS MARKET NOTABLY HIGHER
OR LOWER.
>> THE FACT THAT IT REALLY IS
MOMENTUM. CHRISTIAN AND IT'S
BEEN MOMENTUM AND IT'S BEEN
DRIVEN THAT MOMENTUM HAS BEEN
DRIVEN BY RETAIL TO THIS IS
UNPRECEDENTED I'VE BEEN IN THIS
BUSINESS FOR 40 YEARS, I'VE
NEVER SEEN RETAIL WAG THE WHOLE
DOG LIKE THIS EVER BEFORE THIS
IS GENERALLY SPEAKING ON HEARD
OF AND I DON'T KNOW THAT THIS
AGAIN IS GOING TO BE
OVER A TIME TO RETAIL IS IN
CHARGE THE NUMBERS IN TERMS OF
THE AMOUNT OF OPTION TRADES A
RETAIL FOLKS ARE DOING PUTTING
ON
HIS INCREDIBLE AND MOST OF THE
SIZE OF THOSE TRADES LESS THAN
6 CONTRACTS THAT WE KNOW ITS
RETAIL DRIVING THE OPTIONS
MARKET AND THEY'RE BUYING CALLS
ARE BUYING BASICALLY SHORT
DATED CALL MAYBE ABOUT ONE OR 2
STRIKES OUT OF THE MONEY AND 2
WEEKS OUT TO THESE ARE SHORT
TERM SPECULATIVE THAT'S ON
STOCKS GOING HIGHER AND THEY
ARE BUYING SOME OF THE
UNDERLYING STOCKS OBVIOUSLY SO
THERE'S THIS THE WHOLE DYNAMIC
OF THIS DICE PUSH. COLE
POSITIVE FEEDBACK LOOP.
THAT HAS MOVED STOCKS HIGHER
NOW IF THEY STOP DOING THAT IF
RETAILS GOES TO THE SIDELINES
AND IT'S NOT SURE WHAT TO DO
NEXT THEN THIS MARKET DOESN'T
A WHOLE LOT OF BRUSH UNDERNEATH
THAT WE COULD COME DOWN EASILY
IT'S REALLY ABOUT RETAIL I'VE
NEVER SEEN THIS BEFORE WE'RE AT
A VERY STRANGE JUNCTURE AND
EVERYBODY SHOULD BE WATCHING
WHAT WE TELL IS DOING RIGHT IN
HERE.
>> OK QUICKLY AT THE ELECTION.
HOW BIG OF A RISK FACTORS THAT
SHOT.
>> I THINK IT'S A HUGE RISK
FACTORS, ONE OF THE REASONS I
THINK INVESTORS MAY PAUSE IN
HERE BECAUSE GOING INTO
THE ELECTION. THERE'S A LOT OF
CONSTERNATION ABOUT WHAT MIGHT
HAPPEN WHETHER OR NOT WE'LL GET
ELECTION RESULTS ON ELECTION
EVENING ALL THE NEXT MORNING OR
WEEK OR A MONTH LATER
AND THAT'S GOING TO CREATE I
THINK A LITTLE BIT OF
SIDELINING IN TERMS OF F