john manly and ben willis from princeton, keith fitzgerald said it would be like this from money map press and our own rick san telly. can't wait to talk bonds with him in a minute. is this a green light to go higher or could it be resistance here? what do you think? >> a green light to go higher and by the end of the year without a doubt. every professional trader continues to look for some sort of correction. the fact of the matter is the economic data continues to print on a positive note, which means your money should be in the stock market, not in the bond market. it's been a very slow bleed, if you will, and the central bank's function will be managing that deflating that bubble they created in the bond market. >> do you agree, monica? especially as it looks like this stretch of job creation year on year is the strongest since 2006, which is neither encouraging or a sign perhaps the best of times are behind us? >> the tricky thing about a market, the pendulum swings hard in both directions. jobs numbers positive, in that we're seeing consistency. five months of 200,000-plus job

keith fitzgerald, we keep hearing it's all about earnings. what do you make of the earnings? have they been all about this market right now? >> well, 78% of the companies that have come in have reported beats. you've got growth of 6%, i think it's bottom line, 3% on the top line, or maybe i have my numbers reversed, because i was looking at them. generally, productivity's rising, earnings are looking good. it's the rally everybody loves to hate, but if you're not on board, it's an expensive mistake right now. >> by the way, the theme of the credit boom is something we're following. steven parker, little noticed perhaps to the broader public, but important today, the money market fund ruling out of the s.e.c. could mean a lot of corporates, for example, take their cash out of the funz. if they put them in some of the growing popular instruments like an enhanced cash fund that pimco offers, for example, the kinds of things that reach into different parts of the credit market for yield, could that continue to fuel this credit boom here and ultimately provide a wave, if you will,

abigail doolittle from peak theories is back, saja practiced human, keith fitzgerald from money map press, jack was rujan and rick santelli joining us as well. sajai, i see two words in your notes here -- small caps. does that mean you're buying what janet yellen is selling right now? >> exactly. we like the small cap story. we think the credit cycle is going to get a lot healthier. and in an improving credit cycle, you really want to look at the smaller companies, not the mega caps. >> all the same, the small cap sector has some of the highest valuations, satya, so forgetting what the fed may or may not say about valuation, broadly, why are you confident it's justified in some of these cases? >> i think the valuation debate is up for grabs. a lot of our work says that you've got long-term averages. what that tells us is that small cap valuations are hitting averages, blue chips are not compelling. what's interesting, though, there are pockets of risk in the small cap story. we've been pretty good about being cautious about the biotech names. since march-april, we flagged those multiples

keith fitzgerald, how much is europe, whether it's concerns about the economy there, concerns about policy there, a factor in either the sell-off we've had to start this week off or the rebound that we're seeing here? >> i think it's an interesting question. to some degree it's all interrelated. it's going to play into it. mostly europe will be a nonevent. they are saying, me, too. we're prepared to do whatever we have to do. that's what the markets want to hear. that's what central bankers have to say. i don't think there's anything else draghi could say without risking the markets or risking a decline. >> i think you agree with kim forest. we need to see more inflation before the fed starts thinking about raising interest rates. is that a good thing or bad thing? >> the fed has told us they want to get to their inflation targets and employment targets before they raise rates. the story is that's still a year away. inflation is like credit and so many other things. we need a little more than we have. we're on that track. there's been a lot of toing and frommi in from'ing in the street. >>