than $4 billion coming into iwm. closely watching it given the tariffs news that we saw earlier today. lisa? much.nk you so i'm looking how everything has been turned on its head today. up are the ones most beloved. let's look at the banks.

than $4 billion coming into iwm. closely watching it given the tariffs news that we saw earlier today. lisa? much.nk you so i'm looking how everything has been turned on its head today. up are the ones most beloved. let's look at the banks. see they're all in the green. charge,gan leading the 1.4%. bank of america did end lower on day. the interesting thing is, if you want to pull up the next chart look at bank bonds versus stocks. bonds are barely down if anything they've been of otherming lot investment grade bonds. you can see the stocks have nearly 10%hed down on the year. sort of an interesting divergence. honestly you can look at this and say, maybe the bonds are on to something. they're not taking that many more risks. going to be safe and secure. .> interesting have hadnd-up as we the close. to get yourant for china.this mean >> i think that's absolutely what we still be concerned about. i will take the news this morning that china was cutting taxes negative. more stimulative act they've done from cutting rat

iwm 200. >> i don't understand what you are saying >> support held levels >> does that make you want to buy. >> only 2% nothing is happening. >> i hear you. this is a fast forward market. a fast trading show. i do believe that there was some type of support within the market, makes me want to look at it, but buy. >> was there that kind of support for technology though. >> well, i mean, that really gets down to it. the technology has been such a driving part of overall market performance not only the weighting but the performance. and the relatively performance peaked on the fifth of june. in the fifth of october it has been underperforming as a choice other equities as measured by the s&p. that's not likely to be over quickly. it's really just early stage everything i can see. >> it's been clare -- this was even before we started into the nastiness of the last couple days, the value was outperforming momentum we had seen rotation at the start of the quarter but there are things you throw out of the window. first of all we waited for rates to go higher to embrace the banks and the ban

month for the s&p on a seasonalalty issue for -- october is and november is the best month for the iwmever believe past performance so let's say if that plays out. >> steve, does it feel to you right now like what happened in the early part of february as rates were rising and a hot job set things off anything we should glean between that time and today? >> if you look at that it feels similar but to me going into year end where the average hedge fund is up 3%, there's got to be a chase for performance so everyone has been waiting for this selloff and what do you do? do you buy the selloff or just sit on your hands? i don't know if they have the time if they can afford the ability to wait going into year end when they're trailing benchmarks so i would think this will be short lived. >> we've also been told earlier on in the show that many consider cash to be more of an asset because it yields something thanks to the fed because it's raising interest rates. is that something invests or should look at in the overall scheme of their portfolios >> it used to be whatever your age is is what

. >> from the score card, my conversation was going through the iwms up 45% off the election. up 22% annualized over two years. score card is that the best score card. >> annualized? >> annualized. cumulative about 11.5, 12% annualized it's nothing extraordinary and after the pull back, there was a lot of stocks that they would not say things are going well from the performance of the stocks >> let's bring in rebecca patterson. thanks for joining us. i want you to weigh in on what we have seen not just today, but the past seven or trading sessions >> i think you guys are giving a lot of good color on the technical parts. let me try to pull it back to what i say is the fundamental. when president trump got elected, we got a lot of stimulus and deregulation. in april of this year, trade went from little pieces and especially with china and the u.s. outperformance really started then here we are now and inflation is coming through from a tight labor market, but now the potential for the trade to also cause inflation increases on top of the stimulus created inflation. the fed is o

s and p best season is october november is best for iwm, for the small index.ou'll have to be in the small if you -- >> so rate sensitivity is the new name of the game where are yields going from here >> it is only higher i just think that this is a strange discussion to have think about what steve said. he said rates are either going up because of a good reason which is growth or bad reason which is inflation let's think about that bad reason far minute. if it's such a bad reason i don't understand why every central banker in the world is going to church every week praying for it to see more of it grow disappointed when the stocks aren't taller. a little inflation is good you own a house, own the stock market it will take better care of you. this notion of rates going up being a bad thing, i understand it don't think about it so much as rates. think about it as all of the costs. pretend you a floating mortgage and rates are going up how would you feel if you had a fixed mortgage and rates are going up what's happening is deleveraging these are all very welcome

just a generic sell big etfs like the spy and iwm went on for a few minutes and stopped and the market sort of stopped and started to rally again but these have been coming through with regularity in the last two weeks and a lost people are trying to figure out when the bottom is. here's what's going on the markets have been looking through the earnings generally the earnings have been very good and the commentary for the fourth quarter has been very good but the market's not paying a lot of attention and stocks are not being rewarded for not only good earnings but decent commentary about the fourth quarter. because we're dealing with a lot of macro two principal issues china slowing and tariffs. two related issues and the fed hiking rates and how long and how far they will go. the other issues are still out there, higher cost, dollar strength and italy we've had movement -- you want to see how crazy things are? yesterday regional banks had decent earnings. all of them were up 3% today on not a lost news the exact same banks are down 3% of course that makes no sense on a fundamental ba

chance that we'll finish the year more positive s&p, the best month on a five year trailing is october iwmsbest month november. stay invested until year end. >> mid-terms, bob? >> i think they are watching because policy impact from this administration has been meaningful in the market as we know from trades, tax reform, et cetera, and when you look at the mid terms, even though -- even if the democrats sweep or it's a split congress, i don't think it's going to make any difference because even if the democrats sweep they are not going to have a veto-proof majority if you look back historically, it's been very interesting back to 1930, almost 90 years, the market in the next 12 months after mid terms have been up 13% with the exception of two years, 1930 and 1938 so, you know -- >> let's hope it's not those two years. >> no, i think of the mid terms, maybe if it looks like the democrats will sweep, maybe healthcare stocks get a bit of a fright and once they realize dems won't do anything, it will be stable. >> rick, want to hear from you on this. i want to add one big question, the selloff