today, etf trading at 36.50.uy the october, 37, 36 foot spread, buying one of the october 37 puts at 65 cents, selling one of the october 30 six puts at 25 cents the whole spread costs me 25 cents. >> so the xhb hit a high on tuesday but has since pulled back dan, what do you do? >> this trade is a tough one, basically a bust here. we talk about these directional trades all the time. you have to get a lot of things right. first and foremost, the direction, the magnitude of the move, and timing i got the direction so wrong on this one that it's really going to be hard to make up that ground, even if the stock or the etf were to come back in in the next couple of weeks at this point, you leave it on, it's a bit of a lotto ticket, but it's a bust. >> carter? >> it didn't make the high, or it made albeit barely a new high if one were to look at it fresh and new, all the things you were thinking are in effect, there is every possibility the xhb here and housing in general and downside risk. >> reallyquickly, there's n

one trade in the s&p energy oil and gas etf caught my eye. was three times that of calls today it was largely in one trade when the etf was trading 33.73. a seller too close to the 22,000 or so at 37 cents and they rolled the premium up to the december 33 puts paying $1.43. those break even at $31.37, that's down 6.5% from the trading price. obviously we have no idea whether that is an outright or someone is rolling the strikeup closer to where the stock is trading or some sort of protection one thing that's interesting, we were just talking about the price action here. look at this well-defined down trend. it's up about 17 or so% from that low just last month which is pretty interesting. here is the five-year chart. when i think about rolling and strikes, pete looks apartment this stuff closely too 29 was the prior low in the summer 33 now is very near where this kind of break-even is. i think that's kind of important to keep an eye on. then just one last thing, we know the vix is trach at 10, option prices are relatively cheap. the price of

trading. pipo. time.e it all the and etf lends itself to this.e -- is fortunate for people like me who have liquidity, because when that occurs, bond prices do not drop by have a present. it, massivetrolling supply hits the market every day and did strop, 2, 3, 4 point of a point.ne half that is what you had a massive 2014 that was not accompanied with a default rate or a recession, which every prior cycle at been a company by. david: if you go to cash because it is not worth taking the risk, what is the event that will change that and say, yeah, it's time going back into the pool? are: there are places that good to buy, including lower rated high-yield stash alix: i want to know where that is, 20. bill: absolutely. the margin of safety and fundamentals and the technicals have to line up. the margin of safety has to be havenable because i don't the benchmark tied up in government bonds, investment have very., which all tight correlations now. technicals for me, they are underrated, and that typically will be accompanied with a good margin of safe

as for etfs in most cases these vehicles are trading not investing so i don't like them many etfs weance every day, and that could take a toll on the long-term performance. the gld is what i like to play for gold but in general, if you're not a pro and not managing a portfolio of individual stocks and not day trading every single day, you probably shouldn't be fooling around with the etfs either. a cheap index fund is better than the bulk of mutual funds. an index fund owns everything, the good, the bad and the ugly if you do have the time, i think you can beat the performance of an index fund by picking stocks yourself, which is the entire reason i do this show every night. if you don't have the time, though, don't overthink it just one cheap s&p index fund is indeed the best way to go. mary in maryland mary >> caller: boo-yah, jim! i started listening to you a while back then i started buying stocks on your advice. >> thank you. >> caller: now i'm looking at my portfolio here, and jim, jim, my eyes have seen the glory so i want to give a little fancier and perhaps buy some china st

on the correlation with faang stocks, this is largely because of etf trading. s worthy trading history of and from. alix: that is not entirely true, because amazon and netflix are considered consumer discretionary stocks. if you say faang's that is somewhat counterintuitive. >> it is not necessarily the buying of tech etf's. i think they do benefit from just the fact that if you buy they haverket etf's, some of the largest market capitalization. can be positive, but likewise, we do believe that amazon probably really is the future of retailing in many ways. that said, a lot of that positive news is already very much priced in. as a value investor, you presume that the good news does not turn out to be quite as good as people expect. often times the bad news does not turn out to be as bad either. david: jim says amazon does not make money. ify can make a lot of money they wanted to. but they are conscious that they want to invest in new ventures all the time. they have a lot of revenue coming in to but they are investing in their future business, business as we h

etf kre. this matters is because we had the trump trade back after the election, but now we are seeing this dive back, the last time we saw this death cross, the all in decline was 30%. we can basically see the entire election rally reverse. right now we have this regional banking index or etf down about 9% on the year. on paper its worst year since 2009. perhaps not the best barometer or tell for what could be ahead for the markets. abigail plane to the

semiconductor etf, there was a bullish role up and out, a longer dated one to open today when the etf was trading 89.70, there was a seller at 15 cents. they rolled up to november 95 calls buying 10,000 for 60 cents, those break even at 95.60. that's 6.5%. we have a quick chart of the smh. it's right back at the all-time high i suspect this trader is looking for a little leverage to the upside >> thanks for that for more options action, check out fridays, 5:30 p.m. eastern time >>> coming up, why are media stocks surging today we'll break down the market mist i'm melissa lee, you're watching "fast money. here's what else is coming up. >>> bitcoin is getting flack from all sides the controversial john mcafee says all the bitcoin haters are crazy. he'll be here to explain why in a rare interview >>> guy adami is bringing the heat, catching a health care stock that's up 35% this year alone. med he sees even more gains to co how much more? guy's answer, when "fast money" returns. i'm here at the td ameritrade trader offices. steve, other than making me move stuff, what are you working on? let me show

but it etf's take too much action away from the things they the, it will creep up crossed to trading s, and could make it harder on one of those bad days. you don't want etf to be too much of the percentage of volume. right now they are 30%. i don't want to see them still too much liquidity and assets from single securities. presumably, if it is all going in one direction, and etf holding with an enormous amount, versus individual, then you would think -- eric: etf's need the underlying securities to be liquid, a healthy market. have too much liquidity away from them, that could be a problem. julie: we have to leave it there, thank you, eric balchunas. mark: still ahead, research firms and fund managers are bracing for impact. big banks getting ready for new rules. what will fund managers do? ♪ . ♪ julie: live from bloomberg will take orders in new york and london. i am julie hyman. mark: i am mark barton. this is bloomberg markets. >> hurricane irma weakened slightly overnight but still projected to afford on sunday and bringing powerful winds and potentially deadly storm surge. it h

insight,oday's options we are trading a high-yield etf.♪ scarlet: president trump speaking to reporters on air force one. he has returned from florida. in his comments, he said that he respects janet yellen, and the stock market is doing very well. the president says he has not yet made a decision on who the next fed chair would be. julia: speculation will continue . he also made a comment regarding gas, and the decisions over the last 24 hours the deal or no deal situation. he says he's not worried about republican' reactions ons daca. the headlines on the hill would be his base explodes as a result. we are just waiting for president donald trump to leave air force one, which is why we are trying to the pictures of the open doorway and the carpet. scarlet: we know that he's on his way back from florida, so he had comments to make. there he is. he's talking about the hurricane, how irma and harvey haven't change his mind on climate change. storms,h the massive the president and first lady returning to washington dc scarlet: we will continu

sure there is, brian i am not one of those people i reference etfs frequently, occasionally i trade withinhem but that's really rare most of the people sitting on the desk there are people who individualize and look for specific stocks and catalysts and reasons and earnings and all the different metrics that go into analyzing individual names. obviously i would agree with you, though. when you look at these etfs, there is some risk there because the passive investor sooner or later, and surat was talking about it, now it becomes much more difficult each level higher we go, it becomes that much more difficult to determine which stocks you want to be in because of the fact that they have all been moving to the upside but you've got to find the names that are earning, they're growing, they have got great yields, they have got great fundamentals -- >> but pete, does it matter how a company does in the age of the etf. you can have the best balance sheet, best ceo, best management team but if you're in a bunch of crummy etfs and they're going down, does it matter you're not going to get noticed.

that i mean asset managers, banks, pension plans, all over the .orld they are all using etf's as ways of tradingually using the underlying bonds. they are using etf's right next to the underlying bonds as the way of building portfolios. the story that is not seen in asia that is truth through the west of the world is the growing wealth. seeingted states is rapid accumulation of etf's and growing climate portfolios. that we have not seen in asia. australia, yes, but not in the rest of asia. betty: maybe etf's are now the amazon of the fund management world. is there any place at all in your view for active stock figures? ? >> -- mark: absolutely. active stock pickers as a set are so much larger than not just etf's, but the whole world of indexing. there are many dollars allocated to people pricing securities around the world. all indexing is only about 10% of the financial markets. that's pretty small. there is a huge space for stock pickers to price securities and make money for their clients. etf's are just a way for clients to build or folios when they don't want a stock picker for a growing e

trading days. sure enough, when the etf only bottomed it came just 16 days after its previous high.rd, she also noticed some price semi century in previous down moves there were previous declined that lasted when the xle bottomed and come down $5.33 from its previous high it fit the pattern when all these key parameters were tested on august 21, the stock bottomed broeden conbe 100% sure the stock would change at that level but chef able to inspect the possibility by observing and analyzing the etf's pass behavior she wants to make sure the same thing happening with nvidia. we see how it works and applied the bottom, now we're apply all the stocks to nvidia unfortunately broedensays she' observed similarities to the reversal she caught. first nvidia's already made a 127.2. the dechange terminated this level even though it was temporary. brody says rallies tends to terminate extensions that means a pull back in nvidia has become more likely second, there's the issue of time in the recent past nvidia's longest rallies have lasted for 25 or 29 trading days before this stock got hit wit

lithium etf's are feeling it as the third best traded fund. it is up as much as 10% this week.ecause china said it will set a deadline for automakers to end sales of fossil fuel vehicles. that would be most vehicles. joining us to talk about the electric industry, mark wakefield. the conversation tends to be all about tesla. talk about competitively where will be in 24 months. who will be out there making electric cars? >> the talk is often about tesla. the chinese news was big. it is not new news in one sense because china has been pushing all of their automakers to move heavily toward electric cars. what we have seen in our electrification index where we look at not just how many vehicles produced at how much range is being sold, a better weighting of electric cars, we saw a number of chinese vehicles pushing hard and having about half of the amount of launches between here and 2020, half of the launches will be from chinese automakers. cory: what do you mean? how many launches are we talking about? give us a sense of the global automobile history and how it compares. >> righ

julie: you are looking at oih for your trade today, right? jim: exactly. etfn 20% year to date. implied volatility very low relative to itself. a nice way to buy cheap upside here. specifically what we want to do is go out to january and just straight calls out right when we price that over the weekend at about $.59 or so, but a very clean way to get long directional exposure and energy. julie: thanks a lot. back to you. julia: still ahead, angela merkel has had her decision day. shinzo utley's future -- abe's future hinges on the snap election held in the country. we will be discussing. from new york, this is bloomberg. ♪ ♪ >> sarah sanders is pushing back against pyongyang's claim. trump says that kim jong-un won't be around much longer and said that the u.s. would destroy the country if it is forced to defend itself or its allies. the u.s. and north korea are still technically at war. both sides agree to an armistice after the korean war. the island chain reopened to tourists on october 3. that is after 25% of homes were destroyed two weeks ago by hurricane

and then they don't >> i think we're in another head fake elt traded okay yesterday and traded okay today. the one etfould have in my opinion gotten what could was the xlu and it closed unchanged on the day it's still within a whisper of its all-time highs in my opinion, if rates are set to rachet higher, xlu should be a lot lower as should tlt and you're not seeing it in either >> the yield curve, the short end of the curve, is the flattest it's been in a long time you talk about xlu xlu is somewhat of a defensive play in this type of environment. flat yield curve generally means the economy is going to be getting weak er to me, i would be concerned. you've got to think, has the global economy changed that much in two weeks i don't think it's changed in one built. the yield curve has. it concerns me about the banks they've had a tremendous run i would not break it out right now, i would let them consolidate. it concerns them on the tlt as well i wouldn't be surprised to see that >> i sit on the board of an nlp fund i think energy has recovered in a way, the yields on these names are really extraordin

the housing, banking and biotech etfs all you want is a company that has the best prospects regardless of the rest of the industry there's a place for these exchange tradedhysical gold bullion is too expensive. the gold miners often leave you out in the gold. but they track the price of gold as closely as possible but i'm against etfs because they create distortions that can obliterate even the best of stocks you can find yourself caught in a stock that's pushed up or pushed down by one of these entities that should have never been approved by the government. you have the accept more risk if you own a stock that's hostage in a given etf my final words to the wise how your stock can be brought down that have nothing to do with its own prospects, accept the fact that at any given time the rules can change when the fed raises rates, people pay less for stocks because stocks become less competitive versus bonds all stocks if it's treasuries we're talking about, they yield very little. corporates yield more but you could be taking on more risk think about all the billions lost in mu minnicipal bonds. while it may not be worth it for you, others will make the

etf kre. this matters is because we had the trump trade back after the election, but now we are seeing this dive we saw this death cross, the all in decline was 30%. we can basically see the entire election rally reverse. right now we have this regional banking index or etf down about 9% on the year. on paper its worst year since 2009. perhaps not the best barometer or tell for what could be ahead for the markets. abigail plane to the judge. what do you have? julie: i don't have any death cross, but this is a timely chart. it is about equifax. three executives at the company selling their shares or selling some shares of the company. that was on august 1. we now have this big drop in the that 143his revelation million people's data might have been compromised. you can see this insider sales, and this shows the now 15% or so drop we have seen since the executives sold. a spokesperson said the three sold a small percentage of their equifax shares and had no knowledge that an intrusion had occurred at the time. the cfo among the folks that sold shares. mark: julie, timely equifax. abigail, death cr

the stock has been a horse because it trades in an etf. i think what's interesting is that she timed her coming on "mad money." there was a house financial services committee issue report yesterday titled did the cfpb let wells fargo beat the rep if you were to calculate a first-year penalty for wells, the penalty could exceed $10 billion. so, in other words, the cfpb knew this and let him off pretty easy and now there is the board of directors how are you guys doing only a couple of the board of directors have been removed. it must be really hard what do you have to do >> equifax and wells fargo can switch boards. like you and i switch passwords. hard to get added to a board >> remember, they have a person at retired ceo of a company that told me it was the foremost cybersecurity company in america, citrix, a retired ceo on the board it's sergeant shultz, my friend. do you at least know who sergeant schultz is? >> i do. hogan's heroes >> you think it's gomer -- >> you go to "godfather" references too often >> it's like ridiculous. i mean,

etf. extremely liquid. high volume. a great way to trade options. i'm looking at the levels that we hit pre-election.ing out to october. i'm buying a 127-124 put spread going out to october. i can do that for about $.75. that is my maximum risk, no matter what happens to rates, no matter what happens to tlt. if we have, in fact, come somewhat near a bottom, this thing is going to be fantastic in reward versus risk, in a very short. of time. that: we got word vice-chairman stan fischer is going to be stepping down from the fed. does this change the outlook in december? will we see a rate increase that? -- increase then? scott: it removed some of the dovishness and tips the balance toward the hot side, in terms of a rate hike. that's why we saw a rates bounce after we saw the news come out today. julie: i have to let you give a shout out to your students. i know you teach a class right now, and you talked about this trade. kelly business school in indiana, we talked about interest rates and we talked about the overall market, buying insurance when you can, and not when you have to. really forade is the

now, there's a good etf which you can use if you want to put on a trade like this or take this one.se are the top five. what you see here is that they are about 39%. it's the big names that you know. here's a two year chart. it's very orderly. here is very precise trend. so bottom at the top, top, at the bottom. it's repeatedly and over again. we're right at the top. once you of course want to make the bed is that you're going to do you know this kind of thing which is fail off the line, fail off the line. and once again probably going to get this. the best part is defense attorney -- done. this is the bigger issue. this is xli. and performance to the s&p. take a look when i put in these lines. this tells us everything. we know the sector itself, right, has broken out to new highs, but it's relative performance never could make a new high since the so-called earnings recession for industrials. a point at which boeing dropped 33% of its value. this is the real problem. if you have weak stocks that are not keeping up with the market at the same time your strongest stocks are starting

now there are over 1800 etfs volume in 2002 as a dollar value of the market traded was under 2% now it's over 30%. so when you've got those concentrations like that, scott, it's not as surprising to see it compress volatility like we have over the past several years. >> so why -- i guess the question, why such little volatility >> part of the story is an incentive change in the wealth management and investing industry that's pushed people to become longer term in nature, even post crisis especially, to do a lot less trading and, you know, when you've got indexing movement. now inxes are 38% of all the money that's managed in the country, it's an extraordinary number back in 1995, the period i was just referencing with very low volatility, understand that the van guard 500 index fund, which was the largest at that time, that's preetf was only $12 million in assets. now it takes in $12 billion every two weeks. so you've got people behaving differently and people who sit in my chair, even 15 years ago we were commission based we were transacting every day for clients. it's a fee-based world

trade if people want to do it? >> no, actually, we don't. we don't have any products other than i think it's an etf that invests. trading at some ridiculous premium underlying asset value we point that out too. >> if 2017, if we continue to see -- it's 2017 >> it is >> if we continue to see upward gains this year, it's going to be a much better year than anyone thought double digits. >> yes >> what about 2018 you say there's no recession in sight. are you going to give me the pat answer mid to high single digits next year? that's what everyone always says they're usually, i don't know, just -- sell side guys that just sort of want to make sure they don't say anything really, really wrong, but what about next year? double digit gains could it be a down year? mid single digits. what are you saying? >> i've been saying for about the past year, this year looks a lot like 1999 to me. you can draw your own conclusions from that. >> i don't like to hear that >> well, you know, if you look at the -- if you look at the underlying economics, if you look at the market, the similarities are remarkable. >> there's no -- you k

investors have to know, 100% premium. >> once it is etf, more likely to match the underlying asset, then do you buy or treat it like a closed end fund, once it tradesm, sell it, or under the price of the underlying asset, you buy it >> once it is in etf, great way to get exposure in an ira or typical brokerage account, as long as premium isn't that high at all it is going to act just like the gld once approved as an etf. >> i would argue similar to etfs with high yield or junk bonlds i them, the underlying instrument may not be as good as what you expect from the etf. in time of distress if you need to get out, you may not get out as quickly or at the level you want. >> what would be faster if you want ultimate liquidity. >> bit counscoin itself. >> thanks, good to see you >>> want to bring live pictures from port arthur, texas. the region got battered by hurricane harvey however, the sun is out today. rescue and recovery operations are under way. this is video from a boat traveling on what used to be streets. now the waters are high even as we watch them recede the sun is finally shining down there. >>> the $15 billion industry driven entirely by

♪ yes you can ♪ well i'm gone >>> one of this year's best et performance etf tracks chinese internet stocks. find out at tradingreet" coming up. i count on my dell small business advisor for tech advice. with one phone call, i get products that suit my needs and i get back to business. ♪ >>> welcome back to "squawk on the street." breaking headlines involving former congressman from the new york anthony weiner has now been sentenced to 21 months in prison for sending sending explicit messages to an underaged female all of this following the plea deal that he said he pled guilty back in may to these charges, but 21 to 27 months was what federal prosecutors were looking to get in terms of a sentence and we now learned it's 21 months, so breaking headlines here, carl back to you guys >> dom, thank you very much for that >>> let's get to the cme group in chicago this morning and check in with rick santelli and get the santelli exchange. rick >> good morning, thank you, carl i'd like to welcome former ecb president john-claude trichet. thank you for showing up, i know you had travel issues and we have a time delay.

etf securities. >>> we need to keep you up to date with other corporate news this morning ab foods trading higher. the growth was projected to fall sales up at the clothing unit grew 13% while the company expects margins to improve on the first path. >>> e-mail the show. the address is "street signs"europe@cnbc.com. >> does anybody shop there >> i'm not that age. >> i have some. >> they're pretty low maintenance like me. >> yeah? >> i just dribble over anyway. >> you're going to have to con tend with a lot of 13-year-old girls, you know, when you walk through. hey, maybe i'm just completely out of touch when it comes to primark shopping. >> i think you have to leave your options open. >> i think you do. >> guscci, gucci. >> not that. >> you can tweet us @cnbc. >>> coming up on the show, we will be live from seoul and the lead up to the latest united nations vote on the north korean sanctions. >>> welcome back the united nations is due to vote on fresh north korean sanctions later today with south korea looking for an oil embargo to be included the rogue state has threatened retaliation saying the

with this with the etfs, things like put spreads are the way to make the direction play they don't have the idiosyncratic risks that single stocks too i would definitely stay with that trade >> just what dan said, the chart is broken. fundamentally they're expensive. what's the upside potential? it seems very limited. >> up next, your tweets and the final call from the options desk i'm here at the td ameritrade trader offices. steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. see options data like never before. with thinkorswim only at td ameritrade. hthis bad boy is a mobile trading desk so that i can take my trading platform wherever i go. you know that thinkorswim seamlessly syncs across all your devices, right? oh, so my custom studies will go with me? anywhere you want to go! the market's hot! sync your platform on any device with thinkorswim. only at td

trading. the hedge funds that have been in and out of the market, it is really the leveraged etf to have an impact a significant change in trading habits. due to some kind of recession, .ome kind of tax law change we will see if we get this famous tax law. they have been so successful so far, i guess i have to have for the tax change. i don't perceive this market is okthe internal dynamics look . it is priced to perfection and it could stay that way. i don't think hedge fund activity is wanted his fun -- is going to trigger that. francine: what what triggered the readjustment of the market? market withow the function with all the free cash out there? chris: that is the million-dollar question i have been asking all of our economic services. what is that trigger point back up of it could be a federal reserve policy action. we have seen before, like in 1994, when the fed moves too quick. we see it where there is a trained in federal policy that causes the economy to stumble. we have seen it where there are events that cause consumers to lose confidence. andould be any one of those i cannot tell you

trade. when you look at inflows, emerging market etf's have had over 25% as proportion of asset or it if that- funds go out, look for things in option structures. a number of structures that take advantage of low volatility and can help maintain line exposures. joanathan: stay with us. it's good to see you. futures are positive. we had a marginal week. back. set to get is bloomberg. ♪ -- this is bloomberg. ♪ so we need tablets installed... with the menu app ready to roll. in 12 weeks. yeah. ♪ ♪ the world of fast food is being changed by faster networks. ♪ ♪ data, applications, customer experience. ♪ ♪ which is why comcast business delivers consistent network performance and speed across all your locations. fast connections everywhere. that's how you outmaneuver. away from the opening bell. let's go through the price action. futures are positive. the dow is positive. the hurricane risk is half of the trade. relief.r half is in the bond market, yields are higher than treasuries. we have six basis points on treasuries. trading action is 2.01%. a january 2015 low. the euro is helping us get back

trading of ipos that have gone public. sure, blue apron and snap have been failures, but they're the exception. ipo etf, a basket of thes 60 most haven't ipos is up 27%. many of those stocks had big outperformance including ferrari, square, first data public investors drive a hard bargain and want initial prices as low as possible, they have been rewarded. for every blue apron and snap out there, there's plenty of winners. >>> let's turn our attention back to president trump. he is reportedly using funds from his re-election campaign and the republican national committee to cover his legal fees the rnc kwconfirmed more than $230,000 have gone to trump lawyers working on the probe former trump campaign manager paul manafort is demanding a government investigation into media reports that government authorities wiretapped him his spokesperson suggested surveillance was politically motivated. paul manafort was briefly trump's campaign manager last year but was pushed out amid power struggles and concerns about his business relationships with the russian establishment. >>> in a speech that drew plenty of cr

the major etf so far this year we'll tell you what it is and ask the trading nation team if you should what are you doing? oh hey john, i'm connecting our brains so we can share our amazing trading knowledge. that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? i know. your brain told my brain before you told my face. mmm, blueberry? tap into the knowledge of other traders on thinkorswim. only at td ameritrade. i'm vern, the orange money retirement rabbit, from voya. i'm the money you save for retirement. who's he? he's green money, for spending today. makes it easy to tell you apart. that, and i am better looking. i heard that. when it's time to get organized for retirement, it's time to get voya. for tech advice. dell small business advisor with one phone call, i get products that suit my needs and i get back to business. ♪ >>> the best-performing large etf is the xbi it tracks the number of biotech stocks, but is it still worth your money david, i

etf is up 1.5% and also bonds u.s. government bonds as well. keep an eye on safety trades, they could be themes if we get steam in the pressure. >> north korea fueling fears and congress back to work after the summer break september is typically historically not such a good one for stocks let's bring in brian belski, randy warren is chief investment officer of the warren financial service. gentlemen, welcome brian, let me start with you you can take the historical pattern here in september and say it's historically not a good time this september you would have to say there is an awful lot for investors to process. >> there's a lot to process. >> how do you do it? >> welcome back to work. we've missed you volume was about 30 to 40% lighter this august relative to what we've seen in history it kind of sets up for what we would believe could be a volatile september, you're right. if you go back to 2011, we had issues with the super committee and debt rating. 2013 we had the government shutdown then you go back to other recent memories with respect to 2008, which actually was

trade, or is it time for pullback? we have seen outflows coming out of the u.s. etf's even though they have been pretty strong so far.earnings will underperform that saying on a valuation basis, if you take into account currency effects, european equities still attractive, so a big question from here. a great chart, 1958 you can find on the bloomberg. talking about resiliency in europe despite geopolitical risk , the treasury market is reopening after labor day, the treasury yield about two basis yield up. the bund this is the treasury bund spread , tightening up at the end. this has been tightening since the beginning of the year. moving on to other safe havens, we are still seeing the yen big, a weaker dollar tracking the 10 year treasury yields but has beenngly, the yen lagging behind gold amid rising tensions with north korea. this is the nominal exchange rate and the spot price, and we are seeing a tiny bit of softness in gold coming through this session. i have got to talk about the yuan because we saw 14 straight days of gains on the longest .inning street -- streak we are seeing a little bit of a pullback in

shodgesf the market being ignored, being forgot about, trade at low p/e multiples growing equal with p/e multiple great rates it depends when you're buying an etf, you're buying the whole market being selective with your stock picks, you can pick the parts that don't have much downside risk but still do have the growth it's hard to say we're in a bubble i don't believe we are none of the signs of a bubble with the euphoria and individuals being enthusiastic about stocks and just a lot of the greed things you see in bubbles. i don't think those are -- those are really an ffable right now we've been waiting for a selloff for at least over a year one will come and we'll take advantage. >> hey, rick, for the interest rate part of julian's argument, you know, the three-year note auction yesterday was soft today the ten-year note auction, the ten-year auction was lack laughts lackluster as well are the bidders saying they feel interest rates are too low as well >> reporter: investors definitely didn't have high demand for either auction so the only logical conclusion is they didn't like the pricing location you have to be correct on that but we don't

trade and a whole lot more coming up >>> it's a u.s. versus the world when it comes to market returns. te loigns supreme weaka ok that's next. most etfs only track a benchmark. flexshares etfs are built around the way investors think. with objectives like building capital for the future, managing portfolio risk and liquidity and generating income. that's real etf innovation. flexshares. built by investors, for investors. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. >>> welcome back to "power lunch. >> we are checking out shares of valiant after the company says it closed the sale of its inova business it will use the proceeds to pay down debt. saying that it is on track to close the skin care business they say they expect to exceed their commitment made in august 2016 of paying down more than $5 billion in debt before february 2018 making progress on that all important debt paydown of 5% on that >> thank you very much >>> let's take a look now at that on valeant. >> what's interesting is this turnaround sto

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etfs, we use them actively in some of the portfolios that we manage. in of itself, as an truinstrume they are over or under value of the basket of securities that they represent that or tradingone level of determination. the other is they can easily be bought and sold and so if you said the tide starts to go out and investors hitting the key stroke to sell and sell and take the basket of it quickly and amplified any kind of downdraft. >> i am going to ask you mark, do you think there is liquidity for all etfs >> i don't think one uniformly other liquid markets around the world. i would worry a little bit more and narrowly define or amount of position that they hold and you can see the liquidity dry up you had one of those days that we had before. we had a flash crash what do you think of the biggest risk in markets here >> i came up with three, there is a geo political melt up risk and there is a risk that trump actually had success on his agenda we have been good over the last nine years of turning over any political geo political risks out there. i think there is risks that investors get used to it i think the market is going to continue to trade up and frustrate investors

etf innovation. flexshares. built by investors, for investors. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. we cut the price of tradeso give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be. >>> what we know right now is tim cook is about to address the new version of the iphone. his stock is up by 1.4%. lets bring in our adviser, tim, based on what you heard, what do you make of it all >> it is pretty much what investors are inspecting and it is a way apple is continuing to merge the platform you are now starting to announce products that go all over different devices. >> and on top of that, the apple tv that they just announced, really starts to bring everything that you can use digitally across the platform. >> thank you for joining us, we want to get the brian. it is officially called the iphone 8 as we believe it would be 'lgouto iainwel o tbrn cupertino, california after this quick break. >> okay. and the wolf huffed and puffed... like you do sometimes, grandpa? well, when you have copd, it can be hard to breathe. it can be hard to g