for more on the trading week ahead, let's bring in kevin simpson. he is the founder of capital wealth planning. good morning >> hi, seema >> i detailed the reports on the agenda this week high focus on employment i think one question out there, kevin, is as the fed tackles high inflation, how much weakness they are willing to overcome, i guess, in the jobs market and if that could play out this week? >> if you think back during the pandemic, the jobs report is all we cared about it was the biggest report on the docket now it seems like it is all about inflation. last week, we ahad the pce number it came in with maybe inflation peaking. i thought about it last night as we celebrated fireworks. maybe we should have had fireworks last week to signal the all clear on inflation we will get a better read on the trajectory next week with cpi. as important as the jobs number is this week, it will not do anything to change the opinion of the fed they are solely focused on inflation. cpi next week may be bigger than the jobs report this friday. >> are you reco

joining me now is kevin simpson from capital wealth planning. kevin, very good morning to you. maybe we will get some of those earnings back in a moment, but first and foremost, why did markets dip quite so hard yesterday afternoon? is that justified based on what jay powell was saying? >> to be honest with you, wilford, i think it was an overreaction. it was great to see the green tickertape, but a 75 basis point jump was expected. it took us to neutral 2.5. he talked about next meeting possibly being another 50 to 75, which could take us to three or 3.25, so i don't look at it quite as devilishly. i think we need to continue to be careful, because the problem is we don't know if what the fed is trying to do is going to work in six to nine months. enjoying that time period, i think investors need to remain cautious. so far, wilford, retail investors seem to be getting it right. last week was the fourth week in a row where investor sentiment had a lead below 30, which is really bearish. they are right to be bearish because we are in a bear market even with the old rally through

courtney garcia and kevin simpson together, they have a similar strategy, so they are experts and matt he will hear from them in a few hours from now. >>> let's do some final trades, if we could. >> small caps in a shock to absolutely no one but specifically, the s&p 600 small- cap which is the more profitable portion, these stocks are trading at levels of the two 2008 crisis, also insulated in that. >> he seemed upset earlier, he has a big smile on his face now, go ahead. >> i wouldn't yell at you. >> i know. all good. >> down 9% today on this macao shutdown, the value of when should have a zero value to macao at this level. this is on the las vegas and boston operations, which are doing better than expectations. >> thank you. steve wyche? i understand jim being upset if you and your ivy league friends couldn't get in either, would ruffle your feathers. my final trade is shorting the xl left, takes protection out against financial holdings when they report the end of this week. >> joe? america, value, growth, doesn't matter. special teams, mark. i hope you will all join in a few hours

look at that you have two people you will talk to about it >> mimi duff is here with us and kevin simpson. mimi, i'll start off with you. kevin is the founder and of capl pla planning mimi >> the market is trying to figure out the primary concern the first half of the year emphasis or is it odds of recession? that's what i mean by that the drawdowns of 20% tend to happen every couple years. the drawdowns of 30% are typically more associated with recessions and those are more every five or six or seven years. i think that's the inflection point. what is the primary concern right now? inflation or recession >> i think that's why the jobs report is going to be so widely watched and crucial, kevin joe and i were talking about figuring out if good news is bad news what number do you think the market wants >> great question, melissa the goldilocks number may be the best thing this market reminds me of so many things back then. there were big giant televisions. they had rabbit ear antennas you have to move them around to get a clearer picture. we trying to see where the market is headed look at