even though the kre has dipped down, the relative market is at new highs. the final slide here on a one-month basis. s&p down by a lot, regional bank is up 10.5%. that's important and an indication that this outperformance is likely to continue >> mike, what is the trade off of this? >> it's interesting. i heard b.k. at the tail end of "fast money" about he was inclined to get tlt. oftentimes we are talking about volatility, how much it is going to move. but you can get sentiment too. right now the options market are not agreeing with b.k. if you look at tlt, and others, everything seems to be implying higher rates those are good for financials and the options market are suggesting, amidst the bearishness we have been seeing, that financials could go higher. xlf has a probability of rising over the next two weeks to two months i am inclined to go along with carter on that if there is safety in anything, sometimes it's safety in value region regional banks are trading about 7.5 times which is expensive probably 13 times forward earnings if you look at it tha

specific then you throw in some other banks, citi, for example if you think rates are going higher, kre>> and wells fargo and citi have regulatory issues. interesting to think about these banks as election hedge. when talking about rates and bonds, the assumption is that a democratic win would lead to more spending. but we are saying this is a hedge for the election regardless of the outcome. >> i am with you i am a fan of chris's work, but if you overlay the ten year, they are in lock stat. i like his silicon valley pick it is up 15% year-to-date. that's an anomaly. but if biden wins the election, rates will go higher and banks will work. but i think as of late, there are a lot of different polls on the inside you are not hearing about. i do think the biggest upset will be like 2016 if trump wins a re-election bid. then ink you will see people buying back into tech and trading these cyclicals. biden would be your pick if you want banks to run. >> twitter shares flying to their highest level in five years. what is behind this move >>> and ater, earnings from ups. will they deliver? ♪ ♪

yield for 10-year yields we are sitting here at 85 basis points and june high, almost 1% look at the kre and bkx were we to go back to the first week of june, we are looking at a good move, roughly 10 to 12% in both. so whether you call it cyclical or defensive or growth or value, what we do know is that they are important turns having been lag guards. >> so what does this mean? steve, in general, rising rates should be a good thing, but in more recent history it has been a bad thing for the market >> it is not a good thing for technology stocks. never buy technology in a rising rate environment you want to buy cyclicals. as carter left it off you can call it cyclical, value. when you are looking at the presidential election, if you look at a biden win, could you see where the polls started to increase for biden then you saw rates start to increase that's the reflation when you see these rumors about massive spending, it makes people get out of bonds or treasuries they sell them and then the rates move higher from there you can't pass on costs in technology that's why you don't want to b

i am going with wayfair and going vertical >> i am with carter on kre to the upside we want to use a lot of calendars and diagonal in that market and many others >> that does it for us it. happ >>> my mission is simple to make you money. i am here to level the plain field for all investors, there is always a bull market some where, i promise to help you find it. "mad money" starts now hey i am cramer. welcome to "mad money," welcome to cramer america. my job is not just to educate but to teach you, put this in context, call me, 1-800-743-cnbc, tweet me @jim cramer that was ugly. dow falling 158 points facebook reported amazing number last time. amazon gave you an amazing upside surprise and it got steam rolled it was hideous nonenonetheless, and i know that. there is the right way to look at it or the wrong way we don't look at the action and we are back to form an opinion about the quarter. that's the wrong way the right way when a company reports great number and the stock gets slammed, you look at the set up often because of an event like say an impending election. i am expecting

because in the past five days, bank etfs are up more than 10% one-week performance, the kbe 10.5, the kre 11%, citi8, jpmorgan up 5, goldman and morgan stanley up 4 respectiv y respectively, 4.5 and 4 for goldman and morgan stanley respectively do we believe in the bank trade or not, rob? >> we're neutral financials but they're beneficiaries of this rotations raid to cyclicals. so should we get a sustained upward trajectory in rates, banks will do very well in that environment. the economic activity that we're seeing, m & a activity, ipo activity we're seeing. banks should do well in that type of environment. we think that's too early to call in a serge call way with financials, but you do get the benefits of this rotation, the value in other cyclicals because of values componencomponentry we russell 1,000 value. i think one of the things that people miss is you do not need tech to roll over for these to do well. what you need is when we come up on the end of the year and you have actuarial investors, generally they put capital in the most attractive place. if we can see this economic acc

kre bankot the krb indexes breaking out above the 200 a moving averages. to the reflation trade that people have been talking about, when you pull the covers back and look underneath it, it is alive and well, and it is playing on q as it should -- on cue as it should. seen an ok earnings season thus far, yet certainly indie arch cap space -- certainly in the large cap space, equities haven't popped higher. what will it take in terms of their stock market performance if earnings are not going to do it? darrell: it's a great point. 27% of theabout s&p reporting this morning. beats ratio is has hired a set of urban, -- high as it has ever been. arguably, q4 estimates for earnings to be down 12% to 13% year-over-year in q4 haven't moved an inch. companies aren't getting rewarded. i think you have to get past the stimulus conversation and the election conversation and some of the concerns about a second wave in covid before equity prices really start pricing in true fundamentals and earnings beats, which we know matter in today's economy. the overhang that is h

down about half a percent for the week eyeing its first down beak week in five financials and regional krere both coming off their best day since july 21, the latter up around 7%. so certainly seeing some movement in the financials and energy is surging coming off its best day since july 21 you can see up 4% yesterday. and we're watching the home builders that had a really strong run this year, but trading just about flat right now pre-market, ishares home construction etf is down about 7% this week and on pace for worst weekly performance since april. asia ending mixed. trading in europe is just getting started. let's send it out to steve sedgwick in london for a look at early trading. great to see you >> seema, great to see you not that i don't like sully, but lovely to catch up with an old friend like yourself as well european markets had an absolute dwr drubbing as you can see behind me, we're trying to float the boats of a bit of a rally and it is actually a broaden compassing rally despite the inheritance from intel daimler, are a novembrenauld ous as well. and what a rigde on brent

." >> thanks for pinpointing that critical time, kre air a. >>> kari is keeping her eye on that red flagyou say it'sow morning? >> until friday morning at 11:00. this will last a while. we will potentially have several people without power for an extended period of time. prepare for that. our red flag warning covers the north bay excluding the immediate coastline as well as much of the diablo range and santa cruz mountains this is where we will have the wind gusts reaching over 50 miles per hour and we are also going to see a strong wind that will blow offshore so here is what's going on. we have this high pressure that's been building off the coast and the position is giving us wind coming over land as opposed to a cooler and more humid air that's coming in from the ocean. and at times once again we're expecting those winds to continue to gust and our upper elevations will see winds up to 50 miles an hour. that as it moves over the mountains, that air will descend and dry out and so that's what we call heating because of the heating that goes down into the valleys it is very dry and tha

so the number of people occupying that last age group is kre increasing over time and has been for some time now. by, so, again, those are the stories you might be more familiar with. it's something we've kocovered the past five years and is relatively well discussed in the media. something people talk about me less, sometimes, at least the ag hard numbers of it, is what generational change might look e like. people have the idea that generations are increasing in size, others are declining, butt they don't actually have a picture of what that looks like in their head. let's start off with some definitions here. starting with the oldest in 194 generation, we have the silent generation that's born before 1945. baby boomers born in 1946 to n 1964. this is the generation that's dominated american politics for a long time. they've been one of the largest dominations for a number of years now. the gen-x from 1965 to 1980, and the millennials from 1981 to 1996. the other category is gen z. they haven't been defined that thoroughly yet. so for purposes of this report, when we talk about gen z,