and today, we've got paul hickey with us as well., paul, but let's kick it off with the broader company. stocks starting the new month higher the nasdaq outperforming today now less than 2% from its all time closing high set in february pretty remarkable all things considered mike, s&p 500 up 0.4% or so, a little bit off the high, but we're significantly higher than where we were when the futures opened and indeed at the open today, which is encouraging given the rally we've had over the last couple of weeks >> since we've broken out of that range that held a few weeks back, it seems as if the market is down half a percent, the machines start to buy so it seems as if big investors still want to have a little more exposure, make sure they want to top up their equity allocations right now. that said, it's not necessarily an urgency in buying not a lot of high volume and i think you can look at pockets of the market getting overheated such as a lot of the retail trader driven stocks today but that doesn't really give you a timing tool.

they're going to have to maintain really strong liquidity to get through this next 12 months >> paul hickeytand on the consumer names? staples versus discretionary in particular >> i think staples names, you know, ran a little bit the defensive characteristics. i think to what paul is saying earlier, just consumers want to spend. given the opportunity, what we're seeing across the country in states that are reopening i think is giving the ability they want to shop they want to go out to eat they want to travel. i think as you see things continue to open, if we don't see this surge incases or surg in more importantly surge in hospitalizations, i think people become increasingly more comfortable and the stocks are able to have a discretionary sector tied to experiences which were the most hard hit will continue to recover here >> mike, there is so much -- >> and just getting back to -- in terms of the retail stocks, mike, just want to bring up the fact that in consumer discretionary, you have the targets, walmarts, they don't trade like the department stores which trade differently than the b

the major index etfs are at extreme over bought levels joining me to explain more about that is paul hickey tell me about sort of who all is over bought and by how much. >> i think the better question is who is not over bought. over the last week were we looking at the s&p 500 stocks. since march 23rd, only one stock is down and only eight stocks are up less than 10% just about everything is over bought at this point we had a situation, 86% of stocks in the s&p 500 were trading one standard deviation above their 50-day moving average which is the level we consider overbought, so to speak. you see a high level there we have only seen 80% of stocks at over bought levels three other times. february '91, june 2003 and october 2011 a month later you saw the s&p down twice but up once three, six and 12 months later we were up every time with better than average returns. as we learn from the markets, it seems strength begets strength maybe have a small correction but continue to move higher. i guess that tells us all we need to know about how strong momentum can be for the market and the back half

here to explain further and talk about tech's recent outperformance is paul hickey co-founder of an investmentrket commentator. i mean i wish i could look at that paul and say golly that's awesome but i don't have fond memories of 1999 or 2000 there's some key differences or i hope. will you tell us about them? >> yes first thing when you look at that chart in 1999-2000, the nasdaq was outperforming the others by leaps and bound. this is a more steady increase when you lack at the market and what's leading the nasdaq 100, the five largest stocks, they are not cheap today but they are a heck of a lot more reasonably valued than the top five stocks were in '99-2000 median of the five largest stocks is in the s&p 500 back in '99-2000 was 49 times earnings, 33 multiple points higher than the broader index. today top five largest stocks median multiple was about 30 times or nine multiple points higher than the s&p 500. they are not cheap but they are not insanely valued. >> santoli, disappointed where the hell are you where's the clap board where is the cnbc sign that you had designed >> reporting

markets and who's getting into the markets amid all of these wild market moves, i want to bring in paul hickeyant to bring in mike santoli, cnbc senior markets commentator. let me start with you though, paul you've been looking at some really interesting numbers about what happens before and after the markets are open and you've come up with a pretty unique explanation that actually maybe we should really change the way we're all trading. >> well, i think the long-term performance of the market, all of the market's gains historically yeah i'm here can you hear me? >> yes go ahead >> okay. so virtually all of the markets gains have come during the overnight session of trading and it makes sense when you think about it because investors are taking the overnight risk. there should be no premium to equities or no compensation, extra compensation to hold equities during the day because you can always get out of that position holding the position overnight where investors have been rewarded for taking on that risk the reason they take on that risk and are compensated for it is for reasons like we sa