our friend steve grasso is there to break down the technicals and key levels to watch in the s&p.watching today? >> hey, scott. >> what should we be looking at? >> if you look at this chart right here you pointed out early on in the show we saw this fall off in the s&p, about 7.5% from may, then you watch this 10% rally. the long and short of it is we're trending here, setting up literally in the next couple days for possibly a 4 to a 6% drop. the 4% drop brings us probably to the 50 day moving average, 1728, and now zm if you see that bigger drop you can get to 1698. be be careful here, josh mentioned it, pete has mentioned it, we're all looking for this drop but the takeaway from this if we want to rally on the d.c. december 13th due day we're looking at, we have to start selling off almost immediately in the next couple of days to finish the year higher than we are now. otherwise, we're looking at basically 50 handles lower to finish off the year. >> are you looking for a drop because we couldn't hold and close at 1800? i'm curious as to why you're looking for a drop rather tha

steve grasso, on the floor of the new york stock exchange. >> how are you, sir?re you watching? well, sir, thank you. >> bank of america. the desk and i have been bullish on this for quite sometime. it is overbought right now. if you look back, each and every time it was overbought in march, overbought, sold off, 13%. basically, in may, june, overbought, sold off 13%. july, sold off roughly 8%, and now we're up here in unchartered territory. so it broke out, once it was above $15, the stock indeed broke out, we're eyeballing $20. that goes back to 2010. but you could see a precipitous drop sometime soon in the name. i'm long it. i'm staying long, because i can't time it just right. it is making a pattern of higher highs, higher lows, but look for a pullback in bank. >> josh, is that how you see it? >> i mean, look, it could have pulled back. it's an rsi of 80. is it overbought? technically, yes. but if it pulls back to 15, are you really that nimble that you're going to be right there on the spot for that 7%? i don't know. >> right. which is why grasso himself sa

rob morgan, peter anderson from congress asset management, david kelley from jpmorgan fans and steve grasso. david, everyone is talking about janet yellen and her testimony to the banking committee tomorrow as they begin the confirmation hearings for her fed chairmanship. what do you expect her to say? >> well, i expect her to say that she is data-dependent. i think these going to try to avoid getting labeled as a dove or hawk. i think she'll say she's essentially an academic by nature so she's going to look at the numbers and the numbers are going to govern fed policy. but i think there's a fundamental contradiction here. you can't say -- assure people rates will be low forever but then just say you're going to watch the data. in a way i think she'll build herself into a trap by which she'll be forced to gradually tighten as she's fed chair because of her data-dependency. >> so, steve grasso, what kind of a trade are you seeing ahead of what we learn from yellen and that testimony? how do you think the institutions react to it? >> i think we'll see more of what we have been seeing, sort of

. >> ad hoc pop for steve grasso. finally showed up. he made it through traffic, which has been horrendous because of the marathon. he'll join us later on in the show. all right. coming up next, it's time for trade school, ipos with a huge day, one huge one day gains. >> go ahead. try it again. >> tough to figure out. but our traders are on the case. then ever wonder how your phone knows when you turn on the side. a company makes that and other motion tracking technology possible. stock is up 50% this year, talking to the ceo, and we're going to trade that stock straight ahead on fast. really? what's wrong with trying new things? look! mommy's new vacuum! (cat screech) you feel that in your muscles? i do... drink water. it's a long story. well, not having branches let's us give you great rates and service. i'd like that. a new way to bank. a better way to save. ally bank. your money needs an ally. >>> we started off the show, we were missing a trader, look who we have here. >> went to the wrong building i apologize. >> nice. >> it's onl

tim seymour, steve grasso and guy adami. let's get to our top story. the s & p and dow closing at highs of the day. the do you seeing its longest weekly winning streak in three years. so with another day of records, is this becoming a true stock pickers market? guy adami? >> it always has been, to a large extent. yeah, it's been that type of market. i do think it's a stock picker's market, we've done a good job. i'm shocked that we didn't trade down to 1760 this week, i thought we were headed. there i thought we would go to 1740 the week before. the fact we continue to make these moves without any semblance of even a minor move to the downside scares me. so i think 1760 is in the cross hairs, i'm surprised we are here. >> correlations have come off as opposed to risk on risk off, it's truly just a market of stocks as opposed to stock market. >> yeah. but you know, to guy's point, we've had so many pullbacks, when i looked at the chart i would swear we would have every reason to backtrack to 1730, backtrack to 1698. we haven't done it. but i think it's

hi everybody our traders tonight are steve grasso, brian kelly, guy adami.at to have you with us. let's get straight to the top story tonight. is the economy stronger than we thought? well, stocks surged on a surprisingly good job support, with the dow closing at yet another new record high. so, guys, is this the green light for economic growth? or should you be fading the optimism? what do you think, guy adami? is good news good news? >> clearly. josh i'm sure has strong feelings about the job numbers. i think these numbers will be a little lumpy the next couple months. we'll see, i don't think the economy is getting that much better. i think there's been a lot of cross currents in the data. clearly the market wants to go higher, i thought we would test the 1740 level in the s & p, i didn't think we would rally, maybe we would bounce but not see the rally. next week is an important week. next week could be as important week technically as we've seen in a while. i think next week will tell the tale for the next 100 s & p points. >> these job figures were big

steve grasso and jonathan corpina. steve, what happened at the end of the day? walk us through how this market has been just -- >> everyone's been buying into this market, of course. waiting for that pullback to happen. when that happens, you get the shorts that are just waiting, waiting, waiting to cover. and then as they start to creep up to those round numbers, they do cover. that's the last leg of it. so right now i feel like year end, as bob said, seasonally bullish. i don't know right here. i feel like we're due for a pullback like everybody else. the problem is december 13th you get those budget hearings. that could be a catalyst. that could be a tail wind for the market to go higher. we're running out of daylight before year end for that selloff. >> jonathan, you both have seen, you know, ups and downs in this market. how does it feel to you in terms of the health of this market and, of course, the sustainability of this rally? >> right. the higher this market goes, we keep having these conversations of when is the pullback going to happen? what's going

hi everybody our traders tonight are steve grasso, brian kelly, guy adami.h us.

. >> steve, we had grasso yesterday taking on that call on bank of america. >> he's wrong. [ laughter ] >> whether it was really cheap or not. is bank of america the best way to play the banks? >> grasso was wrong. i wish he was here so i could tell him directly. >> that a boy. >> i own citi. that's one of my two. citi's cheap. i'll disagree with you on one thing -- two things, the second one in a minute. the cheapest large cap financial is actually aig. it's selling -- >> i was talking about the banks, but it's a good point. >> i own that, also. >> sure. >> my other cheap one is gilead. >> one of the best performers year to date. >> absolutely. absolutely. i happen to own it. it's not a coincidence. gilead. let's talk about that for a second. if you look at gilead -- >> on your record, you've bought one -- >> which one? gilead, if you look at that, 6 to 650 in earnings in 2015. that's 12 times, and guess what, that number will be low. it's cheap on current numbers for a company that's growing this quickly. so while the stock's done well, i think you can still buy it. let's address th