The 'Halftime Report' Investment Committee weighs in on the crypto crash
Uh, because of just how treacherous markets have become, there is no trend, its very, very choppy. The rally this morning was led by the junkiest of junk uh electric vehicles. Our arc was up eight percent like thats, not what im talking about um. I think what you have to watch right now, if bitcoin can stabilize and this stablecoin issue doesnt look like its systemic or at least not this week, uh thats important if bonds continue to catch this bid, which is now on day three and we see we see Uh yields lower thats important if crude oil fails to rally here, uh and even and even heads, lower thats, important and the last thing apple apple is the problem. Today. Its very rare this year than anyones been able to say that. But when you see something like uh, you see amazon up three or four percent and apple holding us back uh again. We dont typically see that type of market uh in 2022, but if apple can stabilize and catch a bid, if those things all fall into place which theyre trying to uh, we could have a thousand point dow rally. We could have a three or four percent rip in the now absolutely given how oversold we are that doesnt mean the bear markets over, but these things do get a break every once in a while so thats, what im paying attention to once again bitcoin stabilized and The stable coin thing stop being a a an issue: uh apple oil, down bonds, higher those four things.
If they fall into place today, tomorrow, youre going to get a really big rip here in the markets. Uh do you want to go with it, but thats? How i see it i got ta i got ta say john, i mean josh makes some great points here and and theyre being, let me say echoed by some of those that i speak with on a fairly regular basis who are growing quite concerned. I think its fair to say about whats happening in the crypto market and the amount of wealth destruction that has happened there i mean were talking like 800 billion dollars or so in a month four to six weeks, a lot of which doc has come from 25 To 30 year old people who can ill afford to lose the kind of money that they may be losing in this kind of a market. And let me also say that the concern is about when you have this kind of dislocation in any asset class. Theres. Ripples to it – and we just dont, know what those are yet and and and some of the smartest investors that i talked to are now calling this. The no mos market, no more because they dont know whats happening under the surface, with crypto theyre, not sure how to read whats happening in the bond market nor the stock market and are confounded by the same things, doc that we talked about at the top of This show at one minute it looks like the markets gon na rip the next minute.
It looks like the markets going to dip, and i dont know what, in the worlds going on so im out no moss doc, yeah well um, as josh said uh. You know the junk was what was really ripping this morning, scott junk being like gamestop gme. It was up 31 thats the range on the day. It went to 108 believe it or not, uh on just this frenzied buying out of the apes again, because i cant believe anybody else is diving into this one scott, but we do need to still see uh. I dont disagree about the possibility of a rally. I dont know that were there yet. I was talking with patty our producer about um. The uh mike wilson call for 3 800 to 38.50 and we broke through 3 900 today and got very close to michaels uh higher end of that call um. But i havent seen enough of the despair to your point. Scott. There are ripples that are felt when you shave uh, half a trillion dollars off of the crypto markets, like that, with ust and with luna and with the lunacy that has gone on over there with that uh struggle to try to hold that stable coin together. Um the ust, but i think overall we are seeing some signs and that interest rate picture scott thats, one that i drill right in on, because you and i were gon na talk yesterday and then uh. You know there was a lot of interesting things to talk about in overtime but tlt.
That is one where weve seen big upside buying of calls the opposite of what weve seen for weeks and months. So that means people are willing to bet 42 000 of those trading yesterday that the june 118 strike weve got there today, like that, we went from 116 yesterday to one 1877 today and when a bullish, engulfing candle shows up twice in a week monday end again. Yesterday, which is what our technician aj monty says um. I got to believe that his call to 123 might be accurate if we get that scott thats going to be a lot of great uh drive for the market. People will get a little more uh sanguine about things rather than scared and desperate about things. Yeah john tlt is hoding right now, yep yep, i think youre right josh. It were likely to see a breakout to the upside in this, which means, of course, tlt up rates down thats something thats going to be good, watch and see.