 Hey, everyone. Good morning. It's Wednesday, and we are on the floor of the New York Stock Exchange with Jim Kramer to talk about the markets And this record rally Jim the S&P 500 hitting new highs. Yes, but this is a massive rotation Doug Kessels could be about this morning real money pro out of fang and fang related out of cloud Into companies that benefit from tax reform. So you have a lot of down-and-out retailers that are moving up And you have Amazon down You have the banks moving up you have the cable companies moving up a Comcast anything. It's domestic is flying Anything that's international is selling off, which is the sign that there's not a lot of new money coming in There's just money sloshing around Where fang stops nobody knows I mean It's a reason why you want to be diversified like everyone has always said for action alerts Jim Why don't you have Netflix? Why don't you have Amazon and I've always said that the one day There'll be a downturn that'll take fang down. It'll take your breath away The rotation out of Facebook and Alphabet is going into Lesser domestic names and going into banks and this kind of Activity is why I always say you have to stay diversified people say well, why do you own a key bank for the trust? Why do you own city? Why don't you just own all the hot ones? Well, this is what happens when the griddle gets too hot and you have a sea change which is tax reform So this is a major change and people have to be aware. This is a sea change that is not over This is day two and you highlighted on CNBC Macy's which could benefit from tax reform Macy's is a giant beneficiary as is Target as is Coles Should they be? How's their business? I think Macy's business is better I don't know about Target But I do think that you have to take into account the fact that it is finally hitting home The tax form is going to happen and people are re-rating stocks that are domestic and re-rating stocks that are international and the money's flowing out Of international no matter how good they are. It is a multiple shrinkage going on because you have Salesforce You had nine different brokers raise the price target today and the stocks down. What does that tell you? Well, and what what are the layoffs that Autodesk tell you about the broader cloud space as well I mean, I think Autodesk's problems are specific to Autodesk, but I don't think people are going to look at it that way They're going to say that the average revenue per unit is down. So maybe the cloud's slowing You know, I do a lot of checks in the cloud. It's not true But then on Monday, we have Western Digital downgraded by Katie Ubrity. That's got a cloud related component The cyber security stocks were all down Some are wondering whether the Fang ETF was the top I am someone who is skeptical that Fang's done. I do like it recharging I'm confused about oil some are going up some are going down the bank move is a move about How they're going to be able to return capital, but the move is too aggressive The exaggerations here could be related to end of month, but it also could be related to not a lot of supply Of the companies that are retailers. It could be short squeeze There's plenty supply of fang if you want to get in fang and I'm not talking about diamondback energy So this is a monumental day and I don't know where it goes I Am glad that Action Lords is a diversified portfolio today. Yes, it is So we'll watch this rotation meanwhile Jim Chipotle CEO stepping down the stock went up last time I looked. Yeah, Steve L's Monty Moran before him Have not gotten their arms around this issue of food safety and funliness and the same store sales Which it started to turn back up Just exactly when I said they would which is 18 months after December 7th, 2015 Norvirus Turned down again because of some video and because of some food safety issues and the clock started again on 18 months Except for this time the stock is much lower. So Chipotle Needs a steady hand. I think it's interesting that L said they need to execute better But he's not leaving. He's gonna be the executive chairman. He'll be looking over whoever any CEO's shoulder But this is for the reason why I've said it to the second Incidents you can't own the stock is the multiple shrinking rather racket rapidly. It's getting down to like a restaurant brands All right, meanwhile Jim Morgan Stanley upgrading Allergan giving some attention to its migraine and depression Drugs is the pipeline finally getting the attention it deserves I think that the sum of the parts is so much greater No, we did a big sum of the parts analysis on our last conference call And in some great bulletins Jeff Marks working in Zevfima doing some quality work with me on Allergan Yesterday Tim Collins who's on does a lot of stuff with real money It's called the bottom in Allergan which was very counterintuitive because the stock's been a falling knife But this this upgrade is very substantive and it does say the 2018 pipeline is good Therefore the gap from restases may not be as bad as we think that's very important So if the trust didn't own Allergan, will you be a buyer here? Yes, absolutely. It's 10 times earnings. It's too cheap All right, that's important. Meanwhile another action alerts plus name Illinois tool works. Jeffrey's raised their price target Deutsche did the same yesterday. It's a big winner for the trust. Yes at 136 This company was the most downgraded company. Why because it had auto exposure. Well autos What fire look at auto zone by the way look at O'Reilly automotive Look at advanced auto parts. These stocks are going up as if there's going to be consolidation I think there was a pause in the growth of these stocks. They're all domestic so they benefit from the tax reform bill and Illinois tool works uniquely has a Fabulous past Asian businesses that are definitely deserving of a higher multiple and I'm glad it's happening Where were these people 136? That's what I want to know All right, Jim. We'll wrap up with earnings to watch anything you're expecting from Kroger Well, you know Kroger's domestic and it makes profit. So it may not matter like target It may not matter if there's still a lot of tax reform talk in the air their results may be Avoid they may be overlooked And that's rather amazing, but it could be happening By the way, let's just go over a couple things that I think are salient Bitcoin You don't have an advance like that and expect that it can stay that way the velocities too fast the parabolic moves too great You have companies like Riot blockchain that company to change his name trying to capitalize on black chain trying to capitalize on Machine learning trying to capitalize and all the usuals You have Evan Spiegel with a very important op-ed talking about social media And news fake news and news last week I posted a what was viewed as as being an incredibly stupid post that if Instagram decides to go the way of of social media on Twitter then what I'm sorry on If it goes on Evan Spiegel with snap if they if they get to where there's news Then they would have a leg up on snap This is even a further move by snap That's correct because snap knows that a lot of younger people get their news from snap and they do not want Anybody to be confused about what's real news now. You'll see Facebook going down, but that's entirely part of the rotation It's not snap. I am a big believer that if Facebook were to offer Insta stories, which they already do I know bear with me insta stories and news and you Somehow make it so that you're it's collated and curated that that would be a major blow against snap, but right now they're not Again, I want people to not take their cue from the stocks Look at the underlying underlying fundamentals, but understand that the market was not positioned For a bill that would dramatically help domestic companies and mean nothing for the international other than repatriation So watch the international companies come down Realize that there are source of funds for the domestic and act accordingly and stay diversified That's why we took such in my last conference call For action alerts for club members I talked about whether I was negligent and not owning Netflix and not owning Amazon And what I said was we own Facebook for the trust and we own Google for the trust They'll come a day where fangirl get hurt so badly that we will look like we are Not playing the market. I mean playing them are that we're not investing I do believe that Amazon if it comes down could afford an opportunity same with Netflix I think these stocks are very very interesting but remember we're only on day two of the rotation and it's just beginning to Donal people that this tax reform is for real So when you look at a Comcast when you look at a Home Depot when you look at a Costco When you look at a target when you look at it a any regional bank you realize what's happening is people are saying Well, we got J. Powell coming in they're gonna be able to return a lot of capital to banks They haven't been able to We've got tremendous tax reform that it's going to help the domestic companies particularly the retailers also the restaurants But does nothing for the international companies and when people to give international they think of tech look at Salesforce What a great quarter, but the stock is down three bucks from when they report it a lot of this is a sea change We don't know how long the sea change is going to last But I am urging everyone to look at their portfolios and recognize that the sea change is here All right Jim you have another action alerts call next Wednesday, so everyone should sign up for the club to watch that Okay, Jim great information. Thank you so much for more information on the stocks Jim just mentioned Please head to the street comm