charles: i guess who comes up with the fed tweezer or screwdriver will win a nobel prize one day. maybe it is not the tools they want but it is the tools they have. The problem is for the fed is, when you're a nail, when you're a hammer, excuse me everything is a nail, right? so they're hitting it with the only tools they have in the tool chest to be able to do it which is raising interest rates, shrinking the balance sheet, tightening financial conditions, to try to slow demand which naturally will slow inflation. the fed can only control the demand side. there is a lot to be made a lot of this inflation is driven from the supply side. should the fed take that into consideration? do they need to essentially destroy the economy particularly parts of this inflation inflation they can't fix anyway? > no, you're exactly right, charles. this is where i think the conversation becomes a little heated. there are certain things they can't do structurally.
charles: to that point, a lot of people are saying hey, there are certain things the fed can deal with policy and they can play "whack-a-mole" all they want, they can't find more oil, they can't build new apartments. the risk that you start to move from an anchored, to an unanchored position on inflation expectations on the yield curve which is why you saw such a big spike in interest rates this morning on that news.
that is a recipe for disaster as it relates to what the fed has to do, the path they will have to stay on, charles this will be a long slog for a while. again there is so much oversold condition here, not surprising a little bit of a reversal on the we have to do that through the end of the week but this action today is very bullish. that is really what has been defining this uptrend for the last decade. that is that 200 week moving average we've been talking about, really kind of all this year. the market recovered that, importantly, what the market is doing today is holding a critical bullish trend line from the 2009 lows. one you had a very negative open, down about 2%. today's action is actually good on several months. but listen, the market has been incredibly oversold here around you really kind of hit the nail on the head a second ago saying this is capitulation. by the way, don't let neil give you any guff by the way because i get blamed every time you have me on the market crashes. Number hit the tape, and the market started to implode what initially crossed your mind? > panic. i've been seeing, you are posting a whole lot of things on twitter at least that suggests we've been oversold here, right? that number though, when that lance, you got a smile on your face, my man. i want to get a handle where we're going from here. where do we go from here? want to start with our first guest. if you think about this, if you think of all the assets out there, about 90% are down. here's the thing, there has been no place to hide. performance breadth, right? the breadth of the market. so this brings us to where we are right now, what we're kind of thinking about here.
it is really pretty bad but also many ways suggests that the market was oversold. coming into the session we had the second most amount of down days in a year outside of 1974.
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