TOOK A MAJOR BLOW LAST WEEK.

SO FAR THIS WEEK WE'VE BEEN IN

THE GREEN.

WE'RE FINDING WAYS TO RALLY EVEN

INTO THE CLOSE.

NOW WE CAN ACTUALLY SEE THIS

TREND PICK UP, BUT WILL IT GO

THROUGH THE END OF THE YEAR?

JOINING ME TO DISCUSS POTENTIAL,

JEFF SAUT, CHIEF INVESTMENT

STRATEGIST FOR RAYMOND JAMES.

JEFF, I CONSIDER YOU ONE OF THE

BEST IN THE BASE.

MAKE OUT WHAT IS GOING ON?

LIKE INVESTOR OF LAST WEEK.

PEOPLE ARE SORT OF NERVOUS EVEN

THOUGH WE'RE UP?

>> OUR SHORT TERM PROPRIETARY

MODEL REGISTERED A SELL SIGNAL

ON OCTOBER 2nd.

WE WROTE ABOUT IT.

IF YOU HAVE SPECULATIVE TRADING

POSITIONS ON, YOU SHOULD SELL.

WE ACTUALLY IDENTIFIED THE 2603

LOW ON OCTOBER 29th.

SAID S&P WOULD RALLY BACK TO

2800, 2820.

NOT GET THROUGH THERE, COME BACK

DOWN, MAKE A SECONDARY LOW BELOW

THE OCTOBER 29th LOW.

WE THINK YOU DID LAST WEEK.

WE SAID YOU SHOULD BUY THIS WE

THINK LOWS ARE IN.

THE STARTING OF THE YEAR-END

RALLY.

CHARLES: I'M CURIOUS ABOUT

OCTOBER 2nd.

THAT WAS THE DAY BEFORE JAY

POWELL'S INFAMOUS SPEECH

TRIGGERED A SELLOFF.

WHAT WEAKNESS DID YOU SEE AND

WHAT WOULD MAKE IT OKAY SIX

WEEKS LATER?

>> WE'RE STILL IN A SECULAR BULL

MARKET, CHARLES.

YOU AND I TALKED ABOUT THIS FOR

A DOZEN YEARS.

SECULAR BULL MARKETS TEND TO

LAST 14 PLUS YEARS.

DEPENDING ON STARTING POINT,

WHETHER OCTOBER OF '08, WHEN

MOST STOCKS BOTTOMED OR MARCH OF

'09 OR WHETHER YOU LOOK OUT

TRADING RANGE NOVEMBER 13th.

YOU DO THE MATH, THIS OUGHT TO

HAVE ANOTHER FIVE, SIX, SEVEN

YEARS, IN IT.

FEW PEOPLE ARE OLD ENOUGH TO

SEEN THE 1949 TO 66, OR 1988 TO

2000 SECULAR BULL.

HISTORIC PRECEDENT.

HISTORIC PRESS DENTS?

>> I THINK TO A LARGE DEGREE,

MAINLY NOISE.

IF YOU LOOK AT THE MARKET

INTERNALS, NOT JUST THE INDICES.

IF YOU LOOK AT THE

ADVANCE-DECLINE LINE, IT FAILED

TO CONFIRM THE DOWNSIDE.

MAJORITY OF STOCKS HAVE BEEN

ADVANCING.

WE THINK IT WILL CONTINUE ALL

THE WAY, ACTUALLY INTO FEBRUARY.

CHARLES: WE'VE BEEN HAVING SOME

UGLY BREATH.

THE MARKET BREATH, JEFF.

I THINK ONE DAY THIS WEEK WE HAD

FOUR NEW DAYS, AGAINST 1000 NEW

LOWS.

THE BREADTH ITSELF HAS BEEN

PRETTY UGLY.

WILL THAT MAKE A DRAMATIC SHIFT

TO THE UPSIDE?

>> YEAH.

THE ADVANCE-DECLINE LINE IS NOT

NEARLY AS UGLY AS THE NEW HIGHS

OVER NEW LOWS.

THE ADVANCE-DECLINE LINE HAS

COME IN A LITTLE BIT.

BUT HERE RECENTLY, NOT CONFIRMED

THE DOWNSIDE THAT THE MAJOR

INDICES HAVE INDICATED.

SO, YOU HAVE HAD THIS DIVERGENCE

BETWEEN THE ADVANCE-DECLINE LINE

AND MAJOR INDICES.

CHARLES: RIGHT.

>> THAT IS MAJOR OCOEE

OCCURRENCE.

CHARLES: WHAT ARE TARGETS INTO

YEAR-END AND 2019?

>> 3,000 AND YEAR-END.

CHARLES: WE LEAVE IT THERE.

THAT IS THE BEST THING I'VE

HEARD ALL DAY.

JEFF, I LOVE THAW TEACH US

THINGS BUT YOU ALSO GIVE US

SOLID NUMBERS.