Fast Money Traders Talk Market Rotation And Semis Hitting Record Highs

Oh yeah okay no payroll and therefore let's just move past that and so if you think about the broadening of the market I would argue industrials have led the S&P all year utilities have been a kind of a go-go area to be but the the pharma small caps this week was great people are looking for rotation they are looking for opportunities to not be tied to what feels like a frothy trade but I'm gonna get back to I think outside of pharma the big event for me this week were that semiconductors hit all-time relative high against the S&P and and the deal flow the the dynamics and when you know today we have more data center deals we're gonna have a great conversation about data centers later on in the show so stick to that but you know you have Fujitsu Hitachi Nvidia you have all these guys that are global players getting involved in the data center you had the open AI deal you had different types of infrastructure investments into AI so there's nothing about that that's letting up here it does mean that the frothiness around the trade in the trade today certainly felt like you had the barbell of some of this value stuff but boy you know you get into crypto get into quantum get into the parts of the of the real go-go FOMO parts of the market and they they closed basically at their highs and and what you couldn't do is you couldn't trade off the payrolls number so you don't have the valid volatility if you don't have anything to trade off of so people don't trade off of a dull market not to say that this is dull but the consistency of which it's gone up there's nothing to stick it down now Nova no no jobs number yields are pretty intact so you the 5 to 10 to 30 we've seen those cascade lower and now we haven't seen them pop they're not even back to 50% retracement yet so I think people feel comfortable where the markets at someone like me though will say November December seasonally great months for the market September October not great months do we do a reverse now so now I'm starting to think does the sell-off come later oh so pulling forward basically or has or has the sell-off just been avoided with the government is shut down and the market has rallied that we don't usually see that in the first couple of days of a more of a government shot right do we throw a flag for a third-person reference when someone says someone like Brasso would say maybe heartening about this week though is that it's not it wasn't the mag 7 that was advancing right I mean that's basically our point that there's sort of a broader advance going on here and maybe that makes you feel better about the levels that we are at well I think that's definitely constructive when you look at the multiple of the overall S&P so if you're seeing a broadening out away from just the mag 7 away from just AI and data center plays away from just the adjacent utility plays away from crypto which Steve had mentioned earlier has been quite volatile itself I think that's actually supportive of expecting to see larger Ford return so I think from that point of view it's constructive listen you're moving out of some of the bad some of the beta now but when you're moving into IWM names like that even on even on a relative basis I get that it's playing to catch up trade and has now hit this new all-time high but I still think on a relative basis if you want to kind of move away from the very concentrated tech part of the S&P maybe you look at RSP your seal gives you a nice broad type of exposure but you're you're not completely abandoning what has gotten you here to this point