Peter Tuchman, The Einstein Of Wall Street | Government Shutdown,Q4 Outlook, New Record Highs - video Dailymotion

Benzinga

Peter Tuchman joined us on Benzinga's Premarket Playbook to talk about what he is seeing out there in the market.

Transcript

00:00Let me bring Peter on here and see if she has an update here. Peter, good morning. Happy Thursday.

00:05How are you doing today? I'm great. I'm great. How's everybody doing? We're doing good. What

00:09do you got for us today? What are you seeing out there? You know what? Look, we've had,

00:13and it's absolutely amazing. On the last day of the quarter, we had this massive $4 billion

00:17buy program coming into the exchange, which is kind of baffling for the last day. Normally in

00:22a market in a quarter where you've got nothing but upside, you usually would have profit taking

00:27and not huge buy orders coming in. But it's almost as if there's just this massive influx

00:32of interest and excitement about just putting money to work in the market. So that was the

00:38last day of the quarter. Yesterday, the first day of the quarter, the market did not engage

00:41the government shutdown at all. It really didn't care. I mean, the market tells you what it

00:45thinks of all this information. That's a big deal. But yesterday on the close, we once again

00:51got a $4 billion buy program on the close. So the amount of money that's being put to work

00:56and going into the market. Normally in the beginning of quarters, you do have a big influx

01:01on the buy side, but it's almost, you know, the market is not engaging this government shutdown

01:05stuff. How long it stays on is the question. But you know what? Historically, normally the

01:12last time, I guess each year, they usually, you know, in the witching hour, they usually

01:16make some kind of a deal. Obviously the agenda around that right now is not happening. But you

01:22know what? Once again, record highs across the board in the market yesterday. So it's

01:28baffling to me how much. I mean, we're seeing good volatility, solid volume, $1.3 billion

01:34on the tape in New York yesterday. Just crazy, irrational enthusiasm around the markets.

01:39And you know what? At the end of the day, that's going to pan out for trading, trading futures

01:45and trading even a lot of the equity names. So Peter, I got a really quick question for

01:50you here. Are you expecting any type of change in volume with the Yom Kippur holiday here today?

01:56You know what?

01:57Lighter volume?

01:58No. To be honest, no, not at all. I mean, we, you know, we've been talking about seasonality

02:03through August and September. It never showed up. We had tons of volume. We did not have

02:08any weakness in the market at all. August, September closed out in super positive territory.

02:13And, you know, at the end of the day, sure, I'm sure most of the Jews are not at work today.

02:17But at the end of the day, there's a lot. People are probably covering them.

02:21And historically, yes, there's been a little bit lighter than usual volume on Jewish holidays.

02:26But I don't think we're going to see it today because there's so many moving parts of the

02:29market right now that I think the flow is going to be there.

02:32OK, and then let me ask you one more follow up question. We talked yesterday about the potential

02:37up move in the market being related to inflows for the first of the month. And sometimes that

02:42can really kind of carry over to a second or maybe even a third day, depending on how much

02:47buying there is to do. You spoke about the buy program right there at the close. Is that part

02:51of the reason why we're looking at a positive move here in the pre-market this morning? Do you

02:55anticipate that to hold here today? I do. I do. I do. Yesterday we opened down, right,

03:02basically that emotional reaction to the fact that the government shut down and people weren't clear

03:07how much that was going to impact markets. But almost within the first hour of trading,

03:11it completely reversed and we spent the rest of the day going towards record highs, which is where

03:16we closed. And so, you know, the influxes on the close have been sizable coming the last two weeks

03:22of that quarter. And as I said to you, normally in a quarter that's really bullish, you would normally

03:28see profit taking at the end of it. You know, guys, funds are judged and graded on what their P&L looks

03:34like at the end of the quarter. And sometimes they want to lock in some of the profits because

03:38they don't know what's going on. They don't know what the impact, how long this government shutdown

03:43is going to last and the impact on the market. They don't know about tariffs. Still, we're starting

03:48to see a lot of impact on the consumer, on consumer spending, consumer confidence by tariffs,

03:54right? We are seeing a huge spike in costs and expenses. Some are being absorbed by the company,

04:01some are not. Walmart, Target are absorbing some, Amazon also absorbing some, and then some are

04:06passing it on to the consumer. The volume we've seen is significant. It's really, look, beginning

04:12of every month, you're going to see allocations come in on the buy side. But when you've got so

04:17many potential looming things that could dislocate the market, at this point, it looks like nothing

04:22can dislocate this rally. It is absolutely baffling. And they're not only just buying equities and

04:26futures, they're buying everything that's not locked down. I mean, as David said,

04:30the spectacular move in gold is extraordinary. Normally, gold is a flight of safety. When

04:37markets go up, people are putting more pressure on gold. They're buying gold. They're buying

04:41equities. They're buying everything that's not locked down. So a sizable volume.

Peter Tuchman, The Einstein Of Wall Street | Government Shutdown,Q4 Outlook, New Record Highs

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