Fear is the Market Killer with Gavin Baker of Atreides Management

**Guy Adami** (0:00)
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In 1987, I was out of college, but one of my favorite bands of all time, and Danny, this will resonate with you, will be a band that came out of the great state of Georgia, Athens, Georgia, by the way, that would of course be REM. In 1987, Danny, they released Document. On that album were a number of different songs, the one I love, beautiful song, by the way, but one of the songs was, It's the End of the World As We Know It, and I Feel Fine. And I gotta tell you folks, we'll put this up on the Risk Reversal website.
You look at the lyrics of that song, and it's almost like those MFers had crystal balls or something because everything in that song is lining up with what's going on right now. The world is screwed without question, but in terms of the market, Danny Moses, everything's beautiful, I feel fine. What could possibly go wrong here?

**Danny Moses** (1:22)
Yeah, nice bounce off the lows. S&P up 8% off the lows. NASDAQ, I think, as we speak right now, up 12% off the lows.
Just a deep breath. Certainly it's rallied more than I would have thought for sure. Like we talked about before, it's not keeping up with inflation in the markets. Maybe it's starting to catch up to inflation. This is why we keep saying cash is not a great place to be, but a little shocked at where this thing has gone. Maybe people were caught a little bit off sides. I do think there's some other stuff going on here with quarter end books. I think there's a lot of redemptions happening in hedge funds that they have to raise cash. I think that sometimes can mean short covering as much as it does long selling from time to time. So I think as books come down, we're seeing a little bit, we're gonna talk about some of this meme stock revenge that we're seeing that may look like that, but things aren't getting better in my opinion. And so again, I fade these type rallies here.

**Guy Adami** (2:09)
Before you get in, I wanna welcome back Dan Nathan. Was on a bit of a hiatus last week. Happy anniversary, by the way, Dan. How are you? Welcome back.

**Dan Nathan** (2:17)
22 magical years, Guy Adami. I will tell you this, it was kind of interesting for me. I play the heel on CNBC's Fast Money, A Little Bit Guy. I started doing Fast Money at No Shit, April 2009
And I think I've been labeled bear since then. So I literally nailed the bottom of the S&P. I think I started, was trading at 666 that day.
But I will take you back to March of 2000 I got married on March 18th, 2000 I took down my trading book. My firm was very short. We were very bearish. To be very honest with you, I took my book down. I went away for two weeks after my wedding. I got back, I think on April 1st. The market had topped out.
All my buddies made a lot of money and I got married. So I go away a week ago and I don't really press shorts. I don't press markets where the sentiment is really bad and we're down a lot and everyone's convinced we're going lower, it's the end of the world. And again, because I was going away for a week, I cleared out of some stuff and it helped me in that instance because we've had this sort of massive rally. But I'm kind of in Danny's camp here. It feels a little technical. It feels like the sentiment was just really, really bad. The uncertainty level about the geopolitical environment was really at its height at that point. And so now here we are, what, 10 days later, the S&P is down 5% on the year. When you think about the level of uncertainty and what's going on here, the fed rate hiking cycle, the potential for more geopolitical dust-ups, maybe in China, with Taiwan or something like that, it just doesn't seem like the stock market is paying much attention to everything else that's going on here.

**Guy Adami** (3:47)
In case you were wondering, by the way, you are in fact listening to the On The Tape podcast. Guy Adami here, joined as always by the sexy Danny Moses, the brilliant and equally sexy Dan Nathan. This week on On The Tape, Danny Moses is gonna break down a few of these sweet 16 games. I know you were waiting for that last week, we teased it.