warren myers of dmc securities thinks this rally is getting tired, do you agree? >> i think you see yielding climbs and yields coming out of that market, so we had a little run up there. i also think we had a push up due to this being an expiration week. this rally cld take a breather and start to settle back in a bit. >> what about the rise in yields and the inflationary implications with the ride of grains and everything. >> certainly some of it is, but i think we're about to hear the word transitory. it is sticky. you're about to hear this very soon. far so much debt in the world. most of it is outside of the united states. but as it relates to just pure debt and what we have towork on, deflation is a word we will hear a lot for the next many -- >> deflation? >> yes, so sticky, probably not. the rotation from fixed income into equities is about what warren discussed. it's a little tired, we expect a pull back. on that larger pull back, the u.s. is in the cat bird seat and we would be all over it. >> we want to own the company that's will benefit from lower ener

particularly warren myers. >> yeah. warren myers and brian with us. as you sit here, the knight situation good folks behind us here making their living every day, down here but the firm was saved. >> yeah. i'm glad it happened. glad they were saved. it was a terrible incident that happened in the first place. lot of people are calling them a high frequency firm that's not an accurate terminology. it just shows you how to control up aly sometimes. even when you think you have all the precautions and measurements in place to watch. and -- you know, that's -- scary and troubling. it is not what the markets needed at this time, unfortunately. >> extraordinary story. >> we have time to get to your picks in the market here. how do you get investors to feel more confident about the market for people that -- get some of that money on the sidelines and get back in when you have incidents like knight, facebook, everything else? >> there's no doubt about that we see -- the very high likelihood of global regulation, probably next year especially as we come out of

warren myers, what takes us out of the doldrums in this market? do we just have to wait it out until labor day? >> how about going on vacation and coming back early september? unfortunately it seems that way. there's not much of a drive. we have the flmc meetings tomorrow and wednesday. the announcement comes out. i don't expect to hear anything new there. you've got jackson hole at the end of the month. everyone's going to anticipate hopefully getting a glimmer of hope from bernanke. i don't think you'll get it there. you go into the middle of september and wait till

myers vice president of floor operations here at dme securities and warren, what is going on here? >> well, a couple of things and upward movement here out of europe and the europe movement got strong and that led to a nice base for the opening here and the nonfarm payroll numbers on the upper side than what people were expecting that pushed it forward. >> and let's be clear, a complete reversal of what draghi said yesterday, because yesterday a lot of overly n negative nonsense and today a broad-based rally and the short te term yields are coming down and people are realizing something is happening. >> well, people are realizing that draghi believes he can do but the timing is not going to happen today or tomorrow, and that is why you have seen the fluctuati fluctuation, and now people realize there is a reality behind it. >> is this a bottom in the market? come on. >> i don't think so. >> why? >> i think that there's too much overhang. just in this country alone and the fiscal cliff coming up and the elections and it is very difficult to call a bottom right here. >> and oa three-