>>> GUESS WHO'S HERE? TOM LEE, FUND STRAT GLOBAL ADVISORS COFOUNDER AND A CNBC CONTRIBUTOR. I WAS THINKING, WHO WOULD I LIKE TO TALK TO? AND HERE YOU ARE. THERE ARE SOME REASONS THAT YOU THINK MAYBE WE'RE NEARING THE END OF WHATEVER YOU WANT TO CALL THIS, THIS TOUGH PERIOD FOR THE PAST TWO WEEKS >> YEAH. IT'S BEEN A PAINFUL TWO WEEKS WITH. I THINK SOME OF THE WAYS TO THINK ABOUT WHY WE'RE NEAR AN END IS INFLATION EXPECTATIONS HAVE WAY OVERSHOT TO THE UPSIDE. ONE-YEAR FORWARD INFLATION IS AT 4.5%. IT'S WHERE IT WAS IN OCTOBER 2022, MARCH '23, OCTOBER '23, SO AT THE PEAK PESSIMISM. >> THAT'S ONE THING. >> YEAH. SHORT INTEREST HAS SOARED. LIKE, ONE WEEK, GOLDMAN SHOWS ONE-WEEK SHORT INTEREST IN ETFs ROSE BY THE MOST SINCE 2022. MEDIAN SHORT INTEREST IN STOCKS IS AT BASICALLY A THREE-YEAR HIGH. WE'RE RARELY OVERSOLD. IF YOU LOOK AT INTERNAL MEASURES LIKE THE PERCENTAGE OF STOCKS OVER THEIR 20-DAY MOVING AVERAGE, IT'S DOWN TO 8%. AGAIN, A TURNING POINT. AND NOW, WE JUST NEED A POSITIVE CATALYST. I THINK AS LONG AS INFLATION TRACKS BETTER THAN EXPECTED, I THINK WE'RE IN A GOOD POSITION TO RALLY. >> YOU LOOK AT DIFFERENT THINGS THAN KATIE STOCKTON. SHE SAID, THERE HAS BEEN SOME DAMAGE, AND THEREFORE SHE THINKS MAYBE THERE'S MORE WORK, MAYBE NOT A LOT, BUT MAYBE SOME MORE. HAS THERE BEEN SOME DAMAGE, OR DO YOU SEE ALL POSITIVE INDICATED AS FAR AS WE'RE GETTING CLOSE TO THE END OF THE -- BEGINNING OF THE END? END OF THE BEGINNING? >> I THINK PROBABILITY IS PROBABLY WHAT SHE'S LOOKING AT, AND I THINK THERE HAS BEEN A LOT OF DAMAGE TO THE MARKETS, BUT THERE ARE WAYS TO LOOK AT WHY THINGS COULD BE TURNING. MARK NEWTON, OUR HEAD OF TECHNICAL STRATEGY, SAYS THE CYCLE TURN DATE HE WAS LOOKING FOR IS APRIL 20th, AND THAT'S -- >> 4/20. >> YEAH. >> PERFECT. >> IF YOU LOOK AT THINGS LIKE THE DEMARK COUNT, WE'RE AT ALMOST A 7, SO WE'RE ONLY ONE OR TWO DAYS FROM A POTENTIAL BOTTOM. >> AND WE GOT OVERSOLD REALLY QUICKLY. I DON'T KNOW WHY. >> THEY SAY BULL MARKETS RISE IN AN ESCALATOR, FALL IN AN ELEVATOR. IT'S WHAT YOU WOULD EXPECT IN A RISING TREND IS SHARP CORRECTIONS, AND IT SHAKES PEOPLE OUT, AND I THINK THERE'S A LOT OF TOP CALLERS, BUT TO ME, I THINK THIS IS A GOOD OPPORTUNITY. >> SO, ALSO, THE DAY BEFORE 4/20 -- DID YOU KNOW 4/20/24 IS FRONTWARDS AND BACKWARDS? >> IT'S A PALINDROME? >> CERTAINLY IS. BUT THE DAY BEFORE WAS THE HALVING. WHAT DOES THAT MEAN FOR YOUR BITCOIN PROJECTION? >> IT'S A REMINDER OF THE SOUND MONEY OF BITCOIN, RIGHT? IT'S PREPROGRAMMED EVERY 210,000 BLOCKS TO CUT THE BLOCK AWARD. WE KNOW IT MEANS YOU'RE CUTTING SUPPLY, BUT DEMAND HAS BEEN STRONG, AND ACTUALLY, BITCOIN NETWORK USAGE HAS REALLY BEEN STRONG BECAUSE OF THINGS LIKE PROTOCOL, SO YOU'VE MADE THE DEMAND SIDE STRONGER AND THE SUPPLY SIDE SMALLER, SO I THINK IT'S UPWARD PRESSURE ON PRICE. >> SO, YOU ALWAYS HAVE CRAZY FORECASTS. WHAT'S YOUR FORECAST NOW? I'M DOING SOMETHING WHILE YOU'RE DOING THIS. >> I THINK BITCOIN DEFINITELY MAKES NEW ALL-TIME HIGHS THIS YEAR, SO I THINK SOMETHING LIKE $150,000 IS PROBABLE THIS YEAR. AND THEN, LONGER TERM, I DON'T THINK THERE'S ANYTHING WRONG WITH THOSE TARGETS PEOPLE HAVE OF, LIKE, HALF A MILLION FOR BITCOIN OR MUCH HIGHER. >> I WAS OPENING THIS FOR ANDREW, BECAUSE FIRST THING I READ THIS MORNING WAS THE DIRTY MONEY. BILLIONS. AND I KEPT LOOKING FOR THE B-WORD, AND IT'S -- JESUS, IT'S JUST NOT ANYWHERE HERE. NOT ONE THING ABOUT BITCOIN BEING USED FOR THE MONEY LAUNDERING. SO, IT CAN BE DONE WITHOUT BITCOIN, I GUESS? >> YES. I THINK THAT MONEY LAUNDERERS -- >> SINCE THE BEGINNING OF TIME. WE ALWAYS POINT THAT OUT, RIGHT? >> AND COMMODITIES, COLLECTIBLES. >> RANSOMWARE IS ALWAYS BITCOIN, AND THAT'S THE NASTIEST KIND OF EXTORTION, SO THERE CAN BE SOME USES, BUT YOU CAN USE CASH, RIGHT?
