So, in continuation to our session and theory of production and cost, we are going to cover a few more concepts today in today's session. So, if you remember in the last couple of session, we are just discussing about the different type of production analysis. We started with short run production analysis and we discussed through the law of diminishing return and then again we started the return to scale that is the long run analysis of production. And there we check that how the scale differ with respect to change in the input and proportionately the change in the output. Then we discussed the case of producer equilibrium or so called the least cost input combination with the help of the two concepts that is isoquant and isocost and through which how they reach the or how the firms or how the producer they reach the equilibrium. Then we discussed about the expansion path and economic region of production which talks about basically which one is the feasible region where the two inputs can be substituted one to another and that is the efficient region because by in by producing or by using less of input the producer is producing the desirable output. So, in today's session we will see what are the different kind of production function mainly and mainly we talk about the cup Douglas production function which is used more in economic analysis. Then again we will continue our discussion optimal input combination through a graphical representation how the graphical representation in case of a maximization of output and minimization of cost. And again we will see that when there is a change in the input price whether it is the input price of the capital or input price of the labor how it changes. Then we will talk about numerical examples related to the law of diminishing return and return to scale. How generally this the firm uses this law of diminishing returns or return to scale empirically whether it is really works that marginal product gets decreases and then it reaches the negative and whether there is a evidence of increasing decreasing and constant return to scale. To start this today's discussion we will see that all the production function they are based on the assumption it is not that we can just formulate a production function just taking a functional form which talks about the relationship between the input and output rather the production function they in order to formulate a production function we need to assume certain thing. And what are the general assumption over here there is perfect divisibility of both inputs and outputs. So inputs are divisible and output also divisible two factor of production generally we use you do not use more than two factors like if you look at there are number of factor of production like labor, capital, time, raw materials, technology and entrepreneurship. But for all these analysis whether it is short run whether it is long run we generally use only capital and labor as the input not any other inputs in the production process. Then we are assuming that both the factor inputs that is labor and capital they are substitute to each other but they are in a limiting sense there is no unlimited substitution or they are not close they are not perfectly substitute to each other. Like if you remember the if it is perfectly substitute then the output can be produced either with the help of capital or with the help of labor. But in this case we are assuming that certain amount of both the inputs are necessary in the production process the production cannot be run only on the basis of the input or only on the basis of the capital. Then technology is given technology cannot change maybe at least in the short run in the long run it can be changed and also we assume that there is a inelastic supply of fixed factor in the short run and that is the reason short run there are few factors those are considered as fixed. And in specific sense when we are taking the case of two inputs here generally capital is fixed and there is inelastic supply and whenever there is a increase in the output or whenever there is a need to increase the production output generally the labor gets changed in order to increase the output because there is a inelastic supply of fixed factor in the short run. So, in that context when we in the economics literature there are two main type of production function are used one cup dog less production function and second one is the cost and elasticity of substitution production function that is CES production function. We mainly use typically in economics literature either cup dog less production function or cost and elasticity of substitution popularly known as CES production function. Today, we will focus more on the cup dog less production function because this is mostly used in case of the economic analysis. Cup dog less production function takes the form of Q that is output which is a which is a k to the power a and l to the power b where a and b they are the positive fraction and k and l is the k is the capital and l is the level over here. So, Q is the a k to the power a and alternately we can take this as l is to the power 1 minus a because a plus b has to be equal to 1. So, if a plus b is equal to 1 then alternately we can formulate this production function as Q is equal to capital a k to the power a and l to the power 1 minus a. Now, what are the properties of cup dog less production function? Firstly, the multiplicative form of power function can be transformed into a log linear form like log Q is equal to log a plus small a log k and b log b. So, in logarithmic form the function becomes simple to handle and can be empirical estimated using linear regression technique. So, the first property is cup dog less production function can be transformed into a log linear form and why it is generally what is the benefit if it is getting transferred into a log linear form. It becomes simple to handle and when we are doing a empirical analysis using the cup dog less production function then this is easy to handle and using linear regression technique we can empirically estimate the cup dog less production function. Then secondly the second property of cup dog less production function is that power function are homogeneous and the degree of homogeneity is given by the sum of exponent a plus b as in the cup dog less function. So, if a plus b is equal to 1 the production function is homogeneous degree 1 and implies a constant return to scale. So, the power function are homogeneous and the degree of homogeneity is given by the sum of exponents of a and b as in the cup dog less function. So, if a plus b is equal to 1 then this the production function is homogeneous of degree 1 and implies constant return to scale. If a plus b is greater than 1, then it implies a increasing return to scale and if a plus b is less than 1, again it is implies a decreasing return to scale. So, depends upon the value of the exponent in the Cub Douglas production function that is for a and b, that determines that what kind of production function it is and what kind of scale it is bearing on. Thirdly, the a and b represent the elasticity coefficient of output for input k and l respectively. So, the output elasticity coefficient e in respect to capital can be defined as the proportional change in the output as a result of given change in k keeping l constant. So, if you are keeping l constant and if you are trying to find out what is the elasticity coefficient of output for input with respect to capital only, then this is del Q by Q that is the change in the output with respect to change in the capital. So, del k by k and if you simplify this, then this is del Q by del k multiplied by k by Q. So, this is nothing but the elasticity coefficient with respect to input k keeping l as the constant. So, partial elasticity of this production function which is a dependent on capital and labour keeping l as the fixed, the elasticity coefficient with respect to capital is del Q by del k multiplied by k by Q. So, taking the specific production function that is Q is equal to a k to the power a l to the power b with respect to k and substituting the result into the equation, the elasticity of coefficient e k can be derived as del Q by del k that is a then capital a k to the power a minus 1 and l b. So, substituting the value of Q and del Q by del k in the equation elasticity of coefficient with respect to capital says that a a k by a minus 1 l b and in a imported bracket we have k divided by a k l by b and when we simplify this we get it equal to a. So, elasticity coefficient with respect to capital keeping labour as constant the value is equal to a. Similarly, when we find out for the b the same procedure we can follow and we can find out the output coefficient with respect to labour capital as constant and the value of output coefficient with respect to labour is coming out to be b. So, elasticity coefficient of capital elasticity coefficient for capital keeping labour as constant it is a the same procedure can be applied to find out the elasticity coefficient with respect to labour and the elasticity coefficient of output for labour is coming to the l and the value of it will come as the b. So, properties of cup double less production function in continuation of this we have the fourth property and here the constant a and b represent the relative distributive share of input k and l in the total output q. So, fourth property talk about the constant a and b and what it represent. So, basically constant a and b associated with input capital and labour represent the relative distributive share of input k and l in the total output q. So, the share of k in q is given by del q by del k multiplied by k and similarly the share of l in q is del q by del l multiplied by l. So, del q by del k multiplied by k is the share of k in q and share of l in q is the del q by del l multiplied by l. So, the if you look at this del q by del k multiplied by k the first part is talks about the change in the q with respect to change in the k multiplied by the the actual amount of k and the share of l in q is the del q by del l that is the that is the change in the output with respect to labour and multiplied by l. So, fourth property is talks about the constant of a b associated with labour and capital and they generally represent the relative distributive share of input k and l in the total output. So, in continuation with the fourth property the relative share of k in q can be obtained as del q by del k multiplied by k multiplied by 1 by q which comes to a and the relative share of l in q can be obtained as del q by del l multiplied by l 1 by q that comes to b. Finally, the cop dog less production function its general form that is q is equal to k to the power a l to the power 1 minus a implies that at 0 cost there will be 0 production because the value of intercept is or the value of constant is missing here. So, if in the general form if it is q is equal to k to the power a and l to the power 1 minus a it implies that at 0 cost there will be 0 production because the capital a value is missing over here.   So, considering this as a considering this as a cop dog less production function accordingly the value of the average product for labour average product for capital marginal product for labour and marginal product of capital will change. Similarly, when we are finding out the marginal rate of technical substitution of l for k then taking that specifically the cop dog less production function. So, as we know this marginal rate of technical substitution is the slope of the isoquant and how the slope of the isoquant can be represent this is the ratio of the marginal product of both the inputs. So, in this case the ratio of the marginal product of capital and labour. So, this is when we are finding out marginal rate of technical substitution specifically for the cop dog less production function then marginal rate of technical substitution of l for k is m p l by m p k that is a by 1 minus a k by l. Here we have to note that the marginal rate of technical substitution l by k is the rate at which marginal unit of labour l can be substituted for marginal unit of capital K along a given isoquant without affecting the total output. So, it is like rate of substitution between two inputs without and the even if the input level is changing or the amount of input getting used as from labour and capital is changing still it has to be in the same isoquant. So, the level of output is not changing. Similarly, if you take a C S production function or any other form of production function we can in the similar way we can derive the basic concept using the production analysis like average product marginal product and the marginal rate of technical substitution both for l for k and k for l. Now, if you remember in the last class we talk about the least cost input combination and least cost input combination is one where the slope of the isocost is equal to the slope of the isoquant and this is the point at which the producer or the firm maximizes the output looking at the given constant. So, today we are going to spend may be another spend in detail that how the equilibrium conditions are derived, how we can say that the slope of isocost has to be equal to the slope of isoquant. We will see then we look at the graphical representation and then we will come to the point where the input prices changes and how it generally affects the least cost input combination and how the effects are being captured. So, we will first see that how the equilibrium conditions are derived or may be how the precondition for the least cost inputs are derived and then we will look at into the graphical representation both for the maximization case and for the minimization case. So, let us look at into the equilibrium condition, how the equilibrium conditions are derived. So, if this is the production function that is where x is the function of labor and capital, in this case how we can find out what is the equilibrium condition. Now, here there is a constant that is subject to C bar that is W L plus R K. So, if you remember this is your isocost. Now, this if you can change this constant into this then this is C bar minus W L minus R K which has to be equal to 0. Now, we will whenever we need to maximize something minimize something with respect to a constant in this case we need to use a Lagrangian multiplier. Generally known this as a Lagrangian multiplier method and here what is the Lagrangian multiplier? The Lagrangian multiplier here is x C bar minus W L R K which is equal to 0. Now, what is this Lagrangian multiplier? Generally this is the undefined constant or undefined constant which generally used to maximize or minimize a function because if there is a constant associated with this if there is a constant associated with this we cannot directly maximize the production function and that is the reason we need to take the help of the Lagrangian multiplier method and these are the and the Lagrangian multiplier is the undefined constant which generally used to maximize or minimize a function. So, once we get the Lagrangian multiplier method then we will get the composite function. Composite function is x plus lambda C bar minus W L minus R K which has to be equal to 0. So, this is the composite function using the Lagrangian multiplier method. Now, what is the next job? Next job we need to maximize it and we will see what should be the first order condition and what should be the second order condition in order to maximize or in order to minimize. So, given this as the composite function what should be the first order condition? If you remember all the first order condition if it is maximization or maybe it is a minimization the partial derivative has to be equal to 0. So, here we will take the partial derivative with respect to the undefined constant and we will set them equal to 0 in order to find out the first order condition. So, del Q by del L which is equal to has to be equal to 0 del Q by del K which has to be equal to 0 and del Q by del lambda which has equal to be 0. So, this implies del x by del L plus lambda minus W equal to 0 then this implies del x by del K plus lambda minus R is equal to 0 and this implies C minus W L minus R K which has to be equal to 0. So, from equation first to if you solve for lambda then this comes to del x by del L is equal to del W or then this equal to del x by del L by W and this leads to lambda is equal to this is our marginal product for labor by W. Similarly, from equation two if you find solve for the value of lambda then this is del x by del K is lambda R or x is equal to del x by del K by R and this is since this is m p K by R. After solving for both this lambda from then this comes to m p K by R which is equal to m p L by W leads to m p L by m p K equal to W by R. This is the first order condition for the least input combination because this represents the slope of isochron this represents the slope of isochrist. Since the cost and is given in the form of isochrist and the output is given in this case we can say that the first order condition has to be the point at which the slope of the isochrist has to be equal to the slope of the isochron. So, the ratio of marginal product of labor and capital gives us the slope of the isochron and the ratio of input prices that is W and R that gives us the slope of the slope of the isochrist. So, first order condition for least cost input combination says that at the point of equilibrium or at the point of least cost input combination the slope of the isochrist has to be equal to the slope of the isochron. Next we will see what should be the secondary condition for this maxima or minima with respect to the least input combination. This requires the marginal product curve for both the factors has to be negative. So, del square x del L square and del square x del K square. So, this is what this in order to find out the slope we need to the take the second order derivative with respect to labor and second order derivative with respect to capital. So, this has to be 0 that is del square x by del L square has to be less than 0 and del square x and del K square has to be less than 0. So, second order condition for the least input combination requires the marginal product for both the factors that is capital and labor the marginal product curve for both the factor has to be negative and how we will find out the marginal product curve for both the factor has to be negative. We need to take the second derivative of the with respect to capital and with respect to labor of the composite function and that gives us del square x by del L square for the second derivative for the labor del square x by del K square the second order derivative for the capital. Second order condition says that it has to be negative and that is the reason the second order derivative that del square x del L square has to be less than 0 del square x del K square has to be less than 0. Next we will see how graphically we look at both the input and the maximization case and the minimization case in case of the least cost input. So, what is the essential difference between the maximization and minimization case? In case of maximization case the cost is given and if taking cost is the constant the isocost line is the constant the producer has to maximize the output whereas, in case of minimization case the output is fixed and looking at the fixed output what is the challenge for the producer or the challenge for the firm is to minimize the cost. So, let us look at the maximization case first. So, maximize with maximization of x which is a function of labor and capital with respect to the input prices that is W and R. So, if you look at there are two graphs graph one is where there are three isoquant and the isocost is given and graph two is where the isoquant is there in a different shape and there are two isocost line. So, in case of maximization case what happens this isocost is given and with this isocost the challenge of the producer is to get the maximum level of output and looking at this the consumer will always pick up a combination in Q 2 level of output because the Q 2 level of output can be achieved with the isocost K and L which is given. But in case of second case if you look at the isoquant is taking a shape of concave and which is not possible because in case of concave it is not following the basic rule of the production analysis like if you look at basic rule of a isoquant because even if with the same isoquant they are able to achieve the combination it is not giving the same level of same level of output across all these stages or may be the input combination are different because there when they are moving from one point to another point they are using more of the inputs of both, but they are producing the same level of output which is not the cost efficient or which is not the input efficient. That is the reason in case of maximization case the output level is can be achieved with the the maximum output level can be achieved with the isocost line given or in term of the cost is given. Next we will see the minimization case where the output is given the challenge for the producer is to minimize the cost of production or minimize the input prices with respect to the given level of output. So, these are all isocost these are the point which talk about the cost of production if you are taking any of this combination of input prices and looking at this if you look at if the x bar is the output level that is given then in this case the producer will always look for this that to produce this level of output which one and can be the minimum cost. So, in this case to achieve this level of output k 3 l 3 is the minimum isocost or the minimum cost of production that is the reason they will choose this point as the least cost input combination because to produce the given level of output this is the minimum possible cost. So, in case of minimization case the challenge of the producer the challenge of the firm is to minimize or they will always look for the combination which gives us the least cost to the producer least cost to the firm for a given level of output.


The following is a presentation of TFNN Trade what you see With Larry Pezzavento Toll free at 1-877-927-6648 or internationally at<PHONE_NUMBER> Now Larry Pezzavento Okay, looking good Billy Ray feeling good Lewis We're going to show a picture of the program that I'm gonna be on Wednesday October the 9th for stock charts The TV program that they have if you're interested you can check in if you listen to our program It's gonna be a repeat. I'm just gonna be talking about The big patterns that I see in the stock market in gold same stuff that I usually do here So but anyway, that's what's gonna be going on there. Frankly folks I wish I could talk about baseball all this hour because there's so many memories that we have as a As a family my daughter turn my youngest daughter turned 50 over the weekend and When I called her to wish her a happy birthday Dear Sarah oh Dear hold on a second here. I have to do that afterwards. Let me oh I really need to answer that phone, but I guess I'm not going to let's Anyway, I talked to my daughter and she was reminding us about how much fun we had as a family With the Dodgers traveling with them and we didn't travel with the team. We traveled, you know to the same cities and stuff It was really really something I Don't think so mark, but you never know you just never know Anyway, that's neither here nor there But we just had so much fun when Tommy John came to pitch for the Dodgers after he left the White Sox We had gone to Kameshki Park a lot of times to watch him play and we were we were very close to that to the John family This is his daughter was older His his oldest his oldest sister Marilyn was older She was a singer and his father worked for the telephone company and his mother was a housewife And she was a good friends of my mom and my mom taught her how to make pasta because they loved eating at my grandmother's restaurant So she taught him how to do that and from that we became friends over the years and he never changed any at all I mean he's just been pretty nice guy. He's he's three years younger than me Well, two and a half years younger than me, but he sure helped us when we were at the years at Drexel And the reason I'm bringing this all up. It was a story behind this believe it or not. I'm sitting here Friday in about 10 o'clock in the morning and I get a call and on my automatic thing that it tells who's calling it says Gibson Dunn Well, I knew what that was that was Gibson Dunn and crutcher that's the largest law firm the most prestigious law firm in the Western United States and I saw the number and I used to do I did about 10 or 15 Expert witness programs with them and I always did a good job So I thought maybe you want me to do that and I think I was out of their program after so many years But so I called back and I got to the secretary and says we have a We want someone wanted to speak one of the one of the managing partners I mean, this is one of the big guys that has you know 100 partners under him Wanted to speak to you and I said sure so I didn't know who it was So I get this on and he comes on and he says you don't remember me He said but I was 10 years old and my dad worked at Drexel Burnham Lambert And you got me to see the Dodgers and I went into the dugout and we saw Tommy La Sorda And all the guys and he said I just wanted to tell you how much that is and he says my dad is turning 95 And I would like for you to come over and celebrate his 95th birthday And I said wow, that's pretty good. I said I haven't talked to your dad in about 10 years He said well, he still talks about you and he still sits there and he counts his cougarans that he has From 1976 and 77 that he paid $250 for Anyway, it was nice. But this kid is now a managing director at Drexel at Gibson Dunn and Crutcher Let me tell you folks that is one prestigious firm. That's where Ronald Reagan had his account and Anyway, it's it was fun to remember some of these things. So that's a good part of this. All right, let's I want to go back to Hold on just a minute. I want to show one picture here because my daughter sent me this Because it was something that um, it was indigenous to the area where we live there in San Luis Obispo and Avila beach this these six a series of pictures with the pictures from the 19 34 35 depression folks. These are the most famous of all the ones in the encyclopedia for pictures for that era There's about a series about 12 of them. This is the woman and her children and stuff And uh, you know, that was basically You know what it was all about and we were we're talking about that area because those pictures were taking In this little town called Napomo, which is right near San Luis Obispo, which has the greatest steakhouse in the whole world period not not negotiable And uh, it was uh, we we talked about those days and also the baseball days and stuff It was we had so many great memories. I mean, oh my gosh Anyway, let's talk about the markets just a little bit What i'm going to be doing on the show for stock charts. I'm just going to be showing you I'm going to be doing this chart right here. This is one of the main ones I'll be doing and I'll be talking. Yeah. Well, this is a picture of history Maria, that's why there's a whole series of them.   I'm going to go back and show the folks You know, what happened in a year that people don't remember anymore Which was the dot-com bubble and there you'll see uh 2000 There was the dot-com bubble And uh, you know the market dropped to over 80% uh during that particular one whether that means these are just patterns, you know Sometimes they work, you know, sometimes they don't but uh when they do where I've got the other one in here Where is the other one shut the front? Oh, here's the o7. Let's get the o7 one up a little bit here Here's when Bernanke if you remember Bernanke came out in october and said all systems were gold All the lights were green for the economy If you don't believe it just go in and google it yourself and see what he was saying at that particular time So that was helicopter bin. Anyway, I'm going to go over those three charts and take a look at those and see what there's going on There's one there's one stock folks that we will follow here, but don't trade it It's it's in pretty pretty serious trouble right now And we've been talking about it here and that is the old bitcoin Let's get this up here so you can take a quick look at it You'll see here that we have broken down and we're still breaking down from what I understand That it's uh moving a little lower. That's not really a good picture For the the cryptocurrencies that doesn't affect I don't believe it affects the What do you call it the uh shut the front door the uh Blockchain stuff. I just think it affects the other thing. So let's uh, let's try to remember that doesn't mean a whole lot Now I I focused a lot of what we looked at last week, you know, we had that tremendous short covering rally Either one or two things was going to happen It was completing a big a bcd pattern up there or we were getting ready to You know break out into new high grounds now yesterday or friday with all that movement that we had There was a drop in open interest in the s&p and several the others I think the only index that was the small one which was the dow Jones I think it had about a break even Open interest all the other open interest for the nasdaq especially the the s&p Had a substantial drop in open interest. So that was short covering now That doesn't mean the new new shorts could be hammered again today But you just have to you know give it a little bit of space. We'll take it. We'll take a break here folks I'll try to stop mumbling and get on to the program eight seven seven nine two seven six six four eight If you're not currently using the taz profile scanner when looking at setting up your trading opportunities Then your arsenal is short a mighty weapon the taz profile scanner is a standalone piece of software that instantly filters over 2500 global financial markets such as stocks etfs commodity futures and forex headed by steve doll Taz understands that in today's technological world The use of top flight software applications and technical analysis expertise is essential to successful trading in today's market You also gain access to the webinar that steve doll and tom o'brian just hosted the best way to use the taz profile scanner to profit This webinar archive is available for all subscribers immediately upon signing up all new subscriptions Also come with a 30 day money back guarantee. So you have nothing to risk Start your subscription by visiting the front page of tfnn.com today And you'll find the taz profile scanner under the services tab sign up today Are you in the market for buying or selling real estate in the bay area including the surrounding st Petersburg Tampa and clearwater markets tiger real estate LLC is a firm that has extensive experience in the Tampa Bay area Whether you're looking to sell your current property for maximum value Or you're in the market for a second home or investment property Tiger realty has the experience across all areas of real estate in the Tampa Bay area to help buyers and sellers Make the most informed decisions across all price levels from the price You should be paying per square foot in certain up and coming areas to the type of cash flow investment properties are capable of creating Tiger real estate can help you make the best decision when it comes to all areas of the market Before you make one of the biggest decisions of your financial future call tiger real estate LLC today at 727 329 83 22 or email us at tiger at tfnn.com. That's 727 329 83 22 call us today Many of our new listeners have heard about the tiger's den The tiger's den is a lively community where professional traders and investors can meet exchange ideas and information in a comfortable moderated atmosphere Hear all of the tfnn shows plus see all the charts as they happen live and have access to archives of all of those charts You can test drive the tiger's den absolutely free for 30 days and greatly enrich your knowledge of these markets And how to make your money work for you details on the tiger's den or on the front page of tfnn.com Tfnn has launched our brand new website You can still visit us at the same tfnn.com URL But when you do you'll see a new and improved homepage with a much simpler navigation Whether you're watching tiger tv live in high definition or just accessing your newsletter subscriptions We even have new pricing in six months and yearly options Check out the new tfnn.com now and experience all the upgrades tfnn.com educating investors Call now toll free at 1-877-927-6648 internationally at<PHONE_NUMBER> Caller from the home of wdgan west palm beach florida jiff. Are you there? I am larry. How are you? I'm still above ground staying away from open graves my friend. What can I do for you? Oh my goodness.  I love your stories and I know you I I think I heard you way back when talk about dr. Alan andrews and maybe roger batson Yes, uh-huh. She did.  I no oscillators or anything like that You know, al is a heck of a lot more sophisticated With his fractals and things like that than I am because I try to keep it as Just as simple as possible And and you know, while they're you make it as simple for me I mean, I'm I can understand what you're talking about.  You're really giving back Um, and I do appreciate it and I think all the listeners do too Well, that's really nice now. We don't don't forget. I said, I wouldn't send you the $20 till after the show was over So make sure you give me your address, okay? You know what they said you promised 50, but that's okay. Don't worry.  Can you look at, um, uh, october's crude? I'm uh, I'm long And um, I hope you're not long from 63 Um I'm long, um I'm looking for a nice move up to like 55 56 Oh, I think you could get that easily. I posted the chart for crude oil in here, jeff and we've got a beautiful Okay, beautiful triple bottom in there. Uh, it hit the 61 percent retracement, which was at 50 125 we got down to 50 95 one two three four times And now it's uh, it looks like it's on its way It started a little bit earlier lower last night on sunday and now it started to move a little bit higher But I think 55, uh, that could easily be made. That's just a 382 retracement So, uh, the one thing you want to watch is if it pops and you get a quick move to 55 That means it's going to go a lot higher, but if it takes two or three days to get there It's in big trouble. So, uh, that 55 Is a good, uh, a good spot to look at and below 51 you don't want to have anything to do with it No, I I yeah, I I think I I'm pretty I'm pretty tight on my uh Yeah, they they taught me well tim morgan the guys taught me well from cme and the uh those boys Good, I don't know if you remember tim Yes, sure I do. Yes a very famous person. You bet it's good Hey, she's still alive or what I haven't seen him down in miami forever at the golf course Well that I don't know I'm pretty sure he is though the last I heard that he was and I would have heard If he passed away because you know, I know who he is and stuff So he hasn't done I got a list of all the people that are dying I got more bigger list of dying than the ones are alive Oh, you're too funny Larry. Hey keep it up and god bless. God bless. Thank you very much Jeff And thank you for the kind words that makes my day. It really does. I really really appreciate it You're very welcome. Have a great one. Okay, you bet. Let's take a quick look here We had mike from up in candidate It wants us to take a look at the natural gas and if anybody's qualified to talk about natural gas It has to be me. Let's take a look at this. You'll see we had that big move up to the 270 area We had to move down We really thought it was going to hold at 32 level and it did for about three days And then boom down it came and went down to the 70 707 area We're down a little bit today, but that's a normal. We've had a two good two good days up So it should have really good support at 222 and even better support at 216 216 I would really be interested and look at this look at this very closely folks Look at 216 if you go over to the far left into june You'll see that the low in june on june the 20th was 216 if you get you get it down here in october At 216 you're going to have a perfect head and shoulders pattern at that point now What you'd like to see is you'd like to see two other little patterns on the daily or hourly chart You know also verifying that 216 is a really really important spot because then You have several factors that tell you that should be Really great support and if it goes below 213, you know, you're wrong So you can trade the natural gas contract It is the equivalent the old pork bellies because it moves so much without risking too much So the main thing is to watch how we're going to hold these lows Is natural gas still down on the day today? I it has a little bit of a bullish bias, but I saw that it was down earlier So I just assumed that it was probably going to be Moving a little bit lower, but we haven't I haven't checked it yet or not But that's what I'd be watching in the natural gas. I hope that helps Mike And I think that it's got a chance in here But the real key the real key level here is this past low that we made if we take that out We'll be looking at 216 and it like I mentioned that will be the head and shoulders pattern from the June low And that also would be something that would be You know very very important So we want to watch that as we go through another one that looks, you know, it looks real interesting here That deserves our attention is the soybean contract and let me get this up here Just to show you this because we've had a 230. Yeah, it's holding you see it's down quite a bit That's uh, that's down about six or seven cents from um that high we made so it needs to hold that Let's take a look here. You'll see the this is in November soybeans You'll notice that we're up in this area around 229 22 That's the 78 retracement That's that long term downtrend line That you can see from march through there and if you did all the work on that You'll see that we're pretty close to a 135 pattern if we can get the November beans above 925 Then you'll be looking at something that could be Could be moving pretty good. Yes. I see that it's down quite a bit here, but That was if you if you know if you did the short term work on the natural gas You'll see that when it made that high on friday It was a beautiful ABCD pattern on the hourly chart, you know measuring up to that point Someone's asked me the question, you know, how do I switch back and forth to these charts and Folks really when I when I start looking at the work that I do I start with the daily I quickly look at that and then I go down to a four hour chart Because on the four hour chart i'm able i'm able to see six weeks But i'm able to see the other small periods periods the other small patterns that are there And then from that I move down to the hourly And I you know see if they're still coming in with the numbers that i'm looking at and then I move down to a 15 minute And of course, I don't go any anything lower than the 15 minute very often But that tells me, you know the areas that i'm looking at You know for a spot to either be a buyer or seller So those are the the main things that i'm you know sort of keeping an eye on as I as I look at some of these Things here in the morning. So the one thing folks is the gold market Is still in a negative zone. I believe we've had one heck of a rally And let's just get the gold up here to take a quick look at it. We've got oh we've got the break coming up here No guests today Hopefully we'll have tim bossed on tomorrow and we've got the wizard himself will be coming on On wednesday, I believe I think we have no, I think he's on the 10th. I think norm winsky will be with us He'll will be with us on the 10th. So we'll be able to We'll be able to look at that. So anyway, let's uh, let's uh Talk about gold when we get back from the break. Okay, folks eight seven seven nine two seven six six four eight Larry pezzavento has just started his brand new service 24 seven and he's already delivering content to his subscribers on a daily basis when the market's opened and even on weekends Each monday, you'll receive larry's written report that provides detailed commentary and a summary on the charts and videos that larry sends out And throughout the week when warranted larry will send out via charts or videos or both The key markets that he is watching during the day This will be up to the date active trading information that will help you in your daily trading in larry's first week alone He sent out 25 charts six videos and a full report to his subscribers in just one week If you're a technical trader that uses patterns and retracements to trade then larry's service fibonacci 24 7 is something that you must try right now new subscribers can get a full 30 day money back guarantee With nothing to risk sign up now to larry pezzavento's fibonacci 24 7 by visiting the front page of tfnn.com under trading newsletters The path of least resistance is david white's daily trading newsletter And if you're looking for active trading ideas then now's a perfect time for a 30 day free trial to this powerful daily trading advisory service David uses his years of trading experience to offer his subscribers his trading ideas each morning in his path of least resistance newsletter using a combination of equity trades along with options David keeps his subscribers up to date with all pertinent market information with intraday afternoon updates when warranted Don't miss out on this great chance to get a 30 day free trial to david's daily newsletter The path of least resistance with no obligation to pay anything david has been delivering solid recommendations for his subscribers Recently and if you'd like to see the type of newsletter he delivers every morning Then visit the front page of tfnn and you'll find the path of least resistance under trading newsletters For all the details and to start your 30 day free trial today log on to tfnn.com now tfnn is excited about our new software charting program the art of timing the trade charts In collaboration with tom o'brien and using his best-selling book the art of timing the trade your ultimate trading mastery system david white has programmed an outstanding piece of software that will complement any trader's methodology Using this first of its kind program the art of timing the trade charts allows you to scan thousands of stocks for Fibonacci formation setups including guardleaf abc's butterflies and much more the art of timing the trade Charts is designed to help you when scouring the markets for stocks Just beginning to form the trading patterns that many investors spend days weeks or even months searching to find and right Now we're offering licenses available at only $79 a month We are so confident that you're going to love this new charting software that will even give you a 30 day Unconditional money back guarantee don't miss out on this incredible new piece of software Get your copy of the art of timing the trade charts today by visiting tfnn.com This segment is brought to you by think or swim for more information Just click the think or swim banner on the front page of tfnn.com We're back folks and we're going to talk a little bit about the gold market and I posted the gold chart long-term weekly And I also posted the silver chart silvers acting weaker As you can still we have those abcd patterns still outstanding at 1660 Uh, I believe we might have a chance to get there I'm not sure but we'll have to wait and see if we take a look here at the At the gold market. Let me get this up here. Here's a perfect example of me looking at a four hour chart Let's just get this up and we'll take take a look at we had the big abcd Went exactly to the number 1465 the low was 1465 60 we were looking for 1470 Came within, you know, the actual Perfect number actually and then we had a nice rally. We went from 65 all the way up To 25 of course being 61 dollars The harmonic number in the gold is 32 two times 32 is 64 So it's very close. Now what we're doing is we're setting right over the 382 retracement at 1518 right now below that we made Back here. Uh, just the other day was Let's just make sure I get this correct in here so we can see it Was uh, oh, wow, we made a slightly lower low pay attention to gold right here folks because This might have been this might be a low here because we're right out of 382 retracement here In the gold. Uh, we're down from uh, 26 Down to uh, oh four. So we're down 22 dollars No help there as far as any harmonic number But the fact that we took out those lows by a little bit and didn't go anywhere I would frankly like to see the abcd structure come down to about 1495 to 1491 And then I would look at it because that's going to be interesting here Folks this this whole system of the gold and silver is based on this head and shoulders pattern that you see here That 14 that 1568 was a big number on the weekly chart as you remember This is a perfectly symmetrical head and shoulders pattern From your left shoulder to the head the head to the right shoulder spot on They were equal equal in price between the the right shoulder at 15 47 the right shoulder 15 47 comes right down abcd Rally's up almost exactly like the previous rally and now we're in the midst of we're going to find out where we're going to be here in the next Next few days because this is going to tell us if we're going to make another abcd Taking us down to 14 14 And I don't know if that's going to happen or not But we're at a critical level setting in here right about now Whether the gold's going to hold this level or not, you know remains to be seen But we will be watching it for sure to see if it uh, if it holds up at this level So that's the key The platinum has had a real interesting pattern In fact, it's starting to fail a little bit. Let's just get this up here So you folks can take a quick look at it and we'll get it up here And where is the there's the old platinum? Let's get this up here You notice that we're setting a major support here In the platinum also and anything below the In fact, I believe we're blowing I believe we are blowing already In the platinum so that's telling us that support might be might be failing and platinum is very thin folks compared to the You know volume It's a fraction of what it is in gold and you know silver's only one sixth of what the Of what the gold is so you can imagine how how thin the platinum is and palladium is even worse But as we mentioned in last week's letter our good friend jim bardo leoni from fee 50 partners They he thought that the high was going to be at 1668 in the Palladium it got to 1672 So we won't be listening to him anymore, but it's now down about 40 dollars from that level But pretty much spot on the exact price So we'll be watching it very very closely as we go through here People have asked me about the short covering rally that occurred on friday And it was short covering because the the open interest dropped during that rally Folks those happen for a whole lot of different reasons and they happen all the time All you have to do is just go look at an e s e s chart and you can see this happening all the time I mean that's uh They have these huge rallies and huge drops. I mean that's just part of Log trading and you know the other stuff that they do for automatic trading and you know and and I I know the feds out there doings do their thing But they do it in context with good technical analysis folks all of these charts that we look at here Every single one of them. I mean you could you could just basically look at abcds and ratios and proportions and It's not it doesn't seem to be very mysterious At least you know from my my sense of anyway All right, we'll take a look here at the notes and bonds as we came in here Interesting last night right on the opening the notes and bonds actually made a slightly higher high by one tick Then we were on friday and then of course they had a little bit of a sell-off is still quite early yet But that's uh, that's pretty much what was uh, which was happening And again, let me just bring this up because it's important Again, you're looking at the treasury bonds now on a daily chart and again during these last few days We've had a drop in open interest that means that the players are not in the restaurant So it's going to be hard to feed the bull is is near what they say from history But you know history is meant to be repeated and those that don't repeat it Or don't who was that said if those that don't read history are bound to repeat it Who wasn't said that that must have been somebody like uh, Will rogers or church Hill or somebody like that, but I don't remember I know david david white would know that so david who said that If you don't read history, you're bound to repeat it. I I know gray matter doesn't uh lead to this right now. So we'll watch that We've been asked to take a look at the australian dollar I want to bring this up here because we've got a really good pattern here in the australian dollar folks You notice that we have that three bottoms down there. It's a triple bottom much like we're seeing in crude oil We had a really nice move off of that 6680 level We rallied About uh, what a hundred and some pips and now we're backing off a little bit. So watch the back off there in the australian dollar and as you get a nice little It could have been donald duck Might have been daisy duck. Who knows anyway, let's uh Anyway, the australian dollar does have a chance there if it can hold above that But again the u.s. Dollar and that's the one we've been watching with the euro and the euro's held up relatively well Uh, the uh, I guess it was somebody named santa anna with that just good. Let me host santa anna That's just right south of la. Let's get that u.s. Dollar up here so we can take a look at it. Here's the dollar index I believe we I believe this dollar index is is uh is uh Marshall's telling us that that it's george santa anna. Okay santana Did he play for the beetles? Was he one of you see the guy that played there? No, that was george harrison Anyway, look you see the abcd pattern here in the um the u.s. Dollar index the key the key Thing to keep take away from this folks is the d-point you see the d-point up there Then go to the far left and you see those two little boxes one says 1.618 and the other says 1.618 That's why that was important and what did we do last week? We were right up to that same number again That's why it's that important above 99 40 The euro is going to be in the toilet, but until that happens the euro is holding its own It's really trying to get some type of a rally in here and it could be a rally that could last You know, uh, who knows? Three four months three four weeks. We don't know all I know is that when you get down to that point here You don't know what's going to happen next. So the only thing you can do is focus on how much you're going to have to risk That's the whole key to this is find out what you have to risk If you're in the cd market and looking for a secure investment The tiger first mortgage program may work for you The security for these first mortgages are building lots in the tax opportunity zone in st. 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If you'd like more information about the tiger first mortgage program, you can call me at<PHONE_NUMBER> That's<PHONE_NUMBER> If you're a trader in the market looking for exposure to gold or gold mining equities Then now is a perfect time to sign up for tom o'brien's gold report The summer is over. Gold is trading back above $1,500 and the 10-year treasury is hovering at around 1.5 Tom o'brien has been writing his weekly gold report for almost 18 years There's no one that knows more about how the gold market trades and how gold mining equities react New subscribers get a 30-day money back guarantee. So you have nothing to lose every monday morning Tom publishes his weekly gold report with coverage of gold silver bonds the xa u hui gdx the dollar as well as more than 30 different mining equities as of september 3rd Gold report subscribers have five active open positions with an average unrealized profit of almost 38 for each position to see for yourself the types of profitable trades that are recommended within the Gold report sign up today by visiting tfnn.com Will the smp 500 continue to climb for bold trades on us large cap stocks in either direction trade spxl spu u or spx s directions daily smp 500 bull and bear Leveraged etfs direction leveraged etfs an investor should carefully consider a fund's investment risks charges and expenses before investing a fund's prospectus and summary prospectus contain this and other information about direction shares To obtain a fund's prospectus and summary prospectus call<PHONE_NUMBER> or visit direction investments.com A fund's prospectus and summary prospectus should be read carefully before investing an investment in the funds is subject to risk Including the possible loss of principal the funds are designed to be utilized only by sophisticated investors such as traders and active investors distributor four-side fund services llc The bull bear trading hour with tom and tommy o bryan next Okay, we're back folks, and I believe we have a caller on the line. Mr. Z. Are you there? Not a problem john. You were lucky to squeeze in and we're up 12 ahead of you. Just barely me. What can I Al's notorious for that Got our basis covered larry. Yeah, listen. What can I do for you my friend? Uh to 29 52 Mm-hmm the end of a short squeeze bounce Yes, john. I thought that that was an abcd pattern that was completed. I focused on that In fact, I think I probably still saved it. I believe let's just get up here I believe I did. Let me put print it up here. Yeah, here it is. We'll just get it right here And I'll bring it up and you'll be able to see it. This is what I think was happening And uh, you'll you'll see that so I thought I had two options He was going to scream up to the upside which it still could Or that was nothing more than a short covering with the open interest dropping Of course that really confirms that it was short covering So if open interest would have increased dramatically in that s&p on friday, that would have been a sign that Wow, it's probably going to go a lot higher But right now that was nothing more than one of those short covering rallies that we usually have Okay, thanks very much. Any options expirations looking out next? Put these at you and ask you an expiration date that jumps out at whatever reason you think and you're not to say so if you Say you'd like to look at Yeah, that october one. I really like for several reasons one That's the bottom of the market in 2000 in 1987 the bottom You know, we had to crash on the 19th And I believe it bottomed on the 20th or the 21st. So that's just historical In fact, as you don't have to give up as much if you do that over the november's but john In 87, you know, I did the october options and they expired on the 16th that friday Yeah, well, that's Hey, listen, john, I was happy as a pig in a in a pigsty because You know, the dow was down 106 points and it was trading at 27 that 20 just around 27 000. That was a huge break I mean that those options that I had were and I I put them on on october the 2nd for two weeks They made a lot of money and I was happy However, you know if I'd have you know done the november option It would have made just about 50 times more But I don't know if you could ever gotten filled down there because the market was so illiquid You know during that time that you know, it was really crazy But uh, I like the october 21st because you don't have to give up too much premium And uh, historically, it's a pretty good day and that would get that would mean we would be down If the high came in on the 25th like we think it did or the 15th of july like we think it did That would mean we'd be down five or six weeks. That's about all you get and then we'll see I got you very good on that. I appreciate that Yes, both this report the usda will give out Revive and of course still an estimate And harvest has just been for this little corn pullback 393 down the 386 here conjunction with this Crop report come thursday Yes, I do john i'm i'm looking at that very closely, you know, we got up to a 92 on the christmas corn And I think if you can get that down about 17 cents from the high that would take it down about 377 That would be a pretty good spot to look at it because I think these things are starting to you know begin to move I don't think the china tariff thing means anything anymore at all actually because You know, frankly from what's going on in hong kong china's got more problems and tariffs I can tell you that right now. So It's uh, it's going to be interesting, but I do like the corn down about 15 cents I think that would be a pretty good value right at a that'd be right out of 382 the whole move too So that's another reason why I would like it Yeah, and I'll just um, I went back and looked at the um, not just the monthly and the weekly charts, but uh Got access to some daily charts going back to that 1993 That was the year of that great mississippi river flood in july of that year and The corn price taking off and we have lots of uh lurches Monday evenings, uh crop progress reports that come out weekly in that area So, uh, I'll be watching that very closely for uh, I'll be watching uh, monday nights Each and every monday night the next couple of weeks for Clues of whether the same sort of thing is replaying here in 2019 Mm-hmm Wow Well, I uh, you know, this glowbex has just been a you know god send for us johns You can remember back in the old days You had to pick up a phone and get through to the brokers and had to wait and all that other stuff And now you're just like a floor trader. You just press the button You don't have to worry about outtrades. You're paying only four or five bucks I mean, it's it's just amazing that what's happened in the evolution of these markets over the past 35 years each day and I look at this. I said my god, this is uh, This is a man. I remember in 83 when I first looked at these things before these desktop computers are really getting pop Well, they're getting popular. I was watching the the breastert and Bernstein and the guy down in New Orleans Tim And basically when they were bringing these things out, I mean, it was just amazing how quickly it was going to work We didn't have charts, you know on these computers until it was 83 I mean you couldn't even get an interday chart. Hey, john. Thanks for calling in buddy. I appreciate it Thanks again, Larry. You bet. May god bless I'm certain you are or strive to be one of the best of the best at everything you do in life It's the most common trait that we tigers and tigers share If you're looking to become the best of the best when it comes to managing your money Let me teach you to do what most wealth managers tell you can't be done Which is how to time the markets. I'm steve rhodes author of mastering probability And for the last 12 months timer digest has been tracking my newsletter signals Which have earned me the ranking as their number one market timer in the nation for the s&p 500 for the last 12 Six and three months timer digest also ranks me as the number one market timer for gold as well The fact is markets can be timed and I'll teach you the exact set of tools that I use that has transformed me into one of the Best at what I do sign up for mastering probability today By clicking on the newsletter tab on the homepage of tfnn.com and get immediate access to workshops where I take you step by step How to use an extraordinary set of tools as well as provide great market calls to sign up today If you haven't checked out the newsletters page of tfnn.com What are you waiting for all of the tfnn newsletters are informative up to date Affordable and a must-have for every trader looking to gain a competitive informational edge in today's markets tfnn newsletters cover every aspect of the markets to offer you the very latest in market news Plus new subscribers get to test drive our newsletters risk-free for 30 days From all aspects of the markets including stocks bonds metals commodities and tech There's a newsletter to fit your needs exclusively from tfnn Stay informed each day you trade and get the competitive edge that will help you stay ahead of the game Visit our newsletters page by going to tfnn.com and click the newsletters button near the top of the page tfnn.com educating investors Since 1984 Basil Chapman has been using the Chapman wave methodology to advise traders of his expert market opinion While originally hand drawing charts from the late 1970s into the 1980s Basil noticed that prices under most circumstances virtually always had a certain number of legs to the upside before declining sharply Later basil found that computer software which included the standard market technical indicators Enhanced the degree of accuracy and calling price turns as well as market trend calls Thus was born the Chapman wave sequence Using the Chapman wave methodology along with other indicators Basil Chapman advises his subscribers of his expert market opinion each market day with his opening call newsletter Right now you can get a two week free trial to the opening call basil's daily trading newsletter by visiting the front page of tfnn.com Cancel at any time during that trial and pay absolutely nothing Get your two week free trial to basil's newsletter the opening call today by visiting tfnn.com This segment is brought to you by thinkorswim For more information just click the thinkorswim banner on the front page of tfnn.com Hey folks, we also got notice from al that the uh edmund burke around 1775 said those who don't know history Are doomed to repeat it and my old gray matter gray matter kicked in over the break And I remember it was napoli and bonaparte that also said that And I believe it's also in the oh, it's not in the art of war book. I don't believe so. I know that word I know that book uh by heart, but uh, I don't think it's in the well I could be wrong, but uh, and I'm wrong often, but never in doubt Okay, the one thing I wanted to bring to your attention folks is the uh chart of the treasury Notes and we'll get this up here to let you see it if you'd like harmony This is one of those that uh came in relatively nicely We made a slightly higher high at that 130 201 on sunday night on the open And then the market's been selling off just a tad. I mean, it's really nothing to Nothing to be afraid of so we'll see the only thing that would turn this market either way Is a strong close to the upside today in stocks or strong close on the downside that would and I mean More than 175 to 200 points down in the s and p down 20 handles in the Excuse me down 150 to 200 points in the dow 20 handles in the s and p that would tell us that that was nothing more than a short covering rally Whether that'll happen or not, you know, I'm not quite sure Remember we're going to have norm winsky on on the 10th. That's the we got a nice little What do we got this full moon coming up here on the the 13th Folks, what's happening in hong kong is very very bad. I mean when when they talk about protesters These are not protesters folks. These are terrorists. They're using fire bombs They're using little kids three and four years old as hostages. They're beating up cab drivers They're beating up bus drivers. They're they put burn down Believe it or not, they're burning down the stations where the mtr the train stations are Something that's just no graffiti. This absolutely beautiful place and they're burning these down. Those are not protesters folks Those those are those are folks that are really doing damage. They're they're terrorists I don't know what's going to happen, but it certainly looks uh very bad over there So let's send some white light, huh<PHONE_NUMBER>. We'll see you on the flip side


So everyone, welcome to this special CUBE Conversation. We're here in Mountain View, California at Pure Storage's headquarters on Cache Territory. We're here in the arcade of the main building, one of six buildings here in downtown where Pure has their contingent of offices. I'm joined by Kathy Self, who is a CIO of Pure, formerly many, many years at AT&T running IT operations and right of other workloads. Great to see you, thanks for spending the time. Great, thanks for having me. So we're in the arcade here all the old school standup video games from our generation when we used to play video games standing up, but kind of speaks to the culture of Pure. What's your role of Pure, what do you do and how long you've been here? Yeah, great. So I've been here at Pure for just about five months and it's been great. I came on board as a CIO and as all companies are facing their challenges going forward, we have ours for scaling as this business continues to grow. So super excited to be here and just been a lot of fun so far. Tell about your career before Pure, where were you and how long you worked there? I spent a better part of my career at AT&T, amazing company and was there for a little over 21 years, had a variety of roles, primarily always in the technology side. So everything from the IT, from application side to operations, to infrastructure, to project management, to technology innovation. And then the last few years was spent working on a lot of our network strategy. So what are we doing as a business to kind of transform AT&T's service provider network and how does that align from a cloud and a technology for what we had been doing in some cases on the IT side? And you've been at both sides of the table, you were a customer of Pure, now you work at Pure running all IT here as a CIO, trying to keep this transformation going. What's your take on the industry right now? Because it's interesting times as IT's transforming, you've got security front center, roles are changing, you've got skills gaps, you've got the cloud with scale, a lot of change. Yeah, you know, and it's interesting, that happens at both big companies and smaller companies. So the transition at AT&T having those same challenges, they look different here at Pure because we are a lower nine-year-old company. And as you start to look at, we have the real benefit of being a little bit younger in the tech front and being so close to, obviously being in Silicon Valley, you're so close to all the VCs and the startups, you get to have a little bit of different flavor, but it's a huge transition. I think that all of us in the industry are really faced with the challenges of not just trying to transform your teams and the work and what they're doing, but then also enable technology that's gonna bridge us from, what do we have to do with today and where do we think we're gonna go? So I don't think that is any different on any of the companies. I think we're all in that same boat of saying, how do you make sure I have technology that's gonna live longer than a year or three years? And then how do I have a workforce that can continue to grow and develop? Because we wanna be able to have our talent stay with us and make those journeys with us. And one of the things we do a lot of CUBE interviews over the past 10 years, certainly in IT, change has been a constant theme. But what's interesting is economics have changed and it's still got the skilled gas, but economics have changed and then the time to value the big long projects used to take months and months, years are now short and those cycles have been accelerated down to months and days sometimes. Can you comment and react to economics and then the time to value? You know, I think economics are, they're always in the forefront of every company, especially publicly traded companies that, you know, you wanna make sure we're returning the right value to our shareholders and that's an important aspect. But I think the more important part of it is just trying to make sure that you can make decisions that can outlive kind of a shorter economic window than maybe you'd have would have done in the past. So I think that's where all of us in the space of CIO roles are trying to really evaluate, how do you do that? How do you make sure that you can make those transitions and not have economics be your only foundation, but be part of it to help you make some of that shift? And the emphasis on workloads, I've probably heard the word workload, if it was a tag cloud, I'd probably say workload would be the biggest font because workloads would mean applications, applications have been around for a while, but more and more applications are coming, the migrating workloads to the cloud on premise. So a lot of emphasis on workloads these days, is that putting pressure on ITs, is putting pressure on the operations? How do you see that whole workload thing evolving? Yeah, I definitely do. So one of the big initiatives I ran AT&T was migrating a thousand of our strategic applications onto an on-prem private cloud. And it was all about not just the economics, but also the efficiency and the enablement for the business to move faster at a lower cost point. So that always tends to be your kind of bottom line part. But I think as I've come into Pure and has your trying to figure out how do you evolve, our workloads look very different. We are in our applications look very different. So companies have different profiles of whether it's an application or a workload. I think the other is it's a hyper focused around the user experience or the, so not just the end customer, but also the employee experience and what happens. So when you talk about workloads, it's not just applications that are business functions. They're also about how do you make sure that our employees are having that great experience because you want to have that so that they can help to grow us as well and be productive in their roles. I want to ask you one of the talk tracks I have on my notes here about Pure specifically, but more generically workloads are dominated in conversation, but also technology selection and personnel selection are also tied to workloads. And some have said to me, pick the right cloud for the right workload, pick the right tool for the job. You hear that a lot. You do. What's your thoughts on that? Because this seems to kind of muddle the wars a little bit because the old school was, oh, here's my suppliers. You pick them, they're all standing on, they all come in with this general purpose. But now with customization, more agility, it seems to be that workloads and selection of tech and people are tied together for that. Yeah, no, I think you're right. I think that, you know, part of our challenge is figuring out, and this is what you hear a lot of is don't get yourself locked in. And to that old notion of, you know, what you would have seen, you know, back in the day is you did, you'd pick a vendor and you kind of ride that through whatever, you know, the challenge you had. I think the vendor community has also recognized that's not really the model they want to be in either. They really want to be a partner. So now it's about figuring out what I consider enablement. So can I use you to work on or to be optimized for a certain type of function? But can I put my workload somewhere else and do it? So that's been one of the things I've been surprised that's probably more rapid shift is it's not just about can I do it all myself or on-prem or with these set of vendors, it's to say I want to be able to actually move across. So can I have the flexibility and being realistic because you can't have, you know, total flexibility and everything. But you can start to be prescriptive about certain areas and saying these type of applications or these functions or these workloads, I could get the largest amount of flexibility. But these, I'm actually okay saying most optimized, should go here. Whether that's on-prem, off-prem, hybrid, I think that's what we'll start to see a lot of. Yeah, we see that in the cloud conversation. We're going to talk with some peer folks about this, but one cloud could be great for a workload. That's right. And use another cloud for another workload. And that's multi-cloud because you have a couple of clouds. That's right. And that's the trend that we're seeing. Do you see that? Absolutely. Solid at AT&T, same thing here at Pure. We do some on-prem and we do some hybrid. We also do some hosted where we have our SaaS provider host start the application as well. And that actually then starts to get you into some other challenges that we have in IT that you start to say, so what happens with my data? And what does that look like? Where is it going? How is it secure? All those things that are so important as a business to make sure your customer and your employee data is, you know, core and centric to you. Final question before we get into the talk track. I got to ask you, being a veteran in the business, what is it crazier now? Than it was 10, 15 years ago in terms of work, operations, is it faster? What's your take on, you know, if you look back the old way into the new ways that, you know, more of the same, but just different kind of products and technologies. What's your take? So I probably had a unique role because I think it's super fun. I think that the ability to be able to transform your business and have the flexibility, I'm certainly being here in this role. And, you know, nine and a half year old company, there's lots of opportunity to be completely flexible. And I think that part is really fun.  I think a lot of us that are, you know, in these companies that are like pure, we have a, you know, kind of, I think of it as a gift to be able to say, hey, this is really something we should be able to do. How do we go do it and have the support to actually do it? So it's a, I think it probably depends on the part of the industry that you're in. There's definitely some challenges and I think privacy is definitely, you know, kind of a backdrop, but I think as you think about that, there's workable solutions for that as all companies are trying to go through. I think it's just a matter of making a, you know, that commitment to say, you know, you can, it can be flexible and you can make the progress you're looking for. It seems to be more of a builder culture as well as just an operational culture. That's right. Build and operate, build and operate, kind of a new kind of flywheel. Yeah, and I think that's the exciting part for IT is I think we've transitioned or in that mode that time of period where instead of just being a pure enablement for the business, it's really turning it into, how do you become a strategic partner? How do you have that seat at the table where you're helping to say, how do I help your business?  You've got to be able to do those things. Now it's about, how can I help you actually, improve what you're trying to do in the business side of it? So that's the part I think is unique and different is that focus on IT helping to enable, not just enable, but be that strategic partner to help change the business. That's awesome. A couple of talk tracks I want to get your thoughts on. One is Accelerate Conference, which is pure. We've been following the company since it was founded. Scott Dietzen, first interview I think was the week he founded the company, watching the success. Now we have a big customer conference, week of the 16th in September. 16th of September that week. Check it out. Your first conference. You guys are introducing some new things. What's the buzz? What are you planning on for the conference? Yeah, so you know, it's interesting because as someone who's coming out of, you know, the industry side of it, the thing that's hard is as a CEO, you're always trying to figure out what's going to be the biggest bang for my time because I can't go to everything. So I'm super excited to be able to attend the event. I think the uniqueness is it's focused on the customer, so existing customers, but also prospects, customers who are considering pure. The other unique thing that's happening this year is there is a very specific track around the executive side so that having the C-level conversations, you know, with some of our key leaders in our business and innovative thinkers. And so it's kind of running the spectrum of being able to say, if you're coming and you should all come, if you're coming, you're going to be able to have the conversations that you're expecting at a C-level that might look a little different than maybe someone who's trying to do innovation and in your team and what they're looking for. So whether it's demos or workshops and things that you can get your hands dirty on, I think that that's the excitement of all of it is. It's kind of a multifaceted, and it's a great opportunity to connect with your peers and with other companies to be able to say, what are you doing? How do I learn from you? We do a lot of those kinds of things, I think in general, but I think when you can get focused and have a peer group that's in a smaller type of venue where it's not thousands at a major, major conference that's existing somewhere in the US or worldwide, then you can actually have those meaningful conversations with your peers to say, here's the things I'm working on. How have you done it? What are you doing? So I think we're going to enable all those type of conversations to take place. So I'm excited to go. It'll be a lot of fun. What's the objective of the C-level track? Is it just CIOs? Is it CSOs? Is it CXOs? What's the focus? What's the objective? It is all of that. One of it, so interesting is my CEO is actually going to be quizzing me and talking to me about what is actually expected of a CIO? Because I think that as any C-level position, we have expectations of what we need to deliver, but there's also how you contribute to the business. So it's kind of all facets of it. It's everything from understanding what the expectations are to some, I'll say thought leadership around where technology is going, trends, those type of conversations and being able to have some roundtable conversations with maybe industry peers. So all those kind of aspects, but all those areas are covered. Should be a great event. Looking forward to it. Yeah, it should be a lot of fun. The queue will be there, of course. So we'll check us out. We'll be broadcasting live. Okay, second talk track, women in tech.  You've been years and years in the business. Been a big focus over the past years. The queue has been, have a lot of interviews with great women in tech. Where do you see the state of the industry? Cause the needles doesn't seem to be moving on the percentages. But there seems to be great momentum in real pros. A lot of mentoring, a lot of networking is seeing women VC firms evolving, very rapidly seeing cohorts cutting together. What's your take on women in tech, where we are, what's the challenges, what's the opportunities?  And I think it starts with all of us, individually in our organization. So organically is to figure out, how do you make sure everyone feels that they belong? Whether it's women or it's any other diverse group of employees, we have to figure out how to make people feel connected and part of the team. And I think it starts with that. And that's for kind of every discipline and that you can think of in a business. In tech specifically, I think the challenge for women is you tend to not want to be identified as a woman in tech. It's like, I want to be evaluated for my competency, what I bring to the table, my thought leadership, my perspective. And I don't think that's unique to women. I think that's just unique to people that we all want to be valued for what we contribute. I definitely think that as a general kind of population and technology, I have seen, where it used to be that I was the only female for many, many years in meetings, whether it was at vendor briefings or it was in different company forums. I've had some unique opportunity. AT&T was hugely focused on women in tech, women in engineering, all those disciplines. Coming to Pure, super exciting that we are, we also, so as small of a company, relatively sized to AT&T, we have women ERGs, employee resource groups. We have women in engineering, we have women in IT. So we have kind of the ability to get that mentoring and that coaching, the support within the company. And I think that's really valuable, but to your point, I think we have to still do more of connecting outside of our company, figuring out, and whether that's through the different universities to make sure that we're getting the pipeline coming in and then retaining. I think that's the other challenge because the numbers probably don't change much because we still see a significant amount of women leaving the workforce at a certain point or stage in their career. And we need to figure out what's that draw? Why is that happening? So. What's the technology impact? Because as technology becomes consumerized, you're seeing data analytics to a more bigger range of topics and competencies. Not just computer science or WEEE or whatever. A little bit more of a broader perspective. Is that helping at all? Do you see that evolving? Is that getting any lift increasing the population and competency levels? You know, that's a great question. I think we've had a pretty strong, I'll say run at women being in computer science. We haven't seen enough women going into leadership positions. I think this is just kind of an industry, generic kind of comment. I think it definitely helps. The more that you have a broader range of skills and capabilities, I think it's what is more fascinating is we need more women in those roles because as you think about the problems that all of our businesses are trying to solve, they're, it's not one dimension. And so if we only attack our problems with one dimension, one skill set, we just aren't going to be prepared to be able to, it's going to take us longer. And all of us want to be able to quickly, you know, solve the issues that are facing us. Well, here's a personal question. I'll put you on the spot. What's the big learnings for you looking back now that you've seen that you can share as a woman in tech? And if you can put your 23 year old hat on, what would you do differently, if anything, if you're living in today's world? You know, so it's interesting. I was asked this question before I actually came to Pure as I talked to a number of companies in the Valley and it was like, what would you tell your younger self? And I said, one of them is not to be afraid. And I think that so many of us, whether male or female, sometimes you get into a routine and you don't necessarily break out of it or change. And so you tend to maybe take a safer path or a safer direction.  And the other I think is I probably would have, I was probably naive to not realize that I was sometimes the only female. And so I just kind of worked because I didn't think that was a differentiator or it mattered. And when I think about it now, I probably should have done more to do some of the networking that we're doing today. That might have helped. You know, we talk a lot about the difference between mentoring and sponsoring. And it really gets into that either needs to be enough, you know, sponsors, both male and female who can help to, you know, not just develop but have the conversations, you know, make sure that people are included, those kind of having a voice at the table. And I was very fortunate. I worked under some amazing leaders, both male and female who made sure that I had a voice. But I, you know, I'm not a timid flower anyway.  But I think that's something that not everyone is as comfortable with speaking up and being okay that maybe I'm not right or. So I think that I would tell my youngest, don't be afraid. And the second is to do more to help get other others who maybe don't feel as if they belong as much to be able to have that same voice. Awesome, well, congratulations. You're awesome and excited for the event and looking forward to hearing more. Yeah, it should be a lot of fun. Okay, next talk track, you were a customer of Pure before you joined the company. Yes.  All the vendors pitching you, big infrastructure around tons and tons of workloads. And this is what, six, seven years ago, Pure was in the growth phase. Now they're helping the company in a much larger experience. But back then you took a risk on a technology. Tell us about that story because you made a big bet. Did it work, actually worked out you're here. I'm sure AT&T still has Pure. Yeah, they do. Tell the story.  I had a great team of folks who didn't want to accept the status quo, what was happening in the storage industry. And so as we were hearing, you know, like you said, the pitches about what's new, what's different, they were willing to stand up and say, hey, you know what, I think we need to look at this company. And you know, it is hard when you are, you know, kind of at that time, I would say Pure was somewhat of a unicorn in the sense that you try to have somebody who's that small non, you know, private health company to work with a big behemoth, like AT&T, there's a lot of different things, whether it's contractual, you know, the legal, the T's and C's, all that stuff. I mean, put aside the, you know, all of the technology, it's all of that. That's really hard for companies to navigate. Pure had an amazing technology. And what happened is, they came in and they said, hey, this is what we can do. We can transform your business. It's not just about the economics, we'll prove you that part. But we can actually help you to deliver faster for your application teams. We can help you with all these areas. And we can do it all within like two weeks. So the key was being able to stand up and say, I'm going to do this and then prove it in this very small window because when you're at a large enterprise, you don't have unlimited resources. It's very constrained of, I mean, it's not any different than a startup, but you have very limited resources as well because you're trying to run big scale. And so they were able to prove out everything they said. And then plus more, it was things like we started seeing efficiencies in the data center. We started to see that things like that where we thought we were going to have to expand and buy, you know, additional ports, we were able to not have to do it. So there was a lot of these like side benefits that we weren't expecting. We got those plus what we asked for. So we did, we took a bet on Pure. They were a great innovative team to work with.  And so it kind of was that match to say, we need to bring in companies who can help us to continue to innovate. We're a little skeptical at first and say, oh, we can do it in two weeks. Yes.  Let's see how it works in two weeks. So, and that's, so they came in and it was all proved out. So we, we actually, you know, move forward.  So it kind of spans a large. And not a lot of war stories around critical failures either. You said you had some successes with them before we came on camera. Yeah. She had that story, because storage is one of those things where you was going to have something might go down. The question is, how severe is the problem? What were some of the experiences you had? Yeah.  So up through that point, we had not had any 7-1 outages. So when you think of a large company, it's not unusual to have incidents, outages. I mean, that tends to happen just with the size of your footprint. AT&T was very successful working with Pure on having, essentially having a product that had big stability. And we didn't see those outages. And not just on running it, but actually doing the non-disruptive upgrades. So the ability to actually take the technology, do the next generation and not have any outages, that's pretty unusual for any company to experience. And so I looked at it as from a scale, highly unusual, but that was the success. Great success. Okay, finally, you're here at Pure now. You're CIO. Not as big as AT&T, but still, public company, and they have a lot of employees that are maturing as a company. You're running Pure at Pure, obviously you can't eat, unless you're doing a bake-off internal, better assessment. How are you using Pure now? How's it going? What's some of the, share some of the architectural details without giving away any secrets? What's it like? And what are you guys doing that's innovative? So, you know, we are a much smaller organization, obviously, than where I just left. But it's really important for us to have that same innovation and capabilities. We actually use Pure, but we use both Flash Array, we use Flash Blade, so both of our, I'll say, premier products. We also use Pure One, which is kind of the telemetry visibility allows you to do what-if analysis, look to see how you're doing from a capacity perspective.  So we actually run Splunk and Tableau, and using those type of tools and capabilities. We run them on our environments, and we're able to do a lot of things that the feedback that we're getting is like, oh my gosh, we can't believe that you guys are able to do this. And we have a very lean IT organization. So to do some of the things we're doing from a security analytics and threat detections and all that, those are things that aren't very common for, I mean, a lot of companies, we're all trying to be better on it, and we are able to use our own technology to kind of help substantiate what we're trying to solve for. That's awesome. So, super exciting. That's awesome. Final point on the CIO perspective, great to have you and get this CIO perspective. Again, both as a customer, and then working at Pure. CIOs out there right now are challenged with transformation. Digital transformation has been like buzzword, that's been kicked around for years, but now you're starting to see the rubber hitting the road. Real development pressure, modernization around app development, CICD pipelining to multicloud hybrid cloud. All this has now pretty much got some visibility into architectural decisions. What do you think is the biggest challenge facing CIOs today in terms of thinking about the holistic, five to 10 year horizon as they start to make investments and think about either aging out or containerizing pre-existing workloads to cloud native apps and on-premise capability of your thoughts? Yeah, I think that it kind of boils down to a couple aspects. One of them is modularization of your applications.  Being able to do things like have your data separate from your application and not have everything so integrated at that level where you then are, you get somewhat confined. You have issues within, I have to have this application running in this location, I also need to have the data has to be coexisting with it and so you run with all these constraints. So I think that for, depending on the age of your organization, the first challenge is trying to figure out how do I start to almost break apart my application environment, my infrastructure, so I have more ability to have more modularity between what needs to happen and where it needs to happen. So I think to me that's one of the biggest aspects. We're super fortunate because we're a big SaaS shop. Most of our applications, we're dependent on our vendors for the SaaS providers to have kind of worked through some of those issues. But that's one aspect. I think the second is the ability to navigate between on-prem and off-prem. So the hybrid solution is really, I don't see that going away. I think that all of us are struggling with the whole notion of whether it's the economics, it's the ability to, like you said, move a workload to the right location for the right optimization and the right tooling, et cetera. And so I think it's that flexibility. You can't get to any of that if you don't have the first part done. And then when you start talking about your digital strategy, none of that works when you start wanting to get into AI and ML until you have some of those things done and you've put that data strategy in place. So you then have that ability to have the thread across your whole ecosystem. And I think that's what our challenge is. And automation is key, but you got to automate manual attachments, meaning you have people to do it, then you got to automate that so the skill gap still is always going to be. It's still there. Great. Well, Cathy, thanks for spending the time and sharing your insight here and the CUBE conversation. Really appreciate it. Thank you very much. Absolutely, thank you for having me. Here at CUBE Conference, here at Pure Storage's headquarters in Mountain View, California. I'm John Forrier. Thanks for watching.


Appalachian Wireless has a plan to make your life simpler. It's called forward pay. No contract, no credit check, no problem. Plans start at $19.99 a month and include unlimited talk and text, or ticket to the max with unlimited data plus for only $89.99, which has 50 gig of high-speed data because we are you. We are Appalachian Wireless. Monday, September 19th, Governor Andy Beshear presented $4,113,381 in funding to complete phase one of the Dawkins Line Rail Trail. Phase one includes paving 24 miles of the gravel trail from Johnson County to McGoffin County, paving the parking lot at Jennings Creek and Jane Beshear Trailheads, and repairing drainage structures, signs, and bollards. The Dawkins Line Rail Trail is a 36-mile multi-use trail used by hikers, walkers, bikers, and more. Redeveloped from the 1900s-era rail line used to Hawk Timber and later coal, the Dawkins Line Rail Trail was opened in 2013. It remains the state's longest rail-to-trail project. I'm no more than a little bit about this amazing project and how it came about, because I'm proud to say my mom, former First Lady Jane Beshear, was a champion for this work. Construction on the trail will begin in October with the plan to pave two miles before the end of 2022. Phase one is projected to be completed by summer of 2023. This does so much for our area, and I mean it for the area. It's not just because it's physically placed in Johnson and McGoffin Counties and in Brethit Counties. It means so much to our entire area, because it does two things for us. One, it promotes recreation, health, and wellness of our own people, but it also is a recruitment for folks to come here and see what we already know. We're all natives. This is our home. We love it, and we want more people to know how good a place it is to be, and this is just another way for us to grow our economy. We're gonna promote our small businesses. Those folks who have those ideas and those visions, we're gonna help them cultivate those to actually come to pass. Phase two of the project will be awarded in spring of 2023. Phase two will focus on constructing a trail over the Carver Tunnel to connect two ends of the trail in McGoffin County, as well as paving the remaining 12 miles to the end of the trail. For Mountain Top News, I'm Breanna Robinson.