what happens after a manmade parabola? steep felloff, nightmarish decline, nasty. hopefully never ever to be repeated. now, if you take them together, the pre and post nasdaq crash, and then take a look at k-2, we see how the manmade parabola is every bit as dangerous to you, the investor as the treacherous slopes of the world's most dangerous mountain. all right. so what's all this about? what's all this -- what point am i trying to make here? who do i think i am sir edgar hillary? big jim whittaker. do i look like a sherpa? no, i am trying to put today's selloff in a place where you can understand it's so important, important selloff if you're a bull. i am not trying to put a good

face on a market that saw the decline of 186 dow points and an s&p retreat of 24 points. the losses are heavy. i know you took a beating. action alerts plus.com, my charitable trust took a beating. so i know you may have as -- well, let's just say, maybe you were riding it too. i tried to scale back. it's difficult. but what i'm saying is it may be difficult, but the losses are actually necessary to avoid -- that's right. last week i was on "squawk on the street" talking about the need to get at least a 3% correction going on here then i talked again on this show about 3% to 5% how it would be terrific. i was thinking, maybe it'll be shallower than that, but it would be terrific. you know why? because it breaks the parabola. we've had a remarkable run.

a 45% run from the bottom in such a short time that when you get together with my old colleagues, which i do all the time, you heard just whispered the word parabola. we hope or hear some fear or here. when you go to realmoney.com, it's the paid part of the street.com, i'm chairman there, it's where i blog. you hear parabola creep into the dialogue, guys going back and forth, mentioning it because it's a curse word. we all know what it means when a market goes parabolaic, it means there could be a crash on the other side. now, nobody who is in this market all in ever wants any of these days. today was a day of pain, creates tremendous angst, losses, unless of course you were scaling out into the top of what was happening last week or shorting stocks.

but if we break the parabola with a gentle contained 3% to 5% decline, my prediction -- and that means we shouldn't be facing the top of k-2 or a k-2 style parabolic slide. today's pain could be just the thing to break the parabola, which would prevent larger losses in the future. does it immunize against it? kind of, yeah, that's the way it's been in my lifetime. here's the question, as this proceeds and breaks the parabola, what is the right base camp? one, two, three, four? what is the right oxygen level? where should we be? will we fall back to dow 8,000, maybe 8,500, would we go back there? now, there is a growing perception, i heard it all weekend. i heard it after friday.

that we don't belong above dow 9,000 at all. we don't even belong above dow 8,000 i hear that. i don't know if i can agree with that. which way are we headed back to base camp one where the move started? that's in march. how do you answer that kind of question. i like to look at where companies are now relative to where they were when the decline began a year ago. and that is what puts it in context. i think that helps us understand where we will be three months from now. remember, a monster move in july, one because of the huge number of advances versus declines, signals that any selloff will be contained. the last three times we had this data, we had contained selloffs before another climb. we won't be falling off a cliff. and the gentle climb could be in store for us. that's what we want, non-parabolic. makes sense. makes sense to me, because not everything's bad. in fact, i know

it's hard to see on a dow down 1686 day, but a lot of these are good. let's take retail. i spent the weekend because i'm an interesting and lively guy reading the conference calls of every single major retailer that reported last week. in part because of what i now regard as the urban legend of the obliterated back to school season. i came back scratching my head. i think there will be a back to school season. i think it will be down from last year. but last year was slightly inflated by stimulus checks. if anything, the big surprise is that i expect back to school sales to be down 5% to 7%. that's not horrible. retail has no china exposure. and china was the source of today's selloff. given the new buy now wear now, the sense that nothing fancy is

worth it, you have to expect that the same store sales will be down. honestly, how could they be up? is that what people expect same store sales year-over-year should be up given the incredible decline in employment? more importantly, what's so outrageously bad about being down 5% to 7% if the stock market's down much more? if retailers are down much more? we've come through the most difficult point in the u.s. economy in 75 years and we're only going to be down 5% to 7% in retail? i regard it as miraculous. i also heard talk about car sales are barring from other retailer purchasers robbing peter to pay pall or ford as the case may be. not buying that turtle neck because you want to buy a car. hmmm -- not picking up that pair of sandals because you're thinking about getting a ford. now, i have not heard a single executive say that. to me it's ridiculous. maybe wanting to wear jackets versus a ford.

this isn't a tale told by many idiots, full of sound and fury thinking of buying nothing. maybe you haven't had enough of it today. auto sales are better, not worse. don't look through it, you can look through anything. don't. people will buy -- they will not buy a ford instead of boots. now, it is true that the sales of many of the industrial companies i follow are down 20% to 25%. the stocks are down 40%. but, more importantly, in terms of where we are in terms of the parabola being broken, i don't know a single business that is actually getting worse. not in an industrial one, not one. and i'm on a huge number of conference calls because i have nothing to do outside of this show. and i understand the endless drum beat of foreclosures. but, i mean, anyone who is overwhelmed by the data showing this 4,372% of homeowners are on death's door. that's how i interpret it, or whatever. must immediately go listen to

bob toll, from his amazing earnings conference call last week, things are looking up in so many areas of the country that the idea that 39,483% of all homeowners, including the ones without mortgages are going to walk away. isn't that what the media's saying? the numbers this year are so much better than last. we have a rolling bottom in housing and the worst areas, orlando, okay, bradenton, inland empire, they're the hardest coming back. they were the hardest hit first, that's what matters. i have to search for companies where things could get worse and i came back to oil and natural gas. but slumbe made it clear if oil stays where it is. it's really the only thing -- i have some fear about. natural gas is down big, but the political winds are changing. i think they're going natural gas' way. because of all these good

things, i could say we could actually go reference. did anyone say that at all today? i didn't hear them. the operative word is shallow. that's right, my biggest fear, the parabola. it may not be occurring. and it is what i most worry about is the parabola. it may not develop precisely because of the selloff like the one we had today. here's the bottom line. if things aren't so bad. i don't know, did you give your house away today because it was worth much less than the mortgage? i kept it. silly me. i kept the house. i actually live in the house. maybe that's a good reason to keep it. anyway, if things aren't so bad, a little common sense, trying to inject a little common sense into the debate. if things aren't so bad and they aren't, who says the market is in a dangerous k-2-like parabolic situation? have no fear of the parabola, the way i see it, today's decline is broken. and things are primed after a

little more selloff. they're primed to get better. i'm going to john in florida where it's raining, we have better weather than john. john? >> caller: boo-yah, jim, it is raining here. >> tropical storm boo-yah. >> caller: thank you. >> university of florida being drafted by me first boo-yah. >> caller: boo-yah, jimmy. >> thank you. >> caller: i would like to thank you for helping so many of us and taking my call. >> thank you, thank you for saying that. >> caller: jim, you're seeing a grand slam with the smart phone tsunami wave of growth that's coming. one company in every iphone and other smart phone is china contracts u.s. defense contracts is triquinn semiconductors, can you tell us why it wasn't on your smart phone index? elaborate your target price? thank you.

>> it's one i got from my friend who does the stocks under ten newsletter for the street.com, and he brought triquint to me. i think these stocks are not going up 20% to 30% over the course of the next six months, i think they double over the course of the next two years and triquint is included in that. let's stick with tropical storm mary in florida. mary? >> caller: and a very boo-yah windy day to you. >> well, let me tell you something, mary, if you send it up here, i'll be miserable. it's one of the nicest days of the year. what's on your mind? >> caller: how can i figure a fair multiple for a small cap high-tech niche business that had reduced earnings through the downturn while big competitors had losses and their conference call about three weeks ago. they say they have turned the corner. their customers are optimistic and order intake is accelerating. the stock price jumped, but more interestingly, the volume is up huge.

and it's staying up. so how should i look at this thing? >> volume up huge, what was price direction, mary? >> it's up, it's definitely up. it's a rocket ship. >> rocket ship, we're not crazy about stocks that go all the way up, we're scale sellers of those. without knowing a stock obviously i'm looking at a chart, this is technically oriented. would you share the name with me? mary? no, not going to be able to do that because it's a small cap stock. but here's what i would say, if that kind of behavior, you have caught a bottom in the stock, obviously without knowing the stock, i'm not going to say buy it or sell it, but i do believe that a universal rule is you can't go wrong taking a little profit. it's up too much profit, especially in this environment. i'm telling people do not fear the dangerous k-2-like situation. the way to break the parabola is to have a couple of big down days and it seems like we're having them. "mad money" will be right back. coming up. which banks will dominate the

landscape when the smoke clears? cramer's got his eye on one stock gaining ground and could make you mad money. plus, with sales of retailers slumping, cramer's got a stock that could have you dressed for success. and later, jim goes high voltage in an electrifying fast fire lightning round. all coming up on "mad money." miss out on some "mad money" get your text alert today. text mm to 26221 to get cramer right on your phone.

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it's happening. at last, it is happening. the new pecking order of banks is emerging. the ones that are going to dominate the new landscape when the smoke clears. and this friday, just last week, bb & t won the fdic lottery.

it picked up colonial bank, a failed southern institution. what looks to be a song. i have long held that this financial crisis would create a new breed of winners from out of the banking rubble. the winners being the banks that are strong enough to get the attention and the favor of the fdic. which is going to be left holding the bag for a lot of bad banks. and we'll award so-called good actors with the spoil. this is what we saw at the end of the last big banking debacle, the savings and loan crisis and finally it's starting to happen all over again. we're now seeing it with bb & t, which overnight has leaped frogged past capital one and suntrust to become the eighth largest lending institution in the country, you probably never

even heard of bb&t, with this deal, they will now be one of the top dogs in two states where previously hadn't even been among the leaders, florida and alabama. bb&t, a north carolina-based company has long coveted the deposit base of florida, which is a much faster growing market than its own. until this deal it was only the 16th largest bank in the sunshine state. a non-entity. now, after this acquisition of the alabama bank colonial, bb & t becomes the fifth largest bank in florida, that's critical mass. now it's able to spend money for advertising. now it's able to have a presence, able to take advantage of the rebound we are seeing in orlando and in the west coast. and yes, in the movement of condos in south florida. alabama, another market that could grow once the economy turns around. that would be a terrific fill in for bb&t

why? because bb&t was the 56th largest bank in alabama before this deal, now it's the fourth. again, economies of scale. you can see how geographically a southern is being born overnight. perhaps you've heard about colonial's legal issues, fraud allegations, the whole shooting match of problems. you might be thinking those could sink bb&t after this deal. you also no doubt are concerned if you follow this deal about all the terrible construction loans that bb&t got in florida as part of the bargain. to that i say untrue. hey, don't worry. when i say the victor gets the spoils, i'm talking about real spoils, meaning that the fdic has basically kept the legal problem and given bb&t the deposits, which is all we ever wanted anyway. plus bb&t got a great loss sharing deal with the fdic, one that works out to be heads bb & t wins, tails, the fdic loses.

and before it takes the colonial loan portfolio, remember, it's not possibly the fraudulent part, that goes to the fdic, it has marked down the loan book by 36%, meaning they expect the percentage of loans to go bad, that's twice the number of bad loans that the other deals from the fdic have taken and they are thinking about buying down, jpmorgan getting washington mutual and getting into a little bit the washington mutual is a little bit less. get this, they're assuming up front that 67% of the construction loan, 67% are going to go bad. as long as the overall default rate for colonial's loans stays under 37 and the construction loan default stays under 67, it's going to be a breeze for both. and bb&t should see enormous upside. the best part after this deal is done, bb&t's estates, what it's going to earn go higher. that's something called accretion. it's accretive.

there's no better way to get your stock price up than increasing your earnings per share. >> all aboard! >> so tonight, as you're watching basically bb & t's pricing $750 million worth of stock. the speed with which this deal was done was announced today. and the ugly nature of this stock market may present you with a terrific opportunity to buy bb&t on the cheap. maybe on the steal, there might be extra stock tomorrow morning, call your broker, see if you can get in on the deal. if you can't, let's take a pass to see if it comes down after a good opening. the last bb&t rally 10% from pricing. that was the last secondary, the stress test offering. then you came in where you could buy it at the offering price again. get this, it rocketed there from 20 to 28. could the same trade happen again? i don't see why not. bb&t could be the next fleet bank which was the biggest winner after the savings and

loan crisis. fleet started out as a small conservative bank in providence, rhode island, think north carolina was blessed by the fdic, think bb&t, just like it's been blessed. and able to take over a string of troubled banks from arizona, starting with the banking king of massachusetts, the bank of new england, bank boston, and became the seventh largest bank in america, like bb&t, which is number eight now and acquired by bank of america. the gains were tremendous, 500%. and what fleet did in new england back then, i think bb & t could now do in the south. as it seems to acquire most favored banking status from the fdic. the bottom line, thanks, fdic, for setting up bb&t for possibly being the next fleet. and by the way, memo to sheila bhair let my citigroup go. go reference, that is. focus on annoy, bb&t. it's time for the responsible lenders to reap the rewards they so richly deserve.

after the break, i'll try to make you even more money. coming up, with sales of retailers slumping, cramer's got a stock that could have you dressed for success. and later, the time has come for cramer to guide you through the market's ups and downs. stock after stock on the lightning round. plus cramer checks his inbox on an all new mad mail coming up on "mad money." this friday, you don't have to wait until midnight for the madness to start. scratch cramer at 11:00 every night of the week. take a double dose of "mad money" 6:00 and 11:00 eastern. some people buy a car based on the deal they get.

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with this awful china syndrome selloff, we're going catalyst driven here. we're betting that the market has no memory from day-to-day. a pretty good bet in this environment. when stocks get hammered indiscriminately, it gives you an opportunity to get the good ones that don't deserve to be taken down. take urban outfitters which reported the best retail numbers of the quarter on thursday. up all the retailers they did the best.

it's now selling off with everything else. how does that make any sense? everyone's decided that china's all that matters, but the united states isn't some gigantic version of hong kong, china may control the stocks of the raw materials and equipment companies that i agree with. but what the heck does the price of copper have to do with retail on america? we are not a colony of china, or at least retail isn't. and that makes the weakness in urban outfitters a gift. although, china does make some amazing knockoff coach and kate spade bags, not that i would know firsthand. one of the few successful incubators. it's not all about urban outfitters, it's urban and anthropology and free people, and two concepts leaf daughter and terrain. the key to being a great retailer is developing new ideas.

there are very few companies and fewer ceos that are good incubators and before i go into the list, let me say, showcase in case you're not familiar with the stuff that urban has or free people has. they have clothes for cramericans, clothes that can be worn in the white house. and they even have come up with a special house of representatives shirt. anyway, these -- let's go over the incubators. leslie wexner at limited used to be an incubator, but ran out of new concepts. then there's mickey drexler at j. crew, a couple of concepts going, and then there's the gap of which mickey drexler did that too. this was a guy he's like a walking incubator. and then there's urban. urban outfitters, terrific but shy ceo who i've asked to come on the show many times right from my neighborhood, yet, who couldn't stop talking about incubation on the conference call.

he is the real merchant with a great eye for merchandise. the guy gets it and retail having great management with a great eye and great inventory control, he understands that business counts, that's what counts more than any other industry. merchandise control, concepts, incubation, there's a big catalyst here, not just some large thing. urban outfitters has a board meeting this week to discuss international expansion and the company hinted on the conference call, not that anyone remembers at all that there could be a very big announcement coming this week, i think the market's forgotten about it. of course, we're panicked by china. i mean, china. and i think you want to get in ahead of any announcement from the board, especially if the market's down tomorrow. look, urban has loads of cash. most retailers are strapped. this one's got $583 million in cash, they don't know what to do with it.

small acquisitions, expansion, anyone is welcome when it comes to the retail sector. any one of those things could take. short-term, i think, urban outfitters is a great buy thanks to the selloff. but i'm not making this a trade. this is going to become a great long-term investment as it was for so many years thanks to the company's ability to create new concepts and its incredible sense of timing. what do i mean by timing? urban rolled out this. that's not my style. i like the $2,000 kind. it's the sophisticated wholesale power lines that sell to neiman marcus nordstrom, bloomingdales, average selling price $240, cheap for those prices, but that's what people want right now. they want urban outfitters authenticity and value. this came out, this brilliant cheap line of clothes for expensive department stores when credit was being cut off for competitors. for other apparel makers who

were on the hook to cit, the other new concept, okay, only one store, but these guys know how to incubate. t called terrain. remember, if you only have one store and it takes off in this terrain is really taking off, then i think you could see something big. the idea is to merge house and garden and the store situated in an indoor/outdoor environment with an on-site nursery. tree and flower kind, not the incubation kind. terrain reminds them of the beginning of anthropology and if this concept is half as successful as anthropology, well, that would be a grand slam for the company. then there's europe. urban outfitters recognized europe was beckoning. and announced plans to roll out many new stores. typically urban opens one or two stores per year, but going to begin to accelerate. they believe europe can support 100 stores between the two main brands urban and anthropology, getting the first store in

london and october. not just the uk. spain, germany, italy, all beckoned, another leg of growth for this fabulous retailer. given right now that urban outfitters only has about 300 total locations for the brands. most of these stores have thousands. we've got a huge expansion coming. also talked about expanding into asia on the conference call. plans coming three to six months. this is the only retailer with huge back to school momentum. or as the other guys would say, there is no back to school season. at urban, the customers, i guess, have been thinking about this. i think at urban, the customers are going to go back to school, i think at those other retailers, those places, they must have nothing but one-time shopaholic dropout who is have decided to study online and wear hair suits. inventory down 7% for the quarter. inventory matters because it determines whether or not they have to throw big sales to get rid of merchandise. you can't bring in new until you sell the old. but urban doesn't have that problem.

it's online consumer business big winner 17% growth. right now, direct sales only make up 15% of total sales. the company could grow to 25% or 30% over time. even more growth for this great retailer. right now urban's trading at 20 times, 20 times 210 earnings, big discount. four years of historical put it at 27 times, given the company's 25% to 30% long-term organic growth. trades at a premium to other retailers. the other places are shutting, places that should be like lowe's corp., and they've been the recipient of a giant shoe order from the cramer family. i think it deserves an even bigger premium because of that. i could see the stock going 50% higher from here, i think the stock could be up 50%. the bottom line, make a bet that the market has no memory from day-to-day that it's already forgotten the great urban outfitters' quarter that was

delivered the best of all retailers and that people have forgotten could be announcement that even from the board this week, take a look at the stock of this great retailer, while it's down for all of the wrong reasons. thanks to a china-based selloff. i've been looking at the globe. i have one of those things and i got mapquest and last i looked, it is not beijing outfitters, it's urban outfitters, you think someone would know the difference. lisa in michigan, lisa? >> caller: hey, boo-yah, jim! >> holy cow, fired up boo-yah from right back at you, lisa. what's on your mind? >> caller: well, jim, i want to know what you think about the upscale children's clothing retailer gymboree, they have no long-term bets. with school and the holiday season approaching are they a buy or do you prefer something -- >> they are best of breed. they are best of breed. i remember when they weren't

doing well, they made a major comeback. this is precisely -- you've got horse sense, lisa. i think that's a good one. i like having the pullback 10%, you're not going to get that. that has really gotten its act together, children's place hasn't. well thought out, well argued, i agree with you. chris in california, chris? >> caller: cramer, good humboldt county boo-yah. >> i'm going to give you a boo-yah right back at you, paul. >> caller: awesome, my question's about underarmor. how can it compete with nike or an adidas? >> it can't. that's the problem. they've had a decent quarter. the stock is dead in the water. i would not buy under armor stock, i would buy nike stock, but i'm not in any hurry. i think under armor if you go to the website you'll see they're advertising sneakers.

nike is king. unless you shoot and kill the king, stay out of nike's universe. lynn in illinois. lynn? >> caller: boo-yah from o'hare airport. and always been a leader in the industry. is there going to continue to be leaders in the industry? >> i looked at ralph lauren's charts this week, like to look at the charts every weekend because i'm always searching for something to do. i have nothing, i sit there on the la knoll linoleum floor, drinking the cheap gin, because it is hot. and i come back and say this ralph lauren, really making a comeback. i like the chart very much. i think it's got to pull back because it's had a bit of a parabolic move, but we've mentioned a lot of winners here because our viewers have horse sense. if you're looking to make a play in retail, urban's got a big meeting this week, no one's remembering it. best quarter and they've got capitalist t-shirts.

stay with cramer. coming up, the lightning round. cramer takes calls after call to give your stock its final judgment. can you keep up? boss: so you've been doing a nice job out there helping people save money on car insurance. gecko: aw thank you, sir.

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it is time! it is time for "the lightning round" rapid fire calls. you tell me the stock, i tell you whether to buy, buy, buy or sell, sell, sell. my staff prepares graphics on the fly. we hear this sound and then the lightning round is over. are you ready skee-daddy?

it is time for the lightning round. charlie in pennsylvania. charlie? >> caller: big boo-yah to you dr. of equities cramer. >> holy cow, man, let me get my scalpel. what's up? >> caller: in that classic tone of western civilization aka money, you state you've got to have a financial and own a company in your neighborhood. i think i'm filling that with community bank since the symbol is cbu. interesting, interesting bank. i got to tell you, the one i favor and i think you've got a good point with that one. i happen to favor fnfg, let's see where that one's cooking a dollar above where i recommend it. got that yield, it's making a lot of takeovers, it just bought the harleyville bank right next door to where i grew up. i have to say, i like yours, but i like mine better. michael, my home state of new jersey, michael? >> caller: jim, a boo-yah.

>> garden state boo-yah, right back at you. christy and corzine, i'm very impartial, go ahead. >> caller: i'm wondering about pfizer. it seems like it hit a bottom and kind of hasn't hit there in a while. >> but, you know, pfizer reminds me of a u.s. savings bond. you put it in your drawer, take it out a few years later and get the 4%. i am not a pfizer fan, i've got -- i even prefer merck when it merged. i like lily, i've got bristol myers, i prefer that one too. there's more growth there. pfizer loses a lot of exclusivity. generic drug problems. jason in georgia. second georgia, jason? >> caller: hey, jim. >> jason. >> caller: i'm going to give you the best player on the planet albert pujols boo-yah. >> i'm not -- i can't disagree. i'll give you pujols boo-yah right back. what's up? i can't disagree with that.

>> caller: okay. positioning for the oncoming mobile internet tsunami, what do you think of cy, cypress semiconductor? >> total buy. i'm giving that one a buy, buy, buy. we've been behind that thing since it was at 4, i redouble my efforts and say i hope the market's down so you can get some cy under 10 where i would -- >> all aboard! >> that stock. oh, archie in connecticut. >> caller: jim, i finally get to hear your voice. it's about the time. >> drel, i feel the exact same way. what's on your mind? >> caller: a few months ago you talked about chinese stocks and i was able to find a few and make some money. but i wanted to ask you about one. its ticker symbol is cfsd, i bought it at $6, it's almost tripled, what do i need to do? do i sell? >> well, first of all, we know without even knowing what the stock is you can hold up -- you can hold up, literally, you can hold up a chart of the new york yankees, i would say, come on, ring the register, take some off the table. i can't have that happen. now i'm going to go one step further and tell you i do not

know china fire and security, but i am going to put this one to work. i am going to do the work and we're going to find out what the story is with china fire and security because we know that the communists are awesome investors. china fire and security, make a note to staff, which, of course, is me. how about herb in indiana, herb? >> caller: jimbo, this is herb, i want to send out a boo-yah to you, my man. >> fantastic, hoosier boo-yah. >> was it hpy and i missed out on the wind kick, it was like 37 close to 60. kind of kicking myself for it and trying to find another wind that can do about the same thing. >> credit card payment business, you know what? i mean if you want to be payment processing, i'm telling you even though it's not credit card. i'm going to send you to paychecks, we just did the work on that.

no one seems to care at all. it's a big yawner. i think you got processing, you want paychecks and i'm throwing in a dividend, and a nice yield. john in georgia. john? >> caller: jim, southern university boo-yah. >> georgia southern boo-yah. it's our first georgia southern. great to have you. great to have you. >> caller: afl, aflac. do i keep buying on the pullback? >> a georgia southern individual telling me bought this stock far lower than i ever recommended and coming to me and i bow down in reverence to a man who bought this stock at a much better price than anybody else, i feel the stock has had a very big move, it can still go up a little, but if we give back that gain, we will never forgive ourselves, i want you to take half off the table and let the rest run. mark in colorado, mark? >> caller: cramer! >> mark. >> caller: hey, how about a boo-yah from the san juan

mountains in southwest colorado. >> beautiful boo-yah. beautiful. what's up? >> caller: hey, man, first time caller, long time listener. >> excellent, skip. >> caller: tell you what, i got some the other day after the cf industry talk about the takeover. i'm debating whether to do the exchange or take my profits. >> hey, listen, man, we are not arbitragers, we ring the register, we made that money, we redeploy. i command you, i command you to take that gain because nobody ever got hurt taking a profit. and i command the lightning round to be over! >> the lightning round is sponsored by td ameritrade. [bell ringing] the way the stock market's been acting lately

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mad mail. this is from al. i love your show and the mobile

index. you should be buying on the way down here. i've been riding the wave with american tower. you never talk about competitors. what do you think of people who fill the air with cell sigel nationals. i've been filling the air with the providers of that material. i got to stick with abc telecom. i'm look at at&t. i'm not dead set against it. i felt the tower builders had no momentum. this is from joel, cramer. i'm sure every stock broker in the world would hate that idea. if the government needs money so badly. why couldn't it tax stock market trades in i have been against this, why? because i favor as little frictions as possible. people want to buy and sell stocks, because i do not believe in buying whole, this would hurt the people actively managing their portfolios. would it be right -- i'm no guru

about how to tax the system. i'm sure there are other ways that i think would make more sense than putting frictions in every time you go in to sell. here's one from patrick. jim, if an electric utility has natural gas between 6 and 7 if for the coming years would that be a liability sin natural gas prices of a $3 range? what is your district of electric company, ede? i would think it might be overpaying on its hedging. these are very tough calls. only guy we thought was bright about henling in the whole universe was michael lynn, l-i-n-e. obviously it won't help them. one of the reasons i like coned, i doesn't have to worry about that nonsense. what effect does average daily

trading volume have on a stock's per share value. mike, no real effect. what it does matter, i like to use it as verification of stock prices. if there's a lot of volume it makes it feel like that's the right price discovery. no, average daily trading buying is something i don't use that's very important other than to be sure i got the right price for a thinly traded stock. there you go. "mad money" back after the break. some people buy a car based on the deal they get.

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so the call for us here, i think it breaks parabola. i always like to say there's always a bull market here. right here on "mad money" i'm jim cramer and i'll see you tomorrow. we're out here looking at bones

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when you're ready to ship, we'll even pick them up for free, no matter how many you have. priority mail flat rate boxes only from the postal service. a simpler way to ship. call or go online now to get started. is it about to become a cruel, cruel summer on the street? you can't afford to miss this show. welcome to "fast money," live from the market site, these are your "fast money" traders, we've got the summer correction covered from all angles. pete will tell you how to protect your profits. karen's got your selloff shopping list, and later peter says how long the correction will last. first, let's get to the word on the street. guys, this is a healthy pullback. the start of a correction. what do you make of it, guy? >> start with something bigger, i believe. we talked about wednesday was the last day here. 30 or 40 s&p points, worth about

30, i think we're going to 970. we'll see what happens at 970. it hate to know where everybody's talking about fibnaci. 905, a number that timmy's talked about. that's your next level. you get 970, you'll go to 905 faster than you'll brink your eye. >> i agree with that, i still think the pullbacks are shallow. i think down to 905 might be a couple trips more than people want to go. i think as you look at the data coming through, people are no longer assured that the fourth quarter's going to give us anything more than a pullback to where we were coming into the second quarter, which is a lot of questions on growth. >> when you say the pullbacks shallow, what do you mean? percentage wise they seem deep? that's a sharp pullback. >> it is, but not relative to the move we've had. people all over this show tell us 40% move up higher is more than you've ever seen in a recession, i think we've had an extraordinary move, i think a lot of people not in this market that were saying get me back to 950 on the s&p and i will run back in here.