i think you buy this week. >> apple. >> you think this international turmoil is coming a day over 6. we will see you tomorrow at 5:00. fast money starts right now. >> my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. mad money starts now. >> other people want to make friends. i'm just trying to save a little money. my job is to train, educate and teach you. >> you can't ignore what's going on around the world. it doesn't work because it costs you money if you do.

the s&p 500 backsliding. the nasdaq climbing. at the same time, though, you can't fear what's happening around the world. you can't let it control you. in fact, if you want a profit while others are panicking all around you, then you must harness the fear of what's happening in the rest of the world. got to do good. if you don't know it yet, i am an early riser. before my chair comes over and beats the living daylights out of me, i like to check out the markets and digest the data. this morning when i fired up the pc, i saw japan give up big rubber from yesterday. our futures down five ticks. a soggy open. why? because japan didn't pour more

gas in an economic fire. somebody expected it. i saw the futures. you're headed for a rough day and that's what we got. the new proximate cause is istanbul turkey. we know once a particular square is involved, we get worried even as we had never heard of it. but it has to be impactful, right? on display in living color in your living room and it does look pretty dark. it didn't shock me. europe was drenched in red ink.

today was the same thing. the lower yield. >> isn't that how it all starts? the big downturn? right? the answer is yes. we had many sell offs. greece, spain, itly, even tiny cyprus caused a rift in the pool. the captains are doing anything they can but the backlash is what can be figured out.

>> found reasons to respect the third in the 30s and chose not to worry about it. you must be vigilant. how the fed might or might not do stimulus. a messy affair. and given you our worldwide miranda warning, let's talk about what else is there. they also caused high speed bumps. think about cyprus. remember when i refused to

panic? >> i was a little skittish about until i was told that i was dead wrong. cyprus you didn't know it, was the lynch pen for worldwide capitalism. that's why this morning i went for a dripping with sar kazment wrath on squawk on the street. so i was willing to stickle it right here, right now, the turkish riots in a plummeting high stock market. and real bad pad thai i had the

other night did signal the end of the world, but, you know what happens when you get to the end of the world? people fly in to buy bristol myers. that's what they did. it's just a fact of life. >> they should be shaking up the events of japan. but here is how these managers think. bristol myers, incredible anti-cancer franchise. they will not be impacted by anything else. why not use the weakness to buy it. there will be just as many

cheerios eaten tomorrow. these money men think that the guys you see chattering on tv don't know chak. already up 33% for the year. all of the hamburger joint with a pit of picante thrown in just reported a good quarter. jack could serve the turkey and it wouldn't be relevant. it's as big of a sin as not knowing about a plunging tide. the guys who know jack hear tide, they are thinking about how ty cobb had an amazing batting average. here's the bottom line. i'm not shirking the macro.

it's every bit as important to know jack. you should stay kept call of anyone that tells you that ether one doesn't matter because they both do. linda? >> hey, jim. how are you tonight? >> always struggling on the down 100 days. >> caller: just a quick question. i'm really confused. i was told to buy shares of the vix to keep my losses at a minimum when the market drops. i know it's not a stop. what is it? if i do buy shares of it, how long do i keep them? this person told me not to keep them very long. >> what is that guy doing? look. the guy is probably a great guy. he is probably a big red sox plan and they're in first place. companies pay good dividends and

pay well overtime and fixes a financial creation that indicates a volatility of an index. it ain't wort buying a stock for. we buy stocks of companies. that makes horse sense. tom? >> caller: hey, jim, thanks for taking my call. i bought the israel pharmaceutical drug maker about 37. they come off from 60 thinking it was a prime value investment opportunity. they are still trading at about seven times forward earnings. >> nobody will make money on that. people are always saying go generic in the next two years. just not a great high quality story. it used to be. but we have gone over the cliff

and i think pat is a sell sell sell. >> stocks do matter. in the face of overseas turmoil and overseas turmoil matters to stocks. you have got to know both. don't be so bold as to think you don't need to know. but don't think that that's all you need to know. mad money will be right back. >> just ahead, eating out? spectra energy is building out more than $6 billion worth of american oil and gas infrastructure. could this pipeline of projects help power the stock higher? cramer has the exclusive. learn how to brave the so-called fear index in tonight's off the charts. plus, an exclusive look at a company at the cross roads between two of the markets'

hottest trends all coming up on mad money. a quarter million tweeters musicare tweeting.eamed. and 900 million dollars are changing hands online. that's why the internet needs a new kind of server. one that's 80% smaller. uses 89% less energy.

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[ roars ] ♪ [ roars ] ♪

[ roars ] ♪ [ roars ] ♪ [ male announcer ] universal studios summer of survival. ♪ >> days like today are the reason that i spend so much time how we're discovering so much new oil and natural gas in the u.s. and canada that it's a game changer. and a giant part of this energy theme comes down to transportation spectra is a

major player in the natural gas food chain. that's one of the largest gnat gas processing fields in the country. that is thousands of mile of nat gas transmission. for nearly $1.5 billion. >> like new york city. something talked about background of last year.

welcome back to mad money. not seeing you with the hard hats. still get a lot out of it. it's been what i think i have liked best about spectra energy. there are a lot of new ones being formed. what's new in your pipeline? >> we have been in that business for a long time as for limited partnerships. we have had really great response for our investors as we moved the crude lines in there. just at our most recent board meeting we decided that by the end of this year we can put all of our natural gas pipelines and storage in the united states into our mlp. there is a big pops that we have

just decided and being discussing it for some time. >> this must have just happened. >> just recently. >> there are -- would you be the size of, say, of peter morgan? >> no. but on a combined basis, and spectra energy partners, lit be about a 50 billion $enterprise, right. and $25 billion of opportunities ahead. we have got two great vehicles to finance those. >> you're also -- we talked last about building this pipeline. describe that it's a little bit more difficult to build pipeline in new jersey than it is in the great plains. how is it going?

>> great. i was in jersey city just before i came here. with we will have this in service by late december. great support by the governors and mayor. when you get those three guys on the same page. >> what does it mean for people who live in the area in terms of getting something for less. >> it's 15 miles of pipe for a billion two. sounds expensive. folks in new york will save about $700 million a year in energy prices. the first pipeline in new york city in 40 years. gas had been more like three or four. that is going to lower the differential. >> that's a great story. you have been inquisitive of oil.

obviously, if you felt that rail is much more competitive you would be in the rail business. but pipe in the ground is maybe e you're not moving coal adds much any more. and the new pipeline is great. that's much more than what we would have thought.

>> obviously you're a competitive situation. keystone, will it be built? what's the chatter? you guys all talk. is keystone going to happen? >> keystone should happen. it makes all the sense in the world. i think the politics of it are still very difficult. so one day that will be built. >> you have got a huge canadian operation. are they furious? >> sure they are. looking to ship oil to the west coast of canada and natural gas. >> send it to china. >> okay. now, you guys have a huge exposure to natural gas. are they firming? where are they? because we have the cheapest in the world but it seems like it just keeps getting cheaper. >> we're the largest producer of

natural gas in the country. i think we're going to remain relatively range bound. you can drill out gas quicker than you can build out the pipeline and quicker than the petro chemical plants. it will take some time before we see any substantial uptick. >> why shouldn't we export the stuff? >> i think you are seeing that. you are seeing propane exports going on. >> you know, i love the pipeline business. absolutely fantastic for all of our viewers. the president and ceo of spectra energy. news that they will drop down all of this pipe and you know these pipelines, they have been

fabulous. "mad money" is back. >> coming up, fear itself? the market's volatility may have some investors shaking in their boots but cramer is here to help you conquer any scenario. learn to brave the fear index in tonight's off the charts. and later the right mix? medical science, cloud computing. they are two of the market's hottest trends and data solutions lie squarely at the cross roads. can its efforts be the catalyst you need? find out when cramer talks to the ceo. all coming up on "mad money." [ male announcer ] citi is over 200 years old.

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♪ >> today was rough. everyone is dying to know the next one is. a big spike in volatility index. the bear could be coming out of hibernation in less than a month. that's why we're going off the chart with our vix expert.

then the guy lives and breathes vix to figure out what this fear gauge is saying. sebastian considers it to be the most widely used to interpret. it measures the level of perceived volatility in the s&p 500 in the next 30 days. some people believe that the predictive qualities because of the way that it's calculated. it means it gives you the right to buy it at a firm price. tells you how much what good is

that? according to sebastian you need to look deeper. all chart watchers believe that when a stock is hitting lower highs and lower lows, that means the share price is likely headed lower. when the stock market is healthy, the vix market will keep it lower. bin go. that's what is happening over the last month and sebastian says that it's a sign that the market could be due for a downturn. in other words, the s&p 500 is

basically standing still. but volatility and fear are on the rise. happened in 2010 and again in 2011. both times ending badly. in mid april that year, not long before the flash backs the s&p 500 made a low around 1200. you can see this mid april. then a week later it made another low. >> now it's true that the flash crash happened on may six. it did damage to the public's confidence.

gun selling off before the flash crash happened. he thinks it would likely begin declining. this is important. it has not been made. that year the s&p 500 bottomed out at the beginning of july. see the s&p 500 bottoms right here.

-- >> the vix was reflecting an underlying fear that the stock market had get it. you would have predicted this. and that's what sebastian is getting at. just like in 2010. the vix gave you a sign when you

reach the bottom. on october 3, the s&p 500 made a new low. okay right there? that's lower than that. that was not as high as that. again, that's the fear subsiding. started to see the same pattern that led to such nasty sell offs. right now taking action in the s&p 500 and vix since this past april. this time around it seems like you can't breakthrough. that's what you're feeling when you watch the screen. the s&p has hit the zone three times. the vix has climbed higher and

higher. sebastian finds it extremely worrisome. he thinks we are due for a single pull back. the s&p 500 stalls a lot of gains. so sebastian thinks this is a moment to sit on the sidelines. he predicts pain and sebastian knows that the sell offs were relatively brief affairs that only made excellent buying opportunities. for some of you who were longer term i think it's dangerous to get too negative but it's just adds dangerous to be too negative. the rise in the vix, a market that has been stalled of late is one more reason to be cautious as i believe the next leg in the market.

let's go to glen in utah. >> caller: thanks for taking my call. it has taken a beaten down to $21 a share. 25% drop. do i hold on to it? do i jump ship and bail? sell it? or look at it as a buying opportunity. >> not a buying opportunity. i don't like the precious metals. >> hi, jim. a big boo ya to ya. . .

>> i think the fear about the vix itself, it's all about caution which we have been saying. the charts back it up. don't be too negative. but don't be too complacent. higher high. stay there. . >> coming up, jim goes fast and furious as we faces a non-stop barrage of calls giving stock after stock their final break on the lightning round. and later the right mix? medical science, cloud computing. they are two of the market's hottest trends and me ta data solutions lies squarely at the cross roads. could this be the catalyst you need? find out when cramer talks to the ceo. all coming up on mad money.

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>> it's lightning round. are you ready ski daddy? it's time for the lightning round. >> caller: how's it going? >> real good. how about you? >> on may 23 you wrote it as a buy and then it was a sell. >> i write for the street but those rating systems i have nothing to do with it whatsoever. >> caller: boo-yah from the

hometown of the late stan the man. >> st. louis. >> that's where he was born. of course. i know he is there. you're right. you're right. >> i'm wrong. how bullish are you on cbr energy? >> i like cbrr more. let's go to peggy in new york. >> caller: what do you think of the new york stock? it does not have the big mortgage piece that you want. they're not my favorite in the neighborhood. >> a big pa buy ya.

>> we're not going to buy it. we are fearful of that group. >> it hads all the numbers that seem to go in line with a strng stock. >> you're right. i say you buy google. let's go to gary in illinois. gary? what's up? >> caller: i missed your radio show. i used to call you all the time.

should i cut my losses? >> i would rather have you than there. we don't like the gold stocks here. i know it's a well matched company. i need one more. >> yo jim. >> what's up? >> caller: i'm interested in opec. i took your recommendation. >> a long term record. it's been a winner for the show. lightning round

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. >> what do you get when you combine cloud computing with the business of developing new drugs? something we are constantly talking about on mad money. it's the force that drives all things pharma and biotech. this is a company that is the leading player of what is known as the clinical cloud. think of me ta data as the sales force.com data. this gives them a way to save money. they are at the heart of the drug business. however they have been on a huge hear.

out of nowhere it is run up 75%. so is this a pull back? let's talk to the chairman and ceo of me ta data solutions welcome to mad money. >> it's an honor to be here. >> it's great to see you. >> we have mark on all the time. >> we are defining the vertical cloud at this point. that means much higher margins, operating margins. >> they have got a hold on this business and yet it seems that even when i look at how much you have done already there is still a huge number of companies that do not use you. >> absolutely. drug development is moving to the cloud and we are the primary

beneficiary of that move. a lot of companies are just getting started on the cloud. we have a great offering for them. >> talk about what they are currently using versus you. >> sure. there are a lot of manual processes and they are using old legacy on print solutions. they want to get higher quality and reduce risk. >> we have been taking market share away from oracle for many years now. >> we have a facebook question that says hospital staff seems to prefer oracle. >> we have built this company on customer feed back.

we got a lot of feed back from existing customers. they love our solution and we are always improving. >> let's talk about how you came up with the solution. you guys were people who didn't like the legacy system? right? >> absolutely. we were looking at old technology and tedious man wul processes. i think there is so much more to come now. >> since the years are obviously faster and i'm sure that they like the trials that you do more than others. >> interestingly enough, the fda sets guy li s guidelines for hos to be captured. janet was talking about how

clinical development has to change and evolve because of of very focused targeted therapeutics. there is a big world out there of new innovation and drug development happening. it allows customers to do a lot more with drug development dollars. >> you said that you had just met with a giant pharma company. did you land that? >> i can't say. >> we will have to talk about of next call. >> you are constantly winning customers. >> if you look at the top 25, we are working with a significant number of them and they are

starting to adopt our technology on a more and more rapid basis. >> so they bring you in and their gross margins go higher. they're using legacy paper. you give them more gross margin dollars. >> we can help to improve their ebitda dollars. >> just by coming in? >> ripping out the old system. >> how did you get that incredible blip? what happened this last quarter? >> it has been building up for well over a year and there is a big run way. i wanted you on. >> i guess it makes sense. >> the chairman and ceo this is a very expensive stock like sales force.com.

numbers are numbers. mad money is back after the break. aw this is tragic man, investors just like you

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>> there is no trades past earnings. >> it has not mapped. if the company is rapidly growing, practically skipping a beat. whatever that might have ben and the bears have been gunning for it. amazing same store sales numbers. the more serious assault came from when the company produced

pants that were not up to snuff. they were see through. it was a highly visible and embarrassle slip. eventually the company said it's coming apart at the seams. how in heaven's name can the stock ever climb out of this hole? that is when we realized the magic of the response. she actually used it to distinguish it from all of their power what she said with the recall of the company's most important and lucrative pipeline is she cares about short term

earnings. she cared about the preservation of the brand and everything that lulu stands for. her actions struck a cord with her customers. that's why when i read the news, then i heard her say stuck for the incredibly exsensitive stock. it's good enough for me, should be good enough for you. it's a bounce you should use to sell not to buy.

at the worst possible moment, just when lulu was starting to harness the loyalty. stick with cramer. oh, he's a fighter alright.

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are top government officials lie to go congress and the rest of us? sure seems like james clapper lied to a senate committee about the phone and internet surveillance program. some on capitol hill are now calling for clapper to be punished. we will have the latest. and what about the self-proclaimed whistle blower edward snowden? there is a weird left and libertarian coalition calling him a hero. i say he's a traitor who should be arrested, tried and thrown into jail as soon as possible. and there is a global market obsession with whether the fed will taper its bond purchases. it's hitting stocks and interest rates, commodities, everything. guess what? i th