solutions from at&t have the security you need to get you there. call us. we can show you how at&t solutions can help you do what you do... even better. ♪ >> 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. >> hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to save a little money. my job is to educate and teach you. call me at 1-800-743-cnbc. you can't ignore what's going on around the world. it doesn't work because it costs you money if you do.

that played out today. the s&p 500 backsliding. the nasdaq declining. 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 to 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 both. if you don't know it yet, i am an early riser. before my trainer comes over and beats the living daylights out of me, i like to check out the markets, see the price action and digest the data. then tweet notes @jimcramer. this morning when i fired up the pc, i saw japan give up big

run 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 were now down 14 points. you're headed for a rough day and that's what we got. the new proximate cause, riots in istanbul, turkey. we know once a particular square is involved, we get worried, even as we had never heard of it until the day it was uttered. but it has to be impactful, right? on display in living color in your living room, and it does look pretty dire.

europe is closer to turkey than we are. it didn't shock me. europe was drenched in red ink. today was the same thing. turkey hurt those markets. bonds with the lower yield. the dow plunged from the get go. isn't that how it all starts? the big downturn? right? the answer is yes. we had many sell offs triggered by overseas events. greece, spain, italy, even tiny cyprus caused a dip in the pool. the captains are doing anything

they can to revive their economy but the backlash is what can be figured out. charles lindbergh found reasons to respect the third reich 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. now that we've established my macro and given you our worldwide miranda warning, let's talk about what else is there. they also caused five speed bumps. think about cyprus. remember when i refused to panic?

about cyprus. i thought it was cypress semi. i was a little skittish about pricing until i was told that i was dead wrong. cyprus, you didn't know it, was the lynchpin for worldwide capitalism. that's why this morning i went for a dripping with sarcasm rap on squawk on the street. i didn't want to get on the wrong side of the screaming. so i was willing to stick 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 we get to the end of the world? people fly in to buy bristol myers. that's what they did. they decided to scoop up some general mills. it's just a fact of life. there should be an envelope at the mutual funds. they should be shaking about 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 glib, lightweight money men think that the macro guys you see chattering on tv don't know jack. jack in the box, already up 33% for the year. makes sense. all of the hamburger joints with a pit of picante thrown in just reported a good quarter. jack could serve turkey and it wouldn't be relevant to turkey. not knowing jack is as big of a sin as not knowing about a plunging thai bhat. the guys who know jack hear thai bhat, 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 as it is to know erdogan. you should stay skeptical of anyone that tells you that ether one doesn't matter because they both do. linda in massachusetts. >> 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 sp 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 fan and they're in first place.

buy great companies pay good dividends and pay well overtime and the vix is a financial creation that indicates the volatility of an index. it ain't worth buying a stock for. we buy stocks of companies. that makes horse sense. tom in utah. >> caller: hey, jim, thanks for taking my call. i bought teva, the israeli 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. i saw the morning after pill restrictions are being lifted. >> nobody will make money on that. people are always saying go generic in the next two years.

teva is just not a great high growth story. it used to be. but we have gone over the cliff and i think patent cliff 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 currently 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 to find out. and later, fear itself. cramer is here to help you conquer any scenario. learn how to brave the so-called fear index in tonight's off the charts. plus, an exclusive look at a

company at the crossroads between two of the market's hottest trends all coming up on mad money. oh this is lame,

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>> ugly days like today are the reason that i spend so much time telling you about long term themes. themes like the energy revolution, 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 infrastructure.

i'm a consistent backer of pipeline plays. spectra is a major player in the natural gas food chain. that's one of the largest nat gas gathering and processing firms in the country. that is thousands of mile of nat gas pipeline transmission. billions of feet of storage space. spectra got in the oil game for nearly $1.5 billion. carries crude from canada and through the midwest. from the utica shale to new york city. something talked about

back of last year. welcome back to mad money. not seeing you with the hard hats this time. we can still get a lot out of it. your mlps, 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, master 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. that's going to make it one of the largest mlps in the u.s. there is a big pop that we have just decided and being

discussed it for some time. >> this must have just happened. >> just recently. >> there are -- would you be the size of, say, of kinder morgan? >> not the size of kinder morgan. but on a combined basis, and spectra energy partners, it will 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 from utica to new york city. 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 today, just before i came here.

we will have this in service in november of this year. great support by the governor christie, governor cuomo and mayor bloomberg. great 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 and new jersey in 40 years. the backlog made gas more expensive. gas had been more like three or four dollars. that is going to lower the differential. >> that's a great story. you have been acquisitive of oil.

obviously, if you felt that rail is much more competitive you would be in the rail business. >> rail is competitive. pipe in the ground is valuable. maybe you're not moving coal as much any more. then you can provide short term contracts. and the new pipeline is doing great. we're shipping much more than what we would have thought.

>> obviously you're in 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. it's not a 90% possibility anymore because of the politics. so one day that will be built. >> you have got a huge canadian operation. are they furious? >> sure they are. they're looking to ship oil to the west coast of canada and natural gas. >> send it to china. now, you guys have a huge exposure to natural gas liquids. 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 liquids in the country. i think we're going to remain relatively range bound. you can drill out gas quicker than you can build the pipeline and even quicker than the petrochemical 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. why not use it here? you will see some shipped to europe and other places. >> 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 after the break. >> 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 so-called 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 metadata solutions lie squarely at the crossroads. can its efforts to streamline drug science be the catalyst you need? find out when cramer talks to the ceo. all coming up on "mad money." at a dry cleaner,

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[ male announcer ] see what's happening behind the scenes at aflac.com. >> today was rough. everyone is dying to know where the next one is. a big spike in the cboe volatility index. it's often called the fear index. people worried that the bull could be running out of steam and 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.

the guy lives and breathes vix to figure out what this fear gauge is saying. sebastian considers the vix to be the most widely misinterpreted measure of the market. 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 at the index. all chart watchers believe that when a stock is hitting lower highs and lower lows, that means the share price is likely headed lower. the same can be said for the vix. when the stock market is healthy, the vix will keep it lower. bingo. 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 is basically standing still. but volatility and fear are on

the rise. it's not a good thing. it happened in 2010 and again in 2011. both times ending badly. in mid april that year, not long before the flash crash, the s&p made a low around 1200. you can see this mid april. then a week later it made another low at virtually the same level. it went higher. a hideous selloff. now it's true that the flash crash happened on may six. it did incalculable damage to

the public's confidence in the market it had begun selling off before the flash crash happened. he thinks it would likely begin declining regardless of that horrible day. this is important. it has not been negative. that year the s&p bottomed out at the beginning of july. see the s&p bottoms right here. the market made a lower low. that represents a time to buy.

the vix gave you a sign when you reach the bottom. 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.

on october 3, the s&p 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 selloffs. right now taking a gander at the action in the s&p 500 and vix since this past april. this time around it seems like you can't break through. that's what you're feeling when you watch the screen. the s&p has hit that zone three times. the vix has climbed higher and higher.

sebastian finds this extremely worrisome. he thinks we could be due for a single pullback. the s&p still has a lot of gains to give up. 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 are longer term, you may not be able to ditch and get back in. i think it's dangerous to get too negative but it's just as 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 lynn in utah. >> caller: thanks for taking my call. my question is on slv. it has taken a beating, down to $21 a share. 25% drop. do i hold on to it? do i jump ship and bail and sell it or look at it as a buying opportunity? >> not a buying opportunity. i don't like the precious metals. i don't like silver. i'm worried about gold. dave in ohio. >> hi, jim. a big boo ya to ya. i'm wanting to know if i should sell it or hold it.

>> clf is similar to vale. iron is going lower. 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. this could be. >> coming up, jim goes fast and furious as he faces a non-stop barrage of calls, giving stock after stock their final verdict on the lightning round. and later, the right mix? medical science, cloud computing. they are two of the market's hottest trends, and metadata solutions lie 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 is time. it's time for the lightning round. rapid fire calls. you say the stock, i say to buy or sell. play to this sound and then the lightning round is over. are you ready ski daddy? it's time for the lightning round. tarik in north carolina. >> caller: how's it going? >> real good. how about you? >> my stock is rns. on may 23rd you recommended it as a buy and then it was a sell. >> i work at cnbc, i write for the street but those rating systems i have nothing to do with it whatsoever. i like the yield. steve in michigan. >> 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. donora, pa, was his hometown. 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? >> just of okay. it does not have the big mortgage business that i want. they're not my favorite in the neighborhood.

>> a big pa boo ya. amtg? >> residential mortgage reit. we're not going to buy it. we are fearful of that group. joe in connecticut. >> yandex. it had all the numbers that seem to go in line with a strong stock. >> you're right. i'm not going to a russian internet company. i say you buy google. let's go to gary in illinois. gary? what's up? >> caller: i miss your radio show. i used to call you all the time.

i've been holding aui. should i cut my losses? >> i would rather have you in humana than there. we don't like the gold stocks here. i know it's a well managed company. the gold stocks are not doing well. i need one more. john in new jersey. >> yo jim. this is john from williamstown. >> what's up? >> caller: i'm interested in opec. i took your recommendation. >> phil frost has a long term record. it's been a winner for the show. conclusion of the lightning round.

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>> what do you get when you

but >> 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 meta 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 meta 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. great gross margin profile and accelerating growth. >> metadata 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. but 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 solutions. they are looking to replace them. they want to cut costs and get higher quality and reduce risk. we have been taking market share away from oracle for more than a decade. >> we have a facebook question that says hospital staff seems

to prefer oracle. >> we have built this company on customer feedback. we got a lot of feedback from existing customers. they love our solution and we are always improving our solution. >> let's talk about how you came up with the solution. you guys were people who didn't if like the legacy system, right? >> absolutely. we were looking at old technology and very tedious manual processes. i think there is so much more to come now. >> since yours is obviously faster and i'm sure that they like the trials that you do more than others. >> interestingly enough, the fda sets guidelines for how data has to be captured.

janet woodcock was talking about how clinical development has to but change and evolve because 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 their drug development dollars. the leverage goes up dramatically. >> 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 it after 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 or oracle. you give them more gross margin dollars. >> we can help to improve their ebitda dollars. >> just by coming in? >> by ripping out the old system and adopting our platform. >> 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 runway ahead of us. >> i wanted you on. i guess it makes sense. the chairman and ceo.

this is a very expensive stock like salesforce.com. numbers are numbers. mad money is back after the break. [ male announcer ] ah... retirement. sit back, relax,

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>> there is no trades past earnings. >> it has not mapped. if the company is rapidly growing, practically without skipping a beat. whatever that might have been 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 embarrassing 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 lulu lemon from all

of the apparel. 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 chord with her customers. that's why when i read the news, then i heard her say it's time to bring in a new person, for the incredibly expensive 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. we went out and asked people a simple question:

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geico, see how much you could save. >> there's always a bull market somewhere. i promise to find it for you right here on "mad money." i'm jim cramer. i'll see you tomorrow. >> america gets half its electricity from coal. the problem is, that process creates tens of millions of tons of waste loaded with toxic metals. this muck is called coal ash. never heard of it? neither had most of the people in kingston, tennessee, until a retention pool buckled, shooting a billion gallons of coal ash into the river and engulfing area homes. [ticking] >> the oilmen up there aren't digging holes in the sand and hoping for a spout. they're digging up dirt-- dirt which is saturated with oil. th'r