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tv   Mad Money  CNBC  October 29, 2013 6:00pm-7:01pm EDT

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final trade, doc? >> >> my mission is simple, to make you money. i'm here to level the playing field for all investors. there is 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. my job is not just to entertain, but to help you save money. only a few times in my career have i seen online companies, actual, ancient work horse stocks and resource companies put on major moves on very little information or catalyst.
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something we saw today in a session, the dow gained, the nasdaq climbed .31%. once in motion, these old line stock, kind of like fabulous running back, when everyone else gets tired in the 4th quarter, they will not quit. let me tell you about ten remarkable stocks, all have been rerated. that's the term from wall street, as different, better stories in the last few month, not much fanfare. so as not to hurt anybody's feelings. back in june, best buy was trading at $26 bucks. that was a remarkable run in january. most people figure best buy had to collapse from exhaustion of such a move. i mean it's retail. it has been shot by multiple attacks by washington. we all know na income growth has been staggering. employment, while creeping higher, isn't going to maintain best buy servers. right? wrong! best buy has been putting out
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numbers that are downright awesome. in fact the company is saying amazon is their show room. because they've cut prices cheaper than ann amazon and the playing field is cut from amazon. is it any wonder best buy surged from $24 hour in june to $42 now. come on? you know what? it may be able to go further higher still, given what we see with the consumer's loved goods. it's up and 71% for the year. wow, mind you, though, this is a huge stock that had that move. you know what's impressive? it's the run from early july until now. how'd that happen? i think the whole time we were watching the dreamliner. we have become convinced it was a matter of time before boeing's brand-new plane would be put out of service. there were multiple instances of problems. each time the stock took hit, it was cumulative. after that faithful day when the
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boeing 787 caught fire the sort seller's flew in to bury the plane and the stock, it turned out the fire wasn't caused by aboeing part at all, the shorts, they were trapped, trapped like rats. boeing was vindicated. the stock has never looked back since. when they indicated many were ahead, you know why they ain't going to stop any time soon, you always get multi-year moves from a new boeing plant. we just started this one. bristol-myers stood at $41 bucks in september, mind you, we began a very successful things about clinical trials and cancer drugs in pipe one. the stock had been under a cloud because of the patent expiration of a major product. once a new higher franchise drug was on the product, the stock took off. yesterday, bristol-myers, this huge capitalization stock has put on five fat points going from 48 to 53 in a couple days. guys, this doesn't happen to old line pharma. this is different. back in july, chipotle stood at
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$367. people were concerned, a quick decline like we had a year ago. growth has react sell rated. the stock has vaulted to $527 in an amazing move. buffalo wild wings, darn equity is good. the restaurant group is rerated. ch upotle is the finest. they were hanging out about $150, seemed to be doing nothing. in fact, that stock had been basically unchanged for a full year. then word began percolating of all these new fines, utica, the permian, fueled by fabulous news coming from pioneer natural resources, noble energy and it has run to 191. the last quarter was a par vel. federal express is a huge transport. all that growth here and around the world. that's why so many stayed away from the drug growth. after a nice move from the ''80s, fedex had been marking time in early october.
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then a remarkable quarter showed the massive destruction last 84 was beginning to pay off. the stock jumped up $133. okay, you could say some of this has returned from world wide growth. most people don't believe there is such a return. it's more than the economy. this company reinvented itself as a cheaper, leaner one. the only run in game stop is insane. here's a stock that traded $31 in may. it's still accumulating upgrades, with if you consoles coming from sony and microsoft, was this rally that hard to convict? with grand theft auto doing a billion if sales, should we find this one? is it shocking? game stop, i actually say it's gettable. you need to know the landscape and the players who simply refuse to quit when this question, this company is raised on debt. i think the raise on debt for game stop is simple, making money. how does kimberly-clark go? they are like tissues, how does
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that go from $98 a month? it's worth more. then the company's growth accelerated, it was announced as a good stock. what a move for toilet? it's crazy, we know gasoline is going down, now for its lowest point for 2013. so what's with the slum berger, slob, slumberge, going from $71 to senator 94 during the big decline in oil prices. simple, given oil prices can find crude much more simple than two years ago. oil is happening all over the globe. the drillers need surfacing. this breakout is astounding for stock stuck in a trading range seemingly forever. slumberge, last but not least, how can an appliance stock, that's right, washers, dryers, go from 112 to 148 in a couple month's time. easy if it's whirlpool and the
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sales didn't decline. that's right. whirlpool somehow transformed itself from being totally at the mercy of home sales to a company that took market shares at the same time a market sale kicked in. sell-gene and gilead, the last rallies, so totally unlike anything we have seen in ages. just a wholesale reordering a. reranking and, yes, a rerating of good companies going great and finding stocks going ballistic. once an object is in motion, it sure tends to stay in motion until it hits a wall. right now, i don't see any walls for these stocks. it's a remarkable moment. why don't we go to justin in florida? justin. >> hey, jim, thanks for taking my call. >> my pleasure. caller my question today is about wal-mart. by the way, a big boo-yah! >> well, i saw courtney have a
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really good interview with the wal-mart headed for the u.s. i thought he sounded very bullish. like the story about oil coming down, you know why i like cross, t.j., dollar gen. that's not bad. let's go to june in new jersey. >> caller: hi, jim, how are you? >> how are you? >> caller: i have a good question, do you think the twitter and ipos have a good investment? >> everything is on price. if you can get evaluation below $20 billion for twitter, i will bless it. i don't want people to go crazy, people say, why did cramer tell me to go crazy? sean in ohio. sean. sean? >> caller: hey, a vivacious boo-yah from ohio. >> i like that, real good. >> caller: i want to thank you first from the bottom of my heart for all you have taught me and the people in your great
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books and this show about investing. >> thank you. >> caller: but my question tonight is john deer, de, i noticed today that they are selling their landscapeing part of the business. it's been very good to me. but it's been disappointing this year. should i ring the register? reinvest the profits or just hold? >> i think you should ring the registers. ed aadco did not deliver. i don't want you to be there. everyone loves the shiny new toy, the hot and sexy. how about the tried and true? what's wrong with that? the old dogs? you know what, they have learned some new tricks. and they're going still higher. "mad money" will be back right after the break. coming up, killer comebacks. cramer is getting ready for halloween by scareing up some stocks that have come back from
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the dead, from naughty netflix to chipolte's fritos. a deathly decline. they come back to life. is there nor trick than treats ahead? and horror show? the s&p hit another all time high today, but is the market about to get spooked? cramer is quiting through the cobwebs -- quiting through the cob webs all coming up on "mad money." ♪
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>> with halloween rapidly approaching, it's time to talk candy! no, not that kind of candy. >> that stuff rots your teeth, but candy, ca dm dies candice, the acronym i coined for the gross stock, they're coming back again. these stocks could not be kept down. they were like vampires. what were the candies? chipotle, salesforce.com and deckers, intuitive surgical and express scripts. we took out buttive search auto
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scripts adding f-5 and amazon. since then, all these stocks with the exception of amazon have faltered. in keeping with the spirit of halloween the whole fads cohort seems to be coming back from the dead and make no mistake, these stocks are not zombies, a/l already a walking dead, walking around mindlessly trying to eat people. they're coming back like vam pires. of course i am the ultimate team player, dracula, they're faster, stronger, they got a thirst for the blood of their exceptters. first there is chipotle. it's up 285% since i coined the candies acronym in 2010. in july of last year, chipotle reported same store sales fell
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90 points in a single session. many thought that was the end of the bull market. it dropped to 316. that's what happens when wall street fears a high multiple stock might be losing its momentum. by a year ago, yes, it's finally come down to the bottom. ever sense then the stock has been roaring higher. magic demonstrates they've gotten their house in order, the growth is here to stay. two weeks ago, chipotle reported again, this time the numbers were so much better-than-expected, it rallied from 439 to 059. it has not looked back since then. it bought it right before summer of 2012, you still have a triple, 30% gain. i think it has more momentum. this is a super high quality concept fast food with integrity, yes, that's food with integrity is the secret term that they use, except, it's not so secret. it's a healthy tastes good. it soars with organic or natural greens as much as possible.
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plus, clipotle owe chipotle has three or 4,000 locations in this country. they offer 13% per 84. >> that is so much more than a lot of the smaller companies. it's amazing. it has 40 times earnings, which is expensive, considering the long term growth rate. you know what i'm saying in? this stop sells kwooild wildly. next up, apple, which is up 101% since we made it a part of the candies over three years ago. people say its one of the greatest stocks in the worked. forget growth. it was widely seen as the greatest company on earth, period, a year of steve jobs left us, apple peaked at around $700 since september, 2012. they went on as wall street worried about competition, samsung taking share and putting pressure on apple's margin, not
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to mention in passing, the company might be out of it. omg, ideas. after plunging below $400 earlier this year, apple has begun to work its way higher. trading up to 516 as of today. that is down from yesterday t. stock has been percolating. the markets last time is not schizophrenic. it beat the street's expectations for revenues and iphone sales. the stock was initially hammered in after hours trading. however, then came the conference call, the chief financial officer explained that the supposedly disappointing forecast had to do with changes with the way the company handled its revenue, deferred ref now made the difference. apple made it clear they may get aggressive with their cash to shareholders. then after opening a big, apple got hammered terrible today. that's where my trust would like to be a buyer of it as soon as restrictions allow.
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i thought this whole overselling was done. apple may not be the revolutionary company it was. it is only trading at 8.5 earnings estimate, more than half, 50% lower than the average stock when you back out the cash on the long term growth rate. that's not cheap. it won't take much to send stock higher, if they give a product. let put it that way. do they give you a holiday forecast? this stock will go higher. they guided it up last quarter. how about the ultimate back from the dead? netflix up 225%. here's the company that may be riding the single fastest one in my life. in july of 2011. they had a precipitous fall from $300 down to $54 in september of last 84. they irritated customers, raising prices rapidly, they split off the dvd rental business, changed its name to
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quickster. they mixed fuel worries netflix growth may be threatened. hulu and amazon, fortunately, amazon reversed the decision. fast forward to today, netflix is once again a preeminent growth stock. the company may have lost the love of wall street a couple years. it never lost the love of subscribers, that's who matters, like apple with its users. house of cards, orange is the new black the companies with 40 million sub skroibers up 30 million just over a year ago t. country's latest quarter was truly fabulous. they were worried on the call the stock was getting overheated when it was 60 points higher than it is right now. netflix remains the binge to catch up on favorite programs. it's the holy grail of content and the tv and movie studios are incredibly eager. even at these levels, i think it cannot be contained. remember, this is a cold stock. if it disappoint its followers, it will start down all over
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again. and there's deckers. deckers is the maker of uggs, a stock that has been a relative disappointment, boy, when we started, it was the hottest in the group. one of them absolutely, it kept going higher and higher. after years and years, deckers stumbled in the fourth quarter of 2011. it became clear the main product, uggs was hurt by unseasonably warm weather. it counted as a secular growth story. as the winner became an issue the company had to raise prices, to keep up with costs of wool, deckers cut in half over the course of 2012. deckers has been coming back thanks, to a new product loin not made of sheep skin. i think once and future growth name could again be rising from the dead like all the others that i mentioned. here's the bottom lean.
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great growth stocks never do i. they buy their time, turn things around and come back stronger than ever. that's what we're seeing with chipotle, apple, netflix and perhaps deckers. keep watching and i'll tell you about the rest of my comeback growth stocks. ♪ this veteran's day, "mad money" honors those who defend our country's freedoms by helping defend their financial futures. if you or someone in your family is proudly serving or has served in america's armed forces, we invite you to join our live studio audience on november 8th for a "mad money" invest in america salute to the troops. for tickets, go to "mad money."cnbc.com i love having a free checked bag
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♪ >> in honor of halloween toovents tonight, we're talking about the market. in 2010, i made a list of the strongest growth stocks out there, the ones bouncing back each time. they were chipotle and apple, netflix, deckers, intuitive surgical, express scripts,
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that's an acronym that spelled candies for short. trick or treat, partner. we already talked about the remarkable resurgence in the first four names. now it's time to cover the rest of the list, along with amazon and netflix and it's clever thinking in 2010. out of these nine gross stocks, only amazon has avoided falling from grace at some point since i talked about these as a group. one of them, one stock, intuitive surgical has failed to dom back from the dead. so we are bound forward. whatever. let's get back to the list. i want to tell you about salesforce.com. they are the king of cloud computing. it's up 155% since the growth index. three years later the sales force remains absolutely one of the most controversial companies out there. the stock with the sky high mobile that continues to prove the naysayers wrong.
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every time salesforce.com has gotten hit, that is often, it gets with the slightest bit of hair on it. remember on wall street, hair is a bad thing, which is one of the reasons why i personally have so much love for the stockmarket. but every -- but every time salesforce.com has pulled back it rebounded stronger than ever. the reason? they are revolutionary in the way business uses sophomore,play paying a subscription fee rather than a big licensing fee to store it in their own serve vers, which can be expensive, oracle. this year they hit 3 billion in revenue and the next stop they say is $4 billion. the company is picking up new clients left and right. the new billings are up 38%. that's the key pet trick i lock for. plus, sales force still has a ton of room to grow.
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it controls 20% of the relationship management market, hence crm, its core business. it is living in new areas of the cloud all the time. the company has a big dream force conference coming up next month. i think it will be a huge catalyst for the stock as it has been on other occasions. next up is amazon, a stock that wasn't a part of the original candies index, what was i thinking? we added an a there. it is up 110% since then. amazon never had to come back from the dead over this period. the only time it stumbled is in the dot-com collapse. a lot of way amazon is a lot like the undead in that it just keeps coming. it's as unstoppable as a zombie apocalypse, barring the disappointing end of "world war z" where brad pitt, of course, saves the world him amazon is not just the only number one online center, the fulfillment
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center, more and more people shop on the web, amazon is crushing its bricks and mortar competitors with best buy. no one can stand by him for long. that's a conscious decision on the choice of amazon, itself. jeff basos the ceo, they plow their money back in the business to generate more revenue growth. it's working. in the latest quarter, amazon delivered the holy grail of momentum. with its revenues rising 24% up from 22% growth if previous quarter, plus, despite all the hand winging about profitability, the gross mar jen expanded by a whopping 240 basis points, that said, amazon is a cold stock. it's a colt that i understand people's willingness to join. then there is the other growth name november 2011 when we made the switch from candies to f-5 networks? with f-5, we're once again back
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in the network territory. the fast lane of the information super highway, the of ware keeps data traffic moving as swiftly as possible is down sentence i added it to the index. that's because the f-5 has been getting cut in half. going from $138 in april, 2012, to a low of $67 this july. since then, f-5 has been coming back like so many times before. it rallied up to $84 today. just yesterday, they reported absolutely excellent no flies quarter. f5 is launching the big product in four years. plus the company is up against easy comparesons going forward. best of all, the stock is cheap, cheapsh cheap. $16 against a ton of cash. at 13.6 times 2014 earning, despite having a 14% growth rate. the trade is below s&p. the two cand candies name, it
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was compression thinking. intuitive surgical is up 17% since the creation of the candies index three years ago. the company dropped like a rock this year. isrg is the maker of the da vinci surgical procedure, they get people out of the hospital faster. >> that is kind of the holy grail of the hospital business these days. i think buttive surgical simply doesn't have the turbo growth it used to have. >> that makes the stock virtually radioactive, radioactive. the fact is, there are only so many hospitals out there, they have 371 machines, plus, buttive sur intuitive surgical, they are using isrg systems continue to desell rate. the stock trades at 22 times the earnings. i never thought it would go that low. it's still expensive. the company has a 13% growth
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rate. it's my take away from the excellent work that herb greenberg then of cnbc and street.com has done on the stock. how about this express? where has that been? the other stock, they booted. a business that helps hmos and insurance companies save money in the prescription drug plans by using the bargaining power to get lower prices on drugs. express scripts got pulled in june of 2011 when we learned that walgreens didn't renew the contract. al greens decided to stick with express scripts, the stock rebound. i like the company, it's no longer super growth power stock. three years ago, express scripts were riding patent expiration, they were fabulous for the business. they rack up much larger products with generic drugs. we have to tell you. it was a great wave. then it tailed off. now we are, indeed, at the end
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of the big generic drug bomb. express scripts doesn't have more patent scripts coming. that's okay. it sells for 12.5 times earning, 15% growth rate. just remember, if you buy express scripts, you are buying a well run stock. here's the bottom line. a lot of things can happen when a momentum stock loses its mojo, the multiple shrinks, a painful process they are in the middle of, express scripts has been through. it can come back to life like f5. some of them like amazon and salesforce.com never stumbled in the first place. let's go to roger in michigan. roger. >> caller: boo-yah to you from the state of michigan. >> i love the wolverines, what's up? >> caller: my company is millennial, symbol mm. they have been in decline since i bought it at 14, 22 is the current price. while earnings are not there, it seems to be a lot of evidence
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there is a bright future of millennium. what is your view? >> i really think they've missed. they miss. i do like the business model. i like the fact that they're doing problematic on the web. i can't get behind them until they put together at lowest two good quarters. they have so in the penalty box. let me go to mike in new york. mike. >> caller: boo-yah, jimmy. >> boo-yah, partner. >> caller: i want to ask you about young brands, i know you liked it at 64. it's currently at fent. >> i liked it in the 60s i stayed with it. i wished my charitable trust sold it in the mid-70s. i am still a believer that david novak will deliver. i got to tell you, i believe that 2014 will be a good year for young so i would stick with it. these monster names are worth a closer look. they're treats, not tricks. stay with cramer.
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still ahead, horror shock. the s&p hit another all time high today. is the market about to get spoofed? cramer is cutting through the cobwebs to find out when he heads off the charts. (vo) our new planes don't fly any faster. but it sure feels that way. because with power ports... and wi-fi... and in-seat entertainment, for everyone on board, now when you fly, time flies too. (flight attendant) sir, we're about to land. (vo) we're adding a brand new plane, with all this, every week. it's just one way we're building the new american.
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(announcer) scottrade knows our and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) ranked highest in investor satisfaction with self-directed services by j.d. power and associates. at a ford dealer with a little q and a for fiona. tell me fiona, who's having a big tire event? your ford dealer. who has 11 major brands to choose from? your ford dealer. who's offering a rebate? your ford dealer. who has the low price tire guarantee, affording peace of mind to anyone who might be in the market for a new set of tires? your ford dealer. i'm beginning to sense a pattern. get up to $140 in mail-in rebates when you buy four select tires with the ford service credit card. where'd you get that sweater vest? your ford dealer.
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>> now it is time, it is time for the lightning round. what's that? i tell you whether to buy, buy, buy, or sell, sell, sell. the latest sound is this and then the lightning round is over. are you ready, ski-daddy? let's start with the lightning round on cramer's "mad money." let's start with andrew in georgia. andrew. >> caller: hey, this is andrew. i want to give a boo-yah to jim. i have magnum hunter. >> i believe they had a good quarter with magnum hunter. they fixed the accounting
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problems. let's go to anthony. how are you? >> caller: bb-boo-yah. we have a stock we are looking at federal-mogul, fdml. >> it's much too complicated. if you want to be in that business, after that spike, i say number let's see what gm says this week. let go to jim in colorado, please, jim. >> caller: bb-boo-yah, from the high plains of colorado. >> hey, what's happening? >> caller: hey, i'm a long-term investors, jim, a long-term participant. hey, i want your opinion on ampp materials. amat. >> i think that will be blocked. sell, sell, sell, that's my charitable trust. it was a great hit for the charitable trust. we felt we should ring the register. let's go to matt in florida, please. >> caller: a key bbb-boo-yah. >> man, i'm loving that. what's up?
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>> caller: hey, a quick question for you, due to the position i got that's got a lot of debt and project costs over the top, i want to find out whether i should hold on to southern company s-o. >> southern company is trick, if you want that nice consistent yield, so is for you. 4.78%. stock coming back a lot. i need to go to mike, mike, mike, in new jersey. mike! >> caller: oh, big time boo-yah, what's happening, captain? >> not much burnt my hand a little on one of these candles. what's going on? >> caller: i want to know if i should back up on cisco? >> back up on cisco, i say that's it. nixay. the lightning round is over. on the trading floor it g in real time.
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>> with the standard & poor's
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500 representing stocks, once again making new highs, despite all the misery and horror washington put us through over the last couple months, i think it's time to take a step back and figure out how we got here, more important, where we are headed. to do that, we are going off the charts, with a technician, my colleague at realmoney.com, as well as being the queen who runs the website of the queen of filonacci. she ran out an s&p 500. at the time it was trading at 1,459. they told us it can head to 1,823. more than 360 points higher. when i first got it, i said i don't know if i can use it, it's too bullish. back then, it may have seen like
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a way overly bullish prediction to you. i know, i branched. branched. i always wanted to use that word. froen months later, the s&p is up 21 morris from where brodin told us to stay bullish in the long term. in other words, rodin predicted this rally. she stuck to her guns in dark moments where many gave into the despair of the market's. if you i think it behooves us to liss whan she has to say right now. now the move has run its course. we're the end of the month. the fact is rodin's highly mathematical non-emotional methodology, i stress that. you ignore that, so what is the bibinacci i don't know saying right now? even if rodin believes this market can see higher levels. she thinks it's time to get a little cautious. the reason, i want you to take a
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look at the s&p 500 for the woke. they see it running no a heavy ceiling of resistance. yes, this is lick two layers of tongue syndrome, one she thinks could stall the rally in its tracks. they will work on the bibanacci numbers, the important ratios discovered by a mathematician leonardo bibiancci. it repeats over and over, there are many. they measure past swings and measures these past fibonacci ratios, 38.2%. 61.8%. those all occur naturally over like pine cones. you will see, i'm not kidding. i check this out, define levels. when you see these relationships clustering together in the same place like in this chart, well, guess what, that's a sign we can approach a key area where the
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market pauses or perhaps changes direction. they point out two areas where the s&p get in trouble. the first is the range from 760 to 768. that's right here, that's where we are. it seems like woe have broken above it today. even if we manage to stay above this resistance, though, there is a second one right on some of it running from 1776 to 1771 when our great nation was founded. they think the existence of the s&p should make you more cautious and given that she's used the same methodology to predict the enormous run over the last 84, you got to take her seriously, she says the rally may be able to pause soon, it's been so magnificent, come to an end, the really cool thing about the methodology, she works on the y axis of the chart. i'm not trying to give you a math lesson here, can you apply these same fibinacci ratios to
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the x axis. check out the s&p daily chart that measures the time. can you see what i am talking about. see the different axises. they measure the key highs and lows to the recent past and puts them through the prism and projects the results in time. she locks for the timing relationships to physical out if there is anything big on the horizon. for example, they found a clustered cycles in the second week of october in the shutdown debacle. it bottomed around october 9th and changed choice. cluster? she said she told us that was going to change course right there. that's exactly what happened. now, the fibinacci queen is seeing similar timing cycles that could signal the rally is likely to come to an end. here's another view, this time, working ahead, all right, a series of clusters. the works suggest the s&p because, remember, the prime
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axis could peak between today, i hate when she is holding this october 29th and next wednesday, september 25th. we're the cost people. just to give you an idea how this works, she arrived at a time cycle measuring the distance between the august 28th low to the october 9th low. she then multiplied the number of days by 61.8%. one of those key fiba -- fibinacci ratio. there are a whole pivotal moment where the market is likely to change direction coming up in the next week. the trend could be about change. it sounds dicey to me. since the current trend is bullish, taking the market higher, that means the s&p may head in a more bearish way forward. she believes the odds can peak in the next week are higher than they would be without all these ominous fibinacci time relations
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coming up. we're at a wall here, people. we're at a wall here. so here's the bottom line. not only have we had a, not only had a really nice run the last three weeks, you heard me talk about it at the top of the show, we had a truly epic move since he started telling us the s&p 500 was going up from the 1450s to 1823. just thrown months ago. a move to 1823 only represents about a 3% gain. that's all that's left of this big call. meanwhile, she sees a bunch of signs in the charts that make her want to get more cautious. she's not fair. she does think this could be a good time to take some profits. you know what, raising cash, after one of the most amazing runs i have ever seen in my career is never a mistake. we're trying to take some money off the table. my charitable trust for very similar reasons. it is panful to park with anything here. wove let our cash position get too low, like many of you out there. so we're searching for stocks to
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trim. i don't want to get hurt being too bullish after this monster move and this huge fibinacci wall. stick with cramer. mad about "mad money"? immerse yourself no kramer's world. while you watch the show with z-box, on the phone, tablet or the web, get sneak peeks, go behind the scene, join the free app today for the ultimate cramer adventure. kudlow gets to the bottom of the source to avoid another fiasco. the kudlow report tonight 7:00 eastern on cnbc. bny mellon combines investment management & investment servicing,
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giving us unique insights which help us attract the industry's brightest minds who create powerful strategies for a country's investments which are used to build new schools to build more bright minds. invested in the world. bny mellon.
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. >> it happened again, it's getting ridiculous out here. after the headlines came out last night, what did you know? you knew things were inline, you didn't get much good news on that front, either. on the strength of that limited knowledge based on the press release, people sent the stock down 15 points on hundreds of thousands of shares of volume. i got to tell you this news. if you were involved in a sham of a process, you likely got your head hit. it didn't capture the reason why you were negative or gross margins didn't go higher. they announced the gross margin numbers, some ref now that would have been normally got included got to third. >> that fell out of, not into, the bottom loin, it's shocking to see the explanation on the daumps calls between a quarter of and five of 6:00 last night. eastern. you caught a 21-point rebound from the bottom last night to
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the first hour of trading today. that's the informed move. oh, yeah the stock took a big hit. definitely. even though i think it was unjustified in light of the quarter, plus.com, they would have brought it down thrown. at least now you can like we are trying to do with the trust make an informed decision, rather than the hair brain thinking last night when trading started before the conference call. you need to recognize we are doing the complicated companies here. they don't lend themselves to head loin writers who do not understand the complexities that people face. the journalistic app was excellent. in the end, they're in a race to get it told. they are looking for the same analyst forecasts and plugging in the same numbers and spinning out a story of what management might have to say in the quarter we don't find out until the conference call occurs. it's so virtually identical when only on the conference call did you learn that orders had gotten
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better in october. that was the key piece of information, a stock down a buck, sudden will i in midair jumps up 3, not long after we saw it in premarket trading yesterday. buyers were enthused by an earnings per share number that looked like a b, that was like taking candy from a baby. plus, you look at the release on the die boats franchise, a big growth enjen for a company without a lot of engines had declining shares. that was a total shocker, time to unload into all the silly people. sure, there are plenty of times to boat people to the punch. i've seen instances this year, so many people were shorting a particular stock of a company, where there was good news, it's worth it to take some in, a bunch of points higher, the monster squeeze that can rack up performance is always on the table. that's why i caution you to use puts, not common stock. for the most part, it's been a stupid thing to do.
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for the life of me, given all the metric, many of which you don't hear about until before the q & a session, it's all the more worthwhile to take the other side of the trade. the people trading off the headlines, so frequently, get it wrong. stick with cramer. kudlow goes straight to the source to get to the bottom of the plan to avoid another fiasco. paul ryan is talking to larry kudlow. the kudlow report coming up next on cnbc. you know that family? the one whose eye for design is apparent in every detail. whose refined taste is best characterized by the company they keep. well...say hello to the newest member of the family. the cadillac srx, awarded best interior design of any luxury brand. take advantage of this exceptional offer on the 2013 cadillac srx, with premium care maintenance included.
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. >> no, i didn't burn my hand. i'm jim cramer. i will see you tomorrow! if you are one of the more than 250 million americans who already have health insurance, you will keep your health insurance. >> people have got to know whether or not their president is a crook. well, i'm not a crook. >> americans like their doctors, they will keep their doctor. if you like your insurance plan, you will keep it. >> read my lips. >> let me repeat that, if you like your plan, you will be able to keep it. >> i did not have ssexual relat with that woman. >> if you got health insurance, it doesn't ah need a government takeover. you keep your own insurance. >> browny, you areoi

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