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tv   Mad Money  CNBC  October 29, 2013 11:00pm-12:01am EDT

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>> 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. other people want to make friends. i just want to make you money. my job is not just to entertain, but to educate you. call me at 1-800-743-cnbc. only a few times in my career have i seen old line companies, actual, ancient work horse stocks and resource companies put on major moves on very
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little information or catalyst. something we saw today in a session, the dow gained, the nasdaq climbed .31%. once in motion, these old line stocks, kind of like fabulous running backs, more touches 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 months, not much fanfare. these are companies that have been transformed. i'll list them in alphabetical order, 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 income growth has been stagnant. employment, while creeping higher, isn't going to maintain best buy servers.
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right? wrong! best buy has been putting out numbers that are downright awesome. they're done being a showroom for amazon. in fact the company is saying amazon is their show room because they've cut prices cheaper than 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 cap stock that had that kind of move. you know what's most 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 only 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 a hit,
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it was feeling pretty cumulative. after that fateful day when the boeing 787 caught fire the short seller's flew in to bury the plane and the stock, it turned out the fire wasn't caused by a boeing 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 plane. we just started this one. bristol-myers stood at $41 bucks in september, mind you, when we began to hear very successful things about clinical trials and cancer drugs in the pipeline. 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 big, old line pharma. this is different this time.
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back in july, chipotle stood at $376. people were concerned about a quick decline like we had a year ago. growth has reaccelerated. the stock has vaulted to $527 in an amazing move. buffalo wild wings, dyne equity is good. the restaurant group is rerated. chipotle 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 big finds in the bakken, utica, the permian, niobrara, 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 people stayed away from the darn thing.
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after a nice move from the '80s, fedex had been marking time in early october. then a remarkable quarter showed the massive destruction last year 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 has reinvented itself as a cheaper, leaner ford. the only run in game stop is insane. here's a stock that traded $31 in may. it's still accumulating upgrades, with new consoles coming from sony and microsoft, was this rally that hard to convict? with grand theft auto doing a billion dollars in sales, should we find this one? is it shocking? game stop, i actually say it's totally gettable. you need to know the landscape and the players who simply refuse to quit when this question, this company's raise 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 $93 to $108 in a month? it's worth more. then the company's growth accelerated, it was announced as a packaged goods 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, schlumberger, going from $71 to $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 servicing. this breakout is astounding for stock stuck in a trading range seemingly forever. schlumberger verified the move. last but not least, how can an appliance stock, that's right, washers and dryers, go from 112
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to 148 in a couple months time? easy if it's whirlpool and the 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 share at the same time an upgrade cycle kicked in. celgene and gilead, the last rallies, so totally unlike anything we have seen in ages. just a wholesale reordering. reranking and, yes, a rerating of good companies going great and fine 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. >> my question today is about wal-mart.
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by the way, a big boo-yah! >> well, i saw courtney have a really good interview with the wal-mart head for the u.s. i thought he sounded very bullish. like the story about oil coming down, i think that's a good idea. you know why i like ross, 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 quick question, do you think the twitter ipo is a good investment? >> everything is on price. if you can get a valuation 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: a vivacious boo-yah from ohio. >> i like ohio state, real good. >> caller: i want to thank you first from the bottom of my heart for all you have taught me
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and all the other people in your great books and this show about investing. >> thank you. >> caller: but my question tonight is john deere, de, i noticed today that they are selling their landscaping 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. agco did not deliver. corn prices are down. 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 scaring up some stocks that have come back from
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the dead, from naughty netflix to chipotle's booritos. a deathly decline. they come back to life. is there more trick than treat ahead? and later, horror show? the s&p hit another all time high today, but is the market about to get spooked? cramer is cutting through the cobwebs to find out when he heads off the charts. 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 candies, the acronym i coined 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 intuitive search
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and express 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 can cohort seems to be coming back from the dead, and make no mistake, these stocks are not zombies, a la walking dead, shambling around mindlessly trying to eat people. they're coming back like vampires. of course i am the ultimate team player, dracula, they're faster, stronger, they got a thirst for the blood of their competitors. first there is chipotle. it's up 285% since i coined the candies acronym in 2010. it spent years on the new high list. in july of last year, chipotle reported same store sales fell 90 points in a single session.
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many people thought that was the end of the bull market. it dropped to 316. that's what happens when wall street fears that a high multiple stock might be losing its momentum. by a year ago, the estimates finally come down to the bottom. ever since then the stock has been roaring higher. 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 that healthy tastes good. it's sourced with organic or natural greens as much as possible.
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plus, chipotle has 3,000 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? this stock trades wildly. next up, apple, which is up 101% since we made it part of the candies over three years ago. people say it's one of the greatest growth stocks in the world. forget growth. it was widely seen as the greatest company on earth, period, a year after steve jobs left us, apple peaked at around $700 since september, 2012. they went on to get poleaxed as wall street worried about competition, samsung taking share and putting pressure on apple's margin, not to mention
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in passing, the company might be out of 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. the stock has been percolating. the markets last time is not schizophrenic. it beat the street's expectations for earnings, 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 margin forecast had to do with changes to the way the company handled its revenue practices. deferred revenue made the difference. apple made it clear they may get aggressive with their cash to shareholders. then after opening big, apple got hammered terrible today. that's where my trust would like to be a buyer of it as soon as restrictions allow. i thought this whole overselling was done.
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apple may no longer be the revolutionary company it was. it is still a growth stock with beloved products, 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 new product. let's put it that way. do they give you a holiday forecast? this stock will go higher. they guided up last quarter. how about the ultimate back from the dead name? netflix up 225% since 2010. 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 year. they irritated customers, raising prices rapidly, they split off the dvd rental business, changed its name to quickster.
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the missteps fueled worries netflix growth may be threatened by 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 subscribers up 30 million just over a year ago. 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 default way to binge to catch up on favorite programs. it's the holy grail of content and all the tv and movie studios are incredibly eager to get their stuff on netflix. even at these levels, i think it cannot be contained. remember, this is a cult stock. if it disappoint its followers, it will start down all over again.
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then there's deckers. deckers is the maker of uggs, a stock that has been a relative disappointment since 2010. boy, when we started candies, it was the hottest in the group. one of them absolutely, it kept going higher and higher. after delivering years and years, deckers stumbled in the fourth quarter of 2011. it became clear the main product, uggs was being hurt by unseasonably warm winter weather. it counted as a secular growth story. as the winter 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 line 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 line. great growth stocks never die.
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they bide 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 madmoney.cnbc.com. it's a growing trend in business:
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do more with less with less energy. hp is helping ups do just that. soon, the world's most intelligent servers, designed by hp, will give ups over twice the performance, using forty percent less energy. multiply that across over a thousand locations, and they'll provide the same benefit to the environment as over 60,000 trees. that's a trend we can all get behind.
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♪ >> in honor of halloween tonight, we're talking about the monsters of the market. in 2010, i made a list of the strongest growth stocks out there, the ones that kept bouncing back each time. they were chipotle and apple, netflix, deckers, intuitive
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surgical, express scripts, and salesforce.com. that's an acronym that spelled candies for short. trick or treat, partner. we've 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 f5 networks. we changed the name with clever thinking in 2010. out of these nine growth 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 come 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 creation of the candies growth index.
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three years later sales force remains absolutely one of the most controversial companies out there. the stock with the sky high multiple that continues to prove the naysayers wrong. every time salesforce.com has gotten hit, that is often, it gets a report 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 stock market. but every time salesforce.com has pulled back, it's rebounded stronger than ever. the reason? they are at the forefront of a revolution in the way business uses software, paying a subscription fee rather than a big licensing fee to store it in their own servers, 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.
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the new billings are up 38%. that's the key metric i look for. plus, salesforce still has a ton of room to grow. 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 even part of the initial candies index, what was i thinking? we added an a there. it is up 115% since then. amazon never had to come back from the dead over this period. the only time it stumbled was during the dot-com collapse. one way amazon is a lot like the undead is that it just keeps coming. it's as unstoppable as a zombie apocalypse, barring the total disappointing end of "world war z" where brad pitt, of course,
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saves the day. amazon is on a mission to become not just the only number one online center, the fulfillment center, more and more people shop on the web, amazon is crushing its bricks and mortar competitors with best buy. no one can stand against them for long. that's a conscious decision on the choice of amazon, itself. jeff bezos the ceo, they plow their money back in the business to generate more revenue growth. it's working. in their latest quarter, amazon delivered the holy grail of momentum. it gave you arg with its revenues rising 24% up from 22% growth previous quarter, plus, despite all the hand winging about profitability, the gross margin expanded by a whopping 240 basis points, that said, amazon is a cult stock.
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it's a cult 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 fads can. f-5 networks. with f-5, we're once again back in the network territory. the fast lane of the information super highway, the software keeps data traffic moving as swiftly as possible, is down since 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 last week, they reported absolutely excellent no flies quarter. f5 is launching the biggest product in four years. plus the company is up against easy comparisons going forward. best of all, the stock is cheap, cheap, cheap. $16 against a ton of cash. at 13.6 times 2014 earning, despite having a 14% growth rate.
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it trades below the average stock on the s&p. the two candies names, it 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 system, they get people out of the hospital faster. that is kind of the holy grail of the hospital business these days. i think intuitive surgical is still a good company. simply doesn't have the turbocharged 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, intuitive surgical, they are using isrg systems continue to
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decelerate. 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 rate. that could be slowing. it's my takeaway from the excellent work that herb greenberg then of cnbc and thestreet.com has done on the stock. how about this express scripts? where has that been? the other stock they booted from the index. 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 poleaxed in june of 2011 when we learned that walgreens didn't renew the contract. walgreens 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
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profits with generic drugs. we have to tell you, it was a great wave. then it tailed off. now we are, indeed, at the end of the big generic drug boom. express scripts doesn't have more patent expirations coming. that's okay. it sells for 12.5 times earnings, 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 growth slows and 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 really stumbled in the first place. let's go to roger in michigan. roger. >> caller: wolverines boo-yah to you from the state of michigan. >> i love the wolverines, what's up? >> caller: my company is millennial media, symbol mm. they have been in decline since
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i bought it at 14, 22 is the current price. while earnings are not there, it seems to be a lot of evidence there is a bright future of millennium media. what is your view? >> the stock is in the penalty box. i really think they've missed. they miss good. 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. 8 >> boo-yah, partner. >> caller: i want to ask you about yum brands, i know you liked it at 74. it's currently at 67. >> i liked it in the 60s and 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 still believe that 2014 will be a good
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year for yum so i would stick with it. these monster growth names are worth a closer look. they're treats, not tricks. stay with cramer. still ahead, horror show. the s&p hit another all time high today, but is the market about to get spooked? cramer is cutting through the cobwebs to find out when he heads off the charts.
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>> now it is time, it is time for the lightning round. what's that? rapid fire calls. i tell you whether to buy, buy, buy, or sell, sell, sell. play this sound 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 big boo-yah to jim. my stock is magnum hunter.
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>> i think they had a good quarter with magnum hunter. they fixed the accounting problems. let's go to anthony in illinois. how are you, anthony? >> caller: bb-boo-yah. me and carl icahn 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 no. 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 investor, jim, a long-term action alerts participant. hey, i want your opinion on amat materials. >> 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,
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please. >> caller: a big siesta key bbb-boo-yah. >> man, i'm loving that. what's up? >> caller: hey, a quick question for you, due to a position i got that's got a lot of debt and project costs over the top, i wanted to find out whether i should hold on to southern company s-o. >> southern company is terrific, 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, just burnt my hand a little on one of these candles. what's going on? >> caller: i want to back the truck up on cisco? >> back up on cisco, i say
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ixnay. the lightning round is over. d? ♪ or their new product tanked? ♪ or not? what if they embrace new technology instead? ♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim. from td ameritrade. ♪
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>> with the standard & poor's 500, the most representative index of 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 brillint technician, my colleague at realmoney.com, as well as being the fibonacci queen who runs the website. she rolled out an ambitious price target for the 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
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don't know if i can use this because it's too bullish. back then, it may have seemed like a way overly bullish prediction to you. i know, i blanched. blanched. i always wanted to use that word. months later, the s&p is up 21 morris from where brodin told us to stay bullish in the long term. in other words, brodin saw this move coming and predicted this rally. she stuck to her guns in dark moments where many gave into the despair of the markets. if you i think it behooves us to listen to what she has to say right now. now the move has run its course. we're at the end of the month. the fact is brodin's highly mathematical non-emotional methodology, i stress that. you ignore her at your own peril.
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so what is the fibonacci queen saying right now? even if brodin 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 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 fibonacci numbers, the important ratios discovered by a mathematician leonardo fibonacci. it repeats over and over, there are many. they measure past swings and measures these past fibonacci ratios, 23.6%, 38.2%. 61.8%. those all occur naturally over like pine cones. you will see, i'm not kidding. i check this out, defined levels. when you see these relationships clustering together in the same place like in this chart, well,
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guess what, that's a sign we can be approaching a key area where the market pauses or perhaps changes direction. broding points out two areas where the s&p gets in trouble. the first is the range from 760 to 768. that's right here, that's where we are. it seems like we have broken above it today. even if we manage to stay above this first ceiling of resistance, though, there is a second one right on top of it running from 1776 to 1771 when our great nation was founded. they think the existence the s&p is facing should make you more cautious and given that she's used the same methodology to predict the enormous run over the last year, you got to take her seriously, she says the rally may be ready to pause soon, it's been so magnificent, come to an end. the really cool thing about the methodology, she works on price, the y axis of the chart. i'm not trying to give you a
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math lesson here, can you apply these same fibonacci ratios to the x axis. check out the s&p daily chart that measures the time. you can see what i am talking about. see the different axes. they measure the key highs and lows to the recent past and puts them through the prism and projects the results forward in time. she locks for the timing relationships to figure out if there is anything big on the horizon. for example, they found a cluster of 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 a similar confluence of 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.
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the work suggests the s&p because, remember, the time axis could peak between today, i hate when she told me this october 29th and next wednesday, november 5th. 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 fibonacci ratios. there are a whole bunch of these pivotal moments where the market is likely to change direction coming up in the next week. the trend could be about to 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 direction going forward. she believes the odds can peak in the next week higher than
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they would be without all these ominous fibonacci time relations 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 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 brodin started telling us the s&p 500 was going up from the 1450s to 1823. just 13 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 bearish but 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.
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it is painful to part with anything here. we've let our cash position get too low, like many of you out there. so we're searching for stocks to trim. i don't want to get hurt being too bullish after this monster move and this huge fibonacci wall. stick with cramer. mad about "mad money"? immerse yourself into cramer's world while you watch the show with z-box. on the phone, tablet or the web, get sneak peeks, go behind the scenes, join the free app today for the ultimate cramerican adventure. when we made our commitment to the gulf, bp had two big goals:
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help the gulf recover and learn from what happened so we could be a better, safer energy company. i can tell you - safety is at the heart of everything we do. we've added cutting-edge technology, like a new deepwater well cap and a state-of-the-art monitoring center, where experts watch over all drilling activity twenty-four-seven. and we're sharing what we've learned, so we can all produce energy more safely. our commitment has never been stronger. just by talking to a helmet. it grabbed the patient's record before we even picked him up. it found out the doctor we needed was at st. anne's. wiggle your toes. [ driver ] and it got his okay on treatment from miles away. it even pulled strings with the stoplights. my ambulance talks with smoke alarms and pilots and stadiums. but, of course, it's a good listener too. [ female announcer ] today cisco is connecting the internet of everything. so everything works like never before.
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>> it happened again, it's getting ridiculous out here. i'm talking about the trading of apple 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 base from the press release, people sent the stock down 15 points on hundreds of thousands of shares of volume. i've got to tell you it was lunacy. if you were involved in a sham of a process, you likely got your head handed to you. it didn't capture the reason why you were negative or gross margins didn't go higher. they announced the gross margin numbers, some revenue that would have been normally got included got to third. that fell out of, not into, the bottom line, it's shocking to
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see the explanation on the 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 the first hour of trading today. that's the informed move worth catching. oh, yeah the stock took a big hit. definitely. even though i think it was unjustified in light of the quarter, they would have brought it down 13. at least now you can like we are trying to do with the trust make an informed decision, rather than the hair brained 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 headline writers who do not understand the complexities that people face. the journalistic fallout was excellent. in the end, they're in a race to get the story 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
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you learn that orders had gotten better in october. that was the key piece of information, a stock down a buck, suddenly in midair jumps up the, 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 diabetes franchise, a big growth engine 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 beat people to the punch. i've seen instances this year where 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 possibility of a monster short squeeze that can rack up performance is always on the table. that's why i caution you to use
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puts, not common stock. for the most part jumping in after a report, it's been a stupid thing to do. for the life of me, given all the metrics, 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. in a world that's changing faster than ever, we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present.
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>> no, i didn't burn my hand. i'm jim cramer. i will see you tomorrow! >> my name is jeff allen, and n of the car chasers. all right! i buy, fix, and flip cars. this is a money-maker. >> sold! >> but i don't do it alone. i've got perry, a real artist when it comes to restoring cars. >> i think you should take these carburetors, just throw 'em outside. >> meg, my better half. she keeps all of our spending in check. >> we don't do cars to set bars. we do cars to make money. >> and eric. he builds, he wires, he repairs. >> i'm pretty sure this is legal. >> there's nothing this mad genius can't fix. >> she is purring. listen to that. >> my main competition is still

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