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. 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 make you a little money. my job is not just to entertain you but to educate you. so call me at 1-800-743-cnbc. they're calling this the putin rally. that's distinguished from the putin selloff. said he would be a good boy or comrad.

the dow climbing 89 points and nasdaq falling 1.25%. i have to tell you if that's what you thought was happening, you're missing the point of how markets work. let me put on my defrocking hat and away we go. here's the truth. we rally because in the absence of any genuinely bad news from overseas. here's what happens. we focus on what's really going on in the world of profits. profits are what matter. the rest is all distraction unless it deeply impacts or hurts the numbers. let me tell you how things play out. an event occurs overseas. nato perceives this as being threatening to the united

states. we know this because somebody tells us so. instantly the hedge fund managers take action. i happened to be rerouting my hedge fund last night. i think it's because these guys are paid to be right all the time. they have to make money on both up days and down days. mutual fund managers who can't short stocks and can just own stocks. they're not expected to make money every day. hedge fund managers are expected to predict events and profit from them regardless of where the market is going. the putin is an example that your hedge fund must be profited fund. they typically use the blunt instruments of the s&p 500 futures or also use the ets. you need a combination of things to happened to continue to bring out the sellers that the short sellers needed to be able to

capital lies off of the event. you needed an election which caused the market to get crushed last week. then you needed a firm response by the united states. including something that hurt the numbers. something that caused companies to lose sales perhaps in russia or here. then you needed a statement from putin that he wasn't done with his mischief making. the hedge funds put their short positions on after their first data point. then the secretary of state, curry, who said the russians would meet the swift sword of american justice turned out to be a no show. and that response was the cause of yesterday's rally. and putin said he had no more designs on ukraine which snuffed out being short the stock market. some funds will stay short no matter what.

betting putin is going to move on the ukraine on the russians who live there. i can't blame anyone on speculating on that. but i wouldn't put money on it. i consider the likelihood of putin taking action to be the same that a 14 seed makes it to the final four, better that a 16 seed. that's not necessarily something i would enter into. what happens in the absence of a russian invasion to ukraine? what's the next thing that occurs? we then default to china. for the latest week round of economic numbers which causes the domino affect of a hard chinese landing declines in minerals. slower global growth and a cutting of the numbers. guess what? we didn't get any china data today so we didn't play dominos. what's the next rap that could

influence us more than it should which causes the market to go down which causes the media to grasp at a reason to explain the red ink? europe, of course. unfortunately for the bears, the only data we had out of europe last night was stronger car sales. i'm sure these hedge funds were steamed the sales weren't too strong. terrific reason to go short. i'm sure they were angry that sales weren't weaker as expected. another staple from the hedge fund for dummies textbook. nothing bad from europe. how about japan? japan actually rallied. couldn't be spun in some hideous way. break out the hedge fund checklist, please. argentinian, turkish unrest. all those things that matter, every one of them just failed the generator and knocked the market down. what happens next after we have exhausted everything single wo?

we have to do with the reality of the united states and the profits of some u.s. companies. something we should have be focusing on from the very beginning. back to the fundment in every show and article that i do and write. that means we have to be real mundane and can't be big thinking globalist and examine the news and numbers that came out today. the pedestrian way that money is made. prosaic. which clocks in at 1 million homes being build. not too strong to force the fed tomorrow to say we have to stop buying bonds and not to far to spread the word that things aren't getting better so things get too high. then right on top of that benignly positive news came a consumer price index report, an increase of .1%. which actually is perfect.

yes there was some food inflation but that was cancelled out by heating and apparel costing. take it from me, the owner of a mexican restaurant. if the cpi were only to measure the price of guacamole, sorry hedge funds the policy won't be set by this non-key ingredient. there was one negative corporate story. something that bums me out. when we -- i just saw them last week. however, the company cited the weather ford's weakness. a detail that trumped the weather and caused the stock to advance a preannouncement to the down side advance. what does that tell you about the power of this market.

that and vague positives about how microsoft execs are vowing to be less like microsoft and more like apple. they were both perceived as positive. put all these facts together and a positive reaction to mildly corporate news and what's the bottom line? how about a rally. and that's exactly what we have. let's go to abendra in north carolina. >> caller: jim, how are you? >> real good. how about you? >> caller: good. good. thank you and thanks for your help as always. >> you're terrific for saying that. >> caller: my question is about the stock market. after the company announced the result in mid february, initially the stock pulled back from 44 to what, 39 or so and

then it became stable, about 40, but all of the last week it pulled back heavily because of any substantial news. >> i think markhed is doing fine. you want to know what i like. it's corner stone demand. it's concur and then i think that marketo is interesting but not in the cloud base california mav. >> caller: booya, jim. >> booya. >> caller: i hope you're not too hung over from the green beer. >> no. it's stout. >> caller: i specialize in taking care of diabetes and macular degeneration. i wanted to ask you about al mara sciences. >> everybody comes up with new ones.

i do not know that one. i know that sounds like -- i know as much as this great man who just called me. our readers and viewers know more than i do. i have got to do work on this small stock and come back. let's go to rob in massachusetts. >> caller: jim, a big strong booya to you. >> right back at you. bruins and red sox strong. what's up? >> caller: i'm looking at hertz, jim. they missed earnings today. the stock closed down slightly. they also announced they would spin off the equipment rental business which would bring about $2.5 billion into them which $1 billion they would use to buy back stock or 20% of the flow. the remainder they would use to reduce debt which would be positive on the balance sheet. should i be buying the stock now? >> yes, you should.

i think the split is going to be positive and a good idea. i like united rentals. uri. but hertz giving two for one. i think it's worth more than currently selling for. let the numbers come down tomorrow when the estimate cuts and then the putin rally, well i don't like giving that guy credit for anything. how about the numbers rally. maybe that's why we rallied solid facts this the absence of overseas wos. "mad money" will be right back. >> announcer: coming up. drug test. charles river labs helps discover new drugs and the company hit a 52-week high. but can it keep gushing with growth? later, passive aggressive. your fear of risk can be costing you. what you think is conservative can be the riskiest strategy of all.

plus, bracket buster. march madness could have more to do with your money than you know. tonight find out how your selections in the ncaa tournament could impact the stocks you picked for your portfolio. all coming up on "mad money." things are brewing in seattle. from iconic brands to inventive ideas. tomorrow, cramer goes cross country to look what's next in retail, housing and health care. plus go behind the scenes at the most important meeting of the year for starbuck's with its chairman and ceo. invest in america, brewing innovation tomorrow.

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for those of you what just can't bring yourselves to embrace the kind of red hot biotech ipos that i talked about yesterday, if you don't want to pick individual developers of new drugs, why not go with an arms dealer to the entire industry. i'm talking about charles ripper lapse. the company that provides the academy in order to prevent early stage clinical trials that new drugs need to be tested on. they make the process of testing new drugs both faster and efficient which is why they are outsourcing more and more of their lab work to this company and others like it. now charles rivers has given us a fantastic 49% gain.

i think there could be more up side here. not only was the company's most recent quarter truly excellent but last week they announced they're buying the contract division for $180 million. this year alone that gives then more exposure drug discovery. i got to find out more about that. let's check out mr. foster and find out about his company. welcome back to "mad money." >> nice to be here. >> you did nail it last time. you said give the stock some time and by the end of this year you're going to get contracts. what did you see that told you that things would turn around as great as they did? >> we've seen our clients really begin to outsource much more work. they're reducing their internal infrastructure and focusing on what makes the most sense for them. we also were looking carefully at some acquisition opportunities. and we're hopeful that we would be able to get one done and move upstream. the value proposition has

changed and companies like us have become critical to help the drug companies accelerate the development process. we have been seeing it coming and crafting our company to be more responsive to those needs. >> if you go through the transcript, people, you would see two references of need to be upstream. this deal that you just did drives revenue growth, expands proposition for clients. adds upstream invitro capabilities. tell us what that means. >> the labs is doing work with laboratory animals and we both produce them and do regulator toxicology studies to provide data going to the fda and other agencies around the world. we're not participating prior to to the work going to animals. we haven't been participating in finding the targets, the drug targets. we haven't been participating in

testing new molecules invitro in animals to see effective or problematic. you're looking for things that we ultimately will do in animals. our job and all the drug companies jobs are to make these go and no-go decisions as early as possible in the process. i talked about that last time. moving upstream which means early to when the drugs are developed will be critical for us to help that process earlier because if it doesn't look like it's going to work in nonanimal systems then it's not going to work in animal systems. if it's looks good in an animal system then the drug company can put more effort in developing that into markets.

we're excited to enhance dramatically and have a much larger portfolio for our clients to work with. >> i'm not in this process. how would you do a no/no-go without testing it on an animal? >> because you're looking at some of the attributes of the molecule, how it metabolizes and absorbed and stays in the system. you're working on things like the design of the molecule and how you formulate it. and so if you are seeing lousy solubility and absorption in nonanimal systems then you know that the drug is not working. companies like ours really need to refine them and industrialize them and provide them so that we have the investment in the people, in this case, 40% of the company we just bought have phds and we're adding a significant amount of value to the process. >> i went through your catalog.

i have to admit i didn't know there were that different kinds of mice. but you talk about humanized animal modes. what's humanized animal? >> is an animal that has typically no immune system. is double or triple immune know deficient and you're able to injection human dna into the animal and working with a small animal model. so you only have to inject a small amount of drug. drugs are expensive early in the process. it would be close to what the reaction would be in a person. we're seeing lots of advancements and personalized

medicine. the biotech industry. and animal models are becoming and will continue to become increasingly more sophisticated to test these drugs earlier in the process and get better answers faster. so the science is progressing very nicely in this regard. >> you have done a fascinating job. the acquisition sounds terrific. i want to thank you for making us so much money. where you said look, better things are to come. thank you very much. >> always a pleasure, jim. >> some stocks, some companies have it right. the last interview we had with him was one of the most definitive it's going to happen interviews. this one is, too. charles rivers labs i think will go higher. >> announcer: coming up -- passive aggressive. your fear of risk can be costing you. cramer opens his play book just ahead. later, march madness could have more to do with your money than

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lately i come out here once or twice a week and we go way back and do the basics with cramer's playbook. where i teach you about the building blocks of handling your personal finances and managing your own money. i subject i think should be mandatory in high school. but you could graduate from college without having the slightest idea how to balance your checkbook. i introduced a important concept for investors. you need two portfolios, a retirement that includes tax favorite like 401(k) plans and a discretional portfolio. i also told you was of my hard and fast rules. you should never own more than five stocks. because five is a minimum you

need to be diversified. at the other end of the spectrum. you shouldn't own more than 10 stocks are stocks at any given time because you need to keep track of your holdings. to make sure these stocks are still good. all that home work adds up. more than 10 stocks you have given yourself a part time job following them. most people don't have that kind of free time. and if you do you're finding other things you want to use it for like filling out ncaa college brackets. yes i do read them in my spare time. over the last week i have been getting questions for the need for discretionary portfolio and you should own between 15 and 10 stocks, no more or less. remember, send me your personal finance questions on twitter at jim cramer with the #getaplan. these questions are by traders. let's start with oblivious dorkus who asked a question.

considering we should only have five to ten stocks, how do you balance that. do you mean five to ten stocks in each portfolio or total? we got to put an end to this and figure this out. the question is a little more complicated than it sounds. five stocks is the absolute minimum you need for a portfolio diversified. if you have an ira, a regular brokerage account, they should have at least five stocks in them. otherwise, you're not diversified. when you have got too many eggs in one basket, it could get eviscerated way too easily. the five stock minimum is about

diversification. you will burn yourself out on stocks if you try to do your home work on more than ten. that doesn't mean you should own five totally discretionary stocks. you could own the same stocks in both retirement and discretionary portfolios. when you're young, under 30, say the five stocks in your discretionary portfolio could be the same in your retirement. you can have some overlap as you get older. if you have a company you believe in, there's no reason you can't have for both. however, retirement investing is

different from discretionary investing. you want to be more conservative with your retirement because you're going to need that money once you stop working. conservative means taking fewer risks as well as more value stocks and dividend names. the discretionary portfolio you can be more aggressive. what's it mean to be an aggressive investor? you can take more risks. you can speculate. and you can own high flying momentum. last week i gave you a model portfolio. i'm going to show you how it might be different if it's for your retirement fund or discretionary one. first we have got one of my favorite oil companies. eog resources. a classic growth play on the north american energy revolution that i think you can justify owning in both your ira, okay, or your discretionary account. discretionary, retirement. dr. not duane read. i told you to own a text stock.

in your more aggressive you might want to go with a company based on sales. that's about revenues. but for retirement you want to be more conservative but not so conservative that you can't have capital gains. i told you to own a retailer for your conservative requirement fund. macy's is the way to go. for discretionary, that would be whole foods. own industrial like johnson controls. that's kind of an example of a stock that can be in both accounts. i told you to own a health care stock. for retirement you want to go for something good growth. i'm talking about the johnson and johnson or the always treasured bristol meyers. i like gilliad or what else? don't speculate in your retirement fund. too much risk.

if you're going to play around with small dollar amount, do that with your discretionary money. if there's something that's making a comeback. i'm talking about rite aid, sprint, or about to leave, that's where you put them. remember, your retirement comes first. so before you start playing around with your discretionary portfolio, make sure that you're contributing enough money to your 401(k) plan and your ira. ideally, you want to have both the 401(k) and an ira because the contribution limits for an ira, $5500 a year or $6500 a year are just too low. if you're allowed to pick stocks in your 401(k) and your 401(k) and ira should have the exact same holdings because they're both pieces of your retirement fund. while you should be more conservative, you're allowed to

have more overlap. you can own it for both portfolios, you should never have more than 20% holdings in a single sector. that's diversification and it is all important no matter what. above we get to lightning

round, we have got to talk about tomorrow night's show. i'm making my way to seattle. getting you behind the scenes at starbuck's annual meeting. sitting down with howard

schultz. i'm talking with nordstroms. companies pushing their industries into new territory. it's all about innovation. tune in tomorrow for invest in america brewing innovation. and now it is time for the lightning round. bye, bye, bye, bye. and that -- wow. there we go. are you ready to start with the lightning round. i'm going to start with mason in delaware. >> caller: how's it going, jim. >> real good. how about you. >> caller: pretty good. i have a question about the buy you company organ ova. you think their liver drug testing -- >> we liked it a few months ago.

you got a good one. max in puerto rico. >> caller: how are you doing. >> what's happening? >> caller: i just wanted to appreciate everything you do for our little gamers. what do you think about spj? >> i think st. jude med is so good. it is not a fanfare stock. it delivers. the company came on, told a great story, goes higher. in virginia, ben. >> caller: jim, booya from the commonwealth. >> nice. i'm from pennsylvania. what's going on? >> caller: i'm looking to -- i don't know if i should get in or stay out of dofi. >> c'mon man, i think we're not going to go speculating in the bank. frank, in my home state of pennsylvania. >> caller: how about phone to

phone? >> i like phone to phone. it's a good one. let's go to paul in texas. paul. >> caller: booya, cramer. >> booya back. >> caller: what can you tell me about express estr. >> i want the company to come back on the show and explain how they can miss poorly because they are good. i'm not kidding. i don't understand it. they're just not this bad. c'mon back. let's go to chris in new york abc booya, dr. cramer. >> i always loved being a doctor. i was always afraid of taking that organic chemistry class. what's up? >> caller: what do you think about u net mmi. >> i'm not going to say no and i'm not going to say yes. let's go to ryan in illinois. >> caller: the nasdaq fell this morning and up between a 9% gain. can you comment on their

approval panel for next thursday. >> this is which one? >> caller: exact sciences. >> we liked it. and it then tanked and doubled down and leaked it again. it's moving up too hot. this is you take half off a head of when the company goes in front of the fda. let's go to jared in texas. >> caller: how are you doing, jim? >> real good. how about you? >> caller: just trying to make it. >> me, too. >> caller: i have a question on prime america, pri. >> this is one of those stocks that goes higher and higher because it's incredibly run with well management. wish they would come on the show. terrific story. perry in illinois. >> caller: jim, thanks for taking my call. how is your week going?

>> pretty good. how about you? >> caller: it's going pretty well. i got a question on serious xm with liberty media pulling their offer last week. i was wondering what you thought of that? >> you know what, i'm happy to own serious stocks. last quarter was okay and i want to stick with it. the conclusion of the lightning round. >> announcer: the lightning round is sponsored by td ameritrade. coming up, march madness can have more to do with your money than you know. find out how the tournament could impact the stocks you pick for your portfolio.

this morning i had a chance to talk with john gasway. i wanted to know the biggest mistakes people make for filling in brackets. answer, one word, emotion. whether be rooting for your alma matter or hometown team. it's the easiest way you lose. i have been rooting for

villanova for years. pencilling in harvard before i realized my emotions were ruling me and i would be a fool to do so. which brings me to the market, specially to plug power, fuel cell. these fuel cell stocks that keep having hundreds of millions of shares traded. i actually ventured to say critical words on air about them. no sooner, they come after me whatever they had. these are their stocks. how dare i criticize them? didn't i realize how much money was being made in these names? did i really think i knew them? don't hurt them, cramer, they're

mine. these powerplays are all 16 seeded teams. they have made it into one of the four brackets. but 16 seed teams don't beat number one teams. i followed this for years. watching then lose money year after year. sure fuel cells are closer to some application. just like every 16 seed has time. what bugs me is people can't see how promoting these stocks is no different from picking harvard simply because i went to school this and the team had a good season. you have to be rational to pick stocks just like in march madness. you need to be careful. there's way too much sizzle and

not enough steak. congratulate yourself that you road for hundreds of percentage points. move on. kaching. to judge it is a mistake or is it all just about the emotion of it? this is a tough one actually. i didn't like it until it reported that remark a year ago. i heard about both myself and tesla. you have caught a gigantic move since then. it's possible that as gold man sacks said perhaps the ceo is further doubling or there about awaits. i don't like betting on one man's position. which is why i never discouraged anyone to take a position in tesla. tesla is a fourth or fifth seed wild card. that's a lot of things that have to go right. that is nova in 1985. i want you to know the difference between rooting for a difference on a bet. when in doubt, think like you would when you're filling out your brackets. you would never pick 16 seed teams unless you can't reign in

your emotions. i say save your cheerleading for your home team. i'm just trying to be the stock equivalent of the espn expert gasway. john, in new york. >> caller: booya, jim. how are you doing? >> i'm real good. how about you partner. >> caller: not bad. what do you think about rite aid? >> i think they are good. they have done a real house cleaning and made their stores look better. i like rite aid. ask i go to joe in missouri. joe. >> caller: my questions is about see mens. back in january they decided to delist sometime in may in order to save money and they said only

5% of the shares traded were done by u.s. citizens and most of it was people in germany or other parts of the world. how is that going to affect my investment? >> not at all. i think you have got a real winner there. stay with it. don't worry about new york or germany. it's a winner. janet in washington. >> caller: hey, jim, you looked so cute last week on that oil rig with your hard hat? >> you liked that really. >> caller: i like to get in on a solar company. what do you think of solar city? >> i think like the other companies represent a tremendous call on a very smart guy who may have something. i have never discouraged anyone from trading or speculating solar city. i just want people to know it's not investing. investing in bracketology may

have something in common. there's a big difference between emotional rooting for a team or a cinderella story and a rationale plan. don't smoot the messenger. "mad money" is back after the break.

just last week we were down in the bayou. now in a few minutes i'm hopping on a plane and heading west to seattle to give you a sneak peek into the companies brewing innovation and beyond. see, we're keeping our road shows nice andy verse identified. that's to be sure we're giving you as much information as possible. it's your turn to get diversified. why don't we go to js under score pit stop who asks am i? jb hunt the trucking company. all right. this is very interesting. jb hunt is transport. craft is food. wells fargo is bank. you know what? j whatever. pit stop, you don't need to make

a pit stop. you're winning. i'm going to jim in north carolina. jim. >> caller: this is jim from north carolina with a booya to you. >> i'm giving you a booya right back at you. >> caller: i got wells fargo. i got johnson and johnson. i got ge. verizon. and mmm. jim, am i diversified? >> wells fargo great bank. j and j the drug company and 3 m a big industrial company. steven. >> caller: a big sunny today chicago to you. >> a black hawk player for you.

>> caller: i hope you come to chicago sometime to sign my "get rich carefully" book. my stocks are apple, costco, lows, morgan stanley and wells fargo. >> interesting. the love for wells fargo continues no doubt inspired by warren buffet. we have got apple which is a tech company. costco is a retailer.

morgan stanley is financial. lows and costco, two fine retailers but we can't have that. what is our de facto default play when we see these two? of course, it's bristol meyers. we continue -- oh, no! that is the end of our special tuesday edition of wednesday's am i diversified. stay with cramer. [ male announcer ] how can power consumption in china,

impact wool exports from new zealand, textile production in spain, and the use of medical technology in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing.

i can't believe i get to sit down with nordstrom, one of my favorite places to shop. then the annual meeting of starbucks and howard schultz. i am told this annual meeting of

starbucks is starting to rival -- a bit of a hyperbole -- what warren bust has got going. i cannot wait to get out there. that stock has been on a tier of late. starbucks, seattle, nordstroms. i promise to find it just for you on "mad money." i'm jim cramer and i will see you tomorrow. welcome to "worldwide exchange." i'm julia chatterley. these are your headlines from around the world. the fed could scrap its unemployment threshold as janet yellen prepares to wrap up its two-day meeting. we could see a rate hike this year. china's central bank tells cnbc it's not an emergency talk to bail out a struggling property developer amid hundreds of millions of solid debt. oracle shares drop in