i would keep a lot of powder dry. >> i'm going with regis is the man. my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to make you money. my job is not just to entertain but educate and teach. so call or tweet me @jimcramer. when in doubt, it's bad. that's been the tone since the

generational bottom in 2009. dow closed down 32 points. s&p finishing up barely up 11%. nasdaq declining. pretty weak over there. this negative bias has been at the root of much of what's actually been going right lately. this market and it's detractors understand one part of the equation about the way business and life works. prepare for the worst. but the other part, hope for the best often seems totally left out. let's go through some examples so you know exactly what i mean. today interest rates fell and fell dramatically. initially we have been hearing some nonsense that somehow lower rates mean business has cooled in this country but the recent data away from rates involving durable goods, auto, industrial production and electrical power generation, just way too strong for anyone rigorous to conclude that rates are declining because

the economy is slowing. plus the endless rally in the transports totally puts a lot of people that have been using bonds for the economy. still most prepare for the worst selling down many of the commodity companies that do poorly in a slower economy. but did we bother to hope for the best? who had that plan? for example, they reported this morning, grey house and company, great numbers, positive outlook. why not? lower rates mean more houses sold. more houses sold means more inventory taken off the market. more inventory taken off the market means more new homes need to be built and that's great for the future earnings of toll brothers. so it should go higher as it did. yet the darn thing is down almost 2% for the year. that's preparing for the worst to me. toll made a ton of money in this quarter. can you imagine just for a moment how much it can make if housing really comes back online. something the ceo of home depot

insists may be happening right now. he ought to know given that book of business. how about the banks? they're supposed to help banks as if their net interest margin can grow. we've heard that over and over again. they take your deposits. but wait a second, for years, we also cared about how much business could be done with that capital. you could make money by sitting on the deposits or you can make money by making loans. back in 1990 when the banks bottomed after the savings loan crisis it came from a differential that at that point was encouraged by the fed but then business took off in this country. lending took off. it became the moment for the banks. things happen for the best. it can happen again. or consider what makes the bonds go up in price and therefore down in yield. now we can ring our hands about what it means for the economy. let's look at it this way. for years and years we heard about how the stock market will

be destroyed when the fed starts selling off it's bond holdings and ends that bond buying program because rates would then soar. rates soar, stocks crash. come on man, that was the common guess pel except for in cramerica. it would be terrific if they were to unload some of the bonds. you don't hear that much about that view because it was the ideals always attacking the fed and now they have gone silent. but the fed, the fed can sell all the bonds it wants right here. while we may not have much appetite for our country's bonds at these levels, the big institutions in europe, especially spain, italy and france, they love to buy our country's paper. paper being synonymous with bonds because many of theirs are much more risky than ours. that's a total feel good oddity. a hope for the best that isn't hoped for among most people here. we may fear lower interest rates

here. ridiculous as that is but when we see them over there we get optimistic that sales could turn around so. is many we profile in this show. all the autos. they could really zoom if things finally turn in europe. when these scare mongers, okay, let's identify them as scare mongers weren't operating on the assumption that the feds unwind policies would destroy the stock market, they were busy complaining that the budget deficit was going to wreck the economic. i say what budget deficit? you mean the incredible shrunking budget deficit where the president gets no credit for ending the war started by his predecessor. that's something that he talked about where he said wars were unfunded and broke the bank for the government. why isn't that hope for the best theory that came true ever reflected? people are aparade to mention it. or what about the notion that the high flying momentum stocks

would bring down the whole market like in 2000. how many times were we told we needed to prepare for the worst when the momentum stocks bled over to the rest of the s&p 500? no matter that i told you over and over again how in 2000 it was very easy to get that spill over thing going even as the nontechs performed wonderfully back then. what do you do if you had bet against the whole market based on the weakness in the high flyers? i think the hope for the minority is getting the best of the negatives at this moment. we could see a bout of real short covering coming. we prepared for the worst with that flood of ipos that did bring down the market but don't we now have to plan for the best given that the ipo glut has ended and new ipos are working again? that's what happened with jd.com. the money losing chinese

internet company that went to a premium immediately after becoming public and has continued to advance. you see that today? the advance in jd allows for so many other stocks of money losing firms to u-turn and go higher which is precisely what happened. finally we hear about how higher gasoline prices could hurt the economy. hurt the consumer. i'm a huge believer that lower oil is a good thing. but what you may not realize is there's two oil prices in this country. there's the price we pay at the pump and then there's the price industrial companies pay. consider it the wholesale price, particularly with natural gas and that's causing an amazing renaissance in all sorts of manufacturing as they can get the energy on the cheap because they're build wing where the gls are. always one eye toward what can go wrong. what might hurt us. what could cause a seep decline

in stocks. skepticism is always necessary for good investing. lots of times for example i'll post a critical piece at jim cramer on twitter that's oppositional to my own views. i always like to know and present the bear case. makes me a better investor. i totally get the need to question if not check the euphoria at the door. most of you know my mantra by heart. bulls make money, bears make money, hogs get slaughtered. no wurn ever got hurt by taking a profit. but the cynicism that doesn't make you ponder what happens if things actually go right has been a huge detriment to those of you seeking to profit from the gains that this market gives you. so here's my bot to line. by all means prepare for the next correction. but also get that game plan going that allows you to profit rather than just stand by slack jawed when things do workout. believe me, the averages didn't get to all time highs because the worst occurred.

we got there because of profits and a return to prosperity even as so few people are willing to admit that occasionally things do, indeed, happen for the best. walter in georgia, walter. >> booyah, jim. >> booyah, walter. >> caller: how do you feel about ford? >> ford is fine. they're starting to say good things about europe. i like mark fields. i think ford goes higher. as a matter of fact i think ford is in a terrific position for the second half of 2014. all right. listen to me. there's nothing wrong with a little dose of healthy skepticism. important. but watch out because cynicism can turn corrosive. prepare for the next correction but make sure you have a game plan ready for good times too. stick around. i'm taking a look at a chart signaling a crude move ahead. barbecue, beer, and bikinis sell

like hot cakes in the summer but the best way to invest in the warm weather might be hanging over your head right now and an exclusive with an iconic american company you're not going to want miss. it's all ahead. >> don't miss a second of mad money. follow @jimcramer at twitter. have a question, tweet cramer, #madtweets. send an e-mail to madmoney@cnbc.com. or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. 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

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those oils, they have been on fire lately. in part because the price of crude here in the united states, the west texas intermediate crude benchmark has been hanging in there. over $100 barrel. right now it's at 103. but if the strength in oil prices were to suddenly evaporate, that would be bad news for the oils. even the independent players operating the domestic shell place you know i favor. pioneer natural resources among

many others. tonight we're breaking form here. we're doing a special wednesday addition of off the charts. we're getting a better sense of where oil might be headed with a help of a rest of the week technician that's the cofounder and author of a trader's first book on commodities. also my colleague at realmoney.com and somebody that's gotten the price of oil right. you see, garner believes this is not going to be the summer of love for oil prices. if anything, she thinks it's a good chance it could turn into the summer of hate. one of the reasons i wanted to do this is because the transports have been rallying so strongly i'm trying to figure out why. maybe this is it. now before we get into why garner is concerned about the price of crude going forward, let's take a moment to establish these that you need to know about. at the end of last july when west texas crude was trading in line with where it was now, while the price of oil might bounce as high as 1 to 10, it could be possibly seeking to the low 90s.

sure enough, west texas crude surges up to 110 where it peaks but after that a house of pain seeking to $92. many people thought it was going to really break down there but she knew it wasn't. so when garner says to be cautious about crude we need to take her seriously until a correction occurs. the price of oil has been artificially popped up by overgrown fears about the current violence in libya and the russian ukraine mess which someone of the many reasons she thinks crude will come down from these levels. we're not hearing about escalating of tensions in the last couple of days. let's go through her argument point by point. first take a look at the weekly chart of west texas intermediate crude futures. now the key here is not the action in the oil price. you're looking at the wrong line. it's the lines down at the bottom which come from the commodity future's trading exchanges weekly commitment of traders report. they all call it the cot.

okay. this report is an incredible resource. one where the cftc tracks the net holdings of three different types of traders. the large speculators who like to bet on commodities. small speculators, the little guys, and then the commercial speculators which are real companies that own oil futures for the purpose of hedging. we all know that this happens. we have a lot of the guys that have an average price for oil that's a mixture of what they do. and when garner looks at the numbers for speculators here, she is appalled. according to the latest commitment of trader support, the large speculator group has amassed an astounding, an astounding holding in excess of 410,000 net long contracts. small speculators are net long. garner says this is the largest net long position speculators

have ever had. holy cow. ever. in the oil futures or at least the largest since they started measuring these things. why is that worrisome? because when you have too many bulls that can ruin an investment. this is true for any asset class you might care to name. at a certain point when people get too bullish you run out of new buyers because everyone that was going to buy has already bought. everyone is already in the pool. you need some bears out there always. remember that i talk about for any rally to sustain itself. if only so that these bears can change their minds, go long pushing prices higher. but he sees bulls everywhere. let's put this in perspective. last july when crude was heading for the low 90s at that point they were net long 360,000 futures contracts very overcrowded. not nearly as overcrowded as we are now with this large 410,000 position. historically garner says that

200,000 has been considered a pretty high figure. now we're twice these levels. hence why i'm doing these reports tonight. when they get too sbexuberant t price of oil is collective. it is not uncommon to see the price of oil drop by, are you ready, 20 or even $25 per barrel once these money managers get spooked and all run for the exits at the same time. now it's possible these large speck you lay tors know something the rest of us don't but garner thinks there's a much more likely explanation for the behavior. in short, they're band wagon traders. think about football. jumping on whatever commodity seems strongest. many of the funds that trade commodities are loan only operations. they're only allowed to bet on things going higher. they can't take the equivalent of a short position and bet on something going, why does that matter. because right now there's not many commodities a loan only

fund would be interested in. most of them are doing so poorly you would never trade them off momentum. so oils probably looking like the only gail in town at the moment. but the moment crude starts getting weaker, many of the funds that jumped on the band wagon will head for the exits. this is according to garner. garner does see it heading lower. take a look at the chart of the west texas crude. garner is prepared to admit that the rally in oil might not yet be over but there's a number of listens she thinks it could end fairly soon. first of all, there's resistance at $108 which is where she believes oil could peak unless we get a flair up in the middle east which could send the price of crude up to its next silly resistance, but if oil gets up to those levels, garner would start betting against it aggressively. she uses the rsi down at this bottom to measure whether a market is overbought or oversold. at the moment oil isn't

overbought. it hasn't come up too far, too fast but if it rallies from here it will reach the overbought state. once it begins to pull back, garner believes it could be in real trouble. considering the high level of bullishness in the group she thinks we could soon see the buying dry up because there's no one left to do any purchasing. we could see a vacuum-type sell off pushing oil prices down to the mid 90s. possibly lower. let me give you the bottom line here. oil could rally another four points from here but after that, she thinks there's so many bullish hedge funds betting on oil there's almost no one left to buy on quantity. the largest net long position by speculators ever, they're a huge amount of money managers who can sell and if they all liquidate at the same time that could send oil much lower. me, have to tell you, i'm a little different. the strong underlying demand for

oil, given china that's coming back online but i heed the charts and recognize the need to be skeptical of my own view in what has been a very one way trade for perhaps way too long. can we go to ruth in new york. ruth. >> caller: hey. i have always been there but i'm hoping to become a booyah winner with you. what do you think about halliburton? >> i've been a gigantic believer and everyone knows this. because when i go on the road i have the president of the western hemisphere of halliburton. the stock is very cheap. i like king hal. a little shakespeare reference there. let's go to robert in new york. robert. >> caller: hey, jim, booyah. >> booyah, robert. >> caller: i just want to thank you for all the great things you guys are teaching us over there

at "mad money". >> thank you. >> caller: i'd like to know what you think about it. >> it's trying to make a stand here. i have not been a big believer in petrobras. i believe that the brazilian government is a little over it's head. i can't even read the articles they're so negative but i do believe they do have great prospects. i do understand why someone would like to be in it. okay, there is such a thing as too many bulls. they can ruin an investment and garner thinks they're slowly but surely sending oil lower. but before they do, they could rally another two points. if you want to check the pulse of this economy, you know what you immediate to do? sit down with a railroad. and that's exactly what's coming up. >> coming up, transports. whether it's air, ground, or rail, they move our economy. strength has pushed many of these stocks to all time highs but will a new $500 million

investment position union pacific at the front of the pack? cramer gets the exclusive with the ceo and it's new intermodal terminal. come with me, his wife said. big job, big city, big new country. how can i move to a city, he said. i'm a country boy. let me see what i can do, she said. so she opened a bank account, sent money, rented an apartment. and found him a little bit of country.

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you want to take the pulse of this economy then the best way to do that is by looking at the transports because as i told you last night, in order to have any kind of commerce, you need to move things from one place to

another and within the transports, i like to think of the railroads as the investable veins and arteries of capitalism. in the u.s. the rails are kind of slap happy, we can't get enough of them on mad money. four major railroads dominating the market. but it's really two in the west and two in the east. and the only western railroad still publicly traded is union pacific. that's up 17% year to date. currently lez than a point off it's year time high. all the rail versus been doing well lately and the transport versus caught fire here but union pacific has outperformed pretty much everybody. company reported a strong quarter in mid april with volumes up 5% and they'll be able to keep raising prices too which is how earnings go up for rail. let's check in with jack who is the chairman and ceo of union pacific who is on location of the company's new facility. welcome back to "mad money". >> hey jim, how are you?

>> real good jack. thank you for coming on. you are standing in front of a facility which you say provides customers a freight transportation advantage as they compete in the domestic and global marketplaces. what is the advantage of the santa teresa intermodal ramp? >> it's a green field site built where there's plenty of land to expand. it's an eastern gateway to the ocean carriers bringing their freight to the west coast cutting to the eastern united states. that's an important throughput for our customers and similarly as those containers return back to the west coast for shipment to china and elsewhere around the world it's there as well. the other piece that's important about santa teresa and it's kilo kags here on the u.s. mexico border. if you think about that business moving back and forth and tra

transport between our countries, it's ideal. >> a lot of our viewers don't know rails the way they should, it may just help to talk about what intermodal traffic replaces and why it is better environmental and why it is cheaper. >> sure. if you think about intermodal what we're really going after is taking highways off the -- or taking trucks off the highway and bringing it on to the railroad. so if you look at one intermodal train for instance, we can put 280 trucks on one intermodal train. we can do that efficiently and effectively. trains are four times more fuel efficient. if a truck were to match our fuel efficiency, you'd have to have a cadillac escalade that would move 250 miles to a gallon of gasoline. so we're fuel efficient. we're environmentally friendly and it's moving on infrastructure that's funded by private investment and not taxpayer dollars. >> let's talk about that. a lot of people feel that the economy really can't get moving without the federal government. you have created 3,000 jobs during construction. clearly this is not done out of

the goodness of union pacific's heart. there's real business to be done out there, right? >> there's real business here and it's the future of our company and, in fact, jim, customer reacceseptivity tells we're probably going to beat our expectation for first year performance for the number of containers that pass through the facility. >> now, there's a number of parts of your business that i know are not necessarily connected to santa teresa but they're very important for you and i look at 2014 volume growth. let's start with agriculture. it seems like agriculture double digit grower this year. why is that? >> you know, we had a terrific harvest in 2013 following the drought of 2012. so that harvest now needs to get to markets. whether it's domestic or whether it's to international, we're pretty well suited to handle that business. we have the equipment, we have people, we have cars and we have access to all the places where it needs to go. so we're expecting that that

agricultural business is going to be strong all the way through mid to late summer. then we have our fingers crossed that the 2014 crop will be another goodyear for us. >> you also have kind of surprising versus what people may read in the papers, a pretty descent coal business this year. coal is shipped by rail and not going away and the inventories got low because of the weather. this has been a descent coal quarter for you, hasn't it? >> it's been a great quarter for us. there's still a very low stock pile situation coming into the summer burn season. so we think we're going to continue to see strong coal carloadings certainly through summer and hopefully through the rest of the year. the latest information that we had said that inventories were somewhere around maybe 20 days below normal for this time of the year going into the summer burn. natural gas prices in that 450 to 475 range says that generation favors coal and right now coal is producing about 40%

of the electricity generated in the united states. so all the market indications for us looks pretty good. >> people also have to understand that while this union pacific facility behind you doesn't necessarily involve shipping oil, much of union pacific's new network is able to ship fracking sand which is really how we can get all of this oil and gas out of the ground now. >> absolutely. so you hit it exactly. for union pacific, our play in the business is more frack centered. 55% of our related revenue came from frac sand. so for us, particularly coming out of wisconsin, minnesota and illinois is really a big play for us and the good thing about it, it unt make any difference where the oil or gas is drilled. it doesn't make any difference whether it is oil or gas and it doesn't make any difference

whether it's going to be shipped by rail or shipped by pipeline. the sand is still absolutely critical to getting the product out. >> one last question, i don't have many ceos have as much of a pulse of what's going on in the u.s. economy as you do. i always trusted your judgment more than the government figures themselves. how do you feel about the state of the country as an exporter and importer and as a creator of jobs? >> jim, we're in a really good period here. we have nice, slow, consistent growth. we're seeing it in the housing market and in construction. things like cement, stone, sand, gravel. we're starting to see the steel business start to pick up a bit. so i hi overall the economic trajectory is headed in the right direction. that's a good thing for us. i had a lot of people say it's not very strong but the nice, slow, steady growth, union pacific can do well in that environment and the country can as well. you're not going to create a

bubble to burst down at future. >> i always go to real business people in order to find out what's really going on. you're a real business person. thank you so much. the chairman and ceo of union pacific. good to see you, sir. you see why i get optimistic? do you see why i think people should prepare for the worst but hope for the best? what they're doing in new mexico with union pacific. stay with that stock. say stay with cramer. ♪

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right now if your an investor that wants income and yield, then dividend paying stocks are pretty much the only game in town. with the u.s. treasuries falling below .5% today, this is a good moment to focus on is it stocks that represent solid fixed

income. it serves 5.3 million customers. 11 states. ap sports, a terrific save, 3.7% yields at this letter which is much higher than the treasury bonds and without factoring in dividend income. ap consistently outperformed the index. on april 25th they reported $1.15 a share. thanks to the strength of their power generation business and the stock has given us a quick 10% return since we last spoke at the end of january. let's look at the president and ceo and find out what's next for his company. welcome back to mad money. good to see you. >> great to see you. >> have a seat. thank you so much. you have been giving us a consistent return. at the same time we know, u.s. industry gears up to fight obama's climate rules. i'm ready about the possibility the changes the epa wants

coupled with the fact that your company and others said this could cost a huge number of jobs. where are we on this fight and what do we have to worry about perhaps if anything about the dividend? >> we made a clear case about what effect it could have in the future after the mercury rules, it was clear that there was a lot more retired than what was originally anticipated. so we have done a lot already from a green house gasper speck tif. aep alone, 2005 numbers 21% reduction so far. 28% by the end of next year when we retire. about 25% of the coal fleet in this country. so we're making considerable progress. we also talked about reliability of the grid. >> right. >> when you retire this much generation you have to be able to put transmission solution in place and infrastructure development to make sure we operate in a credible fashion. >> the biggest power polluter is ap but these articles all say the same thing to me. they don't talk about how you

got in this situation. you have public utility commissioners that wanted coal. you had a president that favored coal and told you to build long-term plants. it's not like the goal posts stayed in the same place all along. >> right. natural gas wasn't even prevalent in the midwest and now it s.coal was the only resource that was available other than nuclear. but coal has been predominant in that part of the country. >> you spent a lot of money making it as clean as you can get it. >> exactly. we tried to remove it and then as well we reduced green house gases by conversion of natural gas and other resource. >> at the same time, you run a business that has to be -- as you said is, it has to work. you had a polar vortex in this country and it turns out that not only did it work but you were actually able on a

competitive basis to make a lot of money for shareholders that we didn't think could happen. >> absolutely. we were very fortunate dug the polar vortex. so it was an opportunity for us to get ahead and in so doing at the end of the quarter as you mentioned before we confirmed the 4 to 6% earnings growth recontinue to invest an additional 200 million in our transmission effort and then we also moved 60 million of operation and maints expense from 15 and 16 into 14 and then we also raised guidance. so it was an opportunity for us to focus on that. we're also seeing, we saw about a 3% increase in the load itself. so the economy, the weather adjusted load seemed to improve dramatically and that's been confirmed even in april. >> right. now one of the things i really loved about this last quarter. i'm just quoting from it, ap is fortunate enough to have a number of major regions located within our service territory and

you know where your territory is but that part of the economy is the strongest part in this country, isn't it? >> absolutely. as a matter of fact in the counts of our service territories from texas up through the midwest, the industrial component grew at over 30%. so a dramatic increase. we're also seeing chemical manufacturing as an outgrowth of that continue to improve as well. that's what is driving the growth. >> in the many years we have been speaking to each other, we both had a hope that one day the natural gas and energy renaissance would actually lead to jobs. >> right. >> it took awhile but it shaping now. >> there's no doubt it is happening. as a matter of fact, we questioned during the polar vortex if our weather adjusted normalization factors actually work. it showed about a 3.4% increase. in fact, through april, it's showing a 2.5% increase. so we're seeing that growth. there's no question about it. >> one last question, we know that the factories get built. are we starting to see the residential, both apartment and housing that you thought would have happen first degree you

really saw jobs coming down? >> yes, housing is on the up tick. as a matter of fact for the first time we feel like we're getting an inflection point where customer accounts are improving. 20-year-olds are fiemly moving out of the house. >> you've been a great story and able to bridge things. people will be a little bit more sensitive to why a company actually is a big coal burner. it wasn't something that they necessarily might wouldn't have done but they sure had to do it. president wanted it. country wanted it. maybe we ought to think about how quickly we want to make this go away. he is the president and ceo of american electric power. stay with cramer. >> coming up, whether it's the crowd or the clothing rack, wall street turned cold on some of the market's highest growth names. but as the summer heats up, will these same beaten down stocks thaw out? cramer is eyeing two stocks that could hold the key.

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all right. before we get to the lightning round, i got an announcement so listen up. gather the kids around. father's day is in a few weeks

which mean's "mad money"'s family affair show is just around the corner. so if you believe that the family that invests together stays together, then log on to mad money.cnbc.com to get tickets for you and your family so you can bah b part of our studio audience on june 13th. this show always books up immediately so run don't walk. now is the time for the lightning round. what is that about? you hear this sound and then the lightning round is over. are you ready? time for the lightning round. why don't we start with clint many texas. clint. >> hey, jim. i wanted to ask you about an awesome company. it's been an interesting start up place for wholefoods. i want to ask you about another awesome company. >> interesting concept. i'll a little cool right now on the restaurants. why is that?

because i own that and my raw costs are through the roof and there is an guacpocolypse on the horizon. derrick in washington. >> caller: how are you doing today jim? >> terrific. how about you. >> caller: i'm calling on nwbo. it's a biotherapudic company. >> i want to buy sgen. eric in florida. >> how are you man? >> how are you? >> caller: i'm good. my question tonight is about tata motors. >> i don't think it's too late to recommend this stock. chad. >> caller: booyah mr. cramer. >> right back. >> caller: jim i'd like to hear your thoughts. >> i'm saying no good.

i like first solar which is down very big from its high and is very inexpensive on a priced earning. larry in new york. larry. >> caller: hey, jim. a big apple booyah to you. >> i like that. what's up. >> caller: isn't this cyber security solutions required due to the increasing global hacking especially in the cloud making it a buy at this price. >> i think it's a good company and the stock spent it's time in the wilderness but i'd rather pay up 7 for palo alto networks. let's go to ryan in indiana. >> caller: booyah, jim. >> booyah. >> caller: abercrombie has 106,000 stores in total. also last quarter 25% of sales came from the internet. so will national sales from

remaining 843 -- >> why do we need to own it? why do we take that beating? why cause self-inflicting pain? how about william sonoma? matt in georgia. >> caller: southern booyah from atlanta. >> liking that. what's up? >> caller: i have a question about verifone. >> i would like to combine that with a mobile payment system and that stock would be a huge winner. and that, ladies and gentlemen, is the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade. ♪

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a house divided still stands just not as sturdy as it used to be. i'm speaking of the state of momentum investing right now and how the market wants to stick with stocks valued reasonably based on earnings per share. that's the lesson of michael

kors the handbag and accessories company and workday. the software and service provider for all things human resources. this morning when kors reported the stock flew higher because the sales were so strong. but a company that sells with 30 times earning with a spectacular growth rate. 26% gain in same sore sales will be put under a microscope when it reports and this time they seized on an up tick in inventory. one flagged ahead of time in exhent reality report for the street.com. i want want to believe it at first because retail is so turf that any merchandiser putting up these numbers should be rewarded. however, inventory up stick reverses in the open. it did manage to rebound but nowhere near as strong as it was earlier in the day. workday was exactly similar.

the fantastic fast growing software company won huge accounts this quarter. netflix. the growth here was an awesome 74% but the company still reported break even operating cash flow instead of a number that would warm the hearts of those that wanted big gains in earnings down the road as well as rapid revenue growth. you can see the ebb and flow in a given session as those that want to play the rebounds take profits and those that don't mind losses keep paying up for the company's sales. the stock opened up $4 and quickly gave up the gains and then some before rebounding and closing up $1.91. i always said that a battleground is no place to play it and both of these companies are now in battleground mode. they're subject to differences in interpretation. greenberg asks if it could mean gross margins down the road.

i worry that the buyers will say, i'm not going back to the world where sellers overwhelm buyers because there's so many new so software and service companies about to go public. kors decimated the competition. coach is nowhere. any retailer loads the boat with kors but that's difficult to maintain. stock is near an all time high, cause for concern. as it dismissed the notion of oracle coming on strong, you have to wonder if either software titan will allow workday to do, basically becoming the platform of choice for the companies. when they decide to cheese workday, won't it impact them? how much longer can the bankers keep the venture capitalists at bay who are itching to unload their privately held companies as a service company. it's on to the public markets.

so each company is subject tie cross fire of sellers and that means the gains are tough from here. particularly in an atmosphere where in the case of kors retail is chaotic at best and in case of workday they must be thinking about how to protect their turf better. i think the days when momentum investors can power up their stocks with their own buying have passed. the fact that 3d system can destroy it's own stock with a secondary offering say brutal reminder that supply is the enemy of higher prices. i think supply lurks quitely underneath in kors and workday. i think it's better to be safe and a seller than sorry and a buyer. stick with cramer.

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[ male announcer ] prilosec otc is the number one doctor recommended frequent heartburn medicine for 8 straight years. one pill each morning. 24 hours. zero heartburn. all right. so am finally does the deal, 3 billion for beats. i feel there were other things they should have bought. i wanted them to buy netflix. i felt you could own the car. what do they own now? they own headphones. okay, now the market today, closed not so hot. i like to be able to think this could be one of those moments

where we consolidate and don't go down because it is near the end of the month. you know i expect mark up buying for the end of the first half. that's been some what typical. there's always a bull market >> narrator: in this episode of "american greed: the fugitives," a brazen cyber-crime ring rewrites the rules of bank robbery. >> they know your password, they know your user i.d., and they're on your computer. >> narrator: they hack into companies' bank accounts, then use college students as mules to move the money out of the country. >> you can call it by a lot of different names, but this is organized crime. >> narrator: and when investigators begin to move in, one alleged schemer is believed to take the scam elsewhere. >> he fled along with two other female mules, and he went straight to las vegas. >> narrator: and later... in rural oregon, a self-professed financial wizard wows customers with his