re talking about 100 times ebidta this year 75 times next year or 50 times '017. i think a lot of perfection's in here. >> thanks to bob peck and chris roland. i'm melissa lee. see you tomorrow at >> 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 friend, i'm just trying to save you a little money. my job is not just to entertain you, but to teach you and educate you, so call me at 800-743-cnbc or tweet me me @jimcramer. this market we know it's had a huge run. we've seen the dow jones industrial average almost triple since the bottom six years ago. people have made fortunes on the

individual stocks time and time again from my deus that aren't reflected in the broader averages lurk everywhere you look. sure, you couldn't see it maybe today and the smoke declined three points and the s&p slipping .7% and the nasdaq slipping .02% but with creativity and smarts they kl relatively easy to find. i often say good ideas are often right in front of our faces and on the dinner table and the mall which means the gains are there to be had as long as you're actually looking at them. eyes open. today i heard a raft of these stories. actually, way too many to detail on the show at the delivering alpha conference thrown by cnbc and institutional investor. let me give you the ones that i got to delve into firsthand so you can understand the ease with which these ideas indeed can be found because they are everywhere but there was a plethora of them out there today. for instance take these shoes,

okay? take them why not? honestly, i didn't shine them and i didn't get a chance to take them off, and i bought them at macy's. now i look at stocks in a particular way, and like goldman sachs. first i start with the top down do i want to own a retail and environment where there's decent job growth in the country and do i want to buy one when oil is coming down bringing more purchasing power to the consumer. do i want to keep things domestic so i don't get hurt by the super freakin' strong dollar. ♪ ♪ >> that seems to grow stronger every day including, yes, today. the answers to every single one of those is a resounding yes. keep it local. gasoline may be going back to $2. employment for july seems solid and what's not to like? here's where it gets tough. which retailer? all right. let's see, my classical works says i want to keep buying one beating the estimates and raising guidance and that means

i'm joined to target with the re-energized organization spurred by the change at the top with the employment of brian cornell, a ceo. if you google the term hard charging, i think his name comes up or maybe it's #hardcharging. you get the picture. others say wait a second. i went to home depot because when employment is robust and people have more disposable income then people want to invest in their homes which means you go to home depot and you buy the shares of home depot. right now i'm staring at my not so great-looking black wingtips. doing a little rick james there and kicking myself because -- because macy's where i bought the pair was 8% today because a real smart guy, david faber and i and jeff smith of starboard value presented another way, totally different from my way to judge macy's. see, instead of looking at the

earnings per share in the estimates, my way and reacting to those something that would have made you studiously avoid macy's because by its own reckoning it's been putting up disappointing numbers, smith looked at macy's as a real estate play and he suggested that the company itself might be a menable to doing so too. if management takes smith's advice they listen to him. he says the $72 stock could be worth $125. how the heck does he get that number? because he's not looking at the business as it is. he's looking at the more valuable real estate underneath it and thinking what would happen if macy's decided to monetize that real estate sell it to another entity and another party and paying rent to that party because the physical locations are being undervalued, plus he used their credit card business as a real gem and i don't blame them the first credit card i ever had and he's thinking macy's as a collection

of assets and not as a department store chain and his musings popped the stock big time. who is this jeff smith to suggest this? well, he's the guy who challenged the board of darden parent of olive garden and urged it to look at business the same way he said look at macy's and that's when the stock was at $53, but the shareholders voted to replace the whole board of directors with starboard's people and it subsequently went to $71. i bet that fact's not lost on the people running macy's. i challenge them saying i think terry lundgren and the ceo and his team would never go for the brand because any plan to monetize real estate might not be all that easy to implement and probably too simplistic. macy's too much debt and went bankrupt. smith came right back at me. i like that and he stress tested macy's and came up bases. plus all that's happened since then is the real estate underneath like the flagship

herald square store or the store in san francisco it's risen dramatically in value and there's no denying either point and management is much more aware of the positive possibilities here that i may realize. i had one thought when he said it and sometimes a sound is more important than words. now macy's has missed a few quarter and he the next one. that was it today and analysts will most likely pooh-pooh the rally and they're not believers. i looked at the research but i doubt at today's conference that i'll ever think of macy's the same way like i did yesterday and it's not just a place where i bought these shoes and the collection of assets that might be worth much more than where the stock's currently trading. we've had the ceo of ethan allen interior on the show and he said this time the public will want to buy his mostly made in america furniture because of the styling, the quality, the brand!

but you know what he's never said? that maybe you should think to buy a stock because of the quality of the real estate he owns, the stores. yet that's exactly how activist tom sandel said ethan allen should be looked at especially since the underperforming stock could produce a much more return, close to superfluous ones. i look at ethan allen as highly stylized bedroom and kitchen and furniture store. he looks at it as a place where the brick, mortar and land are worth more than the sales and he added that plenty of other people feel that way, too. oh i like that. in other words something could happen like a buyout bid to turn the sleepy furniture stock into an instant win if you view it the way sandell does and it will be promotional and that's code for meaning, wow! it may not be that good and he's switching around the inventory and that means there's earnings

risk and that's how i look at it. pedestrian. call me pedestrian, i don't mind. that's why i think the stock can slink back down from its height of today, but the ethan allen end tables next to my bed never going to look at them the same way either. why not mcdonald's? last friday night, i sent a picture on jim cramer. mainly i've been part of the effort to fix my mcdonald's on twitter. people send pictures of the dirty mcdonald's locations and talk about how they want them clean like they used to be like when my mom and dad went there with me or when i took my kids and the man who helped turn around wendy's and the very smart bill ackman who built back an amazingly quick turn competitor burger king much more difficult to turn around operations in mcdonald's. >> they say this is infinitely fixable and could be much more than what it's selling for although it might turn around. don't forget they have the

battle of 3.4% yield and you know what? after this morning, count me back at mickey ds although it's not a place that's clean enough yet. >> you can value macy's and mcdonald's, with expectations and you'll be disappointed or you can view them through the lens i saw today and the same exact disappointments suddenly look very exciting especially after they pulled back from the hoopla of these very compelling presentations. tony in california. tony? >> boo-yah, jim. this is tony in westlake village, california. how are you doing? >> i couldn't be better. how about you there, sir? >> it's one of those perfect southern california days here. hey, jim, in view of the iran treaty there will likely be some more oil floating around the planet and i wanted to ask you if it was a couple of tanker stocks i've been watching and it's maritime partners and tnk.

>> the one that i've become a believer in lately nat, and now it's n-a-t- please don't do equity and i'll offer to buy more ships, but that would be the one to play. i need robert in california right now. robert! >> hey, jim, i'm a long time ballpark shareholder and i'm concerned about their same-store sales growth and the policy of rotating their category buyers every year which means by the time a buyer starts to lose the key brands they get transferred some place else. there is no sign this is going to change so i'm ready to sell my position. >> i don't want you to do that. now, look everything you said is true and that is demonstrable, but give me this i think walmart which i don't expect a quick turnaround because the ceo doesn't expect it to turn around. i think walmart at $73 you will regret.

oh, sure $70 maybe it retouches that, but i don't want you selling that stock down here. it is too low to go. all right. it's all about how you approach it macy's ethan allen, mcdonald's, they could be huge disappointments or golden opportunities for other way to view them? you know what? maybe the latter is right. "mad money" tonight, don't say i didn't it will you so but is there another biotech for the picking? don't miss my take and then does your portfolio need wheaties, cheerios or lucky charms? i have trix or should you leave general mills on the shelf in this natural and organic world. plus bill ackman is making a big bet the stock and i'll find out when i talk to the ceo of platform specialty products. stick with cramer! ♪ ♪ don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer.

#madtweets. send jim an email to madmoney.cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com.

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celgene announcing a deal to acquire it for $2 million. i will say my colleague here has mentioned many times since potential takeover fodder. receptos has been one of my favorite stocks all year. >> it's done. >> it is not done. >> the stock has quadrupled in 2014. you know what though? it's not done. >> there's one biotech i like very much and that's receptos why not? if you own receptos i say hang on as this is one of those where there's smoke there's fire situations i can ever recall in my career. ♪ hallelujah ♪ ♪ >> someone was listening. >> last night celgene paid $232

per share for receptos and we should all give a collective thanks for celgene, not me. i got at jim cramer on twitter today. the people who should really thank celgene's management, how about celgene's shareholders because one of the most bankable executives in the world and the big pharma apocalypse with biogen and gilead recognized that his own company's stock would soar if he snared receptos for $7.3 billion. it's not often that a shells out that much money and sees it go up almost as much as the target. what drove you and me to receptos? the stock that traded at $35 one year ago this week? we're a pipeline of drugs within one formulation and the indication is the best possible in-class get this m.s. irritable bowel, you willer is tiff colitis and a whole host of auto immune abnormalities.

even though the company is doing extraordinarily well manage am raised numbers along with its announcement of the receptos deal is too department end on one drug for blood cancer and any company that's vulnerable -- it is a perfect fit to cure that ailment, hence the gain. i remember when we first came across receptos. these stocks are very speculative. i think a small portion of your portfolio has earned the right to be speculative and only if you bought the index funds first to more conservative e quites and mutual funds. we interviewed receptos' ceo and i was dumbfounded that this drug could be that much of a potential blockbuster with what i thought was $6 billion in sales for one drug. i urged him to come back on when he had more information that showed me still stronger results so he came back not once not

twice, not thrice but four times this year to give us a look at how amazing this could be. sure enough celgene said it could be worth more than the $6 billion that i gave you. i trust their homework more than mine. the next big idea and the more receptos-size gains. these don't grow on trees and it's gotten extended here and i prefer for them to cool you hava before i start talking about them again, and nevertheless, there will be more deals because there are companies like johnson & johnson or gilead that are in the market for a bigger and stronger pipeline and it's grown on the hepatitis c cure and it's bountiful profits into the diversifying acquisition. >> here's the bottom line and i'm not saying that i don't have the next receptos and i don't have another receptos and i need more time to get more comfortable and for more possibilities. as people ask me as they did

today repiece lead what to buy next with the profits i came back with the same time-honored answer my mom used to tell me when i wanted to take the juicy winnings and plow them back at the casinos and the racetrack. forget it, jimmy. why don't we leave here and go buy some nice cashmere sweaters. let's speak to jim in michigan. jim? >> caller: yeah, hi jim. you've got a great staff. >> oh man, they make me look good every day. it's incredible! not just the makeup people. go ahead. >> caller: okay. i want to know your opinion on juno's therapies in light of celgene's purchase of receptos yesterday. >> people felt if celgene would shell it out for juno. juno seems to be a farm team for celgene and celgene stepped up and bought an entirely different aaa out there with receptos and

now has made it into a starting lineup player. this one's not. joanne in florida. joanne? >> caller: jim this is joanne. >> all right. >> caller: i am so excited. jim, you are my compass for navigating the stock market. i wouldn't be in the stock market if it weren't for you so thank you so much. >> well i want you in. remember index funds if you build those up and then you start doing individual stocks and then you can do these kinds of stocks. go ahead. >> caller: okay. first of my question tonight is on sgen which is called seattle genetics. i bought some in march of 2014 at $51.40 and i sold half of my position before it hit in the low 30s. today its high was $51.34 before closing at $49.44. >> right. >> should i hold on jim? >> i remember exactly when it

hit that level which of course was when we were out there visiting with the company, and i think seattle genetics is very good. i think there are others that are better and that just had a big spike and now it looks like if it doesn't get a bid it can give up some of that spike so let's be careful is my judgment. let's be careful with sgen. vincent in new york? vincent! >> caller: boo-yah, cramer! >> booia. >> caller: i have a big position in pfizer and everyone and their sister said pfizer should buy glaxosmithkline, gsk. it would be a good fit. even on your show you indicated that. >> yes, i did. >> caller: eventually i bought the glaxosmithkline. my average price is $48 a share. the stock is doing nothing. i figured the stock would pop, make some money. the stock closed around $43 today. it pays a big dividend. my question, jim, what is my recovery plan on this stock? >> because people feel interest

rates are going higher and the 5% yield is not helping you. glaxo has repeatedly missed the quarter and they've got to do something dramatic themselves to get that stock up and i'm not quite sure they can do. it has shts just to be clear, it has not been a favorite of the show and i don't want to say this is some sort of bristol-myers in reverse, okay? >> if you watch the show closely and earned receptos and today is not the day to buy another biotech and some days you missed it, there will be better days believe me. you will have downgrafts in biotech. it always happens. much more ahead and the company that gave us everything from cheerios to the pills bury dough boy, could it have healthy gains for general mills? i'll talk to the ceo. and a man in march told me his $26 stock was going to $200 or at least made it a target and it's still at $26 and i'll ask the ceo of platform specialty products if he stands by that goal and i'll take a chart week dive into a bunch of stocks and

yes, i've got a surprising shocker that comes out positive. stick with cramer.

seems to have settled down somewhat and the janet yellin said you should expect a rate hike later this year. what do we do with the strong dividend like general mills and

everything from cheerios to chex and yoplaity and betty crocker and andes along many many others and general mills managed to beat wall street earnings estimate with a 4-cent topping off of a 71-cent basis and it was truly an impressive showing in the challenge category. they managed to outline plans to grow their business both here and abroad including launching onlay in china and an incredible presentation. general mills is a well-run company and frankly has been for 149 years and it is at a 3.1% yield and the stocks are moving up slowly, but steadily and i think it can keep climbing. let's check in with the ceo of general mills. mr. pal, great to see you. >> we've known each other for a long time and this is the most energized i've ever seen you. you also set elaborate 2016 goals both for financial and for

things that are going to come out of your product. >> absolutely. >> i've never seen you -- this is the most energized i've ever seen. >> well, we're energizes because the consumer is changing rapidly and we have to change with them and we're adapting and renovating and expanding internationally and we're growing in an emerging market and we're energized and staying busy. >> this has the greatest colors in the world and this is the best tasting. you're telling me you're going to make these things gluten-free and get rid of the color and flavor and i'll still want to buy them? >> you'll still want to. >> tell me why. >> consumers' values are changing and they don't want gluten in their cereals and we'll get the gluten out of cheerios which is the largest brand in the category. 5% or 6% of the population either have sill yack or intolerant of gluten. they'll love us for doing that and retailers are excited and half of the people we interview say can you ease off of artificial flavors and colors and we've heard them and we'll go to naturals and that's big

news for the category and we're listening to the consumers and renovating and changing these products to make sure they're contemporary. >> a lot of people felt that general mills had fallen from its leadership position. never fell from the leadership position. it's been a great stock for years and years. that never changed, but you're talking about customer first and didn't you always put the customer first? >> we did, jim. frankly, the pace of change in these consumer markets today, it's faster than i've ever seen and as you know i've been doing this a long time. consumer values are changing and millennials have different values and there are things that they want and things that they don't want and we've embraced this change and we've got to stay with it and we've set this all up around the idea of consumer first and hear what they say and what they want and give it to them and that's the highest pace of innovation. >> snacks are things that we associate, and your better for you snacks portfolio has incredible sales growth.

>> snacking is the new meal in the u.s. almost half of all meals are snacks of 52%, 55% as consumers snack more they're thinking about the kind of snacks they eat. give me healthy snacks and we're giving them granola bars, fiber one bars and this is a great opportunity for us growing very rapidly and lara bar, very simple organic bar so that the good for you, wellness snack is a very rapidly growing segment. >> what do you do for guys like me who aren't necessarily drawn to granola bites or muesli. >> food should taste good which i know. >> no, i love the food. that's interesting. >> these are wonderful products. >> our palates are changing too and you and i are similar vintage and we've read certain things are bad and you can't teach an old dog, can you? >> sure you can. you love this stuff. you're going to like granola bars and we're giving you fiber

that tastes good with fiber one bars. you can learn these tricks. >> how are you able to identify what people really like. what kind of work do you do? >> so we do lots of polling. we study dietary habits. in the cereal category for example, which has eroded a little bit we look and study in detail where are they going? are they going to -- they want more protein. they want more filling products. so we're developing gra noll as and we're developing mueslis that are more natural and higher in protein and that's bringing them back into the cereal category and we study very carefully. if we're losing a little bit from the category where are these consumers going and we can figure that out. >> you're also because of this new focus, there are places that need you, schools, fast food. they're looking to you. >> right. >> in order to make it so that they're more natural and organic. >> school dietary food guidelines and usda guidelines for school breakfast and school lunch becoming increasingly strict. they want whole grain and less

sugar and more sodium. general mills has been the leader in formulating and reformulating products that meet the guidelines and the result is we're having tremendous success selling our products in schools and we've had the best year ever in the food business because we were so quick to adapt to the new usda guidelines for breakfast and lunch. >> at the same time i have always been struck by your candor. you admitted for 2015 you were disappointed in yourself. >> yeah. >> the four clear priorities of 2016 please trace them out for our viewers because they're so aggressive. >> so grow cereal. >> which has been hard. >> which has been hard but we have great renovation on core brand and grow cereal grow snacks which has been a grower for us and snacks include yogurt and snack bars. these are categories that have tailwinds and lots of innovation. grow organic products which is a very exciting opportunity for us growing double digit nearly 20% last year and added andes to

these and we had tailwinds last year that were a drag on us betty crocker and the value wasn't right there. we fixed the value and those products are going to do better in 2016. so we think we've gotten very very right-on priorities. >> and one last call. your china yogurt i was shocked to see the amount of yogurt they eat there. do you think you can take a big share? >> $10 billion in china. yoplaity and we'll have very very high quality products and the chinese will know that this is a famous french brand, french heritage. they're going to love it. we're in shanghai now and we're off to a big start and this is a big initiative for us and i'm convinced it will be successful for general mills. >> i know you are fired up for fiscal 2016 and i know you will deliver and get the great yield because you were always committed to growing that dividend the day i met you. >> absolutely. that's ken pal, the chairman and ceo of general mills and the most iconic brand left in the

country and it will be natural, organic and good for you without artificial colors. good to see you, sir. "mad money" is back after the break. showdown on capitol hill. a warning from the fed. as tensions rise where should you turn. cramer's final say before tomorrow's trade coming up on "last minute mad." when you're not confident you have complete visibility into your business, it can quickly become the only thing you think about. that's where at&t can help. at&t's innovative solutions connect machines and people... to keep your internet of things in-sync, in real-time. leaving you free to focus on what matters most.

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cnbc's delivering alpha conference i got a chance to sit down with two very big name investors and one was the concept of platform companies also known as special purpose acquisition companies or spacs as a way of creating real value. it starts as a big pile of money and they grow by making a series of acquisitions and take pah, the specialty chemical rollup which has a jiegantic 20% plus stake in and since then they bought a bunch of deals and most recently announced they're buying a british specialty chemical maker. you might remember that when we had platform ceo dan leever on it was back in march he made a

bold call saying that his stock that was trading $26 at the time could only be worth $200 one day and the platform is flat, but i'm a big believer in the management team and bill ackman has had success with the acquisition technologies and we'll learn more about his company and where his platform stands. welcome back to "mad money." >> hello. >> have a seat. this acquisition is one of many and i want to put it first in context. we've made a lot of our viewers have made a lot of money in valiant and ton in allergan which is activist. you are kind of that for chemicals. >> very much like that jim. >> and that means that we should expect many more acquisitions, that this is a way to be able to build this company up big. >> yes. yes. we believe in putting together really high-quality cash flow oriented businesses in one platform really makes sense. >> this acquisition this week i was very grateful for it because i'm worried about dupont which has too much ag right now.

long term you can't get too much of it and this brings a better balance to your company, this acquisition, right? >> much better balance. proform a 50% of the revenues will be in ag and 50% in the specialty chemical side. >> do you expect another deal soon? >> i wouldn't say too much in ag, but we would like more balance, and our strategy to be the high cash flow of the specialty chemical business and broadly diversified. >> the reason i mention this is dupont spun off and that's where theis prices are plummeting and is there enough? >> there are hundreds of thousands that pit fit our business models. >> because of the assembly materials and -- >> to coatings to water treatment. there is a broad cross section of industries that we can play in. there's literally as 100 billion per new vertical that we're

interested in. i see you're talk about flavors and fragrances and oilfield services and these are all areas that you intend to be in. >> these are all areas that we have targeted that have the financial characteristics with high cash flow that will drive shareholder value over time so all of these areas share those characteristics. >> you're getting a lot of tech and what happens if tech slows down. are you still okay? whereas, it has a technology component to it it's not really what you think of as a tech business because we are broadly after the whole electronic supply chain. so all types of electronics and automotive electronics and consumer electronics. >> who are you going up against? because you're starting to go up against companies that are pretty famous in the business. ag obviously, and this business there is specialized guys in it. >> sure the french player total has a division and they're the giant in this market and dow has a big business in this area, as

well. so yeah we're up against big guys and we've been up against big guys before and we know how to do that. >> you famously set the $200 and it came to the end and i realize sometimes it's tv. i couldn't just say how did you get that, but give our viewers a sense of why that's not necessarily pie in the sky. >> we don't think it's pie in the sky at all. i want to make really really clear it's a target. it's not a prediction. there's a difference between a target and prediction. >> right. >> we looked at value creation in lots of different play. there is a famous book called "the outsiders" that go through capital allocators and how they generated value and we've run a whole series of different models. we believe we can get there over time. we really do. >> and you're friends with martin franklin. >> martin frank is my chairman and partner. >> martin franklin did that target and it was a couple of machine appliances.

it really is that again, right? >> in a lot of ways. i mean if you go back far enough my father bought mcdermott from the original founder that had $8 million in market cap. today it's $8 billion in market cap. what's the future? who knows? >> i'm a believer and i know bill ackman would make anyone a believer and i think you've got it. i really do. >> that's dan leever and the ceo of platform specialty, and it was up so be careful because we talked about it because i think it has good long-term prospects. "mad money" is back after the break. >> chart week continues and tonight it's tesla and the hidden pattern hiding in that chart and many more. what impact will it have on your money? cramer takes a bite of the technicals just ahead.

40% of the streetlights in detroit, at one point, did not work. you had some blocks and you had major thoroughfares and corridors that were just totally pitch black. those things had to change. we wanted to restore our lighting system in the city. you can have the greatest dreams in the world, but unless you can finance those dreams, it doesn't happen. at the time that the bankruptcy filing was done, the public lighting authority had a hard time of finding a bank. citi did not run away from the table like some other bankers did. citi had the strength to help us go to the credit markets and raise the money. it's a brighter day in detroit. people can see better when they're out doing their tasks, young people are moving back in town the kids are feeling safer while they walk to school. and folks are making investments and the community is moving forward. 40% of the lights were out, but they're

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it is time -- it is time for the lightning round on cramer's

"mad money". [ indiscernible ] and then the lightning round is over and are you ready, skee-daddy? we'll start with warren in new york. warren! >> caller: hi, jim. my stock is ni source separated from columbia pipeline. >> i've been a fan and the interest rate is going higher and no one is buying this one so you have to be able to say right now. >> don't buy! don't buy! >> let's go to justin in california. justin. >> caller: how are you doing? good to talk to you. >> i'm real good. >> i took a position in la jolla pharmaceuticals after a nice article that you had on the street.com and i was wondering if buying the union register or buy more or pull back? >> i did not read adam's piece on that, and the stock has had a very big spike. i have to do more work on la jolla. that stock has really moved. i just got to do more. let's go to barry in tennessee. barry? >> caller: hi jim.

longtime listener and first-time caller. >> excellent. >> looking for your thoughts on cnle. >> clean energy fuels. i don't like the stock. i like the concept. the consent seemed great to me and you see their fueling station, but it's not taking off and the country is not ready for it yet. let's go to ron in california. ron? >> caller: yes. i wanted to ask your thoughts on halo h-a-l-o. >> we have liked halo and we think that's a terrific -- it's again, one of these individualized immunotherapy and we liked it because of the play that they had. i will say this 52-week high. you have to be very careful and biotake biotech is overheated after the receptos take. >> let's go to francy in florida. >> b-b-b-boo-yah! >> you bet. >> caller: i'm calling about pure p-u-r-e. >> we're getting obscure ones

and that's one from europe i that have to do more work on i've been a busy fellow and i'll need to do more work. i need to go to bernard in california. bernard? >> caller: hello? >> hi bernard. you're up. >> caller: hi, jim. what do you think of vanguard natural? >> too risky. when i see the 10% yield to me it's a red flag particularly for a natural gas company when the prices are very low. >> john in illinois john? >> caller: hi jim. thank you for taking my call. >> of course. >> caller: my wife and i inherit inherited stock in aep. >> if interest rates go up no one will want a 4% yield, but it's a very fine company and that, ladies and gentlemen, is the conclusion of the lightning round! >> the lightning round is sponsored by td ameritrade. ove stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place that lets you visualize that information

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regular viewers know i'm a big believer in fundamental analysis meaning you get around what's happening around a particular company before you even think of owning its particular stock and there's a lot to be known from technical analysis which is why this week is chart week all week on "mad money." we check in with the favorite chartists and you're familiar with their names and tonight we got to hear from carolyn brody, the phenomenal technician who

rub runs fibonacci queen.com. the fibonacci queen has made incredible calls on this show and this is why we want to give her an opportunity to explain her methodology for the use of some indices of an individual stock or two and show us what will happen with the s&p 500 next, fib queen, carolyn, welcome to "mad money". >> thank you, jim. >> walk us through teach us and give us the pick. >> okay. all right. actually today i want to talk about what i call fibonacci price extensions. now price extensions are essentially retracements beyond 100%, and i use them to suggest where potential support and resistance decisions are. >> okay. >> and basically what i've seen in the past is that many moves tend to terminate at extensions of prior swings and that's why we were watching it when we made this last high in the s&p. >> right. okay. so in this example, we're actually looking at a daily chart of the russell etf, the iwm, and here i'm showing you

one example where we had a prior high to low swing. i ran the extensions and as far as the extensions, we use 11.272 and 1.618 as the ratios and they often call key highs and key lows and in this case a key high, and i ran it again over here and ran another 1.272 extension and another high was made and one more right by you if you want to grab that one. >> right and here again and that was when we made the last major high in the russell. >> okay. that shows you. >> next up -- tesla, huh? >> as an example. >> as an example. >> as an example, well you remember i sent you that chart. >> y i know. >> this is an example on the down side so this is where i measured a prior low to high swing, and this isn't the only low i did on this particular chart. >> that's a tough one. >> oh forget it anyway from this low to this high extended downward and it was where we

made that last major low at the end of march. >> wow! so that worked for us? >> okay. and then this is actually the monthly chart of the s&p cash and once again, this is one of the levels that i was watching for when i was telling you, you know put up that yellow caution flag. i think we could be putting at least a short-term high. so same thing, but in this case it's a 1.618 extension of the swing from the 2007 high down to the 2009 low and so far we have not taken that out just yet. >> right, but you expressed the caution that that was the right call. >> okay. next up. >> okay. i also wanted to show that not only did we have that monthly level, we also had a confluence of other price extensions and other price relationships and we're just focusing on extensions. in this case, we also on the daily chart of the s&p had an extension that overlapped

another extension up here that overlapped yet another extension and not only did i have the level on the monthly chart and i had multiple levels that came on the daily chart and that's what helps us make our decisions. >> okay. let's go and now we'll start getting into some stuff that is destrictive and predictive. >> okay. yeah. as far as the current market. the last decision i had was a timing cluster between july 7th through the 10th for a possible low, so we had that cluster of cycles as the market was trading down into that time window. >> and that worked perfectly. >> right. we ended up -- >> yeah. we ended upholding the support. we started seeing buy signal but here is the sticky part. typically i would look for a 1.272 extension for a move off this area and that would come in at 2959.77, but because we have a new pattern here of lower lows

and lower highs we have to watch this area for a possible failure. >> okay. >> and it comes in at 2110. >> and how closer we right now? >> we're on top of it right now. >> this is day to day. >> right. if we can push through it then the odds are higher for the extensions on the upside to be reached 2159 and 2190 area. >> this isn't like when you came to me and said listen jim, it's going to turn. you're not sure right here. >> oh yeah. no. i wouldn't be surprised if we cleared this year. >> you would be? >> i would not be surprised. >> okay. next one. here is the stock and everyone should know this this is the most hated stock right now. >> this is exxon. so with the stock that's hated, most people don't know how low it can go. so why don't you help us? >> okay. so i basically started with the weekly chart on this and i came up with multiple price relationships and these highs to lows. oops -- low to high extended --

oh forget that and then this low to high extended and the next low to high extended so there were multiple extensions that were on top of right here right now and it also happens to overlap some major retracements and projections on this chart. so what does that mean? it seems to have held this repeatedly? >> yes. if we can't continue to hold buff either one of these suppliers, i'm a buyer of exxon. >> even though oil is breaking down and it's been the precipitous lead or the buy side. you'd be a buyer if it holds the levels. >> if it holds the levels. >> there say call for you as carolyn broedy the fibonacci queen, my colleague on realmoney.com that has been so spot on that i'm thinking for the first time to tell you to buy exxon. stick with cramer. thank you.

after the bell netflix delivered. a lot of people said how can they not deliver if they did the split? it's still monumental given the fact that it's been jacked up by analyst after analyst after analyst as people talk about the market continuing to grow. well done netflix. intel threw a curve by reporting much better than expected number and it put a damper on the growth and hey, ink it's okay. there's all a bult somewhere, and i promise to help you find it. i'm jim cramer and i will see you tomorrow.

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