i think at some point in early 2016, it is long twitter and facebook trade would be good. >> our time has expired this year. check out "options action" 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 and i'm trying to make you money. my job is to teach and coach and explain days like today. call me at 1-800-743-cnbc or tweet me @jimcramer. right now, right now we're in the heart of liquidation season. not familiar with that situation in well, you better be.

it's very much behind a great deal of the negative action you saw on your screen today, dow plunging 367 points, s&p plunging 7.8%, it was an awful day for the bulls. liquidation season is when the clients of poorly performing hedge funds ask for their money back near the end of the quarter or the year, whenever the fund opens and the hedge fund is obliged to sell the stocks, raise cash in the open market in order to get the money back into the hands of the investors, who are clamoring to get out of the fund. if your fund has a terrible performance, you can bet it's besieged with liquidation requests. you don't believe me? you better. i covered it in my book. redemption is cold and

bloodless. no kanging any changing any invd who has been harmed by you. you're going to have to come up with a lot of cash. that means they do to today, yesterday and they do it before the market gets too thin. clients hate paying that 1 or 2% for nothing and then 20% of the gains. but they hate it when there is no gains and there is zero sympathy for any hedge fund manager with major losses. those people are going to end up like this. if you're one of these underperforming managers and you get notice and you start selling now, you reload and reload and reload. you try to let the market go higher between sales. sometimes up just give up and

blow it out all at once. that's what we're seeing right now. this markets is oversold. it's tempting to buy something. remember, i've been advising caution. one of the reasons is the sellers are forced liquidators. they don't care what money they get. they just need to get redemption. you get until the last five days of the year or quarter to redeem. after the last five days, not take anything redemptions. now think about it. most people have that practice. count back the days where you had to be able -- where you got a redemption notice and you know the damage here is caused by these hedge fund managers underperforming. typically we'd be having a relief rally that would help take the other side of the trade. however, that seems long over now. and you normally have year-end markups. shocking but it still happens. nevertheless, it's not enough to offset these redemption song,

especially when aided by one more day when oil went lower and we know oil going down is perceived as terrible for the rest of the market, even though it's a totally lunatic assumption. so oil's a tax, natural gas is a tax. rejoice! you're getting tax cuts left and right due to this collapse this crude. just be careful when you try to bottom fish knowing it could always be a false bottom, a trap door so to speak, that makes you overconfident versus the miserable moment we're wall owing. you're experiencing the darkness large right here. with that in mind, what do we have to say about next week's game plan? next weekend we get the real read on the weekend star wars movie in could be an opportunity to get into disney for the long run. i can see someone on twitter saying "cramer told me to buy

disney at 103 and it went to 102.78. what an idiot. it seemed like a vicious, almost like a retribution downturn. the analyst estimates the all-important cable networks operating income, 40% of disney's entire pie could be down year after year in fiscal 2017. me? i've been thinking we'll be be able to buy disney down in the hundreds again and along come the analysts say we go could do just that. the new star wars movie is still important to the company. who know, maybe tv show, you know, they matter, too. yes, espn is having some slippage but people don't understand the total cash machine disney is.

i want to take the other side of the sell/trade come monday but only if you're a long-term investor. that's what you say i'll get started in disney and i'll buy it on the way down. think longer term! tuesday's huge. and con ag gra is doing generous things. i think con agra is in no position to go higher now. micron, they've been beaten down mercilessly. the company is going to talk up 2016 numbers, even if it condition shock to the up side. maybe you let it report and then buy it for a trade? nike is growing so much it makes me nervous. that said, i believe it can give you still one more good number. if you own it, i would stay the course. then there's housing.

look at these numbers. lennar, a fantastic home building reported really solid numbers but it was a hideous day so it didn't matter and the stock fell almost 2.5%. lennar of positive about the future. i think there could be a stampede to buy now that we're sure we have the rate hikes. and could we just stop predicting when the next rate hike is coming. i'm sick of it. i had to get that off my chest before the weekend. i believe the durable economy is weaker than the fed things. the manufacturing sekor, we seal that when we go the durable goods number. we also gets personal income and personal spending numbers. i bet these will show incomes haven't grown. then next thursday we have jobless claims. why do i care?

because just to be clear, while employment is very strong, it's the only thing that strong! a true anomaly. the earnings growth has no more come through -- it hasn't come through cheap gasoline yet either. so maybe something will happen, well, let's say speaking of retailers, they're all dreaming of a pre-holiday white christmas because it is just so darn warm. who wants to buy those furry boots. or cashmere sweater. carl had a really beautiful cashmere sweater on today. carl can wear anything. i can't wear anything. i think you're going to see some really good promotions at the ball. i bet some analyst wise guy does some downgrading here to here. not going from buy to hold on

any stock at this time of the year. this is supposed to be an era of good feeling, not of downgrading. i hope you have a merry and healthy christmas as we celebrate the holiday stock market free. here's the bottom line. i think this ugly markets is less fed oriented and today less oil oriented. expect they can continue to wreak havoc. but remember, here's a shocker, as stocks go down, bargains do get created. however, you just can't be sure if even bigger bargains lie ahead. damon in georgia, damon! >> caller: hey, how are you? >> oh, man, these days get me a little down to tell you the truth. how are you? >> caller: all is well. love your show, man. i'm just starting to invest. i'm in capital presser vaegs and starred looking at blue chips and i turned my attention to procter & gamble and i'm seeing rumors they're thinking of

breaking them up. their stock was above 90. how would they fit into a preservation -- >> my manager says, you know, he says down below 75 you absolutely have to buy. i'm thinking between 72, 73 -- there's my music redemption song. it's always greats to play it right in the middle of when i'm talking. we'rein liquidation season. we saw it happening today. take advantage of the bargains! on "mad money" tonight, have no fear -- after the rally on solid earning, i'm sitting down with the ceo of red hat. i'm focusing on two upgrades and downgrades to chang the markets. and the company formerly known as isis changed its name to iotus.

should you own this? i'm speak with the ceo. so why don't you stick with cramer! >> don't miss a second of "mad money". follow @jimcramer on twitter. tweet him #madtweets. send jim an e-mail at madmoney@cnbc.com or give us a call, 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. announcer: sunday's your last chance to save big

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even a lousy day like today and it was hideous out there, some stocks managed to go higher. take red hat, software for virtualization and stores and cloud-based offerings. it's incredibly well-run country. let me read you some of the headlines. squeaky clean execution in strong third quarter, said one analyst report. firing on all cylinders, another. or my favorite, we tip our red hat for the past two years successes. the company delivered one cent earnings off 47 basis,

subscription increased 15%, deferred revenue rose 14%, that's the future and raises four-year guidance for 2016. how many of those do we have? all of these numbers would have been a lot stronger had it not been a the freaking strong dollar. maybe the stock has gone up a lot but managers will pay up for this kind of company. that's what happens in this super charged environment. so let's talk to the ceo of red hat. i want to get right into it. everybody uses amazon. could they be amazon without red hat? >> we had hundred certified cloud providers and amazon is one. they've been a customer of ours for a number years and they use our operating system and some of

their customers use it on their cloud based offerings. >> so amazon is out in the cloud and red hat is a service provider to amazon. >> right. and we have microsoft -- >> i wanted to ask about that. has that already kicked in or is it just the beginning? it doesn't seem like one of those for show partnerships. >> we just announced it a month ago. we just closed the agreement and hopefully over the next several months, several quarters, we'll start seeing that business. >> let's say i'm a skeptic. doesn't that mean you already have everybody and there's nobody to get? >> the key thing about what we have, it's one thing to be

having a customer in all the enterprise but it's how you also sell to them and then upsell. we started with the lynnix, the operating system, which many of our customers use. but now as we continue to expand our portfolio, you mentioned some such as open stack, so shift, middleware, management, they're seeing more usage on top of the operating system to continue to work with us. so you look at what we spend, what we spent with them a couple years ago, versus what we're spending now and what we'll spend in the coming years, we'll continue to increase the spend. goldman sachs did this a couple months ago and they looked at i.t. organizations today and what they expect to spend and there's a significant difference what they'll spend with red hat and what they'll spend in a couple of years.

>> what about financial service firms with red hat? >> financial services firms haven't been in the technology business for years. not only were they on lynneex, but they've been one of the industries working with us on open stack and open shift. starting early. they'll spend the time making the investment of the technology and working with us along as a partnership and seeing that continue to go through. so they were early with some of these emerging technologies. they're actually in full deployment right now and expanding their use over time. >> there was a statistic when i was reading the conference call that's kind of amazing. every single re-up you had you won. but but you also are getting 120%. >> you're spelling more business, they're using our products more, they're using more of our product, especially as they think about the cloud and they start to build out

cloud. sometimes they'll start with one installation of a cloud and continue to expand, whether it's on the private side or hybrid environment. >> i know security is always -- it doesn't matter. the navy would put you in its newest warship. i would not think they would pick you if they did not expect to be in cyber terrorism. >> i would say the industry has been one with red hat for years. yes, i would agree with you as far as that's where tried and true early on from the standpoint and the trusting relationship overtime and continue to deploy new applications when they work through that. >> is your best client from a

noncloud based system? is that when red hat can strike? >> it's been somewhat of a cannibalization of the existing market. you have to look at proprietary software moving to open. when you sart to see that transition many companies are looking for the benefits of open so they'll come to red hat and look at it from that perspective. within the operating system, some of them are shifting from a unix still or windows on to a lynnix. you've got some moving from a free lynnix to more of a paid lynnix because they're looking for some of the support and the services we provide so that kind of allows us to have some up side from that perspective. and then again, you're looking for ones on the operating system looking to do more with us. >> i think it's interesting you mentioned windows. i used to think people would leave microsoft to go to you but now that you're partners -- >> the only stock that i saw in

the green today. "mad money" is back after the break. >> announcer: coming up, amazon prime? no doubt they revolutionized the way the world shopped. but what if it could mack wall street more friendly and change the face of shopping forever.

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at the beginning of this month we noticed not one but two peculiar quizzical pieces of research from wall street analysts on a pair of big name stocks. i think they're worth taking some time right now and discussing them because on a brutal day like today, it's important to remember that individual stock picking will still matter when the smoke clears. which brings me to what happened back on december 1st when we got a pair of extreme analyst actions, and that's too lightly a word to use, extreme. morgan stanley upgraded as stra zeneca, major british drug company from an underwaeight to an overweight and merrill lynch downgraded cummings to what was an actual buy to an underperforming. they said they liked it and now they hate it. this is really something we got to address because, i mean, it

peculiar, isn't it? i mean, think about it. typical analysts only downgrade or upgrade a stock by a notch. buy to hold. if they got a buy rating, first they take it to neutral and maybe they'll downgrade it to sell. what is highly unusual to upgrade by two new hampshires, like going from buy to sell or sell to buy. when you get this drastic two-no notch upgrade or downgrade, it indicates a major sense of urgency like you got to get in or get out immediately, no questions ask. up know i never take this sell side research as gospel and you shouldn't either. but following analysts should be an important part of your homework. it tells you which way sentiment is leaning in a given stock. that's why i'm going to try to interpret them for you. let's start with morgan stanley's monster upgrade of as

stra zeneca where he went from hating the stock overnight. they point out this british big farma alpha is ready for the development of the department, including new drugs to the point where they have a wave of positive catalysts coming out in 2016. normally i can be skeptical about the cell side research. it opened my eyes to a stock i hadn't liked. they said the expectations had been too great and needed to be reigned back in. now they pointed out that their bear case is true. they got it right. but after telling you to ignore the stock for a year, now morgan stanley is pounding the table

and tell ug to buy astrazeneca hand over fist. number 26 is like in another ten days which is why the company believes they can earn 6 -- >> these analysts see some major research and development coming. it should result in three major bloods, there's a novel blood thinner, an asthma treatment and then there's an ovarian cancer drug they're currently testing in a haute of indications. this cancer franchise. these guys point out astrazeneca is also bringing three huge drugs to market, there's treatment for lung cancer, high potassium levels and chronic

obstructive lung disease. they believes they drugs could be worth $9 billion for a company that was a sleepy grower. best of all, these analysts are sensitive to price. they knew astrazeneca was -- people have been staying away because of the patent protection on sayer seroquel, big ones. if these guys think they can offset it, that's amazing. ne like that as stra zeneca bought zs farma. the company is buying a controlling interest in acerta, which is focused on oncology and

focusing on a blood cancer blood. they could be doing peak sales of $5 billion. that could be a real steal there. i have to say i like this argument. yesterday's assert to acquisition only likes me like astrazeneca even more. looks looks like the analysts at morgan stanley have a good reason to change their november. they decided they were about to miss their window and pulled the trigger on december 1st. how about this two-notch downgrade of cummins from buy to sell from bank of america merrill? took place the same day. here's the different story. remember cummins is a big international oriented industrial with a stock that's being killed for the last year and a half. 18 months! yet this analyst at bank of america and merrill had a buy rating on the stock since this

past january when it was trading at 142. let me see, where'd this one go out? oh, yeah, 85. that's bad. and then nearly 11 months later he downgrades to untd perform. the stock but i have to wonder what the heck took them so long? maybe it's a case of, what, better late than never? i can't disagree with the substance of this downgrade as this is a very difficult time to own a fantastic american manufacturer like cummins. the truck market is weakening sooner than anticipated -- ♪ super freak >> continues to make it difficult for them to compete with foreign engine makers and a country with devalued currencies, which have virtually

every other country in the globe right now, though particularly they're worried about china. plus cummins makes equipment that goes into the minerals and minings. given that is a louie market to sell into. i can't fault bank of america or given the fact these guys have a buy rating on the previous of 42 points, come on. i'm cliend to take the downgrade with a grain of salt. it's not breaking news at this point. we know things are looking grim for cummins and its co-hort. the fact is the stock is down big, trading at a 52-week low, an accidental high yield of 4.5%. and that dividend seems perfectly safe, even if the company's earnings get cut in half. i'm not quite ready to caillebotte om here. no, no. i'm new to it.

i haven't liked the stock for a while. but this bullish bank of america analyst, capitulating. kind of makes me think the stock may not have much further to fall because of the ever-increasing yield. and to be sure, one sign of a turn in china and you're going to be reaching for this down and dirty cyclical. when analysts make grand where is the double downgrade owning cummings? makes me feel that this long, hideo decline might be running out of steal. with a 5% yield or rebound in china, i think you make your move. richard? >> i'm trying to figure out if you'd advise taking a position

on either stock. i watched dow come down about 8 points from when they first announced it. >> my travel trust owns it. we were frozen. we're frozen in the charitable trust. it is now down to 49 and i got to tell you, we feel at 48 we're just going to buy back all the stock that we sold. it's getting nutty out there! people are starting to hate everything! that means they're too negative. thank you for the kind words. richard! >> when analysts make big moves, it worth taking a look. based on what we saw this month, you should own astrazeneca. i really like that stock. but rummings, could be running out of steam. ice. >> i'm talking to the ceo about the name change. what does it mean? and why i think the stock market should be run by amazon minus the drones and a finally friday

edition of the lightning round! stick with cramer!

this morning we found out that isis pharmaceutical is changing its name. when you're a company that tries to save lives, you don't want to be associated with a group that beheads people. it is changed its name to ionis. it's pioneered what's known as anti-scents technology where they develop drugs that work by targ eting the rna in your cell, which is like the equivalent of middle management. if you change the message the rna is carrying, you can fix genetic disorders that produce all kinds of important proteins your body needs. ionis has 38 drugs in its pipeline, one for a phase two

treatment also for spinal muscular atrophy, a phase two formulation for high triglyceride levels and some diabetes drugs and an recall stage cancer treatment. it's got a lot cooking. it could be sitting on a host of blockbusters. let's take a closer look, the chairman and ceo of ionis, formerly known as isis. dr. cook, welcome back to "mad money." >> thanks for having me and happy holidays to you. >> same to you, stanley. let me ask you, i thought it was just me but a very good analyst, dr. shimmer over at piper jaffrey said this morning in a piece of research we think this name change will do build a new image. in our view today's name change represents the first chance for the company to revamp interest

with investors and we're optimistic positive steps will follow. is that overstating it? all did you was change your name. >> i don't know if it's overstating but changing our name at a time that is tremendously exciting. we're completing three phase three trials with three different blockbuster drugs. >> you look at that and look at the advances we continue to have in the pipeline. >> we did a feature on as stra zeneca. i think it's very exciting. this is a company i thought had become really just me, too.

but they have five cancer targets and they're developing them with you. how is that going? >> it's going well. we have had our cancer collaboration with astrazeneca for a few years and this year we added a collaboration in cardio metabolic disease. they're one of our partners and they're great to work with. the new astrazeneca under pascal is a very exciting, innovative new company. >> when you say that new astrazeneca, that makes me feel good. how is the phase two study going? it actually just started, right? >> no, isis-ttrx in the phase

three study, the peripheral neuropatnur on -- neuropathy indication and then what's particularly exciting is our partner gsk is beginning the first cardiovascular outcome study with an rna targeted drug. that's a big 500 patient phase three study. these are very exciting times for our ttrrx drug. >> is this a 2017 or 2018 drug if it goes well? >> no, it's sooner than that. so the first indication, the peripheral neuropathy, the phase

three study is now finished enrollment and that's a 15-month study. we'll have those data in early 2017. we'll hope if they're positive, we'll file right away for that indication. >> we spent time in the past talking about your clotting disorder drug. how's that going? >> very well. as you remember, we licensed that to bare for high 20% royalties and the first step was to get experience with patients in renal dysfunction, which we're getting now. the first phase will be in patients who can't take existing ant anti-tlom bittic drugs and that's rolling nicely. and after that the very broad phase three program should begin. so exciting times for factor 11.

it i believe can fundamentally change the treatment of tlom bow buy yotic disorders. >> thank you so much for coming on mad money. >> it great to be here. >> always good to check in with the doctor. this company has a lot more cooking than most. when people come back to biotech, this will be one of the first that they come back to. "mad money" is back in a minute.

it is time for the lightning round! and then the lightning round is over! are you ready skee-daddy? chris in new jersey. chris! >> caller: hi, jim. how you doing? >> real good. how are you, chris? >> caller: my stock is juneau. it's going down. should i hold on to it? >> it's a speculative biotech.

you have to understand that stark is probably going lower in this market. well, act accordingly. eleanor in south carolina. eleanor! >> caller: hey! i have calumet. do i buy, sell or hold? >> i think that yield is unsustainable. i think you should take some off the table. i know that hurts to here. let's go to kathy in maryland. kathy! >> booyah, jim, with crab cakes from maryland. >> just a second, i have the seasoning. >> first data corp. >> you got that company like a mastercard. we don't need no first datacorp, we got master card. that's what we're going to could. ben in texas. ben! >> caller: booyah and merry christmas. >> what's up, partner? >> at&t 5% yield and a good outlook next year.

is it time to buy? >> i'm with you. i know most aren't. the stock's been a total -- but they boosted the dividend. that's fine with me. it's steady eddie. i think eventually directv will work it and will go higher. joshua? >> caller: buy, sell or hold on shopify? >> i think it's really good. i like that stock. it's really down a lot. >> let's go to osben in tennessee. >> caller: merry christmas to you and happy hanukkah to you and the staff. thank you for your great work for the small investor. my question is about alcoa. >> alcoa will not start going higher until we get to closer to the breakup of the company. people do not want to own a

company lefered to any mining. and that is the lightning round! >> announcer: the lightning round is sponsored by td ameritrade. >> it is time! >> caller: booyah, jim! big booyah with cheese on top. >> i like that. hold the cheese but fine. anthony in new jersey. anthony! >> caller: hey, jim, how you doing? >> i'm all right. how but, anthony? thank you bob, ceo of disney. what happened? did you bust it? >> your cue hit the camera. is there a yoga mat?

do you want me to plank? all right, i'll plank. >> you can plank for this whole segment. >> no, i'm good for a minute plank. could you make it so it's even? that's going to really -- you got to -- you can't have it so it's half on, half off. i've got you, don't i? lululemon, the per vare of high-end yoga clothes reported a suboptimal quarter. the valuation, it looks a bit stretched to me. so stick with cramer! 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 for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings.

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sometimes on days like today i feel like we should just turn over the whole stock market to amazon. it would make more sense and do a better job than what ever the heck is playing us now. think about it. right now when the price of oil goes down, the s&p goes down almost tick for tick. they say it's algorithm and they unleash automatic selling in the s&p whenever crude rear versus and goes down. once the machine steps in, it becomes self-fulfilling. why would the stock run better on amazon? because it would be accessible to everyone. you could buy a put on say oil,

using amazon prime of course. and up would pop those who dislike oil might want to buy a put option on the s&p 500 or it could include an icon for the nasdaq or dow. just like all amazon tells you if you enjoy dead weight, you might enjoy the last voyage being there of the torpedoing and sinking by a german submarine off the ivory coast. amazon could do individual stocks, too. wouldn't that be great? today the sellers trashed the consumer package goods companies like procter & gamble, which i like under 75, clorox, kimberly-clark. but somehow kellogg's was uncateuncat unscathed. you could have a little icon using the company's logo, see

the current price and see the company hasn't been hit yet. for those of you who hate clorox, voila, you're shorting kellogg. you doesn't have to worry about delivery. amazon's got that solved. you don't even need to know if they really relate. they'll tell you those who sold general mills sold kellogg. who knows. you just have to work on the ram if iatio ifications. it would be nice to know the darn thesis, though. the company mentioned it was being squeezed by a broad base production at the production base. hey, that's a code for walmart. the same way that a supplier for apple never mentions apple. the customer is always right, whether you're selling chips into apple or potato chips into

wa walmart. then again, a thesis is hard to come by. that's how america, delta and southwest all went down with a decline sparked by a decline in oil. we have to take into consideration a total lack of algorithm. it can't be perfect. it's a very significant reason why so many hedge funds are down this year. they make these big macro correlations and so often they're stupid and just plain wrong. that's why the losses are sorry big. that's why i would love a button that says if you like "star wars, you might like the stock of disney. but that would be too simple. so come on, amazon, why not recreate the stock market! we need horse sense, you have it. and you don't even need delivery drones to get the job done.

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the new cnbc documentary, did america's oldest gun manufacturer know about a potentially deadly defect in its popular hunting rifle, the remington 700? don't miss "gun fight, remington under fire, sunday at 7 p.m. there's always a bull market somewhere, i always like to find it for you. i'm jim cramer and i'll see you monday!

>> narrator: in this episode of "american greed"... ross mandell is a pumped-up new york power broker... >> i'm coming to you uncut, unedited. >> narrator: ...flexing his muscle on wall street and living a life of excess. >> he was a cocaine user. he was a heavy alcohol user and used it to stay pumped up. >> narrator: after hitting bottom, he turns it around and gives up his delinquent ways. >> i'm ross mandell. by publicly sharing my personal battles, i could help millions of people avoid the pitfalls and the rat holes that i've had to claw my way out of my whole life. >> narrator: but ross mandell replaces drugs and alcohol with addictions to money, power, and