the run has been good. >> good to see, he's eating. better than those grimy burgers. kelloggs in earnings. >> nice. thanks for watching. see you my mission is simple. to make you money. i'm here to level the 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 cramericcramerica. call me at 1-800-743-cnbc or tweet me@jimcramer. there's two ways out of this jam. the dow joined 21 points.

nasdaq declined 3.4%. it's very rare that we can sustain this endlessly bullish move. rallies end or take a break either by matador or by pamplona style exhaustion. it's the way the hot streak comes to an end is what matters. a big ugly decline is the matador. second way out is a whim per. i like the smart. but i want you to know what the former might look like so you can be prepared in case that happened. every once in a while i talk about the fabulous service i paid for from standard & poors. it's anathema to many.

after days and days of rally, the oscillator hit the level of 10, it is a level of danger, which means the market is severely overbought. >> buy, buy, buy, buy, buy! >> when stocks get severely overbought, they're exposed to a level of quick short-term vulnerability which would make it nuts for you not to do a little trimming from your portfolio. sure, the market can say overbought for a while. when we see the number 10, it's the natural thing to do. just like to cover your short position to do some buying would go to minus 10. normally the eindicator stays about 5 points over zero. when the market looks so great

like it has lately, you tend to be least prepared for a big decline. you want to put money in, not take it out. that's when the oscillator falls to minus 10, when you have to hold your nose and do a lot of buying, even when everything seems terrible. nothing is ever 100% right. we've seen extreme overbought readings before. and sometimes they work themselves off by the market meandering for days, nobody gets hurt. then sometimes oversold stocks just keep plunging, you know like they did during the great recession. they kept going down and down and down to amazingly hideous levels. that's why it today, even though we have exceptions we did some trimming in my charitable trust. why?

discipline trumps conviction. and right now discipline says we're being greedy if we don't do a little selling. this market as not finished at all. remember joe dimaggio had a 56-hitting streak. consider yourselves forewarned in case i'm wrong. so now that you've heard my disciplined spiel, we have to talk about what could trigger a selloff and what could help us muddle through. let's start with the natural source of trouble, the banks, because they begin reporting tomorrow with the release of j.p. morgan's numbers. here's one of the characters that's a jewel in the financial crown. it does investment bonds, trading. credit cards too. none of these businesses has been that robust as of late.

plus, j.p. morgan can't make as much money on lending as you would expect normally given on how much business they do and that's paubecause interest rate are so low. they have to invest in short-it te -- short-term treasuries. hence the possibility of maybe a disappointing quarter. [ baby crying ] it's not like j.p. morgan's coming in hot, but it is up from its lows. it means there's still some room for disappointment. jpm's numbers are so good that when the rest of the banks report, like bank of america on monday, they might suffer by comparison. wells fargo, which is owned by my charitable trust.

th they'll have to do like clint eastwood in that movie. we still can't get bang to cooperate. in fact, the wrong fang is winning the war here. this market has two fangs. there there there's facebook and amazon and goog google. the energy fang, up 36% year-to-date is mopping the floor with the fang acronym. facebook, crushing it. amazon, only advanced 10% this year, despite all the hoopla. netflix, which is down more than

15%. and google, which is off 6%. diamondback fang 1, tech fang 0. the red hot fang just issued 5.5 million shares. and it's still way ahead. oil dropped $2, right back to where it was yesterday. but what matters is the big buck stocks of the year aren't putting on the performances. the flotsam and jetsam, that's not what is needed right now, people. the right fang has to start catching up to the wrong fang, or else. or this diamondback gets slaughters. third worry, we have fed heads talking tomorrow. and you can bet someone's going to say the wrong thing for the bulls. and that someone will be the main highlight for the day.

our plymouth's on fire. how about that unemployment number. bring on that one, but not two right hikes. i've got that scary fed speak to a science. should we give up? no. we can work off the overbought position by having the stock market do nothing pourfor a whi. we could have a couple days that are down and bring in buyers while cooling off the pace of the rally. while there will be profit makers, there's not enough hot money or fearful retail money left to blast out of the market. >> sell, sell, sell, sell! >> and cause a vicious decline. take off some obvious gain. no one ever got hurt taking a profit and let the rest ride. wagering if the market really

gets hit, the buyers who have been patiently waiting on the sidelines will finally decide to pull the trigger. let's go to kendall in illinois. kendall? >> caller: hi, jim, thank you for taking my call. >> of course. consider here's my question. should i sell my american depository shares of sin jen at that? i'm being offered $93 per share by a subsidiary of china national chemical corporation. >> kendall, tomorrow morning, take it off the table. well done, well played, bernie in massachusetts. >> caller: how are you, jim? >> couldn't be better. >> caller: monica dropped 60%. i'm concerned that investment in db will go like lloyds and barclay. >> you bought that stock, maybe

that stock doesn't represent the company's future earnings. things are rarely certain on wall street, but no one ever bot hu -- got hurt taking a profit. take some off the table. on mad money tonight, a must sigh for anybody in a cash index fund. i'm breaking down two prospects. do not miss this. then i'm looking at the generation shift for consumers all around the world and how it's impacting some of the world's most recognized companies. and the precious metal player, it's nearly doubled in 2016. i suggest you stay with cramer. don't miss a second of mad monday egypt follow@jimcramer on twitter. tweet cramer #madtweets. send jim an e-mail to mad

monday @cnbc.com.

all week we've been looking back on the first half of the year, going sector by sector to see what things have been working in 2016 and which wones have been falling by the wayside. the consumer industrials. but tonight we're going down deep here. enter the two largest sectors in the s&p 500 that have put up some pretty unimpressive numbers. i'm talking about the technology stocks and the financials. even though those six out of the ten sectors in the s&p were up more than 500, the berps mark closed up 2.7%. much of the relative weakness can be laid on the feet of these two. particularly the financials. >> sell, sell, sell. >> when i said at the top of the show begin to report tomorrow. the single most important sector

out there, given that i.t. accounts for nearly 20% of the s&p 500. when money is flowing into tech stocks, the whole market levitat levitates. when tech flat lines, guess what, the averages languish too. even though the tech stock was up barely more than 1%. this is where the focus was all over the place. >> sell, sell, buy, buy, buy. >> and unlike what we saw with the industrials yesterday where some subsectors like machinery did well, like the airlines suffered, things in the tech category weren't so clear. we have intuit, climbing more than 15%. while losers like auto desk climbed 11%. communication equipment, f-5 networks that control the interstate system of the internet gave you a gain.

but another backbone gave you an 8% loss. hewlett-packard had 20%. granted, there's some straight-forward pockets. like the semi-conductor equipment makers. not the chips but the equipment makers. sector had another major problem. it suffered from a lack of leadership. consider the three largest tech companies. apple, and microsoft. let's drill down and learn from them. starting with the winners. cramer fave, invidya, came in first. beyond making graphics, nvidia's

been making chips and highest-end automobiles. all helped deliver robust growth. second, an equipment maker that's rallied 28%. they had great orders. plus, they should benefit from the consolidation as competitors, lamb research merges. fidelity national information services, that's a banking and payments technology, up more han 21%. then we have sim and tech. this was barely going up into june. then the company announced $4.65 billion acquisition. in other words, it bought someone, the privately held blue coat systems. greg clark taking the helm at the leaderless symantec.

it helped propel the stock ov over 21%. then we have the old hp, this is run by meg whitman. which has rallied 20 th%. and news . we have disc drive makers, seagate and western digital down, commodity business totally hostage to the personal computer market. that was viewed, of course, as awful from january through june. seagate guided up instead of dun. the other tech losers, including

csra, that was spun off by csc late last year. then there's first solar, which i like, but it's just not happening, down 26%, because the whole solar complex. however, while tech was nothing to write home about in the first half, oh, man, the financials were far and away the worst performing sector in the s&p 500, down 4.1% from january through june. >> the house of pain! >> that matters because the financials represent 16% of the s&p. in december, the feds raised interest rates for the first time in eight years. and they were expected to get four more. that's good for the banks, because they make more money off your deposits.

but we've had no more rate hikes, and it's mott clenot clee fed can react anytime soon. it's because of uncertainty overseas -- brexit. the yield on the ten year fold from over 2.25%. plus, the investment banks side, trading volumes significantly lower than last year. we've seen far pewer ipos. and far fewer mergers. in terms of actual financials, only the insurance companies managed to put on a decent performance, there i like travelers. all five are real estate investment trusts. with juicy diy dividend yields. you've got iron mountain.

and the premiere of mr. robot? these are the inspiration for iron mountain. cramer fave ven toss, be somebody bet against incorrectly. the five worst performing financials show you how much they suffered. the weakest was legg mason. a victim of reduced trading activity. second worst is inves coe, down 23.7%. and the collapse of the pound at the end of june crushed their stock price. third worse, citizens financial

group. the phillies. this is a regional bank operating in the northeast and mid tlaeptdic. fourth, a commercial real estate services and investment company. it got hit at the beginning of the year and sold off very hard on brexit. finally, charles schwab was the weakest, getting slammed on the decline in trading activity by you, by ordinary investors. the largest sector, technology was all over the place in the first half, but only the winners were able to cancel out the losers, all be it slightly. the second largest sector, the financials were just plain bad, which is exactly what you would expect in an environment with low rates and few deals. let's see what happens when the parade of bank earnings begins with j.p. morgan.

there's a report tomorrow morning. much more to come on "mad money." the reasons general mills could hit the bottom line. i'll explain. i've got some names for you. then a gold stock that has been absolutely glittering, and only we believed it. there's no more room for a rally, and a silicon valley startup, starting to change 100 years old. will the results smell as sweet as its products? stick with cramer.

joinling us, the ceo of general mills. i have in my hand, a breakfast pack, minus to plus 14%? cereals packed. how did you do it? >> jim, good to see you.

>> i get a little caught up. >> nice to see you. >> silly rabbit. trix are now for everyone! when i was growing be, trix was my favorite cereal. they wanted you to eat the shredded wheat. when i was a good boy, i was able to eat the sweetest and unnatural things on earth, save lucky charms or the captain. i was able to eat trix! trix! because the commercials during all the cartoons i liked told me trix were for kids! trix stopped being for anyone, because they were loaded with all sorts of artificial stuff that the country turned on. it's right on the label. they add probably too small writing here, natural flavor! how about that? the color's not artificial

either. all right, so it doesn't look as bright as crayons, it's like crayola in a box. the key brands have gone from a 6% decline in sales to an 8% increase. in the time since they made the change. h he's the ceo of general mills. what's he done? he's listened to the consumers. he shed green giant. the baby boomers' bomb shelter. we knew that green giant peas would survive. and he bought annie's. he revamped the whole cereal line so it grows again, reemphasized snacking that are good tasting and good for you. putting the money behind the growth parts of the company. there's always a remarkable turn

around at general membills. this from a sleepy, low-risk company. why does all this matter? because when we interviewed ken this morning on "squawk on the street", and i asked him how he knew to make these changes, he simply said he listened to the customer. what did the customer want? natural and organic, and most important, gluten free. how did he know? >> the heart of gluten free is people with celiac. or medically diagnosed. you're talking about 25 million people. then you add in their families who say, look, if i'm going to buy cereal, i'm going to buy it for the whole family. then there are another 20% who want to avoid gluten for whatever reason. >> a great spokesman for a 150 year old american company.

every single time you think the natural and organic wave, like the monster claiming that -- whole foods is back on the mend, or you hearken back to hane celestial. these companies are giving the customer what she wants. and like in retail, the customer's always right. george? montana? >> caller: a big boo-yah from big sky country. >> we are friends. it's fabulous, thank you. >> caller: i just had a quick question. with the recent romp in the price in costco, is it trading stock? >> i discuss this all the time

with jack moore. our club that we set up around stocks in my charitable trust. it had a move, we still think it goes higher. let's go to michael in maryland. >> caller: hi, jim. i'm a relatively young investor and holding coca-cola, up been the 8.5% since i bought it. i'm looking for something with a little more growth. >> i'm not going to tell you to swap out of coca-cola. i think it's a great long-term investment. and i think kent's doing well. and the possibility for a takeover after the amazing numbers we got from white wave. i would have said white wave, but that one's done. how about don in texas. >> caller: i've got a question

for chipotle. >> sure, i'm there for chipotle. >> caller: after reaching 750 in 2015 it started dropping like a rock. i bought it at 520, thinking it was done. then it had more problems and dropped to 384. now it's slowly beginning to climb. do you think i will ever get out of this hole? >> i think you should double down. they might have minus 20 sales. there was a time when taco bell was knocked out of the bus, but look at it. i think you should be -- >> buy, buy, buy! >> with chipotle. this time next we're it will look like you've made a great deal of money. the customer is always right. now that the customer's demanding natural and organic products, they want, yes, actual

taste. just kidding. this stuff always tasted great. now it's natural. the companies that responded like general mills, they have been hauj wuge winners. does ran gold have more room to run? and upstart blue mad is attempting to upend the flower industry with making petals a bigger of your work. can it work? and don't miss the fun in a rapid fire edition of the lightning round. stick with cramer!

every now and then a pattern, a pattern will catch my attention, tells me everything i need to know about whether to buy a stock or not of the take ran gold researchers, a little more than four months ago i noticed that ran gold had been slammed with five successive downgrades in a fairly short period of time, yet the stock barely bli barely blinked.

it kept getting higher and higher. it's pretty good tell that you've got a real good winner on your hands. i broke down into the story and realizes exactly what rangold was. it seemed to have a lot of upside. their stock has rallied nearly 35%. now given that rangold got hit with yet another downgrade, this time it's deutsche bank. i think it's worth looking into what explains the stock's impressive rally. how is it possible that all these negative analysts were so wrong and i was so right. not to toot my own horn. i might not have noticed it if the analysts hadn't turned so negative. it's a very well-run company, under the leadership of that stalwart ceo, mark bristow that operates in some of the least stable regions of the globe.

doing business in some places where companies won't, ivory coast. and it allows them to deliver a production growth that most other miners can't reach, because they fear going here? >> you've got to understand average c africa. it's not for sissy. but it's not as bad as you think. >> bottom of these pieces of research had to do with rangold's valuation. went from 60 bucks to 90 bucks. we got these valuation downgrades because the price of gold had gone up. >> sell, sell, sell, sell! >> assuming that the easy money had already been made and there was no way it could keep

running. >> all aboard! >> normally when a stock gets hit with a wave of downgrades it gets obliterated, but not rangold. it typically meant that big institution money managers had fallen in love with the stock. these portfolio managers liked this so much they kept buying hand over fist. fast forward toed today. with ran gold trading at $120. they're looking kind of like chumps. particularly the ones who went on and on about the share price being overvalued some 30, 40 weeks ago. but these analysts weren't just downgrading rangold because they hau thought it was too expensive.

the price of gold rallied 16% year-to-date already, while rangold stock was up a spectacular 47%. to morgan stanley, it equalled massive performance. other analysts worried about seasonal fluctuations, along with the fact that rangold was facing difficult comparisons. all together quite skeptical about gold prices and rangold's ability to deliver in what is assumed to be a difficult environment. and now, in the bayer case, it couldn't have been more wrong. first of all, the price of gold has kept climbing. that's thanks to global economic turmoil, brexit. it's up $75 from when i pounded the table in march. not only has it continued to

rally. but since the beginning of may, the stock's gotten three upgrades. most of the strength has to do with britain's vote to leave the eu which created a tremendous amount of global uncertain at this and thus spurred demand for safe-haven assets like gold. but it is more than just the underlying commodity. it does have the largest and cheapest holds on the planet. it can take advantage of the prices and it boasts some of the lowest all sustaining costs. that means rangold is much less hostage to the price of the gold. when it goes up, company's low cost means it can make fortunes. at the same time, rangold has a fabulous balance sheet, and its costs have continued to remain low. it's expanded existing mines and

opened new ones. the stock went -- investors were dismayed that it declined by 11%, but that was mostly because of temporary operational issues at the new cabali mine. and the profitability increased by 19% year-over-year. he made that strong case. hundred toi islisten to him. second, they operate only in places where gold is plentiful. they're perfectly willing to mine in unstable regions of africa, as long as they're rich in gold. it has allowed rangold to put up trch tremendous growth. they have been able to get to 1.3 million ounces as they ramp

up production at the cabali mine. nobody has that kind of growth. after such a prolonged rally, i suggest waiting for a wave of profit taking. make no mistake about it. if you want gold, even up here, rangold is the one to buy. here's the bottom line. i always say that everyone should have gold exposure in their portfolio as insurance. and if you listen to me on rangold, you made a killing this past march. now they are best of breed in goldminers. we're a talking about a paradigm. that's it. if you think gold's headed back to all-it ti time highs, with r, you found a stock that's better than gold itself. gold is its symbol. what's better than "mad

money"? how about more "mad money." follow "mad money" on facebook, twitter and instagram, to go one on one with cramer. >> reaction. what other questions do we have? ah, i always tell people you've got to start with an index fund. >> get more with guests and go behind the scenes with the most interactive show on television. >> if you can't explain in three bullets why you're buying a certain stock, don't buy! >> follow "mad money" today!

it is time! for the lightning round! and then the lightning round is over. let's start with bill in new jersey. bill? >> caller: jim, this is bill. and my question is about bx. >> yeah. bx, kkr. any one of these companies, they all need to have some equity

offerings. prenup. i'm not going to cut and run. go to jack in new jersey. >> caller: ba, ba, ba, boo-yah. from long branch, new jersey. what are your thoughts on foresight realty? >> we did a big number, and i think that's the best one of the game. let's go to bobby in new york. bobby? >> caller: hey, jim, boo-yah. >> boo-yah. >> caller: my question is on stocks in dsro. a pharmaceutical company. >> fortunately, good for ovarian cancer drug, but our history has been after they do the secondaries, we have to say don't buy, don't buy. and that's where i am.

let's go to marilyn in indiana. >> caller: hello, cramer, a big indiana boo-yah to you. >> what's going on? >> caller: some time ago you mentioned raid yeah tell. >> i like radius. bob ward's been on the show, i think it's done a really great job. i'm not going to say sell it. i think you should stick with it. let's go to joe in virginia. >> caller: boo-yah, mr. cramer. i've, back in 2011 you recommended to buy sirius logic. and crus. i'm wondering what i should do. >> you made a lot of money, that turned out to be a home run. it makes the sound for apple.

i want you to sell. let the rest run. congratulations. let's go to steve in florida. steve? >> caller: howdy, jim. i purchased 1,000 shares of kinder morgan at $38 for high dividends in my 401(k). given its performance, do i sell now? >> no, they're going to make a come back. it's okay. it's an okay situation. how about joe in new jersey. joe? >> caller: hello, cramer. >> hi. >> caller: i want to say, it's my birthday today. >> happy birthday, you and my daughter! >> caller: and this is the best present to be talking to you. >> thank you. maybe she'll say the same later tonight. >> caller: yeah. this stock missed on earnings, it's calgon. >> i'm remembering, it was spun

off by merck don't sell it. and that is the conclusion of the lightning round! the lightning round is sponsored by td ameritrade. let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and 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. impressive... what's up, tim. td ameritrade.

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that will disrupt the entire different industries we talk about on the show, that's why every now and then we go off the tape to check out with a privately-owned company at that you can't own stocks yet. consider bloom that. is commonly thought of at uber for flowers. their mobile app lets you send fresh bouquets nationwide. l.a., new york, and delivery, same-day delivery. bloom that found they could save themselves a fortune by going directly to the flower growers. we know that the flower delivery stocks like 1 hn 81-800 flowers ftd have done well. let's take a look with the

co-founder and ceo of bloom that to see how they are transforming the flower industry. >> thank you for having me. >> i understand the history, some rough patches, but you're already doing pretty well. how are you able to do that. because these are hard businesses to run? >> you know, it's really hard to figure things out on the fly, as a startup, you're figuring out new channels for distribution, to grab new customers, and it really was about breaking it down and making sure that the distribution that we have, going, sending our flowers through makes sense, and we make money on each transaction, which is a novel thing. >> not everybody is, twilio's got a lot of things going. you don't need to be in the queue. >> it took three years to get where we're at today. we started with local florists,

and then the network across the country. >> how do you find, and how do you know that they're not going to say, listen, we've got good deals with these florists. >> we've got to go visit and make relationships, these are generational, fathers and grandfather's. and we're saying we're changing the way people are sending flowers. we're going to make it relevant year round. >> it's my daughter's birthday today. she turns 25. what would i do? >> you open the app. you go simple selection of curated, fantastic blooms just like these. you would select where you're sending them, then sit back and relax. they're going to be on their way, if you're in manhattan, within 90 minutes.

let's say suburb of jersey. >> tomorrow. >> what's the latest i can do that? >> you can do that by 3:00 p.m. >> now my wife who will be upset that i didn't send her flowers, loves rose. >> you can't go wrong. >> the package seems novel. >> absolutely. >> and you have the farmers agreeing to do this. >> it's about selling the dream. okay, they know that they spend months growing these flowers. what they want is someone to present them to present them in a way as tastefully as possible. this gets people interested in the product you're selling, and we're taking just as much care in what we sell as you do in growing it. so that resonates. >> the pros, the 1-800, the one thing think can handle this valentines, which i know you call v-day. are you able to handle all the

business? because boy, that would be an important thing. >> absolutely. that's what we've spent the last couple years doing, growing our network of partners. this year, i think it was 5x volume. we went through one week of valentine's day, and we were able to handle it. >> joe montana, ashton kutcher. >> they all use it. >> yes. >> apologize for the day delay for my daughter's birthday. that's the way it is. stick with cramer. [announcer] is it a force of nature? or a sales event? the summer of audi sales event is here. get up to a $5,000 bonus on select audi models.

looks like better than expected quarter, but they do a conference call in the morning. it's always a bull market somewhere, and i promise to help you find it. i'm jim cramer, and i will see you tomorrow!

>> tonight on "jay leno's garage"... >> i might have to run from the cops. >> don't try this at home. chief charlie beck and the lapd show me how to clean the streets. >> close the gripper. >> i learn how dan aykroyd went from bluesin' to becoming a man in blue. >> pull over right now. >> and "batman v superman" director zack synder sheds some light on the dark knight's latest wheels. >> what makes the best crime fighter? is it training? >> turn. turn, turn, turn, turn. whoa, whoa, watch it! >> equipment? >> the batcat has saved officers' lives in the city of los angeles. >> diet? hamburgers with adam west, the batmobile. this is the greatest day ever! nah. it's all about the vehicles.