>> target tgt. >> foot locker buy a downed injection ger. >> guy. >> fun, fun, fun. >> this will get you done. >> i'm melissa lee. see you foreman forwatching. "mad money" with jim cramer starts right now. 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. other people want to make friends, i'm trying to make you some money. my job is to educate and teach you. call me at 800-743-cnbc or tweet me @jimcramer. the dow dipped 48 points, the s&p sliding 2.8%.

you need to understand it's seemingly unrelated developments can actually have a lot in common. i'm talking about the unveiling of apple's new smart music device, the home pod, and the departure of mickey drexler from the top job at j. crew. what does a high end speaker system have to do with the resignation of a retail ceo? they help define what's working and not working in this crazy stock market. if you don't know mickey. he's the legend who turned gap into a powerhouse and left to ignite j. crew. he succeeded behind his wildest dreams at crew. that was his second second gig. people tend to forget that, i don't. seven years ago, he was doing so well, he and two different private equity firms took the company private. for the next several years, things went well for mickey.

like so many others who sell apparel, particularly in the mall. things started to go down hill. the same store sales have been down for 11 of the 12 lost quarters. not unlike a lot of others. given that mickey is one of the greatest clothing retailers of all time, there have been tons of stories about how he's struggling. you see, no one who runs a stand alone apparel chain is doing well these days. you name it, from urban outfitters, macy's, jcpenneys, neiman-marcus, nordstrom. apparel has been disastrous. the reason? i think it has to do with brand loyalty. there is none. even a few years ago, you wore crew, you know what you wear now, you wear clothes? in the old days you liked crew

style. now you wear whatever you saw last. even louisiana lemon. i think lulu has beaten back "lot of the competition. but in the age of amazon. where driving to the malls -- mickey couldn't entice people to go to a place they didn't want to go to begin with. who cares how the stuff looks if no one's there to see it? traffic, not the merchandise itself, is the real retail killer, as we heard today in a difficult presentation by macy's. which saw its stock drop 8%, to a 52 week low. pvh which we had of all time, has done a fabulous job putting

together a house of brands. i would argue that manny's best move was diversify away from the united states where the real growth is, his second best? keeping inventories lean here in america. although it's important to point out that one of his designers of calvin klein just won the men's and women's designer of the year awards, which will boost sales in the big department stores come the fall. that's another reason to own that consistent company stock. really the only one i'm recommending in this group. pvh, it's the exception. macys is becoming the rule. just think about the landscape. remember when underarmor was all the rage? now it's all the rage at tjmaxx, that's not where you want a rager. remember when victoria's secret couldn't miss? now it condition the hit. urban outfitters used to crush the numbers with fashion? now they're talking about how fashion is difficult. that's code for loyalty. or the lack there of.

young people don't go to the mall to hang or peruse. they're laser focused, head down, getting what they want and going home. that hurt crew immensely. it's hurt the whole sector as we recognize that this country is dramatically overstored. it wouldn't surprise me to see as many as 7,000 stores this year, turning some malls into ghost towns many crew had a worse balance sheet. the darn thing hasn't had to file for bankruptcy. i know, low bar. but it was able to attract top talent in the form of james brandt. the man behind the success of williams-sonoma. i wish him luck, given the current landscape, he'll need it. what does any of this have to do with apple? other than mickey drexler is a former board member on apple for 16 years. despite all this internet mediation, apple's got the best brand loyalty in the world. i know, it's covered by these tech analysts, the best days are

behind it. the loyalty is the key to the earnings per share, it's the key to why warren buffett became the company's largest shareholder. see, apple's charging $349 for its yet unseen home pod. get that, the amazon echo is at 179. yeah. and you know what, even though this thing is much more expensive, i think it's going to have a lot of takers, why? even as the wall street journal asked, home pod first look, hey, siri, what took you so long? i think the answer is crystal clear to the apple lovers out there. what took so long? they took their time, they wanted it to be perfect. see, apple's phones are the most expensive phones in the world. they force the phone companies to pay full boat, the carriers don't bat an eyelash. the customers want them. when apple develops a new ipad,

tens of millions of people want them. they go to the apple store, they see them, they're blown away. apple develops a sound device, we know it will be the best. i love my echo, it's really cool. i asked it to play coltrane the other day. i got a fantastic array. the sound didn't blow me over, it's going on there. okay, well, it played coltrane. it knew coltrane. there you go, i have a logifech bluetooth speaker. i like it okay, pretty good sound. i'm an audiophyle from way back. nevertheless, i'm still going to ask for a home pod for the holidays, i figure tim cook wouldn't be releasing it, if the sound weren't better than whatever else is on the market. i'm not saying i'm insensitive to price, i am saying that my

loyalty to apple's brand has never been unrequited. don't you increasingly believe that most apparel is generic? my daughter bought me a 55 incher the other day, i didn't ask which maker. i figured it would work no matter what. same with the fridge and washer and dryer. i recently bought a terrific bike. i had never heard of the brand, i love it. in each case, i used to have a brand i was loyal to, to me, it would have been herecy at another time to trade away. that's what mickey drexler ran into. i don't sit there and say, i need to have crew. i don't say i need to have anything. yes, when it comes to the ult ultrahighest end clothes, there's some loyalty. i buy my casual clothes at

costco. or i buy on amazon. i don't want to browse the mall, i want to get in, get out, period, just like everyone else. the bottom line is, the apple has the kind of customer loyalty other brands can only dream of. it's why we pay that price for this stock. with the home pod, my biggest worry, i think i might get too many of them. will my daughter communicate with my wife? or will they both give it to me? i mean, they know i want it, i want something apple makes, that's enough for them. it's enough for me. bill in pennsylvania, bill. >> caller: mr. kramer, thank you for taking my call. >> my pleasure. >> caller: a little while ago b & t foods were a $50 stock, now they're having a hard time holding 40. what's your comments or thoughts on b & t foods? >> it was okay. i like growth, okay? if if i want food, i like growth. i don't want the 4.96% yield.

i like pepsico. you say, wait a second -- you want to buy # 200 shares, you hope something happens with the fed. they're having a good quarter. and a good year. why? because they're better than the other people. how about we go to rex in my home state of new jersey. rex? >> caller: boo-yah from sin men cen, new jersey. >> i acquired pandora simple p, and it's making me lose sleep here. verizon considering investing in th them. with all the rumors, do i sell my position in pandora now or hold it? >> here's my problem. i don't care where a stock comes from, i care where it is now. is it too low to sell? i don't know, i think they did that piece a paper, a lot of people felt that was -- because

they're able to take it over. i don't think they're going to get taken over. i think you have dead money. dead money is not what i want, but perhaps you're willing to ride it for a while. i don't see anything beyond that. let's go do michael in california. michael? >> caller: hey, cramer. i use yelp heavily for their reviews, while i was reviewing my stock portfolio i came across them. is yelp still a tasty stock or has it spoiled? >> i like that last quarter from yelp. they were thinking maybe stocks completely lost it. this was a quarter that said to me, yelp like distill low can stay independent and if amazon, google, if all these suspects haven't killed them yet, i think they're going to make it. yeah, i'm okay with yelp. when it comes to what's working in this environment, loyalty is key. loyalty per share, apple's got it, j. crew unfortunately suffers a different fate.

"mad money" tonight, palo alto surged on earnings last week. a potential for true turnaround behind the firewall? when will oil really go higher? i mean, not like 48 cents higher, but real? one company holds the key, i'm going to reveal it, and then beauty may seem ugly so far this year. over the 5% rise today, is their beauty beneath the surface? i've got the exclusive. stick with cramer.

will you be ready when the moment turns romantic? cialis for daily use treats ed and the urinary symptoms of bph. tell your doctor about your medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, or adempas® for pulmonary hypertension, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have a sudden decrease or loss of hearing or vision, or an allergic reaction, stop taking cialis and get medical help right away. ask your doctor about cialis. and get medical help right away. ...you realize the smartest investing idea, isn't just what you invest in, but who you invest with. ♪

sin men sin. cinnaminson. what do we make of the cyber security stocks here. many former market darlings getting totally obliterated.

the fast growing company that pioneered the next generation firewall. here's a stock that spent two years getting hammered. peeking just above $200 in july 2015. and sliding lower and lower. it all came to a head at the end of february, when pail low alto told us some changes in the sales organization had a tough effect on its numbers. and the stock lost 20% of its value the next day. the darn thing kept sliding until it bottomed. palo alto seemed like it may have gotten its group back. the stock is up in just two months. including a gain last thursday, in the wake of a much better than expected quarter. much higher than expected revenue, excellent guidance for the next quarter and the full year. has palo alto gotten their house in order? let's take a look with mark mcglocklin. here's the chairman with

paloalto networks. welcome back. >> caller: thanks, jim. >> you told us in the previous quarter, we're having some sales organization problems, we're going to fix them, the numbers are coming back. a lot of people are skeptical, isn't that what a lot of people expected? >> caller: we had a sales force work through. we are very pleased to see the quarter came in better than we expected. >> it looks like you have taken business away from the larger companies. can you talk about some of those wins. >> we're acquiring customers at a rapid rate and growing them after we acquire them. we had the second highest new customer acquisition in our history. in q3 with over 2,000 new customers. most of them are coming from our competitors we continue to take customers at a high rate. >> a lot of people feel you're goal oriented.

that's not true. people have their own cyber security, but the fact is, they -- i was with gary from prupoint yesterday, they all talk about you as a good partner. >> well, you know, security's a complicated space, and no one company can do everything. at least that's our philosophy on that. we've been trying to team up with folks who are doing an outstanding job in their portion of the ecosystem. we do a very good job in our portion. what customers ultimately want is for them to do less integration themselves. >> let me ask you how seriously we're taking this, do you ever advise that internally an organization, they ought to have a red team and a blue team, where the red team is always trying to penetrate what you have, and trying to figure out what the bad guys are going to be up to, and the blue team tries to stop them? >> yeah, that's a familiar concept from the military, actually, the -- in companies of certain sizes, can do that, where they can deploy red teams,

blue teams. regardless of whether you can red team your environment, what's really driving the need for security these days is increasing levels of automation and oerk station. particularly for smaller companies, they don't have the resources to keep up with all the complexities of cyber security. what we're trying to do, we think we're leaders here, is create real platforms. a lot of leverage that drives simplicity, because we're fighting a highly automated a adversa adversary. >> you have to drive -- the directors on these companies were picked long before there was a cyber security threat, they must not understand any of this, and think it's mumbo jumbo? >> yeah, i talked to boards all the time. i had a couple boards in last week, what i always tell them is, here's a simple way to think about things, go back to your cio, your chief security officer. think about the level of automation the adversary has, and ask how many people have to touch each attack that comes

into your organization. if your answer is, you're not driving down people. you don't understand the nature of the problem. >> one of the things i learned yesterday. there were cyber security people who were saying, listen, in europe, not as involved. i know you have a great international quarter. some of the kbanks and some of the other people with ransom wear pay in bit coin. one of the reasons bit coin has gone up so much, are these institutions that want to hide from regulators and pay off. have you ever heard anything like that. >> there's going to be these new currencies. i think this is the reality for the future. they can become convenient when they're used in these directions. the things like ransom wear, which is how you pay for things. we have to deal with the fact

that new currencies are here to stay you don't fall subject to ransomware. >> when you go in, do people recognize that you'll get in trouble with the government if you don't spend the money? >> there's a purchase like that in europe that came out recently, which is a stick care rot kind of approach. the government recognizes it's a big deal, and they want to drive the industries to upgrade their cape abilities. so we can be as advanced as possible. it's a good thing. >> when you said at the beginning, when you talked about that reorganization, you think you're the early innings of that, it would impress upon me the idea that not only things are back on track, this quarter itself, you're winning eye lot of business. >> well, in the third quarter we won a lot of business. our expectations are going to

win more business. we see 20 to 23% growth these are big numbers we have to take down. >> chairman, ceo of palo alto networks, thank you. >> i think the guys are back. the stock is not expensive relative to where it was, and obviously, i think the cyber security is of the utmost and we're not spending money on it. coming up, is this stock a sight for sore eyes. >> cramer sits down with the ceo of elle cosmetics when mad money returns.

bp uses flir cameras - a new thermal imagining technology - to inspect difficult-to-reach pipelines, so we can detect leaks before humans can see them. because safety is never being satisfied. and always working to be better. your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $509 on auto insurance. call for a free quote today.

liberty stands with you™ liberty mutual insurance. welcome to holiday inn! ♪ ♪ whether for big meetings or little getaways, there are always smiles ahead at holiday inn.

if oil can't mount a major advance on some insane middle east friction, real tension among the gulf states that export 30% of the world's crude oil to starve markets, what is it going to take for black gold to really move higher. some of our regions start feuding with each other? if you were not an oil bull before this moment, you have to question your thinking. i'm not asking a rhetorical question. there is an answer. and it's buried in these schlumberger conference call from last quarter. they talked about oil stabilizing and going up only when the deep water oil wells begin to run out. and there are no new ones to take the place. when it comes to supply and demand, schlumberger knows more than anyone. they saw the downturn in crude coming, saying, there is no bottom coming in 2017. if you wan the to chart their

words, take a look at its stock which took a downturn when it refused to call a bottom on its conference call. that's unlike everyone else in the industry. why? the real deep water wells, the ones that have far more capacity to produce oil. the single good shale prospect today are still in fabulous shape. there's been no need to drill new ones. worse, even our own country, the big offshore wells are producing monster amounts of crude right now. the ones that were drilled off the maconda oil spill -- that's almost 300,000 barrels a day more than last year, you want to know where that glut is? there you go. you may think we can put back on production at some point? the opposite is happening. the one thing that's in the oil bull's favor, and schlumberger

has been telling people this, most deep new -- most new deep water projects around the world have stopped, okay? and they've stopped for two years. that's the chief reason why schlumberger's earnings have been sub par versus halliburton. by late sometime next year, some of the older deep water wells that have been producing such sumptuous amounts for years, will begin to experience decline rates. only then will oil prices get tighter. it will take too long for new projects to come to the market. when that happens, it will be the first time the bountiful shale oil comes into question. right now, we're still in the grips of speculators. according to carly garner, who's made this point on and off the charts and been dead right for us. those speculators have too much oil in their hands. you can't expect a panic

liquidation of these people to start until oil creeps down to $43 a barrel. $5 below where we are now. all the stocks will remain perilous until we work our way down there. we are in the grips of fast trading hedge funds, not actual producers and consumers of oil, until these deep water wells start to decline. that's going to take another year. until then, we're going to be in boom and bust mode among speculators, not oil producers. that means, regardless of demand we'll likely keep playing back and forth with the worst possible holders and a ceiling of 50. i know it's a subdued forecast. but it's from the best of the best, schlumberger, and it's distinctly against their interest to say these negative things. today's little oil rally is another move that should be faded by friday, when the recount number comes out, and likely sends us right back to where we started from, if not

lower, this time around. let's go to steven in washington, please. steven? >> caller: boo-yah, my question is my oil stock has taken a hit, my question is, do you wait for my stock to hit close to a 52 week low or buy it now? >> chesapeake, this is -- it was really cool in new york today, i wish i had a coat. you need like 85 degrees global warming par excellence happening right now to get that stock rolling and it's not. it's too cool out. chesapeake's the barometer for the weather more than it is for their fabulous drilling techniques or their places where they have their supply. let's go to randy in michigan, randy? >> you are the man. i'm calling about range resources, they have most of their production hedged. the lowest producer, one of them. and yet they keep getting dwriled.

what's up? >> they do not have enough pipe out of that area to take that natural gas to market. and their cost is very low, it's not as low as capital oil and gas. it's so cool out, range is a great long term situation, which is short hand for, you're not going to make any money right now. >> justin in new york, justin? >> jim, it's justin in staten island. what do you think about vale? due to the rise in the electric vehicle 12re, will they say more cobalt and lithium? >> it's really much more of a play on iron. i'm watching the baltic freight index go down day after day after day. i don't like the iron trade, i feel like there's -- i think that freeport, which is copper and gold holds in better than zral lay, i'm not recommending those stocks right now. i can't get behind them, i think that there's too much uncertainty in the world. sorry oil bulls, it's time

to question your thinking. until supply tightens, oil prass may not be headed higher, i am getting that from schlumberger, they know more than anybody. with a five percent rise today, can the company take a hit? where are these financialed heading? and rapid fire in tonight's edition of the lightning round. stick with cramer. tomorrow, kick off the trading day with sidewaquawk on street, live from post nine at the nyse. >> this thing holds up like -- i've put this through the washing machine, it's like a timex. i've run it over with an abrams tank and it's still ticking. a ,

we are in the era of the selfie, it's fundamentally changed things for the cosmetics industry. according to the days we could go outside without make-up, including me. these days, everyone has a high def camera in their smart phone, you need to get all dolled up before going out the door. that's a big reason why you will ta beauty and estee lauder have been roaring up 20 to 25% respectively. it came public last september with the stock that stalled of late. after pretty impressive start as a public company. behind it the whole way, elf stock, feels like it's lost it here. even though the company reported a strong quarter, and the analysts remain constructive. the fly in the ointment? the end of march elf did 8.43

million. a lot of stock for this one. the stock got hammered, it's up a dollar 43 today. let's take a closer look at the ceo of elf beauty. become back to mad money, see you, sir. let's get started with what i think hurt the stock. we did see a slowdown april scanner data, and for dynamic growth company, you'll see month to month viability. that was may 10. i'm hoping that was month to month, and we're back on target. >> well, we are, you know, the key thing to remember with us is, even in q1, we reported 15% sales. >> i know, but you dropped. you know the stock was flying until you said that? >> yeah, we're -- at the same time, we also guided this year, that we're going to do 24 to 28% sales growth, particularly in

our industry that is incredible growth. we reiterated that sales growth. >> i know there was a lot of supply. it finally looks like it's being chewed through. i'm the stock guy, you're the cosmetic guy, it feels less heavy so to speak. we believe that this is a long term growth and play. for those who are fickle, maybe this isn't for you, for those who believe in the underlying thesis is, we make extraordinary cosmetics, high quality ones that are accessible to consumers, this is a great. >> one of the things i really liked, i said within the next paragraph of the conference call is, you have -- because you do so much socially -- you do so much -- the social engagement, you've been able to leverage algorithms and machine learning across key social properties. we hear machine learning all the time. finally we have a product you

can tell us what machine learning does. >> what are you seeing that allows you to come up with these products. >> that was an investment we made in an analytics company, we have over 130,000 reviews our users are incredibly engaged. they're so engaged they'll tell us about it, we look at those reviews, we look and are able to go through, and see, what are consumers looking for next. that guides our entire innovation program. we launched over 21 items in the last quarter alone. >> i think also, you have said, when we spoke in february in san francisco, we were talking about innovation, you have since come up with a device, the massaging eye wand, that is in response to what the reviews said, or people or customers say? >> yeah, it's a build on our skin care launch last year, our consumers who are in their 20s, when they thought about the skin care market, many of the

products are promising anti-aging and wrinkle relief or acne. a 20-year-old is not interested in any of those. she wanted great hydration, and great protection from the environment and pollution. what we are able to do is build on that skin care platform. we have an incredible innovation platform on skin care, we introduce this massaging eye wand, when you apply, it helps you apply night cream. you touch it against your skin, it vibrates and provides gentle heat to work in the products. it's part of our overall skin caroline. it's online right now. we put it online first, and see how the consumer reacts and the consumers have loved this idea. >> i love the online distribution, but you have a great deal with target. target has been struggling. are target's problems conceivably and potentially your problems? >> target has been a great partner of ours. and they rewarded us this last

year with 50% more space. we're in the process of resetting those shelves. even a few years ago, when they had that credit card issue, elf has been able to grow regardless of the economic cycle, regardless of what's going on in the broader category. and we'll continue to grow as we have. >> you know we're big fans of ulta. we're also big fans of walmart. how are you doing with those two? >> we're excited about growth. we continue to have incredible growth at walmart. ulta announced they're going to be putting elf into a subset of their stores? >> "thought that was a great conference call. they put mac in and elf in. season the that where we're going? >> i believe so. >> i don't get the stock, i get the company, and the company's doing the right thing. >> that's what matters. the chairman and ceo of elf beautyp think i the story is on

course. think again. this is the new new york. we are building new airports all across the state. new roads and bridges. new mass transit. new business friendly environment. new lower taxes. and new university partnerships to grow the businesses of tomorrow today. learn more at esd.ny.gov

it is time for the lightning round.

>> the lightning round is over. are you ready? time for the lightning round. let's start with miguel in tennessee. miguel. >> caller: cramer, a big boo-yah from tennessee. >> i like that attitude, what's going on? i have this in the chair, sirius satellite radio? >> i like the stock very much. what does that tell you. ray in iowa? >> caller: how is it going cramer. thank you for an awesome show and having my back. a big boo-yah to you, my friend. >> we were in iowa, did one of our greatest shows in iowa. i love that state. >> caller: iowa city. i'm interested in a mix of health care and tech. i think 24 is it a great stock.

>> it's in a 52 week high, if they miss it will be cut in half. i think you're playing with fire with teledoc. >> boo-yah, jim. tomorrow night, going to be a big night. >> all right, what's up. >> therapeutic. >> i think the move has been made again. it's interesting. i think that people keep thinking that great things can happen. let's go to ron in new york, ron? >> ron from oceanside, long time viewer. >> we're doing great, how about you. >> a little disappointed in the mets this year, but we're hanging in there. >> you can be from philadelphia and you're beyond disappointment. how can i help?

>> neighbors industries. >> you're a bottom feeder, a flounder, i say no. the hook is in you. we're staying away from neighbors. john in texas, john. >> i'm here looking at that. >> keep looking. don't pull the trigger. >> marcos in florida. marcos? >> how you doing, cramer. >> i love your show, i love your show. >> i've been trying to follow up on buying shares of shopperfi. >> this is an online platform that is working, no one believes in shopify but me. >> let's go to jim in connecticut. >> caller: thank you for taking my call. >> you're quite welcome. >> caller: i recently moved into energy transfer partners, etp. and i think i have been -- it looks like it's going to hold

the low spot on the chart for some time. >> that's because the guy who runs it rolls the dice, he feels like he's in -- i mean, the guy is in wind. he's in las vegas sands with this company. i say absolutely not, i don't want you to touch it, never reach for yield. it ain't worth it. let's go to brian in new york, brian? >> boo-yah jim. i love the show. >> there he goes. loves the show. thank you. >> caller: watt, what up. >> another speculative power company. you know what, this reminds me of fuel. i want him to come on. explain losses as far as the eye can see. it's way too speculative for me. trudy in oregon. trudy? >> this is trudy from oregon. >> i know exactly where you live fabulous area. >> it's beautiful. >> talking to you was on my bucket list, and you're even better than larry kudlow and joe

kernen. >> there you go. and that's a high bar. >> caller: i want to know about puma biotechnology, pbiy. >> i think you wanted to know about that last week before it went up 30%. it's too high for me. i have to say icksnay. that is the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade. 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. see options data like never before. with thinkorswim only at td ameritrade. prone jar shatterst livthe competition.pe? olay regenerist hydrates skin better than creams

costing over $100, $200, and even $400. fact check this ad in good housekeeping. olay. ageless.

this should be the best of times for the financials. why? for starters, we entered this week with the dow, the s&p 500 and nasdaq each hitting all time highs. the rising stock market especially the bank books. we have a major federal reserve meeting approaching next week. where the fed is expected to raise interest rates again. the bank stocks are not on fire here. they're actually lagging the recht of the market. tonight we're going to go off the charts, figure out what the stocks are up to. we're going to do it with the help of ed ponce. take a look at this daily chart of the s&p select financial spider etf or the xlf. which is widely considered one of the best bell weather sectors. and that's -- next to it is the

spider s&p 500 in green. because there are so many large bank stocks. ponce says it would be difficult. this is what's happening now. s&p as a whole is in in fuego. these two cease to verge about three weeks ago, may 15th. since then, the series has made a higher highs. breaking out to a new all time high. while the financial index has had a series of lower highs. it's possible that investors are selling the bank stocks in order to pour into sexier sectors. i say, who can blame them? some of this is also driven by the tech themselves. check out this individual chart of the s&p financial etf. hideous. they have their own story to tell.

despite the fact that all three of the major market wide indexes have been making highs of late. the xlf is nevertheless one of the most negative chart patterns around. the dreaded hidden shoulders formation. it's called that because it looks like a head between a pair of shoulders. not because the stock market is some kind of a version of anti-dandruff shampoo or something. i do like proctor here. right now, they're trading at $23 and change. if it breaks down below the neck line of this pattern, half a dollar below where it's trading. it can trade below 21, roughly 10% from where it is now. boy do people want to get ahead of that. tf looked like it was going do break down. it helped. once again, they were bailed out

by dip buyers. that's ponce's point. while the financials don't seem to be getting much lift, it kept them from breaking down. i want you to look at this chart. the big s&p 500 etf. on april 13th, the market bottomed after a brief decline and roared higher, on may 18th, same thing happened. ponce thinks that's what back stopped the decline. unfortunately, that's the only reason why the bank stocks haven't totally cratered. he's not saying the bank stocks should be shorted. although i'm sure some of you will do that. the crux of what's happening is what's happening with the 10-year treasuries. again and again, the banks do better when interest rates go higher. that's why we're so eager for the fed to raise interest rates next week. the banks make more money.

we have to look at what the fed does and actual bonds. higher rates 3450e7b the banks can start charging more money for loans all of a sudden they're making fortunes off your des deposits. your rate is not going to go up nearly as much as it will for the borrowers. happened again today. the ten-year rallied hard and the yield got slammed down to 2.14%. this is something interesting. the yield on the ten-year is almost back to where it was before the election, where everybody got more bullish, everything took off. the price broke out to new levels on the upside. some people might read this action as suggesting that the economy is weaker than it seems, and maybe just maybe the fed might not tighten next week,

like it signaled it would, i know that seems a little crazy to me, with the economy in full employment. crazier things have happened. the other possibility that there's a worldwide shortage of safe bonds. rates in much of europe are negative, which causes investors from overseas to swap in u.s. treasuries. either way, don't outthink this. my view, here's the problem for my perspective. the u.s. banks, the major ones, i think they're pretty well run now. they run up a lot earlier this year, as leaders of the trump rally. on top of that, many investors bought these stocks assuming the white house and republican congress would be able to deliver some major financial deregulation of the kind that needs congressional approval. so far we've seen nothing on that front from washington. part of the week this year, stems from the fact that the administration can't seem to get its act together. i understand why ponce's wary of the financials. here's the bottom line. well, no, the oils. here's the bottom line.

the charge is interpreted by ed ponce, we need to be cautious about the banks here. much will be forgiven if the fed bites the bullet. if for some aren't fed hesitates or goes soft about the next hike, ponce will look like a genius and the bank stocks, will get clobbered. stick with cramer. [vo] when it comes to investing, looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock.

won't replace the full value of your totaled new car. the guy says you picked the wrong insurance plan. no, i picked the wrong insurance company. with liberty mutual new car replacement™, you won't have to worry about replacing your car because you'll get the full value back including depreciation. switch and you could save $509 on auto insurance. call for a free quote today. liberty stands with you™. liberty mutual insurance.

two stocks that aren't done going up in my opinion. advanced micro. they are very much in sync with all the different apple iterations that were announced. and oled, universal display getting more and more content into the apple lineup. those two heavily shorted, i do like them. like i said, there's always a bull market somewhere, i promise to find it just for you. right here on mad money, i'm jim cramer, i will see you tomorrow.

>> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ first into the tank are erika welsh and keeley tillotson, college students with a business they created in their dorm room. hi, i'm keeley. and i'm erika. we founded our company, wild squirrel nut butter, this january as sophomores at the university of oregon. wild squirrel is seeking a $50,000 investment in exchange for 10% equity in our company.