check out dba etf, that's a way to wedge inflation >> amanda and osofia, they crushed it crushed it >> tlt >> that bad. good effort. i'm melissa. "mad money" starts 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 i find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica i'm just trying to make money. my job is not just to entertain you, but educate and teach you so call me tweet me @jim cramer i'm letting you in on something real big the method of my madness i know this is the craziest, and

most bizarre thing on just business tv, but television in general. a one-man show about business? i also know you won't find investing advice this good unless you're one of those people who tunes in to see if this is the night that i actually do go off the rails it's always a possibility on any given night. sorry, guys, there's a tape delay. going to happen one day. but i do my best so it doesn't this is the method to break from strictly quoting the bar to my madness. how do i pick stocks you always ask me that why do i tell you that some stocks are worth buying now or on the dip instead of, hey, tomorrow, that's the question that everybody would like to know so tonight i'm going to give you pieces of the answer let's get rolling. one of the easiest ways to identify the names, they won't necessarily show up on the show,

is by watching my favorite list when i was, frankly, a little boy in 5th grade i used to look at the in you high list. i thought it was the guys that were hitting better than .300 in baseball that's especially true when the market is in bad shape what's it tell you when a stock hits a new high? either that it is part of a genuine bull market or there are sales momentum or maybe a sector does which is often responsible for a stock's increase no matter how they get there, many stocks in the new high list often keep going higher. it's really a list of "a" students that are worth investing in the "a" students tend to repeat themselves like the really smart kids in school like the bottom from 2009 and any market, by the way, that doubles from the bottom, has to be considered a great bull market even as i know so many resist

such labels, we saw the same stock would hit new high after new high after new high. following them was a great way to make money, even though the bears would claim the bulls were false and couldn't be trusted. obviously the rally since the bottom is more like the exception than the rule over time in all the years i've followed the market but generally speaking, things have continued to work these stocks typically represent companies that are best of breed. always remember that phrase, because it's integral to "mad money. i'm not saying that just so you can chase stocks that are hitting new highs because they'll keep going higher. i'm saying that if you want to identify stocks that are winners in the future unless there's a big sea change in the market, causing a gigantic shift dramatically higher in interest rates, looking at the bigges winners of the present is a pretty good place to try to figure out the future.

let this list do it for you. it's already been scrutinized and scrubbed that's the thing about the market it's not always that hard to play once you understand that there's often more continuity than change. things pretty much keep going the way they're going. until something major shifts then you do alter the course the course changes can be pretty radical. that's why you always have to be reevaluating your ideas and should never dig in your heels when the facts change. something we emphasize over and over again here, and all of my books i've written, save my autobiography, which is more of a score settling tone, settling scores with myself, of course. it isn't called "mad money" for nothing. but you know what? when you're hunting for the bull market like i always do here, looking at the new high list is a place to begin i just don't pluck names och the high list because they'll keep going up that's lazy and irresponsible.

i anyone who sees my insane tweets at jim cramer, that's right, knows, yes, that is -- some people say, is that someone else tweeting for you who else would get up that early? you can't do that. of course, do you ever sleep well, no at least not for any long stretch. i play the same standards of rigger to this show that i used in my old hedge fund what i do like to do when i'm hunting for stocks and what you need to do is wait for the fabled pullback from the new high list. because that is the best place to put money the pullback, and there i'm thinking about something that could be two or three, preferably 5%, that gives you a good lower price entry on that list i'm not telling you to chase momentum you should always be conscious of price and, therefore, try to buy on weakness like you want to sell

in the strength. most people can't pull a trigger, i'm telling you if the new high list comes down, i would be your man. i don't want you to look at the new high list as your shopping list it's a jumping off point albeit a very important one for those trying to get started. poring over the new high list would identify the potential, and i stress that word, potential stocks to buy. you only buy from the new high list if you're confident it will make a comeback for reasons having nothing to do with the market do the same homework that you do in buying a new stock. you must have conviction even if it's a cynical conviction that the stock is going to go higher. i'm really saying, cynically, i know the buyers go crazy about it me, i accept they're just pieces of paper you know the big boys can't resist growth stocks, right? they will always come to the support on down days the biggest caveat of all when shopping for stocks pulling back

from the new highs, make sure they're pulling back for a good reason don't go buying a home builder that's down if interest rates go up if they initially get hurt for the quarter. by the way, don't buy a big independent oil stock when the oil goes down for three straight days that probably doesn't belong on the new high list anymore. you're looking for a stock that has bristol-myers-like strength. almost nothing has to do with bristol-myers. deal with a momentarily damaged stop and not a troubled company going down, down, down another key part of my philosophy, if the fundamentals hasn't changed, the stock hasn't changed. now, more than ever, thanks to the fact that stocks are traded like commodities by ultra-levered hedge funds that cause sell-offs that don't make sense in anything, more powerful than the stocks themselves, you see the stocks and good companies pull back from their highs for nothing that happened to do at the company nothing to do with the company

or the strength of the underlying businesses. those are the buy. buy, buy, buy! if the fundamental picture changes, that stock is no longer a candidate. sell, sell, sell the story has to be intact or this method will let you down. i tend to like stocks that have pulled back. just enough, but not too much, all right. i have to tell you, 8% is the historical operate mal level of a pullback less than that, you know what, you're going to be early for some of them maybe indeed something is wrong with the stock, you just don't know 3, 5, 8, those are all important levels, 8% level, i've made a killing when i buy them down 8%. watch for stocks that have pulled back from the new high list because of a broad market sell-off some of the best picks have come out of this process. it's my getting to work shopping list hopefully some of yours can, too.

let's start with ar zella in ohio arzella? >> boo yeah to you >> boo yeah right back. >> i'm trying to get a better insight on a mutual fund are they a good way to diversify? >> you know what, i've got to tell you, arzella, here's the problem. a lot of people have 401(k) where you have to have mutual funds and you can't pick individual stocks. for that they are. i like to have 20% international, 50% growth, the rest will be kind of a balance situation, maybe a fund that has some bonds you have to depend on your outlook and your age but yes, mutual funds are fine look at some of the performance records in morning star, that's what i do. stewart in florida, stewart? >> caller: jim, what's the best time to use stop orders after you purchase a position? >> we're not going to do that. because you see, if we're going to trade actively, we're going to have to pay attention to it if we're not going to trade, we're going to invest. what could happen?

you'll have sold the stock and it bounces right back. you'll say what the heck happened we don't play it that way. we invest on "mad money. we're not traders. we invest. there's a method to this madness, and tonight i'm reviewing it all the first method, look for stocks that have pulled back from new highs, especially because of a broader market sell-off having nothing to do with the individual stock. that you want to pull the trigger on stay with cramer

we, the tv loving people, roooooaaar!!! want our whole house to be filled with entertainment. easy boy! but we don't want annual contracts and hardware. you scoundrel! we just want to stream live tv. and we want it for 10 dollars a month. (batman:raspy) wow. i'd like that in my house. it's a very big house. yeah, mine too. look at us. just two bros with sick houses. high five. directv now. a big streaming deal for $10 a month. it's entertainment your way.

yeah, and i can watch thee bgame with directv now.? oh, sorry, most broadcast and sports channels aren't included. and you can only stream on two devices at once. this is fun, we're having fun. yeah, we are. no, you're not jimmy. don't let directv now limit your entertainment. xfinity gives you more to stream to more screens.

welcome back to tonight's methods to madness special i'm reviewing some of my best tricks for buying and selling stocks truly timeless investing wisdom for the ages, i hope next up, how do you find stocks that are great buy earlier i was talking about picking off stocks that have pulled back from the new high list because you get a cheaper entry point into the stock that's a proven winner you don't want to buy names off the new high list, you can usually get a better deal maybe down 5%, 7%. there are very few occasions when buying a stock right off the new high list or that close to it is justified sometimes the stock is so high, you've just got to buy it whenever you can, as soon as you can, because it may not go lower anytime soon you won't find these often, but when you find them, remember not to buy aurl at once. if you want to buy 100 shares of stock, you think it's got so much mojo, buy 25 shares worst that happens, it gets

higher, you grab a quick profit. find another stock believe me, there is always another stock to find. i've got an exception that it's okay to buy a stock right around its high if you see insiders buying the stock when stock's up a lot already, i'm going to give you a total buy, buy, buy green light. but in my experience, it's rare still at this method of picking stocks doesn't work out, see, i love it when insiders buy after a decent run that's a great sign of confidence that they think the run is just beginning or there's a big runway ahead and they're sure that it's long lasting. remember, you can't flip a stock immediately if you're an insider buyer. you have to wait six months. it's the law people are seeing things that they like that aren't going to disappear in six months' time. normally insider buying ranges from being meaningless to a small but on its own insufficient reason to buy a stock. a lot of times you'll catch

insiders buying a stock, they want to create an illusion they're doing better than they are. insiders aren't stupid if they're seen buying even small amounts, the market will smile upon them. that's fair. but we ignore the most tiny insider buying, because it could be kind of flimflam. we also used to call it painting the tape makes it look better than it is. that said, when you get truly colossal insider buying, you might want to take another look at the stock in question it's a pretty powerful endorsement. when the insiders buy a whole lot of stock, it's the volume that declares the sincerity. we're only focusing on one insider buying right now, stocks that are running and not known as historically cheap. there's nothing more arrogant yet telling when an insider backs up the truck for his own stock when it's rolling along at a pretty good clip they're saying, yeah, we know, we rock! and we're so darn confident, it

will keep going higher, we're going to buy some shares right now. we're not waiting for a pullback arrogant, sure, but i see it time and again corporate insiders aren't fools. with notable exceptions. if the stocks are on a tear, let's assume they're buying and they do know something not everyone deserves the benefit of the doubt in this business the financial crisis and market meltdown in 2008, i know a lot of people think all ceos and executives for that matter of a bunch of crooks, frauds, and especially those who got burned owning the old, say, fannie mae or lehman brothers an unwillingness to believe anything positive is something else entirely. if you're going to own stocks, you need to be willing to extend some measure of trust to people who own the companies that you own shares of. what else could be going on? we had a massive amount of

consolidation of late. airlines, rental cars, entertainment. perhaps these executives are buying stock because they hear the footsteps. maybe they've been contacted by some other company to turn that company down spur overtures happen all the time executives expect they may be next it could be a healthy, honest reason to buy. a lot of times you can just get a phone call and say, no, bye. they do that, because the company is worth more than they thought. maybe they think the company can be broken up like the old tyco. maybe the ability to create value and they just went in on it themselves. but they don't think the run is over because they recognize how much better the company will be when it's divvied up for us, buying after big runs can be a big reckless and lazy most investors are smart enough to wait for a pullback before they pull the trigger. it tells me that these guys don't think there will be a pullback and there's nothing more bullish than that

sure, i want to wait for a pullback after they bought, but that's the best of all possible worlds you usually don't get that scenario bottom line, one more method of cramer's madness when you see an insider buying a stock that's already had a solid run, you probably want to be buying, too. bob in new york. >> reporter: steeler boo-yah to you. >> steelers from new york. why not. what's up? >> caller: jim, i have a question about interest rates. when the fed raises interest rates, good companies would attract a growth prospect suddenly rapidly go out of favor. can you add some clarity to why? >> well, because people extrapolate there, bob rates go up, they fear it will go up for a while. if that's the case, they want to get out of what they perceive as being a risky yield, which is a stock yield and going to what's a certainty. which is a bond yield. all relative basis rick in california rick >> caller: boo-yah, jim. >> boo-yah, rick. >> reporter: how do i get a position if my stock hasn't gone

down to the average list price >> you can't the vast majority, not just a few times, but the vast majority of times we pay up above our basis. i've got to tell you, sell, sell, sell you got the picture. here's the method to my madness. if you see an insider buying after a good run, you might want to buy, too.

you're in luck because you called cramer on a good night i'm not going home to sip the cheap scotch on my dirty

linoleum floor it's actually pretty good stuff, especially the boutique 18-year-old. have you had 18-year-old jamison's? tonight obviously i'm in a great mood me at my absolute best let's just say i'm pretty dark productive when i'm in high gear so revved that i'm revealing many secrets to the method to my madness. start jotting things down. i've got to tell you something that could be pretty useful. i'm giving you some of the best ways i know to pick stocks i'm teaching you how to invest in trade like cramer if not to be like me, because i've got some kind of emotional things cooking ere, but at least emulate me you know so far i've given away two of my precious secrets, two of the tools that i used in my hedge fund, still use for my travel trust where i play with an open hand, allowing subscribers to

see all my trades before they happen i look for stocks that have pulled back from the new high list that's not a reason to buy in, in itself. but a great place to look for potential buys i like to buy stocks that have had big runs but have insider buy. people really believe their stock has legs and if they believe there could be a good reason for us to believe, too. but again, this alone is not enough to recommend a stock. you still need to do the homework, check the fundamentals to make sure you know the story behind the company before you buy. they're tells. there are signals a stock might be worth opening, that it's worth your time and effort to go through the often boring process of reading through the conference call transcripts and filings. there are thousands of stocks out there, any method we can use to narrow down the ones that might be attractive is a method worth having i don't usually use insider buying to determine whether a stock has it going or not. there's one other scenario where

it makes a bullish tell. that's when a stock has a heavy short position meaning a lot of people out there borrowed shares, sold those shares and are now waiting for the stock to go lower before they buy back the shares, return them to the bank they borrowed them from. hopefully they sold it high and bought it low. we try to buy low and sell high, right? shorts turn that around. they sell high and try to buy low. when a stock has a lot of shorts in it, that means there are a lot of people have serious convictions the stock will go lower. it takes more conviction to short a stock than go long when you're short the potential downside is infinite when you're long, stock is losing money at zero shorts lose money when the stocks go higher and higher. the other important note about short sellers, if there's a lot of them and the stock gets good news, we get what's called a short squeeze. it sounds exactly what it is

in order to bail or close out the positions, the shorts have to buy this is what's called covering when a lot of shorts cover at the same time in a panic, the stock will surge because what you really have is a lot of people desperate to buy the stock. a lot of demand. they have to buy unless they want their years wiped out as so many short sellers did in the last swoons when it went right back up and the shorts hadn't covered the shorts they hadn't brought them in. where does insider buying fit into the equation? you have to start with the high shortages. some of the people run the company and start buying shares for themselves like coca-cola, taking more than a 10% stake. situations where the shorts kept shorting and they got crushed they should have done buy, not shorting it's almost like drawing a line in the sand. our stock goes this lower and no lower. this is an explosive combination

of the insider buying and a stock that is heavily shorted, that sends the stocks much higher shorts are smart in fact, a lot of them, a lot of time they tend to be real smart. much smarter for the most part i have found than what we call long side investors. they usually don't know more about the business than the insiders run it. if the management is buying it in sizeable amounts, you should start doing some homework and usually you're going to want to side with management then you can ride it higher and higher in true jackie wilson style. the shorts panic, they push the shares higher in a desperation to cover their positions and you make money companies often repurchase their own shares, and while not all buybacks are bullish, a lot of them are just a waste of money

i teach you how to identify the bogus buybacks that are issued multiple times each day it's often a good reason to take a closer look at a stock a note of caution here be careful with the company in the crosshairs of the shorts especially when people are nervous and the market is in a bad shape. even if the underlying company are fantastic. the shorts have more firepower than ever, i think thanks in part to an s.e.c. under both democrats and republicans looks the other way when shorts raid stocks with bogus stories about accounting issue and management blunders it's pretty easy to do as a stock -- stock owners have no longer the benefit of rules of shorts selling down and made it harder to create bear rates. what's known as an uptick or higher price before you could sell short stock that was a good rule somehow the government got talked abolishing in order to make trading quicker and more fair for the shorts.

a lot of good that did for us. a reason many home gamers have left the building. we established these rules to stop the fomenting of panic. but the government in all its wisdom seems to think the panics are no longer possible, so we have to be more careful than ever, not to succumb to panic. that's been orchestrated by short sellers who need prices to go lower without those protections, they can practically assassinate the stocks during the crash of 2008. the shorts came back with aggressive negativity, after many of the big runs in the last few years, this times using weapons of mass destruction, like double and triple etfs. when you're dealing with a heavily shorted stock, that's in one of the etfs like the financials, you have to learn to tread carefully. you can still find great opportunities in stocks and the insiders are buying. before going into one of these situations, i have to warn you the balance of power has shifted in recent years in favor of the

shorts against regular individual investors that means even if the short sellers are wrong short-term about a company's prospects or even long term, they can still demolish the stock, especially if they campaign against the stock, like with herbo life. taking on the company, even buying back stock and smart managers on the other side of it, just don't underestimate the amount of damage the shorts can do although remember, the best protection against these rates is offers from stocks that pay good solid dividends short sellers have to borrow stock to short the stock that means they have to pay the dividends to the real owners that's a terrific deterrent for those who are pernicious in the way they go about shorting when you see a stock that the dividend is going higher, a terrific place to be especially if the insiders are snapping up stock, too bottom line, insider buying plus heavy short interest raging buy as long as you avoid situations where the shorts are determined to crush the stock at any cost

herballife herb in florida? >> caller: jim, great to talk to you. i'm a follower for the past few years. i wish i had gotten onboard a lot earlier. >> you're very kind. i like that you support us thank you. what's going on? >> caller: i'm recently retired. i saved up well over my lifetime and i've looked at what the longevity of my savings is as long as i manage things well, i'm in good shape. >> good. >> caller: my concern right now is in allocation i have about 65% right now allocated in stocks, split about halfway between what i follow you with, and the other half in the index funds. >> okay. >> caller: and then the remainder is split between bond funds and cash

the cash fluctuates up and down. >> sure. you're doing exactly right just like we teach you >> caller: i've been paying attention then. >> thank you. >> caller: thank you. >> you got it dead right you're doing exactly what i like i have no criticisms of anything trying to spot a raging buy? here's a tip when you see insider buying plus heavy short interest and then a buyback and a different rend, well, you've got something just be careful to avoid situations where the shorts are simply determined no matter what to crush not just the stock, but the business itself. stick with cramer.

among my critics, that i'm all about trading. that i don't have any advice worthwhile for regular investors. that's entirely untrue the show has adjusted over time. it's morphed, so to speak. it's really about long-term investment if you watch anytime in the last five years, you'll know that however, knowing how to trade can certainly make you a better investor many people have asked me about twitter. what do i mean by it in markets like this one, periodic swoons after very big considered runs like the bottom in 2009, it does help to trade a around a core position first you need a stock pick one that you like one you've got an opinion on one that you really want to buy

as it goes down. buying a stock that you believe will be going higher over the long term is what matters even as you accept the fact it could go down in the near term what you're relly looking for is one you believe will get higher if you're patient. you would set up a position in the stock. buying in increments because we all know buying all at once is arrogance and that's not going to be a lot of "mad money. why don't we use google as an example. i like that stock very much. only over the long term will i tell you that i like it. because it's very volatile short term so let's say you wanted 100 shares of google buy 25 shares four times over a period of weeks. or even months that would be your core position as an investor let's say you want to trade. i know many of you want to, but you feel discouraged because you remember how all that amateur day traders, remember the day traders, they got blown out when

the tech bubble burst. the key word is amateur. you gamers can make money trading if you do it right like a professional in the old days when commissions were higher, that wasn't true. the commissions were eating at your profits that hasn't been the case for ages let's come back to the core long term position strategy we own 100 shares of google and we want to own it long term. let's say it's trading at $500 a share. every time the stock jumps 25 points or 5%, if you want to trade around position to preserve capital, you might want to sell 25 shares. you shave a little off to bring in profits once google reaches 525, you would own 75 shares. scaling out the same way, although always, i love the stock, i like to keep that last 25 shares. then you wait until something happens to knock the stock down to where you bought it, as long as the news isn't specific to google, thereby damaging google's prospects we're in a world where stocks can get crushed by all kinds of factors. as the stock comes down, you buy

it back in enkrements. if google comes back from let's say to 500 from 575, buy 25 shares, then another 25 down 5%. that is if you sold at 50, not just 25. you could even take your winnings this way and help buy 25 more if it keeps going lower. you only got to swell 25 before the swoon. this appears to be small potatoes down where you started by 25 shares and repeat the process up on the way back over time, your profits can add up remember, you don't have to do anything you don't have to do anything, just hold it that is fine with me but people ask me about trading around the core position, that's what it's all about. if you're good at trading, around a core position, it's right to be bored. there's nothing exciting about the plan i just laid out all you're doing is watch the stock move, trimming up or adding to your position. trading around a core position is really the height of prudent portfolio adjustment

boring, by the way, is good. exciting, save it for the stadium. the trading around the core position tactic is where you can buy more stock and have more room to buy more again, if you own a stock, and you like it, you don't need to do anything. this is in response to many questions on twitter and in my career about how i used to trade when i was at my hedge fund trading around a core. obviously you can scale the numbers depending how big your position is. the basic idea is avoid putting yourself in a spot where you have too much on the table, or too little on the table. trading around a core position is an important basic trading strategy that you can use, even those of you who find the notion of trading as opposed to investing to be abhorrent. if you want to take your trading to the next level, there are two chapters on options, getting back to the strategy at my old hedge fund i used to think before "options

action" that it was too sophisticated for tv i no longer think that you have to put in extra homework it's more than worth the effort. you can see how my strategy of what i call getting back to even works with options, than with the common stock kind of like a keeper in less risky way in what i call creating a google at a more reasonable dollar amount price than it currently sells at this stuff is hard i'm reacting to the request i get all the time that many want to know about the options strategy that i favor. we can't use options, so i'm old-time on this they're all there for you to use. if you don't understand options at all, let alone the sophisticated strategy getting back to even, in my first handbook real money, when i taught people at the hedge fund, i have what an option is, bottom line you know the basics of how to trade around a core position if you're so inclyde.

another method to my madness to generate lots of small gains. now you know how stay with cramer online u.s. equity trades...

♪ ...you realize the smartest investing idea, isn't just what you invest in, but who you invest with. ♪

i've got one more trick to teach you tonight. one more method to my madness. this time i want to talk selling. which along with when you buy, what price you buy, may be the most important definitely the most undervalued tool in your home arsenal. how do you know when to sell a hot stock? so you're not one of the last people around who gets stuck cleaning up the mess this is a question that needs to be answered because there's a lot of money to be made. when you play the momentum game, you have to know when it's time to leave the table that's what's crucial. there are always naysayers eventually they're usually proven right usually all hot stocks implode except for the ones over time are able to develop into multiple business streams. this happened big in recent years with chipotle, or the

cloud, ecommerce, biotech stocks but usually it occurs later rather than sooner all the negative talking heads that kept you out of the stock disguised as prudence actually cost you a great opportunity to make money people shy away from these stocks because they don't know where they're going to top out that's understandable. i would be afraid to buy them, too, if i didn't have a discipline to know when to get out. luckily i do have one. when i talk about hot stocks, stocks with companies with low market capitalizations usually these stocks begin with very little research coverage. these names can go up for a very long time. they can catch fire and stay on fire for years without sponsorship. the key to figuring out when interest has peaked is by watching the analyst coverage being rolled out use your own judgment here but a good rule of thumb is once one of these hot stocks gets discovered and has at least a half dozen analysts covering it, the run is going to peter out,

not get stronger it's going to be too big and too well known to continue to go up the way it has it's the rare stock that doesn't behave this way. you can figure how many guys own a stock by looking at it anywhere on the internet this formula has worked for me for as long as i can remember. as far as i can tell, it works because the number of analysts on a stock is a good gauge of interest there is in a name. and names don't get hot and pushed by everybody. they get hot because they get discovered by everybody. hot stocks get tapped out. when there's nobody left to be attracted to them. when all the people who would be interested in buying them have already bought they came out of nowhere, attracting more and more attention, more and more backers, and eventually everyone who wants a piece of the stock has a piece of it. when that happens, the run is over, people, then you must ring the register and go home let me give you a great example, hanson natural, the beverage, one of the hottest stocks in 2004 and 2005.

hottest stock for the first 456r8 of 2006. went from $18 and change to the beginning of 2005 to $200. the whole way up there were people telling you that hanson, a beverage company that really got its momentum from its monster energy drink, was a fad. had to crash well, it did do that but as often as the case, it took years for the momentum to run out. not days, not months, not weeks, years. i called the top back then because i know how these stocks work it peaked in july of 2006. in part because of the fact that the company did a 5 for one split. this encouraged people who had been in hanson for a long time to take something off the table. i'll sell one, two shares. there was another reason i believed it would peak and that was it picked up its fourth analyst in 2006 when goldman sachs started covering it. you had two months to sell between the initiation of the stock peak there was still upside but prudence dictated that we

sell once the stock had four analysts on it clear out early with your winnings than to wait for them to fade away hanson as with all other stocks, hot stocks, starting to cool off once it hit that critical mass of analysts coverage after hanson fell off the radar screen, people stopped talking about it and analysts coverage dwindled again and again, ultimately coca-cola bought a huge stake in its equity which sent it up even further, a stock i still like. but again, it was really a testament when analysts stop following a company, that the company's earnings start percolating again, as with monster. it turns out that the fad drink ended up advantavan quishing the competition. again, as analysts covered the gain, the stock -- so many analysts started covering it, the stock peaked, when they

dropped it, stock bottomed that's how it works. let me give you the bottom line. small speculative steaming hot momentum, stocks are worth owning but know when to sell. that moment comes when you see too many analysts jumping in on the bandwagon. using four as a rule of thumb, letting you know when to start selling. stay with cramer ♪ this is a story about mail and packages. and it's also a story about people. people who rely on us every day to deliver their dreams they're handing us more than mail they're handing us their business and while we make more e-commerce deliveries to homes than anyone else in the country, we never forget... that your business is our business the united states postal service.

priority: you ♪

you've got to get some of the tweets you've been sending me @jim cramer the first tweets from at jason, what are some resources that you recommend for technical analysis and indicators for the novice. i get most of my technical analysis from real money.com and that's one of the things that i didn't get rich for the best technicians who explain what these terms mean, and then show you them in action. and that's what i did in that book next, a tweet from @red square 27 should i have my money in an index fund or stocks, or both stocks, my friend, and by the way, let's be very clear that's not the case with 401(k). which is why i like the i.r.a.

option so much more. jim, i've watched you daily for over ten years, daily. you are awesome. you have helped massive amounts of people. thank you. i can tell you, there you so many people who come up and apologize that they want to tell me that they like the show excuse me, jim, i don't want to bother you, but i like the show. when you say excuse me, i think you're about to say, no -- don't excuse yourself! i'm thrilled that you say that you like the show. it means the world to me i sometimes figure, what the heck do i come out here every night for, other than the fact that you like it @clear baffles tweets. obfuscate? tweets the following please discuss balance between adding to a position and selling your cost basis. same apply to etfs i like to lower my basis by selling -- what i do as the stock goes down, i buy as the stock goes up i like to

sell the higher basis. i typically what i'm trying to do is lower my basis as an owner. i don't want to lower my basis, because i don't like chasing, and i do like buying at a discount lowering my basis is the equivalent of getting a stock i like at a cheaper price than i got it before. the fundamentals are still good. next, a tweet, @jim cramer has more followers than wyoming. wyoming has more oil than i have jeff asks our next question. i have a long list of research companies i'd like to invest in but don't have money for all of them how do i narrow my list. this is very easy. you've got to figure out, okay, which of the best at which level. if you like them all, figure out what level would be the one you really want to buy something and then stick by it

one stock's coming down, people run from the levels instead of to them. stay 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.

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 $782 on home and auto insurance. call for a free quote today. liberty stands with you™ liberty mutual insurance.

i'd like to say there's always a bull market somewhere i promise to find it for you right here on "mad money." i'm jim cramer and i'll see you next time.

>> 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." ♪ are darryl and randy lenz with a product to help ease the stress of traveling with children. come on, honey. ♪ (darryl) come on. come on, honey. hi, sharks. my name is darryl.