tv Mad Money CNBC August 1, 2017 6:00pm-7:00pm EDT
6:00 pm
juniper. needs a hold >> all right, thanks for watching see you back here tomorrow at m. "mad money" with jim cramer begins 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. welcome to cramerica other people want to make friends. i'm just trying to make you some money. my job is not just to entertain but to educate and teach you so call me at 1-800-743-cnbc or tweet me @jimcramer. i'm willing to toot my own own, but last week's selloff
6:01 pm
played out exactly like i predicted. we shook out the weak hands on day one, people gravitated to safer stocks on day two. yesterday, day three we had the final rejudgurgitation of the techs. the dow gained 73 points, brand spanking new all-time high someone let the president know i'm saying it's a high again the s&p and nasdaq both gained of course, during that decline, what happened? what happened? these people, the bears, came out of the woodwork. trying to explain why they were right to hate the market the whole time and why you're a loser if you continue to be in this market. didn't they scare you? they had to frighten you and we had the old gray hedge
6:02 pm
fund managers telling us how foolish we are to consider looking at stocks. call for caution, and obituaries were, of course, f.a.n.g all i can say is, these bears are darn lucky that the "a" in fang stands for amazon, because if it stood for apple, their miserable lives would be made even worse after tonight's magnificent quarter. the company blew out numbers on the revenues, earnings, the seven, the seven plus, the ipad, the watch, the service revenue added 20 million subscribers and they have 185 million subs, makes the service stream one of the most attractive on earth solid guidance should lift the has back to where it was before the selloff began and will propel the stocks like skyward
6:03 pm
solutions and most important broadcom you know what? that's how these tech-led selloffs work. that's how they worked ever since the bottom in 2009 but with high growth stocks, these are real companies like phony ones like the year 2000 unless youcall having $261 billion in cash as apple does phony. i say congratulations to ceo tim cook while i'm at it, can i ask where the apple's best days are behind it chorus is playing i would like to picket the production, especially given tim's appearance here. may 2, 2016, stock in the 90s, maximum pessimism. defending his life at least i know that tim and i still believed now it's at an all-time high, more than 60 points, 60 points
6:04 pm
left on the table by those who traded it instead of owning it now that we have seen that particularly dire selloff run its course, here's my advice you have now been once again put through the mill, that becauses so many people to bail from good stocks i've got two pieces of advice. if those last three days made you feel like you've been through the whirlpool washing machine, now that we've rallied, sell start selling tomorrow, all right? raise some cash if you want to at this point, you're doing it into the strength, rather than into the maelstrom wanted you t sell in. i almost feel like going scaramucci, but i'm going to hold back. i'm still dazzled by what he said the mooch. alas, i knew him well. congratulations for getting
6:05 pm
through the rip this time. but next time, you know those jokers are going to have trouble raising the debt ceiling or maybe the north korean heart stopper. you want some cash so you won't need to dread the selloff, because you'll be ready for it, even as they trot out the bears that make you want to sell ahead of apple's incredible quarter. you may not be made for equities when you saw people who said the selloff would be really consequential, i heard that term, they use that a lot, because it sounds like they're really smart and stuff how about the real deal? then they come on a week later as if they said nothing about getting you out and selling. there's little accountability for the bears in this business jelly stone national park, should be a prison so if holding one through
6:06 pm
selloffs is too emotionally traumatizing for you, you're free to sell i'm tired of people berating me every weekend and telling me i have to get people out of the stock market i'm tired of it. i hope they take a break from the shore. here's my second point if you missed the three-day sale that everyone told you that you had to participate in, i have some ideas for you i have ten stocks that got hammered or weren't because of the turmoil we just went through. apple is not one of them these are battle tested. they just reported you can't beat that. we have the info about them. here they are, alphabet call order, because i like them all, the first one, easy enough, constellation brands these guys reported a monster company, but the numbers were overshadowed by a more cut throat beer market
6:07 pm
all of a sudden people like the boston market. ever had sam adams you've got a darn good quarter and this stock is down from 2018 to 206, that's insane! short people don't like the chart. yes, the stock had run, but these guys are the kings that eat commerce there was some hacking story that got people confused at the same time. opportunity. three, you want true insanity? intel reported a terrific quarter, raised numbers, becoming a lot more like the winning sect stocks in this secr no, i'm not going to rename my dog intel after naming him nvidia while he is lovable, he can be dumb as a bag of hammers however, the risk-reward here for intel is pretty darn sweet,
6:08 pm
and the priced to earnings mobiles should be higher it's incredible how much money intel is still making on a market that declines very fast people don't buy new ones like they used to they don't even wash them that much i got a mosquito in there. back to work four, 3-m simply wasn't as bad as the stock's behavior would let you believe. this company has terrific organic growth, and i think you're being given a gift here with this pullback the stock had -- everyone thought it would be a blowout. that's not the 3-m way the stock remains a terrific holding. five, how about oracle, remember them this was a super crazy good quarter, best in years
6:09 pm
why suspect the stoisn't the st instead of 50? beats me black and decker reported a d dynamite quarter i belie 139, down from 148 attractive i found myself thinking did someone slip me an ambien. even though auto sales are week, these guys didn't see it that's no hair on this company, kind of like me, and generates cash and returns it in the forms of buybacks and dividends.
6:10 pm
texas instruments used to be boom, bust, now it's just boom eight, the best quarter came from the first, t-mobile, and i think it's been forgotten already. plus, we need to remember that every phone company and cable company seems to be in play. this stock is no different i bit it impacts tmus. smoke, fire. how the heck is the stock of visa still hanging out where it was when it reported, when the company went over a fantastic set of new numbers the ceo has taken the company, which was whipped to shape to another level. he's client centered, all around ambassador for the empire. ten, finally here's one that is run, but i don't care. i love income. verizon. company stopped hemorrhaging
6:11 pm
customers, and while it needs to spend more to hand it will new cell phone users that signed up, they're not laughing anymore stock is down 8% for the year. interest rates don't look like they're going up any time soon this makes it a terrific buy market yes, the dow jones is setting records. does everybody hear me, main stream media we have to acknowledge that the market has been sizzling however, i gave you these ten stocks because they've been hammered usual rules, first buy may not be a last buy. but the opportunity is still knocking with these stocks, even as so many others are right back to where they started, after the churn down that was supposed to shake you out, but hopefully didn't and you can't panic, because you simply keeps you -- the panic keeps you from making money and certainly takes you out of apple at $93. austin in tennessee, austin.
6:12 pm
>> caller: hey, jim, i'm a big gamer and i'm looking at a couple of stocks i want to know which would be a better investment, sony or microsoft. >> oh, boy, you know what? sony had a big move. i'm a big believer there i think they may come on in the year 2020. which would be great we'll be what, in our 17th year in the show by that point? before i retire from this business, i promise you they will be on, and yes, i think microsoft is the way to go can i speak to ruslan in alabama, sweet home ruslan >> caller: a boo-yah, jim. >> boo-yah >> caller: thanks for taking my call >> of course >> caller: i'm a finance student and young investors. after bottoming, valeant has been on a great run. do they still have enough to
6:13 pm
reach a $30 pricetarget? >> joe, come back on, come on, man. philadelphians stick together. i have to tell you, i don't want to recommend them, but they've got a couple years of running room to dispose of assets. you oare a young guy, you can make it become jason in louisiana, jason. >> caller: boo-yah, jim, how are you doing today? >> doing well. how about you? >> caller: doing good. i'm calling about altria i have a large position and i have some emotional attachment to the stock because it was given down through the family. with the new looming fda rulings on the restructuring of the tobacco content in cigarettes, which has affected the stocks and the outlook of the price, should i capture some gains?
6:14 pm
>> no, you can -- you may the only person with sent mental attachment to a tobacco company. do not sell it i also like phillip morris, which i have no attraction to whatsoever, other than attracting to put them out of my kid's mouth if i ever saw him with it. we've got a sizzling market here i think i heard we're at all-time highs from somewhere. maybe i tweeted it how about apple? not bad. opportunities are bounding you have ten stocks that are battle tested, look at these here, here on "mad money" tonight, one of the most underappreciated stocks i follow, despite the fact that it keeps blowing away the numbers. don't miss my exclusive. th
6:15 pm
then, is the cloud over some of the world's biggest retailers lifting? i've got the shops most deserves of your dollars. and many investors are saying may day when it comes to elly may. i'll sit down with the ceo so i suggest you stick with these names, stick with apple, and stick with cramer. >> don't miss a second of "mad money. follow @jimcramer at twitter have a question? tweet cramer at #madtweets send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc ado dmeyething he tmaon.cnbc.com.
6:18 pm
make dinner-time device free. [ music stops ] [ music plays again ] a smarter way to wifi is awesome. introducing xfinity xfi. amazing speed, coverage and control. change the way you wifi. xfinity. the future of awesome. ♪ some companies, they just can't seem to get the respect they deserve even when they keep wloei inbloy the summers. cbg is the leading purveyor of real estate services by providing outsourcing, leasing, sales, property management services they lost on some properties of their own. they've been a huge winner for
6:19 pm
us last december, i invited the ceo on our show to play real estate without buying real estate trusts the stock has rallied nearly 30% since then even after this move, this stock is still underappreciated. just this week, cbo reported a 12 cent earnings, the company give you a significant increase to full-year guidance. it wasn't a perfect quarter but it was really good let's talkto the president and ceo to hear more about his latest quarter and where the company is headed. welcome back to "mad money." >> good to see you again >> i saw the diversification of your model it's extraordinary there was a time if you were an american company this would have been a tough quarter but your international business is amazing you've done a remarkable job with brexit and how strong that
6:20 pm
is >> jim, it's our acquisitions, but it's also the organic growth we've had in those markets, and it's following our customers around the world we've added a lot of talent and capability, taking market share, all of those things have helped us to do well. of course, the uk market in london performed a lot better this quarter than they did a year ago >> wen you have these offices say in france or the netherlands, i'm hearing banks going, these big multinational banks going to places we never thought. but don't they just call cbre. >> we help them find and manage location that's our outsourcing business. that allows them to focus on their core strategies. helps them control costs and be where they want to be. >> we saw some interesting clients we had on. i've interviewed mcdonald's and
6:21 pm
prologis what do you do for those two different companies? >> generally what we do for most people, we lease space for the biggest warehouse owner in the world. for mcdonald's, we find locations sometimes for companies like that. we do a lot of different things, buy and sell buildings for people that invest in the buildings that they occupy almost anything that you can do in commercial real estate we do for occupiers like that. >> now, it's very interesting, because you guys are completely transpart company. asked point blank about the u.s., there was some weakness. >> jim, the leases in manhattan are enormous and the fees associated with those leases are enormous we had a great quarter a year ago in q-2 the market there is still very healthy. >> does it matter -- let's say there's cities where there's no new building, can you still get
6:22 pm
a lot of business? >> well, when you look at what we do, we manage buildings, we sell and lease buildings, we develop buildings. wherever there's real estate, there's work for us to do. when there's real estate to be added, there's lots of work for us to do the one thing the people should know about our business and our company, the base of real estate that's occupied around the world is growing that's good news for our company on a sustainable basis >> these technology acquisitions, how are they giving you an edge on the other guy? >> our scale allows us to invest in technology in ways others can't. we bought this company that allowed us to do 3-d visual and space planning and we've had a tremendously talented team. the person that leads all of our technology efforts came from in. so being able to invest in companies like that is a big advantage for us >> when i was doing my special
6:23 pm
about the world trade center, they took me to an empty floor and said imagine this. i can't imagine that so you're saying this is what you do when someone says imagine. >> with this tool, you can imagine it in many different ways that's the beauty of the tool. >> a lot of people i know bought the stock, but some people say i want a piece of a building i said i think you can only buy the stock. what do i say to people who say cbre, they own buildings, i would like to own a piece of commercial real estate the best thing to do is to own cbre >> if you own cbre, you own real estate services, real estate outsourcing, the united states, europe, asia, very diversified >> i think it's better to do that okay, that's the president and ceo of cbre group. what a great performer "mad money" is back after the break.
6:24 pm
coming up, are the wins from washington and around the globe blowing uncertainty on wall street cramer goes off the charts to check out the fear index, next we, the entertainment-loving people, want an unlimited data plan that gives us more. we want more than just texting. more than just surfing and shopping. because sure, we want to use this to call the people we love-
6:25 pm
- like our directors. but mostly, to get the entertainment we love. maaaaark ! ! ! switch to at&t for the only unlimited plan that gives you 60 channels of live television on any screen all for $70 a month. 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.
6:26 pm
♪ oh, really scary what happened to the fear of amazon where did it go? why don't people seem all that scared now we're seeing some things here that might indicate the age of amazon is the destroyer of all things retail. may at haste be receding consider the action of this stock. this was a once beloved cosmetic retailing stock. opened down five yesterday on a downgrade and very negative
6:27 pm
comments from the ceo that there's some pricing pressure in mid market cosmetics i mentioned ulta by name, but it couldn't have been all that shocking, down to 243 yesterday, and the stock held then buyers came in and brought it back to even before pushing it into the black by a point still, with ulta trading at 33 times earnings, you have to be ready for another reversal if amazon squawks to some reporter, somewhere in some paper about cosmetics. although the follow through four-point rally today was pleasing yesterday, costco and home depot made north worthy stands against amazon these are one-two punch stocks people may be less worried about amazon, but if you recall, we heard from sherman williams.
6:28 pm
even the stanley black and decker gave you nothing negative as i said at the top of the show then you have the sears, kenmore partnership. everyone got all bulled up about sears of all things and put the hurt on home depot sears and amazon, there's another one that seems to have suddenly, i don't know, back burner costco's problematic it's not only has to compete with amazon with its own very second rate website, still at least it isn't third rate anymore, but sells at 27 times earnings if it weren't for the giant expansion of two different german grocery chains into this country, as well as amazon's more obvious whole foods takeover, which is still going to bruise costco so i don't know how high costco's stock can go, even as it rallied another dollar today.
6:29 pm
but it does feel like there's a floor on it. walmart is so close to making these highs, holy cow. you've got to wonder and believe that jet.com is working and that acquisition is showing results it too will be hurt, because the stock sells for only 18 times earnings best buy is another retailer that seems to have found its footing, as it came all the way back after a very good quarter we're seeing a bottoming in macy's dividend right now can be supported by cash flow khol's has moved up. and even some ofthe real estat investment trusts are doing better
6:30 pm
it's a winner again. simon properties, it reported a super number this morning and raised its dividend. no sign of trouble there and the stock tacked on six points much of this move has occurred during the swoon of amazon's stock itself but it's something worth watching as the seattle behemoth has been quiet of late right now we seem to be in an amazon free zone i don't know how long it lasts, but for the moment, you have to believe me when the cat's away, the mice will indeed play. nathan in illinois, nathan >> caller: hi, jim i'm a 22-year-old investor and i have a question about underarmor >> you know, look, it's a tough situation, because underarmor is trying to bottom here. but you know what? i need a catalyst. i need something that's not just trying to bottom but has a reason to go higher.
6:31 pm
nike gave you plenty of reason to buy their stock all i heard is it's not right to sell underarmor today. i'm going to david in california david. >> caller: hey, jim, how is it going? >> going well. how about you? >> caller: i'm doing all right i'm calling on behalf of my buddy's cooper, sam, and myself are all in on foot locker. what do you suggest we do? it's been taking a nosedive lately >> two things. one is it really is a great company. it is. it's a great apparel shoe company. the other is that it's in the mall the other is, if it's in the mall, as we saw even starbucks couldn't make it work in the mall foot locker, it's challenged i say buy nike when the cat's away, the retail mice play we're in an amazon free period enjoy it while it lasts. much more "mad money" ahead, including my exclusive with elly may.
6:32 pm
how is she doing then is this market sustainable? we have to go to the technicals to see if the volatility index is showing signs of problems and all your calls, rapid fire, tonight's edition of "the lightning round. so stick with cramer for your heart... your joints... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain health supplement
6:35 pm
what got into ellie mae last week, the provider of cloud based software it streamlines, automates. last friday, the stock got eviscerated, it plunged 17% in a single session after the company reported a quarter that was definitely shy what's going on here ellie mae's problem is that it's a fast-growing company where the growth is slowing. and they had just disappointed
6:36 pm
much weaker expected guidance for the quarter and the full year what's the culprit here? the software is all about mortgages, but they saw a major decline in refinancing the other issue is that ellie mae's growth has slowed, down from 42% from last year, still, it trades at 35 times earnings this decline might be a buying opportunity, but if things don't get better, let's be more cautious let's take a closerlook with the ceo of ellie mae and find out where the mortgage industry is headed. welcome back to "mad money." >> thanks, jim, great being back here >> so jonathan, i'm trying to understand what happened on the conference call, you indicated that the mortgage market transitioned from a refie driven one to a purchase driven one to a degree you haven't seen since 2013 can you tell me what happened? >> yeah, absolutely.
6:37 pm
we have a lot of things we're happy about this quarter, fundamental drivers in terms of bookings and new customers and progress on our lending platform we still, we're growing quite well in a market with some head wind but the refi transition, although we expected it, had a bigger impact on a number of our customers that we initially projected. just some things that we did model, because we haven't gone through a transition like this but we believe we're through this transition, the purchase market is solid and growing. going forward. and the fundamentals of the business, in terms of picking up lenders, driving more loans through the system and driving efficiencies is still very solid and we have a lot of confidence in our outlook ahead >> that may be the case, but i talked to every sickngle home
6:38 pm
builder. and there does seem to be a shortage of homes, because the inventory is not there so you yourself, sir, can't create inventory how are things going to bounce back >> yeah, we can't create inventory, but the projections that are out there already take into consideration that the market is tight, that inventory is tight so the demand curve out there is very strong. and it looks to be strong and getting stronger as we go through this year into next year and beyond now, the fundamental drivers of our business are independent of residential finance volume the underlying drivers of the business are all about us picking up lenders, driving more efficiencies, driving more loans across the platform, and it really is a network effect and driving more revenue per loan. so yes, if volume is behind us, it's a tail wind if it's in front of us, it's a
6:39 pm
bit of a head wind, but the fundamental drivers of the business are strong. and on the purchase side of the market, i am starting to see the economics of people embracing new housing starts we saw in june a big jump up from what we were seeing over the last few months, and i think that's a reflection of, as you have demand that outstrips supply, and pricing starts to go up as pricing goes up, more and more buildings look at the economics and say boy, i should take advantage of that we're starting to see signals that is part of the mix. >> norin other words, maybe the beginning of the quarter wasn't strong but it gained strength through the quarter. is that true >> you know, i think we went through the transition in the first half, and the refi kind of diminished as we went from q-1 to q-2
6:40 pm
we're now at a place going into the second half what's going to drive business is purchase as we look into next year and beyond, we've gone through that transition so the fundamentals are strong >> so the gross margin contraction may be at an end >> yeah. we think that's the case the gross margin is a function of the investments we've been making and obviously with the revenue level. what you continue to see is us really focus on what we see -- look at as the bottom line, more the cash flow generation, which puts us in -- it was 34% this quarter. as we look forward, we continue to expect to see that expand going into next year >> and there's no one else that is coming in taking share from you? you are still the share taker from the old fashioned way people do this >> yeah, absolutely. fundamentally bookings are
6:41 pm
solid. 10,000 bookings this quarter, almost 22,000 year-to-date our next generation platform that we've started rolling out in terms of concept releases is attracting bigger lenders to the mix. i mentioned we signed one of the top three national federal credit unions, and we signed and deployed the fourth biggest corresponding vester in the marketplace this quarter >> excellent i'm glad to hear that things -- maybe you have some tail winds instead of head winds. jonathan corr, ceo of ellie mae, thank you so much, sir "mad money" is back after the break.
6:44 pm
6:45 pm
cramer a big boo-yah to ya. >> a big boo-yah back. >> caller: someone new to investing in individual stocks, i appreciate that your show often reviews the rules, the fundamentals and the basics you have taught people in the past >> thank you >> caller: well, my total position in the market is greater now than when i started, so i must be getting some good information from you >> bingo >> caller: thanks for your help. i have hit a rough spot, though, and wanted your thoughts about snap not the one always in the news, the other snap snap on incorporated >> the homework that i do on snap-on basically led me to the conference call where it was not good it was not a good call they talked about tepid sales. they did not talk about that on "squawk" this morning. but i can't recommend the stock. let's go to fred in new jersey fred >> caller: hey, jim, how is it going? i just wanted to thank you
6:46 pm
forgiving us home gamers the courage to do our own due diligence. >> yes, that's what i want these people all seem to get what i'm about yes, let's hit it. >> caller: i just wanted to talk to you, i saw the company on your show, i was wondering what your position is on teekay >> i don't want to touch the shippers i know it hurts people's feelings that i do not believe, i dread nordic american tankers. natty dread, that's a reference to bob marley and that stock ken in texas, ken. >> caller: hi, jim, quick question i've been hooked into buying red fin. do you think this company is -- >> it's real estate listings, and i have to do a workup on it, because i'm not close enough i looked at zilla. i have to come back on redfin, i don't know enough. david in california, david
6:47 pm
>> caller: jim, big boo-yah to you. >> yes scham. >> caller: what's going on with fli sflrve flir >> it's doing all right. no particular catalyst dick in new york, dick speak to me. >> caller: sing? >> you're up, it's jim >> caller: oh, it's jim. buffalo bills boo-yah to you, brother. i'm looking at gw farmer hopefully marijuana will be legalized and i want to be in the market >> the more states that legalize it, the more people just say, i don't need gd pharma let's go to dan in ohio. dan. >> caller: boo-yah, skedaddy >> oh, yeah, definitely. >> caller: i have a speck play, mp therapeutics. >> man, i looked at this before.
6:48 pm
i'm so apple focused, my brain has apple all over it. i'm going to have to come back on this one, too i'll take one more but that's okay. let's go to ed in arkansas ed >> caller: jim, tell us about brookfield infrastructure. >> the stock has been much hotter than it should be, given the fact that there's not a lot of infrastructure for utilities. it's a good company. that, ladies and gentlemen, is the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade re yo? 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.
6:51 pm
can this apple led rally still sustain itself last time i went through a litany of reasons that i'm hearing from the bears who think it's time to bail on the market and constantly pressuring me to go negative. but there's a lot to like. all-time high on the dow, i don't know if anyone noticed but have we gotten too complacent that's just a necessity. you do that as part of being a disciplined investor if you want to understand whether there's too much complacency, there's only one way to check the cbo volatility index, which measures the level of volatility that traders are expecting
6:52 pm
more importantly, it's known as the fear gauge, because it's a measure of the terror in the market place so tonight, we're going off the charts with our resident expert, mark sebastien, founder of optionpit.com. we're going to get a better read on the state of the market he says that in the last year more and more hedge funds and home gamers have started trying to play the volatility index directly, rather than saying it's an i would ka enduater, th trading or shorting. for those of you that don't mention, the action reflects the implied volatility of the s&p over the next month and they get this by looking at the prices of puts and call options. so as more money managers buy and sell s&p 500 options, the whole thing can get recursive.
6:53 pm
sebastian thi b it can still tell us something first, take a look at this pair of charts. the s&p 500 on stop going back to the beginning of 2017 normally a healthy market, the vix goes up when the market goes up that's the reason it's called the fear gauge when that happens, something strange is happening while we've had a few spikes in the volatility, each one indicating a surge in the level of fear, none of them have lasted very long in april, the vix made its high for the year, you can see that right there, 1622, but in about a week it was about to 21, before dipping below 10. those are low levels
6:54 pm
after that april vix surge, which lasted eight days, no other major spike in the vix has lasted more than a day so how low is the vix really since the volatility index switched, the vix has only gone below 10 26 times. anything under 10 represents an extraordinary lack of fear and of those 26 times, 17 of them occurred in april that has sebastien wondering why, why is the vix staying so low? is it all about the traders shorting put options in the s&p 500, believing things will go well forever he think there is's more to it than that. take a look at the chart of the s&p 500's historical viability it's not actually a chart of the s&p, it's more of a chart of a rolling average of the s&p's recent change in price
6:55 pm
since the spike back in april, okay, the historical volatility chart has never gone above 9%. currently in the last 20 days, we've seen movement just over 5% so if you think about it, this market is about as sedate as it gets we're the furthest thing from volatile here. grant it, this chart is backward looking and the vix is forward looking. but the vix is currently at ten, double the volatility of the market over the last 20 days, meaning it should be underestimating how calm things are. think about that just look at the s&p 500's action over the last four months it hasn't been a wild trader look at this, slowly grinding higher no big dips except for 1% in may. if down 1% is the biggest dip you can find, you're looking at a stunning level of consistency. this is what's called a bull mavenl market while this has been happening, the vix spiked in april and
6:56 pm
again in may, and went right back down. this all suggests that lots of traders are making money and shorting put options, which is something you do when you think the market is likely to go down. but if they weren't nervous, the vix would be lower based on the market's actual volatility the s&p's volatility over the last 20 days is 5% but over the last ten days, more like 2%. really, really not volatile. yet the vix has been calm since mid july it's continued to do nothing while the market continues to slowly grind higher. grant it, 10 is a low level for the vix, but what else the vix has also started making a pattern of higher highs and higher lows, which might be a signal the market could be a little topee he thinks we need to be prepared
6:57 pm
for a bit of a selloff in the last couple of weeks, the vix has mac edmanaged to go hige are the s&p. that's never a good sign but this selloff might be brief and minor like the one in april. even with the market seemingly unstoppable, it pays for a little caution volatility index suggests that the sedate bull market might be in the little more near term than we like to believe. nobody ever got hurt taking a profit, and i love a short-term pullback that you and i could use as a buying opportunity. stick with cramer. ...it starts a chain reaction... ...that's heard throughout the connected business world. at&t network security helps protect business, from the largest financial markets to the smallest transactions, by sensing cyber-attacks in near real time and automatically deploying countermeasures. keeping the world of business connected and protected.
6:58 pm
6:59 pm
es 350 or nx turbo for $299 a month for 36 months if you lease now. experience amazing at your lexus dealer. i can't think, i've got apple on my brain, but who couldn't after that quarter? i like to say there's always a bull market somewhere, and i promise to find it for you right here on "mad money." i'm jim cramer, and i will see tomorrow
7:00 pm
>> 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." ♪ who believe they have a solution to a problem faced by millions of americans. ♪ my name is kevin kiernan... and i'm melissa kiernan. and we're from waldwick, new jersey. every morning, i come outside, and there's garbage all over the place. so i finally put my husband, who's mr. fix-it, to the test, and told him that he needs to solve this great mystery.
97 Views
IN COLLECTIONS
CNBC Television Archive Television Archive News Search ServiceUploaded by TV Archive on