>> great having you scott, here, i mean that. teva pharmaceuticals on the back of this mylan news, cowboy >> what a day on the markets today. aliml see you tomorrow on the "hfte" show and "options action my mission is simple to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, 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 money. my job isn't just to entertain but to educate and put it in context. call me at 1-800-743-cnbc or tweet me @jimcramer. what happens when the economy here and around the world is

doing much, much better? what happens when the u.s. government surprises us and does something that investors perceive as being good for business like this tax overhaul that many of us gave up on happening. day like today, dow rocketing up 332 points to close above 24,000 anz investors decided willing to pay more for stocks because good old-fashioned companies keep the surprises. in short, you have to abandon cynicism to understand this market let's go over what's happened. show you what it takes to have this kind of rally, how many different things have to go right. which shouldn't seem that out there. there's only a 1.4% move, sounds bigger than it is.

been tame lately 332 points it worth noting even as we're getting overbought. in context, most strategists on the record have turned very negative on 2018, valuations are getting stretched. not prudent. need to start selling now because funds are too big to dumb everything december 31st. at the same time they need to outperform the averages. raging bull market like this one, you need to own stocks to outperform face impossible situation. want to leave because of 2018 but if they leave, annual performance will suffer. why natural sellers right now aren't surfacing anointed winners thing end of every year money managers want to show they

own the best performers, not sold them. first reason for what feels like meltup institutions can't find sellersy higher from where they are look how little volume it takes to move stocks up. something happens to pay up before anyone is willing to sell pay up to find supplies. which stocks this time older companies that don't issue shares to employees willy nilly as though bottles of water or grains of sand more likely to have sizeable buybacks to keep it under control or shrink it dramatically available stock among these isn't there. ones with most action are the companies that sit back and

repurchase every day like caterpillar. and soaring stocks to the banks, will be able to buy back more with the new regulatory regime more later third, washington, we're so used to government hurting the stock market, don't know what to do when helps the market. president trump gets up and tweets about how proud he is of the fact that stock market is hitting new highs under his watch. you can argue about what is best for america as whole but having president who views stock market as barometer for success is clearly good barack obama didn't seem to care and george w. bush more into promoting housing. didn't end well. for trump stock market is nielsens and approval ratings wrapped up into a bow. millions of americans view the

stock market as good place to make money feel richer. that makes you spend fourth, actual tax bill. not going to argue the merits for the country as whole and boy they better pass it or have a serious problem here but it's fabulous for all kinds of businesses except for mostly tech companies without sprawling overseas operations, common characteristic of the rally, government-mandated rotation into domestic companies and companies that can repatriate assets most important the rest of the world is on fire has been some region holding the world back and therefore us. first us, then europe, then china, then russia, then europe again. what is bad now? not much except venezuela. which is good for oil, curtail the production likes higher oil prices.

raw data from the government, inflation is low, employment is high, spending good. economics 101, you have to throw away your textbooks. red hot growth without inflation is simply not supposed to be able to happen but it's happening sure rate hikes, but take two years. go deep. seventh in the rebel alliance is successfully attacking the death star in english, powerful as amazon is, not big enough to destroy everything, not yet. when amazon bought whole foods sent stock of kroger down $21. brutal come uppance, but announced good sales death star not killed them costco posted increases and drug stores are doing better. amazon not killed them either. most shorted group in the market, retailers, just aren't

complying with the short thesis. pvh is crushing it ceo told us last night right here best holiday season in four years. no retailer is expecting that, none, not a lot of excess inventory. will not be a lot of sales, gross margins or disappointments. put it another way, retail is going to have a holly jolly christmas. it's the most wonderful time of the year eighth thing driving the market, what the heck else are you going to buy still plenty of stocks that yield better than bonds. backed by companies that unlike bonds raise over time. level of interest for bonds is awful. market represents good values too. can store in bitcoin but stocks are safer. ninth, disappointments, i can

count on one hand companies that have disappointed because not at peak oil, aerospace, travel, peak anything. at least for show. that's all you care about in this market. that's what matters. finally it turns out that cynicism is not an investment strategy all conditioned to believe that everything is going to go wrong, rotten, malaise, nothing good happening. look around, it's going well ge is doing badly, then there's -- give me time here anyway somebody else doing bad too. and even ge, become an oil company in drag, could do better if price of crude keeps climbing give me time and come back with more disappointments after the commercial break or tomorrow

executive producer help me. no help whatever ge >> that's the only one >> thank you great. another county heard from. fabulous sure. >> that's the joke move on. >> well, here's a conclusion, bottom line, good is good. sure there are will be things that go wrong and if we don't get tax cut at this point going to lose 500 dow points in blink of an eye. right now virtually everything is going right what have you done for me lately market and answer at the moment is plenty. i'm going to peter in new york >> caller: boo-yah jim how are you sir? >> rocking, how about you chief? >> caller: pretty good thank you for all you do for america and the world,

well-informed stock tips one more thing real quick. thank you for the goodness of your heart, for all the charities that you give to with personal holdings. >> thank you way we do charity don't have to talk about it. just do it >> caller: true american pate roll calling about idti ceo on your show about a month ago. dropped about 9%, i still believe in it. integrated device technology. >> i gave a talk at thing called deal economy, mentioned this as one of 12 stocks that should be bought much as i love greg waters and management team, it's too attractive to other companies, including intel. even up 27% is my cup of tea said that at the speech. how about glen in wisconsin where with he know green bay is hurt glen >> caller: mr. cramer, thank you

for taking my call i'm retired sherwin-williams employee with them for 33 years and have quite a bit of their stock been like a rocket ship last ten years. $65, today close to $400 my question to you is should i sell the stock, should i hold the stock, or should i be buying more >> okay. here's the problem we diverse if i, don't want to be too much in one stock but you worked at unbelievable company fabulous at what it does and acquisition was brilliant. unless you have to diversify so not to concentrate eggs in one basket, sherwin-williams rocks

congratulations. go to maurice in florida >> caller: how are you maurice in sunny florida question has to do with immu been in the stock a few times, did well now in it again and it's biting me and i don't have a lot of positive news on late trial drugs. thoughts >> up 195% cut in half, play with the house's money. too dangerous. can't have that in bull market sure there are many things that could derail the rally but look at this we're getting overbought it's okay to trim winning positions but a lot of things going right. after parabolic move in bank stocks, what to do with that group. offering my take. and looking for electric vehicle stock?

i'm eyeing getting to higher voltage. company up 30%, still the top dog in space love them as pet owners. get to the bottom of it with the ceo. stick with cramer. >> announcer: don't miss a second of "mad money," follow @jimcramer on twitter have a question? tweet cramer, hashtag #madtweets send an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc miss something? head to madmoney.cnbc.com.

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normally i hate parabolic moves. i don't care if its bitcoin, tulips, nasdaq, oil or blotching. parabola is bad news particularly despise parabolic rallies. huge upward slope. in slower growing industries word for that is unsustainable

but that's exactly what's been happening with bank stocks in last 72 hours. parabolic moves that seem hard to justify based on the numbers. what do you do with financials managing money is lot like being a doctor ultimate is first do no harm i translate as saying no one got hurt taking a profit charitable trust sold citigroup because we were up so much, i felt piggish bulls make money, bears make money, pigs get slaughtered. these rules don't get repealed in terrific rally. if anything the discipline becomes more essential i can imagine karen cramer who ran my desk taping a note that said i doesn't take profits from

citi when i could have but i look at bank stocks and know they can't keep going higher and started trading off end of the day. where should be traded xlf, the fund that traders use to blast in and out of financials very much a tail that wags the dog situation. that's why the banks all seem to trade in lock step, based on how aggressively we expect the federal reserve to raise interest rates and become more profitable with each rate hike really shouldn't be trading in lock stop. that's the problem here. some undervalued on certain metrics. why did the trust own sity at all? too cheap. but took a little off the table. it's unwise to be a pig. if you ask me where the xlf

should be, justify another 5% move conservatively, could get four rate hikes without the next year for the banks rate increase is revenue increase almost immediately. especially true for some banks more than others like bank of america with largest deposit base sells at 15 times earnings versus 12 times before the great recession. seems overvalued but fed raises rates, charging you more interest on your loans and i expect the earnings to get bigger history, traded at $54 in 2006 about half that now. before the crash at the same time had roughly 4.4 billion shares outstanding had to raise money the fed and treasury forced banks to issue stock

10.4 million shares now. $2.40 per share going into the recession, currently 35 cents. up nicely but way below what it was without government restrictions hard part, xlf will mic that stock grade with j.p. morgan, more expensive and goldman sachs. without obama era restrictions, bank of america's earnings power goes up much more than people realize, same for buyouts and dividend hard to argue that stocks are expensive. other than pricey j.p. morgan, say the same about the other stocks still too cheap. could trim to not be pig but think financials on the whole have room to run maybe a lot of room to run now that we have a government way more probanking than any i have

ever seen. more ahead electric vehicle space which companies are powered up to accelerate. eyeing the plays people consider pets part of their family i do i have to play on keeping them healthy. dog is named nvidia. how could you not love pick up -- do the stocks have what it takes. play fi diversify. stick with cramer. you always pay

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liberty stands with you™ liberty mutual insurance. after today's incredibly bullish rally, remember that not every move has the same shelf life short runs that expire quickly call them rotations.

money out of one sector into another en masse that's happening here. cyclical stocks benefit from expanding economy. can fly higher for months, maybe years. but sooner or later the tide goes out slows down and fed raises rates too far. i don't think it's going to happen too soon. especially if the senate passes tax reform looks increasingly likely but will eventually happen if you're looking for stock to give you rally year after year, find a powerful secular growth trend. theme with so much staying power that winners probably keep winning as far as eye can see regardless of the economy. another major transformation in american society in early innings you're crazy about, rise of electric vehicles could just tell you to buy

tesla, one all electric auto maker and leave it at that but i think tesla is cold stock. difficult to analyze could tell you to buy utilities, all running as if we're going to ban gasoline and go all electric cars but you'll get crushed when one of these themes gets big enough, represents a tectonic shift in consumer behavior like electric cars, direct beneficiaries often see the stocks trade up to nose bleed levels i like to hunt for less obvious plays that represent better value. battery powered cars, favorite tangential winners have al

albemarle, fmc and ppg industries, all three i think are worth owning why? start with the big picture electric vehicles are the future and in the words of the late, great football coach george allen, the future is now may not see the appeal but millennials are incredibly environmentally conscious and post millennials even more so. talking about small footprint think. it's true, you do. they hate pumping fossil fuels into the atmosphere but not just kids, some countries france and u.k. said would phase out gas and diesel by 2040 others have the same plan without time line. put it all together, industry is growing like a weed. last year more than 750,000

plug-in electric vehicles sold worldwide. that's up 40% if 2015. at time when gasoline prices were dirt cheap. electrics a tiny fraction, 2% of the total, but tons of potential for the category to keep expanding. younger people, you buy it now in teens and 20s, put these away two weeks ago projected that by 2025, 1 in 6 new cars will be electric might be optimistic but fact it's imaginable tells you what you need to know more charging infrastructure particularly in china. more broadly everybody wants to be looik tesla moved beyond cars to heavy duty truck it says is coming out in 2018 general motors announced two

fully electric cars by next year more coming 2023 gm announced battery powered chevy bolt and not alone. phil lebeau covers this better than anyone, much of what i've learned is from him. but i've got to find you stocks besides gm and tesla i like albemarle and fmc produce lithium, batteries that power the cars game changer for the business. laptop needs just an ounce of lithium. that's all, a high performance electric car battery needs more than 100 pounds of lithium albemarle is company that has

lithium compounds division recommended in may of 2016 phenomenal gain. i bet it has more upside great deal fmc, another specialty chemical place, focused on agricultural space. terrific businesses for much less than they were worth since dupont needed to sell to merge with dow chemical. but fmc has a rapidedly growing lithium business something to spin off as entity next year. i started recommending fmc mid-january, up since then both reported strong quarters early this month but lately there's downgrades but all

because the stocks move so much. that said, deutsch abank thinks coming out of china could put downward prices on wall street chilean mining concern says that demand for lithium should double every five years going forward, more than enough to -- new supply from china. fmc is more reasonable more lithium exposure, cheaper ag business on fire. i like it. take the lithium concerns seriously? is there another play? ppg. specialty chemical company all about coatings, coatings that insulate car batteries to keep

them from catching on fire long been a fan. darn cheap trading at 14 times next numbers. more aback door plan ceo told us batteries require a huge amount of coatings, ppg's specialty. sounds enticing to me. here's the bottom line, when you find a powerful secular growth trend like electrical cars, stick with it. fmc, albemarle and ppg, buy, buy, buy jack in ohio >> caller: this is jack from columbus, ohio i bought auto zone in august at 530. should i sell now? >> no. everyone thought amazon would kill them and like cvs and

walgreens, death star can't hammer everybody it's buy, buy, buy so is general auto parts timothy in new york. >> caller: boo-yah my question has to do with ngg national grid. juicy 5% dividend, does it have growth to go with that analysts say - >> i have slighted it because i like con ed so much, and i should be recommending national grid but yield, gross yield is lower. comes in 3.3 i like con ed but national grid is good company. con ed remains superior i think. i need to go to frank in michigan >> caller: good afternoon. question has to do with the lithium. as you well know, batteries used all over power tools, cars, electronic

devices. but don't hear much said about lithium in addition. next gen lithium ion batteries using maggenes, cobalt and nickel elon musk is using as core in his cars, last longer, more stable, environmentally friendly, et cetera. don't hear much about those other. what is your take on lithium and manganese. >> still think lithium is the way to go. nickel is sucker's play, not going there. manganese, couple of companies make it. i can't think who is driven by them still okay with lithium. every company wants electric cars, not just tesla we have a powerful secular growth trend going in electrical

cars, fmc higher, ppg, sneaky track and albemarle on trend stock is losing steam. could you be barking up wrong tree maybe a buying opportunity. portfolio prepared for what's next? am a diversified keep you not just in f.a.n.g rapid fire lightning round stick with cramer. for your heart...

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new high list. might be value here. idxx, number one maker of diagnostic systems for animals, particularly pets, some livestock. i like idea that we treat cats and dogs more and more like people and spend more money on their health care. this stock has been fabulous long return, it's pulled back over the past five to six weeks. tumbled from 166 to 147. back to 156 today. hit in runup to recent quarter solid 5% earnings, 74 cent basis. slightly weaker than expected sales. i think investors have to circle back to this one pet diagnostics didn't fit now into the rubric of what is red

hot, industrials okay for me, long-term secular growth story check in with john ayers ceo. welcome back to "mad money." not only run a great company and maybe biggest inventor of things that help our pets but alsoin credibly transparent brian mckean, your cfo, organic growth for quarter 9% below our expectations didn't need to say that. 9% is impossible for anybody else should we be worried he says this >> as you said we like to be very transparent think it's benefit of shareholders happy with 9 1/2 to 10% organic growth guidance for the year and

9 to 11 guidance for next year one of the rare companies who give guidance for 2018 can do so because consistent, reliable >> i had felt there was nothing beneath expectations but your guy pointed it out, thought should bring it up inventions, couple of things coming could accelerate growth and you may be being conservative talked about liquid gold, got to be honest with you, a new fecal matter test you think is going to be huge. >> turns out dogs in the dog park get things get in their intestines and regular test is fecal test that's done today primarily with microscope, old technology going to apply biotechnology to that approve sensitivity to whether the dog has worms and make it

easier and faster to provide the results. blockbuster point of care launch for us, bringing to market mid-2018. >> takes the place for every vet. >> standard of care and standard part of preventive care visits >> in-house chemistry platform, some things you're doing there's another besides this, you said two significant i.d.ex innovations. >> first is point of care fecal. but really revolutionized standard panel adding to detect kidney disease earlier and more accurately than traditionally parameters more than 12 million pets have benefitted from it going to bring to point of care chemistry analyzer

vets run as much chemistry in the package as send out. when vets appreciate it's essential part of standard panel, going to use idexx. >> in-house, one appointment, don't have to wait and come back >> have it during the appointment. >> huge plus. >> realtime ticare >> do want to talk about millennials. numbers you gave us incredible 41% say money is no object on their pets and these people don't have that much money. >> that's the high for all the demographics millennials are the bet generation 57% of millennials say that pets make them happier than almost anything else. high among the generations >> got to get this point, people who regard pets as mentally

therapeutic, incredible. >> a lot of clinical studies that pets improve our medical and physical well-being. >> i know enough vets to know they're going to throw out what they have and give us this we want results immediately for our dogs we don't know what they're thinking. >> pets don't tell us do they? >> sure wish they did. you want a long-term growth, play, it's this. "mad money" is back after the break. energy is changing fast and we're changing with it. building a smarter grid, investing in new technologies, that's aep's road to the future. and the international brotherhood of electrical workers helped make that happen. the ibew's outstanding union professionals

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>> announcer: lightning round is sponsored by td ameritrade it is time time for the lightning round and then the lightning round is over are you ready, skee-daddies? stacia in florida. >> caller: how you doing jim nice to talk with you. can you hear me? >> sure. >> caller: okay, asking about maso

i have their stock for a number of years >> i like it, i don't know if i would buy it up here but cabinets, bathrooms, paint, housing pieces remains strong for now. sandy in south carolina. >> caller: thanks for having me on, a fan of the show and watch you most mornings, boo-yah >> thank you love that crew in the morning. what's going on? >> caller: diplomat pharmacy, love the executive team but street down on the recent acquisition. >> that's because we don't like specialty pharma, hurt us in the downturn i say stay away honestly tom in oklahoma. >> caller: thanks for taking my call long time fan, first time caller one thing that i have gotten from you throughout the years is to be patient. finally learned that this year about a year ago bought adp and

it's done fairly well. tell me what you think >> i like it very much rodriguez is stand-up. fracas with akman is over. putting through lot of what he wanted and doing good things in the meantime, sweet spot of the economy. 2.2% yield says enough. go to george is florida. >> caller: hey mr. cramer. first thank you for your awesome work and truly admire you for that >> thanks. >> caller: my question today is about clf. initially down 25%, now about to break even continue to hold >> break even on clf, that's greatest news in the world you know why, you can sell sell sell sell sell we don't like that kmcommodity n

bit. something wrong with my hand robby in california. >> caller: boo-yah professor cramer. >> giving me tenure tonight. how can i help >> caller: love reading and listening to your book, thanks for the content. question about boston scientific. >> it was down a dollar and a half yesterday with a -- nonsense, you never get a chance to buy this. want them to come on and say what i did they did they're convincing dan in maryland. >> caller: hey jim snowing soon andda rail resorts. >> vail mountain

buy buy buy. that's the end of the lightning round. >> announcer: sponsored by td ameritrade there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade.

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what a day for the market. dow pushing past 24,000. wouldn't it be nice if all days like today unfortunately not always the case so critical to have diversified

portfolio. if you watched yesterday, you know i never cared whether or not am i diversified is most ski exhilarating thing in the world. helps investors from being crushed. beloved f.a.n.g. stocks yesterday were knocked down, everybody scorched this is a game you can't afford to get wrong part of the show where you give me a call for tweet and tell me top five holdings. i let you know if holdings are diverse enough tweet says i'm trying to stay diversified. intel and act vision wizard. others are -- is that all right?

am i diversified >> we like that one very much. defense. this is tough one. bank of america is great dow dupont those two names would be considered tech. after all the things taught us, take two this is entertainment, intel is tech going to bless this portfolio as fine bob in new jersey. >> caller: thank you for taking my call jim. my stock, i need a tommy mcdonald save here >> oh, my. go eagles, go birds. >> caller: nvidia, apple, aba, square and hewlett-packard enterprises. >> oh, boy

wow. this is why we play okay because this trades with this which trades with this which trades with this this is one stock. i happen to love every one other than this, doesn't matter. got to do business here. nvidia for now it's resting apple, own, don't trade. square moved up too much because of bitcoin a ali baba i like. we're going to get rid of square, buy a conglomerate get united technologies in there. would be terrific. and nvidia and apple we're going to have to sell nvidia, even though charitable trust owns it. and apple -- pull up, going to

say oil stock but too nasty. what i want to do, one i talked about today. fox. i don't think stay independent zach in new york zach >> caller: yeah. cramer boo-yah how are you today. >> you're up man. >> caller: five stocks here. c conpilation. edward life sciences, bank of america, amazon and aer. >> do not adjust your audio. okay go to work here. bank of america is doing incredibly well. four rate hikes to be money for them amazon

would have bout that stock, it's down edwards life science is doing better than people realize aer cap isa aerospace perfect. what i'm looking for got to go to work right now. eliminate some tech even though tech is good still with cramer. i'm here to talk to you about how at&t gives you more. and so am i. like how when you buy the amazing new iphone 8 you get another one on us. see we give you more phones and more spokespeople.

are you guys doing a spokesperson thing right now? yes. awesome, can i be in it? well, it's kind of like a two-phone deal. so two spokespeople. got it. k. thanks. at&t it's time for more. it's time for more. buy the amazing iphone 8 at at&t and get a second one to gift, on us. 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. right in the heart of the was in his financial crisis, and saw his portfolio drop by double digits. it really scared him out of the markets.

his advisor ran the numbers and showed that he wouldn't be able to retire until he was 68. the client realized, "i need to get back into the markets- i need to get back on track with my plan." the financial advisor was able to work with this client. he's now on track to retire when he's 65. having someone coach you through it is really the value of a financial advisor. repeat something from am i diversified and bank piece it's okay to do some trimming. yes it feels good. but i got to tell you something. we sold some banks and other stuff for the charitable trust and even though continued to go up, i don't mind bulls make money, bears make money and hogs get slaughtered always say there's bull market somewhere, trying to find it for you here on "mad money," i'm jim

cramer, 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 up is carmen lindner, selling a delicious new twist on an old camping favorite. hi. my name is carmen lindner, and i am the founder and c.e.o. of gotta have s'more. i'm here seeking an investment of $75,000