never gets old >> oh, my god. i'm buying >> i like it just over 100 >> grasso? >> clf going higher. >> i'm melissa lee, "fast money. meantime, "mad money" with jim cramer starts right now. my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to make you some money. my job, not just to entertain but to teach and educate you so call me at 1-800-743-cnbc or tweet me @jimcramer. some days the market just hates to go down yeah, it rebels against going down with all its heart, with all of its soul and with all of

its might. and today was one of those days. the fourth straight day. the s&p gaining .40% and the nasdaq .63%. what do i say when i say the market refused to stay in the red and ended up nicely in the black? last night netflix, netflix of all companies reported its first suboptical quarter in ages given that the stock was un100% going into the announcement, it could cap the nasdaq and perhaps down all the averages with it. when a high profile company, and it doesn't get much more high profile than the n in fang describes its earnings as, and i quote, strong but not stellar like netflix did in its note to shareholders last night, you know that investors are in for a real bruising. but after dropping more than 55 points, the stock furiously rallied to close down just $21 that's a sure sign the market was willing to overlook flaws. netflix is all about subscriber

growth when the company add just 5.2 million new numbers, much lower than the number we were expecting, of course the stock was laid to waste in late night trading and then again at the opening. this is not why netflix got shoved into the wood chipper like stebuscemi in "fargo. it's probably the most substantive thing that happened in today's session first, despite there being tremendous competition for eyeballs online, netflix still has an excellent business despite the less than stellar situation. second, the company threw cold waterton idea that there is less binging going on its program remains beloved by viewers everywhere third and most importantly, reed hastings, one of the few executives left in this entire market who gets the benefit of the doubt, and he gets it because he deserves it investors don't seem frightened about how much money netflix is spending on new programing, and it's spending boatloads.

they trust hastings when he says he doesn't mind the compelling sites popping up all over the place. he is confident that netflix has the best programing, and that's what matters because that's not a commodity. they are not worried the company might be charging people too much after the recent price increase when i considered the action today, the buyers seemed to be saying, look, given the tremendous strength in subscribers anyway, the real issue here is netflix's lousy forecasting. it's forecasting betting there would be over a million more subs, because business had been smoking hot going into the quarter netflix just muffed its prediction and i don't think they even know why that happened yet, but you know what? you have literally never gone wrong by netflix on the dip. so the buyers couldn't resist buying this one too. hence, why the decline stopped at 55 points reversed. amazing when you think about how much this stock had run going into the quarter now that's what i call leap of

faith. and the netflix rebound wasn't the only incredible thing that happened today there was something else that also distorted if whole market, particularly in nasdaq it's what i call the etf effect, and it's driving many a trader crazy. at the opening today, the trading of netflix was so intense that it literally pulled down the other three members of the fang cohort, facebook, amazon and goingling why did that happen? because there are about a dozen etfs that contain fang and almost nothing else. etfs have more power than the individual stocks could possibly generate so that means the stock of netflix can crush the stockses of facebook, amazon and alphabet because they're all part of the same etf baskets that's right our relentless emphasize on "mad money" on fang, the acronym, has spawned the creation of etfs when we identified these stocks fife years ago when going off the charts with bob lange, something we'll do again this evening, the fang acronym stuck and the financial engineers

couldn't resist building multiple etfs around them. in fact we have the du moss effect where the fang four are like the three musketeers + d'artagnan because the action is very much all for one and one for all. now there is a torture lodged to this first people assume that whatever ails netflix has to kind of hurt facebook, right so we have to question social dominance and the video criticizing ambitions. the dom zrans retailer since amazon's website crashed on prime day yesterday. and whatever ails netflix must also ail alphabet because youtube is about streaming video. what goes down because of one fang member can go up because of another. which brings us to the stock of amazon now everyone was worried about this prime day breakdown that happened yesterday it continued today, but not the breakdown, but the prime day

and the stock initially, whoa, it shed 22 points and it looked like a real ugly day coming. but then midmorning amazon told us that prime day sales so far are bigger than ever meanwhile a fee adviser said spending jumped 89% in the first hours of the event holy cow that helped turn around the whole group. and a major reason for the rebound in netflix was pin action the other way and all this reverberated well beyond fang. netflix is a subscription site so every subscription oriented stock came back. apple had been down a buck costco shed a buck boom, they all returned to the positive when netflix opened down hard this morning, i was on "squawk on the street," and i wanted so badly to say buy it. however, it's very hard to say right at 9:30 ignore management's own verbiage about how things were less than stellar, end quote there, and just jump in with both feats

that's not what i'm prepared to do with a stock that's up more than 100% when management is throwing water on its own stuff. i was willing to go there by the way on the stock of goldman sachs where a perfectly good quarter was met with a torrent of selling i think there was some people who just didn't want to own gold without blankfein, a fantastic ceo who is at the helm and he is retiring sure enough, goldman's stock came roaring back, nice that the new ceo will do just fine, thank you. i was willing to recommend another health oriented stock down 7 as the stock only got hit so hard because ceo david wickman expressed dissatisfaction. yeah, he actually kind of grumbled to himself that he was unhappy with the quarter that came out of absolutely nowhere as it was a huge upside surprise the company had a gigantic increase of free cash flow from operation, a great measure of how he is doing.

mr. whittman, you are being way too hard on yourself it didn't help my too negative thinking about netflix that most stocks that open down big tend to stay down big for the session and then try to nail the close to show they've averaged better than where it went out yet the stock managed to bounce back, thanks to that fang effect as well as the huge number of short sellers who needed to buy stock to ring the register in the positions were so tired of losing money here is the bottom line. when you got an amazing track record like the ceo reed hastings at netflix, the market can be very forgiving. a big subscription miss becomes not a problem with demand, but problem with forecasting and when we get an all for one, one for all boost from amazon, it's just too hard to keep a good fang down [ buzzer ] let's go to jack jack >> caller: love your show, jim. >> thank you, jack. >> caller: it seems like they hit a little speed bump. what do you think about buying

on pullbacks with mcdonald's mcd? >> i could not agree more. mcdonald's, which is down 7% for the year is a terrific opportunity. i would pick that one up right here hey, how about brian in hawaii brian? >> caller: hey, jim, how's it? brian from hawaii. >> okay. what's going on? >> caller: dirt posted historic numbers last earnings report, revenue, eps, thousand% increase, net income year-over-year and trading down ever since. it doesn't make any sense. the rise off of volatility, year to date, really volatile market, they should be posting great numbers in this quarter. >> let's do, this brian. it's up 44%, but i want to look into it rather than saying yeah, that should be up because there is a lot of brokerage houses and banks that we know are nowhere up 44% it's entirely possible that one is just coming back to earth i've always wanted to do more on virt too because there are a lot of good people associated with

it sometimes the market despises going down we saw that today with netflix, which was forgiven but certainly not forgotten. on "mad money" tonight, take a seat i'm ranking the best home good retailers to see which company could help your portfolio with a profitable remodel then the standings don't end there. i'm revealing the three names that have emerged as winners in the wall street fashion show this year. don't miss my take on the apparel space. and with the president slamming the pharmaceutical industry, you would think the biotech stocks could be taking a hit too, but they're having a pretty darn good year. what's behind all that positive pin action i'm going off the charts to find out. so stick with cramer >> don't miss a second of "mad money. follow @jimcramer on twitter have a question? tweet cramer, #madtweets send jim an e-mail to madmoney.cnbc.com. or give us a call at 1-800-743-cnbc

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♪ with the specter of tariffs

haunting this market, people have been moving their money into nice, safe domestic consumer-facing companies of late, the ones that don't need booming world trade or strong global economy to perform well there is that nasty recession rumor because of the two in tenure i talked to you about but notall domestic consumer facing companies are created equal. some of them are a heck of a lot more equal than others consider the home good groups. let's talk about williams sonoma and wayfair. they've been on fire while bed, bath & beyond remains a laggard. i think this is an important exercise to help you understand why some stocks work and others don't. they can like goldilocks and the three bears. bed bath is too cold williams sonoma just right the huge home goods chain that has been the bag to amazon's boxer with a stock punched to the canvas down more than 75%,

75% since the end of 2014. nasty! even so with the domestic particulars coming back into favor, bed bath has been mounting a bit of a comeback lately with the stock climbing nearly 16% from its may lows so could this be a genuine bottom or is it merely a relief rally? the first thing you need to know is there is a good reason the stock has been such a poor performer. [ booing ] >> bed bath has been eaten alive by online competition, especially the aforementioned amazon that's only been made worse by a series of bad management decisions. [ barking for example, the company has been a voracious repurchaser of its own stocks, but the buybacks did nothing to prevent the stock from getting crushed from 2012, i thought this was extraordinary. from 1220 two 2017, bed bath reduced its share count by 38% monster buyback. yet it was a huge waste of money. [ buzzer ] as the stock tumbled from $60 to $19 over the sun microsystem

period just from 2013 through 2017, they spent, get this, $5.4 billion on this impotent buyback. put that perspective a market cap of $2.7 billion. they could have used that money to revamp their store, grew their online business and prove the logistics network. the really crazy thing, steve tamares still has a job. normally after this kind of a break down the board obe thinking how about a transition. he does have a turnaround program. he wants to break up the company's ecommerce business and embrace new technology to help move merchandise bed bath is working on a loyalty program. when i see all this stuff, i can't help but wonder too little too late sure enough, when bed bath reported a few weeks ago, the results were not so hot. with declining store sales and deteriorating margins. is my view, look, bed bath, it's

cheap. it trades at less than ten times earnings it's cheap because the company has consistently dropped the ball coy call it the worst of breed maybe management can deliver on their turn arnd plan and i do like the catalog. but until we see some evidence that is working, i'm going to take a pass. i can't bring myself to endorse it here. how about wayfair? this is in many ways the exact opposite it's the big online retailer home furnishings and dig core. over the past couple years the stock has been a monster, a huge winner, putting on 129% gain in 2017, and it's rallied another 55% for 2018, often on the back of the shorts. every time the stock gets crushed, like when wayfair gets some ugly guidance in february, they ultimately manage to get things back on track, a lot of what like people did when netflix was down big today that's why way fair's stock hit a fresh all-time high. basically a turbocharged domestic growth store.

the sales have increased nearly 848% year-over-year. and while it's not yet profitable, they keep bringing in new yearsers, up 33% and each user buys more stuff, up 9%. w wayfair is up from 60% but wayfair has a problem of it's own not only has it never turned a profit, management seems almost -- i don't want to say let's say disdainful, but how about indifferent to profitability? to be fair, though, that's how you run a growth business. they're taking a page from amazon but stocks that live by revenue growth also die by revenue growth while wayfair is far from expensive, trading at 1.3 times next year's growth estimates, it is a high risk stock because we know it gets annihilated the moment investigators start worrying about growth for more than one quarter, and that's what happened in february. i wouldn't be surprised if it happens again. if it does happen again, i think you would see real sell-off.

don't get me wrong i really do like the story long-term, and it's been a big mistake to tell people to sell the stock. oh, and i did it in february, okay i said that it was too rich. i was critical of the story here after a huge sell-off. but wayfair very hot after its recent run too hot for me and i think you'll get a better buying opportunity if you are patient enough to wait for next pullback have i some of these incredibly hot stocks be more cautious than in retrospect i should have. i can't change my stripes. so if bed bath is too cold and wayfair is too hot, what's just right? how about williams sonoma. this is a company that is all about high end merchandise which sells via a bunch of brands including pottery barn, west elm. they spent the next couple of years trading between the mid-40s and 50s. they have exploded higher from 47 to 62 why? because williams sonoma is in the midst of a monster come

back when they reported in late may, they shot the lights out fuelled by a red hot online business that represents 53% of their overall sales. the stock soared on the news they keep rung and rung. i like that. we had ceo laura alber on the show a few weeks ago we were downtown at the exchange explain this move and she told an incredible story. basically the new williams sonoma is a hybrid, half brick and mortar and digital they create beautiful stores that give you a pleasant shopping experience, but they're also focused on using new technology to boost sales. well, here, take a look. >> when we see our best customers cross channel. there is a lot of people just online, a lot of people focused on big stores weapons. are focused on both because we know that's how you shop >> they're also masters of online marketing anyone who cooks should know that williams sonoma has tons of terrific recipes online. people really like those and that helps them sell their fancy kitchenware, which i have to admit is pricey but we like

at home. the best part is the stock remains darn cheap it's trading just 14 times next year's earnings estimates for best of breed. 14 times earnings? and i wouldn't be surprised if those estimates turn out to be too low. here is the bottom line. when you look at the home goods retailers, bed, bath & beyond is too cold those guys are trying but they haven't invested enough in ecommerce and the business has been left behind wayfair is too hot they have a great online only strategy but the stock has doubled just since the end of april. i think you get a pullback if you wait and threaten is williams sonoma, on the other hand. it's just right. after years of testing they figured out how to seamlessly merge their digital and real world businesses, and the latest numbers were amazing if you want a nice domestic home goods retailer, i say stick with williams sonoma. daniel in florida, daniel? >> caller: i want to thank you for automatic you do for skee-daddies like me. >> ah, thank you, buddy. thank you. >> caller: i'm callinger sleeping giant that i think is

wide awake i'm calling about ticker symbol wmt, walmart they recently formed a partnership with microsoft, and i think they're going to take on amazon i think this is a good try sbri point. what are your thoughts >> daniel, i completely agree with you i've been watching walmart closely. it's fallen well beyond the rest of its cohorts kwlet it's not that bad a company i did like the microsoft i absolutely love actually the microsoft deal because you don't want them subsidizing amazon yellow ledbetter who doesn't like pearl jam eddie vetter and i are often confused for each other when we go to bars bed bath is too cold wayfair is too hot and williams sonoma just right. much more "mad money" ahead. it's a brave new retail world, and some stocks in this space have posted some serious gains over the past month. i'm lighting the top three ones.

plus could the biotech continue to deliver healthy returns i'm tracking technicals and giving you my take and it's a rally in three groups that seem to defy all your t odds. i'll reveal the camps that are moving, up next. stick with cramer.

♪ lately the retail cohort has gotten a new lease on life not long ago everyone was fretting about the decline and fall of the brick and mortar stores and how the amazon death star was destroying chain after chain because there was just no way to compete with them online. but now retailers, especially apparel retail have come roaring back some of it has to do with a very strong economy, a consumer who is flush with cash that's not all there is to it, though when you look at the best

performing apparel place, you see two things there are the companies that have figured out how to compete on the web with a workable omni channel strategy, as they call it and more important, there are the ones with the best understanding of what the consumer wants remember what salesforce has taught us, that crate on board the cloud, a cloud king? the customer it's about pleasing the customer remember, merchandising is more of an art than science if you want to predict the world of fashion, it takes a special something that's hard to quantify but the companies that have figured this out, the ones that know what their shoppers want to buy have been on fire of late. the best examples, look at what's been working on the wall street fashion show. canada go, a lululemon and urban outfitters let's start with canada goose, the maker of high-end fur-lined coats and parkas now for those of you who don't watch the show regularly, i recommended this stock the day it came public it roared higher like a rocket ship and earlier i told you to ring the register on part of your position as you had a 175%

gain if you started buying canada goose when i got behind it nobody ever got hurt taking a profit but i definitely made a mistake. i was skeptical of a great story, got off too soon. at that time the stock was trading 44 two weeks later the company reported a blowout and the darn thing surged to new highs. it's now trading at nearly 64. so mea culpa i didn't like the risk reward going into the quarter we had such big gain, but it was wrong. i wasn't just worried about the results, i also expected a fresh secondary from canada goose, and we got one just five days after the quarter which caused the stock to pull back a quick 10% from highs if you ask me what i was really worried about is because i thought there would be a secondary and i wouldn't be handled well that was wrong too at these levels, the stock is attractive canada goose is a wholesaler they sell their products from department stores who sell to consumer but the company has been trying to shift to a more direct to consumer model opening their own fancy stores in major markets

and building out an online presence to cut out the middle man. that's been tremendous for the company's growth margins at the same time their high end products fall right into what aspirational consumers want to buy. now which brings me to the latest quarter again, i was a little worried going in that canada goose would have trouble because the company has historically been focused on winter apparel but the numbers show it's not some seasonal retailer anymore the company delivered much better than expected sales earnings they delivered nearly double the sales that analysts were expecting. in short, these guys knew exactly what they're doing i'm glad the stock has pulled back from recent highs so you can pick up some canada goose into weakness. don't forget, great china angle here they sell a great deal into china, and no, i'm not concerned about tariffs here next up there is lululemon, the increasingly iconic athleisure team a 64% gain near to date. and what makes this all the more impressive, there is nobody at the wheel. lululemon's ceo stepped down in

february ungentlemenly conduct. since then they still haven't found a replacement that doesn't seem to matter as lulu keeps knocking it out of the park because consumers absolutely adore their merchandise. the stock was trading at $77 when the ceo resigned in early february now it's at 129. ♪ hallelujah >> why because even without a ceo, lululemon has been able to report two blowout quarters in a row. at the end of march, they delivered a stunning beat with 12% same store sells growth. most came from the exploding ecommerce business wow is their site hot. then when we heard from lulu again at the end of may, we had another magnificent lights out quarter. this time the sales increased by 20%, and that included an excellent 8% gain at the actual stores themselves as well as some magnificent 62% growth from the online business. the stock surged into the stratosphere on the news it hasn't looked back since. how do they do it? lululemon got the technology right.

their online business is on fire in the latest quarter, lulu's online traffic increased by 30%, and the conversion rate, the percentage of clicks that turn into sales rose by 20% at the same time, they keep rolling out new products that consumers can't get enough of, like their new yoga pants and their new sports bra and a bunch of new products for men. and of course they have some of the most productive, fun to shop at stores in the industry. the one problem, lulu's stock is expensive. selling for 35 times next year's earns estimates. i don't like to chase, but i would definitely put this one on your shopping list and pick some up the next time intime we have a market pullback. finally urban outfitters a year ago this company look like road kill since then they have seen the stock soar from $16 to nearly 46% as of today. it's an been an amazing comeback what happens quite simple urban outfitters had a terrible time in 2015-2016. the industry was in rough shape. they had fallen out of favor with the consumer. a lot of people thought it was

played out since then, though, everything has changed. the big picture economy backdrop has improved dramatically. at the same time, fashions have changed. these days people favor a different silhouette and once again, urban has the merchandise that consumers want. the shift has been phenomenal. the company has now delivered four straight better than expected quarters. and the most recent results had posting a 10% increase of same store sales, double-digit. that is huge all three of urban's brands are doing well traffic term, and business is red hot. the markdown rate is the lowest its been in a decade that means the stuff is flying off the shelves and they don't need to discount much to move their inventory. according to richard haynes, these trends keep getting stronger, and stronger for longer, betting that it's not going to roll over any time soon it trades only 17 times next year's earnings estimates. i'd be a buyer right here. the bottom line, a rising retail tide may lift all ships, but some of the ships are a lot more

seaworthy than others. canada goose, lululemon and urban outfitters all with a keen grasp of fashion and that along with their terrific execution had been them winners. wait for holdbacks in canada goose and lulu, although i do sanction some canada goose buying, and urban outfitters -- >> buy, buy, buy, buy, buy, buy! >> buy it right here let's go to chris in washington. chris? >> caller: jim, i'm a proud action alerts club member. really appreciate. >> excellent thank you so much for subscribing to the club. how can i help >> l brands got pulverized on thursday as it reported sales which dropped in june by 1% despite a big sale of victoria's secret the stock was down 12.1% on that day and continued down for next two days fwleer the green today, i see, but a mile away from its near-term high of 36.7. >> true. >> caller: it is time to take my first loss. >> your first loss is your best loss, just like you learn about in "real money."

so, yes, i do want you to take that first loss. let's go to jason -- because i don't think there is a turnaround in sight. let's go to jason in california, please jason? >> caller: hi, jim boo-yah from costa mesa, california >> fantastic to have you how can i help you >> caller: thank you for taking my call. i've been investing since april of this year after watching your see show daily with my cousin and reaching "get rich carefully. i invested in a get rich index fund as well as six stocks and one of my stocks is american eagle. i'm up about 12% after last week's debt, and i'm carrying special buy more shares? >> no, i would not buy more shares thing is an okay retail they're is doing better now, has got some better numbers. but i don't countenance buying it all the way up here this stock has already increased 26% for the year all right. retail has been just incredible. and i think canada goose, lululemon, and urban outfitters

are the best performers. buy -- look, i would really buy this canada goose, and i would buy it on some weakness, and i would buy some urban outfitters right here lulu, too rich for me. much more "mad money" ahead. the biotech stocks are soaring of late. does that mean they're a buy i'm checking in tonight's off the charts what do you get when you combine a fed chairman who doesn't want a recession with the absence of negatives about trade? i'll reveal the surprising answers ahead. and tonight's edition of "lightning round." so stick with cramer oo

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♪ at a time when president trump keeps slamming the pharmaceutical industry over excessive drug prices, you might think that the biotech stocks should be getting slaughtered, right? after spending a long time in the doghouse, biotech as a whole is having a pretty darn good year with an etf, the ibb using up 17% from 2018. not bad. every time the president makes noises about drug pricing, the group does get hit, but then big institution step in and buy the dips given biotech's newfound leadership here, i think we need to get a better sense of what's happening in some of the stocks

in the group with the help of bob lange. you know bob he is the founder of explosive options.net as well as being the brilliant technician, the all-star team behind the trifecta stocks newsletter he is also the author of know your options that's kind wife do that's called the fundamentals. that's not how the charts work instead he watches the action, the money flow, stuff that's empirical. even as it's far more an art than a science put it all together, though, you get a pretty good picture of how the hedge fund and mutual fund managers should dominate the market or behave what do the charts tell us about biotech? like every group, you've got your winners and loser in biotech, the biggest winners like amgen and regeneron don't necessarily overlap with the biggest performers let's look at both these leaders and lagers lange thinks the formler continue to run and the latter may be ready to turn we'll start with the daily chart of gilead. that's a former market darling that went out of style in 2015

when people realized a big hepatitis c cure was too dar effective. remember, chronic illnesses is what people really want here if you're investors, not if you got them it's curing a serious chronic condition and that was chronic and no longer is and that means much less repeat business this has been very good for people who suffer from hepc. for the last few years the stock has been put through the meat grinder as the company's pipeline is much more of a crapshoot. last year they paid nearly $12 billion for kite pharma, major cancer immunotherapy play. but while the long-term opportunity could be enormous, it's going to take a long time before it actually pays off. still, in the last few months gilead's stock has started to bounce lange likes the recent pattern of higher highs and higher lows. and you see that, higher high, higher lows. he likes the gilead as busting through the 50-day and 200-day moving average and through that one and that one okay, through the blue and the red. as well as the previous ceiling

of 75. the money flow which measures the level of buying pressure in a stock, that just went positive that's a pretty good sign. very reliable. and the relative strength index are an aside that's an important momentum indicator. it's higher than it's been any time since february. meanwhile, gilead's moving average convergence to convergence, we call that the mack-d, that line helps technicians to help changes and n a stock's trajectory before they happen. made a strong buy signal up a few weeks ago with a black line crossing above the red this tends to be a very reliable bullish sign throw in some unusually positive options call with heavy call buying out in october and january, and lange thinks that this stock, gilead is ready to roar the stock is overbought right here and next ceiling comes in around 82, up five bucks from these levels the green line but given everything else he sees in the chart, lange believes gilead can keep climbing he wouldn't be surprised if it

challenges the old highs by the end of the year that would be incredibly buttish, but i do think it's a washdown stock and ready to rally next up, how about celgene it's been punished mercilessly worried about competition for the main drug as well as concerns about the pipeline and acquisition that cost too much that isn't giving the bang for the buck so far. the stock down 20% year to date. but just like gilead, it's starting to pick up its head look at that take a look at the money flow. that's the cmf down at the bottom after spending ages in negative territory, the money flow has turned green meaning the big institutional buyers are finally stepping in meanwhile, celgene seems to have made a w-shaped, and that's this, a w havana shaped bottom here granted, that is one weird looking w. but a w nonetheless. that's a bullish sign, weapon stock now breaking out where does lange see it going? he thinks it could move to the 200 day moving average look how high that would be,

right? currently around 97 bucks. it says a lot in the coming ways and he may be right given the recent rotation without the rotation, though, i'm less sanguine finely, check out ilmn now technically we know this is not a biotech, and it doesn't trade like one it's one of the best stocks. it's a medical oriented technology company with machines that help decode dna but the thing about illumina is it's been one of the best performing large capitalization health care stocks the darn thing has nearly doubled over the past year and a half as far as lange's concerned, the chart is a thing of beauty just look at this. illumina has steadily been moving higher and higher, practically in a straight line money flow remains very robust the macd indicator is insanely strong with a continued pattern of higher highs and lows volume trends, they are terrific, okay you can see on that, that's a pickup, i know you can magnify that

but the volume is very, very good declines take place on low volume that's what matters. the only problem the is stock is overbought the relative strength index is at a relatively high level that's too high for most this thing has been overbought frequently since 2017. that has never been a reason to sell the stock instead, you've done much better if you wait for the next pullback, and we get those all the time and use that week to do some buying. lange doesn't have a target, but he thinks the general direction is higher, and he recommends you keep using weakness to do some buying then occasionally trim your position by selling into strength he's right just feel it bottom line, the biotechs and the biomed teches have start to show life. my view, if you believe the economy is going to stay strong, then maybe this rally does peter out. but you put on some exposure on any one of these or all of them, as i think lange is going to be dead right "mad money" is back after the break.

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it is time it times for the "lightning round. >> buy, buy, buy. >> s sell, sell, sell, sell, sell, sell, sell, sell, sell >> and then the "lightning round" is over are you ready, skee-daddy? let's start with john in michigan john >> hey, jim, i love your show. i got a stock that's trading 30% of its book value. it's deutsche bank >> yeah, i don't know if i can really take -- look, the company did say that things are better than expected. i think it wouldn't be a bad idea for them to raise apital. i don't care what the book is. i've been fooled by book value before how about joel in pennsylvania, joel >> caller: hi, jim thanks for taking my call. >> oh, you're quite welcome. what's up? >> caller: hey, you recommended four scout technologies a few month back and i made two buys on it. >> i feel even stronger about this now and i like palo alto. i like cyberarc.

i think those are absolutely terrific i like nice. i think that is good, and pru point because now we are battling with the chinese on intellectual property, and that means that the chinese might be making it so that -- >> buy, buy, buy. >> we need more cybersecurity. how about richard in florida, richard? >> caller: yes, thanks for taking my call, bud. my stock that i'm interested in is applied materials. >> it's too cheap. now it make take the whole cycle. it may actually take six to nine months for applied materials to come back, but i am urging patience let's go to daniel in california, daniel >> caller: hey, jim. thanks for taking my call. >> absolutely. >> i want to ask about cardinal health, chh? >> yield is almost 4%. it's hard for me to imagine how the stock got down to 50 it's not that bad at ten times earnings how about joseph in new york joseph >> caller: jim, i'm in the house of pain!

>> okay. >> caller: the question is, i have buckeye partners. shall i continue with it, buy it >> no,eght al monaco yoeped eye with saying the partnership is not working. don't buy any more of that stock. >> don't buy >> how about tina in tennessee, tina >> caller: hi, jim >> hi, tina. >> caller: thanks for your passion humor and integrity. >> thank you. >> caller: my stock is itw, buy, sell or hold >> my charitable trust owns it it's rather interesting. this is a company that is doing quite well while the stock is doing poorly with an absolutely terrible chart, reports next week i got to tell you, my charitable trust is not wavering. we'd like to be able to buy some in the 120s, 130s. but i think he should come on and talking about why business isn't as bad as the stock

indicates. harlan in washington, harlan >> caller: hey, im what do we do now with opko? >> it's coming back. we know dr. frost never sold any stock and the stock is low i have no thesis to recommend the stock without dr. frost coming on here and telling us. and that, ladies and gentlemen, the conclusion of the "lightning round" [ buzzer ] >> the "lightning round" is sponsored by td ameritrade what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade jimmy's gotten used to his whole yup, he's gone noseblind. odors.

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♪ combine a fed chairman who doesn't want the throw us into recession, which has suddenly become a big concern with the absence of negative news on trade, and you'll get a pretty wild rally not one, not two, but three oppositional groups that simply aren't supposed to move in the same direction at once i'm talking about the defensive recession proof stocks that need a cyclical economy to survive and the home builders. we had big winners in all three cohorts today, and that's highly unusual. let's start with the defense you have a whole camp of people who say forget what the fed told us about economic growth the treasury yield curve is almost inverted and that means we're headed to a recession, no matter what if you really believe, that then you want to own a stock like johnson & johnson, despite a premarket downturn, j & j back huge 3.54% as investors realize that the forecast which the media deemed a shade down was actually just a currency issue.

[ buzzer ] ♪ hallelujah >> sales accelerated in the medical device business. i'm been waiting for that. the company has a fantastic balance sheet, and i don't think it's threatened by recent ovarian cancer cases recently linked to their talc it's got a top-notch dividend. none of these things will be potentially impacted by a potential recession. what's i think it came from fed chief jay powell's congressional testimony. powell said the economy might not, quote, be unexpectedly weakening, end quote, because of, quote, current discussions over trade policy, end quote in other words, there is that thesis, the one that says president trump's tariffs are going to throw us into a recession. and that's why but this market seems capable of holding three contradictory ideas at the same time because there is two other whole camps, the camp that wonders what happens if the economy takes off and the one that does well when you have mild growth without inflation.

remember, powell also said there is a possibility of strong increases in the economy because interest rates and financial conditions, quote, remain favorable to growth. and we've also got lower tax, higher federal spending, and healthy outlook for growth abroad that's why many of the cyclicals also took off, stocks like ppg, dow, dupont, honeywell these are classic smokestack stocks for my charitable trust which you can follow along joining the club owns honeywell and dupont when the economy is expanding, these are the ones to go to. i think we'll see more of this kind of action tomorrow when the stocks united, continental and csx respond. and while i haven't listened to the call for texas instruments, that one looked darn good too. yes we have to worry about more presidential tweets targeting china. we have to be concerned about still more tariffs on top of tariffs. but the strength of the cyclicals suggest that the economic expansion will continue of course, i wouldn't be too much into that because the strength of j & j said just the

opposite then the third group rallying, the home builders led by dr horton and lennar. the stocks have both increased almost 3%. this matters because it tells a whole different story about the economy. the home builders rally when the fed is going to raise interest rates gradually and of course when there is not raw cost inflation. so maybe things are a little bit better and then there is music to the home builders' ears because it means mortgage rates won't soar, wrecking their business. slow inflation and slower interest rate hikes also help the retailers, and they rallied nicely too, helped by powell's comments that rising after tax incomes and optimism among households have lifted consumer spending that's an incredible confluence of positives beyond the fact that fang held in despite the decline in netflix and we have to wait again to see texas instruments. the stock is down on some other news, but the numbers look good. so what does it all mean i think these moves are all about a recognition that we have

a very thoughtful, very sophisticated fed chair whose not going to jump to any conclusions to slam the brakes on a good economy or throw acetylene on it to make the economy overheat a fed chairman wants to balance the risks, relies on the data, and seeks to do the considered thing for exactly what a stock market looks for he has become a force for those who are bullish, which is how all these disparate groups could rally at once today. an amazing thing stick with cramer. may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life.

you know i like to transport so much in the united continental, great quarter csx, great quarter that could really quarter tomorrow's opening because the transports are such an important part they represent commerce. and the market likes it when they're good i 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 i will see you tomorrow.

>> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ first into the shark tank is aaron krause, who believes his product will make every day cleaning easier. hi, sharks. i'm aaron krause from philadelphia, and i'm known as the daddy of the scrub daddy, the cutest but most high tech scrubbing tool in the world. today, i'm seeking a $100,000 investment