and says this is what i stand for. >> i think he's been very clear and he's embraced the president's position on trade. >> he's definitely softer. >> all right that's been an incredibly dramatic "fast money," thanks for joining us >> thank >> "mad money" with jim cramer 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. 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 save you some money my job isn't just to entertain you but to educate and teach you. call me at 1-800-743-cnbc. or tweet me @jimcramer you don't get to be the longest bull market ever, 3,453 days without doing a lot of things right. so on still one more day where

the average defied the odds do you gaining 64, s&p advancing 0.21% and nasdaq climbing also, it's important to learn from this run you need to understand it's constantly climbing a wall of worry covered in wire and cut glass. when you run out of worries you tend to run out of upside. believe it or not bears are the ones that power a rally. their buying pushes stocks higher now, before i give you a history less song about the last 3500 days, let me point out investors got a whole new reason to sell this market, this very evening, when michael cohen president trump's former lawyer pled guilty to violating campaign finance law at the direction of a candidate for federal office a candidate. presumably that means president trump and i'm sure there will be a drumbeat that trump can't survive this and it will start tomorrow morning i'm not trafficking in news fake or real but trafficking in things that will worry those who

like the certainty of a sitting president who is predisposed to higher stock prices and easy money. now, look, i can't tell you what will happen with this new set of worries that just came down. but they are bringing down the stock market with them and that's something you need to focus on but i can tell you this particular bull has overcome a whole host of different worries including something a lot won't like tonight i'm unlikely to write this market off despite reverberations of cohen's guilty plea i see many stocks going down why don't we do our history lesson now what the bears have fallen prey to and what the bulls have triumphed over keep this in mind in tomorrow's trading for those who decide i've had enough with the s&p, i'm going to be out of it. i think it'll be wrong but first there's the skepticism

from the very beginning of this bull market when the s&p 500 was at 666, it had to contend with a widespread lack of faith in stocks as a whole asset class and never ends i googled a bunch of stories about the length of this market and not one was even remotely celebratory. just the opposite. most explained how the bull was on its last legs can you believe this of course. according to professional worrywarts the bull has been there for seven or eight years and tells you even after the longest bull run no one takes it seriously. does that mean that we've been right? anyone who thinks stocks are headed higher is automatically considered suspect especially on a night like tonight, especially but crucially this skepticism is the main reason for the bulls' longevity and think this would have ended if they would have gotten too euphoric. when everyone is too bullish you run out of buyers. people wonder if this is setting up for a record decline.

that is music to my ears even though i heard the music on the minus. let's go a step further. the people who rail against this market tend to be hedge fund managers and they've been dead wrong on the way up and no one ever calls them out. i am sure they will be out in full force tomorrow morning over the cohen/trump news worry number two, for years we've heard evaluations are too high and stocks are plain to expensive by any yardstick you could argue that some of the market got too high but then that part corrects and we start over again and are stocks expensive? last year they sure did seem pricey of course, then we got tax reform and created an earnings bonanza that makes them look a lot less expensive the whole asset class and, sure, any time there are expensive stocks amazon, let's puzzle over that for a second the skeptics have laid bet after bed against these kind of

companies and time after time they've been wrong stock surges higher and isn't that the amazon story? this evening we had the vicious often pointless gridlock and rise of the tea party and freddie in 2016 but how neither hillary clinton or donald trump would be good for the stock parke and tonight the guilty plh president's former lawyer. until president trump unveiled his tariff plans the bulls had free rein. even those seem dealable as the s&p took out its previous high today. fourth, fear of the fed. for three years the rev has been raising rates and we've been told you should never fight the fed, sell, sell, sell. don't trust the market when it is tightening but, man, you would miss out on epic gains if you followed that advice in part because rates were so low to begin with fifth, the debt ceiling debacle.

when congress is railing over whether we should pay our bills, there was a huge freakout. this market got crushed. scared a lot of people just one more amazing buying opportunity. sixth we had a mini bear market all over the place, one after another since the beginning of this rally the beginning of the bull. the thing about this bull it is a rolling bull market. while the overall bias has been higher there's always been higher bear markets that's been mauling entire sectors and take housing. they have been hated until today when we got a good number from toll brothers, rather than being discouraged this home builder used the weakness to buy back vast quantities of its own stock and it guided the whole group and housing bear market looks like it may have ended but a new one, the oil bear market the oil complex is down gigantically many semiconductor stocks were

getting slammed. when one leadership sector gets tired another one replaces it. portugal, ireland, italy and spain were all supposed to be on their last legs and each time i have tried to tell you they will be solved and each time i've been ridiculed eighth, china, the people's republic caused tremendous pain in the u.s. when its stock market collapsed lieding eading flash crash and we bounced back and we're in fear of everything china does these days. two sides of the coin. what do you think? collapsed dominance, i like that i hear a lot argue it's a loser. president xi doesn't need to worry about being re-elected maybe but maybe not. their economies are a lot more vulnerable than ours and it's getting hammered they get sidelined it happened to chairman mao and

can happen to president for life xi ninth we're told inverted yield curve go above long terms. i think the ten-year is conduct up in a massive manipulation game and should be higher but i'm not concerned. we have been living with this threat for ages and it hasn't proven to be a problem finally, tenth, there's f.a.n.g., the narrowness of the rally that is f.a.n.g. we've watched facebook, apple, netflix and google and they've been overvalued and hit by constant downgrades. i've also heard that the first day amazon would describe all retail it didn't. honestly f.a.n.g. survives because of reinvention and facebook bought instagram which has been its savior. it wouldn't be -- i wouldn't be a seller even as the last quarter was horrendous amazon developed amazon advertising and web services

apple developed an amazing subscription stream and alphabet has self-driving cars. look, these are just the biggest walls of worry the tip of the proverbial iceberg, an iceberg that includes a guilty verdict for a once close associate to the president involving campaign finance that will give us a bear story that will freak out those who thought president trump could go untouched from these scandals again, the news did send the futures tumbling i am not going to ignore it. everything brings out sellers. good to see it can't change its initial stripes. here's the bottom line, you want to know why this market has lasted so long it's because the bull is an under dog the whole way. it felt like the bears were right at our heels and that's what gives us the fuel to keep going higher. when someone like me says something positive we get dismissed as morons. if nailing the longest running bull market in history makes me an idiot, i don't want to be smart. al in north carolina al

>> caller: hey, jim, thank you for taking my call >> of course >> caller: i wanted to talk to you about a company that just received approval for a new drug epipen on a generic side of the business and as we both know, when a generic product comes out there should be lower prices for consumers. what are your thoughts on this new product for tiva on the pharmaceutical side? >> i am not a fan. i do not like the commodity drug companies. there's so much good in the j & js, why do we have to go there. bob. >> caller: hey, jim, i've been a fan since "mad money" began. >> oh, thank you. >> caller: many thanks to you and your staff for all you do for us home gamers popular product lines and great licensing deals in place, and it ran up after its recent ipo, pulled back a bit. hit an all-time high and pulled

back again during last week's sell-off it's up almost 200% the last six months and is approaching its all-time high again. what are your thoughts on funco? >> this thing is just too red hot for me even though it's the top of the show, i admit i need to do work on it before i possibly give you an opinion on it you obviously have followed it closely. i have not it's in one of those newer companies and i have to do work and i will come back how about we go to scott in minnesota. scott. >> caller: hello, mr. cramer thank you for educating all of news the ways of the market. >> thank you. >> caller: my question concerns monster, which my wife bought many years ago when it was an enhanced beverage. we have a stake in the company still. is now a time to sell it >> no, i like that last quarter. i like that category i think they're back on their game this thing is an up or down

situation. right now it's up. i would not sell it could be longer lasting than people realize whi while we got new worries tonight, manafort, found guilty and michael cohen who pled guilty, the bull has defied the odds and overcome these worries and that is remarkable can it stay remarkable well, the history says it can. "mad money" tonight, move over, maternity leave, with pawternity leave for new pet parents showing how much we care for our fuzzy family member, i'm focusing on animal health. tonight, i'm eyeing under the radar pet play that could be worth owning then we've been waiting for shares of cisco to break out it seems like the time may have come but does its latest rally have staying power and i'm going off the charts with starbucks to see if the coffee giant could continue to brew much more than triple venti cappuccino.

stick with cramer. >> announcer: don't miss a second of "mad money" follow @jim cramer on twitter have a question, tweet him at #madtweets send jim an email to madmoney@cnbc.com. or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com. (vo) ovewhelming air fresheners can send you running. so try febreze one. with no aerosols and no heavy perfumes.

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let's talk when one of the great growth teams of our era, the humanization of pets as we treat them like members of the family spending on them has skyrocketed. a new one, it became public a year ago called petiq. it has treats that help make your pets healthy. when petiq became public they didn't make a splash then earlier they acquired vip pet care, a chain of veterinary

clinics. since then they reported two strong quarters. it sent it from 28 to $35 in two days' time so can this keep climbing let's talk to the chairman and ceo of petiq to get a better sense of how they're doing mr. christianson, welcome to "mad money." good to see you. >> thanks, jim >> i'm so glad you're on you know this is the first time that you're on but we have been a huge backer of this amazing theme. can you tell us where you fit in in the overall idea of humanization of pets >> right in the middle of it the company was founded on the principle that there is thousands and thousands of millions of pets and that number is increasing. our third year in a row where more pets have been brought home than babies and identified a trend to dramatically improve health care for pets and identified that the health care of pets wasn't being addressed well through the broader retail market >> all right, well, so we take

our dogs to the vet. the vet gives us prescriptions then what happens now with your company? >> so our company being different, when we started the business we made those same products that were available at the vet available through major retailers like walmart and costco and others, tractor supply which was a big change. up until we started the company those veterinary items were never available in that type of environment and did it to give you optionality and for you to save money and there was a huge market that was underserved this those environments and knew if we could educate them we could grow the overall market, increase the share for everybody and that's where we get a foundation to grow it. >> i guess helping the explosion is the brilliant vip pet care deal obviously that really energized the company. tell us where that came in. >> yeah, so we took the company last year, we knew we would have opportunities to continue our vision and push it forward and having public currency put us in

a position we could use capital out of the ipo to make that acquisition. what this did, we bought the last national footprint of operators of clinics giving us a significant footprint to add a significant number of vets to our company which we felt was the next big step we could make as a company to dramatically improve health care through those environments so by bringing vets into the market, having best medicine available through major retail outlets and bringing that vet closer to where more pets exist that were underserved made a ton of sense and the numbers have spoken for themselves. >> you put your clinics in pretty visible places. >> we do i mean historically we ran them in tractor supply and other pet retailers. this quarter we recently opened up a significant number of vet clinics under vetiq inside of walmart. >> nothing can be better than that

are the numbers good so far? do you expect that could be blown out to the thousands of walmart store? >> we're excited about the customer base. the largest pet retailer in the country. they sell more food and take care of more pets than anybody in the country so to have an opportunity to serve walmart's customers is a huge opportunity for us to access more underserved pets out there we have 20 the company announced we plan to build a thousand additional clinics over the next five years. it won't all be walmart but we know there will be more at walmart. we've expanded and added a few at tractor supply this quarter and have pet food express and added one so building clinic where it makes sense. >> we use the tractor supply one. good vets and nice prices. obvious place to bring your pet. really fantastic how about the e-commerce >> it's been explosive we entered the e-commerce channel last our principle was

we wanted to build enough of a base it made sense to go online and went online the first of last year and started with a low base and i think we're on our sixth quarter in a row we've had our highest growth rate of the channel in that space. it's been fantastic. >> yours is -- i'm putting together an etf and will have you and idex and all our faves a great story. i hope you'll come back for the next quarter that's the ceo of petiq. this one fits, guys. it fits in our wheelhouse. "mad money" is back after the break.

sometimes a high quality stock needs to take a few months to catch its breath before resuming its long march higher take cisco a longtime cramer

fave under the leadership of chuck robbins they've been changing itself into being more diversified. by the second half of last year the transformation was getting obvious and stock started roaring higher but then they seemed to stall out. it couldn't get track at all and results started slipping and the turn always seemed like it was a quarter or two away. last week they reported a true blow-out quarter that put the dow to rest and sent its stock screaming higher >> buy, buy, buy >> new york stock exchange, earliit hit a new 52-week high cisco was about 400 times earnings it's not that anymore. we've been waiting for them to give us the great quarter that would prove that robbins' plan was working and this was it. why am i convinced it's ready to

roar chuck robbins has been laying groundwork for years they brought him in as the new ceo and it was left behind by rivals within a year of taking over he started signaling a major course change and wanted them to shift focus from hardware to software-based networking with a major focus on security. once you're in hard to get out he has a ton of layoffs and been aggressive but using their cash to acquire other businesses to change the face of cisco in 2016 cisco bought jasper technologies, internet think cloud and a security software play and snapped up one i thought was a good acquisition and bought a cloud application monitoring platform and bought broadsoft. it is a leading player in cloud calling and contact center solutions and deals continue in may they acquired a company and that's an ai-driven relationship with amy chang which i think is fantastic

then another cybersecurity play that's doing fabulously and it changed the face of the company making the business much more software focused with higher gross margins. what's not to like took a while to pay off. last summer it was obvious robbins was making real progress for the 2017 fiscal year cisco got 43% of its sales from software and services and most of that was recurring revenue from subscriptions even better, deferred revenue, remember how mark taught us how that is a key metric related to software and subscriptions increased by 50%, monster growth at the same time cisco started rolling out high products but you need to pay a subscription to access the new software features that's why i've been so positive you know us in cramerica we love subscription-based business models. we love enterprise software and cybersecurity. we love the cloud. cisco is an old dog, an old networking dog that decided to

learn new tricks that fit right into our wheelhouse. coming into 2018 wall street got optimistic the company just reported a strong quarter in november they believe management could go on the big transformation and had $64 billion of cash overseas, tax reform which made it one of the biggest winners from the tax cut because they could now repatriate those profits and pay only a token tax rate even if you thought their metamorphosis might have been rocky they have more than enough cash to make major acquisitions. they have a general buyback. all of this equates and analysts recommended the stock. mid-february they delivered another terrific quarter, the company gave you real revenue growth for the first time in two years. management's forecast of the next quarter was robust and rolled out a $25 billion buyback after the passage of the tax cut which was equal more than 12% of the total share count. even for a $200 billion company a 25 billion repurchase program

is enormous. this was chuck robbins telling you he thought the stock was cheap and again the analysts loved it and stock roared. take a look. it started going higher. we had really nice movement. didn't we? okay, now, cisco shares began to stall. some of it was because the whole technology sector was getting slammed and some because the trade war broke out and half of its business is from overseas. wow, okay, however over the course of april and early may then the stock rebounded it rebounded dramatically. it ran into the next quarter after the last few results people expected another straightforward blow-out that's what they kept delivering they didn't get it when cisco reported in may i actually thought the numbers were pretty good i did. i do a lot of work on the company and followed it since 1992 but the market clearly disagreed. even though they posted a nice top and bottom line, revenue

growth accelerating the guidance was merely in line, remember how much we care about guidance not better than expected on top of that when you drill down there was legitimate imperfections. their recurring revenue made up a smaller percentage than the analysts hoped for and maybe soft cash flow, i thought was fine. people didn't like it. these are the metrics people look for to keep track of the progress of the company so it got slammed. i told you it was an overreaction, all right? which brings us to last week i like that blue line. isn't that cool? yeah, man. all right. it brings us to last week when robbins delivered the great quarter that we were waiting for. once genesis co-gave us top and bottom line and accelerating revenue growth up 5.9% year over year this time the guidance was fabulous just really bullish. management forecasting 5% to 7%

revenue growth yes, meaning that at last you've got a probable hope acceleration is not over but will continue. we don't want to get out of the stop/start pattern cisco spent $6 billion for repurchasing their own stock how much money do they have and using earlier declines to snap up 3% of its share count that was smart again, though, what we really care about are the so-called business transition highlights that tell us how the switch to software is playing out. subscription made up 56% of their software revenue, fevered revenue from subscriptions increased by 23% year over year and it told us transformation is on track maybe was never off track. on top of that chuck robbins laid down a positive story and explained the growth is a huge opportunity. lately we've been seeing an explosion in multicloud strategies where they use services for one thing and

azure for another. by the way, chuck told me on "squawk on the street" they were not close to google. the business is on fire. double-digit revenue growth and the start of the show where we think about hacking. you know what, even -- this is what is so confounding to me even after this latest move right here, all right. do you know this stock sells for just 14 times earnings i think that's insane. cisco is paying a bountiful 2.9% d dividend yield if it pulls back you know they'll be buying it right next to you the bottom line, chuck robbins ever since he's become ceo has done a masterful job of turning cisco around and it's good to see he's finally getting credit

for it no nonsense guy, no hype he has got total humility and i think that in some ways you have to have champions like me telling the story but make no mistake, it is the beginning of the story. i think the stock has got a ton of room to run and you want to get on it before it takes that journey. hey, let's take a question and go to ken in nevada. ken. >> caller: yeah, hi, jim i just wanted to find out -- i was interested in purchasing ibm and then when i noticed last week or the week before warren buffett unloaded his complete portfolio of that, is that still a buy or -- >> okay, this is a very complicated story. first of all, i'm glad you asked me it is a very complicated story because the problem is is that ibm keeps getting better and better but so does everybody else, so does everybody else and it's competitive i believe they're put in a bottom i genuinely believe in what's

occurring there but the skeptics abound i think they're going to be wrong. i think it's inexpensive peter in indiana peter. >> caller: hey, jim, want to give you a boo-yah from greenwood, indiana >> what's what i wanted. what is going on >> caller: your opinion on smar, the company, cloud-based manager. they got a great product i use it every day, it's sticky. great growth and all my clients love it. your thoughts? >> okay, well, you obviously know more about it than i do i'll never say, wait a sick, let me give you my side because i don't use the program so here's what i will do this stock has been red hot i've got to do work. it's just like what we had with yesterday. obviously you know more than me. i'm taking -- let's just say i'm going to do some homework. cisco took a break but now it's ready to work.

it's just sitting here just for the taking staben starbucks' pumpkin spice latte is here. i'll tell what you it could do for the stock when i tackle technicals then is this market showing signs of a true slowdown don't move before you hear my recession take and your calls rapid-fire in tonight's edition of "the lightning round" so stick with cramer. ♪

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it's that time of year again, pumpkin spice season is almost upon us can it save starbucks? here's a company that's been troubled with slowing same-store sales growth and big chinese business that's not as good as it once was but starting roughly a week from today starbucks will unleash its popular pumpkin spice lattes will that be enough? or has it become passe once september rolls around you can get pumpkin spice everything, lattes, oreos, twinkies even pumpkin spice soap. still the world goes crazy for this stuff and since starbucks was the original pioneer it tends to give them a shot in the

arm. tonight we're going off the charts with the help of tim collins. get a sense of where starbucks might be they did walmart and nailed it when the company cut guidance in june, it plunged from 57 to $47. i mean, in about a week. after they delivered some pretty subpar results however, in the past month and a half starbucks has been making a comeback in part because of an aggressive buyback and in part because coffee is at a 12-year low and fantastic execution going on here now. it looks like the loyalty program is going rapidly china's third party delivery issues have been resolved. i like what i'm seeing so is it possible the worst is over as i said to david faber this morning, before we get ahead of ourselves, will he's check it out. when collins looks at this he likes what he sees not only is starbucks very strong for the past week, the stock has left its june lows in the dust look at that remember those levels?

collins thinks they should make a short-term bottom and especially since buyers have pushed them up 14% from its lows and while this is a big, big move he's betting the stock has more room to run i like this bet. why? first of all collins points out they have rallied above its 50-day moving average, okay, so for the first time since may, let's take a look. you see that's the red line. it's now moved above it. the blue line is very positive typically technicians like to buy winners. and when it's above its 50-day moving average, all right, well, then you know, you know it's behaving like a winner it's become something that every technician is looking at so from collins' perspective to see it close above that moving average for several days in a row is a pretty darn bullish development. second, for the past six weeks they were trading higher but in a fairly tight channel those are the purple lines

it's just this narrow range was tilted in the right direction. as long as it stayed in this channel you could expect slow and steady gains but late last week starbucks broke above the high end of this channel at 53 which has become the stock's new floor of support down a buck from where it's currently trading and just in case it starts pulling back the bottom of the channel gives us another floor of $51.75. he's looking for just the opposite so am i. third, starbucks has given us bullish costs and stock super short-term 20-day moving average crossed above its less short-time 50-day moving average, the green circle, okay. that happened just a few days ago. it's a positive sign and means the rally has been accelerating. in conjunction with everything else what makes collins feel optimistic a lot of things going on it's very positive fourth when starbucks cut

guidance in june it came down from 57s to 54.83. what technicians call an unfilled gap the stock is trading at 54 so it's less than a dollar away from this gap. collins expects the $54.83 level to act as a ceiling of resistance once they break out above that he expects it to quickly fill in the gap. which is what usually happens in these situations in fact, collins thinks it will be smooth sailing from $54.83 to the stock's spring highs which come in at just under 60 bucks lastly if they rally a few interkrs from here he predicts it will run up 9% to 10% that was the daily excuse me. let's take a look at the weekly. when we zoom out the recent bounce starts to look more muted but collins believes it's significant. when they broke down this june, all right, we got to keep going back to the june level, it was terrible the stock plunged to levels we

hasn't seen since the huge sell-off in 2015 so get another pullback, a serious one to take it below $50 bad things, he says, will occur no real support or floor under 48 bucks where the stock bottomed however, as terrible as that sell-off was he notes it triggered an interesting pattern, one we have seen a few times over the past three years. you see this gray area, okay, on the chart this is what's known as a moving average envelope specifically it's the 20-week simple moving average 5% envelope, a mouthful meaning it shows you the 20-week moving average plus or minus 5% every time starbucks has fallen outside of the envelope, the stock has bounced. usually that bounce is quick and usually it's big, in fact, each time starbucks has dropped below the 5% envelope it's then rebounded to touch the high end of the envelope at least the very least usually within a few months okay, so if that pattern continues where would it put starbucks? the high end is currently 57

bucks. as far as collins is concern that that is probably the minimum upside he thinks it puts his $60 target in play. remember the last few times we saw this pattern starbucks kept rallying when it got to the top of the envelope. even better take a look at the full stochastic oscillator this is a momentum indicator it helps to measure whether it's gotten overbought or oversold. collins loves what this tool is saying what makes it positive even though it's run up substantially over the past six weeks the oscillator is still printing pretty low levels. last week it was in oversold territory. now, it's no longer oversold but still a long way if being overbought in other words, the oscillator is saying that it has not moved up too fast too far. historically this kind of low reading is bullish especially in combination with the simple moving average, a signal i just mentioned before

put it all together and collins likes starbucks as long as it stays above 50 unless we get a big breakdown he's predicting it will sail smoothly at $57 in the near future with perhaps another run to $60 by the time thanksgiving rolls around. i'll take that gain. the one thing now that some are worried about, we checked in with another terrific addition who said interest rates would go lower and author of "higher probability commodity trading. she says while the price of coffee has been getting slammed she'd be a buyer down here because the upside out weighs the potential downside garner points out shorts have gotten crowded a lot of people betting against coffee and that's often a sign prices are getting ready to bottom wait a second. coffee is so cheap right now, i don't know about you, it's not like they passed the savings on to the consumer by cutting the price of the latte, i haven't

seen that come down in price to the $4 ra4 range lately this recent run is just the beginning. perhaps it will take off we have been through it before but maybe it signals they're getting their act together and as long as coffee prices stay down i wouldn't be surprised if it continues especially given the terrific stewardship we have seen from kevin johnson including a nice bump in the company's loyalty program and a lot more people signing up and partnership with alibaba that should reignite chinese growth which i think is the key to getting this stock back to its old glory and i think it's happening "mad money," it's back after the break. ♪ with tripadvisor, finding your perfect hotel

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give your family the security it needs at a price you can afford. >> announcer: lightning round is sponsored by td ameritrade it is time, it's time for "the lightning round." >> sell, sell, sell. >> then it's over. are you ready, skee-daddy? "the lightning round." jed in california.

jed. >> caller: boo-yah, jim. >> boo-yah >> caller: my stock is ntle, norwegian cruise lines >> they had a good quarter it is looking up a good place to be joe in new jersey. joe. joe. joe? >> caller: hey, this is galen in illinois >> what's going on >> caller: i'm good, dr. cramer. appreciate you taking my call. see if we get the ceo of this company on your show sometime. i paid $6 a share for this back in 2014. it hit a high of $99 in june of this year after a conference call and dropped down into the 70s. nzp ingredients. >> that's a refinery and distillery we do want to get them on. now to joe in new jersey joe. >> caller: hello, cramer >> yeah. >> caller: thanks for recommending first data.

it's up over 50%. >> thank you. >> caller: thank you very much for that my stock is valley national bank. >> regional bank and i do like them we had them on it's very cheap. how about alex in new jersey alex >> caller: hey, thanks for taking my call. >> thank you >> caller: i was wondering, i was looking at defensive plays and get your thoughts on this company. awk. america waterworks. >> doing quite well. i like it. not that cheap but has defensive characteristics. that, ladies and gentlemen, is the end of the lightning round. >> announcer: the lightning round is sponsored by td ameritrade i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills.

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what does it mean when johnson & johnson and merck and pfizer see their numbers go higher no catalyst, nothing according to the con vevengsven wisdom, this is the last thing you want to see. when drug stocks were higher they're predicting a recession, plain and simple >> sell, sell, sell. >> i don't believe it but historically it's been a pretty reliable sign. i can say the exact same thing about utilities. we had american electric power, the biggest transmission company on the show last week. while i'd like to say it jumped ten points because of above average customer payments all i can point to is the yield on the

ten-years is down and that dr e drives them higher don't get me started both going higher and both playing to an economic downturn. the herjavec fund playbook i always operate from says you should be afraid when all these recession stocks are hoaring higher i'm not saying i'm throwing out the playbook but will say this, i have a different explanation i think all three groups, okay, utilities, reits, drug stocks, consumer products too, i think they've lost their brpredictive power. first, yes, there is an obvious correlation between the ten-year and these dividend stocks when rates are headed from 3 down to 2 1/2 and when they're headed from 2 1/2 to 3 they become sells. since rates seem to be headed lower they're all buys if the rates bounce, they're all sells. but second crucially far more important these stocks no longer

really have a correlation with the overall economy and this is remarkable, people i think the real linkage that matters is with the flow of funds by money managers within the internals of the market. when we worry about world trade selling we buy staples and if the trade war picks up it's possible global growth will slow i think the rally in the drug stocks is about institutional money managers simply not having enough exposure to a terrific group that got too cheap merck has keytruda which is huge and johnson & johnson has fabulous potential blockbusters that aren't baked into the stock at all yet and investors like stocks with potential positive catalysts that haven't moved and you know the drug, well, count them in as stocks that haven't moved and now consider that allergan which was the most despised has gone from 143 in may to 191 they've made some but nothing that i think moved the needle.

i do think there are positive catalysts in the rise, otherwise, i would never have liked allergan in the first place. how about the real estate investment trusts. they're better but the rest of it is etf money in search of yield while real estate has done a surprising good job of holding up value you can rant and rave it means a recession is imminent as so many people tell me but to me employment, retail sales, consumer confidence are all so high that the idea of a recession seems absurd in short the rally and recession stocks doesn't mean what you think. it does not mean recession still, i always want to be cautious about the moves, the action in these identical stocks is back from 2,000 and rallied and the recession was around the corner but this time it's different, people. i know dangerous sentence. oh, please there's no recession there's simply a rotation. a rotation from one group that got expensive to another group that got -- that fell behind and got cheap. let me put it this way, for more

than five years now the worst mistake you could possibly make was trying to overthink this market don't try to be too clever when all the economic data says things are great, maybe things are. and you should take it at face value. i know it sounds crazy but, hey, it sure has worked so far. stick with cramer. welcome to at&t innovations where we give you more for you thing. and here's where we shrink the biggest names in entertainment so we can fit them into our unlimited wireless plan. who's first? no.

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never celebrate anything including the longest bull market in history because tonight we got some guilty news. that's right we got associates to the president, both guilty and we think that, well, look, they're going to cause a big decline in tomorrow's session at least in the opening. that's been the pattern and what should be different this time? i say nothing. just be ready. i always say that's a bull market somewhere i promise to find it right here for you on "mad money. i'm jim cramer and 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." ♪ my name is brenda coffman, and i'm from kokomo, indiana. (whirs) i own and operate retail cookie stores throughout the state of indiana and florida. i am a hometown girl, and i married my high school sweetheart, and we have two wonderful children who are the pride and joy of our life.