have gotten killed, xlu has actually done all right. i think you sell that one. >> uri calls, they have december 11th investor day. i think they'll say some good things. >> dunkin' brands in your fa. >> that does i >> that's it for "fast money." "mad money" 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 isn't just to entertain but to educate and teach you call me at 1-800-743-cnbc. or tweet me @jimcramer welcome to the end of october. wow, the end of october we got a million reasons to sell. >> sell, sell, sell. >> and not a lot of reasons to buy. >> buy, buy, buy.

>> which is why the market is so choppy dow slipped 123 points the nasdaq gained 0.26%. that's why some like to dump their losers so they won't look like idiots. those are substantial. if you own anything connected to housing or to china. two problems that i've regarded as entirely man-made housing is being crushed by an overzealous federal reserve and behind is getting slammed by the president's trade war. now, i believe the fed will blink. there's so much damage being done by the surge in mortgage rates. if they look at the data i wouldn't be surprised if they were one and done meaning the fed tightens one more time in december and says let's get data dependent and see what happens but the chinese situation, i have to tell you that seems to escalate by the week and have gone from tiff to skirmish to outright economic warfare against china with the president's chief economic adviser my old partner larry

kudlow now telling "the financial times" china's intransigence on trade is so harsh that he's never seen anything like it as kudlow explains, the problem with the story is they don't respond. nothing. nada he went on to say that our detailed list of asks basically hasn't changed for five or six months so then why hasn't there been progress? kudlow says it's really the president and the chinese communist party. they have to make a decision and so far they have not or they have made a decision not to do anything wow. of course, you could argue this is just tough talk ahead of potential negotiations or you could say, this is an emphatic end to the talks. if there were any. we better get used to some serious collateral damage because of this kind -- you know what, my ears always pick up when i see chinese communist

party. blas it reminds me that president trump is not a big fan of doing business with communists and in the back of his mind i get the sense he wouldn't mind if we stopped trading with china entirely. in other words, i think the president wants the economic equivalent of regime change. yet not an economic war but a cold war with the chinese once again playing the pre-nixon role of worldwide nemesis that's not what wall street wants to see which stocks hammered and which ones could have more down side the one i'm most worried about is rockwell collins. it's being bought by united technologies which reports tomorrow morning a little more than a year ago rockwell decided to sell itself to them for $30 billion. the last stand-alone maker of aircraft components. if it closes it could allowed united technologies to break itself up into three separate

companies. otis elevator, climate control business anda aerospace which includes pratt & whitney really terrific company but the operative term in that sense is "if. the chinese have the ability to block it on antitrust grounds. s that is what china did rockwell had high ophopes it wod close by the end of september. that was up from 106 when we first got wind of it china hasn't approved it yet and the stock has shed a quick 12 points indicating that there's a tremendous amount of angst among the ashburbitrage community. get this, nxp's stock plunged from $127.50 where it was supposed to close -- it never got to there, 127.

all the way down to $76. oh, man. with most of that coming because china blocked qualcomm from acquiring them i don't think rockwell collins will fall that hard. it will not be a picnic. at the same time united technology taking it on the chin because of the holdup in this transaction and as long as the chinese drag their feet it will make it less likely. it would unlock so much value and greg hayes is doing such a good job, the ceo. if china decides to play ball, it would be the easiest thing in the world for them to approve this deal. kind of as a show of good faith. lots of smart people are betting they'll do that because there's no good reason, no justification to block the transaction except to use it as a bargaining chip in the trade war the consternation, i'm calling it legitimate. how about micron here's a commodity semiconductor company that get half its sales from china and trades less than four times earnings.

wait a second. that insanely low price to earnings multiple tells you people are worried that the company won't be able to make its numbers. now, micron does have general weakness in its flash memory division and boom or bust business it is but our rocky relations with china don't help. maybe the chinese want to make it harder to do business it sent it into freefall putting pressure on the whole industry including applied materials. some get clocked at the mere mention of china source is 11% of merchandise from china it lost 10% of its stock on friday forvf. kimberly-clark said its business in china was down high teens horrendous stock took a $3.83 hit pvh, the parent of tommy

hilfiger had been making huge progress in china given how strong it's u.s. sales are and how europe has been very good, i have to wonder if china must be capped i can't think of another reason why pvh has fallen down to 121 now we know there are companies with such good relationships in china they'll probably do fine no matter how heated the trade war gets apple has tremendous ties in the people's republic. they manufacture so much stuff over there that any sanctions on apple would be really like china cutting off its nose to spite its face the chinese stock market rallied hard on talk of china advocating whatever means necessary including its stock market in the past the party has been good at bolstering growth. i think starbucks which had a shortfall in china reversed the decline which is why it's had a good run and a lot to like about starbucks overseas domestic business hasn't turned yet. still have you to be cognizant the strongest stocks were texts

that have no meaningful exposure to china, amazon, alphabet and facebook, all doing much better until the last 15 minutes which was ugly and coming in loud and clear that those are the ones people like going into the next quarter, bottom line as mutual funds dump stocks of companies that trade with the enemy, as part of their normal selling they have decided to swap that cash into the highest growth stocks with no chinese exposure and therefore there's a whole lot of f.a.n.g. going on let's go to brian in florida brian. >> caller: hi, jim how are you doing? >> i am good how about you, brian >> caller: i really need help here two reasons, first of all, i'm in a lot of pain as a giants fan and short of u.s. concrete in the 70s and bought a full position and when it went up to 86 sold off to 70 i thought i had an opportunity now it is at $30 a share and my mailbox reads the house of pain.

the ceo who you had on your show is on auto sell for an army guy, he doesn't seem to be supporting his company or shareholders at all. i understand that the as a whole they've sold off but nothing like how u.s. concrete has it looks like the democrat also pick the house and the republicans will keep the senate if so do i add to my position and -- >> no, they have to come up with an explanation i know there's no infrastructure but this is in free fall and i can't tell you to catch a falling knife. we've asked several times and been saying without an infrastructure bill you can't own the stock and that unfortunate view has been borne out by the action in uscr. stocks that were up today are having no exposure to china and that's a whole lot of f.a.n.g. going on trouble in toyland hasbro took a tumble is it still working through the toys "r" us demise i'm signature down with the ceo

to see what it means for them. then the parent company of vans and north face reported bitter than expected earnings the stock still took a hit i'll break it down and even though the stock market might seem a lot less welcoming over the past few weeks there's still opportunities to be had. it is there time to buy? the most unlikely place so stay with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question, tweet cramer, #madtweets send jim an mail at madmoney@cnbc.com or give us a call at 1-800-743-cnbc miss something, head to madmoney.cnbc.com.

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weaker than expected down 7% year over year toys "r" us did a lot of damage but got hurt by overseas with a strong dollar and a lot of inventory that had to move while they have lucrative partnerships with disney those declined because there are no major releases the company announced a major restructuring to help contain costs. as i mentioned they told us inventories are down significantly which is what we want to hear heading into the holidays toys "r" us related weakness baked into hasbro? is it safe to start buying the stock at these levels? let's check in with brian goldner, the chairman and ceo. let's get a better sense of where they are going welcome. >> hey, skwiem. >> there was a lot of fear at the beginning but you've been saying there's still going to be noise. at what point will the noise go away and you will go back to the

forecasting you've always done before toys "r" us >> toys "r" us for us last year, this was our largest quarter, q3 followed by q4 so as we get through the holidays and into 2019 we've said we'll return to growth and profitable growth as we expanding operating profit margins absent one-time costs and, again, as we go forward we'll be beyond the toys "r" us issue so how to get through 2018 >> okay, so let's talk about some of the things going to -- that really stood out because i think that everyone knows about the negatives already but we'll go back. play-doh something good with play-doh >> yeah, play-doh is growing quite well and using a lot of social media listening and scraping we're looking at how the audience is playing with the brand. it gives us a lot of insight and we move very quickly it's a brand that's expanded across this expanded channel strategy that we're employing, so all kinds of retailers can get involved in that creative product and it also goes global.

so we have a team leading the innovation and we're excited about where we go with a brand like this. >> also when you say that the inventories are lean i want people to understand there have been a lot of what toys in the channel. it looks like i know you can't say, listen, we're done with toys "r" us but things are better than they were three months ago >> oh, no question in fact, in the u.s. our retail inventories are down 17% in europe our retail inventories are down more than 20% and really the next quarter is the last quarter where toys "r" us has a meaningful impact we're waiting for resolution to toys "r" us asia as the two partners work out a new arrangement in china and then we move forward without toys "r" us but, you know, around the world we're adding retail channels. u.s. team added 10,000 in the last year and 21,000 in the last three years. all kind of retailers out there. shipping all kinds of new product based on a strategy that allows us to make great product

at every price point for any consumer and that's where we're going this holiday season is with a lot of new kinds of retailers as we continue to build the business and they want to capture the share that toys "r" us left behind >> now, do we have to be concerned? we're a little bit -- let's just say we're flummoxed by when companies source a lot in china, whether there's big issues up ahead. how do you feel? can you give us comfort china is not a terrible place to have toys made? >> well, first and foremost we produce 25% of the revenues we do in the united states in the united states. we just brought play-doh production back to the u.s overall we produce about 70% of our product in china but we've been moving production out of china, in fact, in the next two years we should be down to about 60% out of china and i thus far have heard in working with the administration that we are being a good actor and a good player and we expect that the business

will be fine coming out of china. going forward we don't expect to see any major tariff situation. >> that's good to know partner brands declined 37%. is that the kind of -- just a hole in the lineup because nothing new was introduced >> well, we do have year over year we're just comparing to a year ago, we had the "star wars" movie and had a lot of entertainment around disney princess, "beauty and the beast" and comparing year over year you don't have them this year. >> i went on -- i googled transformers bumblebee and sent me to amazon and looked like an amazon product, so to speak but it's yours do you make good money when i buy something on amazon like that >> absolutely. our cost of business with amazon and other retailers is quite good and ago nostic about how w

grow as we become more agile, we're doing those shopable social pieces of content so when you go online you find a product or you might find a short video can you click right on that video and buy the product that at your favorite retailer in one or two clicks. >> i want to be sure people understand you've become an entertainment company. when i look at what you are doing with fortnite, what you're doing, you know, frankly overwatch, easy to speak to that this is not the hasbro we had five years ago as much as i liked it now this, is better >> well, we're first launching a monopoly fortnite. thus far it was the number one new item in the games category in the first week of the fourth quarter and then for the spring we have nerf overwatch coming where you get to play the game for real live obviously making great blasters and role play so you can play as your favorite character and then that will

follow with nerf fortnite which comes in the first half of 2019 so very exciting you get to jump out of the game and play for real. >> do people -- got lost -- a lot of people, when i was listening to the conference call this was the most pertinent thing. we know take two, no one puts hasbro in that category. after i read this i started thinking you should be considered as part of that group. >> well, in particular as you look at what we're doing with our new arena product, what we're offering that audience and that consumer and gamer is the opportunity to play in the digital space. we built that product ourselves. we're publishing it in open baita. it's really exceeding all our expectations we're getting great feedback from our gamers and we'll roll to an official launch early in 2019 and you'll see a suite of mobile and pc-based games for magic the gathering as well as

dungeons and dragons and wizards of the coasts and the other thing about magic the gathering that is fantastic it's been a competitive card game for so many years and tournament-based game and allows us to go into esports. you'll see an announcement shortly talking about how we'll enter into e-sport notice a major way. >> i know the stock acted much better than a lot thought it would. a lot knew it would be a tough quarter but better things are ahead. thank you, brian goldner chairman and ceo of hasbro i remain convinced this is the best -- it's the only one left in the whole darn thing, mattel has real issues. hasbro has a great balance sheet and great future for 2019. "mad money" is back after the break. >> announcer: "halftime report." weekdays noon eastern on cnbc.

even a week when most of the market was breaking down some stand out. vans, north face and a host of brands, i adore them i recommended them repeatedly. when vf reported and they went into freefall, you better believe i took notice. first of all before we do anything else i need to eat crow here while i told you to expect the stock might come under pressure in my game plan the week before, i didn't expect a meltdown like this the market made a big mistake. at the end of an emotional panic filled week investors saw an imperfect quarter from vf corp so decided to shoot first and ask questions later. because they dumped the high quality stock i think you're getting a chance to buy it at a huge discount to where it deserves to be traded. hear me out. i think it's too low to understand i want to put them under the microscope before we get to the quarter

remember why we like it so much. last month we did a deep dive where i explained there are two big things happening first the company spinning off its slower growing denim business early next year and once that happens vf will be a much more focused company with an incredible lifestyle brand known as vans and taken a niche sneaker and turned it into a turbo one. granted i didn't expect this much weakness but no doubt the long awaited pullback has arrived. so what happened to crush it did they report a big sales and earnings miss or slash guidance? no, not at all if you look at the headline numbers, really complicated but if you look at the numbers there was a lot to like about vf corp. their revenue from continuing operations came in higher than expected up 15% year over year, organic

revenue was up 6%. while the company's gross margins after what costs were sold was flat for the quarter it did increase by 70 basis points meaning without the impact of acquisiti acquisitions wall street was looking for a buck 33. so far so good the guidance, vf corp raised it's full year revenue slightly and tightened their earnings forecast both numbers pretty much in line with expectations. we got a good opportunity to buy. a good one what about the individual brands vans, we like and north face, well, vans is un-26%, that's spectacular. the north face up 5% more on that in a second timberland was down 2%, not great. wrangler and lee, the two big jeans companies i'm so worried about, let's call them awful wrangler down 5% lee down 9%. vf corp is spinning off this stuff. it's going away. yeah, and that's going to happen

early next year, precisely because they don't want to be in the denim business anymore and want to break away from the ole image. vf corp's direct to consumer business is booming, fueled by a red hot digital division that grew by 48%. we love it when apparel makers cut out the middleman. the margins are much higher than when they sell it to a department store if you're thinking those numbers sound good and scratching your head about why the heck vf corp's stock plummeted friday, i do not blame you one of the mysteries of our business, so confusing and drives people away the darn thing opened down 3% and got worse as the session went on finishing down 10.7% someone wanted this real bad a few weeks ago it was a $93 stock. now 77 so what went wrong first and foremost they were a victim of great expectations as deutsche bank titled their note after the strong quarter and i love this, strong gains

advance but investors were looking for more, end quote. second, plenty of real negatives in there especially in the conference call not a good one they source a lot of merchandise from china top of the show, 11% at the moment that has people worried because of all the trade dispute that, you know, i'm taking it seriously. more seriously than most people because i see no sign of it being resolved any time soon and now in his prepared remarks at the start of the call the ceo who is real good said they could reposition the footprint to mitigate the impact of additional tariffs but they sell product in china, continued expansion of the people's republic is kind of a great long-term theme i like for apparel. he said their chinese business was thus farunfazed by geopolitical rhetoric but then thus far is let's say, well, that's doing a lot of work in the sentence, right? thus far to me means, well, who knows next still china only accounts for a

little over 2% of their sales so i'm not going to hold that against them you could argue he was doing the responsibility thing laying out the risk because he sought to reassure investors that so far everything is fine but the problem with doing the responsible thing is that he gives the bears a lot of ammo. and the analysts ask the question about how bad china is going to get if you believe it the business is doing fine. it's only 2% of the business on top of the trumped up china woes the numbers from north face and timberland, second and third largest brands, they weren't disappointed disappointing numbers. while north face is still growing at a decent clip this was a slowdown in all regions outside of the americas. now, the response to that saying they sent a lot of orders from their biggest customers got pushed out into the next quarter. i don't know

as scott rowe said they're looking for greater strength looking forward. we have at this point good visibility to the order book, end quote so i'm not worried i think they should get the benefit of the doubt the market didn't feel that way. timberland, no benefit of the doubt. third straight quarter of bad numbers. that said right now timberland is working to diversify beyond its boots and into new categories he told us they're seeing a lot of momentum in professional footwear for women vf corp thinks it could be a d midsingle digit growing. when a team as seasoned as this says something unlike the analysts and the brokers i'm on board, finally there was the hideous weakness in the dennis business you never want to see bad numbers like that but i don't think they were particularly relevant because they're getting rid of the division. what do you do with it

this was not lose so%. i think it's a bargain trading at less than 19 times next year's earnings estimates. in fact, this morning piper jaffray's retail team released their results and vans scored so well the analyst figures could trip until north america the bottom line vf corp reported a good but not perfect quarter it just had the misfortune of reporting during a panic so the stock just got obliterated as i think the stock has become a steal at these levels certainly and will return to excellent growth once it sells the jeans business and goes in the rapidly expanding businesses that we like so much let's go to maleka in illinois >> caller: hi, mr. cramer. i just wanted to say i love your show you're a smart, intelligent person and bring creativity and fun illustration regarding your talk about the market. >> thank you. >> caller: my question i just

got into investing a little over a year ago and most of the choices i have are retail and skin care and cosmetics and what are your thoughts regarding ralph lauren i know due to the up and down of the market last week i had 500 shares and they sold 250 and like today it went up 4.53 so what's your recommendation. >> this is when you can't look at it every day. it trades so crazily up 4 is better this is now a very well run company and i always thought it was terrific but the new ceo is great. hold on to it. jim in south carolina. jim. >> caller: boo-yah, cramer jim from south carolina. my question is, with the massive decline of stitch fix 50% in the last 30 days, is there any chance for recovery back to the

50 level or should i sell? >> no, i'll tell you, i really respect and like katrina but that was not a good quarter and in this business, honestly when you report a not good quarter, that early on in your public existence, there's no forgiveness. you have to have a couple -- she's got to have a couple good quarters before anyone comes back to that one hey, that's just the way it is it's a tough business. all right, not all sell-offs are created equal. vf corp had the misfortune of reporting during a greater panic. this market might be ugly but still opportunities. right now i'm eyeing old line tech companies that could be work picking up. i'll reveal the names. ignore at your own risk. i'll tell you why it's got me shook. tonight's "lightning round" coming up so stay with cramer.

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i don't blame anyone for feeling dispirited here. this stock market has become a lot less welcoming over the past few weeks. >> the house of pain. >> in fact, i find the action downright worrisome. more on that later even when things get ugly, even when you just want to sell everything and stick your head in the sand so you need need to watch it i'm telling you to keep your eyes open for opportunities. that's the "mad money" creed o. i feel it's worth searching even on ugly days like when the dow goes down, the nasdaq did go higher granted it requires a lot of intestinal fortitude to hold your nose and to buy something here a lot of times i want to put hot sauce on the names maybe i like them more let's talk about finding

touchstones in a tough environment where it's really difficult to try to make money regular viewers know i find the recent action disconcerting and listen to what companies are telling us and what the stocks are showing us it feels like we have to have a slowdown courtesy of the fed and trade war. as long as jerome powell, very good man, sticks to his guns and insist we need three more rate hikes, i'm going to have a hard time feeling sanguine about this market but you know what, there are other ways to valuate stocks maybe powell will change his mind and maybe the fundamentals aren't capturing it and every week we go off the charts and check in with some of the best tech nithss. sometimes the charts tell a different story. while the charts are far from perfect in a tough market they become extra valuable because they're motionless and motionless touchstone, the charts don't panic when we go down, don't get oeuphoric

mark sebastian predicted it would have another leg down and spoke to him last tuesday after that big rally very few people felt like that but mark read it right emotions get in the way so looking at the technicals can be helpful. that's why tonight we're doing a doozy. going off the charts with the help of larry williams the semi mythical technician who has been trading futures commodities and stocks more than 50 years and made us a lot of money. he is a legend and written nearly a dozen books and created a lot of indicators which are named after him and got his own website where he teaches people to become better traders ireallytrade.com when he makes a prediction you do well to listen. oh, boy,are we going against conventional wisdom. he really likes at this moment ibm. ibm of all things. that's right, ibm. he thinks it's poised to rally even though the stock has been a total house of pain.

brim ju they just reported and it was widely disappointing and they tried to embrace newer businesses and offset the long-term decline of the ole ibm, the incumbent ibm but in the last quarter it didn't work out and revenue slowed by 2% even the faster growing parts were weaker than expected. but, man, ibm, the stock has come down a lot. with it bounce ago long at levels we haven't seen since january of 2016, remember the stock market was much lower. why does williams think it's ready to rebound look at this chart which shows a couple of things you got the action in ibm in black, okay, that's easy enough. in red you have a combination of two cycles, williams is always looking at how stocks are traded in the past to predict the future direction in the case of ibm there are two dominant cycles this is very interesting stuff. one that comes due every 325

days and the other that's 145 days when you combine them which is what he's done you get the red line look at this this is really cool in terms of being ahead. these cycle was have predicted the recent declines in their stock and would have gotten that one before it went down, okay, more importantly when you pro-them forward they suggest it could be ready to roar higher. not just go higher but roar higher i don't know what's going to occur to make it happen but let's take the chart at its word check out this chart it shows the seasonal pattern in red. williams wants to see how it trades in an average year and find you usually get a terrific rally in the last week of october. hello, if you bought ibm in late october of last year or in 2016 you caught a very nice trade all right. it's worked. remember this, is the ibm seasonal pattern, this is the reality. okay but how reliable is this pattern? i mean is this fanciful or fact? i sometimes joke that technical

analysis seems like astrology. you're looking for -- i'm aquarius, they tell me looking for all sorts of formations but no guarantee that having the right sign will give you the right results you want however, even if we don't necessarily understand why it works some of these patterns are a lot more bankable an others. when he ran the numbers, again, i love this guy, he found that buying ibm on the 19th trading day of october, 19th, okay, 19th trading day of october has produced 48 winning trades over the last 48 years. as long as you use a $99 stock and hold it for five days and sell one you get an up day after that as things go, pretty darn good, right? of course, the thing about technical analysis it works until it doesn't maybe this year the pattern doesn't hold and becomes 48 out of 49. but at the very least williams has good reason to think ibm may be poised for at least a shareholders bounce so maybe

this is one you go for if you think that that tech rally today spreads. finally and most important i want to you take a gander at this chart of ibm which includes one of his proprietary indicators the williams cotsi a tool that helps us figure out whether big institutional money managers are buying or selling think of the blue line as the measure of informed buying at high levels. meaning they have mon and did a lot of work. this chart suggests that the big boys are buying ibm hand over fist pretty interesting maybe they're attracted to ibm as a value stock good yield maybe they believe the fed will relent and all things tech will bounce maybe they think the tech rally today is a for real -- it will include ibm. no matter what, the one thing we know about buy something it tends to send stocks higher. they can close that without a problem. the bottom line, the market has gotten ugly. i thought we had a real rally

going and said on twitter i thought they could finish. they only finished on the nasdaq but sometimes the charts can point to opportunities in the most unlikely places right now the charts as interpreted by larry williams suggests that ibm, i mean, ibm is worth buying here "mad money" is back after the break. cramer has burned the midnight ole and ready to run the gauptszlet all week he sits down with some of the market's most influential players. join "mad money" for must see interviews you can't afford to miss

>> announcer: "lightning round" is sponsored by td ameritrade. it is time it's time for the lightning round. >> buy, buy, buy >> sell, sell, sell. [ buzzer ] >> and "the lightning round" is over time for "the lightning round. start with giorgio in illinois >> caller: boo-yah, mr. cramer.

>> sweet. >> caller: i'm a young investor and would like to thank you. it is truly appreciated what you do for us. >> you're very kind. thank you very much. >> caller: with techs going up and down and earnings just a few weeks away, and its recent partnership with zoom video is dropbox a buy? >> i think it's settled down to a level where people feel comfortable with it. when we sat down with the company we felt pretty good and the stock kept going lower i think it's trying to bottom. david in texas david. >> caller: boo-yah first-time caller. >> good to have first-timers what is going on. >> caller: calling about jkhy. >> we did a piece about this saying it is definitely one of the great companies that nobody has ever heard of. i like it. neal in georgia. neal >> caller: hey, jim, nice to talk to you. roll tide. >> oh, man could beat a lot of nfl teams. what's up? >> caller: okay, my company z

trade -- if oh, man, this one is as hot as a pistol but the market turned on big momentum stocks. it's diverging from the -- the business is great but the stock could be under pressure because of so many tough things that are going on in the nasdaq right now. let's go to pete in maine. pete >> caller: hey, jim, boo-yah from the great state of maine. it's an honor and a privilege to speak with you today. >> same. what's up? >> caller: i have a question for you. i acquired myself -- i bought myself some albemarle at 95 last april and it's been hovering there, a little up, a little down is it one i should keep? >> it's a great opportunity. there's just a lot of good chemicals within that one and it's held up much better than everyone else. let's go to joe in new york. joe. >> caller: boo-yah, jim. >> boo-yah. >> caller: joe from long island. my stock is cloudera and been a

holder since the merger. >> i thought it was a great merger they've been beating each other's heads in and going at it tooth and nail and now there is a chance for thecombined company will i think make money and i like the acquisition very much let's go to jake in new york jake >> caller: boo-yah, mr. cramer >> boo-yah >> caller: thank you for all you do i want to give a quick shoutout to my adviser from atlantic city and had a question on palo alto networks has come down a bit. what do you think of the company? >> buyer of it for action alerts why? there's an article about facebook wanting to get that security i think everybody wants to get into security and palo alto is the best charts bad thank you for telling me that and that is, ladies and gentlemen, the conclusion of "the lightning round." >> announcer: "lightning round" is sponsored by td ameritrade. n historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis.

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i know the averages looked relati relatively bad today but the big indices are masking tremendous weakness at least the big ones. we had so many breakdowns it was mind numbing worse what is going down and some are going up. when i produce the charts the only winners were utilities. you could have thrown a dart at the utility stocks and would have made money.

the worst one i followed first energy performed the best. how bad is that? let me put it this way the utilities are the worst leadership group imaginable like being led by general custer. you know that's not going to end well other than that there are a handful of health insurers that put up points. another recession proof group as well as dollar general and walmart and the recession retailers. the individual carnage is struckive. while many investors begin to realize most stocks can't possibly handle being stuck between the tariffs and fed rate hikes the vast majority keep insisting the fed is right why? because the employment numbers are so strong. people, this is crazy talk first of all the unemployment rate is an historic lagging indicator. if you want to make a forecast it's the last thing you should look at. what is great is the stock market and if you want to believe that the fed is right to tighten four more times you need to ignore the fact that the home builders like kb homes have seen stocks

get eviscerated. when i scrutinize the charts of warehouse or martin marietta, u.s. concrete, united rentals, ppg, dozens of others involved in construction of housing in particular it screams slowdown yet i honestly believe that a fed chief, if he looked at these stocks it might mean nothing to him. he's becoming like a racehorse with blinkers on why does the action mean so much to me? historically they have been arbiters of really severe downturns. there are many other charts in the tech world including any cloud stocks and the internet and they've been pummeled. when land research reports a good quarter, then the selling begin as new while facebook, amazon and alphabet rallied the fact remains tech has a problem you know what it is? there is too much stock supply for example, we have way too

many cloud stocks and makes it difficult for anyone to find their footing. semiconductor stocks, uninvestable group and it's awful. if -- it's the housing related stocks like fortune brands, home and security that lead me reeling. they're both down 35% from their highs. hideous moves suggest 5% mortgage rates are an anathema to those who want to remodel the most egregious performers were the industrials perfect book ends to the collapse of housing under attack from the trade war and fed can you imagine? how can the fed get even more hawkish when it seems like the president has passed -- when the president has passed the point of no return when it comes to negotiating with china it's full stop sure, the chinese market rallied 4% last night. you know what thanks to the trade war i don't see that helping our companies. we'll likely be excluded from any turn in china's economy

because of politics. that doesn't seem to matter. maybe these stocks are all wrong, every one of them maybe the fact that csx went down after that fantastic quarter means nothing. perhaps we shouldn't care about ppg and maybe the fed thinks the action in the stockley is arbitrary, capricious and random if that's what powell believes he won't blink but if he's more in touch with reality this would be a great time to say, we'll reassess after the december rate hike those words would send us soaring higher but whether or not we'll hear them, that's an open question. stick with cramer.

something is transforming and our world.. it's the longevity economy - americans 50+ driving 7.6 trillion dollars... of economic activity every year. right before our eyes, aging is unleashing exponential growth... ...in every industry. are you ready? we are. a-a-r-p is teaming up with business leaders and innovators... ...sparking new ideas and real solutions. so, what are you waiting for? tonight american greed has two episodes at 9:00 $37 million insurance fraud and then the daughter figures out how to strike it rich killing her mother two hours of "american greed." 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 see you tomorrow

narrator: in this episode of "american greed"... y'all feeling good? ...meet professional saxophonist donald "ski" johnson. he's a recording artist and red-carpet fixture... y'all looking better than me, man. ...who runs the jazz for life foundation. but the feds say johnson's charity helps no one but himself. it shocks the conscience. money was being taken from these charities, and it was going to line his own pocket. narrator: in an exclusive interview, johnson insists he's no scammer, and he's tired of investigators calling him a con man. they don't respect me as an artist. they think anything i do should be free. and the minute i ask for a dollar, it's a scam.