for those thinking of buying the falling "i"s, calls are a better way to do it. >> what a week, what a month, what a quarter we'll be back here next friday at 5:30 p.m. eastern don't go anywhere. "mad money" the 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 trying to save you money. my job is to educate and entertain and put today's like today in context call me or tweet me @jimcramer

good-bye september yeah, we had a rough month september's reputation is the worst month on average every year but now it's coming to an end and all i can say is good riddance after one more ugly session. dow sinking 500 points and s&p and nasdaq falling 1.51% what went wrong? put simply, the economy was too darn hot unfortunately, it remains that way. even though commodity inflation is largely under control, we have to solve the whf burden not that old pandemic from home. going forward, wfh, will stand for wages, food and housing. because those are the areas with the most persistent inflation. the fed must hang these and they have to do it by lowering the value of your house and portfolio. unfortunately putting your job in jeopardy. what a horrendous but necessary

policy this will ruin the purchasing power in the end if remaining unchecked. they are three sticking points the three key things the fed has not been able to get under control. jay powell hasn't stopped the wage spiral. there are too few people in the work force, a lot of people took early retirement he hasn't stopped food inflation bad to down weather for ukraine but it doesn't matter and hasn't stopped the cost of housing. i believe that is about to change with the new 7% mortgage rate in september, wfh ran white hot, hot, so the fed decided enough is enough and hit us with the third straight triple rate hike. that's remarkable. that's the reason your chief portfolio got laid to waste. will the september nightmare tonight? there could be but i think the nightmare will continue. let's start with the game plan for next week with the question in mind because i believe the market will have spikes but ultimately work lower for now.

we have three events that will tell us if october a an extension of september we got the labor report that's the most important think 12 of them impact for the whole month, all right, i expect too much highing and too much wage inflation as far as the fed is concerned. remember, we're in a good news is bad news environment and we actually want to see and hear about more layoffs, lower wages, more firings and i don't think we'll get to that. there is still too much business in this country. the other two events are speaking engagements by cleveland fed president loretta m mester before the open on tuesday and close on thursday. mester is the primary inflation hawk on the open committee i call her the guardian of the galaxy, she's from cleveland where the guardians play and wants to protect the whole galaxy from high inflation even if that is raising interest

rates into high inflation. she said that. i'm not putting words in her mouth. i don't think that's prudent but i understand what she's trying to do. raising rate ss into a recession is not prudent you can raise rates and see how they are doing, tightenings i agree with you have to understand now it's mester against your portfolio and she may not say she wants stocks to go lawyer but her hawkish statements say that. your portfolio goes down, spending goes down and wfh situation i said at the top of the piece improves because there is less demand for everything. it's a terrible way to have it happen the good news is mester won't have the payroll report to use against us i expect a red hot set of employment numbers and she'll be stride in calling for multiple rate hikes in interviews soon

after. she's the stalking horse her view is the dominant one how do you defend yourself against mester and her harsh judgments when she may have your interest at heart? own high quality companies with good balance sheets that will benefit from the declined inflation because that's what is going to happen. i'd like to be more inclusive but i can't do that until the treasury stabilizes. if it creeps towards 5% again like today by the way in the afternoon, it started doing it again. if it does that on friday, october will look a lot like september. and bonds will be a better deal than stocks. now, there are a lot of very loud money managers making calls that we're about to a recession, a cataclysmic one like 2007, 2009 i call that doomsday i understand anything can happen but i think armageddon does not lurk balance sheets are too strong at the banks. last night james gorman the ceo

of morgan stanley came on the show transitioning from too easy money to harder money from profit to stringent. the end will be panlinpainful. we're not denying that we had a good run and will pay the price. gordon is looking for the 4-4-4. 4% unemployment to bring wages down and a 4 % federal funds rate and 4% inflation to cut the inflation rate in half yes, the fed wants to get to 2% inflation but they may not do so so fast without wrecking the fabric of the country. we'll put in a bottom next month. too soon to tell if he's right and if it doesn't come true, i think we'll have more september. what else is going on next week? wednesday we get numbers from two sleepers that i follow closely. the consumer pack gaugaged goods company and the french fry potato company that hit a couple bucks from the lowest two-week

high and this market, i'm using an example so we saw this from nike last night all that happens is the downside gets higher and the down goes higher that's what i expect will happen with both when they report thursday we get a report from the charitable trust situation i like very much but this market is treacherous this is constellation brands behind modela and corona mccormick reports they haven't done anything in ages and needs to figure a way to grow the business the latter will preannounce a nasty set of numbers and i got to tell you again when a company like mccormick announces a negative number, the earnings reinforce the bad number this is in the penalty box for three to six months. it a great company we have an analyst meeting with norwegian cruise line worth drilling down because chief rival carnival reported a terrible set of numbers this morning and crushed norwegian

with the whole group of people like travel and services maybe that's coming to an end. i'm betting norwegian has better things to say than carnival but who knows. carnival stock was disconcerting. finally, on friday we hear from the pod company and i think they will make a bold prediction about the legalization of cannabis for the first time, i wonder -- it's so low. look, i'm a stock guy. i'm not a fed policy maker but from here i think patience is prudence even as more rate hikes are inevitable bottom line, fed raised, and raised the recession in 2007 and destroyed the economy. they must stay tough now but you can't be prudent, rational and tough at the same time because they can't let what happened in 2007 happen again. conrad in connecticut, conrad? >> caller: boo-yah what's going on, jim >> how are you doing, conrad what's happening >> caller: i'm all right 23 handle on pinterest and talks

of maybe they are going to sell if they have any sense what do you think on short term trade, are you short or long >> no, i'm not -- i just can't these are expensive stocks i don't have a cattle lalyst to explain why. i have to say no to buying the stock. as far as i'm concerned. it's too expensive joey in missouri, joey >> caller: hey, jim, thanks for taking my call. >> how are you doing >> caller: thanks for all of your advise for a novice investor. >> i have to stick by my guns. >> caller: you're doing a great job. appreciate it. your recommendation on roku? >> rok us still an $8 billion company and still sells -- still losing money so therefore i can't recommend that i sound like a broken record but my point is to help you and that means saying no to companies losing money how about josh in pennsylvania,

josh >> caller: jim, thanks for taking my call, buddy. boo-yah. >> of course, boo-yah. >> caller: kroger, bought it a few months ago hold it or buy something else? >> i think kroger is handling itself very well i think they're doing a great job in private label i think it's a super company and very inexpensive company and good yield and the company i say you got to ride through and you can indeed own when you're trying to slow down an economy, you can put big rate hikes. that's okay. you have to let the country catch its breath before you do them again remember, the fed raised recession in 2007 and destroyed the economy. they can continue to raise prudently but can't let it happen in 2007 and happen again. on "mad money" tonight, after a tough leave for the market, one stock exhibited peak performance. a closer look at vail resorts and give you my take i'm trying to spotlight good stuff. is it time to get bullish or buy? is the vix flashing warning signs? i'll go off the charts to find out.

in the face of volatility, it's a good reminder to think about mi diversified when you buy stocks, which of course, is why we'll play my favorite game, put your portfolio to the test 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 email to madmoney@cnbc.com or give us a call at 1-800-743-cnbc setnghi head to "mad madmoney.cnbc.com.

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horrible week, and cause me, where the dow and the s&p 500 both hit new 52-week lows. i wanted to point out that there is still bright spots in the market, not many but stocks that defy the gravitational pull of the average -- excuse me, i got a shiver managed to rally. take vail resorts. the darn thing rallied $14 from the 52-week low set during tuesday's horrible selloff as opposed to today's selloff it's like a ski lift climbing a mountain of negativity how did vail do it you ask simple, the company just reported a tremendous quarter with a bullish forecast for the 2023 fiscal year that opens another question, how is vail doing so well when everybody is terrified of recession and consumers are pulling in horns we saw that on carnival cruise today. let me answer that question because i like this stock a great deal and i think it's worth owning after the rebound over the last few days we're only a leg into it

we need to put this move into context. vail resorts is a company we liked much in the days before the pandemic then covid hit and the stock crashed but it quickly rebounded from the march 2020 lows pretty much rippling over the course of 20 months. remember, during the worst days of the pandemic, people loved anything related to outdoors -- getting a little warm in here. the on way to safely socialize, my mom said never talk with your mouth full, we've a glove. that includes skiing vail had to do a ten-month stint in the post covid penalty box, you know, like the peloton and d docusign it was like a pandemic play and pretty darn expensive last november when the fed declared war on inflation and anything with a high price to earnings multiple it got -- excuse me. fingers getting cold on the

slopes got so bad that vail was hitting new lows this week that doesn't help the ski trips seem like discretionary spending you do less of when the economy falls apart. these guys reported this is looking like a much better story than we thought. we known vail owns the highest quality mountain resorts in the country and the properties are spread across the united states with a couple international locations, as well they've been very shrewdimportan eyeing the stock because they announced a strategic shift. they decided to cut the epic past products meaning ski lift tickets and admission prices by 20%. they're trying to make the resorts more accessible even though vail is synonymous with skiing, it's synonymous with obscene levels of wealth they're trying to sell more season passes to people with less money, which i think is a great strategy because there is more of them than super rich

people vail's new strategy is a gigantic suck selcess but you wouldn't know looking at the stock. management talked about how it was a lit last september but vail didn't get much credit. two months later the fed declared war and a high priced earnings multiple went out of style on the wall street fashion show at the time, vail was trading at 50 times earnings so it definitely deserved to sell off in a newly hostile and hasher environment. from the highs last november to the lows this tuesday, lower than where it was when vail's business took a real hit in 2018 and to me, that is a little nuts what makes it decline harder to swallow is the company is putting up absolute numbers and the headlines missed in march, management raised the forecast and in june, posted a terrific beat and raised quarter. doesn't matter stock kept getting hit f fast forward to wednesday night, vail reported another great quarter. wall street cared because the stock was too cheap to ignore.

the summer isn't particularly important for these guys but this was the fiscal fourth quarter so we have full year numbers for 2022 and a forecast for 2023 that's extremely bullish. let's start with 2022. this is the first full year since they announced that new strategy i mentioned with the cheaper passes listen to what ceo kirsten lynch had to say quote, results succeeded our original expectations for the year driven by stability from th advanced commitment past products with 72% of skier visitation from past product holder and demand for lift tickets and an improved guest experience end quote put them together and there is strong underlying demand for the offering here. makes sense they're doing well if you run a travel business, you'd much rather lock people in with season pass because that gives a nice sticky revenue stream and the economy slows down like we seen over the last

few months as lynch said on the conference call, shifting guests from short term refundable lift ticket purchases to non-refundable pass commitments before the season starts in exchange for value end quote fabulous strategy. how about the guidance for 2023 fiscal year? this is what truly allowed the stock to sore higher let me take you through this vail's past product sales are up 7% year over year on a dollar basis and management expects that strength to continue through december they seen a ton of last year's pass holders buying ones for the new season with this epic pass convincing lower frequency guests to switch to more lucrative advanced commitment products makes sense. they're also looking for 890 to $950 million in earnings before interest taxes and depreciation up nicely. that translates 7 to 13% growth. what can i say business is good no wonder the stock spent the last few days roaring higher and

when the market goes down, think about this after taking a fresh look at this story, i'm feeling confident in vail resorts with the stock trading at just 24 times earnings roughly half of where it was in november plus you're being paid to wait you got 3.5% yield here is the bottom line it's tough i wouldn't be surprised to if interest rates go higher? this is high quality stock worth buying into weakness because it's inevitable this stock will come roaring back. " "mad money" is back after the break. >> announcer: after finishing a the vix. a friday version of "off the charts" is next.

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. after another turbulent week, we may need to see a lot more red because the economy is so hot and the fed very much wants the market to go lower and you can't fight the fed. we had a brief rally on wednesday or this morning the kind that temperatures you back into feeling bullish, you need to stay cautious and have a falloff like they all had lately the bear props are always important. the bear has not gone into hibernation, at least not yet. i'll stay on this case and if you try to poke the bear, you're going to get more. don't take it from me. tonight we're going off the charts with one of my favorites, a brilliant technician that's the founder of option pit.com. he's the resident volatility

expert and collapse there. normally when the s&p volatility index known as the vix or fear gauge is supposed to go higher and when the s&p rallies, the vix is supposed to go lower. that's how things behave when a trend is continuing. take a look at a pair of charts in the daily action of the s&p and vix. when the s&p found the footing in june, which is a great moment it was a great moment. found the footing and started marching higher, the vix steadily went lower. that's a nice rally. exactly as it should but now let's zoom in on the action of the vix since august what's weird here is as the s&p started falling in late august, sebastian points out we didn't see a strong move in the volatility index, didn't see one. normally you expect it to roar and instead have more of a slow rolling rally. and you can see this is the market going down, the vix going up look, that continued through early september. the vix moved up, sure, it

wasn't at all conventional with the hideous decline in the s&p 500. in the massive wave of selling that began on september 15th, the vix was sedate only this week it really exploded why is the volatility index behaved so oddly why has it not helped more sebastian thinks it's related to the massive upside being held in vix call options i never thought about this money managers buy these as a hedge against sudden volatility as today sebastian noticed there is a huge open call volume in future volume in the vix for november alone there are 131,000 vix calls with the strike of 35 and 141,000 with the price of 40 and the numbers get more bonkers at higher levels at 403,000 at 50. 256,060 and 179,080. if the vehiclix goes to 80, you looking at a meltdown.

that's 1.25 million open call contracts for the month of november alone and sebastian sees it, this means the market is hedged against volatility risk so the vix doesn't spike as hard as you expect there is no immediate race for a hedge against volatility because traders already have it on but sebastian points out that something is changed in the last week so i want you to take a look at this chart of the s&p and the vix. even though the selling and the s&p slowed versus where we were this month, the volatility index shot up much, much more. you see that boom it's like traders suddenly decided something big must be happening even though the averages aren't hit quite as hard the vix woke up. why? it comes down to bonds it's about bonds, bonds, bonds there's a reason i talk about the insanely high yield in the treasury that could go higher like today i want you to look at this this is a chart of the -- i know

this is confusing. i'm sorry, the lqdeif. the i shares investment grade corporate bond itf and ief is i share seven the ten year bond. this is the relationship between corporate debt and government notes. as you can see, the vix began to blow up investment grade bonds tanked relative to treasuries. now, check out this chart, which shows the volatility index of the tlt, the 20-year treasury. you can make a vix out of anything right now, the volatility of long term treasury is exploding higher this is a sign traders are worried what is going of in the bond market like i am. i'm not a trader but worried about the bond market. not good news. the bond market is larger and tends to lead the way and the bond market is saying the economy is too hot and we have to take rates up big put it together and while it's possible for the market to get a

short squeeze, which is i'm banking on, sebastian says the volatility index, the market and bond volatility are pointing toward lower stock prices. in his view, it's not the time to go long i understand that. what needs to happen before we can bottom, sebastian is waiting for the s&p to go down while the vix also goes down that's a classic tale it's coming to an end that does not happen he won't be willing to step in until the market goes lower on declining volatility how low can we go? look at the s&p over the last three years. sebastian is eyeing 3386 as his down price target. that's far away because that was the s&p's prepandemic high and that's a lot of thinking is about what happened prepandemic. that's down more than 200 points but once we reach that level, he's got to start buying the chart is interpreted by mark sebastian who is my favorite suggesting this market has more downside and way too early to go

really bullish not what anybody wants to hear but making a compelling case call me a believer as you know, this market is treacherous but unlike him, i also believe we could get a sharp spike up but for our travel trust, if that happens, we'll have to do selling. let's take some phone calls. let's go to lu in minnesota, lu? >> caller: hi, mr. jim thank you for taking my call. >> you're welcome. >> caller: i think you're working too hard mr. cramer. >> i love my job i love it. you're very kind, thank you. >> caller: i'm telling you so my question is, you know, what about walgreens you know, it looks like it's going down, down, down and i would like to have you comment about -- >> i don't think it's doing well i don't think it's doing well. >> i know that. >> cvs is doing better but much higher stock i like to buy in retail, i think costco is terrific they do all the things you get at walgreens and better. let's go to andrew in minnesota, andrew >> caller: hi, how is it going

is this jim cramer >> how are you, andrew, what's going on >> caller: i am doing well wow, long time fan and really nice to talk to ya i had a question, i was calling to get your thoughts on 3 m company -- >> sure, thank you, andrew thank you for the kind comments. my father used to rep 3 m so i'm bias toward it they have combat arms litigation that involves noise in the ears i'm very familiar with and that's not going well and have some ground water litigation both of those are making it so i don't want you to buy the stock. all right. the vix bond market and bond volatility is interpreted by mark sebastian suggests this market has more downside and way too early to get bullish we have a spike up the index is over sold we'll have to lightening up. much more "mad" ahead. we're playing a crimer favorite to see if your portfolio is handling the uptick and i have a plan for buying on the market

you won't want to miss and your calls in "rapid fire" in tonight's edition of the lightning round so stay with cramer at ameriprise financial, our advice is personalized. based on your goals, whatever they may be. all that planning has paid off. looks like you can make this work. we can make this work. and the feeling of confidence that comes from our advice? i can make this work. that seems to be universal. i can make this work. i can make this work. no wonder more than 9 out of 10 clients are likely to recommend us. because advice worth listening to is advice worth talking about. ameriprise financial.

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oh, boy, we've been in this bear market for what seems like forever but things come to an end and the market has to go lower, we'll figure it out together when this market turns around is to see the portfolio has multiple sectors and today we're playing "am i diversified. call me and tell me the holdings and tell me if your portfolio is diversified enough protect your capital let's start out with james on

twitter. my top five holdings he says, this is in his retirement account are united health, waste management, goldman sachs, costco and crowd strike. am i diversified james in los angeles a.k.a. cramer but with a k, important to point out look at this you have a really good internet balancing company for people to do streaming and waste management is one of the great diversified companies because they're all over the company picking up waste goldman sachs i like as a financial. the first to cut back when they saw business slowed. i thought that was smart united health is long one of my favorites with the division and data and costco, the only real retailer of any size that we own for travel trust other than tjx. you got a retailer, health care, finance. let's call it diversified industrial and a tech play but well insulated tech play i like this portfolio very much. i would not change a thing

all right, next up we're going to kevin in texas, kevin >> boo-yah, jim, this is kevin and jude from sugarland, texas i want to give a shoutout to my dad frank the tank mitchell that recently passed away and i'd like to also ask you am i diversif diversified? amd, snow, nvidia, lucid and meta thanks. >> first, sorry about losing your dad i know what that's like and, you don't get over it but you're in the same club i am and i hope the grief is okay. it a tough situation let's go to work together. okay, nvidia and amd are semis in the same markets. we're going to say we're -- we're going to keep amd because it's cheaper than nvidia keep that in mind. meta another technology company too much like these so say no to meta and snow dpflake technology

related to the data center that's too high and lucid, a very expensive ev car company. i'm struggling here kevin because i want to protect you. i need to see health care. let's just -- let's say bristol myers, let's do costco, let's do united health because we just did that or mix it up a little let's do rathyon we'll build around amd and lucid and add the other three. you're way too tech oriented in a market that is very inhospitable for tech and the nasdaq let's try another. let's go to john in north carolina john >> caller: hey, jim, big fat tjif and boo-yah from raleigh, north carolina i have five stocks in my portfolio and just want to throw them at ya i have bank of america i have plug power.

i have fedex i have honeywell, and i have apple. am i diversified >> plug power is speck hydrogen vehicles but we're going to call it speck right now. bank of america, premiere bank when it comes to number of assets that's got management honeywell from north carolina is a diversified manufacturer and aerospace and fedex, we like the fact the stock is down so much apple, own it, don't trade it if it's not the greatest time for apple. how many times have i said buy it better times are coming speck bank diversified industrial, transport and premiere tech company. i like that. boo-yah right back at you. we're not done we'll go to pete -- that's philadelphia. let's go to pete in kentucky pete >> caller: hello, dr. cramer this is pete in kentucky and thanks for all you do for the

blue color investor and my stocks are aos, amzn, frey, lpx, and spg. am i diversified >> all right we'll just be sure because some of these are a little too much like others and i want to be sure i got the right ones. simon, ao smith, industrial, amazon tech, louisiana pacific, tough quarter but i like their plywood business simon property very good 7% yielder right now but maybe taking a little more too much risk and then fryer, i just started studying fryer and i don't feel comfortable enough offering how i feel about it because -- i'll tell ya why. it's a battery company but a 52-week high is speculative. why don't we do this a speck i would take a little profit in that

great tech company and building company. a company also related in terms of heating, air and then a good retailer, not little too much risk there i think this is okay this is the one i'm most fref fretting about because of batteries and it's indeed diversified. that's a speck and not something that goes into an auto let's go to -- next up is john in maryland, john? >> caller: hello, dr. game t -- jim. this is john from maryland i want to see if i'm diversified, aep, abbv, vvn, panw, and last one is gis. am i diversified thank you. >> let me go to work my dad loved air he loved the try towns premium utility company, great

food, fabulous health care company. i thought the downgrade, which is stupid. oil and gas is terrific and single best cybersecurity, industrial, food, health care, oil and gas, perfect "mad money" is back after the break. >> announcer: coming up, cramer takes your calls and the sky is the limit. it's a fast fire lightning round. next

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it is time, it is time for the lightening round on "mad

money. time for your calls, buy, buy, buy, and then the lightning round is over. are you ready ski daddy? time for the lightning round let's start with rich in new jersey, rich >> caller: hey, jim, south jersey and philadelphia eagles, boo-yah to ya, my man. >> go birds. >> caller: go birds. earlier in the week you focused on the dirty dozen my company went public in '21 as well and getting hammered. should i add to my position in u.i. path or bakers dozen? >> no, it's a great idea about software for this robotic -- the things after just constantly doing repetitive motion and losing money i don't recommend companies losing motion on "mad money. let's go to rhonda in kansas, rhonda >> caller: hi, jim, boo-yah. >> boo-yah. >> caller: i need a little help.

i'm confused about lng exports only the terminals but also, marine export. what can you tell me >> okay. well, look, i think that export whether look, the best one i happen to think is actually energy partners. cqp, good yield, safe, long term in this business that's the way i would go. let's go to bob in massachusetts, bob >> hey, jim. thanks for all you do and greetings in boston. >> thank you. >> calling about a norwegian company in the energy sector that has oil and gas and g terminal wondering your thoughts about equinor. >> enb is yielding 7 that's a mistake that's a very good situation and i do like yield. let's go to tommy in florida,

tommy? >> hey, jim, it's tom from palm coast, how are you in florida? >> doing well. i hope everything is okay down there. what's going on? >> caller: you know, i'm a long term investor, jim and i've been following you for ten years now. i'm a club member for the past seven and i've been on your show three times asking questions and general question to start i'd say quickly is i'm 90% invested in the portfolio. 90% is what you have. >> excellent. >> caller: i was wondering your thoughts on the performance five years out and maybe and also another question on np materials, the rare earth min minerals. >> the stocks we're buying are for multiple years out and buying them slowly and low if they spike up, we'll get a little bit of empty materials does have according to research i read this week some of the prices of their materials have come down but it does make money

and it is very well run and i believe in the rare earth materials and they've got them so long term view of that is very positive. let's go to mike in pennsylvania, mike >> caller: hey, pl mr. cramer, are you today? >> good, mike, how about you >> caller: hanging in there. this is making me crazy. >> it's making everybody crazy so semi conductor laser, that's a great business but loses money. i know i'm a broken record we can't recommend stocks of companies that are losing money in a bear market it just won't work let's go to gene in arizona, gene >> caller: hello. >> gene, you're up, it's jim i'm good, how are you? >> caller: fine. my question is about pbr. >> yeah, you know what for a long time i followed this company, pbr and you know what i'm not going to buy stock in a country right now is in such

political flux that you can wake up tomorrow and discover that company is nationalized. that's how dangerous that company is now i know that seems extreme but i'm not going there. let's go to donovan in ohio, donovan? >>. >> caller: boo -yah jim i watch your shows and learning a lot. calling tonight about the stock abc. what do you think? >> very good distributor reasonable valuation does a lot does well no matter good times and bad times. call me a buyer of ameri source. how about adam in michigan, adam >> caller: hey, cramerica, how are you doing, man >> doing well. how about you? >> caller: not bad, not bad. i am looking at starting a position in bj what do you think? >> i like bj's very much it's inexpensive costco so to

speak and i think it does very well and i would be a buyer of bj's right here but my travel trust owns costco and i do prefer them because management is unbelievable and they are a volume player that will do incredibly well with 100 million members and just keeps getting better and better as a company hey, let's go to amissouri. >> caller: hey, jim, boo-yah. >> boo-yah, man, what's going on >> caller: this is my first time calling. i'm excited to be on the show. thanks for having me i want to pick your brain on new mountain finance company, ticker mmfc. >> i'm glad you asked about this this is the kind of company that looks fetching because we know it's got a good yield. we don't know what they're invested in and as far as i'm concerned. therefore, it's too dangerous. and that, ladies and gentlemen, is the conclusion of the lightning round. >> announcer: the lightening round is sponsored by t.d. ameritrade after a tough week, should

buying be on your radar? cramer is offering up some rules for the road, next

on this morning's "squawk on the street" if you buy stocks in this treacherous time, buy the stocks of good companies, good balance sheets and good dividends. my partner offered a patented no kidding look to me and that's a day i didn't feel a little naked when he did that. let me explain why this simple sounding idea is so contrary to the conventional wisdom on wall street now we had two good examples of what i'm talking about just today first, this morning we interviewed sanjay, the ceo of micron the giant semi conductor's quarter was okay but the outlook, i'm calling the outlook tremendously disappointing get the stock didn't go down as san sanjay explained it might take until the middle of the next year i followed it for 31 years the stock has always been boom and bust and the company trying

diligently to get away from the pos po posture with growth technology at the end of the day they make flash memory trips and still the ultimate tech commodities so we got the same old story micron has a lot of hot chips so customers double order to get allocations and make too many chips ending up with too much inventory that causes them to slash prices, crushing the earnings when you have an inventory correction like this, it takes two quarters before you can buy that stock in question with any safety that's how long it takes to clear out the inventory and start the process over again historically buying a stock like micron now has been too early. but all i heard today was a bunch of people say now is the time to buy. now, based on what certainly not history. at the same time, today, i heard endless calls that it's time to buy, buy, buy, the stock of nike

after it reported a gigantic glut it fell 13% today but all i heard is it's finally right. i come back and say please tell me why when you hear that there say huge inventory over hang, again, it takes more than one quarter to get rid of apparel inventory and the next quarter will probably be suboptimal some say you have to buy nike now because the china economy is going to open up and will turn around they're down 13% figures. who knows. does someone let me know china is opening up? i don't like to bet on who knows. i like to bet on quality now for example, if you really want to bet on a turn in china, do it with starbucks that is doing quite well in the people's republic and america why would you buy a company that just disappointed like nike when you can invest in excellence now instead? i don't get it and if i want to bet on a beaten up tech company, i'd rather go with qualcomm at a very low

multiple with an auto business with the franchise or let's be simple you can own marvel technology, a stock going down i see that stuff this makes chips for the one part of micron's business doing well, the enterprise so the fundamentals are good. if you don't know the companies join the club. you'll get all the information you need about those three there is a method to my non-madness. stocks have been crushed almost all stocks so why buy the trash stocks of damaged companies when you can buy the destroyed stocks of perfectly healthy companies? right now there is no edge to buying bad when you can buy good instead. that won't always be the case. weak quarters do create opportunities but in my experience you have to be more patient. these beaten down stocks are turnaround stories and those just take longer than other kinds of companies to turn why not buy the e stocks of companies doing well

th they're cheaper than the fallen stars yet the numbers are going to come down these people are like moths to flame. i like to say there is always a bull market somewhere and i promise to find it here for you on "mad money. i'm jim cramer see you monday the"the news with shepard smith starts now starts right now hurricane ian comes ashore in south carolina. the havoc wreaked as florida continues to assess the damage and search for the missing i'm shepard smith. this is the news on cnbc >> center of hurricane ian is approaching the coast of south carolina i ask people don't quit yet because it's still coming. >> now we are feeling the impact in north carolina. we're seeing significant rainfall. >> the situation in florida is likely to rank among the worst in the nation's histories. >> venice beac