away. you saw it reflected in the average, with the dow gaining 103 points. s&p climbing .67%, nasdaq jumping 1.12%. this was a well deserved rotation. so who's moved to the front row to do whama jama against the bears? two of the most hated sectors at least until today, the industrials and techs. it's amazing. these guys look like beach volleyball players having the time of their lives out there. so let's get to what happened. the key to any rotation is to have a group of stocks that's so beaten down that when the companies merely do the numbers they do higher. when you have a really incredible rotation like we saw today, you get the most astonishing thing imaginable. companies deliver shortfalls or guidedowns and have big moves up anyway because people are too negative. consider four of the most

stunning moves i've seen of late. intel, going into the quarter last night, could people have been more negative about intel, extrapolating the hideous macro and dell and hewlett-packard? last week as part of the game plan i said if intel reports a shortfall then rallies, oh, boy, look out, bottom, tradeable bottom. what happened? as predicted, radius, shortfall, cut forecast. however, underneath the company was bullish about the fourth quarter. told a terrific store about gross margins. and spoke positive about everything from data centers it widows 8 and the tablet coming from microsoft. it was pros that headlines couldn't capture. of course traders sold intel off in the headlines. heaven forbid they read the commentary. i know it's really boring. i do it. when the smoke cleared the stock reversed and went smartly higher. that was the clarity call for buying all of tech today. i hope you listen. sure enough, the genuine pin

action from intel, it was so powerful, you know what it did? it remind ed me of the days of yore. you got fabulous action in all things pc including microsoft which intel made you -- you have to break out into socks. not the red sox. not the white sox. i'm jealous that they got youkilis. but in the socks -- the philadelphia semiconductor index soxx. we're not done. after the close we got numbers from ibm. sky work solutions, hubba hubba and qualcomm. you could have purchased much lower if you listened to my friend at the conference earlier in the day. hey, i was tweeting with the hash tag you know what i mean? second side, it's the rally in mc. this tech stock has been heavy for days. days. problems at the top of vm, the cloud play they own a ton of,

spin off 80%. emc issues a statement saying, whoa, come on, we're going to do the number. do the number. it's called affirmation. three weeks ago the stock would have been hammered mercilessly. instead it rallied $2.16 to .4% racking up the best performance in the s&p. the big data storage play people were worried about it reshuffled execs and blew the doors off the numbers. pin action, large, salesforce.com. f5. red hat. all the cloud plays where people have been emulating the rolling stones trying to get off the cloud. hey, no one wanted to move like mick jagger today. most amazingly, stocks, businesses dissed by intel were like sandisk. intel said it was getting weaker. that's like getting a strike and having the ball jump into the next lane for a spare over the bumpers. nice roll. then there's stanley black and

decker. here's a stock that smashed every quick draw mcgraw. the hardware company reported a monster shortfall. the stock initially gets hammered. they don't bother to read the commentary. they don't have time. then it was stapled with a nail gun. remember that? like lethal weapon. dropping three points before the open. as people did the work instead of shooting off .44 magnums and having fun, the company put its money where its mouth was and boost the dividend 20%. combine those results with the fantastic housing starts number, best in three years, the applications for home loan, off the charts, thank you, ben bernanke, everything rousing related which had been taking a rest came up to the front line and stuffed the bears after real good setup. how about that? more than a five-point swing from bottom to top. you want the best one, though? how about that, honeywell? honey, what a quarter. and industrial, with the meaningful guideup at a time

when industrials have been in a hideous slump when the boom was lowered on truck engines. it was kind of bummish. what stood out? we're going to talk to honeywell's bankable ceo dave cote early in the show. something has become conventional wisdom after the aerospace trade show, may i suggest you have your head examined, one of 50 minute things. these industrial stocks trade together. caterpillar, 3m, honeywell's spike was definitely olympic caliber. i'm giving honeywell a gold medal for its hard work today. someone has to step back, someone has to get off the court. the banks. they've been pretty spectacular late. they were benched when bank of america missed an easy setup. it didn't have the revenue growth of jp morgan and wells fargo. i don't want to throw cold water on the group. it's cheap.

the losing reason jp morgan is now over and once again the leader in the american league, i'm going with wells far go on pace to go the world series. it was time for tech and industrials to shine. how long will this last? let's face it. get a couple terrible bond actions in europe, something you have to bank on after listening to my old pal larry kudlow. you're going to see industrials and tech out of the lineup which is what happens. what you need to know right now is a rotation signals something amazing, tells you the market is stronger than you think, the ceos are more optimistic that policymakers and portfolio managers who have one foot out of the door. chinese hard lending, spanish banks, they have the excuse. too negative, too down. exactly what i told you to never be. rotations work when traders short things they don't understand. they roar when short sellers least expect it.

bottom line, the front line industrials and tech stuff the heck out of the bears today with this vicious rotation. it was powerful enough that i don't think it can end in one day. take heed. money's being made in the groups where it's been lost. and the big boys are just waking up to the fact that they may very well be on the team that got spiked today and they might very well be spiked again tomorrow. let's go to kevin in california. kevin? >> caller: thanks, jim, for taking my call. >> my pleasure. >> caller: my question is regards to hsbc. company exec testified to the senate about money laundering for the mexican drug cartels and the s.e.c. is thoroughly investigating them. my question is, basically, with ethical decisions aside, do you think this may be a buy after the s.e.c. releases its findings? >> oh, boy, i don't know. they did sound like -- they were like the whirlpool for the mexican cartels. like the zetas and spin cycle at

hsbc, taking money to cayman islands. if i want to do international banking, i'm going to go with jp morgan. jamie dimon for all his sins of the previous season is starting to redeem himself. i'll go with the wells fargo. they're not in a laundry business. they're not in the whirlpool spin cycle. they're actually in banking. let's go to charles in florida. >> caller: hi, jim. >> hi, charles. >> caller: we have plant and tree nurseries in the tampa area and can feel the resurgence in the housing market. holdy homes phm has performed very well over the past ten months, going from under 450 to 1,080 today. thanks for sharing your ability to see the future and advise these exceptional investments. can we hold on for the ride? >> yes, i think you can. i've seen a lot of work on pulte home. i think they're going to do well.

this is the far of the cycle that's so powerful for them after we saw the mortgage applications today that makes me say you want to stay with them. go with the highest quality. as the cycle gets longer into its depth, them you stoop down the food chain to pulte and to horton and i think we're there. i want you to do it. stay with them. let's go to alex in new jersey, please. my home state. alex? >> caller: boo-yah, jim, this is alex. i love stocks. i've been watching your show ever since i was 15. i'm 19 now. i love trade and i love it. i love your show. jim, great question for you. vmware. vmw. i'm in the i.t. field. i love it. i love cloud computing. buy, buy, or sell, sell, sell? >> it was a good quarter. i got to tell you, first of all, can i get that monster energy drink you're on right now? i'm flagging. secondly, i think -- look, i was delivering all day. come on, i didn't get any red bull. vmware is good. i prefer the lower beta way to play it. i'm delivering alpha, giving you some beta. emc, my charitable trust

actionownersplus.com goes. fellow jerseyite. rocking. rotate. the industrial and techs stuffed the bears today. i don't think it's done. the big boys on the other side of the trade, let me give you a little advance of what's going to happen with them tomorrow. stay with cramer. coming up, tale of two techs. two sides to the tech trade and tonight cramer's helping you make the right choice. a hardcore reality check for two software servicers. don't miss out on the tools you need to make the tough call. and later, sweeter than honey? honeywell beat the street and raised four-year estimates this morning. pushing this industrial heavyweight stock way up. but has it just begun to ascend? cramer's checking the temperature in his earnings exclusive with the ceo. plus, street justice. from the flash crash to the facebook ipo, some people consider bankers modern day

gangsters, but there's a sheriff on wall street and he's cleaning it up. can the playing field really be leveled for the little guy? all coming up on "mad money." don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com, or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. [ male announcer ] this is rudy. his morning starts with arthritis pain. and two pills. afternoon's overhaul starts with more pain. more pills. triple checking hydraulics. the evening brings more pain. so, back to more pills. almost done, when... hang on. stan's doctor recommended aleve. it can keep pain away all day with fewer pills than tylenol.

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in a market that increasingly seems to be dominated by big impersonal so-called macro forces and institutions, politics, like the slow motion collapse of europe, or the federal reserve, it's important to remember individual companies still have a lot of control over their own destiny. those are ones that do it well, we want to own. in other words, execution matters. whether or not management is doing a good job matters and i think this is something we're going to see over and over now that we're in the thick of earnings season and such a tough time out there. consider tech, hardest hit sectors out there until today's respite.

before this action this morning, the rest of the day actually, you might have thought eventually every technology company aside from apple is in serious trouble. you know what? you'd be wrong. [ buzzer ] in the hostile environment there are winners as well as losers. it comes down to how well the people in charge are executing. last week we had an incredible example of how much this term, execution, matters to tech and to your portfolio. on july 12th last thursday we got two different outlooks from a pair of enterprise technology plays you'd expect to be pretty much joined at the hip. infy, a major provider of information technology outsourcing and consulting resources for enterprise reported a hideous second quarter and the stock was taken to the wood shed losing 11% in a single day. if you took your cue from infy, well let's just say you'd think that cash strapped companies are simply dramatically cutting back their i.t. or information

technology budgets. if you believe this company's alibis, you'd have to conclude any technology firm which lees on the enterprise must be in trouble. i listened and i felt like buying imbev so could cry into my budweiser. the exact same day, s.a.p., gigantic german based provider software announced frisk terrific results that day. it's up 10% since the preannouncement. get me a round of pilsners. they serve the same end market and part of the enterprise. say a company buys software from s.a.p. they'll hire a contestant to set up s.a.p. software, integrate it into their network. they may manage the s.a.p. software once it's up and running. so how the heck do we wind up with a situation where s.a.p. thriving but infy is in big trouble?

you might say because exposure to financial services companies which make about a third of its business but has too much exposure to europe. these are excuses and bad ones at that. bad news, it says its european business declined from 7% from the previous quarter, financial services declined by 1%. communications service declined by 7%. mostly because of weakness in the wireline telephone biz. those may be troubled areas. nobody else sees the rates recline. you can't blame europe. you can't blame the banks. you know who i think the culprit is? you know who it is? infy. the company is doing poorly because of its lousy execution. it's the third executive quarter where it's missed, third in a row. this company is becoming a serial disappointer. [ crying ] >> the house of pain. >> clearly they don't have a hand on how business is doing. to make matters worse infy is no longer going to provide

quarterly guidance because of uncertainty in client spending. annual guidance, something that makes no sense. a lot more visibility to the next quarter than next year. they, themselves, don't know how they're doing. not good. the problem as far as i'm concerned is infy had been pricing outsourcing consulting services at the high end of the spectrum. lately the company has been losing shares to larger plays like accenture. now the guys at infy have to cut prices to stay competitive. that's why the company discounted prices by 3.2% on a constant currency basis for the quarter and why the company's margin was down 180 basis points from the prior quarter. we have companies making basis points like mad. these guys are losing it. yes, i.t. budgets, they are shrinking. yes, europe's a problem. but will managed companies like s.a.p. haven't let that stop them from posting stellar results. last thursday, same day infy was getting crushed, annihilated,

s.a.p. preannounced the up should. up 18% year over year. double digit growth in all geographies. infy blamed financial services business for their weakness, s.a.p. called out the financial end market as a particular source of strength. huh? i have kind of a weather epiphany about this. maybe it's only raining on infy's side of the street or perhaps the problem isn't the weather at all and it's just s.a.p. is executing a heck of a lot better than infy. i think so. some are you thinking what if software in general is holding up better than i.t. resourcing? it's not like every name is posting fabulous results. two weeks ago, july 6th, we got dramatic numbers from informatica. stock employed from 43 to 31, single session, 27% haircut. who did informatica blame? europe, of course. i don't want to dump on informatica too much. we know this is a tough environment for tech.

you know what? when times are tough, separate the winners from the losers, the weak from the proverbial. s.a.p. is executing like a champ, whereas infy and informatica are anything but. s.a.p. reports full quarter results next wednesday. even if the hardest hit sector out there, you know, even in that ones you can still find winners as well as losers. enterprise technology companies, stick with s.a.p. which has proven it can execute when the rest of the space is flailing and stay the heck away from infy and informatica. maybe it's only raining on companies whose names start with "inf." in that case, you should move to a different part of the alphabet like s.a.p.

never has s.a.p. tasted better. never has being a sap been more rewarding. ted in connecticut. ted? >> caller: boo-yah, jim, how are you doing today? >> not bad, chief. how about you? >> caller: i've got a question for you on accenture. >> sure. >> caller: they beat the expectations the last few quarters, but the price action hasn't been all that great. i have a position in it. i'm thinking of adding to. i was wondering what your take is on that. >> i think you should add to it. maybe up tomorrow, because ibm is selling things and ibm is often considered to be an analog to accenture. the accenture quarter was terrific. i'm surprised the stock isn't over 60. it's going to make the move. i want you to be in on it. brad, new york. brad? >> caller: boo-yah, cramer. >> boo-yah. >> caller: my question is whether or not it's time to buy symantec, though never rising 9% in the last four years and the company did recently restructure management to increase their salesperson workforce. considering that potential along

with a company that generates billions in cash flow, internet security problems are not disappearing and the stock is flirting with a 52-week low. is now the time to pull the trigger? >> brad, i have wrestled over this same question, trying figure out what james chanos said today at the delivering alpha conference. is this a value trap like hewlett-packard? i'm beginning to believe it is. if it hasn't been making money in this era of cyber security that's overmatched by the bad guys, i don't know when it will. i don't want to own the stock. you want cyber security? intel bought mcafee. intel is dirt cheap. not all companies are created equal. when it comes to enterprise tech companies, forget the ones that begin with inf but stick with the one that starts and ends with s.a.p. after the break i'll try to make you more money. coming up, sweeter happen honey? honeywell beat the street and beat four-year estimates this morning pushing this industrial

heavyweight stock way up. has it just begun to ascend? cramer is checking the temperature in his earnings exclusive with the ceo. and later, street justice. from the flash crash to the facebook ipo, some people consider bankers modern day gangsters. but there's a sheriff on wall street, and he's cleaning it up. can the playing field really be leveled for the little guy? all coming up on "mad money." sitting on the sidelines because of all the uncertainty in the market? >> thanks for turning my portfolio from mean to green. >> that's what i want to hear. >> with over 25 years of experience in bull and bear markets, let coach cramer show you how to play to win. >> you and your staff are keeping up on the gains. >> "mad money," weeknights on cnbc. ♪

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talk about a teachable moment. this is one of those days where the market beat you over the head with the fact it never, ever pays to get too negative. at the top of the show i talked about how much the most hated sectors out there namely tech and the industrials staged remarkable comeback today largely fueled by the fact people had gotten too darn pessimistic. i want to circle back to a company that led the charge today. i think it's the company that led it.

honeywell. the great american manufacturer from aerospace components, climate control equipment, security area, specialty materials, auto parts, so much else that can provide a boost to your car's gas mileage. the last few months many investors have written off honeywell, not me, never, alone with the rest of the industrials because of worries about the slowing global economy. not to mention last week's horrid preannouncements from cummins, the truck engine maker that's a great technology company honeywell proved the negative nancys wrong. 3 cent earnings beat off $11 basis. strength coming from aerospace which i told you would be better than expected in last friday's game plan as well as the materials and technology biz which sells equipment to oil refiners that can boost refining margin from $2 to $15 a barrel. more on that in a minute. the stock soared $3.54. 6.67%. a huge move. for a large cap company. underestimated company like honeywell.

dave cote, honeywell's ceo. welcome back to "mad money." have a seat. >> always fun, jim. >> i'm calling it the honeywell rally. basically there's too much good happening at your company for me to believe the world's ending. >> well, i'm with you. there's a lot of good happening at honeywell. itoes to the seed planting we've done for a number of years. you've heard me talk about this. you don't do well during a slightly more difficult time just by focusing on it at that time. you have to have done all the stuff over a number of years. it's the seed planting, new products and services, new geographies, process initiatives. that's what positions you to do well. >> let's talk about one you planted for a long time and now really own, aerospace. last week there was a spate of articles that all said the same thing, it's the peak of the cycle. i didn't see the word peak mentioned in your verbiage about the incredible numbers you had for aerospace this quarter.

>> i don't know if i quite buy into the idea that it's a peak. you could argue that it could stay here for a while. you could argue that at some point demand and supply will come to an imbalance. there's orders out there for all this right now. flight hours continue to grow. so i don't know if i quite buy that. >> now, you also have a business that looks like it's coming into the sweet spot. this business that, it's humdrum but turns out to be really red hot right now. the refining business not just for oil but also for natural gas. you have to be a believer natural gas is going to become a surface fuel, certainly used more in this country. the numbers are too great for your refining operation. >> actually, there's huge changes going to be occurring. not just in the u.s. but around the world. if you look at the demand for refined product, it only goes up 2% to 3% a year. what that doesn't take into account, there's a huge amount of churn going on in the middle of that. if you take a look at investments and refineries outside the u.s., for example, it's huge. one of the things that has to happen in the u.s. that still

hasn't happened yet is investment in improving the refining capacity that's here. natural gas, shale gas is going to be an important dynamic for the u.s. economy for a long time if we do this right. you think about low-cost gas, that doesn't help you just in your fuel bills. you start thinking about, gee, should i be driving cars differently, are there other industries we should be in? i think it's one of those things that could really give a huge economic boost to the country. >> now, is this the type of thing -- you have become because of the -- you're an elder statesman now. we're roughly the same age. you speak a lot about what our country has to do. >> yeah. >> you typically speak it in terms of the fiscal cliff, the irresponsibility on the part of congress, the longer term. but do you see our country needing something like a boost in washington for our natural gas to make this happen? or will the market take care of itself? >> well, for me it's -- when it comes to natural gas, the best thing they can do is just not overregulate it.

right, we should make sure on shale gas the drilling is done correctly and we come up with a standard that makes sense. we should do it quickly, not drag this thing on for three years. we should do that. i think that makes sense. at the end of the day, if you go around the world, thekpetive competitiveness of people around the world, global economy, 4 billion now. we still act like we did, whether it's debt, energy, infrastructure, math and science, t.o.r.t. reform, free trade. we need to start moving. that's why i keep talking about the debt saying we have to get off this thing. natural gas is one of these things that can help give us an economic boost. >> there's a great moment in your conference call. it made me think about what you just said about america. talking about china. china is so important for you. you had double-digit growth in china. it was really spectacular. >> thanks. >> you staid there was an uptick in short cycle stuff. you also said, i'm one of those guys who believe china is going to continue to make the right decisions.

the communists have a longer term capitalist view than the united states? >> well, there's this -- it's funny, there's this old joke that goes, okay, president of the united states comes to a traffic light, he looks left, looks right, puts the right blinker on, doesn't think about it, takes a right. putin goes to the traffic light, looks left, looks left, stares there a long time, goes right. hu jintao is driving, goes to the traffic light. ping is in the back seat. the ghost of ping. hu jintao says, what should i do? he says, put your blinker on left, turn right. >> that's exactly what they are, right? they're the greatest right wing leftists we have ever seen. >> so i think that commitment to capitalism -- >> right. >> -- that focus on how do you improve the prosperity of your people through a robust public sector. they need to evolve but it's not going to disappear. >> a lot of people at the delivery alpha conference writing off europe. i know you can't afford to write off europe.

you also didn't. there are auto problems made up by this incredible amount we're building here. you did not speak as if it is going to be something that is catastrophic in europe. >> well, i think there's three possible outcomes here. of course, government makes a big difference. and that's, government is what end up deciding whether they're going to enable or destroy business, and if you take a look at europe, i think the high probability outcome is they do just enough to muddle through. and as a result of that, i really believe you can end up with a five-year 0% type growth economy in europe. >> oh, man. >> i really do. now, they could make it worse. if they just don't even do that. they could create a global recession. if they actually did what was right, it would make it a lot better. we're going to plan assuming 0% growth for the next four, five years. it's the only prudent way to plan for it. they're not showing the political will to do it. >> you're going to take the hand you've been dealt. >> yeah, yeah, yeah.

it's not like the place disappears. 0% growth isn't great. it didn't disappear. as long as you're driving the new products and services, feet on the street, you can still do well. >> well, that's what you guys have been doing so far. congratulations on a great -- congratulations. it was terrific. in one quarter. dave cote of honeywell international. i've told you over and over again to stick with it. don't rent it, don't trade it. just own it. stay with cramer. coming up, the clock is ticking. call cramer at 1-800-743-cnbc. to find out how to fire away at cramer on the lightning round. can he withstand your thunderous onslaught of stocks? and later, how do your stocks stack up in a mystified market? cramer makes sure your portfolio makes the grade on am i diversified? all coming up on "mad money." when a carpet is clean and fresh,

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it is time. it's time for the lightning round. buy, buy, buy. sell, sell, sell. and then the lightning round is over. are you ready, skee-daddy? time for the lightning round. let's start with albert in florida. albert? >> caller: hey, jim. boo-boo-boo-yah from tampa bay. >> southern boo-yah back to you. what's up?

>> caller: i want to thank you for giving me the courage to take over my own accounts and turn them from the red into the black. >> yes. >> caller: thank you. my stock today, i added a spec into my medical plays six months ago. alexandria. alxn. >> oh, alexia. this with our home run derby winner last year. the home run derby winner this year was arna. i tried to get you to register. you have another competitor there. more importantly, melenox is up 50% after the close. that was my pick to be the home run derby. up 50% on the quarter. stick with the last money. john in arkansas? >> caller: hey, jimmy, a big boo-yah from beautiful arkansas. >> it is beautiful. >> caller: it's hot down here, brother. my stock is going to be sonic, sonc. you know it's had a nice little run up here. we're seeing them all over the midwest here. what do you think? >> the analysts have gotten so negative.

it's really repugnant to me. they say it's moved too much. they ain't seen nothing yet. that stock is going higher. >> buy, buy, buy. >> i want to go to katherine in florida. >> caller: hi, mr. cramer, how are you? >> all right, sunshine. how are you? i have a question. >> caller: i have a question, sir. i watch you faithfully, by the way. >> thank you. >> caller: i would appreciate just -- i want to bug you a minute on lululemon. >> everybody is saying everybody's gunning for lululemon like for underarmor. that complex is starting to come back. i want to own lululemon. i want to go right now to ryan in texas. ryan? >> caller: boo-yah, jim. i'm from the lone star state. i'll be a freshman next year in high school. >> love it. >> caller: our stock is first energy. >> you know what, when first energy stock was yielding about 6%, i had the company on, i had to coax them to come on. listen, you guys have to come on because you're the buy of the century. that is one terrific utility. that merger was fantastic. >> buy, buy, buy.

>> at this point i like duke more than i like first energy. may i go to terri, wow, georgia. >> caller: hey, boo-yah. >> boo-yah, terri. >> caller: your thoughts on carnival cruise line. >> it's okay. i lack a catalyst, carnival. you know what, you know who has a cruise line that would be humming? disney. i want you to go with disney, not carnival. i need to speak to vinny in new york. vinny? >> caller: a big boo-yah from new york, forget about it. >> i like you, what's up? >> caller: i have a quick question for you about amarin. slowly creeping up to the $17, $18 mark, it's going backwards every day. what's going on? >> look, this is another one of these biotechs i tell you i am willing to take the risk. now, remember, when i say take the risk that means you can

lose a lot of money but you can make a lot of money. i took a lot of heat @jimcramer on twitter saying, listen, ring the register. if we get good news, you're going to ring the register. let's go to marvin in new york. marvin? >> caller: boo-yah, jim, from a very wet manhattan. >> yeah it is pretty awful out. what's going on? >> caller: well, first i want to say thanks to jim for explaining the markets, the politics, the economics in these difficult times. you've helped me to develop my own philosophy and strategy. >> that's what i want. i want to help empower people. i'm doing it right. you say so. what's going on? >> caller: i'm looking at allot communications. allot. >> it's good. it had quite a ride. we had to take a little off the table. the street.com where i'm on the board of directors and i'm a big writer. i think the stock is a little played out personally. i don't want to chase it right here. let's go to chris in new york. chris?

>> caller: boo-boo-boo-yah. >> okay. >> caller: thanks for taking care of us, jim. >> i'm trying. i'm trying. it's an uphill battle. >> caller: entertaining informative show. i'm calling about altera. should i get rid of it? >> altera is in its usual battle. you can't get a melenox technology right. i think we're in good shape. and that, ladies and gentlemen, is the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade. how much coffee are you fellows going to need today? three...four cups? [dumbfounded] well, we... doesn't last long does it? listen. 5-hour energy lasts a whole lot of hours. so you can get a lot done without refills. it's packed with b-vitamins and nutrients to make it last. so don't just stand there holding your lattes, boys.

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today's rally may have some of you feeling slightly more optimistic an the future but i bet as many of you are frustrated and confused why the market continues to jump around like a pogo stick. fear is warranted but near will make you money. there are plenty of opportunities out there. instead of falling off the stick, start doing homework. look for stocks that will make the ups and downs not so bumpy. stocks catalyzing from secular trend or security. diversification is key especially in this market. if i taught one thing in this show it's diversification. you call me, tweet me, give me your top five holdings. @jimcramer on twitter. last week they were blasting me, it's predictable. if diversification is predictable, i'm winning this war. i'm starting with a tweet first that says boo-yah, i have l.a.

west, #amidiversified? tech, michael, they're doing okay. facebook, it is tech. social media. at&t, tellco, apple. look at this. we have two. we have a problem. i'm regarding apple and facebook as two techs. we're going to exnay the facebook and buy bristol-myers. so we get a little yield. okay. let's go to charlie in alaska. charlie? >> caller: hey, jim, i have a 61 degree north latitude land of the midnight sun ba-ba-ba-boo-yah going out to the best personality in media, i'm doing great. >> boo-yah.

>> caller: here's my portfolio, vz, altria, eli lilly, lly, consolidated edison, ed, and pep. over my pride since the cyclicals have all gotten fried. should i nest with the secular success or am i diversified? >> the poet laureate of the land of the rising sun. who must never quit his day job. okay. nice yielding tobacco company. pepsi, we're going to say tobacco is different from drinks. pepsi, let's hope they can match coke, coke's quarter was beautiful. con edison. we have an electric utility, a beverage company, a drug company. alaska rocks. that is the best diversification portfolio we've had in ages. he's a rhyming magician.

let's go to scott in texas. scott? >> caller: jim, boo-yah, howdy from texas. >> howdy. what's up? >> caller: the humidity. jim -- >> not the heat? >> caller: i'd like to know if i'm well diversified given the present economic environment with the best. if not, what should i replace and what would you replace it with? here are you top five? are you ready? >> oh, yeah, born ready. >> caller: epd, s.o., bmy -- >> bristol-myers. >> caller: egs. >> b&g foods. all right. let me go to work. b&g, good yield, terrific yield. that's mr. winner, delivered consistently. at&t, another high yielding stock, telco, a southern company, they had a good dividend. bristol-myers one of the best yielding companies.

electric utility, phone company, partnership, and a food. wow. hey, i take it back what i said about alaska. that's a darn good portfolio, too. no offense meant to the land of the rising sun. "mad money's" back after the break. we know a place where tossing and turning have given way to sleeping. where sleepless nights yield to restful sleep. and lunesta can help you get there, like it has for so many people before. when taking lunesta, don't drive or operate machinery until you feel fully awake. walking, eating, driving, or engaging in other activities while asleep, without remembering it the next day, have been reported. abnormal behaviors may include aggressiveness, agitation, hallucinations or confusion. in depressed patients, worsening of depression, including risk of suicide, may occur. alcohol may increase these risks. allergic reactions, such as tongue or throat swelling, occur rarely and may be fatal.

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cheating is cheating. and lying is lying. and whether it's masked behind, you know, 17 pages of powerpoint presentations about why this particular tax shelter, this particular tax shelter is okay, at the end of the day i think our folks and our investigators and the fbi and s.e.c. are smart enough to see through that.

>> now, that's the kind of guy you want in your corner. i got to wear a wire with preet bharara today at cnbc's delivering alpha conference. all i can tell you is i'm plenty glad it was just a microphone and not something that can be used to incriminate anybody. i say that because preet bharara, the u.s. attorney for the southern district of new york, is most feared prosecutor of our time. he has prosecud 71 insider trading cases and won 65 of them. the other six, still pending. now, there's a record. he's done it by using wiretaps and building complex cases with informants who are eager to help him in order to spend less time in jail for their sins. preet's fighting in person is as clever in the courtroom. something obvious today during my interview at cnbc's delivering alpha conference. i'm glad i was interviewing him and not vice versa. he's deadly serious about leveling the playing field and shocked that miscreants think they can get away with the insider crimes they commit. what i found mr. provide is mr. bharara doesn't understand why

money managers don't take his office into account as a risk factor. after all, a call from preet or a grenade rolled into your office by him, his preferred analogy, can wipe out your franchise immediately. calculous he says is all wrong. he's out to change it. i've always had a desire to be a prosecutor, especially a prosecutor in new york's southern district. i wrote on my harvard law application it was my goal to one day get the job preet had. when i applied to his office in my second year, when rudy giuliani was running it, i didn't have the grades. a lesson here, so many businesspeople underestimate the intellectual firepower of that office. they believe it's government work so to speak. and if these people were any good, really smart, they'd be in private equity rather than hedge fund somewhere. i have news for you. mr. bharara, he's smarter and more sophisticated than just about anyone. why is that important? if you're a fund manager who

thinks he can get away with insider trading today because he masked it or because you think no one's listening, be prepared, be prepared to hear the five most frightening words in the financial lexicon. preet bharara on line two. look, discouraging time on stocks. someone has an edge, someone knows more than you do, that the game is rigged. i can't tell you you're all wrong. i can tell you if you ask me, does anyone have your back? i have an answer, it's preet bharara. he's done more than just about anyone else in this era to make sure the playing field you're on has some semblance of fairness despite the dark forces that try so hard to hijack your money on a daily basis from fraud, corruption and insider trading. the market may have way too much in common with the wild west right now, but at least we have ourselves a real subpoena toting shark, and as he told us today, he has enough of them to do the job. stick with cramer. another cup of coffee?

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just when everybody hates tech you have melanox, ibm, qualcomm, sky works solutions. that group be smoking. i like to say there's always a bull market somewhere, promise to try to find it for you right here on "mad money." i'm jim cramer. see you tomorrow. this morning on "early today," breaking his silence. in his first tv interview, george zimmerman tells his story about the night he killed trayvon martin. wild ride. a chinese taxi driver's attempt to detain a drunk driver backfires. and close encounter. a diver in florida has a terrifying face-to-face th a a diver in florida has a terrifying face-to-face th a great white shark. captions paid for by nbc-universal television hello and good morning. welcome to our