you have to think about the xlk, the technology select etf. it is an interesting etf when you look at it. apple is the largest hold. my view on apple if you watch, i don't think the stock is going anywhere. it is going down to the lower right and you have a bunch of names. there are growth stocks there. now you have no growth tech. microsoft, intel, cisco. i think they are deemed to be defensive because of the yield. but they are not particularly expensive with good sheets. one last bucket and this is something people don't think about. 10% is u.s. telco. verizon, at&t. >> i saw that. >> another 5 to 6% is mastercard and visa. this is cyclical, defensive, yield. it could be vulnerable. the facebook and google names stick out. obviously facebook has tremendous gains. google is near the all-time highs. if you have hiccups between now and tend of the year the xlk had a nice run. it broke hard today. i don't press shorts on a day like today with a move like that. the trade to talk about quickly is targeting the line. that's the breakout level at 4

either way the stock goes. >> i think in all these trades, xlk, you look for a bit of a bounce there. >> looks like our time has expired. see you back here next friday. don't go anywhere. "mad money with jim cramer" starts right now. >>> my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now. hey, i'm cramer. other people want to make friends, i'm just trying to msae you some money. so call me at 1-800-743-cnbc or tweet me @jimcramer. you, you need to be prepared for the kind of decline that comes from a rate

either way the stock goes. >> i think in all these trades, xlk, you look for a bit of a bounce there. >> looks like our time has expired. see you back here next friday. don't go anywhere. "mad money with jim cramer" starts right now. >> announcer: the following is a paid advertisement for tai cheng, brought to you by beachbody. >> wow, joy, look at these people! they love you! [ cheers and applause ] thank you! it's regis, joy, and i've got big news for you. if aches, pains, and poor balance are slowing you down, keep watching this show because we're gonna tell you about an incredible new program that's gonna fix everything. [ cheers and applause ] yeah! >> announcer: the facts are frightening. 1 out of 3 people over 65 fall each year, resulting in expensive hospital stays, loss of independence, or worse. >> i broke my hip. "oh, my god. what in the world g

i think if you have any hiccups between now and the end of the year, i think this xlk goes lower. >>rong footed here. so i have this one on a very tight leash. if it makes a new high from last week, i'm going to cut the position, but in long premium trades i use a 50% premium stop and that's what i think you should do. i got the apple thing totally wrong and that's making me rethink this. >> lets say the fed doesn't move. will technology and growth catch a little bit? if we are to believe dividend stocks still have buyers because people are searching for that incremental growth, is tech going to be the answer? >> when economic data rolls, the best performing typically is either growth or yield because people are like, all right, i don't want to play beta anymore. i think you stay long tech as an overweight and you also do it with telco and utilities. >> you don't have any other choice. >> you don't have any other choice. >> up next, final call from the options pits. hey gary, what are you doing? oh hey john, i'm connecting our brains so we can share our amazing trading knowledge. tha

last week dan made a call to bet against the tech sector using the xlk etf, which was the big winners week, up nearly 3%. take a listen. >> so you have this bucket of stuff that it's cyclical, it's defensive, it's yield, and i think it could be vulnerable. there's two names, the facebook and google stick out, that obviously facebook has tremendous gains in year. google is very near it's -- its al all-time highs. i think if you have any hiccups between now and the end of the year, i think this xlk goes lower. >> wrong footed here. so i have this one on a very tight leash. if it makes a new high from last week, i'm going to cut the position, but in long premium trades i use a 50% premium stop and that's what i think you should do. i got the apple thing totally wrong and that's making me rethink this. >> lets say the fed doesn't move interest rates. are we still going to be in the environment where technology and growth catch a little bit? if we are to believe dividend stocks still have buyers because people are searching for that incremental growth, is tech going to be the answer? >> w

apple is so big that it is 14% of the waiting of the xlk.if apple drops even two or 3%, the xlk will have not the same amount, but significant drop. so you see that's down about maybe a half a percent from where it was before. even the overall s&p down 3 or 4 points since that report, since the rumors of those reports came out. back to you. >> bob, i'm glad you mentioned that you had actually phoned gfk. the reason we bring it to your attention is because the stock is clearly moving on us. people have made trades on what is out there and we bring it to people's attention because it did move the stock and very clearly and, bob, it is interesting because after the iphone 7 was released, we saw apple at the start of a very powerful rally and that also took up a lot of the supply chain. we look at some of the suppliers now that gained most, sky rock solution, up around 15% on the heels of that iphone release. that is up sharply today. the impact on the semiconductor etf is very clear. >> you have a fairly quiet day after a couple of days where t

. >> i think in all these trades, xlk, you look for a bit of a bounce there. >> looks like our time has expired. see you back here next friday. don't go anywhere. "mad money with jim cramer" starts right now. >>> my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now. hey, i'm cramer. other people want to make friends, i'm just trying to msae you some money. so call me at 1-800-743-cnbc or tweet me @jimcramer. you, you need to be prepared for the kind of decline that comes from a rate hike. something that many in the stock market clearly aren't ready for. and that was what today's decline was all about, the dow tumbling 394 points. nasdaq tumbling 2.54%. the rate hike's coming. perhaps as soon as the feds' meeting later this month. and i think you need to be ready for cash when it does, because i don't think this selloff's over. you need to understand the risk world here. it is true. it could hold steady. you could miss 2%, 3%, 4% rally. but consider

six days since it started running, you have seen participation throughout the nasdaq, throughout the xlkames. ewe got 61 nasdaq 1 00 companies with a gain of 1% or more, and only 21 with a loss of 1 %. it's a very broad growth stock rally, and i think what's really happening is in the first half of the year we overpaid for the low vol stocks. for the high dividend payers. in the second half of the year, literally starting the day after brexit that all changed. now you are seeing growth stocks with secular stories unrelated to interest rates or slowing global growth take the lead. these are the biggest winners so far in the second half. i wouldn't be surprised to see that continue. we've talked about names like adobe, invidia, ask then you look at a company like an apple. it's kind of neither here nor there. it's not really growing. it's returning the cash to shareholders. people have been skeptical on it. there have been multiple ways to win in tech, and perhaps that continues, but within reason. to kevin's point, you don't want to look for companies that are burning cash at a tremendous

the xlk and high beta etf, two interesting ideas.uch. >>> for more trading nation, more ideas and segments like this, go to trading nation.cnbc.com. >>> deutsche bank stock bouncing back. up 15%. the markets overall responding. they're higher as well. we're wrapping up the third quarter with what looks to be a pretty good one. more market coverage on "power lunch" right after this. >>> and now, the latest from trading nation.cnbc.com and a word from our sponsor. >> a strong dollar is often viewed as a net negative to the economy. that's not always true. while export driven companies will often struggle under a strong dollar because their products are less competitively priced abroad, consumers will benefit because imported products will be cheaper. and because the u.s. imports more than it exports, from an economic perspective, a strong dollar is an overall positive. announcer: when they test you, stand firm and move only when you hear the seatbelt click that says they're buckled in for the drive. never give up till they buckle up. >

the xlk tech etf is up 11% this year and big names like amazon, google, microsoft all up significantlythe past 12 months. so which are the tech stocks investors should be exploring beyond apple? let's bring in paul meeks and denny fish, portfolio manager of the janus global tech fund. paul, start with you, you like a very common theme out there, cloud. how much are you willing to pay for these cloud names though? >> that's an excellent question. right now i would only buy them on dips. and i would buy them in this order, amazon followed by google followed by microsoft. but again, only on dips. i write articles for cnbc pro, and even though i'm best known as a tech investor, last week i published an article on cnbc pro advocating the purchase of signature bank, if that tells you anything. >> hold on, guys, i want to get more about that but we want to go to kayla tausche in san francisco. more on -- >> reporter: well, melissa, the conversation has moved from the strength of the cameras that are now part of the 7 and 7 plus family to the speakers and the headphones, which of course have b