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tv   Mad Money  NBC  January 6, 2016 3:00am-4:00am PST

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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 save you money. my job isn't just to entertain but to educate and to teach you. call me at 1-800-743-cnbc. or of course tweet me @jimcramer. have you noticed how quickly everyone wrote off 2016 already? after about nine negative hours of trading. >> the house of pain. >> that was easy. at one point today when the indices broke down, i heard a collective sigh. and i was pretty shocked that i didn't get hit by a white flag of surrender after i walked down wall street after the show. but the facts refused to align with negative story. i think today was one of those
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as we saw a terrific rebound in the averages, after a second bout of hideous selling this morning. the dow closing up two points. the nasdaq declining 2.4%. first, let's deal with the negativity. it's coming from four different directions. sell sell sell sell. sell sell sell sell. worry number one, china's falling apart. no matter that it's been falling apart for ages or the chinese stock market is not creating wealth, many can't handle the stress of waiting for the other chinese shoe to drop after monday's break down. suffice it to say there's big trouble in big china. negative number two, theed has gone from friend to foe. there's a narrative out there right now, now that we have started to raise rates there's
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policy of data dependence. this thesis says that we're on autopilot mode like the pre-bernanke fed. we'll get a shortfall in earnings. third fear we're in the high peaks region of the economic cycle. everywhere i go i hear that all sorts of cycles -- we have the peak in cell phones which caused apple to drop like a stone and taking the semiconductor stocks down with it. a new story about a possible 30% decline in apple component orders sure didn't help, nor did stories making the rounds that were peaking in autos. one of the chief engines of u.s. growth. i think the numbers we saw this morning were good. well, good, they never less buttressed the case of the bears which would make lower interest rate incentives harder to come
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given they sold 17 million vehicles, it is reasonable to think that things can't get better. we have peak housing stories floating around. way too high prices because of a scarcity of inventory. peak cell phones, peak autos, peaks housing that's apox on peak in three components. finally, the oil glut. yeah. remember we're in crazy town. crazy town where we care more about an energy decline, down again today which is negative for about half a dozen states. then we care about the potential increase in consumer spending than the cheaper gasoline can cost. low gasoline is good. but the market doesn't think so. what happened today, the up opening, a total pickoff, the obvious decline, then shockingly to some the rise in stocks makes us wonder whether the it has to go down in 2016 narrative has already gotten too pat.
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we have a dramatic sell-off yesterday that was largely related to china and the 7% decline/shut down. when china didn't fall apart last night that was the key to the potential rally. however, one pattern works almost every time. you sell any market that opens higher after a big down day. i loved when stocks looked like they were going to open down in early morning trading. but when the s&p 500 futures caught up big before the opening i knew we were goners. it's just too juicy an opportunity for those smart enough to buy to the depths of yesterday's trading to ring the register off that pickoff jubilant open. when those sellers materialized the market fell apart again and we got an amazing resurgence of negativity. we heard the usual refrains as first day and second day goes, so goes the whole year. i even intraday that we were suffering through the worst new year beginning in ages. i opened up a journal of the
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see what lay ahead of us. what ended up happening? crude, the oil stocks themselves rallied. hey first time i can recall in asia that they bucked the price maybe there's too much oil negativity? second, it got frigid cold out. al roker top of the news flash cold. i thought the decline in the retail stocks in the face of the lower oil prices have been one of the biggest dampers on the stock market. it's not encouraging. when you see walmart down 30% and not rallying disconcerting. when you worry again about the health of j.c. penney that's daunting. i have said that weather is the crucial variable in sales. not consumer spending but weather. these are the -- the cold weather clothing doesn't sell when it's 60 degrees out, but when it's 16 degrees stuff flies off the shelves. the cold weather ignited this
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one look at walmart and target, both up a buck and change tells you what you need to know. when we get a whiff of a recession, we have got to get used to a surge in household names. i love a tape that marches to the tunes of the mcdonald's. and i told you that would be a power house again. kimberly-clark, two best run consumer packaging companies and pepsico will be a winner again. finally, everyone pounces on eli lilly for cutting its guidance and the stock gets obliterated from the get go and then they review the mega blockbuster alzheimer's drug and its rises like lazarus. i like a market where the facts go net the way of the negative story. opportunity knocks when the market got knocked down. with a victory for the bulls that was snatched from the jaws
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grdily triumphant this very morning. james in connecticut. james? >> caller: happy new year. >> same. >> caller: i'm thinking of buying some match group mtch is the symbol for my daughter's birthday. i wondered if you think it's a good buy. >> i think it's a great buy. i cannot believe the retention. i can't believe how the success -- it just seems too cheap and i'm with you. i think it's a nice present. how about kathleen in new york. kathleen? >> caller: happy new year, great prince. i took a recent large position just under $16 in pandora. should i add to my position? there was a recent downgrade. >> oh, i would be a clown prce if i said buy this one. i have to tell you that other than a takeover basis i can't remember this stock. i do think that apple should buy them, but i thought apple should buy harmon, particularly since they added the security blanket to the brains of the car.
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being a cell phone company. give me a little mobility when it comes to cars. today we saw the facts get in the way of the negative story and that's the kind of market i like. onad tonight, the rock stars of the s&p crushed it last year, but which ones can sing the same tune in 2016? and the losers -- i'm eyeing the worst s&p performers to see if they could be worth owning. and time to toast the beverage stocks in the new year. i'm poring over the charts. stick with cramer. >> announcer: 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.
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head to madmoney.cnbc.com. at the beginning of every glorious year, i like to remind people that this show is showing you how the professionals pick stocks and giving you the tools that they use to isolate the best opportunities and ideas for yourself. now, that doesn't mean that you should always do what the pros do. it doesn't mean that you'll make money in a given year. the entire market goes down as most people think it will, you hope to contain your losses. nevertheless f i can make you a better investor then i have done
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yours. now, 2015 was a totally insane year because only a handful of stocks were responsible for whatever gains that the market registered. most stocks went down. but if you want to know which stocks make the not so great year, somewhat more palatable, look no further than the top performers of the s&p 500. amazon is up, activision, with 92% gain and nvidia rallied 63%. and cablevision climbed. here on "mad money" we don't care where a stock comes from. we only care about where it's going. you can't make any money from where it happened. which is why tonight i want to give you my analysis of where the s&p's winners will be headed in 2016. before we get started though, i need to make two important points. first is that all of the winners
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meaning that you most likely either used the products and probably love them or at the very least you knew of them. possible exception is cablevision. many of the real winners last year was those who got takeover bids. that's how cablevision got so high. i think we should therefore remove that cable company stock from our purview and add in hormel, the food company which only finished 0.4% behind the regional cable player and really, i mean, just for a moment, the cablevision was gettable too. if you simply watched the morning show "squawk on the street" where david faber made it clear that 2015 will be the year of cable consolidation, cablevision fit smack in the middle of that thesis. not often that watching a news program can make you money. but david faber is not your typical reporter. he's a rare breed who's owned the merger and acquisitions beat for several decades now. i'm proud to call him my partner.
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performers repeat in 2016? let's start with netflix and amazonl the "a" and the "n" in f.a.n.g. which includes facebook. formerly google which ruined my acronym with the coolio name change. first, net flex and amazon don't play the same rules as any other company. netflix didn't rally last year because of the fabulous earnings. amazon didn't advance because it got recognized for the glory. no, they're momentum. meaning they represents shifts in the fast growing revenues and there's a whole cohort of money managers who believe if you buy those with hyper sales growth not earnings you'll end up with winners. most of the series professionals that come on our air haven't
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and that tries to isolate the value. the analysts search for stocks that are cheap versus the fundamentals. these two stocks are anything but cheap. so why have i championed netflix and amazon for so long? simple. i have always felt that in any given market, there are stocks that can be embraced for the enormous potential if everything goes right at the companies because sometimes with the help of fantastic management and amazing opportunity they do if you wait long enough and hold them long enough you can be surprised that's what happened to these two giants in 2015. yep, last year we discovered that amazon could be profitable simply if it wanted to be. we saw that because the company actually broke out roughly how much it was making not losing but making with the gigantic web services division. we got a different revelation with netflix. it was a hit machine with content beloved worldwide.
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ago. did you fall under "making the murderer" hole? my staff can't a stop talking about it. my sister can't either. i caught up with jessica jones. i guess i have to find some time to binge, find out what all the talk is about in the office. at least until season 2 of narcos premieres. jessica jones, man. smoke show. how can we not pay for more -- more for something it turns out to be as popular internationally as it was domestically, why should that stock be valued the same when it's a hit overseas, how can we not pay more for something that's not as popular specially as domestically? netflix and amazon became the poster children for something that there isn't enough of -- pure oxygenated growth. most companies are starved to produce it. these two have it in spades and that's the chief reason why i believe that after some
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the year, both netflix and amazon could see their stocks rally some more. oh, not as much as last year. those moves stole a lot of the thunder of 2015, but the scarcity value is there. and these two names like that uber growth manager thirst. next up, activision blizzard. the amazing ceo, doesn't get enough credit on this show. my bad. activision launched call of duty, black ops 3. what can i say, i was dazzled by this and i'm not a gamer. that's not enough for kotick though. he shelled out $5.9 billion and bought the huge digital platform with candy crush. that's what they're play on the subway. it's deal that's additive to earnings that's before all the cost promotion you can do. then yesterday, activision bought major league gaming. is this guy never satisfied? it will monetize fabulously. can it repeat the 92% gain, but the company is over $27 billion
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me. given all that intellectual momentum and i knew him when he was 20. the company has turned itself from the fast pc chipmaker into the juggernaut at the internet of things with the best graphic chips for gaming, as well as chips geared to the cloud and to cars. i have to admit i misjudged the company. like so many others and was shocked when the head of audi america said his company swears by nvidia chips. like an audi, like xbox 1? that should have been the signal to pound the tables. it was clear this is no longer just a fast graphics chip play. i think there's still more positive news ahead, because nvidia has only beaten the wall street estimates for two quarters.
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quarters ahead. how could intel not have acquired the guys? consumer electronics nvidia, one and the same. finally, hormel. it's a fuddy-duddy company with a great dividend company into a juggernaut. they have skippy's peanut butter and muscle milk. they're the polar opposite of spam. the company keeps applegate under wraps. if you put the hormel name on the search bar, nothing comes up. spam and applegate, the same roof. all the better to preserve the $70 million acquisition. hormel's richly valued at the earnings and all keep reinventing themselves. keep beating the key metrics. to me, that means the bottom line here is that you can buy small amounts of the stocks but only on weakness. only if you recognize that with the exception of the ridiculously cheap activision
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nvidia, you're coming to the winner's circle of the s&p 500 steeplechase. much more ahead. i'm going to focus on the biggest losers of the s&p 2015. then it's time to protect your portfolio. find out which of the liquids can put up a solid defense in 2015. don't forgot who makes the rules on china's stock market. i'll tell you how it's affecting the average at home, so why don't you stick with cramer. (cell phone rings) where are you? well the squirrels are back in the attic. mom? your dad won't call an exterminator... can i call you back, mom? he says it personal this time... if you're a mom, you call at the worst time. it's what you do. if you want to save fifteen percent or more on car insurance, you switch to geico. it's what you do.
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now that i've gone over the best performers in the s&p 500 from 2015, it's time to do some serious dumpster diving through the pool of the worst performers. because you never know when you'll stumble on a hidden gem among the losers. in the past we have seen the airline stock goes from zeros to heroes. and who can forget when micron morphed from the biggest loser to one of the biggest winners in a few years. it's the stuff dreams are made of. but sadly i don't see a lot of dreams among the dirt pile of underperforming stocks and in fact i see pretty much the opposite. that said, you never know. i'm approaching the new year with the open mind. because no one knew about micron or the airlines before the big come backs or no one who is
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now, i have to be a little creative in going over the stocks at the bottom of the heap because too many are all the same piece. fossil fuel laggers where there's not much hope unless we get major unfortunate geopolitical events. think of it, if the saudis have severed diplomatic relations with iran shouldn't we presume we have an oil supply problem? the sad fact is that oil couldn't hold a $1 gain after that news. and after the price had fallen by two-thirds at -- in a little more than a year's time. that's extraordinary. in normal times this would have produced a jump of at least 10%. natural gas is just as bad. although it managed to struggle above $2.20 recently, that's a gigantic move from where it was from where no natural gas company can make a profit. the oil and gas complex has gone down the rabbit hole and that's what makes sifting through the
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let's start with chesapeake energy which had the misfortune of watching the stock decline 77%. they have made many smart moves in trying to stave off a negative outcome for shareholders. chesapeake had an incredibly well timed sale for $5.3 billion. back in october of 2014. brilliant. at the time chesapeake stocks stood at 20 bucks. it seemed like the situation could only improve for this heavily debt laden company that had been outspending by billions and billions for years. now with nothing really to show for it, if you had the misfortune of being a shareholder. but chesapeake can't stay ahead of the debt posse and the stock has fallen down to $5. because they won't pay the myriad debt orange obligations,
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without the price of crude going up dramatically it's hard to see why you want to own the stock. if you want to make a bet on oil and gas, there are plenty of more solid, better ways to do it. including companies that let you sleep at night without having to worry about whether or not they can pay their debts. next up, console energy which was in a real horse race with chesapeake for the most god forsaken equity in the s&p 500 and it was beaten by a nose. can -- 76.9% finish. you know what? i looked this over. wall street still seems to love console, even after the first class beatdown. ten of the 20 analysts give it a buy rating. are they living in bizarre world? do you want to own the stock of the seventh largest coal producer in the company and they need much higher gas prices to make money?
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david icon called it a favorite. oh, far cry from the $8 level where it currently resides. again, you might want consol as a rising coal and natural gas prices, you might look it for january given the end of tax loss selling and they have some assets that can be monetized. i think any company levered to coal or natural gas is not something i want you to plunk down your hard earned money on. their worst performer is none other than southwestern energy, the sucker that bought the chesapeake properties. this is one of the best run natural gas companies in america not that long ago when its stock was at 32 and shelled out that $5.3 billion to get the chesapeake assets. talk about buyer's remorse. the darn stock at 7 bucks. when we look at stupid acquisitions this has to be one of the dumbest. because it not only amounted to a double down on natural gas at
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was much higher it also wrecked one of the most pristine balance sheets. i don't know what to say about northwestern. it should be a takeover target because of the fabulous assets and low debt. now the assets seems suspect in the balance sheet wrecked. again, you're going to get a bounce from the end of tax loss selling and saying good-bye. i can't believe they'd have been that dumb or unlucky. oh, gee, out of the frying pan into the fire with freeport mcmoran which nosedived 71%. there are few commodities that are more toxic than oil and gas. free port gives you the whole shooting match. not wanting to be beholden any longer to the fading fortunes of china, the chief export market for copper, freeport shelled out $20 billion to get some oil exposure. buying planes exploration, and
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in oil and gas. the stocks went straight down and when carl icahn took an $88 million share in the stake, freeport leapt from seven to ten on the announcement. now today it's back to $6. 6 and change. they have since curbed capital expenditures and the company still barely dented the long term debt picture of almost $20 billion. freeport may have the worst balance sheet of any company in the s&p 500 including the other losers i just mentioned. it's positively pornographic. i mean that in a bad way. paraphrase the great supreme court justice potter stewart i know a pornographic balance sheet when i see one. finally, there's fossil. it figures that the unfortunately named fossil would trade like a fossil fuel stock. even though it makes watches. maybe the market has a sense of
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wholesale stock market rebellion against apparel and worries about the apple watch, they're trying to get smarter with the misfit brand. that has and worked so hard. and not that fitbit is doing any better. then the ultimate indignity. in a fit of active management for a so-called passive index, the guys who run the s&p 500 kicked the stock of fossil out of the darn basket. i think the estimates are too high, too early to buy fossil. it's not too late to sell. the bottom line, it's just a nightmare out there. a fossil and fossil fuel nightmare. while i search for one of the losers most likely to bounce, i keep coming back to something that is my mantra for three decade, buy best of breed. these stocks are the corollary, and that's exactly what you should do with all five of them if they give you any bounce. or maybe even if they don't.
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>> caller: hey, jim. macy's, 5% run-up on big volume. short term weather effect or has it finally hit bottom? i think the stock hit bottom. macy's was at 4% with a pretty decent balance sheet. maybe time to buy. of course that happened on the first day of the year. macy's had a big inventory problem with warm clothes. guess what? it's freezing out and that will take the pressure off. does it make it so they can charge more because it's cold out, too late for that. but i do think that macy's who got too cheap. remember it was at 72 in july and it got down to 34. and that was not a two for one split. >> the house of pain. >> bob in florida, bob. >> caller: hey, jim, first i want to thank you for everything you do for us little people. and i want to ask you about black stone. i bought it a couple of years ago around 22, 23. when it hit 40 i sold a quarter
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i had a double i'd sell more. and it never -- didn't keep going up. all of a sudden, you know, it started going down and it just continued to go down and broke down below 30. now even though it's got a hefty dividend i'm wondering do you think i should continue to hang on? >> bob, it's never been a good bet to bet against steve schwartzman up. yes, it's true, they can't give you the same kind of distribution from when the equity market was hot and they could do ipo's. i would not sell that. by the way congratulations on taking that nice profit and that makes a lot of sense. don't buy it back. i wish this weren't the case. but i just don't see any hidden gems among the losers of the s&p. in fact i see the worst. you sell worst of breed. much more "mad money." coke, pepsi or another beverage stock? i'm taking the lid off the beverage players to see if they could have serious pop in 2016. then if at first you don't succeed, you try again.
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fire, the lightning round. after the market's not so hot performance in 2015 not to mention yesterday's brutal thrashing, if we want to know what will work this year it's
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the "p" beat b and j. the beverage industry put up a solid 7% gain. albeit by less than a percent. if you bought it back in 2009, you'd be sitting on the 200% gain. right now you need a bit of a defense, don't you, and the food and beverage stocks are as defensive as they get. so tonight we're going off the charts. with the help of bob lang, a phenomenal technician, the founder and senior strategist at explosive options.net. as long as being the technical star in the three-man team behind the trifecta's stock newsletter. i urge you to check it out. why don't we start with cramer favorite pepsico, which gave you a robust 8% return last year including dividends. if you look at the daily chart, lang points out there's little movement in pep over the past
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big institutions have been holding on to the stock rather than dumping it aggressively. in fact, lang thinks they're building a base at a high level to trade it sideways see, that's the base in recent weeks which is a precursor to the next move which is higher. what else makes him believe that pep is ready to run? well, how about the relative strength index, the rsi. it's trending higher. that means above the green line and same with the money flow. that's data at the bottom here which technicians use to measure the level of buying and selling pressure on a given stock. pepsico went positive. i can't tell you how important that little move right there is. it suggests that buying has just begun. plus, lang likes the stock is sitting a couple of points above the floor of support of $97. there's your floor, okay. the floor was tested yesterday
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it held. what's not the like. next up, how about dr pepper snapple which i used to drink when i drank carbonated beverages. we like this on "mad money." one that gave you 30% return last year. it's been a model of consistency, but what lang likes here is the fact again, the money flow. that he's the oscillator is in very positive territory. that indicates the big institutions have been loading up on dps. to own a winner going into the end of the year. but dr pepper snapple has begun to pull back, even as it rebounded nicely today. lang thinks it will find a nice moving average which is at 90 bucks. it could be ready to resume the long march higher. what about monster beverage,
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2015. it's now more than downed since i started to -- doubled since i started to recommend it aggressively. lang finds this picture to be a bit tedious. monster's still involved in the long earn term 200 day moving average the line in red. but with the stock slipping below the violent sell-off, monster's chart is in neutral. at least for the moment. if monster is tedious, coca-cola chart is terrific. the stock pulled back below the 50 day moving average. 50 day being the blue. that's not a good technical sign. lang thinks it down a point or two from here. and the chart doesn't give you too much to be excited about frankly. so what beverage companyan we get excited about? aside from the aforementioned dr pepper and pepsi?
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oh, boy, long time fan, long time fan know this one. i'm talking about constellation brands, pushing higher for ages because it's the maker of corona and pacifica. a favorite at my restaurant and not mentioning the great wine and liquor business and the tequila. the blue bottle. check out the daily stock. it roared 45% in 2015. lang said there's more room to run. constellation fell from -- fell to 140 from 144. when it got hit, it hung in there at the 50 day moving average. that's a champ. well, it got hit with a ton of high volume selling yesterday morning and the stock only rebounded almost back to the
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in other words, the floor of support was tested in one of the most brutal sell-offs we have seen in ages and it held. now, constellation rarely gives you any kind of pull back. when that happens, well, lang points out that buyers tend to back up the truck which is what we saw today. every recent pull back to the 50 day moving average has priced to be the nice launching pad for the stock, something we saw in august. then in september. then november. and then again in december. this one is like clock work. while constellation is roaring today, lang thinks it has more room to run. why not wait until the terrific company -- we heard from mr. sands last month, reports on thursday morning. hopefully you can buy it into weakness because the stock has gone up into the quarter. it does have a nasty habit of selling off after issuing even the most robust of results. that's when to pounce. here's the bottom line.
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not to have something in your venture portfolio and few groups are more defensive as the beverage plays. it held up all well last year. now, the charts says that pepsico and dr pepper and snapple can outperform this year. i would wait for stz to report in a couple of days before "mad money" is back after the break. everyone loves the way dark clothes make them feel. and no one wants that feeling to fade. that's why there's woolite darks. it's free of harsh ingredients, keeping dark clothes looking like new for 30 washes so your love for dark clothes will never fade.
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with no obligation, so don't miss out. call for information, then decide. read about the 30 day, 100 percent money back guarantee. don't wait, call this number now. >> it is time. it is time for the lightning round. you say the name of the stock. i tell you whether to buy or sell. when you hear this sound -- [ buzzer ]
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over. are you ready, skee-daddy? time for the lightning round. i'm starting with jack in florida. jack. >> caller: cramer, my question is on fiesta public storage. does it have room to run? >> you know what, i happen to love this stock. i love it since i was told about it. it was cut to neutral by goldman yesterday -- and i said to myself, this one is the great real thing baby boom play. how about nick in virginia? >> caller: booyah. my wife inherited a bunch of exelon. should i hold or sell? >> i'm not crazy about exelon. i wouldn't bother to sell it here. it's getting hammered already. jim in florida. jim? >> caller: booyah from sunny naples, florida. >> i love naples what's happening? >> caller: we got rid of a bunch of mlps -- >> i'm not selling this stock at
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i don't think it's that bad so to speak. how about jim in pennsylvania, jim? >> caller: how are you? i have a question, there was a publish on the street article about why -- could be the next big buyout. my question is -- the buyout, who does that and how could that reflect on the stock? >> you know what, i saw a piece on the street about how cash flow problems at hog. here's my issue with hog. let's be real blatant about it. the japanese are subsidizing competition to harley-davidson and our government doesn't stand up to defend our great manufacturers and there's the problem with harley as it is with polaris. frank in new york? >> caller: what's your take on new star energy? >> i'm trying to avoid that whole yield comple i don't
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philip in new jersey, philip? >> caller: a big happy new year booyah, jim. you are the man, the myth and the legend. i kind of own some shares of alliance technology. i want to buy more to add to my position. is this a good stock to add to? >> periodically, i get a stock that stumped me in the past. this is one of those. i didn't have the right call on it. it's been a real good stock but i'm not the act, so to speak, when it comes to a line. caroline in maryland. >> caller: thank you. i need your help with uber corporation -- >> people think it's an oil and gas company. when it yields more than 3% it would make a higher yield. let it come down a little more. if you own it, i don't expect great things. how about brad in pennsylvania.
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from electric city, scranton, pennsylvania. >> nice. nice. >> caller: all right. so i have a question on scripps network. what do you think of the stock price, keeping in mind the nontraditional cable packages? >> cable is so out of favor right now that it doesn't matter how good they're doing. they're doing well. i'm reluctant to sell a stock that good management. that, ladies and gentlemen, is the conclusion of the lightning round! [ buzzer ] >> announcer: the lightning round is sponsored by td ameritrade. bleeding gums? you may think it's a result of brushing too hard. it's not. it's a sign of early gum disease which you can help reverse by using listerine added to your brushing routine listerine kills up to 99.9% of germs and helps reverse early gum disease in just two weeks. listerine power to your mouth also try listerine floss.
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seems like we've hit a road block. that reminds me... anyone have occasional constipation, diarrhea... ...gas, bloating? yes! one phillips' colon health probiotic cap each day helps defend against occasional digestive issues. with three types of good bacteria. live the regular life. phillips'. i absolutely love my new york apartment, but the rent is outrageous. good thing geico offers affordable renters insurance. with great coverage it protects my personal belongings should they get damaged, stolen or destroyed. [doorbell] uh, excuse me. delivery. hey. lo mein, szechwan chicken, chopsticks, soy sauce and you got some fortune cookies. have a good one. ah, these small new york apartments... protect your belongings. let geico help you with renters insurance. . .
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. it hit me today, the chinese communists are running their stock market by trial and error. on monday they tried circuit breakers to curb the decline, that was an error. so last time they put billions to work to stabilize the stock market, trying something else to prevent it from crashing under its own weight. they can demand that households only be allowed to buy, not sell or make short selling a capital crime. that sounds preposterous unless you understand how the rule of law works in china. it's very simple -- the communist party runs the show and they'll do whatever is necessary to keep the balls in the air. and do it longer than anywhere here in the west believes possible. go back to the dog days of
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back then the shanghai composite plunged to 2,927. remember that was right on the heels of the decline from are 5200 on june 12th to 3500 on july 8th. a bonus rebound. read through the market commentary about that perredio. it was about how the chinese couldn't stop that, we were possessed about the collapsing stock market. where it stops nobody knows. wise people said over and over again that no government can stem that tsunami of selling. they were wrong. no democratically elected government bound by rules like a commitment to free markets or checks and balances could do it. but china doesn't play the rules. the rules see them as archaic to
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individualist to create selling. say what you want about the people's republic of china. they're not willing to allow anyone to destroy the wealth of others. unless of course the communist party is destroying. they want to create less pollution and spend like we do here in the u.s. the china stock market is tinkering with the notion with how to make it work. their market is still in the infancy and they're pretty much making it up as they go along. communist party now recognizes it was too easy in the way it allowed individuals to borrow and open new brokerage accounts. the party recognizes it gave rich industrialists too much leeway. it recognizes that it let hedge funds drive stocks down with short selling to profit from the declines. even in the stocks suffered from another abstraction overvaluation. so now the party is trying
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creating things that either dismiss as silly or condemn as making the market rigged. i find the dialogue ironic. on the one hand, the ideal logs carpet bombed the market for being low. on the other hand the chinese don't fool around. when they want to rig the market they rig the darn market. they just create the prices of stocks where they want them without impacting the real economy. via low inflation rates. communists they cut to the chase. you need to learn from what happened in august. china is a communist deck -- dictatorship and they're real keen on executing people for white collar crimes. if the communist party wants the shanghai composite index to stay above 3,000 they'll find a way, even if it takes not a village but a firing squad. yep. they did whatever it took last
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why can't they do it again? but how is this even doable? go back to my consent of trial and error. they're working out the kinks over there. the people running china take a view of things. they got too rambunctious, they thought things calmed down since summer and they made adjustments. are these phony, not if you're making the rules. in china, the communist party makes the rules or at least they make up the rules as they go along. stick with cramer. so how ya doing? enough pressure in here for ya? ugh. my sinuses are killing me. yeah...just wait 'til we hit ten thousand feet. i'm gonna take mucinex sinus-max. too late, we're about to take off. these dissolve fast. they're new liquid gels. and you're coming with me... wait, what?! you realize i have gold status? do i still get the miles? new mucinex sinus-max liquid gels. dissolves fast to unleash max strength medicine. start the relief. ditch the misery. let's end this. cheez-it grooves are the perfect union of a cheez-it and a chip.
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umm... i guess... you'd make a pretty bride in that wedding gown. oh, it's a lab coat so... hey everyone, joe's getting married! bam bam ba bam. oh, i'm not. we take time for our cheese to mature
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okay, you saw the network has stanley fisher on tomorrow. he has been a guy and i revere him, but he's been one of the guys who says we need to have multiple rate hikes. so be prepared to give up what we saw today. i promise to find a bull market for you somewhere.
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