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tv   Mad Money  CNBC  March 18, 2019 6:00pm-7:01pm EDT

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0s, you're a buyer. >> see you in 12 hours on the big screen anardarko petroleum. >> are you on the mall. >> no, he's going to watch >> i don't know what you do in the morning. >> thank you >> you're all welcome. thanks for the techs "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. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to save you some money my job isn't just to entertain but to educate you call me at 1-800-743-cnbc. or tweet me @jimcramer close watchers of "mad money" know that i do play one on tv weekly
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show you technical patterns. given that i base almost allof my work on fundamental factors related to the company's i study and not the shape of their charts the off the charts segment is both antithetical to my method. but i know from your feedback on twitter you're interested in this analysis and it's proven itself time and time again to elie get a lot of people involved at the right level. now, not for a minute as i explain in get rich carefully, where i devote a whole chapter to charting, have i become a chartist myself? i still single out stocks to highlight and teach about after studying the fundamentals, the research, the annuals, sectors and overlay them on my broader world view at the moment chartists could care less about this stuff they often don't care what the company does i wonder if they could do their jobs with the company's names blacked out. in fact, i am surethey could some of them hate the distraction of knowing much at all about a company for fear it would bias them against the
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stock's chart. can you imagine? i've become proficient at charting but i still rely on the individual work of professional technicians to demonstrate how to use charting and to learn techniques that i can in turn teach you. that's why tonight i am picking the best of the best charts of some of the best technicians we have worked with exploring the patterns that have become reliable to the point where i'm pretty astonished at how accurate they can be i guess you have to call me a long-term believer that's why i started nearly every saturday morning for the last 30 years reading the standard & poor's daily stock charts formerly on paper now on electronic distribution and contain hundreds of charts and match them with the patterns i have learned over time the research available for the most winning of the charts and often become segments on the show you see later in the week why do the charts work people always want to know first you must consider them as if they are footprints at the scene of a crime they trace out what big money managers might do with their buying and selling of dollars
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and these perillo chieftains at large funds often know more than others including you and me. the charts of where their money goes, the charts of the stocks put together clues that these big boys leave second reason to care, there's a remarkable self-fulfilling nature of charting stocks. so many professionals look at these and take them to heart they simply avoid stocks with predictably terrible charts and those with positive moves in the past don't i know it. when i worked with karen cramer, she is a chartist at my hedge fund, she would look seeking ones that stood out as potential breakouts and breakdowns and had me research some with a handle on what might be going on. we got some of our best ideas from some of those a melding of the technicals and fundamentals to produce excellent short and long-term results. all of charting and technical
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analysis starts not just with pictures of individual stocks but the internals, internals patterns about stocks in the aggregate that gives you clues to the direction of the stock market for years since the great recession that show the inherent weakness in our financial system, so-called systemic risk i talk about there's been tremendous skepticism about any advance of stocks. well, i believe the systemic risks have been reduced i know reach rally creates a worrisome set of risks and i know many fear you're coming in at a level that could be too late, too high and you will lose money either way. >> sell, sell, sell. that includes analyzing indicators to help you determine the overall direction of the market more important than never given so many stocks are influenced by the tug of the s&p 500 stock futures. sometimes technicians everything hinges on putting together the charts of individual companies and the charts of the bigger averages to create comparisons
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that ee laus date and illuminate true market strength they're looking for confirmation of a move to detect its legitimacy i think confirmations are incredibly important to the safety of a move they need to be explained closely. the most important and obvious confirmation, let's say the dow jones average hits a new high. that will not be sustainable unless the dow jones transportation index also hits a high or confirms the breakout status of the dow itself the dow jones transportation index is a measure of commerce tracking train, planes, truck, freight, that's a good gauge if both the industrials and transports hit new highs i often tell you that the move is legitimate and it can be trusted. it is real this is some of the oldest technical work dating back to the founder and first editor of "the wall street journal" who created the dow theory to validate rallies or defrock them you hear i like how the
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transport bs are acting. that that's because i'm trying to see if it has staying power. the banking index is important the housing index, i look at the semiconductor index and the rth, that all-important etf that encompasses big retailers. i like to see them move up in sync before i bless it for you you get them rolling higher and have to put the maximum amount of chips on the table. oh, boy, but is the inverse true if we get a move, a move up without confirmation from a majority of these indices the whole rally could be a fakeout and can't be trusted the classic example. if you go back to the move up to record highs before the great recession, you won't notice something pretty incredible if you go back and study it you will notice that there was almost no participation among the financials, the retailers or the techs. technical analysis got you out before it was too late and did
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bert than the fundamentals i analyze advances and declines. like a market with good bredesen a -- breadth. it isn't easy. the company has to do well and second it has to be strong strong, federal reserve, geopolitical tension, politics have to be aligned to make some stocks successful enough to get on that new list that high list is rarefied territory. you run the gauntlet you have a good stock a stock that i probably want to buy on any pullback market related. not substantive to the stock and if there are a lot of stocks for many industry,s that sea actually a terrific sign so here's the bottom line. you may not be a technician but need to know what the charts are saying and how to read the internals to verify a real move or a phony one stay tuned and we will go over a whole host of predictive
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patterns that is everything we do not just on the off the charts tuesday but in stock selection every single day jim. >> caller: hi. how are you? >> what's up >> caller: i got a question for you. in the segment you were talking about secular stocks could you define for me once again what is secular stocks and maybe give me an example or two? >> certainly and, look, this is a very important issue it's a term that gets thrown around people say secular, parochial. it means a secular growth stock does note the gross domestic product for it to beat the numbers. some classic secular grower stocks would be some of the bioteches, some of the retailers that have terrific growth. gary in california gary >> caller: mr. cramer, boo-yah to you. >> boo-yah, gary
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>> caller: my question is regarding dividends in a down market, sir. if you're accumulating dividends on a number of stocks as you suggest is it better to reinvest in a down market or to take the money as cash and possibly reinvest that in other opportunities. >> we don't know when a down phase is going to end and know the power of compounding is an amazing thing so we're going to stick always on this show, i know it soups pretty pedestrian, but we're always going to opt in favor of reinvestment because fortunes have been made through the power of compounding i've got to go with that regardless of the near term consequences because i'm thinking long-term for you fundamentals, oh, they're key but technical matters too. tonight i'm bringing you into the world of mastermind chartists so you can learn to see the whole picture behind a stock's moves. on "mad" we know the chart is important. what technical tool can help you detect floors and ceilings i'm revealing it
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then how can you tell if a company is overripe for a pullback or ripe for a bounce. mixing patterns isn't only for fashion. i'm highlighting those that come to investing why don't you 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 mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc miss something, head to madmoney.cnbc.com. cramer has burned the midnight oil and ready to run the gauntlet he sits down with some of the market's most influence players. join "mad money" for must see interviews you can't afford to miss
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tonight we are offering the best of the best of technical analysis a one-stop shop for everything you need to know with the help
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of the best chartists in the land, the province of the best chart work on the show, spotting bottoms for best entry points and examining ceilings forthe best places to exit or sell. when you pick individual stocks you are betting from the moment you buy them they'll go higher i know, it's a pretty simple concept. how often do you do solid fundamental work and try to figure out whether it's the right thing, the right decision to pull the trigger because your homework is finished and then, well, it's just a terrible time and you're buying a oblivious to the stock. maybe it's not the right moment. after all the work i've done on the off the chart segments i say you're being shortsighted if you don't check out how it is after you do the homework. it's not just the right time, in fact, i've considered looking at the start or stock as you like as part of the homework. get that in your head. get it ingrained into your thinking sometimes finding boimans after long declines can be incredibly
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lucrative. back to the bottom of 2009 now, i had a sense that the decline's velocity was lessening and heard the famous haines bottom call based on a feeling and doug writes with me. part of the street.com family had turned pronouncely positive. he was saying we were in a generational bottom. but i was still skittish about picking any individual stock to recommend to you looking for a situation bulletproof as i could find and came up with at&t. the phone company. it had so much going for it. you got to go back in the way back machine, a smashing rollout of the apple iphone which was going to produce record profits as at&t took business from apple and its competitors had a dividend that yielded 6% and a little more. the dividend was safely backed by at&t's humongous cash flow. the stock kept plunging every
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time i thought it might have firm footing and did my research thought it was time to buy, no, no, check the chart. so i waited and waited for a few days where the stock seemed to stabilize and decided at last the level might be right in dicey moments it's best to check with the chartest so i did and brought in four, four chartists, amazed they all agreed to a strong foundation and they didn't care at all about the fundamentals so take a look at what attracted them and take a look. first all four technicians agree at&t had establish what had is known as a climax low at 21. back in the tsunami of selling that was this period you have to understand we are just at one of these moments that was just so hideous you can see the big lift, big lift in stock. and then, well, let's -- i don't want to give away the story. that's where lots of sellers capitulated right here but buyers had started to step up to create a base.
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okay the extended base, we're floored here they arrived at that by looking at where the volume, the sum of all transactions expanded to a level far in excess of normal periods training then, boom, take a look at that. that's a sign that the sellers had exhausted themselves much the volume levels showed that most of the big managers wanted out. they had fled it by now. at the same time buyers stepped up to meet the supply with a concomitant level of demand. there were so many more sellers than buyers they knocked it down by their own selling as long as sellers overwhelm buyers no base can form, bad time to buy. a climax is a sign those sellers who have been holding one for some time are finally giving up on mass. big giveup remember technicians don't care why that might be the case they're just monitoring price and volume when they see volume gets larger, expands but the stock
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doesn't go down that means at last it's found its floor. effo it's safe. their power to determine the direction of the stock and a form of equilibrium. okay, that's the base safety that's going to happen when a stock takes out resistance overhead okay to examine the possibilities of a stock the technicians don't just look at closing price and price against the previous day or weeks, they don't just say that looks good or bad that's not helpful it doesn't give a true picture they use a moving average. to better represent the action in a stock's price move many, a moving average is formed by taking the closing prices of a stock over a period of time and then adding those prices up and then dividing those prices by the days in a particular measured period. i'm breaking it down for example, you can measure a moving average over a ten-day period by adding up ten days and dividing it by ten and plotting
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a number on a graph. each day you add in the new close and drop off the earliest price to get the sum the four technicians i checked in for at&t all choose to use a longer term view and chose 200-day moving average a floor at $21 level they found, the stock repeatedly bounced off of, it kept failing meaning it couldn't get through -- failing to move up above the 250-day moving average they plotted it and did the same amount of work that's what they looked at and created what looked to be a ceiling. we had the ceiling, the 200-day moving average there's nothing you can do they felt every time it got there it wcapped then it cracked through the ceiling of resistance and that's the 200-day moving average, that was the signal that was the signal that it could generate a great trade or an investment. the old roof became a new floor.
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here's your new roof every time it went above, the stock would come back and test that floor and it held this pattern emboldens buyers as they recognize it doesn't break that newfound base and didn't go back to where the climax low was. it held. looking back at the beautiful bottoming that we see here with at&t, it now seems like child's play, doesn't it of course, it was down going down yet at that moment it was anything but easy. these technical analysts were saying the bottom is in and time to buy the fundamental analysts were scared out of their wits not one was valuable to me in helping to call a bottom they were scared to death right here some worrying about pension obligations that could cause the dividend to be slashed something way, way wrong but it scared the heck out of me remember how many are in it for the dividend that base, that floor gave the stock a launching pad to blast off in a straight line into the 30s. one of the biggest gains it could give you when you see this kind of
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reliable pattern as at&t demonstrated despite what the fundamental analysts might be saying use the dis34ri7b these technicians give you to pull the trigger and take advantage of a fabulous buying opportunity that might be overlooked after the market takes a real shellacking. never took it out. went way up. after the break i'll try to make you more money
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welcome back to our special technical show the next crucial theme for technicians whether a stock is overbought and therefore ripe for a pullback or oversold maybe rea ready for a bounce you determine that by charting the ratio of higher closes also known as the relative strength index or rsi. the relative strength index is a momentum oscillate their measures the direction a stock is going and the velocity the move we like to match the relevant strength of an individual stock to something else, maybe that of a larger index and measure the price action historically and looking for anomalies where strength stands out. that that's a sign of a pending move. perhaps a momentum switch we wouldn't know if we just read the research for a chart i turn to bob lang and tim collins. many technicians vary the length of time over which they measure it both like to use shorter periods
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of time, ten day, two weeks to get a beat on it they're looking for any pattern that reverses the action of the previous period because that's a sign that a breakout or breakdown of some magnitude might be upon us and love strong relative strength situations but like to time their buys after pullbacks. get that better entry point and care about base sees overbought stocks with many buyers tend to snap back after they've gotten too far away from their longer-term trend line the inverse can be true too. a stock can fall so far so fast you should expect a snapback because it's technically oversold you hear me use these terms. we see these patterns constantly they're reliable indicators a change in direction is about to occur. these are terrific action point, people if you were debating buying a stock after you did all the rooch a research, i almost always tell you to wait for a pullback
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they have done enough chart work to know the vast majority retrace some of those moves back to better entry or exit points retracement isn't necessarily negative charting though is tricky. periodically some stocks are so strong they break through all the screceilings and then they overbought perhaps for weeks at a time to find the historical trading patterns that have trapped them within the bands of extremes and define the gravitational pull and just can't be contained by any of the various ceilings that overbought conditions usually bump into and come crashing down from. when you spot these highly unusual moves you may have to strap yourself in and we have -- let's take a look. this is what i mean. this is rare but when it happens, it's big money. we saw it occur in july of 2009 as dan fitzpatrick pointed out to me using a stochastics oscillator, another indicator to
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help spot a bottom in las vegas sands. this summer, one of the largest casino companies with a very important business, not that it mattered to chart ifs had stalled at the 10 buck level falling every time it hit, boom, boom, boom you know, just not working okay but when the bulls finally broke out of the corral there was no stopping and the stock gained after it pushed through instead of regrouping to recover that's a rare pattern. you see this thing, it just stayed overbought which told you good things were going to be ahead. it never retreated as you would have expected. buyers wouldn't quit despite the stock being overbought and that is a sign the strongest kind a positive move in the book might be taking place at any given time i expect a pullback, but, no, had a gigantic overbought an went from $10 to $48, pretty much in a straight line with no substantive pullback to speak of
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and overbought condition that can stay overbought is a golden opportunity for a huge move. look, it came to being overbought again i like to marry fundamentals with charts so i'm not too dependent on pictorials. what was happening here? you know what was going on right then, that's when the chief locust of profits went if being vegas to mccal the only place where gamble something legal in china it transformed no an international powerhouse the charts told you about the transformation well ahead of the analysts they weren't thinking about macau here the chartists were thinking there's buyers lurking volumes is another key tool to spot pivots. we often say volume is a lie debuter. okay, telling us whether a move is for real or not when there is a small move on light volume, the technicians ignore it but when there is a small move on heavy volume, the
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chartists drill down laser like to see if it's a precursor to something bigger and infinitely more tradeable they are looking for accumulation on big volume meaning that large money managers are beginning to accumulate stock or distribution, that's a synonym for selling of a stock and measure them by something called an accumulation distribution line when the calculation is arcane involving -- i know it is charting of whether a stock closes higher on greater volume or on any given day versus lower or low volume any brokerage house will offer that on their website, i care passionately about it that's what i love charts so much they go against the fundamentals and sometimes they're right. we saw them being right in monsanto in july of 2012 this was an unbelievable one that i completely got wrong. thank heavens rp to the chart. i didn't care for this stock at the time i didn't like gmos, i was kind
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of biased. tim collins saw it another way he said the accumulation distribution line showed that while the stock had down days they were on light five, all the light ones you had low lines and heavy volume on the up days. a sure sign more money was flowing in than out. he noted a consistent persistent accumulation or buying pattern versus the distribution or selling pattern convinced him large funds were building positions to own the stock long term not to rent it for a quick move, it turns out that what i didn't see, what i was so confused about was that monsanto's stock had started to be correlated with the price of corn which was going higher back then because of newfound demand for ethanol i was far too concerned about near term earnings and worries about a shortfall and wasn't thinking big picture but the charts showed you big picture. the work of collins told you not to fear. it was showing you that
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something bigger was developing. he was dead right and a stock i would have kept you out of turned out to be a big winner when corn shot up taking monsanto's stock and its earnings up with it. the big boys new the relationship with corn and monsan monsanto's business and piggybacked off their research using collins' work which isolated the real strength as depicted by the accumulation distribution line. i got smoked he saw it. bottom line, we need to look at lots of different indicators to spot big moves like accumulation distribution, over bought, oversold levels despite those not visible otherwise. powerful moves can and do often allude those only focused on the underlying companies and not the action of the stocks themselves. let's go to dan in illinois. dan. >> caller: cramer, boo-yah thank you for demystifying the market and helping us make it accessible >> that's what i want. i want everybody to understand
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their money. that's my goal how can i help >> caller: thank you i'm wondering if i start with a small position in a stock, a company i like and the stock just keeps going up, the most it comes down is maybe 2, 2 1/2%, how can i get a more sizable stake. >> my discipline says you missed it my discipline will cut off the downside which is far more important than cutting off the upside it's a trade and you got to take it when you violate your bases and pay up i can show you years and years i have done the work it is almost always a mistake. chartists use all different types of indicators to spot big moves. that helps them stay ahead of the game and fundamentals and now you're ahead too much more "mad money" ahead. head & shoulderers isn't only used to are preventing dandruff. how to help you make money and are tech nicks fundamentals like
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the jets and sharks. you won't want to miss my dynamic. a burning question, i'm taking your tweets. go ahead and tweet me @jim cramer, # be madtweets stay with crimer >> announcer: when it comes to your pflt, cramer will always go the extra mile traveling the country and telling the most valuable stories. ♪ start your investment journey with "mad money. and let cramer help map out your financial future his family. his steinway, which met a burst pipe.
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so grant met his insurance: you are caller number 12. which didn't quite cover the steinway. but what if he'd met pure insurance? owned by members. he'd have met: lisa, your member advocate. who'd introduce him to gustav: leave it to me. a temporary address, temporary ivory, and help him get tickets to the mozart festival. excuse me, grant likes beethoven! uh, the beethoven festival. pure. love your insurance.
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we learned a lot about the key terms of technical analysis. now, let's look at some of the individual charts that will of you find fascinating evenas some of the patterns, they almost sound silly as if they're mimicking letters or body parts. i learned to not ignore the
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dreaded head and shoulders pattern. >> no, no, no. >> the house of pain try travel trust took a giant bath because of that ill-informed or could i just say early buy. remember, i like to do mea culpas and show you what i did wrong. you can learn from my mistakes we incorrectly became enamored and made it less dependent on metal. something it solidified when it said it would split into two companies. alcoa, enjoyed a health run for the winner of 2010 right up until february of 2011. rises from $13, nice rise, right? up to 17 as its trajectory finally turned around. not long after it hit 17 took a quick dive back to 15. no reason i could discern and quickly reversed and went right back to 17
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and then went to 18 on the eve of the quarter report. i thought the quarter when it was announced was a fine one beating both the tom and bottom lines. most of the time that's all you can ask for. what worried me was after initial positive reaction, the stock then dropped down to 16. 16 and change on the news of that better than expected quarter. a few weeks later back to 17 and i felt almost vindicated, right? come on. it now was ready to challenge that 18 level. so i went and bought more. i went and bought more right there. could i have been more wrong i don't think so that 17 to $15 dive represented on the chart as a point a and b, then followed the run to c, 18, back to 16, d, finally 17, e you know what that is, that's a perfect head and shoulders pattern. yeah, just like a human's head that is it that is the most frightening pattern in the entire chart book
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and alcoa traced it out. just when i thought we were out of the woods what was happening during that period europe and china began their slowdowns and alcoa became into a glut he could control his own company but not the price of the commodity itself still aluminum over the course of the next few years kleinfeld reinvented alcoa to shall -- be much less dependent. mea culpa. one thing i admire about technicians their intellect cal consistency. if a head and shoulders pattern signals trouble, at the beginning of january 2013 lots thought the economy was taking off and investors running for the classic food and drug stock, the ones you dent need a strong economy and headed toward cyclicals, caterpillar, united technology, the kind of rotation, that kind is usually
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in the death knell for stocks that go higher only when the economy is slowing, however, tim collins on an off the chart segment said, jim, take a hard look at pfizer because its stock was tracing out a reverse head and shoulders period the largest pharmaceutical companies would be precisely the company i would shun i would normally never touch it when the economy is speeding up. take a look, you can see that pfizer trades down a left shoulder as it rallied through the month of october and then started to declining acigarettively, okay, in the november the stock bottomed to form the head and then in december caught a rally and then a pullback to create the right shoulder. the key with this pattern is the neckline the line that connects the head to the two shoulders when a stock breaks out above that line it tells the technician you are about to witness a big, big, big move pfizer's neckline was $25.80 and collins predict fundamental it could take out that neckline
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it could be in for a monster run. given money was pouring out of staples and drug stocks i was confounded by this bullish reverse head and shoulders pattern and didn't trust it one bit. come on, i knew it was a bad stock. but collins said rotations, smotations buy the stock because something big is going on. i thought it was inconceivable sure enough, he was right, i was wrong. the stock almost instantly jumped more than 10% after collins told me to buy it with both hands what caused the move soon after collins flagged this bullish reverse, right here, the reverse head and shoulders pattern, the huge drug company spun off its animal health division that created $15 billion in value who knew the chart did. here's the bottom line, patterns marrit wh don't take any chance, sell, sell, sell, at least some and when you see reverse head and
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shoulders developing, even if it makes no sense when it comes to which stock it is happening to, you got to consider buying some. that's how powerful these moves are and the chart work is vindicated far month often than the skeptics would ever think possible stay with cramer hey, i'm cramer. welcome to "mad money" "mad money. other people want to make friends, i'm just trying to make you money. ♪ >> welcome to "mad money" 101. from the u.s. military academy at west point. "mad money" is not a show about picking stocks for you it's a show about empowering you to think for yourself. you are the reason why we do this bewant to level the playing field for you. for your heart...
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we run the gamut on this show including some of the basic patterns like head and shoulders
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and reverse head and shoulders that have big up and down moves. those aren't the only ones that can be relied often to tell us the truth when the fundamentals give us little insight thinto te direction of stocks. one chart type is the cup and handle pattern we've seen it so often it's been so reliable i used it to keep myselves in stocks i might have been turned off on other shaken out by take the stock of cramer fade domino's we got behind the pizza franchise when it traded down to 10 bucks and felt greedy when it was up to 30 it had sideways action and began to drift down on no new news i hate these situations on no news because i'm always paranoid to believe something is happening an i don't know about it when the analysts are iffy as was the case with domino's in the 30s, that's when technicians are most needed. i went to ed, one of our favorite chartists and asked if tore his help to define if their
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moment had come and gone take a look. here's what he said. when we reach out to him, the stock had just begun to drift back up and you know what, we would have blessed him telling to sell. the thrill, well, might have been gone. maybe ring the register, take the big gains for our viewers, so tempting right there. huh-uh in fact, he told us to do the opposite that advance back up was the sign he needed as all was well he said it was a special moment. he was anxious to show us why. with that return back up to say 36, okay, domino's was tracing out a perfect cup and handle formation. that's right a pattern we have found to be as reliable in head and shoulders you caught the beginning of the cup at 36 bucks and general slope down to 28 where thebase was and i was nervous right there. all right. he told me not to be
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it went to 36 and right side of the cup and 36 -- a little seideli"sid effects" -- and the handle almost signals a higher move handle always goes like that very reliable. sure enough his work nailed it and received a double and then some it turned out that the stock was simply consolidating and ready to power higher on the next big move positive action. domino's right there, what they were doing, embracing technology the web and the cell phone, facebook, limited order takers and let them place orders directly via the net we would have left a minimum of a double on the table if it weren't for ponsi's guidance i didnhad to go back to him whei was thinking about monster beverage i needed him to give me the skinny it was one of the best
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performers and there was the distinct possibility of regulatory intervention to the energy drink business. always deadly. set me straight. check this out he said for months the stock of monster had been bouncing off its 100-day moving average, the blue line, you can see every time it looked like it was going down, it rebounded look at this, rebound, rebound, rebound. he said monster was tracing out a series of triangles. also known as flag patterns where you get a flat ceiling and upward sloping floor you see that triangle when it hits the new line it punches right through. he said they time you get these for makes short-term console agents that a prelude to a continuation pattern, you do not have to worry about a stock running on empty as a matter of fact, you had to buy it both happens every time 49 proceeded to jump to 79. con founding the naysayers including numerous short sellers. if they cared about it they were worried about the government intervening. you know what, monster tied up
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in coca-cola true monster in a deal that rocked the world energy drinks here to stay once again i would have been taken out of this stock's move if it weren't for ponsi and his chart hand holding there are a lot of variations to these formations take a look at this. collins identified this. big move up. citigroup. the lowest kept getting higher he loved this. this is what is known as a wedge pattern. collins fines it reliable as the pennant and triangle patterns and had tremendous success of carolyn, fibonacci queen here the mathematician i talk about. ratios in nature you heard of those patterns. carly garner we like too examine when too many hedge funds are leaning the wrong way
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and have to veer in a different direction for success. technicians and fundamentalists can co-exist make peace with them both and i bet you will make a heck of a lot more money than blind to one or the other and certainly to both "mad money" is back after the break. i'm opening up the lines to hear from you because it's an uncertain time i want to talk to you. >> mr. cramer, i just want to tell you you are absolutely positively fantastic. >> caller: thanks for helping us not panic, the average investor which we all know and love, you indicator to always and appreciate that for all you teach us. >> i am not going anywhere you shouldn't either we well get this through together. >> announcer: cramer has your back let's take apple on the market together >> we got to figure this out we'll puzzle it over and make it so that we're all smarter.
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you thirst for adrenaline, you hunger for raw power. well, you've come to the right place. the road is yours, dig in. a cfp professional is trained, knowledgeable, and committed to financial planning in your best interest. find your certified financial planner™ professional at letsmakeaplan.org.
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hey, cramerica, in charts you're looking for trends. on twitter what's trending can also tell you a lot, #madmoneytweets, anyone. i'm counting down some of your top sweettweets from @ dthompson, thanks to your books and hard work saving and investing i retired at the age of 55. i want you to continue to own a
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lot of stocks. you won't get ink from other bonds and stocks compound. you get that dividend. keep reinvesting here at src talent tweets mooshgs i 19-year-old wants to start saving for retirement. do you have any advice it's boring at all getout. we'll start with an s&p index fund not going to recommend any particular one once they put $10,000 aside then they can focus on individual stocks, them's the rules i'm not varying them shoutout @hds springerrider. don't let the haters get to you, jim. keep doing what you do stay above their pettiness what i like this is my little zone here, right it's all nfl you come into my box, you're going to have to be tackled. i'm not looking the other way. next up, @ villaparyj writes,
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you want new investors to max out on index funds, again, this show is incorrectly known as some sort of trading show where we don't like index funds. we're an investing show where we demand you be in index funds, sorry for the misinterpretation. last but not least, @ jakekrippner, excited to have found the jim cramer show at a relatively young age the guy is a genius with a laud of valuable information for free stay with cramer
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all right. i like to say there's always a bull market somewhere. i promise to find it just for you right on "mad money. i'm jim cramer and i will see you next time >> announcer: take control cramer's exclusive ceo interviews, full episode, analysis, even your own sound board. plus special access to "mad money" 101 with rules and techniques to break down the market for all investors. >> the red flag that makes me drop a stock immediately -- >> it's everything you need right when you need it the new "mad money."cnbc.com
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(male announcer) since premiering to nearly 40 million viewers in 2010, more than 70 bosses... [snap] oh, my god! (announcer) have posed as subjects on a fake show to get honest feedback from their employees. all right. (announcer) it's been shocking. [cow moos] a lot of people smoke pot. (announcer) it's been challenging. it's not the homeowner's fault that i get paid peanuts. (announcer) but it's inspired them to change their employees' lives forever. i've decided to invest around $3 million because of you. thank you. for real? like, this is real? without a doubt. [sobs] i am going to give you your own store. yay! probably the best thing somebody ever did for me.
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i have a check for $250,000.

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