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Who isnt . Who needs a miracle . Thats what it comes down to in the age of the coronavirus including today where the dow rebounded 1,167 points the s p surged 4. 9 . And the nasdaq pulled up 4. 95 based on the hope that federal government stimulus could offset the sudden slowdown were getting in the economy and beat the demand shock caused by the coronavirus. So how do you pick among the rubble now that were bouncing too you think the stimulus may be too little, too late . Which is the judgment i have heard all day. Some people are skeptical. First for all intents and purposes, the market is not working. Thats all you can say well, how about that these violent swings, what are they a sign of they are a sign of sickness. Its unhealthy they tell us people are scared and theyre far too few players, too many investors, too many guys with machine guns for stocks to be able to handle the impact of that fear. It doesnt help the tail wagging the dog. The market just cant handle all this algorithmic activity, all the socalled machines cant handle it. It is overrun. Its broken. The good news. While you can use these wild swings to take advantage of opportunities by identifying High Quality Companies dont think of them as stocks, companies. And then buying their stocks gradually at your prices instead of having to chase stocks, which has been the m. O. Of this market during President Trumps reign now, if you buy the way i am suggesting, and i think you should, index fund, yeah, buy, buy, buy, but if you buy the way im suggesting, well, you wont feel like a moron when it plunges back to negative territory, which is what happened today, right . I mean, it opens up at 900, then it went to negative, then it came all the way back. If you go out there and buy all at once, you are liable to get the wrong price. Until we are on firmer footing, you have to buy the way im describing in a broken world like this one, you have to be ready to own more and more of the stock on the way down you have to like it more good stocks get cheaper as they go lower, not more expensive and more dangerous if you are going to panic the next time we get hit, you might want to use the moment of strength we have right now to sell i dont know if you should own stocks maybe just do what warren buffet would say. You need rock solid conviction to buy anything so when your favorite stocks go down, and they will, you can view it as an opportunity. When the dow went negative today, that was your moment to buy stocks hand over fist. But you only want to buy the good ones. That way you wont be shaken out. If you sold rather than bought that dip, you might not be tolerant enough to handle this new market maybe you should just go home. So how can you separate the weak from the chaffed in something thats violent and volatile . Well, you have to understand the nature of this downyour honturn im not worried about the Banking System or your atm yesterday it turned out there was an oil crisis. That was really kind of a big part of the big decline. But the collapse of food prices because were the Worlds Largest Oil Producers thanks to the fracking revolution and russia doesnt like it just get it out of the game. Of course, that hurting everybody. So in retaliation, saudi arabia thought they would do the same thing to russia that russia is trying to do to us if prices bounce back, maybe well be able to eke out some profit that is a mighty big if, though. How can oil bounce back big beyond today when both russia and saudi arabia the trying to food the world with oil . We dont have enough demand. To me it is not sustainable. Thats something we will go over when we do a special off the charts segment about oil and gas later in this show i know everyone says, you want to take that bounce. I think its oil given the fact that the saudis will pump more than 12 billion barrels a day. Lets do some elimination to see whats worth focussing our money on and what it isnt worth wasting our money on if we weed out whats not going to work out, you should be worried about your health. The best way to avoid this virus is to stay home. Thats why all the colleges are closing, so many businesses are closing. They want you to stay home no, im not going to tell you to buy netflix. Thats not a bad idea. All right. The worst way to handle a crisis like this is to travel, to go out, to be on an airplane, to go visit, to go to a game as i see it, that means fast s. W. A. Swaths is untouchable. And of course the cruise lines were a servicebased economy, so this is really bad for us until coronavirus is beaten, these groups are toxic to your Financial Health on the other hand, the virus seems to have peaked already in china, japan and south korea they took aggressive measures to contain the outbreak on the other hand the disease is going nuts in italy and iran so which are we . We dont know yet. But im not feeling super optimistic this morning. One of the reasons we dont know is we simply dont have enough test kits already. I cannot believe this. Thats brilliant idea. Here in america we have no surety that comes from having these tests available. Thats a huge problem. If you believe there are tests available, i can tell you that in new york if you have 100 degree temperature and have a cough, you are not sick enough to get one if we dont turn things around, the economic fall from this pandemic could be worse than it needs to be. Speaking of the fallout, the president is actively discussing ways to tie these issues over with low interest loans for businesses and pushing back the deadline for filing your taxes with no penalty or interest charges. Maybe even a payroll tax cut until the end of the year. Thats fine if you have a job. All these things can help. There are also signs President Trump isnt just hoping for the best hes planning for the worst. At least on the economic side of things thats encouraging i like it. Hate him or like him, you should like this. This is a Public Health crisis most of these plans, this stimulus is not a reason to go buy the stocks strike carnal or american airlines. Dont go there you never want to buy during a slow down. Then there is the oil prices say oxi, no surprise after they borrowed billions last year. Stock rallied 4. 6 today because the price of crude rebounded to 54. Big deal if you think crude will stay down here in the 30s which makes sense because of lack of demand from the coronavirus, you have to avoid the whole complex i have been more negative than anybody. The bank stocks sold off hard yesterday. In addition to that, yield curve so bad to their bottom line. There is probably too much negativity but the earnings are still at risk i think you pick at the banks for trade the next time they revisit yesterdays lows not wild about them. So now that we have taken all these sectors off the table, we can now discuss what we got left what doesnt have much earnings risk and is attractive for selloff as i keep telling you, you can buy the drug stocks. Buy whenever their yields go north of 3 . Put a bid down there and yet hit. Given that wall street is worried about a recession, big pharma makes sense theyre closing a deal once in a lifetime pill for migraine you know i know this market. Same goes for the yields of the utilities. I like these 3 or higher, American Electric power, we have comed on alldomim then the tech stocks where youre betting they will be able to keep going no matter what thats why we call them secular growths. You have to think of cloud companies, Microsoft Service now. Service now is a step up i like alphabet. I like amazon. I think amazon numbers may be too low. Face bike maybe is okay. I know when you cut numbers stocks go down, but that was intrigues. These high growth names do tend to outperform in a recession ive got a tech Company Later in the show if you stick with us, well tell you exactly what im talking about. Thats why theyre also the Fastest Growing tech stocks in the country. Now, well get that lag when we cure notice i said when, not if, when we cure coronavirus stocks are certainly down. Im convinced we can beat this thing if the government pulls out all the stop with a manhattan level project of investment share my golden optimism these are the stocks to buy. Here is the bottom line. Until today i have been adamant the only thing you could buy were high yielding pharma and a handful of utilities now were further along and you got my blessing to buy the tech stocks with powerful secular growth stories were stuck in a deflationary sul desack here and thats when tech shines, as does pharma and the utilities. While most other stocks struggle or ultimately fail jose in texas. I want to take a look at u. S. Steel. This stock plummeted to historical lows. Last year this was a 20 stock now the company is facing layoffs because of the effects of the coronavirus with all that being said, i heard this stock is a steal. No pun intended, jim what are your thoughts no. We buy quality in this market. You dont trade down you trade up it is the company to own if you like steel im not a big fan of steel, but thats the one to guy. Phil in new jersey. Hey, jim. Love the show. What would your advice be to the vast silent of your audience that are not individual stock buyers but index fund makers that have been contributing to their companys 401 k and the large stock index funds, Small Cap Index funds and International Stock index funds over the course of 20 to 30 plus years. Right. Particularly, the people close to retirement or even in retirement well, okay, you just changed the whole dynamic there. What i was going to say is you just stay the course but if you are close to retirement or you are about to retire, i dont think you should have all that much in index funds. You got to cut it back a little because we dont know whats going to happen in the market. Its a little uncertain for you. But im still in favor of a very large position of index funds. Thats what i like you left out gold entirely i think gold has to be 10 of your portfolio because gold will be a gold will be a good place to be in this economy. The market isnt working well. Kind of feels like it is broken, but there are still some sectors you can work with. One additional sector, i believe tech can shine forget earnings. Ill tell you why it is all about the Balance Sheet in times of crisis. Then after the worst day with the dow since 2008 followed by todays bounce, lets do some special stocks in the Dow Jones Industrial average ly make some sense of these. And my names that work despite the volatility dont miss my sitdown see if that stock makes sense for you here so stay with cramer. Dont miss a second of mad money. Have a question . Tweet cramer send jim an email at madmoney cnbc. Com. Or give us a call at 1800743cnbc miss something head t madmoney cnbc. Com or give us a call it all starts with an invitation. To be our guest. Call madmoney cnbc. Com or give us a call madmoney cnbc. Com or give us a call onth for 36 months and well make your first months payment. Experience amazing at your lexus dealer. There has never been to have a favorite food. With new grubhub plus you get unlimited free delivery and cashback rewards for ordering noodles, and noodles. And noodles. And noodles. Grubhub plus. Free delivery, cash back, and noodles. Shouldnt you pay less when now you can. Data . Because Xfinity Mobile gives you more flexible data. You can choose to share data between lines, mix with unlimited, or switch it up at any time. All on the most reliable wireless network. Which means you can save money without compromising on coverage. Get more flexible data, the most reliable network, and more savings. Plus, get 300 off when you buy a new Samsung Galaxy s20 ultra. Thats simple. Easy. Awesome. Call, click or visit a store today. The Balance Sheet. The Balance Sheet in times of crisis i always start with the Balance Sheet. Normally when we talk about a company and how its doing, we focus on the sales per share, right . Is the stock cheap versus the overall market but in times like this, tough times, the Balance Sheet is telling us a lot more. Focus. How much debt does a company have can it pay it all back plus, does it have enough cash on hand . These are now the questions we have to ask. Right now there are three industries that are particularly stressed by the coronavirus pandemic, the airlines, the cruise lines and the Oil Producers. Many have way too much debt. Some have no rainy day funds thats an Amazing Company. Its got beautiful ships, sterling reputation. I love the ships but, also 6. 8 billion in total debt yesterday it took down a Revolving Loan for 645 million, which when combined with another untapped resolves of 875 million will give the Company Additional borrowing capacity. We know norwegian has had a good run in the past. But there is some risk here. The governments she spoke to in the fight against coronavirus told everyone this sunday if you are elderly or a preexisting health condition, you shouldnt take a cruise. When you give the green light, but the retired people are the bread and butter of this industry how can it make play roll if the government is telling people to avoid cruises . Maybe by having a cure for coronavirus, maybe thats the only solution. The situation stinks for this group. These companies employ tens of thousands of people. Theyre great businesses most of the parttime. But they happen to be a Public Health nightmare during a pandemic if you are like me, you are actually boiling mad that this happened the other day, though, the cruise lines dont need to be bailed out if we whip this virus soon, the problem goes away. If not, somebody else buys their ships for a fraction of what theyre worth and it goes on again. How about the airlines they have been decked many times before, especially through 9 11 and they always come back. Although, a lot of that is because they tend to get bailed out. But the coronavirus, now in a stay at home economy where Business Travel isnt going anywhere, theyre video conferences with zoom. Im getting interested in that one. People are going on vacation and doing everything they can to avoid the airlines road trip time even airports give us the spooks, dont they they could still run out of money pretty easily if the outbreak lasts too long. I am confident the government will throwthem a lifeline. I dont know maybe they get no interest loans. Last but not least there is the oil patch. We want our oil and gas try to thrive so they with keep it national security. Sadly, most of these producers are way too levered. Many will have to reorganize the russians were eager to drive prices down to put our producers out of business. Thats an obstacle to them so the saudis turned around and did the same thing to russia this is a height of stupidity. They could bankrupt every u. S. Producer and it still wont make a difference no bailouts needed here while our Oil Infrastructure is indispensable, the Oil Companies themselves are not one reason why i think you need to avoid their stocks by the plague i dont want to be too much of an alarmist. If we get a cure for the virus, everything bounces back, all forgiven thats why i want the government to put itself on war footing to stop this outbreak without that, though, the cruise lines, airlines and oil, lets just say their Balance Sheets are going to crush it. I hope they catch a break. Unfortunately, they all need it. Take a break limu emu doug and now for their service to the community, we present limu emu doug with this key to the city. [ applause ] its an honor to tell you that Liberty Mutual customizes your Car Insurance so you only pay for what you need. And now we need to get back to work. [ applause and band playing ] only pay for what you need. Liberty. Liberty. Liberty. Liberty. There has never been to have a favorite food. With new grubhub plus you get unlimited free delivery and cashback rewards for ordering noodles, and noodles. And noodles. And noodles. Grubhub plus. Free delivery, cash back, and noodles. But when allergies and congestion strike, take allegrad. A nondrowsy antihistamine plus a powerful decongestant. So you can always say yes to putting your true colors on display. Say yes to allegrad. All right. Were getting closer after yesterdays savage beat down and todays bounce, i think you ought to think of doing some buying here. In order to make sense of this moment, were analyzing all 30 stocks in the Dow Jones Industrial average yesterday we found them pretty much wants except for apple and some cocacola they both made sense and i think city th they still do. The president and congress seem eager to get the economy unstuck. Last time we were on the verge of recession, december 2018, Congress Took action lets see what they do this time it is much tougher because that was a fed mandated slowdown, so it was you could just undue it this is a Public Health crisis im calling it a biological slowdown and the economy wont be able to rebound until the economy is contained or runs its course we need a lot of stimulus, which is why it is encouraging to hear we might get some. Lets review the next ten stocks in the dow, and its slowly more positive because when we came in on monday morning, we felt that maybe the president thought we didnt need anything so number 11, we did 10 yesterday, number 11 is goldman sachs. Managers assess whether or not the culture has changed. I think that whole discussion misses the point now, this isnt an auto maker or steel company. It is an Investment Bank goldmans book table 205 per share. Thats what you get if you liquidate the whole enterprise tomorrow thats an incredibly low multip multiple the mainstay of their trading business, theyve got the new apple credit card, which is apparently doing quite well from my sources now im itching to buy it back because, well, i think with the 2. 7 yield and that incredibly low multiple, its time. Stock really over reacted. Will they do the trading as well as they used to. When i was there in the 80s, no 12th is home depot were about to head into spring gardening system Interest Rates are so low, it makes a ton of sense to get a Home Equity Loan and refurbish many will go under thanks to the coronavirus. I think you have to leave room because the stock is at 225 in the bear market it traded 158 i say buy some here and leave room for buy lower levels if it opens up no i wish i could recommend this one here, but it is inexpensive. Lets think about what you can buy. Intel is a competitor to amd i like a Balance Sheet i just prefer its competitors which are both doing very well here they have a lot more going for it than intel. Wait for intel to come down more by the way, amd on thursday had a great day. No one seemed to think about it whats happened. 14th is ibm. This stock has collapsed to the point where it yields 5. 2 , a lot better than treasuries i think the Balance Sheet is not as bad as it was i think it deserves more respect. The new ceo. The company has a ton of referring revenue nobody is thinking about everyone is giving up on the thing. I think you should buy some for that juicy yield versus lowered expectations ibm is a buy 15th johnson johnson, the premier pipeline and the best balance of sheet of any Pharmaceutical Company its got a faster growth and more bountiful buy back. This Company Thrives on a weak dollar environment these levels, i think, we dont need to be as concerned. Buy some, buy some down. 16th jp morgan i could not believe that this Stock Plunged 14 points yesterday. I mean, thats crazy nearly 4 yield. The ceo is laid up with a heart proceedier and we dont know whats going to happen there sure they have some oil debt but im telling you it is manageable oil debt. This is not a banking crisis this is a biocrisis. So i wouldnt care about that Balance Sheet. No wonder it rebounded somewhat today. Strap yourself in because the banks are hated. Some people will refuse to recognize that jp morgan is a feed based revenue stream. If its up, no buying. If its down, start buying 7th is mcdonalds. You have the new ceo good guy he seems to be doing an excellent job. You have a great Balance Sheet you have a good Balance Sheet. I about reluctant to recommend them because i cant see why it would rally on its own especially with a pandemic about to lay waste to the Restaurant Industry the stock sells for 22 times earnings if it was at 18 times earnings, it would be a different. It looks lmerck ran out of gas this could be the largest growth ever wall street was unimpressed they thought there would be a relating of the stock up and they got un. It was just a relating lower i think the market judgment is too severe not great. You got my blessing to buy it if you need a drugstock and you dont like my j and j call because of litigation risk microsoft, now in the 160s even if its down substantially from its highs a month ago, which maybe makes it so its valuable here. How can we justify this move simple, microsoft is firing on all cylinders, especially azure. By the way, i love their Carbon Footprint going negative i am impressed they have gotten very good about knowing what the customer really wants. 22 times earnings is not exactly mouth waterings. You have my blessing to buy some here and again some lower because it was up so big today finally, there is nike, which is just about as expensive as microsoft. Thats with the stock already down 17 from its highs. Unfortunately nikei think has real earnings risk as we head into a global recession that may be averted but may not be. New york, china, united states, nowhere is safe for nike usually one of these markets might be funky, but rarely all of them at once. But thats where we are right now. I have no idea how this stock hung in there for mucher longer than possible. Im sure many growth managers are salivating over this they are like rabid about owning nike not me bottom line, i still think were headed for a coronavirus recession. With the possibility of stocks coming down, i want to be more constructive especially when we got some prop up tomorrow. Again, if you are going to buy something here, i dont want it to be if the market opens up big tomorrow that will be a sucker rally. Buy gradually on the way down because we dont know where another shoe may drop. With coronavirus it seems like there are multiple shoes out there. Riley in georgia. Caller thank you for taking my call. Well, ive been listening to you for a while. I know you suggested 10 of building your portfolio. With these crazy times, would you consider selling some of the stocks to raise more cash and put more than 10 in my gold look, i like at least 10 gold i think gold is absolutely terrific they put together an Amazing Company and ran the numbers are incredible the dividend is good the Balance Sheet is good. Paying down debt he increased the dividend and he knows how to deal with even the toughest situations. Remember, hes got a lot of gold out of africa right in the middle of the ebola crisis sure, we may be headed towards a recession. Im not denying that its because of the coronavirus. Well, the government action, at least is more constructive than 24 hours ago yes, it does matter. You have some real good opportunities here, but please gradually and not if it opens up much more mad money ahead, including my exclusive with dexcom remember, that is the least Economic Sensitivity and it is about diabetes, which of course the coronavirus seems to attack. Dont make a move. Then, whats next after yesterdays dramatic drop . I want to go to the source shes been dead right about oil. And rapid fire in tonights edition of the lightening round. So stay with cramer. Apps are used everywhere. Except work. Why is that . Is it because people love filling out forms . Maybe they like checking with their supervisor to see how much Vacation Time they have. Or sending corporate their expense reports. Ill let you in on a little secret. They dont. By empowering employees to manage their own tasks, paycom frees you to focus on the business of business. To learn more, visit paycom. Com doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. This market keep searching for stocks that are holding up surprisingly well, stocks that should be immunized against the coronavirus virus. Which brings me to dexcom, thanks to their continuous glucose monitoring, the device that keeps track of your blood sugar without the need to constantly draw blood with one of those finger stick tests. The stock is giving you a 370 plus gain over the past five years. While it is not 9 from its high thanks to the market break down, it is still up 20 since the time we spoke to them in midjanuary. We told you buy because misunderstood what they were saying it is one of the Rare Industries where you can wait out the pandemic they are uniquely well positioned but dont take it from me. Lets check in with the president and executive chairman and ceo of dexcom. Welcome back to mad money. Goodto see you again, jim. All right all right. Okay first of all, when you are on last, people actually thought that somehow you had disappointed, which was completely untrue. No. And since then, things have just seemed to have gotten better. They have its been a great run for us and things continue to go very well at the company. One of the things thats really impressive, Morgan Stanley will love this, it is called transcending the top line into bottom. What its about, your Gross Margins are going up some people thought other companies were nipping at your heels. If thats the case, your Gross Margins would be going down, not up you are making more money per device and going incredibly well with what you have. We have seen for a long time that pricing would come down as we went across the Broader Market so we designed or Manufacturing Products so they become less expensive to build as we get more volume. Were seeing results of that on the cost side. We have held firm with prices because the features of our product are different from our competitors. So far those who pay for the product are willing to pay more. You brought a product you brought something new. I want to know about it. This is something thats not been launched yet. Its called g6 pro we put a transmitter and sensor in the same box. It will be sold to a Health Care Professional as you walk in, we can put it on patients for diagnostic purposes one of the things were very excited about is this is not just labeled for people with diabetes it is labeled for all people. Wait a second why . For health and wellness or somebody in a prediabetic stage, lets see what is happening here a patient can wear it in a blinded mode where they dont see any of the data and the doctor can look at it and check on things like, are you taking your meds . Are you going with a routine are they can wear it in a mode where they see whats going on and can learn about themselves its the first time we have had the opportunity to give a Patient Experience where they can try it before they actually have to buy the product. Ill tell you and you are aware, we keep hearing over and over again from others that Diabetes Risk is one of the things that makes it so that coronavirus unfortunately is more devastating why wouldnt people come check this out well, we hope they all do and it will be launching here in the next couple of months. So you get a preview before it is on the market. Do typical physicians know about this or will they refer you to someone they will be able to write a prescription and purchase it from us. But it is a trial or you can just get it if you like it . You get it through your physician. But thats where were selling it to begin with ultimately, this is the beginning of what we believe will be the revolution in diabetes data where people will use these devices not only for ins insulin delivery, but to help health and heldness where you can see your diet is working. You have a lot of fans. And one of them whose son has diabetes was saying to me, okay, look, why cant why do you have to have tandem, which we have on air, who make the tandem pump interact with you they want you to make it they think that you are a reliable brand they didnt knock it theyre saying, hey, a closed loop system would be such a joy. Can you give it to customers we have chosen to focus on a gl glucose management system. We have used a glucose Management Market as a much bigger opportunity for us. It will go across all of health care, type two diabetes. Thats the opportunity were purs pursuing we have great partners now and others coming in the future that we have helped our growth has been so rapid and we have had to work so hard to control it, we have grown this as fast as we can. When you speak to managers, do they say, look, im looking for something with no coronavirus issue, it has no Economic Sensitivity we are actually economically sensitive to patients insurance needs and how copays fall in and stuff like that. But, no, people are always going to have diabetes and people who rely on this technology cant give it up thats why we take this coronavirus stuff very seriously and were putting all the typical procedures in place, other companies are as far as meetings and travel and everything we cant go down people depend on us. No, they do i know you had that one outage, but you fixed it very quickly. If you think you have diabetes, oh, my, this illness is unfortunately after you. Yeah. It could be horrible. Absolutely. Thats the president and executive chairman, ceo of dexcom there were some people that thought there was something wrong there and we pounded the table. This remains one of the great stories. Typically even in this time when we might have a coronavirus recession. Mad money is back after this [ indistinct talking ] a new kind of investor is changing things up. With an app thats changing the way we do money. Download robinhood now. Hey frank, our workers comp insurance is expiring, should we just renew it . Yeah, sure. Hey there, Small Business owner. Pie insurance here with some sweet advice to stop you from overpaying on workers comp. Try pie instead and save up to 30 . Thirty percent . Really . Get a quote in 3 minutes at easyaspie. Com. Wow, that is easy. So, need another reminder . No, no no, im good. Uh, yes please. Oh. Ho ho ho, yeah need workers comp insurance . Get a quote in 3 minutes at easyaspie. Com. Announcer lightning round is sponsored by Td Ameritrade [ bell ringing ] it is time. It is time for the lightning round. You say the name of the stock. I dont know the calls or the name of the stock ahead of time. I tell you whether to buy or sell. When you hear this sound [ buzzer ] then the lightning round is over caller hi. Im a new investor in my early 20s. Im originally from philadelphia go birds i notice passengers on the subway since the virus hit i was hoping to add uber to my portfolio. Right well, we understand that uber has had good and bad the good is that absolute ly there is a lot less travel and people working from home i think uber is a push i like the stock shorter term. But longer term, long it can make the numbers lets go to jenelle. Caller hi. Thanks for taking my call. Ytf, is it a buy now enough risk already id rather have chevron. Lets go to frank in new jersey. Frank . Caller hey, jim. How are you, buddy hey, man. These are struggling days, but im doing by best just long days for you. Thigh are long days they start at 3 00. Caller et, babe. How do you like it no. That whole Pipeline Group is so under pressure maybe it bounces maybe it doesnt tyler in mass cachusettsmassach caller im 25 years old, so im thinking strictly longterm here what are you thoughts on lifelock i like the company. He did that. I think its a winner. And its down a lot. That is a special dividend i need to go to john in florida. John caller booyah whats going on caller hi, man my stock is down 40 im talking about immune therapeutics aint. Speculative i dont mind if you want to own it thats okay with me. And thats the lightening round [ buzzer ] announcer the lightning round is sponsored by Td Ameritrade can we go get some ice cream . Alright, we gotta stop here first. From smarter atms, to after hours video tellers comcast business is connecting thousands of banks to technology that turns everyday transactions into extraordinary experiences. Hi there. How are you . Do you have any lollipops in there . laughing no, sorry. Were helping all kinds of businesses go beyond customer expectations. How can we help you . Got a special treat tonight. Find out whats next for oil after yesterdays horrifying crash. The price of crude took a 10 bounce today you need to do everything you can to take emotion out of the equation thats why tonight we thought, why not bring in carly garner. You heard about it a lot of times from our show. Shes our cofounder of car lie tra trading. Get a technical read on the situation. Welcome back to mad money. Thank you it is a pleasure. All right lets go to work. All right sounds good. So up front, full disclosure, i have been a broker since 2004. I have been in the commodity business for a long time i thought i had seen it all almost i learned on sunday night when the futures market opened and crude oil just collapsed that i have not seen anything yet so this is a rough time for the brokerage industry it is hard to manage risk. Hopefully we can take some of the emotion out of it, look at the logical aspects of the markets and the charts so lets start with this is west Texas Intermediate Crude Oil what does crude normally do this time of year actually, it tends to bottom this time of year. Seasonals are tricky it is not perfect. Sometimes early. Sometimes late im hoping this year it is a little late. I havent given up on it yet, though next, natural gas. The natural gas chart is similar. It tends to bottom right around in march so natural gas is actually on time today we had a nice bounce hopefully that continues we will talk about a few reasons we think it might continue but so far natural gas is on schedule i just wish it wouldnt have gotten so cheap before it started. Next chart, please so we talk about the co2 report a lot and you talk ability out a lot. It is basically issued by the Commodity Futures Trading Commission and it tells us a couple of things, where speculators are positioned, how long they are, how short they are. What we look for in crude oil, crude oil specs have been net long for years and years if you remember 2007 2008 cried oil was trading around 150 and everyone was calling for 200. Im convinced a bunch of people bought at the highs and are hanging on and rolling over. Those people bought and maybe they capitulated well, i think a lot of that is part of it, yeah. The buying dries up and then it turns around. That would be very bullish. Im talking about in 2007. Thats might what have happened here. I think the opposite happened here, absolutely, yes. So 2007 price is around 150 everybody wants to be long and they have been ever since, hone honestly now were looking at a situation. In crude oil we dont necessarily look at how whether theyre long or short because everyone is always long. Were looking at how much. If you notice, this is last fridays report. About 400,000 large specs were net long the market. Usually when this figure gets down to about 300 net long is when the market bottoms out. You saw it here. You saw it here. Right. Usually we get a pretty good rally out of it. Okay. Were looking at 400,000, but these figures were before this latest drop. Tell me so i get this what are we saying right here . So right here, being in the brokage industry and seeing what i saw, these people were selling because they had to. They were out of money they had margin calls. Okay. They didnt know what else to do. But thats capitulation buying. Thank you, yes. Thats what im thinking happened unfortunately the problem with speculation, whether stocks or commodities, it happens unfortunately a lot. When you get that, when everybody runs out of money and they cant take it anymore, thats usually when it turns around i think thats whats going to happen. Thats not so bad. Next chart, please. Natural gas, we have an opposite situation. Theyre hanging on to the largest net spec short position in the history of natural gas. I have been pointing this out for a couple of months we havent budged yet. If you drop drilling, it will produce an opportunity to spike because its a byproduct. Correct when it comes to this sort of stuff, these speculative markets, sometimes fundamentals dont have to change at all. Maybe all we need is just everybody thats short decides it is time to get out when they cover their position and unwind it, the market goes up sometimes it happens despite bearish fundamentals you just never know. Okay. Next chart, please. I always look at the currency market when im looking at commodities. The reason being the dollar in crude oil or the dollar in commodities are generally inversely correlated the last couple weeks its been the opposite they have been highly correlated were seeing dollar and crude oil off. Its really because everybody is selling everything it is one of those environments. Eventually that will have to change this drop alone probably means crude oil should be in the 40s, not the 30s just because of the currency differential. If the dollar continues to sell off, which i think it might, at least down to the 93 area, but im thinking were looking down here if you think about it, the dollar has been benefitting with the feds taking action last week and potentially soon again the dollar no longer has that Interest Rate differential we could see an earlier slide in the dollar, regardless of so far you are painting a very bullish picture. I am. I think thats where were going. Youre saying its bottom which in that case is a lot of stocks that are really maybe not as dangerous as i have been saying. Well, you have been calling i mean, lets not you have been right. They have had a rough week now at these levels, i think theyre probably a good, attractive buy this is a chart. We have pointed this out a few months ago on mad money. We have been pointing out support of 50, 22 and then 26. I did not expect this. Oh, yeah. I mean, i didnt my take was that this was going to be taken out. I did not expect it to happen it happened. I certainly didnt expect it to happen the way that it did now that were here, there is a pretty good chance that we have probably seen the lows my guess is we might run some more stocks under here at 22, 24. Right. But in the long term, i think were probably heading right back up. All right all right. Well, im going to leave it at that, carly. But i will tell you that you made a compelling case with dollar and with natural gas and with that that we may be near or at the bottom. My only reservation is it may not reflect in the stocks because the stocks have different that could be absolutely true. That is terrific. Thank you so much. Cofounder of the carly trading. Stick with cramer. Do you have concerns about mild memory loss related to aging . Prevagen is the number one pharmacistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Dont just plan to retire. Plan to live. An annuity helps cover your essential monthly expenses, so youre free to live the life you want. Find out how an annuity can give you Lifetime Income at protectedincome. Org good news, there are now some tech stocks that i think can be worth buying on the way down the bad news is, as long as this virus rages, so much of the market remains off limits. And you are getting a bounce of which you might want to be able to liquidate those stocks that are unfortunately trapped by the coronavirus. Remember, i do think we will have a lot of profit takes and thats your opportunity. Theres always a bull market somewhere and i promise to find it for you right here at mad money. Im jim cramer see you tomorrow our special market tomorrow starts right now. Im scot walker. This is day 72 of the Coronavirus Crisis and just in tonight google telling its north American Employees to stay home. 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