nasdaq rising iing 2.5%. but the common reframe over the last week is stunning, remarkable. the operative term for this rally is bogus as in the rally is one gigantic bogusity about to unravel at any second or even started unraveling today if they are willing to acknowledge there's been a rally at all. since most of the people who watch this show own stocks and are decidedly not professional short sellers, i'm sure you're wondering how could any rally be hated? what's the deal? why not embrace higher prices and celebrate? why not get in rather than disit from the sidelines? when stocks go up what the heck is not to like let alone actually despise? maybe we ought to spend some time analyzing this. this point of view i keep hearing simply because it will enliten you. this used to plague me and hurt my performance and made me not make a lot of money until i realized how the stock market really works. let me demystify the big objections to this rally, the things that make people so angry about the fact that stocks are going higher other than the fact they don't own enough of them. first people don't believe a rally deserved to happen when there is so much misery all over the place. we have almost no employment growth, not a lot of new construction, no major infrastructure programs. it feels like you can count on one hand the number of new factories. globalization crushed us. it just doesn't seem possible that this level of employment can sustain the current levels of stock prices. two things wrong with this. first off this rally actually began when our jobless claims started to go down ever so slightly. you may not think it decreased, 30,000 to 40,000 claims, that that matters. this market is all about analyzing the trajectory of things. the trajectory here has most certainly gone positive. second, we're not trading jobs. we're investing in stocks. they're absolutely not the same thing. you want your stock to go higher? sell more product with fewer people. firing not hiring often gets your stock up if you don't have a lot of revenue growth. that's not the problem that google has. but take one look at sysco. what's moving that stock? i think frankly the big driver is the restructuring. many layers of management taken out. that's how they did it. same with pau gasrocter & gambl long ago. firing can be more effective than hiring when a company wants to show solid earnings. we don't say the earnings were done with fewer people. we don't asterisk the returns. don't confuse the issue. the second objection to this rally. this one is obvious. europe is horrendous and it remains horrendous so what's the deal? okay. it's true we have yet to see firm agreements to bail out spain or italy or any other countries. we haven't seen any growth initiatives either. we have seen dramatic increases in the stock markets of europe. a pretty big deal. stocks are a leading indicator especially when the mess they are in europe. i look at this stuff. i get up early. what can i tell you? i'm a junkie for it. germany, the markets are up 18% in their own currency. french market is beating the dow-jones average for the year. same with sweden and switzerland. netherlands is tied with the dow. italy was supposed to be on the verge of collapse and is barely down. if the european markets are doing so well why the heck should our stock market be kept down by them? if germany is up 18% with that negative data shouldn't we at least be even with them? and not way behind them? we are way behind germany. european lamentations begin to get lost on me. you can't dismiss these kind of gains. the stock markets are europe are shrugging off their own woe so at the very least we should be able to shrug off some of their woes. what about washington? right now president obama looks like a winner. i'm just doing analysis. isn't romney supposed to be better for stocks? doesn't the fiscal cliff loom at the end of the year? to me obama is a known quantity and believe it or not the stock market has actually quite done quite well under him. people want to quibble but there is a number. maybe you think a 66% return for the s&p 500 is disappointing. ah. a couple say no. the fiscal cliff? i don't know. a year ago we were worried the federal government was going to default. i had people stopping me on the street asking if the government was going to stop sending social security checks. we were quaking in our boots. i was at eagles training camp and the players were asking are they going to downgrade us? what's really happened? we didn't default. everybody got their checks. we got downgraded but our bond prices flew up anyway. interest rates plummeted. now you're asking me to worry about the fiscal cliff? please. we got a cliff. cliff mason, my nephew and also head writer. then there is the mischief factor. how can you like a market where prices can't be trusted? a week ago some software program on crazy prices were way off the market. we've got banks hiding mexican drug money. iranian terrorist money. the cartel. they're all replaced. we got banks fixing livore to which i say so what? so what? what are you a prosecutor? you want to immunize yourself against this nonsense go buy the stocks of companies with good dividends that are well in excess of the yield you get from treasuries and that have a chance to boost those dividends. they can say the heck with the mischief. you're buying triple-a companies. but good companies with good balance sheets, good dividends, good growth prospects like the ones we talk about every night here will prevail no matter what. dividend money in your pocket is money regardless of money fixing, mondy laundering or bogus. you can sit there waiting for the fed to take action before you buy stocks. oh, please. the fed has already told you the competition to dividend stocks, the bond markets, won't generate much of a return for years because rates are going to stay well into the end of 2014. that's it for stocks period. why wait? by the way, the stock market has hijacked washington. it doesn't care about the bid. that's just something people talk about because it's there to talk about. finally there are the fundamentals. we kept hearing how the companies that just reported shouldn't be going higher because while many might have beaten the earnings estimates those estimates were lower. what is the big deal? plus we keep hearing things got worse at the end of the quarter for many companies. do not misunderstand. even if the numbers were just cut, the stocks of the companies that beat them will most likely go higher like the huge gains we got in stinkers like alpha natural resources and health scripps solutions. decidedly hideous but better than expected reports today. love it hate it. that's the way it works. i didn't think it was right. i remember saying in 1988 it's not fair. fair? fair. silly. but we've heard it over and over again. retail sales, housing, autos all doing better. that's what matters. i got news. retail sales, housing, and autos are the u.s. economy. of course we can wait until we hear that employment is booming. we can wait until europe's turn. until the earnings are on fire. on the fiscal cliff. the fed has made its move. the bell goes off right? doesn't some bell go off and let us buy stocks? guess what? when the bell goes off it'll be time to sell not buy. the market anticipates good news. doesn't just wait for it. you got to buy when things are most at risk not least at risk. that's the way the game is played. always has been and always will be. here's the bottom line. hate it, like it, dis it, feel whatever you want but this market has been going higher and it can go higher still. and if this market were loved by all, believe me, the rally would most certainly be over. stafford in oregon knch hey jim how you doing? >> real good chief. how about you? >> caller: good thanks. my question is with the recent fire at the oil refinery run by chevron down in california i know the price of gas is going to go up. is this a good time to buy oil stocks such as chevron because of the fire? >> don't matter. you can say the refineries will have a short boost. look, it's the best growth of the majors. that's what you got to care about. the future not about a refinery issue. chevron has some chart. what a stock. let's go to brad in refinery hard hit california. brad? >> caller: thank you for the beneficiary of your philadelphia phillies. my question pertains to macy's. how do you view momentum going forth from this point and compared to nordstroms? >> yeah. i don't know. you kind of lost me with that phillies thing. nordstroms had a good quarter after the bell. it was better than the phillies. more like grace. but i got to tell you i think macy's is cheaper than nordstroms and i want to buy macy's on any weakness. you know, did you have to hit me with the phillies? bad enough. haters are going to hate. but why would people hate this rally? i mean look. it's not some team that you hate because they beat your team. it's a team that maybe you want to think about joining. "mad money" right back. coming up, power position? american electric has surged over 20% in the past year. tonight cramer sits down with the ceo to find out if this play of the domestic electric grid could keep you fully charged in the event of a european induced blackout. and later, fueling the recovery? energy prices have been on a rollercoaster ride in 2012. tonight cramer is looking for answers on the future of natural gas when he talks to the man mitt romney named his energy adviser. >> this guy understands energy, as many do not. >> jim's earnings exclusive when continental resources ceo harold hamm is just ahead. all coming up on "mad money." don't miss a second of "mad money." follow at jim cramer on twitter. have a question? tweet cramer. hash tag mad tweets. send jim an e-mail to mad money@cnbc.com. or give us a call at 1-800-743-cnbc. miss something? head to mad money.cnbc.com. [ male announcer ] this is rudy. his morning starts with arthritis pain. and two pills. afternoon's overhaul starts with more pain. more pills. triple checking hydraulics. the evening brings more pain. so, back to more pills. almost done, when... hang on. stan's doctor recommended aleve. it can keep pain away all day with fewer pills than tylenol. this is rudy. who switched to aleve. and two pills for a day free of pain. ♪ [ female announcer ] and try aleve for relief from tough headaches. i look at her, and i just want to give her everything. yeah, you -- you know, everything can cost upwards of...[ whistles ] i did not want to think about that. relax, relax, relax. look at me, look at me. three words, dad -- e-trade financial consultants. so i can just go talk to 'em? just walk right in and talk to 'em. dude, those guys are pros. they'll hook you up with a solid plan. they'll -- wa-- wa-- wait a minute. bobby? bobby! what are you doing, man? i'm speed dating! [ male announcer ] get investing advice for your family at e-trade. over the last week, big volleyball style rotation into the more aggressive retail stocks. for the first time in a long time people suspected things might get better not worse. both in europe and the united states. you should still keep a parking space in your portfolio for something safe just in case something goes wrong and we come tumbling back down. it's happened many times there is nothing more than owning a utility. the largest electrical transmission system in the company, american electric power, aep pays a hefty 4.33% yield. 2.4% to the new high. thanks to the ohio public utilities commission which last night approved a plan allowing the company to raise rates in 2015. not only does this ruling add about 14 cents per share for the next four years but also removes the uncertainty that had been hanging over this otherwise steady company. now the stock has given you 11% returns since the last time we spoke with the ceo on june 6th. better than expected quarter three weeks ago. aep is still cheaper than the average utility and has faster growth. let's talk to the president and ceo to learn more about this ohio decision and the company. welcome back to "mad money." good to see you. i think a lot of people don't understand heavily regulated business where the regulators can actually determine your earnings per share. you had told me this was going to be a big rule. i had no idea it had this big an impact and go from hold to buy. walk us through the way your business were urging people to ahead. >> in ohio they're moving to competition, deregulation, and we need to know what the transition was going to look like. we also need to know how long it would take and would they view the company's financial integrity as important? and it shows the present order showed that yes they are looking at those types of issues. we're not through yet. we have a couple issues we need to get through including the approval to separate our generation out into an unregulated entity. this is a good first step. >> is the idea to have a separate company that would be the unregulated entity? is that ultimately where you would go? >> yes, a separate company. part of the aep umbrella of companies but separate from the wires company. typically that's what happens in deregulated markets. >> now, people are a little confused. they see coal in price -- they see natural gas. they probably wonder why is my bill, why have they allowed my bill to go up in american electric power area rather than let the market decide it should come down because of natural gas? >> well, certainly there is a structural issue associated with regulated utilities. >> right. >> obviously you have a cost impact associated with the equipment that you build. all the fuel costs associated with it. in regulated jurisdictions typically you recover your cost on an ongoing basis. in the deregulated environment it depends on what the market is. so at this point customers certainly want to be able to have that choice in ohio and that is the process. customers can decide what supplier to use and as well using the same wires company but from a supply perspective deciding which supplier you use. >> even within your own company they could do that. you could have a merchant provider and the regular. >> absolutely. >> go ahead. >> i wanted to make sure we're still a regulated utility. >> right. >> so i want to make sure that we're 84%, 86% regulated, 14% unregulated. when we get through with this corporate separation in ohio. so still substantially regulated. the dividend is still secured by the regulated entity. so it works out pretty good for the company. >> i think people don't understand the immense amount of money have had to spend. >> absolutely. >> that has got to be the single biggest exponent, cost factor for you guys. >> we spent $7.2 billion in the last few years putting scrubbers and sdrs on our equipment, basically through knocks and socks from emissions. we have another 6 billion to spend as a result of the epa rules. >> and how far are you in terms the amount of emissions versus where you were five years ago? >> we reduced over 85% of the sulfur dioxide and nitrous oxide emissions from our power plants so we've come a long way. the mercury is 85% from that. so substantial reductions already. we're spending another 6 billion to chase the other 10% to 15%. we have a law of diminishing returns right. but you have to do it. >> yes. >> now, the key factor that i've always found for these businesses is that a certain point the economy actually gets better and you get more people -- now your area, ohio, your area has been okay but it's getting better isn't it? >> it is getting better. we're seeing industrial growth continue and then also our commercial growth for the last quarter improve for the first time in years. as i said earlier when we talked the sustainable activity of the industrial sector drives the commercial growth and then the residential will follow. as we have that improvement it increases that denominator so you can have increases -- can't have increases and not so up as such on customers' bills. residentials are still down. it'll take time because the more you see the sustainable industrial growth and the commercials follow then job creations occur. what we are seeing is job creation is ahead of the national average so we're about 2% increase in jobs over the last three months. it is starting to come back. optimistic. >> and the last thing i know, it's an important decision, but this kind of ohio ruling does make it more likely we should see a higher dividend. >> i think we've always said our dividend is going to be commensurate with the earnings growth. so as long as we get past this order, get the additional clarification associated with separation of generation and move on during that process, then we should be in better stead to make those kinds of decisions. >> terrific. this is a good one. nick aikens president and ceo of american electric power. area business getting better, commercial better. residential will follow. a lot to like here. i think the dividend is going to go higher. stay with cramer. coming up, fueling a recovery? energy prices have been on a rollercoaster ride in 2012. tonight cramer is looking for answers on the future of natural gas when he talks to the man mitt romney named his energy adviser. >> this guy understands energy as many do not. >> jim's earnings exclusive with continental resources ceo harold hamm is just ahead. okay, here's the plan. you have a plan? first we're gonna check our bags for free, thanks to our explorer card. then, the united club. my mother was so wrong about you. next, we get priority boarding on our flight i booked with miles. all because of the card. and me. okay, what's the plan? plan? mm-hmm. we're on vacation. this is no plan. really? [ male announcer ] the united mileageplus explorer card. the mileage card with special perks on united. get it and you're in. you know what i love about this country? trick question. i love everything about this country! including prilosec otc. you know one pill each morning treats your frequent heartburn so you can enjoy all this great land of ours has to offer like demolition derbies. and drive thru weddings. so if you're one of those people who gets heartburn and then treats day after day, block the acid with prilosec otc and don't get heartburn in the first place. [ male announcer ] one pill each morning. 24 hours. zero heartburn. to experience the lexus performance line... including the gs and is. [ engines revving ] because control is the ultimate expression of power. [ revving continues ] ♪ during the golden opportunity sales event, get great values on some of our newest models. this is the pursuit of perfection. when it comes to earnings you should never shoot first and then ask questions later. you need to take your time. read through the entire earnings release. listen to the conference call then make a decision. if you trade like the types who only look at the headlines more often than not you'll get smoked. case in point look what happened today with continental resources. domestic oil producer a huge player in the shelf in north dakota the largest u.s. discovery since the 1960s. last night continental reported what looked at first glance like a serious disappointment. cutting earnings to 68%, revenues did rice 34.6%. they still came in $30 million shy of expectationings. the numbers were perplexing. immediate response? continental resold off hard in after hours trading. this morning it opened down 63 cents. if you took a deeper look at the quarter and did some home work you'd realize the sale of the stock was a huge mistake which is why continental quickly jacked, closing up. there are more important metrics here like production. continental resource has achieved an astounding 76% for the quarter, 90% growth in the pocket. this wasn't a perfect quarter. north dakota is increasing the expense of operating. continental had to boost the capital venture by $3 billion. spending more. despite the misleading headlines it was a good quarter with a huge amount of promise ahead. let's check in with the chairman and ceo of continental resources and also mitt romney's energy adviser to get a better sense of where his company and the industry are headed. welcome back to "mad mon." >> good to be with you today, jim. >> you had an astounding production growth. you have often talked to us about the shelf being bigger than anyone thought. no one believed there was even oil there and you were drilling. are people starting to realize the shelf is as big as you promised? >> they certainly are, jim. you know, when you were up there we were doing a show from a four well pad. now there are 12 well pads. our company has a 14 well pad. pretty soon you'll see 16 well pads up there so the field is expanding both vertically and geographically. it is still getting bigger than we thought. >> now a hundred thousand barrels a day. never thought it could be like that. it doesn't seem like that is about to pbe the top at all. >> it's beyond our imagination for sure. and, you know, the numbers have come pretty quickly. you know, now we should see a lot of quick expansion going on from here as we go into pad drilling, about half the rigs are out there drilling eco pads at this time. >> you predict north dakota will be one of the top producers in oil when everyone thought it was ridiculous. it's passed almost everybody hasn't it? >> yeah. it's grown faster than anybody thought. now it's second in the u.s. it's phenomenal growth. >> you also talked about other -- this is the most bullish i've heard you about other areas you've got going. apparently some areas where it looks like you'll make a lot of money. >> one of the hot areas is of course the woodford. we've been involved in woodford for several years. first in the basin and now the other basin and we've gone into an oil rich area and certainly it's doing great things there. we're very excited about it. we're going to talk a great deal about that at our investors' day here october 9th in oklahoma city. >> looking forward to that. now one of the things that i thought people should understand is it's not like you are -- you are letting yourself be caught by the vioil market. your cost per barrel, differential is gigantic isn't it? >> yes. the differentials, you know, that's a vast opportunity for us. as we get infrastructure built up there to bring those differentials in line. so that's something we're focused on and you'll see a lot marketing effort go into that for the company the next several years. >> when we were up there last year there weren't enough rail lines, there weren't enough pipe lines to get the oil where it needed to be both west and east. has that improved in the last 12 months? >> it has improved. a lot of the rail lines, facilities are being built at that time and now we're seeing them operational and shipping oil to both coasts, all of the coasts from there and from there you can get world oil prices. so it's quality oil, premium oil, and sought by the refineri refineries. that is where we need to get the oil to. now we're seeing pipe line installations begin to be approved and we'll see those going in quickly as well. >> you've taken on the job as being the, also the oil man, the oil czar for presidential candidate mitt romney. what have you been able to get him to be able to do he may not have realized before you got involved? >> well, governor romney is very intelligent about energy and could probably teach me a few things. but he realized that our country, our nation is oil rich. you know, and natural gas rich. energy rich. we'll be a super power for sure. for a lot of decades to come. you know, the world's largest natural gas producer already. and certainly the second largest oil producer. a lot of people don't realize that. so we've got a lot of work to do here. you know, if we're going to get to energy independence. that is the first thing we need to do. i think everybody realizes that. the governor has tuned in on it for sure and wants to accomplish that. that's where we're headed. he thinks a lot about natural gas. you know, somebody mischaracterizing recently and said i didn't like natural gas. i like natural gas. i just think the valu-rite now is with oil as far as our company is concerned and that's been the case. but natural gas is clean. it's abundant. 30% of our production is natural gas. that's going to be a lot of the future of america and certainly is going to help us get to energy independence. >> all right. well that was me questioning because i want to see as you know i play with an open hand as i did last year. i want to see natural gas as a major surface fuel, vehicles in this country in order to smash opec. get the skies cleaner. and make it so we are energy secure. does the governor share that vision? >> he does. you know, he wants to see the market place do that. natural gas very cheap. we're seeing a lot of conversions occur. and the markets certainly getting that and they're making that happen. and he believes that should happen and we're seeing a market place work like it should work. >> all right. do you think that we are within the next five years looking at what your company has done, what eog has done, do you think it is possible our economy not our country but continent will not have to be an importer of opec oil five years from now? >> well, we're getting certainly could get close to that. i've said in ten years. north america could be energy independent. of course we've got most of the oil right now from our neighbor to the north and certainly some of from the south. that'll grow in the north, diminish in the south we think. but five years i don't think we'll be using a whole lot of mid east oil if we don't want to. certainly we'll be, all of us will be more secure. >> boon pickens has been very vocal, on the show a number of times suggesting if washington would get behind his natural gas act which would help subsidize companies to be able to use engines, long haul trucks, 25% of our imported oil goes to those, if we could speed up our energy independence and make the nation energy secure would the governor be in favor of boone pickens' natural gas act? >> i think the governor wants to see the market place work. it's working. it doesn't have to be sped up considerably. it's going to get there on its own. and as long as natural gas is cheap and abundant like it is, the energy supply out there, we'll get there pretty quickly. so i think instead of the government being there picking fuels of choice, the market place needs to do it and it certainly is capable of doing it and is doing it. >> okay. if we do not get a national pipe line system that right now seems to be a little bit bottled up and not supported that much by washington, isn't it likely that both our natural gas and oil will be exported if we do not have it to be able to go to where the refineries are that it can be used by the american people? >> yes. we need the infrastructure system. it is required. you know, it's the largest oil field in the world that doesn't have a primary pipe line serving that field. you know, we've had patchwork of pipe lines that we've had to depend on. and it puts us at a severe disadvantage. we need the pipe lines and certainly have to have those approved and get where we move oil across america to be efficient. >> how many people will you put to work if we build that infrastructure? >> i didn't hear your question. >> how many people will you put to work if we did what you just said? >> gosh, while it's in construction jim we're going to put a whole lot of people to work. i've heard numbers up to 200,000 people. i don't know if that's close or not. certainly it's going to be a lot of numbers running five or six spreads of people working and building the pipe line across the country. >> i'm mr. pappel from eog. i know he is a friend and you would argue a real good oil man. he would argue that eagleford is bigger than bakken. is it possible? >> you know, we may see the eagleford in production filled up to as much or even exceeds the backen but you just don't -- it's not that large and we won't see it over time be as big. but it's a nice play. there is no doubt about it. it is a very nice play. and, you know, we've got two or three in america doing the job. the permian is more conventional. that production is coming up. the eagleford is the other one. and certainly the bakken, you know, probably the kingdom hall. >> you were a visionary. you saw it. no one else did. congratulations. congratulations to your share holders for unbelievable returns for sticking with you. thanks so much for being on the show. >> yeah, jim. always good to be with you. thank you very much. >> real oil man making real money for you. continental resources not done. unbelievable find in the bakken. no one believed it except for him. stay with cramer. coming up the clock is ticking. call cramer at 1-800-743-cnbc to find out how to fire away at cramer on the lightning routght. can you with stand your thunderous onslaught of stocks? and later how duerr stocks stack up in a mystifying market? cramer makes sure your portfolio makes the grade on am i diversified, all coming up on "mad money." something you're b. and inspires the things you choose to do. you do what you do... because it matters. at hp we don't just believe in the power of technology. we believe in the power of people when technology works for you. to dream. to create. to work. if you're going to do something. make it matter. it's got that sweet honey taste. but no way it's 80 calories, right? no way, right? lady, i just drive the truck. right, there's no way right, right? have a nice day. [ male announcer ] 80 delicious calories. fiber one. [ male announcer ] this... is the at&t network. a living, breathing intelligence teaching data how to do more for business. [ beeping ] in here, data knows what to do. because the network finds it and tailors it ross all the right points, automating all the right actions, to bring all the right results. [ whirring and beeping ] it's the at&t network -- doing more with data to help business do more for customers. ♪ it is time. it is time for the lightning round. we play this sound and then the round is over. are you ready? speaking to robert in new jersey. >> boo-ya jimmy. >> boo-ya partner. >> i want to know if i stay light and mobile? my sto today is m.m. >> i was with the ceo today. i like the stock very much. let me tell you something. this reminds me of ad sensor double click. we bought it and it will be bought by facebook or google within the next couple years. i want in on the stock. vick from my home state of pennsylvania. >> caller: in beautiful bucks town. like my friend, tom mcgrath. good to have you on the show. what's up? >> i absolutely love being part of your studio audience a couple weeks ago. i want to say thank you to you and your staff. i had an awesome time. >> my staff makes me look good every day. what's up? >> what do you think about the vanity plate --? >> i'm surprised it wasn't doing better. i thought the quarter was fine. i believe in david pyatt. this is one of the few times you can buy allergen at this price. i'm going to say go ahead and buy it. >> boo-ya, jim. yoku. >> if you said yahoo i would like it. yoku i don't like. i am not going to recommend any chinese stocks. the people's republic of china doesn't even have an s.e.c. of any sort. i'm going to dino in florida. dino? >> big boo-ya from florida. >> nice sunshine. what's on your mind? >> i got a call and it's about $16. what do you think? >> piper and goldman recommending the stock today. too much for me to believe we don't have a -- i think we can trade this one to 19 ahn then, sell, sell. i need one more call. massachusetts? >> boo-ya to the oracle of wall street. >> well thank you. back at you. >> my stock is a nice source. i've been buying it for two years and making a pant load. when should i get out? >> no man. no reason. it's fabulous. i mean, that's my friend, matt, one of his favorite utilities. 2.8%. i think you're good to go. i don't want you selling that stock but buying that stock. it's a buy. and that ladies and gentlemen is the conclusion of the lightning round. tools of wall street and make them simple, intuitive, and available to all. distill all that data. make information instinctual, visual. introducing trade architect, td ameritrade's empowering web-based trading platform. take control of your portfolio today. trade commission-free for 60 days, and we'll throw in up to $600 when you open an account. and sounds vying for your attention. so we invented a warning you can feel. introducing the all-new cadillac xts. available with a patented safety alert seat. when there's danger you might not see, you're warned by a pulse in the seat. it's technology you won't find in a mercedes e-class. the all-new cadillac xts has arrived, and it's bringing the future forward. over the past few weeks, starting to see optimism prevail in this market. seen glimmers of hope. nice isn't it? can justice quickly take a dive and a pause? today's action. we're planning a little solid d. it is critical. the key to protecting your portfolio is home work, diversifying, finding companies with good dividends, good execution, good growth prospects all of which i make my mission to talk about every night on the show with you. you can call me or tweet me at jim cramer. tell me your top five holdings. i tell you if your portfolio is diversified or not. we'll start with a tweet from at a valentino 13 who says boo-ya from san francisco. top five positions. apple, energy transfer partners, kraft, lulu lemon and altria group. am i diversified? yes, gld has bottomed. i like gold. i don't even trade it. i just think you should own it. here we go. lulu lemon apparel i think still has great growth prospects ahead of it. kraft splitting into two. feel really good about the two pieces. i think it is going to go up after they split. altria? the marlboro man. apple. do we have to describe what apple? is then here is one that has me totally bummed. energy transfer partners etp. they do a tremendous secondary of 46. the stock gets smacked down. they report a horrendous quarter. but travel trust owns it. stephanie link and i are probably more upset about this position than any we've owned in years. it is a pipe one company with an 8% yield. wouldn't wish it on anyone right now. there you go. that is diversified. i want to go to michael in the illini. michael. >> hi, jim. citigroup c? cmg, goldman sachs, gx. mcdonald's mcd. bank of america bac. >> wow. hum. i don't know. i think we have a bit of an overlap here. trying to figure out how to solve this instantly. okay. ch chipotle, bottomed at 280. remember mr. hartung came on the show and made a good case. mcdonald's, we got both mcdonald's and chipotle. this is tough. we're going to say listen take a break on the chipotle and buy mcdonald's because we like the yield. we got citi, goldy, and we got bank of america. wow. we got a lot of banks there. and three not even crazy about. what do we do? we'll keep, wow. ooh. you know what? i got these two. i got an ace in mcdonald. i'm throwing the whole hand back. okay? the whole hand. you're going to by jp morgan because it has the good yield. i think it's cheaper than all these. because of that whale over in london. we're going to buy bristol meyers because it's come down to 4% plus yield. then what we need, a little yield going. power. i want to make those trades now. let's go to nick. in my home state of new jersey. nick? >> how are you jim? >> real good. i'll be at the shore this weekend. you coming to the shore with me? >> yeah. i'm actually at the shore right now on my cell phone. let me give you my stocks. i know you're a busy man. >> i got all the time in the world man. i thought we'd have a miller 64 or something. >> i want you to get some sleep tonight. i got cirrus logic. crus. i bought that because i got, had apple so i know they made the iphones for apple. >> yeah. they make the audio panel for it. you got that right partner. >> all right. i got bac bank of america. >> okay. >> i have cmkn. i was going to buy starbucks but you said less european exposure so i bought dunkin brand. i got microsoft, and i have 3m. >> wow. you are all fired up. let me tell you something. you are fired up. sure guy. like i'll be this weekend. look out. did you ever nail that one. absolutely. sears. dunkin, announcing they're going to buy back the stock from the insiders. herb greenburg my friend doesn't like t i do. microsoft, 3m, we got a financer, restaurant, tap, oh, another tech. that's, wow. no. we got -- the music is playing. i got to take profits in cirrus logic and roll into bristol meyers and 3m. that ought to do it. there you go. stay with cramer. [ female announcer ] want to spend less and retire with more? at e-trade, our free online tools and retirement specialists can help you build a personalized plan and execute it with a wide range of low cost investments. get a great plan and low cost investments at e-trade. consolidation, the oil patch has been a constant theme. it makes a ton of sense. given that there are so many players with business and therefore so much money to be made by merging. so in national oil embargo buys robinson meyers a company you've never heard of probably that specializes in the fluid management equipment needed for drilling. we shouldn't be surprised at the acquire stock jumping on the news. paid $2.5 billion more than a 25% premium from yesterday's closing price. nationally, you've probably seen the company on the show a lot an integral part of the drilling revolution in this company. it manufactures the best state-of-the-art rig equipment and has been trying to get a bigger share of the whole drilling process. hence the bid for robinson and meyers. this could become a soup to nuts proposition plus makes money immediately allowing n.o.b. to raise estimates by as much as 25 to 30 cents for next year even if it seems like they paid a hunl amount for the target. they got a bargain. this spurred big increases in gardner denver, in two component players viewed as take out targets because they too would help round out the portfolio. they got good niches. the so-called donkeys you see going up and down. once the well is completed. well these targets make sense. they seem cheap as both stocks are down about 20%. the fundamentals, the underlying business? mixed to say the least. the company having to cut its forecast rather dramatically just within the last few weeks. i can also see weatherford another oil service company catching a take over rumor or two. it has a solid franchise in iraq now pumping 3 million barrels in oil a day for almost a decade. extremely diplomatic, the stock is down 11% on fears from people who think it won't live up to expectations but plus it has had accounting problems. trying to catch the next takeover bid is a fool's errand. buying companies with declining fundamentals is a sure fire recipe for losing not making money. what does make sense? if i were you i'd buy slumberge the king who has told you it is doing very well and has a positive outlook unlike gardner denver, it's not hostage to the misfortunes of natural gas drilling in this country. with the drilling budgets on the increase around the globe and a management team second to none the company could have a multi year rally. we like it for the fundamentals. that's why i trust. you can follow along. been buying slob every chance possible. i always prefer to pay up hoping lightning strikes and there is a take over. if you ask people what they think is the best run in the patch, the most admired company they'll say slumberge. that makes much more sense to buy than a company which has failed to meet expectations especially as we watch oil work its way back up to $100 a barrel. stick with cramer. okay, here's the plan. you have a plan? first we're gonna check our bags for free, thanks to our explorer card. then, the united club. my mother was so wrong about you. next, we get priority boarding on our flight i booked with miles. all because of the card. and me. okay, what's the plan? plan? mm-hmm. we're on vacation. this is no plan. really? [ male announcer ] the united mileageplus explorer card. the mileage card with special perks on united. get it and you're in. hey, i love your cereal there -- it's got that sweet honey taste. but no way it's 80 calories, right? no way, right? lady, i just drive the truck. right, there's no way right, right? have a nice day. [ male announcer ] 80 delicious calories. fiber one. something you're born with. and inspires the things you choose to do. you do what you do... because it matters. at hp we don't just believe in the power of technology. we believe in the power of people when technology works for you. to dream. to create. to work. if you're going to do something. make it matter. all right. nasdaq was up today and a lot of that is because we're seeing this kind of subtle leadership from google. google has grabbed the torch from apple and amazon. i think that's going to be the one, the first one of these three that is going to go back to its 52-week high.