Levels. Beeks . No i tell you, one of the strongest currencies out there is the euro right now. I still like it. Above 135, especially fxe, your etf. Thank you so much for watching. See you tomorrow, 9 00 a. M. Squawk on the street. Back here again at 5 00 for more fast money. Dont go anywhere. Mad money with jim cramer starts right now. Launch. Mad money starts right now. Im jim cramer. Welcome to my world. You need to get in the game. Firms are going to go out of business, and hes nuts. Theyre nuts. They know nothing. I always like to say theres a bull market somewhere. Mad money, you cant afford to miss it. Hey, im cramer. Welcome to mad money. Welcome to cramerica. Other people want to make friends. Im just trying to help you make a little money. My job isnt just to entertain but to teach you. Call me at 1800743cnbc. The dow jones average is just a stones throw from 14,000. Headed to its all time high that we reached five years ago. The index which rallied 72 po t points nasdaq 52. 2 is in rare territory for certain. Yet the chatter it remains skeptical. As ive said many a time, im never going to criticize the scep tisism i employ. It is a quality that has made me a ton of money versus the complacency which has been a continual loser. It allows you to leave the table after a big run are. Im sure that there are plenty of index Fund Supporters who say come on and see, if you bought and held you would have done fine after all, but you could have made so much more money doing what you think is impossible. Which is selling high, and buying low. Getting out and getting back in. That is undeniable now. And if you manage to get out near the high of 14,000 and change or 12 or 11 thous of, and then you get back in near the bottom. You have made a fortune and more important you didnt lose one. Congratulations. And then the logical question is this. Should we ring the register this time around . Is that the correct course given that it worked last time . Well, you have come to the right place. Let me give you some history before we get to the matter at hand. First this isnt the first time we have worked our way back to the crash of epic proportions. We fell to 2017 down to 1400 in october. That is right. Another 50 rephrasement of the high. I was trading with karen and we went into all cash the friday before what became known as black monday. It was a brilliant call. I skated on it nfor years. But i couldnt resist. I fought it tooth and nail. Hammer and ties. No level. We shouldnt have been to that level to begin with. I bought s p puts as we neared the moment. I would tell anyone who would lis eten we were skating on thi ice. That was wrong. All i had going for me, was the fact that we faileded before. I didnt have a leg to stand on. It wasnt openminded scepticism which is what i had thought. And it failed me. Things changed after that. That is when the market began the long traverse to higher levels and with each milestone became a level of rejoicing. Hallelujah that was admittedly exciting. I remember getting out my hat in 1999 and then the dow was hit by the nasdaq. Up 2,000, 4,000. That ended terribly. The house of pain. Sell sell sell. Ever since the emlation of the dot comclops, a sure sign of someone who is about to wear a postit. I know i dont intend to celebrate if you take out that 14,000 level. And not because i dont want to wear that on my forehead. We are in a different time than where we were then. We had a worried Housing Market and a fixed income market no one understood. And a robust market for all things technology. All things. You know what and those came crashing back to earth. And that produced notable eliminations like aig, citigroup which eliminated its Balance Sheet and General Motors and auto sales came crashing down. I would never have taken it out. And it is never too late to let honeywell back in. But here is what is really incredible about so many of the dow stocks right now versus where they were then. The last time we saw these levels we were riding high on the personal computer. The fablet and the smartphone have cut deeply into the businesses. At least in the case of intell and microsoft. They are and they have plenty of cash. Hewlettpackard may not be as bad off as the decline would indicate. I dont know i like the stock but i think it is too low. Since the 2007 top, the dows added bank of america, cisco, chevron travelers and united health. None of these stocks can be considered expensive. Bank of america, at least on a book value after the stock more than doubled last year. Can i imagine if the stock added amazon, even as those earnings reported tonight were helped by larger than expected margins . There are no over priced but astounding performers in the average. But you want cheap . Last time the dow visited these levels people were visiting the pharmaceutical companies as growth entities. From pfizer, j and j, merck. Now they are getting back to where they were. So lets ponder these comparisons. Now it should have 20 billion this year. J and j. Merck which remember isnt back yet nearly to where it was. Has 12 billion in cash flow im amazed at how cheap these drug stocks are on these cash multiples. Consider that at t the seller of the apple iphone is down 18 points. And verizon is barely up from that. Despite in reverses from both companies. How about the stars since the 2007 peak . Arent they do for a fall since we were last at these heights home depot at gone from 41 to 67. In the interim, it has distanced itself and it is still inexpensive on earnings. It has come up to 204. But the company has almost doubled but they are forecasting 20 a share. Doable number. The stock is not cheap. In the near term maybe, but in a 2015 basis, very in expensive. Does disney belong up from 2034 . The stock deserves this improvement. In fact, i can say there are plenty of stocks that dont be long as low as they are. Alchoa, a fraction of its price tag. It has gone to positive 200 million. 3m sit a muit is a much better now than back then. Just now, just now it took out its high. And how much more time does General Electric have to spend at roughly half of where it was when it has embraced real profits in a real way. Here is the bottom line. We arent going celebrate the dow 14,000 level. But to presume the top is no more than what i thought in 1989. To think it is more expensive is fanciful. We were too high. I could argue that we dont belong here this time. Maybe we will look back and find out that we were too low. Cori in texas. Jim, thank you for taking my call. And the time. The stock that i was calling you about was sony, sne, with the change going on, trying to sell the building in new york. And china potentially lifting the video game console ban, what do you think about that . You need product, and earnings momentum and they dont have it. Im not a buyer of it i would be a seller. I feel the same way in the past. But learn from my mistakmistake. It may actually be time for optimism. Mad money will be right back. Coming up, how high . The market continues to hit new five year highs but the question remains will we get a pull back before soaring to knew all time highs. Tonight cramer takes on the technicals when he goes off the charts. Dont miss a second of mad money. Follow on twitter. Have a question, tweet cramer. Send jim and email. Or give us a call. At 1800743cnbc. Miss something . Head to madmoney. Cnbc. Com. Tomorrow see the live reveal, research emotion unveils the new blackber i 10. Will it put the company on the come back trail . Squawk on the stre streehe stren cnbc. To sport sedan. Best. People noticed. The allnew cadillac ats 2013 north american car of the year. For a limited time, take advantage of this exceptional offer on the allnew cadillac ats. Makes it easy for anne to manage her finances when shes on the go. Even when shes not going anywhere. Citibank for ipad. Easier banking. Standard at citibank. To deposit checks from anywhere. [ wind howling ] easier than actually going to the bank. Mobile check deposit. Easier banking. Standard at citibank. This latest bull run has been spectacular, but how long can the market keep it up . Isnt it a suckers game to believe that the rally can continue can run it into a brick wall and crush your portfolio . Maybe the rally has real staying power. When you look back at the history of the market, you can see that we may have only started a long march higher. I wanted to entertain on tonights off the charts with the help of scott redler who is the team officer at t3 trading as well as my colleague at the street. Com who has gotten this chart right so far. He points out that the market is not particularly kind to you right . You can see that right back to 2000 is trading side ways. It is looking that we may be able to break out of the range here. Back on february 14th of 2012, revler told us that he could see it going to 1700 by 2015. Since then, it has rallied to nearly 1508. We could see that target sooner than he predicted. But to understand his longterm optimism, we need to take a step back. For anyone who has been trading during the last dozen or sko years, it has been one crisis after another. The housing bust, apocalypse, so check this out, look at this. This is a chart of the s p 500 from 1976 through 2000, look at how the market roared in the 80s. And then it surged in the 90s. In the 90s it surged 360 . We had two straight decades where stocks were fabulous investme investments. Now he is not saying we are going to repeat those moves. It is not unprecedented for the averages to have massive multi year rallies. Look at the chart from 1996 to where we are now. Rather than going up endlessly, the s p 500 became a roller coaster. In march of 2000, to march of 2009 we are only 50 points away from the levels of where the s and p peaked in 2000 and again in 2007. Peak and peak and almost there. Some peak think this means you got to get cautious, right . Remember i talked to you about that at the top of the show. He believes we could be ready to break free from that pattern. He believes he could break out above this and make beautiful longterm highs. The reason . Take a began dgander at the chag back to this past may. He thinks this is gorgeous. A gorgeous picture. One with a down right perfect bullish set up to start the year. Remember the low was higher than the november one. So those are, we love that. That is perfect action. Very, bullish time for charters because it indicates a powerful trend. Kurtsy of the last minute fiscal cliff work around. And then it rallied higher giving our january these numbers we talked about. It broke out at 1474 and now we are above the key level of 1500 which means from his perspective there is little resistance level standing in the way of this rally. We are overbought but on the other hand it is possible to stay over bought for long periods of time without having a nasty pullback. Especially when it is above the averages like it is now. Another big positive for chart watchers. If the s p pulls back. He would get more cautious. Lets put it together going all the way back to 1970. When i had huge amount of hair. We have a monster rally in the 80s and 90s. Monster in the last decade in the period of the known and who r horrid consolidation. This double top formation has controlled the s p for years. Based on the action he has seen, he thinks the index could break out from this range to new highs. The first time the s p hit the 1540 or 1565 level in the past he thinks we might see some resistance. As soon as we get a cross above this double top which he is confident, then the next stop will be 1700 and perhaps beyond. 12. 7 increase from where we are right now. It could get to 1700, but he thinks we are going to get there faster. Here is the bottom line. You know i like this one. His chart gives us a technical reason to believe this move is far from over. From a guy who has called it right. We have to take it seriously. Nicholas in florida. Hey jim, how are you doing . Im a little shy of voice but im hustling like everyone else whats up . Im calling about blooming brands. I wanteded to get your opinion on it. It is new. It is doing pretty well. I have to compare it. I had a piece this morning about ruby tuesday. I would have compare it about companies of similar size. I have been anxious to do that. Let me come back particularly because we have a lit of compone components that are playing havoc with the restaurant chains. But it could be the tip of iceberg. My take . It has been right so far. Maybe he is onto something. After the break i will try to make you some more money coming up, tupperwar are e, should you seal up shares of this or could it be getting stale. Dont miss cramers exclusive with its ceo. If youre taking pills for type 2 diabetes and youre still not getting the control you want call now or visit controlispossible. Com. You have a chance to help control your blood sugar for yourself and for those who depend on you most. With your free chance at control kit, youll get facts about insulin and how it can lower blood sugar. A meal planning guide that makes sense of food labels, serving sizes and shows how you can still enjoy the foods you love. An awardwinning app to access nutritional information and find restaurants. Plus a blood sugar diary to help track of your levels and progress. Dont put off calling; find out more about adding insulin to your type 2 diabetes treatment for yourself and for them. Call now or visit controlispossible. Com for your chance at control kit. It will give you better understanding on insulin and how it can lower blood sugar. Call now or visit controlispossible. Com. Its a challenge to balance work and family. Thats why i love adt. I can see whats happening at my business from anywhere. [ male announcer ] now manage and help protect your Small Business remotely with adt. Arm and disarm your alarm, watch secure video in real time, and even adjust your lights and thermostat wherever you are. With adt, you get 24 7 protection through our exclusive fastresponse monitoring. You can be confident that adt is always there for you. Hey, lisa. Is that the delivery weve been waiting for . [ male announcer ] and now you can get adt Monthly Service for your business starting at less than 2 a day. [ woman ] i love the convenience of adt. I can finally be in two places at once. [ male announcer ] call today and get adt for less than 2 a day. Helping protect your business is our business. Adt. Always there. Urks lately t been a lot of fuss over direct Sales Company they use regular people to sell their products. Last week we had the issue over herbal life a claim which the company denies. And thursday an outfit was shut down called fortune hightech. Not all direct sellers are scams like this firm the fdc shut down. Like herbal life. Some are totally legitamite. Best of greed compabreed compan tupp tupperware. Even the queen of england land gets her Breakfast Cereals out of them. It is a huge hit in the Development World as it gets 59 of its sales from emerging markets. This morning it reported a solid quarter a two cent beat on competitors that are up. And not only did the company give upside guidance. The company gave you a 72 dividend boost giving you a yield at these levels the stock shot up to a new high. Let the stock is up 207 at slightly less than 20 giving you a big return. Lets check in with the chairman and ceo of the company to get a sense of what is happening in the world of direct selling. Welcome back to mad money. Guttentach. Im here in frankfort. You did it again. What gives you the level of confidence to increase your dividend by an unbelievable amount . The largest ive seen . A couple of things. We really have confidence in a Going Forward approach. You know it is interesting that im in germany. People asked me what keeps you up at night and it was germany. It was 60 of our profits. Now, we have multiple engines of growth and we are very much an and business. It is established markets like germany where we were up strongly this last year and very strong profits as well and we are emerging markets. Second thing, we really look at our business and we look at the runway that weve got ahead and we say we are a cash generating machine. We have enough cash to grow the business and we decided you know what . We can handle this kind of leverage. We did a return 1. 75 and we said lets return this to the shareholders. We dont have an interest in acquisitions. That means we are going to return some in the form of continued share repurchase. A lot this year. But we raised this dividend. It is a combination of these things. Lets talk about that buyback. You could say you are buying 50 of your company in from the open market. I look at the numbers for this year. And what we are going to be buying it is 10 of the stock of the company. Jim, a lot of people have asked us, why did you do it this way . Ill tell you, our partners are our shareholders and we went out to our 25 largest shareholders and some of them want it in dividends, they are looking for this high yield and others wanted it in share repurchase. And both look good for us. It is a signal that we wouldnt have down this unless we felt that we had confident growth. And i have to add, jim, we still have four or five markets that arent doing what we want them to do. The other thing that you have done, rick, because you know that there has been a back and forth on our own network. Karl, you have never retreated from distinguishing your company from these others including an excellent white paper where you say that her balanbal life is a Network Marketing company. You along with others are a direct seller. Why are you distancing yourself from some of the other companies that claim to be in your industry . Im not going to take issue with multi level marketers but they are chalk and cheese from traditional sellers. What you had from prior to 1950, avon, fuller brush. Even tupperware people went out and sold to a retail customer. You had these Network Marketing companies that recruited people not so much to sell, but to consume their products and you saw it in cot msmetics and a lof them came and went because their episodic kind of businesses. They are wholesale buying clubs and based on sign up to save money and consume the product. We are based on we recruit our people, we finance them with their kit, we train them free and we teach them to go to a retail customer. Who is the customer . Over 90 of our sales are to a retail customer. Only 10 to the sales force and they buy that because we have new products every year. The bulk of their products are consumption by their network. So they are chalk and cheese. How do you know that yours is 90 . If you have 3,000 store fronts in china. How can you monster thitor that. You wouldnt believe the level of detail we have. Every monday morning we have a stand up meeting. I dont care if it is Christmas Day because the world isnt christian. It is one hour. We have a report of what happened the previous week. What the sales were and people that went to the party. We manage our bigs down to the detail of it. So it is not if maybe might. We know for sure. Rick, i notice, and i follow your products, new chopper and new dish that i like. You can buy these things online and go to the website, it is not like i have to go to someone and then become a seller myself in order to get the product. No, but what happens is, most people dont understand our product unless they come to a demonstration. And so what will happen is, less than 3 of our sales are sales online. But when somebody comes to a presentation they see this is this new chopper that sells for 70 in the us and 50 euro here, they come to a party and they dont focus on what it does. They focus on what it makes. And ill tell you, the younger women we are recruiting today. She says show me how to save time. We have a whole line of products that are time safv safers for yr women. Thank you for coming on. Great quarter sir, good to see you. It is time, it is time for the lightening round. And then the round is over. Are you ready skee daddy, it is time for the lightening round. Well start with eddy in new jersey. How are you . I hear you are not so good tonight. Ill do it, ill finish it im a trooper. Two weeks ago you had the ceo on from chineer and i got interested in the stock. Im confused because there are two listed. The lng is the one he said it has a clear flight path. That said, it has quite a run. Cool it a little and then do some buying. Ryan in virginia, ryan . Just wanted to give you a United States navy booyah. A thank you for serving booyah appreciate it. Drug company, it is an orphan drug company. I think it is good, but understand it is speculative. Lets go to mark in new mexico. Looking at alan. I like that. Buy buy buy. It is a good refiner. And that, is the conclusion of the lightening round. The lightening round is sponsored by td ameritrade. [ cows moo ] [ sizzling ] more rain. [ thunder rumbles ] [ male announcer ] when the world moves. Futures move first. Learn futures from experienced pros with dedicated chats and daily live webinars. And trade with papermoney to testdrive the market. All on thinkorswim. From td ameritrade. Living with moderate to severe Rheumatoid Arthritis means living with pain. It could also mean living with joint damage. Humira, adalimumab, can help treat more than just the pain. For many adults, humira is clinically proven to help relieve pain and stop further joint damage. Humira can lower your ability to fight infections, including tuberculosis. Serious, sometimes fatal events, such as infections, lymphoma, or other types of cancer, have happened. 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Companies taking forceful action to unlock value. Already we have are had our first success with the potential break up of hess one ive told you could happen. This oil and gas company which is now the subject of a proxy fight has vaulted ten points on the news. And i think the stock could go higher if the company gets sold. Remember, hess has some of the best oil that is out there. I think it deserves to trade back at the helpful that stood two years ago up 18 points from where it stood now. So, i believe it is worth going overall the other dont just stand there, do something ideas that i had there on the show. First, the most recent is aliant systems. The niche includes precision Weapons Systems but it is known as a bullet maker. It would be the envy of any defense contract maker that would be hurt by the budget cuts. The news here. Last night ollen a Chemical Company reported a descent quarter. The Winchester Ammunition Division said sales were strong. Ammo sales spiked saturday before the election and have continued strong. Next we recommend that the house divided between Food Service Equipment and cranes cannot stand. To me, the reaction to the streets to caterpillars earnings and the sharply better than expected earnings with equipment used for construction tells me that is indeed worth the price of the equipment. Suggests to me that the industry has too much value in it to not be unlocked by a motivated suitor. Lets not forget the run by Kitchen Equipment maker, middlebee when they purchased the viking range system. The company could afford to take a run at the entire 2. 3 billion system or seek to purchase the business. Which for a while the remaining business. What do you say about a company that mizzed its projections so far and created a product that might have a 40 failure rate. For most companies, i would say it would be on the 52 week low list. But not if it is johnson and johnson. The reason are, people continue to speculate that j and j will join the ranks of the older high flying farm pharmas. The company made it clear that it is going to start pruning divisions that arent in the first or second spots. Remember, new ceo has come in and he doesnt have to worry about the legacy of his much revered strangely predecessor william welden. A bit of a disappointment. But i think it is time to recognize that on earnings alone. Stocks could be higher. This organic food company has organic growth. It is the one stop solution for the slowing growing package Food Companies whole foods. I think ceo has done a remarkable job buying up brands and blowing them out. He has created a 2. 5 billion shareholder value. He owns 15 of the company. But karl might be more of a what have you done for me lately kind of a guy. I dont know how patient he might be. It has fallen from 73 to 55. If i was running campbell soup, a company known as a salty soup concern i would purchase hain and turn the whole company over to simon to run the darn thing. Next up, the decker story. This one has gotten murkier. This one is said to be in talks to buy billabong also uggs the flagship brand seems played out. And so was timberland. I do not expect a good quarter from decker. But that is what happens. So, after listening to the dupont and honeywell calls. And hearing how well they are doing. I still cant believe there isnt a bidding war. Taking into account the stock price. With the turning in europe perhaps at hand. Maybe it wont matter. What else . That rush out of bond, remember they took in 400 billion into stock funds and attracted 14 billion in 2014. May allowed 2013s division dst, did hit its 52 week high today. There are so many cats and dogs under the roof of this company when they could unlock so much value after breaking it up. I had thought that fortune brands would be a natural candidate for a merger. Solidifying its dominance in the housing come back. But like so many others, fortune brands hasnt needed much help from the deal breakers. Finally, there is a real controversial one. Bed, bath and beyond. A retailer reported in the times since i suggested that management was tired. Constantly saying that amazon is going to crush the company. What can i say . Im sure there will be another roupd. People think it is a borders or circuit city twin. Meanwhile the shares are coming down and bed bath is cheap and too cheap for management to ignore. I think you would get a nice pop if they decide to take themselves private. Bottom line, hess maybe it is time to take matters into their own hands and join into the parade. Hain, deckers, dsd, fortune brands and bed, bath and bebeyond. Dont just stand there, do something. Mad money is back after the break. Keep up with cramer all day long. Follow on twitter. Its happening the revolution in oil and gas is happening. You just need to know where to look for it. Today we saw it in valero. Which reported phenomenal earnings this morning thanks to the great boom in us oil and gas drill. The best 4th quarter since 2005 flt when cars were g s gus elli said quote we released all imported light crude oils since we expect u. S. And canadian crude oils to be available we are increasing these cost advantage crudes throughout our remaining system. End quote. In other words, because of the shale and so many other terrific prospects. Including countries that we regard as our friends, this trend is going to get stronger. Prices at the american pump reflect the higher cost of the crude. The difference is monumental and could cause valero to go higher. It is the most Aggressive Company yet. Only frontier remains at a higher value. They told a great story. The despairity between cheap domestic oil and crude is one of the reasons that i told you that hess is in excess is what it is selling for. The other day hess committed to getting out of the refinery which is dedicated to getting the crude at its memphis and gulf coast refineries. The lack of pipe prohibits hess from getting the crude that valero has. It is proposing its own slatables. Some republicspected oil people. Wow, there are two important take aways here. The company is still well behind recognizing our domestic oil. The second is if we had an en y Energy Policy in washington and our battle for natural gas into its thinking. We could smash opec and become the cheapest place on earth and put millions of people to work including in a more secure environment. We are barely scratching the surface of natural gas use. There isnt enough natural gas to sell cars in this country. What a sad set of circumstances. Stick with cramer