Can predict the next big move for stocks. Given that i base all of my work on the fundamentals and not the shape of the charts the off the charts segment is antithetical to my antistock picking methods. But i know your feedback that youre interested in this analysis and it eat getting a lot of people involved at the right level say. Not for a minute as i explain in get rich carefully where i devote a whole chapter to charting have i become a chartist myself. Single out stocks to highlight and teach about after studying the fundamentals, the research, the annuals, the sectors and i overlay them on my broader world view at the moment. Chartists can care less about this stuff. They often dont care what the company does. I wonder if they can do their jobs with the companys names blacked out. In fact, i am sure they could. Some of them hate the distraction of knowing what you know about a company for fear it would bias them against the stocks chart. I stilt rely on the individual work of the individual technicians to learn techniques i can teach you. Thats why tonight i am picking the best of the best charts of some of the best technicians we have worked with, exploring the patterns that have become reliable to the point im pretties a astonished at how accurate they can be. Thats why i started every saturday morning for the last 30 years reading the Standard Poors stock charts, now on electronic distribution. They contain hundreds of charts. I match those charts with the patterns i have learned over time. I then go over the Research Available for the most winning of the charts and they become segments that you see later in the week. Why do the charts work . People always want to know. First, you must consider they want as if theyre footprints at the scene of a crime. These footprints trace out what big Money Managers are doing with their buying and selling of dollars. The chieftains know more than others including you and me. The charts of where their money goes, the charts of the stocks put together clues that the big boys leave. Second reason to care, theres a remarkable selffulfilling nature of charting stocks. So many professionals take them to heart, that theyll simply avoid stocks, more predictably terrible stocks and that are pressing positive moves in the past. Dont i know it. When i work with karen cramer, she would look at the charts each morning, seeking ones that stood out as potential breakouts and break downs and then had my research the ones with most predictable patterns to get a handle on whats going on. We got some of the best ideas from the brainstorming sessions. A true and successful melding of the fundamentals, to produce excellent short and long term results. All of charting Technical Analysis starts with the pictures of not only the individual stocks but what are known as the internals. Patterns about stocks in the aggregates that give you clues. For years ever since the Great Recession that showed the inherent weakness in the financial system, there has been tremendous skepticism about any advance of stocks. Well, i believe the systemic risks have been reduced, each rally creates a worrisome set of risks. Youre coming in at a level that could turn out to be lets say too late, to high. And you will lose money either way. Sell sell sell. Good Technical Analysis including analyzing the indicators that help you determine the overall direction of the market. More important than ever given that so many stocks are influenced by the tug of the s p 500 stock futures. Sometimes everything hinges on putting together the numbers that this show the true market strength. Theyre looking for confirmation. Of a move to detect the legitimacy. I think theyre incredibly important to the safety of a move. They need to be explained closely. The most important and obvious confirmation lets say the dow jones average hits a new high. That high will not be sustainable unless the dow jones transportation index hits a high or confirms the breakout status of the dow itself. The dow jones transportation index is a measure of commerce, tracking planes, trains, freight, come on, isnt that a good gauge . If both the industrials and the transports hit new highs i often tell you that the move is legitimate and it can be trusted. It is real. This is some of the oldest technical work, getting back to charles dow. The founder and first editor of the wall street journal who created the eponymous dow theory. You often hear that i like how the transports are acting. Thats because im trying to see if the move has staying power in order to bless it. I look at the banking index thats important to me. The housing index, i look at the semiconductor, and the rth. I like to see the indices move up in sync before i bless a market move for you. You get all the indices rolling higher, you have to put the maximum amount of chips on the table. Oh, boy, but is the inverse true. If we get a move a move up without confirmation from the majority of the indiss the whole rally could be a fakeout. Boo and cant be trusted. The classic example if you went back to the move up to record highs before the Great Recession, you wont notice something pretty incredible if you go back and study it. You will no edisthere was no there was no participation between the retail and the techs. And it did much better than the fundamentals. What are the other internals i look at . I analyze the advances and declines, figuring out whether the rally is too concentrated. I like a market with good breadth or a lot of participation. And remember, it isnt easy to get on the new high. First the company has to be doing exceptionally well and the sector has to be strong. Third, larger force is the federal reserve, interest rates, geeio political tensions have to be successful to get on the high list. That list is rarefied territory. You run the gauntlet. You have a good stock. A stock i want to buy on any pull back thats market related, not substantive as a stock. Hey, if there are a lot of stocks in the new high list, thats actually a terrific sign. So heres the bottom line. You may not be a technician, but you need know what the charts are say and and you need to verify a real move or a knowny one. Stay tuned. Well go over a whole host of predictive patterns that suffuse everything we do around here. Not just on off the charts tuesday. But in Stock Selection every single day. Jim in michigan, jim. Caller jim, hi. How are you . And thanks for taking my call. Of course. Thrilled that you called, whats up . Caller ive got a question for you. In the segment you were talking about secular stocks. Could you define for me once again what is secular stock . And maybe give me an example or two . Certainly. This is atern that goes it gets thrown around. Secular is a stock that does not need the Gross Domestic Product of the world to increase in order to beat the numbers. Some of the classic secular grower stocks would be the biotechs. Some of the retailers that have terrific growth. Ill give you an example. Chipotle. Thats is secular grower. It doesnt need the economy to grow stronger. So use that as our model in our heads. Gary in california, gary . Caller mr. Cramer, booyah to you. Gary from california. My question regarding dividends in a down market, sir. If youre accumulating the stocks, is it better to reinvest them in the down market or take the cash and invest in other we know that power of compounding is an amazing thing so stick always on this show, i know it sounds pretty pedestrian. But we are always going to opt in favor of reinvestment because fortunes have been made through the power of compounding. I have to go with that regardless of the near term consequences. Fundamentals oh theyre tonight im bringing you into the world of mastermind chartists so you can see the whole pick xhur behind a stocks moves. We know that charts are important but what technical tool can help you detect floors and ceilings . Im reviewing it. How can you tell if a company is right for a pull back and mixing patterns isnt only for fashion. Im highlighting the patterns worth banking on when it comes to investing so why dont you stick with cramer. Announcer dont miss a second of mad money. Follow jimcramer on twitter. Have a question . Tweet cramer, madtweets. Send jim an email to madmoney cnbc. Com or give us a call at 1800743cnbc. Miss something . Head to madmoney. Cnbc. Com. Welcome to todays working world. Companies everywhere are working harder and investing more. But achieving the right outcomes has never been more difficult. Xerox engineers a better way for people, process and technology to work together. Improving how the world shops, travels, pleases customers, learns, banks, and stays healthy, so. Life works better. Work can work better. With xerox. [get up to 48 monthsw interestfree financing on tempurpedic. Save 300 on beautyrest and posturepedic. Or choose 300 in free gifts with stearns foster. The triple choice sale is on now at sleep train. Tonight we are offering the best of the best of Technical Analysis. A one stop shop of everything you need to know to augment your investing with the help of the best chartist in the land. Lets work on the province of the best chart working on the show, spotting bottoms and the ceilings to exit or sell. When you pick individual stocks youre being from youre betting from moment you buy them theyre going go higher. How often do you do solid fundamental work on a company and try to figure out if its the right decision to pull the trigger because your homework is finished. And then, well, it turned out to be a terrible time and youre buying oblivious to the stock. Maybe its not the right moment. After all the work i have done on the off the work segments youre being short sighted after you have done all that homework. Before you put the buy order in, its not the right time. In fact, i would consider looking at the chart of the stock as part of the homework. Get that in your head. Get it engrained into your thinking. Sometimes finding bottoms after long declines can be incredibly lucrative. Lets go back to the bottom of 2009. I had a sense that the velocity was lessening, i heard the late great nate hanes make that call. And part of the street. Com family, sometimes noted as being an aggressive bear had turned positive. He was saying we were in a generational bottom. But i was still skittish about picking individual stock to recommend to you. So i was looking for a situation that seemed about as bulletproof as i can find. I came up with at t. The phone company. It had so much going for it. You have to go back in the way back machine here, but it was included a smashing rollout of the apple iphone which is going to produce record profits as at t took business from the apple list competitors. Had a dividend at a yield at 6. 2 . The yield was much higher than any stock in the dow, the dividend was back in the cash flow. Still, the stock kept plunging every time i thought it had a firm footing. No, i waited for a few days. And then decided that at lot of the level could hold. I checked with a chartist, i brought in four chartists. Amazingly they all agreed they had found a Strong Foundation and it was worth considering for an investment. So take a look at what attracted them. Take a look at this chart. First, all four technicians agree that at t had established a climax low, at 21. Back in the tsunami of selling that was this period. Okay, just got to understand that we are at one of the moments that was just so hideous. You can see the big lift in stock and then, well i dont want to give away the story. Thats where lots of sellers had capitulated. They capitulated here. But they had a floor at that level and they looked at the volume and all the sum of all the transactions had expanded in excess of the trading. Theres a normal period of trading, look at that. Thats a sign that the sellers had exhausted themselves. The volume levels showed most of the Portfolio Managers wanted out of the stock, they had fled it by now. At the same time, the buyers step up to meet the supply with the level of the stock. As long as sellers overwhelmed buyer with the base, no base can form. A climax is a sign that the potential sellers who have been holding on for some time are finally giving up en masse. Big giveup. Remember, technicians dont care why that might be the cause. Theyre just monitoring price and volume. When they see that volume gets larger, but the stock doesnt go down, that means the stock has found the floor so now time to buy. Its safe. Thats where the buyers are at last equal to the sellers in the power to determine the direction of the stock, and thats a form of equill lib ree up. And then the stock takes out resistance to overhead. Not just to look at the Closing Price an photograph the previous weeks and close, they dont look, oh, that looks good or bad, thats not helpful. Because it doesnt yield a true picture of the trajectory. Instead, its a moving average. A moving average is formed by taking the Closing Prices of the stock over a period of time. Then adding those prices up, and then dividing those prices by the days and particular measured period. We talk about this im breaking it down. You can measure it over a tenday period by adding up ten days by dividing the sum by ten, plotting the number on a graph. Each subsequent day you add in the new closing and drop off the earliest price to get the new ten day measuring period. The technicians i checked in on at t they selected a 200 day moving average. They noticed that at t had found a floor at the 21 level, if the stock had bounced off repeatedlily, it kept failing, meaning it couldnt get through failing to move up above the 200 day moving average. They had all done the same amount of work. That created what looked to be a ceiling. So you had the ceiling, the 200 day moving average. They just felt that every time it got there, the stock was tapped. Then at last, at t cracked through the ceiling of resistance, and thats the 200 day moving average. That was the signal. That was the signal that at t could generate a great trade or investment. The old roof became a new floor. Every time the moving average went above the old roof it would create the possibility of a new floor and then the stock would come back and test that floor and it held. The stock didnt break the new found base. In other words, it didnt go back to the climax low. It held. Looking back at the beautiful bottoming that we see here with at t, it now seems like childs play, doesnt it . Of course. At that moment it was anything but easy because at the same time the technical analysts were saying the bottom is in, it was time to buy, the fundamental analysts were scared out of their wits. They were all scared to death right here. Some were worrying about pension obligations that can cause the dividend to be slashed. Something was wrong. But it scared the heck out of me. Remember the people in the stock for the dividend. It gave us a launching pad to launch off into straight loin of the 30s. So heres the bottom line. When you see this kind of reliability pattern, at t demonstrated, despite what the fundamental analysts might be saying you have to use the discipline that these technic n technicians give you to take advantage of the fabulous buying opportunity that might be overlooked after the market takes a real shellacking. Never take it down, went way up. After the break, ill try to make you more money. Mr. Cramer, absolutely love the show. We really appreciate you out there, man. Booyah to my kid, aidan. Theyre in Elementary School learning so much from you. Booyah, mr. Cramer. I know you hear this all the time, but thank you so much. This is my best year in the market. I want to thank you for your, you know, looking out for the regular guys out there. I am trying to teach people to be better investors and im doing my darn best. Thats the goal here. Great to hear your voice and know youre there for us. What do you got to offer us today . Balance transfer thats my game bank you never heard of, thats my name haa thank you. Uh, next. Watch me make your interest rate. Disappear. Theres gotta be a better way to find the right card. Whatever kind youre searching for, creditcards. Com lets you compare hundreds of cards to find the one thats right for you. Just search, compare, and apply at creditcards. Com. A one, a two, a three percent cash back dentist appointment when my teeth are ready . Can it tell the doctor how long you have to wear this thing . Can it tell the Flight Attendant to please not wake me this time . The answer is yes, it can. So, the question your customers are really asking is, can your business deliver . Welcome back to our special technical show. The next crucial theme for tech nicks, whether a stock is overbought or oversold, maybe ready for a bounce. You determine that by charting the higher closes. The relative strength index measures the direction the stock going and the velocity of the move. We like to match the individual stock to something else. Perhaps the relative strength of the sector or a larger index and measure the price action historically. We are looking for anomalies, where strength stands out. Because thats the sign of the pending move. Perhaps the momentum switch if we had read the research on the stock. For relative strength chart work, i turn to langen and collins. Many technician vary the length of time over which they measure relative strength. Lange and collins use ten days or two weeks to get a relative bead on the stock theyre looking at. Theyre looking for a pattern that reverses the action, because thats a sign a breakout or a breakdown might be upon us. They love strong relative strengths situations but they also like to time their buys after pull backs. Get that better entry point. They really care about bases. Typically when a stock is overbought it is ripe for a pull back because ones with many buyers, tend to snap back after they have gotten too far away from the longer term trend line. The inverse can be true too. A stock can fall so far, so fast, you should expect a snap back because its technically oversold. You hear me use these terms. We see these patterns constantly. Theyre reliable indicators that a change in direction is about to occur. These are terrific action points, people. If you find the stock is overbought i tell you to wait for a pull back. That almost always comes. Thats because lange and collins have done enough chart work to know that the vast majority of stocks overshoot directions and then retrace some of them back to better entry or exit points. Retracement is not always negative. Periodically some stocks are so strong, they break through all of the ceiling of all traditional significant measurement periods, then stay overbought perhaps for weeks at a time. Defying the historical trading patterns that have trapped them. They defy the notion of the old gravitational pull and cant be contained by the various ceilings that overbought conditions usually bump into. When you spot highly unusual moves, you know what . You may have to strap yourself in to get a real moon shot and lets look at this one. This is what i mean. This is rare. But when it happens, its big money. We saw it occur in july of 2009 as Dan Fitzpatrick pointed out to me using the statastics oscillator. The summer the stock of Las Vegas Sands one of the largest Casino Companies had been repeatedly stalled at the ten buck level, falling every time it hit, boom boom boom. You know . Just not working. Okay . But, when the bulls finally broke out of the corral, it pushed through instead of recovering. Thats very rare pattern. You see this thing . It just stayed overbought which told you good things were going to be ahead. It never retreated as you would have expected. Buyers wouldnt quit despite the stock being overbought and that is a sign the strongest kind of positive move in the book might be taking place. And at any given time i expected a pull back but you had the gigantic long term overbought. This proceeded to two from 10 to 48, pretty much in a Straight Line with no substantive pull back to speak of. Overbought condition that can stay overbought is a golden opportunity for a huge move. Look, right back to being overbought again. Remember, i like to marry the fundamentals with the chart. So im not too dependent on the pictorials. Why was it overbought for so long . Thats when the chief locust of profits went from being las vegas to macao. The only place in china where gambling is legal. The change transformed it into the International Power house. Might as well have been named macao sands. The charts told you about the transformation, well ahead of the wall street analysts who were dazed we had a horrendous decline to begin with. The chartists is thinking theres buyers lurking. Volume is another one to spot pivots. Volume is a lie detector, okay, telling us whether a move is for real or not. When theres a small move on volume technicians ignore it. If theres heavy volume they drill down laser like to see if its a precursor to Something Bigger. Chartists are at all times looking for accumulation on big volume or distribution. Thats a synonym for selling of the stock and that can telegraph a big decline. They measure it by something called an accumulation distribution line. When it is arcane charting of whether a stock closes higher on greater volume or versus lower on low volume, any brokage house will offer this on the website, it can go against the grain of conventional thinking. They go against the fundamentals sometimes and sometimes theyre right. We saw them being right in monsanto. In july of 2012. This was an unbelievable one i got wrong. I didnt care for the stock at the time, i didnt like gmos. But tim collins said the accumulation distribution line showed while they had down days, you had low lines here. On the heavy volume on the up days. Thats a sure sign that more money was flowing into the stock than out. Collins noticed a persistent accumulation or buying pattern or selling pattern convinced them that large funds were building positions to own the stock long term. Not to it for a quick move. It turns out what i didnt see, what i was so confused about was that monsantos stock had started to be correlated with the price of corn. Which was going higher back then. Because of new found demand for ethanol and government price supports. I was concerned about near term earnings and i wasnt thinking big picture but the chart showed you big picture. The work of collins told you not to fear, that Something Bigger was developing. He have dead right he was dead right and the stock turned out on to be a big winner when corn shot up taking monsantos stock up with it. They new the relationship, you were able to piggyback off their research by using collins work. Which isolated the stock. I got smoked but he saw it. Bottom line we need to look at lots of different indicators to spot big moves. Like distribution, overbought or oversold levels to those of us stuck trying to spot the changes in the fundamentals that are further out in time. Powerful moves do allude those in the stock market. Lets go to dan in illinois. Dan . Caller thank you for demystifying the market and helping us make it accessible. I want everybody to understand their money. Thats what i want. How can i help . Caller thank you. I wonder if i start with a small position in a stock, a company i like and the stock keeps going up, the most it comes down is maybe 2, 2. 5, how can i get a more sizable stake . You missed it. Thats one of the things, my discipline will cut off the downside which is far more important than cutting off the upside. And if you bought a position in a stock and it kept going higher, you didnt get any more, well, its a trade and you have to take it. I know people dont want to hear that, but when you violate your basis and pay up, i can show you for years and years for my Charitable Trust i have done the work. It is almost always a mistake. Chartists spot big moves and that helps them stay ahead of the game and no now youre ahead too. Head and shoulders is not only for dandruff, but i will show you how to use it for making money. And if youre a sharks, you dont want to miss my take on the two. And im taking your tweets. Go ahead and tweet me and i might answer your question on air. Stay with cramer. Jim cramer, youre one of my heroes. I look forward to your show every weeknight. Thank you so much for helping beginning investors like me. When you talk about the market, i just believe that youre spot on. Oh, i love it. Every night we watch you, i have learned and earned. Its a brutal, full contact sport. Fru from the time the whistle blows to the last play of the game. Markets absolutely getting hammered today. I know its not easy but i promise to keep fighting for you jim cramer. Leveling the Playing Field for all. The road is a tough one. But the payoff can be your greatest win of all. Join mad moneys Training Camp weeknights. We have learned a lot tonight about the key terms of Technical Analysis, now lets look at some of the individual charts that many of you find fascinating. Even as some of the patterns, they almost sound silly. As if theyre mimicking letters or geometric shapes or even body parts. I learned not to ignore one of the most simple but the most reliable patterns out there the dreaded head and shoulders pattern. The house of pain. And my Charitable Trust bought alcoa took a giant bath in red ink because of the ill informed or maybe early buy. Remember, i like to do mea culpas on the show. You can learn from my mistakes. We had correctly become enamored with the ceo, making it less dependent on metal itself and something it solidified when it split into two separate companies. It enjoyed a healthy run in 2010, rising from 13 nice rise up to 19. Not long after the stock hit 17 it dived back to 15, then reversed and went back up to 17. Then went up to 18 on the eve of the quarterly report. I thought the quarter when it was announced was a fine one, beating both the top and bottom lines. Most of the time thats all you can ask for. Then the stock dropped down to 16 and change on the news of that better than expected quarter. A few days later of, there we go, back to 17, i felt vindicated, come on. Now at the 18 level. So i went and bought more. I went and bought more right there. Could i have been more wrong . I dont think so. Because that 17 to 15 dive represented on the chart as a point a and b then follow the run to c 18, back to 16 d and 17 e do you know what that is . Thats a perfect head and shoulders pattern. Yeah, just like a humans head. That is it that is the most frightening pattern in the entire chart book and alcoa had traced it out. Just when i thought we were out of the woods. What was happening during that period that the head and shoulders pattern flagged. Europe and china began their slowdowns and started the turn that the ceo had started to execute. Still, it was aluminum. Over the course of the next few years, he made them less dependent. One that cost the trust quite a pretty penny. Mea culpa. One of the things i admire about technicians their intellectual consistency. An inverse head and shoulders pattern signals the opposite. At the beginning of january 2013 lots of people thought that the economy was taking off and investors were running for the food and drug stocks the ones that you dont need a strong economy. And they were headed to the cyclicals, caterpillars, the kind of rotation is the death nell for stocks that go higher only when the economy is slowing. However, tim collins said you know what, jim, you ought to take a look at pfizer because the stock was tracing out a reverse head and shoulder pattern. They would be precisely the kind of company i would shun, i would normally touch it then we the economy is speeding up. But look at this chart, you can see that pfizer traced out a Left Shoulder through october, and then started to decline aggressively in november. The stock bottomed to form the head. Then december it caught a rally and then a pullback to create the right shoulder. The key with this pattern is the neckline. The line that connects the head to the two shoulders. When a stock breaks out above that line up, youre about to witness a big big move. Pfizer was at 25. 80 and collins predicted it would be in for a monster run. I didnt trust this one whit. I thought, come on. I knew it was a bad stock. But collins said rotations smoeations. You want to close your eyes and buy the stock because Something Big was going on that could make it buck the prevailing trends. I didnt think it was conceivable, but he was right, i was wrong. The stock jumped more than 10 after collins told me to buy it. What caused the move . Soon after collins flagged this bullish reverse right here, reverse head and shoulders pattern the huge drug company decided to spin off the Animal Health division. It was a shocker, into the new and Public Traded Company in a move that created 15 billion in value. Who knew . The chart did. Heres the bottom line. Patterns matter. I dont know how confident you are in the situation, sell sell sell sell. At least some of it, please. When you see a reverse head and shoulders developing even if it makes no sense when it comes to which stock its happening to you have to consider buying some. Thats how powerful these moves are and the chart work on these two patterns is vindicated far hour often than the skeptics would think possible. Stay with cramer. Cramer, you are super. You are awesome. Im a first time investor. Thank you for inspiring me to get into the game. Your show is the best. Im so glad youre on tv. You have transformed me. Thank you, cramer. We have run the gamut of technical trade tonight on the special show, including the head and shoulder and the reverse head and shoulders, but those arent the only ones to tell us the truth when the fundamentals give us little insight into the direction of stocks. One chart type we have come to love on mad money is known as the cup and handle pattern. We have seen it so often its so reliable, i have used it to keep myself in stocks that i might have otherwise been turned off on or shaken out by. Take the stock of cramer fade dominos. We got behind the pizza franchise back when it traded down to 10 bucks and then thing you know the exhibit had some sideways action. It began to drift down on no new news. I hate these kind of churning situations because im paranoid enough to think i dont know something and other guys do. When the company isnt talking, at the thats when the technicians are most needed. So i went to ed ponce, i asked for his help to divine if a dominos moment had come and gone. Take a look. Heres what he sent us at the time. When we reached out to him the stock of dominos had begun to drift back up. You know what . We would have blessed it. Telling oyou to sell. Maybe ring the register. Take the big gains for the viewers so tempting right. There ponce told us to do opposite. That little advance back up was the sign that all was well and you had to load up with dominos stock. He said it was a special moment. He was anxious to show us why. With that return back up to 36, okay, dominos was tracing out a perfect cup and handle formation. Thats right. A pattern we had found as reliable as the head and shoulders in the predictable. You caught the begin of the cup at 36 bucks, then the slope down to 28 was the base of the cup was. I was nervous right there. All right. He told me not to be. The stock climbed back to 36, on the right side of the cup and then a 37 a little sideling to sidle to 37, 38 and thats the beginning of a handle that almost always signals a much higher move. It always goes like that. Very reliable. Sure enough, ponces work nailed it. Dominos proceeded to double and then some. It turned out that the stock was consolidating, ready to power higher in the next big move. This was positive action. Dominos right there what they were doing they were embracing technology. The web and the cell phone, facebook, eliminate order takers, let the customers place orders directly via the net. We would have left a double minimum on the table if we hadnt gone to ponce. I thought monster beverage couldnt go higher. I kept hearing that red bull was crippling them and the possibility of the regulatory intervention in the business. Check this one out. He said that for months the stock of monster had been bouncing off the 100 day moving average. The blue line you can see. Every time it looked like it was going down, right, it rebounded. Look at this. Rebound, rebound, rebound. He said that it was tracing out a series of triangles. Also known as flight pattern. You get a flat ceiling of resistance and the upward sloping floor. See that . When it hits the new line of resistance it punches through. When you get the short term consolidations that are preludes to a continuation pattern you dont have to worry about a stock running on empty. As a matter of fact, you had to buy this thing with both hams every time. Proceeded to jump to 79, and those who would have been less negative, had they known about it. They were worried about the government intervening. Monster is tied up in cocacola. And in a deal that rocked the Energy Drinks and theyre here to stay. Once again, i would have been shaken out of this stocks move if it werent for ponce and his chart hand holding. A lot of variations of the triangle and pennant formations. Look at this chart, collins identified this as a big move up. Citigroup, everybody hated it in june of 2010. Where the lowest kept going higher. He loved this right here. This is whats known as a wedge pattern. Its as reliable as the pen nna and triangle. And we rely on carolyn boroden. You have heard of the fibonacci patterns and we like the Commodity Futures Trading Commission to examine when too many hedge funds are leading the wrong way on the commodity and we have to veer in a different direction for success. The bottom line technicians and fundamentalists can coexist, make peace with them both and youll make a whole lot of money than if youre blind to one or the other, and certainly to both. Mad money is back after the break. Im jerry bell the second. And im jerry bell the third. Im like a big bear and hes my little cub. This little guy is nonstop. Hes always hanging out with his friends. Youve got to be prepared to sit at the edge of your seat and be ready to get up. Theres no deep couch sitting. Its definitely not good for my back. This is the part i really dont like right here. doorbell whats that . A package its a swiffer wetjet. It almost feels like its moving itself. This is kind of fun. That comes from my floor . Eww this is deep couch sitting. Deep couch sitting hey, cramerica, youre look for finding big moves an on twitter whats trending can also tell you a lot. Today im counting down the top tweets to see whats trending. We have a feel good tweet. Thank you for all the good advice, thanks to your good work and saving and investing, i retired at the age of 58. You know what, own a lot of the stocks and the stocks dividend. Keep reinvesting. My 19yearold son wants to save for retirement. Keep up the great work. Its boring as all get out, find a s p index with low fees. Once theyve put 10,000 aside, then they can focus on individual stocks. Thats the rules, im not varying them. Next a shoutout, a tough one. Dont let the haters get to you, jim. Keep doing what youre doing, stay above their pettiness. Periodically i get tired too and i get angry and i get a little feisty. But what i like this is my little zone heare. Its nfl, you come into my box, you have to be tackled. Im not looking the other way. Next up, you want new investors to match out before investing in single stocks, 401 k s, okay to invest . This show is incorrectly known as a trading show where we dont like index funds. We demand you in be in index funds. Sorry for the misinterpretation by you. Last but not least, excited to have found the jim cramer show at a young age. Its a load of valuable information for free. I only wish my mom and dad were still alive because then finally they could say, hey, i told you, jimmy. Stay with cramer. All right. I like to say theres always a bull market somewhere. I promise to find it for you here right here on mad money. Im jim cramer. See you next time imagine a store with no signs in the aisles, a store that doesnt bag your purchases, one that never advertises, where you have to pay a fee just to walk in the door. Who in the world would shop here . As it turns out, about 3 million fanatically loyal customers every day. Its called costco. I love costco. I bought ground beef. Lawn furniture. A television. I bought my Engagement Ring here. A chain of strippeddown warehouses thats become a sensation at home and abroad. [ speaking chinese ] but its crowning achievement convincing you