Transcripts For CNBC Mad Money 20151228

Related to the companies i study and not the shape of their charts the off the chart segment is both ant thet cal to my traditional stock picking methods. I know from your feedback on twitter that youre interested in this annual sills and its proven itself time and time again to get a lot of people involved at the right levels. Not for me as i explain and get rich carefully where i deaf vote a whole chapter to charting have i become a chartist myself. I single out stocks to research and i overlay them on my broader world view at the moment. Chartists could care less about this stuff, they often dont care what the company does. I wonder if they could do their jobs with the Companies Names blacked out. In fact, i am sure they could. Some of them hate the distraction of knowing much at all about a company for fear it would bias them against the stocks chart. Now, i have become pretty proficient at charting over the years but i rely on the work of professionals to learn techniques that i can in turn 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 become reliable to the point where im pretty astonished at how accurate they can be. I guess you have to call me a longterm believer. Thats why i have started nearly every saturday morning for the last 30 years reading the standard and poors trend line daily action stock charts formerly on paper now on Electronics Distribution and they contain hundreds of charts, i match those charts with the patterns i have learned over time. All the Research Available for the most winning charts and they become segments on the show you see later in the week. Why do the charts work . People always want to know. First, you must consider them as if they are footprints at the scene of a crime. These footprints trace out what big Money Managers might be doing with their buying and selling of dollars. These portfolio at large funds often know more than others including you and me. The charts of where their money goes, the charts of the stocks, put together clues that these big boys leave. Second reason to care, there is a remarkable selffulfilling nature of charting stocks. So many professionals look at these drawings and take them to heart that they will simply avoid stocks with predictably terrible charts and find stocks to own stocks that have had positive moves in the past. When i worked with karen cramer she is a veteran chartist at my old hedge funds she would look at the charts each morning seeking one that stood out as potential break outs and break downs and had she research the ones with the most predictable patterns to get a handle of what might be going on. We got some of our best ideas from some of those brainstorming sessions. To produce excellent short and longterm results. All of charting Technical Analysis starts not just with the pictures of individual stocks but also what are known as the internals. Internals. Patterns about stocks in the aggregate that give you clues to the direction of the entire stock market. For years ever since the Great Recession that showed the inherent weakness in our financial system, systemic risk, there has been tremendous skepticism about any advance of stocks. While the systemic risks have been reduced i know each rally creates a worrisome set of risks. Many of you fear you are coming in at a level that cobble too late, too high and you will lose money either way. Sell. Sell. Sell. Could Technical Analysis includes inld karats to help you kerm the overall direction of the market. Sometimes technicians everything hinges on putting together the charts of individual companies and the charts of the bigger averages to create comp sons that elucidate and illuminate conclusions about true market strength. They are looking for what is known as confirmation of a move to detect its legitimacy. I think confirmations are incredibly important to the safety of a move. They need to be explained closely. The most important and obvious confirmation, lets say the dow jones average hits a new high, historically that high will not be sustainable unless the dow jones transportation index also hits a high or confirms the breakout status of the dow itself. The dow jones transportation index is a measure of commerce, tracking trains, planes, trucks, freight foorgd, come on, thats really isnt that a good gauge, both the industrials and transports hit new highs i often tell you that the move is legitimate and it can be trusted. It is real. This is some of the oldest Technical Work dating back to charles dow the founder and first editor of the wall street journal who created the dow theory to validate rallies or defraud them. You often hear that i like how the transports with acting thats because im trying to see if the move has staying power. I look at the banking index, the housing index, i look at the semiconductor index, and the r it. H, thats that all important etf that encompasses the big retailers. I like to see all these indices move up in synch before i bless a market move for you. You get all these 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 these indices the whole rally could be a fake out and cant be trusted. The classic example, if you go back to the move up to record highs before the Great Recession, you will notice something pretty incredible if you go back and study it. You will notice that there was almost no participation among the financials, the retailers or the techs. Technical analysis got you out of that market before it was too late if you followed those indicators, did much better than the fundamentals. What are the other internals i look at . I analyze the advances in declines, figure out whether the rally is too concentrated. I look a market with good breadth with a lot of participation by different groups. I look at the new high and low ratio. It isnt easy to get on that new high list. The sector has not to be strong, third, Larger Forces the federal reserve, interest rates, politics, have to be aligned to make some stocks successful enough to get on that new list. That high list is is rare if i had tear tore. You run the gauntlet you have a good stock, a stock i probably want to buy when i need market pull back. And there are a lot of stocks on the new high list thats actually a terrific sign. So here is the bottom line, you may not be a technician but you need to know what the charts are saying and you need to know how to read the internals to verify a real move or a phoney one. Stay tuned and we will go over a whole lost of predicted patterns that diffuse pretty much everything we do around here, not just on the off the charts tuesday, but in Stock Selection every single day. Jim in michigan. Jim. Caller jim, hi. How are you . Thanks for taking my call. Of course. Thrilled that you called. Whats up . Caller i got a question for you. In the segment you were talking about secular stocks. Could you define for me once again, what a second u stock is and maybe give an example or two. Certainly. Look, this is a very important issue because its a term that gets thrown around, people say secular and parochial. A secular growth something is something that does not need the Gross Domestic Product to increase in order for it to be able to beat the numbers. Some of the classic secular grower stocks would be some of the biotechs, some of the retailers that have terrific growth. Gary, in california. Gary. Caller mr. Camy, booyah to you. Fwooia. Caller gary from california. My question is regarding dividends in a down market, sir. If youre accumulating dividends on a number of stocks as you suggest is it better to reinvest them in a down market or to take the money as cash and then possibly reinvest that in other opportunities . Well, you see, we dont know when a down phase is going to end and we know the power of compounding is an amazing thing so were going to stick always on this show i know it sounds pretty pedestrian but were always going to opt in favor of reinvesting because fortunes have been made through the power of compounding. Ive got to go with that regardless of the near term consequences because im thinking longterm for you. Fundamentals, oh, theyre key, but technicalities matter, too. Tonight im bringing you into the world of mastermind chartists so you can learn to see the whole picture behind a stocks moves. We know the chart is important but what technical tool can help you detect floors and ceilings . Then how can you tell if a company is overbought or oversold. 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. The lexus december to remember sales event is here. Lease the 2015 gs350 with complimentary Navigation System for these terms. See your lexus dealer. Were always looking for ways to speed up your Car Insurance search. Heres the latest. Problem is, we havent figured out how to reverse it. For now, just log on to compare. Com. Plug in some simple info and get up to 50 free quotes. Choose the lowest and hit purchase. Now. If youll excuse me, im late for an important function. Compare. Com. Saving humanity from high insurance rates. Tonight we are offering the best of the best of Technical Analysis, a onestop shop of everything you need to know to augment of your investing with the help of the best chartists in the land. Lets look at something, spotting bottoms for best entry points and examining ceilings for the best places to exit or sell. When you pick individual stocks you are betting from the moment you buy them that they are going to go higher. I know its a Pretty Simple concept but 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, its a terrible time and youre buying oblivious to the stock. My homework is done, lets go buy. Maybe its not the right moment. After all the works ive done on the off the chart segments i say youre being short sighted if you dont look at how the stock has done technically after youve done the homework. I consider looking at the chart of the stock you like as part of the homework. Get that in your head. Get it en gained into your thinking. Sometimes after finding bottoms can be lucrative. A good example, lets go back to the bottom of 2009. I had a sense that declines velocity was lessening, i had heard haines make his haines call based on his feeling. I know that doug that writes with me 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 any individual stock to recommend to you. I was looking for a situation that seemed as bulletproof as i could 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, it included a smashing rollout of the apple iphone which was going to produce record profits, had an outsized dividend, 6. 2 , the yield was much higher than any stock in the dow, the dividend was safely backed by the humongous cash flow. Still the stock kept plunging every time i thought it had solid footing. I waited for a few days when the stock seemed to stable bliez and decided that the level might be right and the stock could hold. Its best to check with a chartist so i did did. I actually brought in four chartists. Amazingly they all agreed that it had found a Strong Foundation and was worth considering for a sound investment. Take a look at this chart. First all four technicians agree that att had established what is known as a climax low at 21 back in the tsunami of selling that was this period. Okay. You just have to understand that we are just at one of these moments that was just so hideous. You can see the big lift in stock and then well, lets just state i dont want to give away the story. Thats where lots of sellers had capitulated, they capitulated right here, but buyers had started to step up to create a base. Okay . See the extended base. Or floor the stock at that level. They arrived at that judgment by looking at where the volume, the sum of all the transactions during that period had expanded to a level far in excess of a normal periods trading chlgt you can see there is a normal periods trading and then, boom, take a look at that. Thats a sign that the sellers had exhausted themselves, the volume levels showed most of the big Portfolio Managers wanted out of the stock they had fled it by now. At the same time buyers step up to meet the supply with a concomitant level of demand. Unless you got the climax there were so many more sellers and buyers at each level that they knocked the stock down. No base can form. Bad time to buy. A climax is a sign that those potential sellers who have been holding on for some time are finally giving up on mass. Big give up. Remember, technicians dont care where that might be the case they are just monitoring price and volume. When they see volume gets larger, expands but the stock doesnt go down that means at last the stock has found its floor so its time to buy. Its safe. Thats where the buyers are equal to the sellers in their power to determine the direction of the stock and thats a form of equilibrium. Its finally upon us. Okay. Thats the base. Thats going to happen when the stock takes out resistance over head. To examine the possibilities of a stock the technicians dont just look at the Closing Price and the graph that price against the previous days or weeks close, they dont just look and say that looks good, that looks bad. Thats not helpful because it doesnt yield a true picture. Instead technicians use what is known as a moving average to better represent the stocks price. It is taking the Closing Prices of the stock and adding those prices up and dividing the prices by the days in a particular measure period. Im breaking it down. For example, you can measure a moving average over a tenday period by adding up ten days worth of Closing Prices and dividing the sum by 10, plotting the number on a graph. Each subsequent day you add in the close. The four technicians i checked in with for att they all chose to use a long err term, they selected a 200 day moving average. Att had found a floor at the 21 level, that the stock had repeatedly boubsed off of, it kept failing, meaning couldnt get through, failing to move up above the 200day moving average. The data plotted it, they all had done the same amount of work and that created what looked to be a ceiling. So we had the ceiling, the 200day moving average, theres nothing you could do. They felt every time it got there the stock was capped. Then at last att cracked through the ceiling of resistance and thats the 200day moving average, that was the signal that at least att could generate a great trade or an investment. The old roof became a new floor. Here is your floor the 200 day. Every time the moving average went above the old roof it would create the possibility of a new floor. This pattern emboldens buyers as they recognize the stock didnt break that new found base and bounced off of it. It didnt go back to where that climax low was. It held. Looking back at the beautiful bottoming that we see here with att, it now seems like childs play, doesnt it . Of course the stock is going down yet at that moment it was anything but easy bau at the same time these technical analysts were saying the bottom is in and it was time to buy the fundamental analysts were scared out of their wits. They were all scared to death right here. Some were even worrying about pension obligations that could cause the dividend to be slashed, something that was way, way wrong, but it scared the heck out of me, remember how many people are in this stock for the dividend . That base, that floor gave the stock is launching pad to blast off in an almost Straight Line into the 30s, one of the biggest gains a safe stock could ever give you. When you see this reliable pattern, despite what the fundamental analysts might be saying you have to use the discipline that these technicians give to you pull the trigger and take advantage of a fabulous buying opportunity that might otherwise be overlooked after the market takes a real is that lacking. Never took it out. Way up. After the break i will try to make forks. Technical show. Whether a stock is overbought and therefore ripe for a pull back or oversold maybe ready for a bounce. You determine whether a stock is overbought or oversold by charting the ratio of higher closes also known as the relative strength index. The relevant strength index is the momentum os later that measures the measure the stock is going. Maybe that of a larger index and we measure the price action historically. Were always looking for anomalies where strength stands out because thats the sign of a pending move. Perhaps a momentum switch that with he wouldnt know if we read the research on the stock. I often turn to bob lang and tim collins. Many technicians vary the length of time over which they measure relevant strength, but Brian Collins like to use ten days, two weeks to get a bead on the relevant strength of the stocks theyre looking at. Theyre looking for any pattern that reverses the action of the previous period thats the sign that a breakout might be upon us. They love strong relative strength situations but they also like to time their buys after pull backs, to get a better entry point. They care about bases. Typically when a stock gets overbought it is ripe for a pull back because overbought stocks, ones with many buyers, tend to snap back after theyve gotten too far away from their longer term trend line. The inverse can be true, too. A stock can fall so far so fast that you should expect a snap back because its technically oversold. We see these patterns constantly. They are reliable indicators that a change in direction is about to occur. These are terrific action points. If you are debating buying a stock after you have done all the research and find the stock is overbought i usually tell you to wait for a pull back. That almost always comes. Thats because they have done enough chart work to know that the vast majority of stocks overshoot directions and then retrace some of those moves back to better entry or exit points. A retracement isnt necessarily negati negative. Charting is tricky. Periodically some stocks are so strong they break through all the ceilings of all traditional significant measurement periods and then they stay overbought perhaps for weeks at a time, defying the historical trading patterns that trap them within the bands of extremes. They defy the notion of thor inevitable gravitational pull and just cant be contained any any of the various ceilings that overbought conditions usually bump into and come crashing down from. When you spot these highly unusual moves, do you know what, you may have to strap yourself in to get a real moon shot and lets take a look at this one. This is what i mean. This is rare, but when it happens its big money. With he saw it occur in july of 2009 as Dan Fitzpatrick pointed out to me using an os later, thats another momentum indicator that helps spot a bottom. This summer the stock of Las Vegas Sands one of the largest Casino Companies had repeatedly stalled at the 10 buck level, falling every time it hit, boom, boom, boom. You know, just not working. Okay . But when the bulls finally broke out of the corral there was no stopping them and the stock gained all of the strength. Thats a very rare pattern. Do you see this thing, it 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 a positive move in the book might be taking place. At any given time i expected a pull back but, no, ud that gigantic longterm overbought. This stock proceeded to go from 10 to 48, pretty much in a Straight Line with no substantive pull back to speak of. And overbought condition that can stay overbought is a golden opportunity for a huge move. Im right back to being overbought again. Remember, i like to marry the fundamentals with the chart so im not too dependent on the pick torls but what was happening underneath this chart that it was able to stay overbought for so long. Thats when the chief locusts of profits for Las Vegas Sands went from being vegas to mcccauw. The charts told you about the transformation. They werent thinking mccal here, the chartists were thinking theres buyers lurk, the volume is another key tool, they use that to spot pivots. We often say volume is a lie detector. When there is a small move on light volume the technicians ignore it, but when there is a small move on heavy volume the chartists drill down laser like to see if its a precursor to something bit bigger and portrayedable. Chartists are looking for accumulation on big volume or distribution, thats a sin owe nim for selling of a stock and that could telegraph a big decline. They measure these moves by an accumulation distribution line. When the calculation of the accumulation distribution line is arcane involving i know it is charting of whether a stock closes higher on greater volume on any given day versus lower on low volume, i care passionately about it because it can is go against the grain of conventional thinking of stocks. We saw them being right in monsanto in july of 2012. This was an unbelievable one that i completely got wrong. Thank heavens for the chart. I didnt care for this stock at the time, i didnt like gmos, i was biased, Kim Collins Kau it another way. He said the accumulation distribution line showed that while the stock had down days they were on light five so all the down days you had low volume and heavy volume on the up days, thats a sign more money was flowing into the stock than out of it. He noted such a consistent persistent accumulation or buying pattern versus the distribution or selling pattern convinced him that large funds were building petitions to own the stock longterm, not to rent it for a quick move. It turns out that what i didnt see, what i was so confused about was that monsanto stock had started to be correlated with the price of corn, which was going higher back then because of new found demand for ethanol. I was far too concerned about near term earnings and worried about a shortfall and wasnt thinking big picture but the charts showed you big picture. The work of collins told you not to fear. It was showing you that something bigger was developing than just the quarter. He was dead right and the stock that i would have kept you out of turned out to be a big winner when corn shot up taking monsanto stocks and its earnings up with it. The big boys knew the relationship with corn and monsantos business, you were able to piggyback off their research by using collins work. I got smoked. He saw it. Bottom line, we need to look at lots of different indicators to spot big moves, like of accumulation distribution, despite turns that might not be visible otherwise. Powerful moves can and often do allude those who are only focused on the Underlying Companies and not the action of the stocks themselves. Lets go to dan in illinois. Dan. Caller cramer. Booyah. Thank you for dee mystifying the market and helping us make it accessible. Thats what i want. I want everybody to understand their money. Thats my goal. How can i help . Caller thank you. Im wondering if i start with a small position in a stock, the company i like, and the stock just keeps going up, the most it comes down is maybe 2, 2. 5 , how can i get a more sizable stake . My discipline says you missed it. My discipline will cut off the the down side which is far for important than cutting off the up side. If you bought a position in a stock and it kept getting higher and you didnt get any more its a trade and youve got to take it. When you violate your bases and pay up i can show you for years and years and years from my travel trust i have done the work. It is almost always a mistake. Chartists use all different types of indicators to spot big moves, that helps them stay ahead of the game and fundamenta fundamentals. Much more mad money ahead. Head and shoulders isnt only used for preventing dran druf. Im telling you how it can help you make money. Youre not going to want to miss my take on the dynamics between the two and got a burning question, im taking your tweets, go ahead and tweet me jim cramer, madtweets and i might answer your question on air. Stay with krarm. Weve 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 orgy metric shapes or even body parts. I learned not to ignore one of the most simple but by far the most patterns out there, the dreaded head and shoulders pattern. Because of that ill informed or i say early buy. Remember, i like to do me a cull pass on the show, i like to show you what i did wrong. We had become even marred of the great work at alcoa. Something it solidified when it announce it had would split into two separate companies. Why dont you take a look at alcoa. It enjoyed a healthy run from the winter of 2010 right up until february of 2011, rising from 13, nice rise, right, up to 17 as its earnings trajectory seemed to have finally turned around. Not long after the stock hit 17 it took a quick dive back to 15, no reason i do discern, then quickly reversed and went right back to 17. Then it 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. What worried me was that after initial positive reaction the stock dropped down to 16, 16 and change, on the news of that better than expected quarter. A few days later its back to 17 and i felt almost vindicated. Come on, alcoa ready to take a challenge at that 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 bs then followed the run to c, 18, back to 16, d, finally 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 slow downs, aluminum came into glut. He could control his own company but not the price of the commodity itself. Over the course of the next two years kleinfeld was able to reinvent alcoa to be less dependent on the commodity but that came only after completion of the brutal head and shoulders pattern from a few years before. Remember again mea culpa. One of the things i admire about technicians is their intellectual consistency. If a head and shoulders pattern signals trouble an inverse signals the opposite. At the beginning of january 2013 lots of people thought the economy was taking off and people were running from the food and drug stocks and the cyclics calls, caterpillar, united technology, the kind of rotation is usually the death for stocks that typically go higher only when the economy is slowing, however, tim collins on and off the chart segment said you ought to take a hard look at pfizer because the stock was tracing out a reverse head and shoulders company. They would be the kind of company that i would shouldnt, i would normally never touch this thing when the economy is speeding up but if you take a look at this chart you can see pfizer traced out a Left Shoulder as it rallied through the month of october and then started declining aggressively, okay, in november, the stock bottomed to form the head and in december it caught a rally and a pull back to create the right shoulder. The key with this pattern is the neckline, the line that connects the head to the two shoulders. When a stock breaks out above that line it tells the technician you are about to witness a big move. The neckline was at 25. 80 and collins predicted it could be in for a month officer run. Given that money was pouring out of the staples and drug stocks headed for the industrials i was confounded by this i wish reverse head and shoulders pattern. I didnt trust it one bit. Come on, im a king of rotations i knew it was a bad stock but collins said rotations smmotations. Something big was going on. I thought it was in conceivable, sure enough he was right, i was wrong, the stock almost instantly jumped more than 10 after collins told me to buy it with both hands. Soon after collins flagged this bullish reverse right here, the bullish reverse head and shoulders pattern the huge drug company decided to spin off its Animal Health division into a new and Publiclytraded Company called zowetis in a move that created 15 billion in value. Who knew . The chart is it. Here is the bottom line, patterns matter. When you see head and shoulders pattern dont take any chances, 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 it is happening to youve got to consider buying something. Thats how powerful these moves are and the work on these two patterns is vindicated far more often than the skeptics would ever think possible. Stay with cramer. Weve run the gamut of Technical Trading tonight on the show including the head and shoulders and reverse head and shoulders setup that have big up and down moves. They can tell us when the truth when the fundamentals give us little insight. One chart type we have come to love on mad money is the cup and handle pattern. Weve seen it so often its been to reliable i have used it to keep myself in stocks that otherwise i might have been turned off on or shaken out by. Take the stock of cramer fave dominoes. We got behind the pizza franch certificate back when it traded down to 10 bucks and it traded all the way up to the 30s. The stock exhibited some sideways action and began to drift down on no new news. Im always paranoid enough to believe that something might be happening and i dont know about it and other guys do. When the analysts are iffy and split and the company isnt talking when when the technicians are most neat northeasted e. Into needed. I went to he had ponci and asked for his help to find if dominoes moment had come and gone. Take a look. Here is what he sent us at the time. When reached out to him the stock at dominoes had begun to drift back up. We would have blessed telling you to sell, we thought the thrill might have been gone and maybe you should ring the register, take the big gains for our viewers so tempting right there. Huhuh. In fact, ponci told us to do the opposite. That little advance back up was the sign he needed that all was low. He said it was a very special moment and he was anxious to show us why. With that return back up to, say, 36, okay, dominoes was tracing out a perfect cup and handle formation. Thats right. A pattern we have found to be as reliable as the head and shoulders. A total launch bad for a much bigger move. You caught the beginning of the cup at 36 bucks, the base of the cup at 28. I was nervous. He told me not to be. The stock clield up to 36 and when they got a 37, a little side to 37, 38 and that would be the beginning of a handle that almost always signals a much higher move. Handle always goes like that. Very reliable. Sure enough his work nailed it, dominoes received a double and them come from the base of the cup as earnings turned out to be accelerat accelerated. The stock was consolidating, ready to power higher on the next big move. This was positive action. Dominoes right there what they were doing they were embracing technology, the web and cellphone, facebook, eliminate order takers, let customers place orders directly via the net. We would have left a minimum of a double on the table if it werent for poncis guidance. I didnt go back to ponci when i was concerned about monster energy. I needed a chartist to give me the skinny because i kept hearing that red bull was crimping monster and there was the possibility of regulatory intervention into the regulatory drink business. He said that for months the stock of monster had been bouncing off its 100 day moving average. The blue line you can see. Every time it looked like it was going down, right, it rebounded. Look at this, rebound, rebound, rebound. He said that monster was tracing out a series of triangles also known as flag patterns, you get a flat ceiling of resistance and upper sloping floor. When the stock hits the new line of resistance it punches right through. Anytime you get these pendant formations that are pray luds to what is known as a continuation pattern you do not have to worry about a stock running on empty. As a matter of fact, you had to buy this thing both hands every time. Stock at 49, proceeded to jump at 79 confounding the naysayers including most short sellers who may have been less negative if they had known about this pattern or cared about it. Monster tied up with cocacola so Energy Drinks are here to stay. Once again i would have been shaken out of this stocks move if it werent for ponci and his chart hand holding. There are a lot of variations to these triangle and pendant formations. Take a look at this chart, big move up, citi group, everybody hit it in june 2010, the lows kept getting higher but the highs stayed the same. He loved this. This is whats known as a wedge pattern. Collins finds it reliable. We have also had tremendous success following the work of carol brodin. The fbi queen uses ratios found in nature. You have heard of fibinacci patterns. To examine when too many hedge funds are leaning the wrong way on a commodity and we have to veer in a different direction. The bottom line technicians and fundamentals can coexist, make peace with them both and i bet you will make a heck of a lot more money than if you were blind to one or the other and certainly to both. Mad money is back after this break. Our researarch shows that people really like how with directv you could put tvs anywhere and not see cable wires and boxes in every room. Why cant we get people to just say cables, schmables . Hold on, hold on, i really like what youre doing there because if we just add schma in front of something, it just doesnt seem like a big deal. Boxes, schmoxes. There you go. Cold sore, cold schmore. Yes scotch, schmotch what . Ill take some of that schmotch alright. Schmank you vo get rid of cable and upgrade to directv. Call 1800directv. [martha and mildred are good to. Go. Heres your invoice, ladies. A few stops later, and it looks like big ollie is on the mend. It might not seem that glamorous having an old pickup truck for an office. Or filling your days looking down the south end of a heifer, but. I wouldnt have it any other way. Look at that, i had my best month ever. And earned a shiny new office upgrade. I run on quickbooks. Thats how i own it. Hey, cramerica, in charts youre looking for trends, finding big moves and the meaning behind them on twitter whats trending can also tell you a lot mad money tweets anyone . Today im counting down some of your top tweets to see whats trending. First up we have a feel good tweet from dee thompson. Thanks to your books and hard work saving and end vesting i retired at the age of 55. I want you to continue to own a lot of stocks, you are not going to get a lot of income from other activities from other bonds and stocks compound, you get that dividend. Keep reinvesting. Here at src tall long tweets jim cramer my 19yearold son wants to save for retirement. Do you have any advice . We are going to start with an s p index fund, low fees, once theyve put 10,000 aside then they can focus on individual stocks. Them are the rules. Next a shout out from 8 at hs, dont let the haters get to you, keep doing what youre doing, stay above their pettiness. Periodically i get tired, too, and i get a little angry and i get a little feisty, this is my little zone here, its all nfl. You come into my box, youre going to have to be tackled. Im not looking the other way. Next up villa marin j. You want new investors to max out on single stocks. Again, this show sin correctly known as some sort of trading show where we dont like index funds. We are an investing show where we demand you be in index funds. Sorry for the misinterpretation by you. Last but not least at jack says excited to have found the jim cramer show at a young age. The guy is a genius with a load of valuable information. I only wish my mom and dad were still alive because then finally they could say, hey, i told you, jimmy. Stay with cramer. So youre a smsmall Business Expert from at t . Yeah, give me a problem and ive got the solution. Well, we have 30 years of customer records. Our cloud can keep them safe and accessible anywhere. My drivers dont have time to fill out forms. Tablets. Keep it all digital. Were looking to double our deliveries. Our fleet apps will find the fastest route. Oh, and your boysenberry apple scones smell about done. Ahh, youre good. I like to bake. Get expert advice for your Small Business at att. Com Small Business. Rt. I like to say theres always a bull market somewhere, i promise we will find it just for you. Right here on mad money im jim cramer and i will see you next time. Male announcer americans are worried about the economy. Many of them wonder if our corporate and elected leaders have the answers to our problems. In these tough times, some bosses are taking radical steps to discover how to improve their companies. Each week, we follow the head of a Major Organization as they work undercover alongside their own staff. [cheers] come on 8. 8. Whoo thats you. Look at that. Announcer this week, the president and c. O. O. Of the Mgm Grand Las Vegas poses as a reality show contestant competing for a job. Hi. Hi, paul. Im sandy, paul. Nice to meet you. Nice to meet you, paul