They know nothing after a day where the nasdaq climbed. 30 , although we were much higher most of the day, this feels like one of the moments where the bulls are trying to have it both ways on a bunch of key issues. Thats not good. Some things are mutually exclusive. Today was a goodlooking day that was actually quite ugly yes, the inside didnt lock like the outside. And you know i dont think you should judge a book by its cover. I know hope springs eternal. But today we saw too much hope too much hope springing eternal. And some of these hopes simply cant be reconciled. So they wont work in the end. What do i mean you cant have the bank stocks keep going up while the financial tech stocks also go up its either one or the other, because Portfolio Managers only go all in on fintech when theyre scared to own the banks. You shouldnt have a rally in old tech coupled with a rally in new tech that doesnt work. They tend to trade in opposite directions today you had the soft goods stocks running right alongside retail the soft good stocks are a recession place. The retailers are economic expansion place. You see how thats problematic so what is going on here where the heck did the rotation out of one and the other go . Why does it a pure play on industrials were able to buck the upward trend, and only because some of them gave downbeat analyst presentations today. Its simple. I know the answer because ive been around for a while. Somebodys wrong [ buzzer ] this markets presuming this things are good everywhere, and i know thats not going the pan out, because it never pans out that way let me explain for a long time, this market has been hemorrhaging money. Individual investors have left this stock market in droves sell, sell, sell, sell, sell, sell, sell, sell, sell hiding their money in bonds seeming at any level in many ways stocks are still discredited asset class. These days the marginal buyers tend to be pension funds, individual investors buying Investment Funds for retirement or companies repurchasing their own shares who can blame them for staying on the sidelines stocks do trade erratically. There is no consistently whatsoever, and weve now rallied for seven Straight Days, a pretty long winning streak that means the buyers will soon be exhausted more on that later the lack of new capital coming in often means you get whippy rotations. Depending on whether the Interest Rates are going up or going down but not today. Today nearly everything rallied. Look, while id love to believe the reason why that is its a tsunami of the new money coming into the Market Driving everything higher, the statistics say otherwise in fact, were experiencing one of the largest migrations from stocks to bonds in ages. No wonder a big ipo that came today, a smile direct could be one of the biggest first day busts in years if you bought at the opening, you got hammered which brings me to the real explanation for the all too rosy scenario i believe some of the buyers will be plain wrong, and once the smoke clears, they are likely going to lose a lot of money. First, lets talk trade. Right now buyers are under the impression that we may be having a fall in our trade war with china because President Trump extended a goodwill gesture by pushing back the next tariff bomb by two weeks. Think of it as a birthday present. In return last night, the chinese said theyd be willing to make an interim deal on trade if the white house would be willing to separate purchases of goods from their other more serious demands, like intellectual property enforcement, getting rid of the bogus joint ventures when they make our Companies Join with local partners so they can steal all our ideas. Sound good just one problem its a complete misread of the situation once again by the chinese. They just dont get it well, i think china may be suffering something substantive, youve got to remember why President Trump started the trade war in the first place its because weve been getting kicked in the teeth for years. See, initially it was focused on the trade deficit. If the communist party bought a lot more goods from the United States, they probably could have nipped this whole thing in the bud but they didnt. Now the president is digging in his heels. The stuff that really matters as far as im concerned, and thats why the chinese response to the president s twoweek reprieve is so tone deaf were way too late in the game for them to be appeased by a soybean pie, for heavens sake chinese, what are you thinking a story floated earlier this morning that the president may want to do deals soon was erroneous, according to my sources. The truth, without some concrete change in china that undoes years of unfair practices, dont get your hopes up. So the people who think were close to a trade deal, people who are buying lots of stock who benefit relations with china, think apple, starbucks, the semiconductors, theyre going to be disappointed. Thats what im betting. Were seeing something similar in the bank in the fintech stocks the people buying bank of america and jp morgan are betting the economy is going to get better, which will cause longterm Interest Rates to rise and make the banks more profitable on the other hand, on the people buying visa, mastercard, paypal are wagering that the economy will weaken, rates will come down, and you want to own the secular growth stories that can still put numbers in a slowdown. Something is wrong i suspect the buyers of the bi i dont see much to indicate were really getting stronger economy. For that happen, the fed needs to cut rates, and they need to cut them big and soon. And that would give us the boost we need. But i fear fed chief jay powell will want to be measured hell say we need to see further slowing before he cuts again when the fed meets next week plus, it probably doesnt help that the president does keep calling the fellow a bonehead and demanding that he cut rates aggressively dont get me wrong we absolutely need lower Interest Rates the president is dead right. Were totally out of sync with the rest of the world. That is not a refrigerator you catch more flies with honey than vinegar vinegar is good for descaling the keurig, by the way im not sure trump will be able to convince powell to do what he wants. At the end of the day, either the fed cuts or doesnt. They cant do both at the same time, right . Im bet theyll be too cautious which means the buyers of visa and mastercard are right and the buyers of big banks . No then the consumer packaged goods place. We buy the former when the economy is hot and the latter when the economy is stalling in this case im getting both sides are wrong. I feel like the Retail Stocks have had much too much of a good thing here and need to be trimmed. A and the consumer packaged good stocks are way too spiff and need to be trimmed finally, there is old tech versus new tech. The old tech is supporting personal computers and cell phones new tech is the cloud. Old tech is betting on getting a trade deal some time soon. You know how i feel about that new tech is taking off because these stocks have been hammered. Ive trust the cloud. Im suspicious of the cell phone sales, and frankly, i wasnt crazy about the numbers from broadcom this very evening one exception. This remarkable rally in apple is about the watch and the Service Revenue stream growing to the point where they the smooth out the sales of hand sets while having markets go up in earnings shares i all of the sudden say the same thing. Repeat after me. Own it, dont trade it even apple deserves a breather after a truly remarkable run trillion Company Bottom line, in all these cases its possible that both sides could be right, that im too negative at the same time, though, while it can happen briefly like it did today, you know what in my experience, that never lasts for long, and it usually doesnt end happily ever after i need to go to casper in oregon casper caller happy thursday, and thank you for all you do for those of us who learn so much from you. Oh, casper, youre terrific boy, did my daughter love her stay in oregon she has moved on, but wow, what a beautiful place. Caller it is i want to let you know i watch your show every day. And if i cant be at home to watch it, i make it a point to record it. Wow. Caller i do not miss you at all. I love it the show has been around a while. To hear that is the great verification its going to continue to be around for a while. Caller one more thing before i get to my question i know you want me to hurry. Im amazed at your energy. Im a late nighter as well before i go to bed, youre on talking about how the stocks are moving that day and early at 5 00 and 6 00 in the morning and at the end of the day youre there telling us how we can get the mad money in our bank. Youre terrific thank you. Hey, by the way, speaker of the house nancy pelosi has the same hours. Same hours okay lets go to work caller all righty. In april, i am a chocoholic. I love everything hershey. So ive got hershey stock in april, added to my portfolio, and its gone up and then down, and then went down down, and up up up, down, down, down. And this is down again and i cant figure out whats going on with hershey, and i read that there could be soon a shortage of cocoa. There, there is now here is the problem. Should i cut the fat out of my portfolio the stock has moved up way too much, and ive got to tell you, as much as i believe in the company, there was a downgrade today by Sanford Bernstein that made a lot of sense. All the big money that can be made in this i think has been made where have you been all my life . And thank you for the kind words. Nate in colorado, nate. Caller jimbo, whats going on i dont know. Kind of typical day. Doing a little fantasy how about you . Same old, same old. Hey, i heard your segment yesterday on the Retail Stocks, and i was shaking in my boots a little bit but i got a quiet for you on tailored brands, tlrd. Ooh caller theyre not part of the ldo, or private equity space you warned about yesterday, but i want to hear your thoughts. You got to stay away. A lot of people were in for the dividend i think they are this is i dont want to call it a disaster lets just call it something you should not own dude, it was really remarkable how bad it was, frankly. And just, please, dont go near it, all right . All right. You cant have all these contradictions this is not like its not like angles, okay. Marty or the other guy one side has to be wrong this action cant last for too long on mad money tonight, cloud strike is down that a red flag or a prime time to strike . Ive got the exclusive of w the ceo. Then its a pretty decent moment for stocks, but ill tell you why before i would think twice before buying into the end of the day weakness. And retail pop doesnt seem to be dying down. So why everlane opening a beautiful store in brooklyn . I got a chance to check out the space, speak to the ceo and find out what sets them apart stay with cramer 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 light beer youve been waiting for has arrived. Lower carbs. Lower calories. 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The last few weeks have been wonderful for the average, but theyve been devastating for many of the hottest highflying stocks, especially the Cloudbased Software security place. The rotation out of this cohort has been brutal, and right at the epicenter of the carnage, crowdstrike. Weve talked about this one before crowdstrike is a Cyber Security play with a twist. Their platform is based on the cloud, meaning they can harness a lot of Processing Power to protect all of their clients systems from on premises computer, cloudbased environments to smartphones. Plus they use ai to identify vulnerabilities and future threats. Thats exactly what this market loved a few months ago so when crowdstrike became public in june, the stock exploded higher out of the gate, the ipo priced at 34. The stock opened at 60 it surged to 101 at its peak since then its been pummelled the stock down nearly 30 points over the last three weeks. Then the Company Reported last thursday night, and if you were hoping a great Earnings Report would turn things around, well, crowdstrike delivered what i thought was an excellent quarter, a substantial top and bottom line, get this, 94 Revenue Growth management gave better than expected guidance. But nobody cared the next day the Stock Plunged more than 12 . This whole group has tud suddenly gone out of favor in the wall street fashion show and investors are betting the competition is heating up in the Cyber Security place even expensive stocks do get cheaper as they go down. So could this be a buying opportunity . Lets take a closer look with george kurtz, the ceo and founder of crowdstrike mr. Kurtz, welcome to mad money. Good to see you. Good to be here. And congratulations on all your success in many different ventures so straighten things out for us. You did have maybe the Fastest GrowingCompany Quarter that ive seen this year. And you delivered everything people wanted. Why dont you tell us why you have a proprietary situation, and how we shouldnt be fretting as much as people might be doing . Sure. I think one of the things that is really important to understand about crowdstrike is we focus on stopping breaches. And this has been one of the real challenges in the Security Industry for many years. Just about every breach youve ever read about had a firewall it had antivirus and they were still breached so part of what we wanted to do at crowdstrike is redefine end Point Security, but do it from the cloud. If you think about cloud pioneers, a salesforce, a servicenow, a work day, there really was no security cloud. Right. When we started the company in 2011, we thought we could be that fourth pillar of security, or cloud computing, cloud strike i have to believe amazon web security services, which weve had on the show is a partner of yours. You couldnt get a better marquee name absolutely. Amazon and aws is a great partner for us as i talked about on the earnings call, weve got a lot of momentum with their marketplace, and were protecting a lot of the worlds leading workloads, whether theyre in amazon, azure or even the google cloud i know that when i talk about what how proprietary you are, other people immediately said wait a second, they had a partnership with del vm just merged with carbon black that is going to spell the end of their relationship with dell. And i said thats not necessarily the case well, the thing about dell and secure works where we have our partnership, theyve always had a Customer Choice model. Theyve always had the option to pick various technologies. And what we found is that customers want the leading cloud native technology, which is crowdstrike, which is why were growing so fast, which is why were a leader in the garden of magic quadrants. At the end of the day, for us its business as usual we believe the customer wants to have the best security and crowdstrike it is. The other day escale, a really good company talked about how its taking longer to close big deals. And that was int my people are considering zscale versus others is that a correct interpretation and have you found it harder to close large deals . We have not found it harder to close large deals in fact, weve closed big deals in a day, particularly when you see these ransomeware attacks. You see organizations, state governments being devastated people realize we have the technology to prevent against these breaches and devastating attacks pioneered with artificial intelligence. So when there is a time of crisis, actually our sale cycle shortens now when people hear the term end point, we dont have some people may not be as sophisticated. Tell people what an end point is and why you protect it so much. Sure. When we say end point, we think about workloads. But an end point can be a pc it could be a server it could be a cloud work load. It could be a mobile device. It could be an internet of things device. And when we say end points, we really want people to think about workloads and the proliferation of workloads as they go forward is going to be something we can take advantage of i dont think people can quite grasp the magnitude. Annual recurring revenue increased 104 yearoveryear. Youve been around in Silicon Valley have. You ever had anything this your career that match that i have not seen this growth anywhere as you pointed out, the Fastest Growing ipo ever its just been tremendous. And i think security is one of those areas. Everyone has to have it. It is so topical to stop breaches which is part of our success. On your conference call, you talked about how there were three companies that recently i dont use the term give up, who sold themselves. What seemed interesting to me, thats basically saying you know what they cant compete with crowdstrike. That too hyperbolic v