Getting too frothy for my taste. Now, what does frothy really mean beyond some sort of pejorative connotation involving overenthusiasm s p backs 77 and nasdaq declined. 34 a market that likes. When you get a game stop situation, a bunch of home gamers join forces to push up stocks, things get really frothy very fast. The stock went from 4 to 400 before falling off a cliff again. If you want to spot froth, keep an eye on the soaring stocks and figure out if theres anything real behind this boost or if theyre phoney before we get too negative, maybe it would pay to do a little investigating maybe not everything is frothy maybe some stocks actually deserve to trade higher. Hey, can you imagine maybe many do. I got to, lets do this. Which actually have substance. So we can draw conclusions about how dangerous this moment really is quantumscape, up 66 . This is a Battery Technology company geared toward electric vehicles given there was no other news, this one feels ridiculous to me. Theyve been using money for years. And the shorts got busted last month. My verdict, sell, sell, sell danger zone, Will Robinson okay froth death one. Second, roku wait a second. These guys reported dramatic upside because their platform has become indispensable crazy as it sounds, i think this one made sense roku had been written off as irrelevant that was clearly wrong a much better situation than we thought. Might be worth buying but i cant recommend it here because the companys losing money hand over fist. Still, their platform is flourishing with consumer packaged goods ads its incredible. Id say here. They had genuine growth this quarter. Nothing looks like a bank run. I love the idea. I think the stock is 42 is justified. Especially when you remember its still down huge from its highs. No froth same goes for number four. Zions bank. From salt lake city. I cant tell you how many times ive heard from people because they know ive got shows that this bank was bleeding deposits from the eyeballs. Hedge funds bet against it just like zion had net inflows. Even though the stock was up, i bet its going to have more room to run no froth number five. Tandem diabetics care. Very tricky. This company just got updated from what they say is the worlds smallest, durable insulin pump they had positive net income only once in the past six years with sales in the last three year years, not so hot. Stock was up 42 last month. Too frothy right here tandem no thanks. Coinbase up 38 great last month federal court rules crypto currency sold to individuals are not securities as part of a long running battle between the sec the ruling gave coinbase permission to keep doing what its doing, which is merchandising a lot of coins yesterday, another federal judge said the same. Said the opposite position in differing case so this is far from settled. Tough one. Coinbase reports on thursday and now i want to wait even as theres a 23 short position, enough to send the stock through the stratosphere if numbers are good jurys out right there. Turns out, sofi took out a tremendous amount of deposits. They have 6. 2 million members now. We interviewed the ceo when the stock was at 4 bucks when asked if the stock was in trouble, he said no. He was right stock jumped 37 last month. Probably not done. So far, the banks that are rallied deserve it but key numbers deliver weaker numbers weaker yet in this environment with such negativity toward the already downtrodden regional banks, didnt really matter. Both stocks rally respectively might seem frothy but in the case with the 6 yield i think should be bought the stocks never should have gone where they went to. Too cheap right here. Lyft reports next week after the stocks 33 run last month some on the backs of the shorts im going to say frothy. Sorry, david i have to say like i see it. David, i have to address that because hes one of our viewers. Number 11, palantir. This is a real Cybersecurity Company with Real Customers that has real money and sales even though its stock jumped 29 in july its more upside. You can see in the morning on the thing underneath the tv, it looks like its going up i think palantir is right here medium froth robinhood. Number 12. Theyve rallied not because of its new Retirement Program but because cathie wood bought a ton of it before switching and being a seller and blowing out of it yesterday. You know what, i think that will take the air out of this giant money losing stock that was being very nice there by saying that and could give up much of the 29 gain from last month froth. Number 13. Newell totally justified its 28 gain right now, its done uber nonfroth. Plus its profitable i think newells not frothy and can work its way higher. I cant believe i said that, but i like the Management Team finally, comerica. It rallied last month and i bet it has more upside given it has innate earnings power and a great name anti froth the bottom line. When you look at the biggest winners in the russell 1000 last month, im happy to say the vast majority of these stocks aside from quantumscape and robinhood represent real substance not just froth later in the show, well document some real froth but these stocks, i think most deserve their july gains but when you go under the hood, its a lot more grounded than we thought. Ian in florida hey, jim. Big booyah from florida oh, good to have you. Whats going on . Oh, just living the life. Thats what i said this morning. Last night when i was studying at 11 00, looking at different stocks, this is the life that i have chosen. Go ahead there you go. Investor club member as well yes i wanted to ask you about netflix. Whats your thoughts on netflix . Im long i think netflix has the second tier theyre doing with a little sub first of all, i want the netflix guys to come on because i revere them ive got to tell you, i am sick and tired of them not wanting to come on because i like them so much i think the stock goes higher. Tony in florida. Hey, jim. Tony be a club member for life yes, we are doing so well for the club i got an off site im running, its 42 days of club just kidding good to have you whats up . Also, so friendly, knowledgeable and help us out with everything we need and i want to thank you for that thank you this company is Getting Better each quarter and i have a small position and hopefully youll buy a lot of stuff. What do you think about chewy, if i should add to it . Its close to home because you know we lost marley. My wifes got another dog coming this is from an alabama kill center rigatoni im telling her we got to get pictures from chewy. Im a big believer and so is ben stoto who has a dog by the name oof reagans and says leave reagans out. I like chewy ed in new york ed hey, jim. I was wondering whats going on with jnj in the spinoff . So kenvue, its a really interesting split off where theyre going to have a big buyback. The problem is not jnj its one of my absolute favorites in the world the problem is the bar and their inability to settle to make it so the people most needy can get the money and everybody can move on so one of the Great American companies has left the portfolio and it drives me crazy because i think jnjs fan tastic trey in texas. In an effort to break my dangerous habit of texting and driving, i bought a motorcycle do you wear a helmet . I certainly do, jim then youre cool. Go ahead i just wanted to let you know im currently forming a retirement focused bike club the sons of 401. Holy cow. How do you like that now, i think the 401 should not put harley ira. I would not recommend Harley Davidson because its espepisod. Unfortunately, harley doesnt have it so i have to say no to that by the way, ed, club member, unbelievable tony, club member. These guys understand that all i do is work for the club. Someones trying to tell me i have to go faster. These stories are reasonable reasonable snapbacks, deserving. Its not really frothy im not kidding. Its not all right. Mad money tonight, what do you have rock steady. That stock fell today. Then we are continuing shark week where the heck is my shark for heaven sake . We are going to be with fib queen. Shes finally coming here to the studio you do not want to miss it because shark week continues on mad money. Dont forget, pinterest, they report after the bell. Im running the numbers with the companys top graph so stay with cramer now this most of the year, it collapsed today, plunging more than 7 widely panned quarter. Now this ones tough seemed like it was rallying because of real, tangible secular growth like the push toward reshoring after the supply chain crisis during the pandemic semiconductor build up, automobile batteries when the Company Reported though, they delivered and missed, disappointing revenues and earnings lowered its full year forecast for new order growth but, and this is a huge but, rockwell raised its full year Sales Guidance thats a rare miss and raise quarter. The problem, one of the key distribution centers, the company struggled to upgrade its capacity so could this be a buying opportunity or just a wobbly quarter . The chairman and ceo of rockwell, welcome back to mad money. Thanks, its good to be here. All right. Its pretty clear if you dig deep, go under the hood, there was something that occurred in the company that was one time only that made it so you did not cut your estimates but actually you raised them. Maybe you can explain to people. This could be a big opportunity. Sure. Over the last year, weve been looking at all parts of our operations to look at how we increase the capacity to handle the current and future expected growth so it started with redesigning our products to be more resilient. So that we made sure that we would have the component supply needed it was adding equipment in our factories and that latest move was to add capacity in our u. S. Distribution center. And while we factored in some time for the move, it lasted a little bit longer than we expected in may. The shipments have since recovered in june and in july but that shifted some of our business, some of our revenue from q3 into our fiscal year quarter four so be sure there were no cancellations. No pushouts. Nobody saying you know what, we dont need need plants instead, it was just happened to be this changeover underlying demand remains strong still guiding to 15 organic growth for the year in terms of shipments and we took steps during the call today to talk about the strong set up for fiscal year 24 in terms of orders continuing at a high level of between 8. 5 to 9 billion. Plus backlog thats expected to be with us at the end of our fiscal year of between 4. 5 to 5 billion. Some of these businesses i think should be aware of are amazing. For instance, semiconductor, up high teens tell us about that youre really at the center of what we know is the big buildout in this country but we cant do it without you theres a lot of industries that we look at that are in the middle of or maybe in early innings of generational high levels of investment so plenty of objective evidence that for electric vehicles and for batteries and semiconductor, were looking whether its to increase capacity in new technologies or its to reduce geopolitical risk, that were going to see investment continue on a multiyear period in these areas and semiconductor is a great example of that as were providing the Facilities Management systems the way for transport. Motion control cybersecurity. Assessments and remediation. Theres a lot of opportunity there. When i look at whats going on around the world and i see were trying to hard to automate, i keep thinking what taiwan semi told me. America doesnt have enough people to do the things they used to o. They dont have enough people to build things have we just been left behind because of our decision to go service and not industrial i think were waking up to the fact its so critically important to have that Skilled Workforce in the plant to utilize the technology the Technology Means nothing without the workforce, an enabled and engaged workforce whos comfortable with the technology and those two things working together are going to give us the opportunity to compete and win in semiconductor and in all these other industries whos going to do it . You have to find people. Youre competing against companies who do the same thing. We do have to pool of talent to make it so you just pick and choose i think we have to widen the aperture and make sure companies recognize it doesnt necessarily require a fouryear degree to be able to excel in these technician level jobs. Weve talked before on this show about our academy of advanced manufacturing. We take returning Service People and in a 12week, hands on program, equip them with the skills to thrive and to help these Companies Compete and win. Thats just one example. The next question i have is that when i met with, ive been telling people please dont bring up ai unless its for real nvidias telling me they can create a factory thats a factory before its real and save a lot of time and cut a lot of waste have you seen these digital twin factories . Yeah. Were just scratching the surface on some of the positive uses of ai in fact, we work with nvidia as we look at their industrial metaverse to be able to combine our simulation tools for factory equipment and to put it in a larger context of an overall factory. Were doing it with solar Panel Fabrication facilities and in think this is going to be a useful technology to help bring to the left if you will, a commissioning time to get this new capability online faster im glad we went over, it was not a rare miss, it was a changeover therefore the hiccup so when a stock goes down like this, high quality company, you can buy it. I want to thank blake. Always good to have you. Thank you to explaining everything thank you, jim. Mad moneys back after the break. Coming up, beware of the deep end the charts bite back check into chart week when we return my banking relationship was getting. Well, complicated. So, i broke up with my messy accounts and moved my money to sofi. Get up to 4. 40 apy, and up to 2m in fdic insurance. Sofi get your money right. upbeat music constant contacts advanced automation lets you send the right message at the right time, every time. constant contact. Helping the small stand tall. [soldier] take a look at this constant contact. Theyve left us a gift. [soldier] i think we misjudged them. I love horses. birds chirping [soldier] we should open the gate. Lets see what charlotte thinks. [narrator] at crowdstrike, we monitor trillions of cyber events to detect threats and prevent breaches before they happen to keep your business from becoming history. We stop cyberattacks. We stop breaches. We stop a lot of bad things from happening. Crowdstrike. Protection that powers you. The biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. It still does. What can you do with spy . To help us interpret the charts tonight, were going to carolyn, the brilliant technician who runs a training room also teaches her methodology at im. Academy you can also find her on twitter at the queen of fibs and this is a fantastic book by her. So you want to know more about the kind of thinking that she does a big believer in price cycles runs them through the prism of ratios im always surprised how well it works and boy, does it work. Tonight, were going to hear about one of her favorite setups the royal set up just to help you understand how she thinks to you can do a lot of this at home. Carolyn, way too long. Welcome back to mad money. Thank you so much youre such a pro im going the give you the chart, you go right to work. Im going to talk about the royal setup, but before that, i want to remind everybody at the price clusters, another great set up this is an example in bitcoin, this is a daily chart. This is basically where i had multiple price relationships we had a low to high retracement. Another low to high 1618 extension and also a 100 projection of a prior swing projected from another high. They were similar because this swing was 59. 88. This was 59. 50 besides that, we had some timing this high to low was 16 bars down so was this high low. Thats what were looking for. A trigger for you. Time and price coming together both. In this case, we had a price cluster that came in at 18,987 to 18,261. It held, held, triggered and rallied over 11,000 within the next month you can see both time and price using our work major home run in bitcoin. Next next, okay this is a daily chart of jpmorgan and this is an example of what i call a royal set up. It basically has all the daily mo moving averages on the right side for example, it has price above the 200 simple moving average, 50, and i use a 513 ema combo. With the five being above the 13, that is also bullish so basically, when we see that, what we look for is either a symmetrical pullback or price cluster. In this case, we ended up having a couple of levels between 141. 08 to 141. 39 it hit the zone. It held the zone and again, well wait for buy triggers but we saw a nice, healthy rally. Terrific call now you also saw an example of a royal set up in the price of a company about to report this week this is amazon but its historical so help us here okay. So again, take a look at where we are relative to the moving averages when you hit the actual zone what i saw was a cluster that came from a symmetry projection of prior swings. We also had an extension 161. 8 extension at a retracement and i think more projection. Cluster came in at 124 to 12 125. 08 it held, it held again, this is not suggesting you should buy amazon ahead of this quarter no, no, no. Past examples to understand how to look at it in the future. Why dont we have another daily chart of amazon shows you what youre looking for in terms of buying triggers actually in this case what i wanted to show was that there was also timing at the same time that we hit that key price area and one of the things that i look at again, i look at symmetry both symmetry and time so notice a lot of these prior declines were trhree to five trading days so that was included in the timing besides three other cycles that came together between the 10th through the 11th and i believe the low was made on the 10th again, nice rally up in that area incredible. Now to broaden things out. This doesnt apply to just stocks by the way, we have a chart of the spydr. Can you explain that to us same thing. I love the fact were above the 200 simple moving average. Do you start with that . You can look at all of the charts that have the averages in the right place and then a pullback and youll probably have a royal set up. Theyre so similar. And we dont know why. Again, we dont know why but they are similar they just tend to be. Youll s