Right . This quarter did nothing it did nothing at all today, at least, the dow climbed 135 points. S p gained. 7 . Nasdaq vaulted 1. 04 . Wow, breaking that streak, huh . You know what, i say good riddance to the first quarter. Because this market slaughtered some of the best highest growing companies and saluted the down and dirtiest industrials and techs that have yet to show any real growth. Im telling you. Now, what they did, they went out of the good and into the bad, and im tired of it. But thats the way it is. Ill talk about a rotation later. No matter, nobody i know was really talking about much about the market today anyway. They were talking about a new book. A book by one of the great writers of our time Michael Lewis entitled flash boys which asserts that highfrequency traders have rigged the market. Rigged the market against you. Do you know what i found was most shocking about this book . How about the fact that anyone finds it shocking in the first place. If you watch the show regularly, you know theres no news here at all about highfrequency trading in this book. Thats right. Flash points isnt revealing incredibly new nefarious force thats stealing money of your pockets. Its been an ongoing process where a group of rich and powerful funds and their stock market allies use super fast computers. They can take shares of that stock ahead of you and sell it back to you up a fraction of a penny. Those pennies add up. They make billions from totally legal front running. Longtime viewers know ive railed against this kind of parasitic behavior over and over and over again that lewis suddenly reveals. Ive been doing it ever since the flash crash of 2010 when highfrequency trading funds failed to buy merchandise that many thought would just thought they would at least buy underneath. And that caused ed bids to vani. To fall further and faster than anyone expected and the market ended up declining 900 points in the time between commercials on our network. It was a travesty. And i immediately brought on then senator ted kauffman, to ask what will be done about those who frontrun our orders. Well, he castigated the front runners on mad money. Also predicted the sec would do nothing because it didnt see anything wrong with this behavior. Kauffman was right and it goes on unabated as Michael Lewis points out. By the way, lewis will be on power lunch tomorrow and this is something i think you should see at 1 00 p. M. Tomorrow because hes right. Now, frontrunning is technically illegal. If someone in a Brokerage Firm knows of a big custom order, lets take to buy 100,000 shares of jc penney. And another broker right next to him buys 100,000 shares ahead of the customer and then sells it to him and scalps a penny, that person will be prosecuted, probably goes to jail. Yet, if a highfrequency trader runs ahead of that order and scalps say a penny, nothing happens. Somehow thats legal. Its absurd, but the sec has blessed this behavior by doing nothing about it. Oh, and by the way, theoretically, its impossible for these bandits to lose because theyre never at risk. They know youre coming with your order and they always beat you to the punch every time. As my friend the wellknown Investment Adviser bert doman points out, a pickpocket working his trade never has a losing day either. How about bigger math . If the New York Stock Exchange volume is 3 billion shares a day and the highfrequency traders account for as much as 70 of those 3 billion shares, thats 2. 1 billion, which at a penny a day yields 21 million picked from the pockets of all those trying to make money in the market that day. Thats 21 million every day. Its like a tax on trading that goes to a bunch of rich fat cats instead of the federal government. Now, i think its an outrage and ive been saying that forever. But the forces that back highfrequency trading and those who profit from it have successfully convinced the sec and pretty much everybody else except for Michael Lewis that theyre the good guys. Their argument, they provide electricity liquidity, meaning the markets are deeper because of their behavior and better off because of them. They actually say this stuff. They routinely blast critics, people like me, as being uninformed and unsophisticated. Even as friends from way back freely admit this what happens. Yes, thats what im saying. People who do this when i see them off the desk at a bar at a restaurant, they say, yeah, you know, cramer, i know. But look, this is the way we do it. Dont stop it. Not that i could stop it. Its a business of legal stealing. Which means, i guess, it isnt stealing at all. Even as i believe these highfrequency funds are right up there with Bernie Madoff when it comes to ripping people off. Now, its Michael Lewis turn to go after these guys. Hes an esteemed author who knows about wall street, extensive research, also worked on wall street. And i wish him better look than ive had trying to change things. The forces that favor highfrequency trading are far more powerful, much better organized than those who dont and they have a bunch of exchanges working with them. Thats how they get their money. Well, thats how they profit. The secs reluctant to halt innovation and has been sympathetic and downright deferential to the highfrequency mob. Perhaps this book will show them the light, especially given all the opponents that lewis revealed and how theres an alternative way to route trades, one lewis promotes in the book. Frankly, at this point, ive made my peace with these guys. This is one of those cases where you cant beat them and you cant join them. They rule the markets. They arent going away. Theyre getting bigger, theyre getting more entrenched as the traditional exchanges need their additional business. So, as half dozen people asked me on twitter today, whats the point of recommending stocks if i agree with lewis that its rigged . Simple, its absolutely rigged, but only rigged shortterm. You cant beat these guys if youre playing for tiny increments trying to make a living by trading in and out. Theyll always beat you. But these parasites are exactly what caused me to write get rich carefully. I wrote my book as an antidote to the arm they caused. We have to accept a new world ruled maliciously by highfrequency trading. And the only way to beat them is by investing in powerful themes that way youre not competing for pennies day in and day out youre going after multiyear gains where it doesnt matter if they scalp a penny here and a penny there. In the book i highlight, books Like Tech Companies that harness the power of the mobile and cloud. Companies that benefit from the new frugality posted great recession. Companies that are using innovation to make themselves Stealth Technology plays, not traditional devices, biotech firms that cure big diseases, companies that cash in on the countrys newfound oil and gas. Its a shame that the highfrequency traders have captured the regulators and skim the system the way they do. You should get ready to hear the backlash. By the way, im sure that Michael Lewis will feel the backlash as i have for speaking up. The flash boys always claim their opponents dont understand. And they dont recognize all the good that the flash boys are doing. To which i say, listen to me. This is my bottom line. Enough is enough already, flash boys. Just admit you got a real good gig going running ahead of our orders. Be thrilled the sec blesses your frontrunning, and shut the heck up as you rip us off rather than trying to con us into believing that youre actually helping. Its very unbecoming of a parasite to tell its host, heres my venom, stop complaining and learn to love it. Jim in washington. Jim . Caller hi, jim, hey, thanks for recommending sanchez oil as a spec. That worked out as a caching for me. Oh, terrific. Yeah, they had the best at sets and managed to be able to get the better of another oil company. That was terrific, thank you. Hey, is i went heavy in gm gamestop, i didnt follow your advice back in november, didnt diversify. Are they going to make a comeback with their opening simply well, ill tell you whats interesting, the same formula as oracle. Gamestop reported a bad number. Have you seen what its done . Nothing but go up since then. Thats people believing the second halfs going to be stronger. I think youre okay. Lets go to gary in pennsylvania. Gary . Hey, jimbo. Yo, yo. Caller thanks for breaking it down for all of us home gamers. Thats what i try to do. Go ahead. Caller please tell me, what the heck is going on with calumet . And should i jump in right now . Ive always been suspicious of yields that high that are 10 , and im not going to recommend the stock. I will welcome management on to explain to me why that 10 yield is sustainable. Lets go to nick in texas. Nick . A big booyah, jim good to have you. Caller my question is about linked in. I know a while back you were real excited about linkedin and yelp, and even though it was recently upgraded, is that a stock that you feel that should still be in . Or is it well, this is a stock like yelp, like salesforce thats part of this great rotation i talk about every night. That means out of stocks that have high growth and into stocks that have growth that can accelerate like oracle, like hewlettpackard if the economy gets better. So right now, if youre willing to be patient, i think youll be fine in linkedin and yelp. Thats not what the market wants right now. What have we learned from the Michael Lewis episode by the book . Nothing. Nothing new. Highfrequency trading is venom to the little guy. And even some of the big ones. We have the antidote, longer term themes, and i, unlike some government agency, has your back. Mad money will be right back. Coming up power outages. No gas tank, no chance . Electric vehicles have sparked plenty of investing interest. But buyer beware. Before you plug your portfolio into any of these stocks, cramer has a shocking warning. And later, play through the pain . As the stars of cloud and biotech continue to take a beating, the temptation to ditch them could be unbearable. But is calling it quits the answer . Cramer takes a trip back in time to help you figure out the future. Plus, straight from the source, the shift from desk top to mobile is in full swing. And tonight, cramers found a company in the midst of the pc to smartphone shift. Find out how theyre making it easier to invest on the go when he heads off the tape. All coming up on mad money. 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. A week ago, i got a call from stacy in new jersey who wanted to know about a 650 Million Company named kandi. Viewers trashed the heck out of me. Kandi is a tiny chinese outfit that makes all terrain vehicles and gokarts and motorcycles. But the real reason its been an interest of late, its got an electric car kicker. Kandi came out with a cheap electric car known as the coco. And since theyre trying to develop a new model that would be popular. They started a joint venture with one of the largest automakers in china. The stock has rallied 350 . Just since the beginning of 2014, all the fuel cell names, kandi roared from 11 to 21 before pulling back to where it is now. I understand why someone would want to figure out what in the heck is going on. However, im telling you, i think you should stay away from kandi. If youve owned it for the last three months or last 12 months and you have an enormous game. Im telling you, ring the register. Why . Because kandi is exactly the kind of company we dislike here on mad money. This is a hot stock that ran too much for no real reason other than people saying to themselves, hey, electric cars plus china, great idea. Now, back in february, we heard that kandis planning to build out electric car network in shanghai. Then earlier this month, we started hearing chatter that china might include subsidies as a lastminute addition to the pollution reform bill. Few days later, kandi reported earnings and revenue numbers that were up big. Turned a profit and sales rose 92 yearoveryear. Of course, i cant tell you whether or not theyre better than expected or not, because kandi doesnt have Analyst Coverage. Normally when were playing with speculative stocks, we Like Companies with limited Analyst Coverage. We like unknown names flying under the radar. They can have huge upside potential. But we need a little radar to compare it to. However, when you Start Talking about Chinese Companies with no Analyst Coverage, whole different ball game. Securities regulation in china is, indeed, like the wild west. No better analogy, just thought of it. Its like the wolf of wall street except without all the drugs and that other stuff and nobody goes to prison at the end of the movie. Sure enough, just a couple of days after all that positive chatter and goodlooking earnings number, stock got slammed because of two very ugly pieces of news. First the Company Announced the secondary, not good, not the end of the world. Kandi tells us theyre under investigation. Wouldnt you have said that when you report your quarter . Since then plummeted in less than two weeks. Heres why we dont like tiny little chinese stocks. Turns out, back in november before the huge recent run in the stock price, the sec informed kandi theyd be investigating the company and requested documents and information. But kandi chose not to mention this in the press release when the Company Announced the fourth quarter. Again, very much like wolf of wall street where jonah hill gets the subpoena and tosses it in the trash and then urinates on it. All right. Anyway. In kandis case, did issue a subpoena. Kandi disclosed the sec investigation in the middle of a long list of risk factors, 16 pages deep into the annual report. That irks me. Very often these risk factors just read like standard boilerplate. If youre going to bury a formal sec investigation list of risk factors, at the very least you should put it at the top of the darn list. Most pertinent, isnt it . If you wonder why im telling you to do the homework so youll know whats happening with your stocks, this is the reason. For my mind, when youve got a Small Chinese firm with zero Analyst Coverage that the sec is looking into, thats not the stock you should be playing with. Of course, its possible i end up being wrong. The chinese electric Vehicle Market is very likely going to be enormous its got bad pollution over there. If kandi turns out the way to play it, it could be worth more. But kandi is a company that makes the bulk of the money selling gokarts. The story is more about hopes and dreams than reality. Dont convince yourself that kandi will be the next tesla. Heres the bottom line, no matter how great a potential opportunity might seem, theres only so much risk were willing to accept on mad money. You can accept more than we will. At the moment, way too much risk for me unless the sec clears them, i wouldnt buy the stock for all the tea in china. Lets go to florida. Caller how are you . Im good. How about you . Caller im all right. Im just a little disappointed with this tesla stock. Can you tell me about it . Well, teslas another company like netflix, like amazon where the money is coming out. Why . Because its consistent, very strong growth stock and this market is looking for beat up industrials and Technology Stocks that might accelerate the earnings power if the economy gets better. Compared tesla which made the quarter to oracle. Oracle missed the quarter horribly and now up gigantically. So teslas in the dog house right now along with a ton of other Growth Companies until we see a slowing economy or the Industrial Companies that people are taking up trip up again. Kandi, i dont know, not looking too sweet here. Sorry. Coming up play through the pain . As the stars of cloud and biotech continue to take a beating, the temptation to ditch them could be unbearable. But is calling it quits the answer . Cramer takes a trip back in time to help you figure out the future. In a context that you can all understand. Well, my clients wanted to know what i liked back when i was working at Goldman Sachs in the early 1980s. I would tell them heinz ketchup will never be replaced by the chinese, kleenex would always be a verb, thats a household name. Heinz and Kimberly Clark, my two favorites to recommend were naturals to be the first stocks i bought for my hedge fund. Why not . They had all of the characteristics you want for stocks, best of breed, not overpriced, kplen excellent in management. When i went out to meet with prospective clients, almost every single one i met was thrilled. They were thrilled i was thinking such longterm wellstated principles. They were my two Largest Holdings among others that look like them. I felt confident in these kind of picks to get my business going. I was so confident, i never imagined a clause i accepted my agreement to open up my fund and give the money back if my performance was down 10 . I couldnt imagine that could ever come back to haunt me. My reasoning . Stocks like heinz and Kimberly Clark dont experience those kinds of declines. Slow and steady wins the race, minimal volatility, nice upward trajectory over time. Classic secular Growth Stocks that sometimes took breathers. But otherwise just created wealth regardless of the season. Thats the way i looked at them. Unless we get hit with a rotation, that is it. Sure enough, just a few weeks into my hedge fund stewardship, the economy which had been bouncing along constructively hit a level of acceleration. The likes of which any policy maker these days would kill for. It was as if someone flipped a switch and everything from homes to cars to retail sales just notched up in a way that took people totally by surprise. You could tell because the in