People never learn. Given that were on trook have the best october in four years, dow gaining another 74, s p limes 6. 4 and nasdaq advancing 3. 4 , maybe investors will think twice before they put their brains in portfolios on month by month autopilot. Selling in september, and sell in may and go away for its by rote ridiculously, imfatuous, lacking of intellect. Next week is the busiest of the busy. One of four weeks in the year way too Many Companies report. I stress, this is a terrible time to make snap judgments you have to wait to hear the Conference Calls, and you want a perfect example . Look what happened to those poor fools ooh who sold Goldman Sachs down after reporting only watching zoom up 8 from the bottom. A morning Conference Call people didnt listen to, sold too quickly. The sim pliclistic headlines, r 50 of the time . Thats a coin toss. We dont invest in coin toss situations. [ buzzer ] house of pain. Thats where youre going. The game plan for next week . Pick and choose. Monday morning, heal from hal, second largest oil company, gave you a downbeat outlook last night in the Conference Call this morning. Acare tremendously about this Conference Call of hall la burty, not only because i want to hear about the frac now, pay later plan, i want to find out how halliburton plan with baker hughes is going and i bet you against a sense how much business to divest to get the deal down. Declines in oil and Natural Gas Prices this merger could stabilize the Oil Service Business creating a worthy rives to schlumberger. Oh, buoy. Valeant, vrx reports monday morning. The pharmaceutical roll jum on the red hot political griddle getting subpoenaed to see if its jacking up drug prices unreasonably. A difficult run, plunged from 263 to 177 during the scrutiny. The stock doesnt run up idly. The fact it tacked on 8. 69 today, given the way this is trading, valeant probably has something up its sleeve to counter the recent negative publicity. After the close, oh, boy, this is another tough one. After the close, we get the results from ibm. Now, this stock has desperately been trying to put in a bottom with a yield north of 3 . Let me be clear what im looking for from Warren Buffetts position. The cloud, big data and cognitive businesses need to become a huge part of the sales pie is assuages worries about ibm slower growing legatee business. We dont want that to happen just by having the slowing growing business get small. If the lines skirlate without a dropoff in older divisions, the bottom in and i will be out here on tuesday pounding the table for you to buy ibm. Otherwise, if its not this quarter, we have to wait. Tuesday we are for united technologies, u teks on the trading desk. More like General Electric, livered a terrific quarter or cramer honeywell, ferted a bit when reporting today. I loved the new Technologies Management team led by the nononsense greg hayes but the oldest elevator business is hostage to the downturn in interest spending in chinchina. Maeve give it another quarter. Its gone well and has a magnificent aerospace business. Im a huge fan of verizon, which will report. I love stable dividends ands consistent mild growth. Reports next tuesday, stocks 5 yield makes it too attractive to close up. After the break, chipotle. A restaurant in brooklyn, and bar san miguel. Closed for a private part e tonight. Cha poipotle ramping since last quarter. I think its profittaking. My blessing to use a deep in the money call strategy i outline get back to even to bet on cha proet lei, to invest or trade going into the quarter i like those guys. Wednesdays going to be very tricky. That is because ba, boeing, reports in the morning. It has to refute headon the talk of a wide body airplane glut, and an idea delta put in our heads the other day. Maybe wanted to buy planes cheaper, boy, its trying to settle down. It didnt help that spirit air talked down its nearterm numbers last night, and its stock got crushed for more than seven smackers today. You didnt save on the stock. If you ask me, boeing, keep your battle in the shoulder situation. Got to hear more. Dont buy the first stpike. Thats often been wrong. Spike up. I always tell you not to pay much attention to strong domestic numbers from General Motors because its International Figures that are at the fulcrum of what the stock does. When we hear from gm, is there hope for latin america . Holy cow. Even Brazil Trading down late tonight. A big business for them or a churn in china, like, beamer saw good numbers. Otherwise, im not enamored of gm. Too many moving parts. The last few times steady eddie kimberlyclark reported you can get these from no. Actually gave them to me. Anyway, it stock didnt wree spo respond as well as i would have liked. Its a fantastic company if you dont own kimberlyclark now, take a look at the chart. Goes like this, down and then vavoom, can kinder restore its lackluster when delivering results after the close . The bears chatter is that talk down stimulative growth. Always here negative reports. At these prices i like enterprise product partners, and energy transfer, the etp kind more than kinder morgan. Kmi comes in a close third. Thursdays a miserable day for me. Just miserable. It seems like everybody who hasnt reported decides to do it in that one session. Im thinking about making a mockteeny of fivehour Energy Drinks allnighter as the wife goes on a cleanse. I kid you not. A cleanse. What the heck is that . Anyway, first we hear from 3m before the open and i fear this will be a very tough quarter, because of their asian exposure. Trust 3m, but want it to go lower before we buy more. That said, tremendous faith in the ceo to deliver over the long term as i do honeywell and triumph over head winds. Caterpillar, look at this day. Will ya . Maybe a tenhour energy drink . Now, cat preannounced a miserable quarter. Can it get more miserable . Of course it can. The stock is awfully cheap with a 4. 4 yield. A 5 one might be too cheap to ignore. Pounding on the table for this one, you know. The socalled disappointment over a cholesterol drug. I like eli lilly for the franchises, call me a buyer. Will mcdonalds do Something Big when it reports . I think ceo of course, cramer favs steve easterbook, a longtime turnaround. I dont know if well hear about a newfangled engineering thing. After the magnificent run, might pay to wait and see. And after thursday, alphabet, artist formerly known at google along with microsoft, and i like all three. Hopefully the new alphabet better than the old google telling a story of disparate investments. Amazon taking market share and money from rival, the at least of which, staggering Market Capital asian loss from walmart and microsoft, getting a positively jiggy feel about this windows 10. Microsofts a buy. Finally, friday we hear from three companies faring liability. First American Airlines merged with us airways. The last flight out of philadelphia this weekend. I fear concerns about the Merger Integration and maybe Information Technology snafus. Second, procter gamble. A stock thats been, say, not so hot for so long. Wonder if the company has something up its sleeve . Otherwise its going nowhere if it keeps delivering subpar earnings. Finally, ibm buyer if the stock is hit ahead of the quarter. Jumbo earning, portfolio gets crushed making snap judgments before the Conference Call. Dont take the bait. Stop, listen, learn, and hen then should you pull the trigger. Dennis in michigan. Dennis . Caller hi, jim. I have some lulu. Lululemon is a leading Canadian Company featuring yoga clothing, but it seems very volatile. It went down considerably in late september and early october. Yes. Caller and grew substantially in midoctober and went down again, to 2. 9 . What are your thoughts . Credit suisse recommended all the margin problems that wrecked the stock for so long may be in the past. I think that this stock is one that you buy in the low 50s and then you sell after they report its a yo yo. Next week is the busiest of the busy. Making any snap judgments will cost you. Make sure you stop, listen and learn before you make any moves. Oh, man, tonight, even though the rally stole this week, the energy group rebounded to its lows. Time to consider buying in . All week long highlights my favorites in space and i have one more for you today. Its juicy. And understanding anatomy of a rally. It might be simplier than you think. Plus, yesterday, worldwide symbol back, took a hit after what many thought was a lackluster quarter. A discount . Could competition raise a red flag . Ive got the exclusive with the ceo. Why dont you stick with mad money announcer dont miss a second of mad money. Follow jimcramer on twitter. Have a question, send tweet. Send them to cnbc. Com, or give us a call at 1800743cnbc. Miss something . Madmoney cnbc. Com. Some neighbors are Energy Saving superstars. How do you become a superstar . With pg es free Online Home Energy checkup. In just under 5 minutes you can see how you use energy and get quick and easy tips on how to keep your monthly bill down and your Energy Savings up. Dont let your neighbor enjoy all the savings. Take the Free Home Energy checkup. Honey, we need a new refrigerator. Visit pge. Com checkup and get stted today. Even though the rally in oil prices has stalled a bit this week, the fact is that crude and the whole Energy Sector have rebounded dramatically from their late september lows with the xle, the s p energy etf up more than 15 since september 29th alone. Of course, as ive been saying all week in the special series, the group kerntly is taking a bit of a breather giving you terrific opportunities to do isnt buying. Buy, buy, buy given i expect it to move gradually higher over time because so much capacity is being shut down as marginal and stretch producers run out of money to drill. Something that oil surface giants schlumberger confirmed when it reported last night. Ive been highlighting my favorite oil and gas names, however, because this space can be treacherous and lots of companies in real trouble if we get another leg down in oil prices, even though im not looking for that, we have to be extremely careful when picking energy equities. Oh wen want to own the highest Quality Companies allowing us to get some sleep at night. Hence the series on energy has stocks to live with, Like Energy Transfer Partners and Enterprise Products partner es. Two super high yielding natural gas oriented pipeline plays as well as Occidental Petroleum with a rare beginnings of growth, a strong dividend and good Balance Sheet. Most of the oil sheets dont have good Balance Sheets. I want to talk about another part of the oil complex i kind of gave up on a long time ago but its back. The tanker business. In particular, my favorite operator in the industry, yes, nordic american tanker. Symbol, nat. I used to call naty dread it was so bad. As the rest of the Energy Sector indeed struggled, in fact, merely doubled over the last 12 months. Not even counting the companying gigantic yield, 10 . On the surface seems to have a simple business modelown a fleet of 23 oil tankers, 24th coming later in the month and leased to slints looking to ship or store crude. However, that means the dynamics. Tanker are far different from this tradeup oil producer or even offshore drillers that lease their equipment. Nothing to do with the price of crude. It anything the tank every Companies Benefit from Cheaper Oil Prices caused by a supply glut meaning nor transfer from, say, saudi arabia, pumping like crazy. At the same time more de3457bd from speculator who want to use tankers as gigantic storage karins because theres nowhere else to put the oil waiting for the price to go higher. A common hedge fund play. For years the price of crude at very elevated number, say it was a total [ dog barking ] right. A bowwow. Seemed to go endlessly lower. Year after year after year, from 2008 through 2012. The next couple years the stock bounced along the bottom, not doing much of anything. Ah the reason, like i said, Companies Like nordic american are totally hostage to the oil tanker market, when there are too many tankers, not enough demand, the day rates that this company leases its ships out absolutely plummet. Ah there was an extended period of overbuilding of ships that started with oil prices shot in the stratosphere in 2008 and because it take as long time to put a ship together, took years for that excess capacity to work its way through the system. Plus didnt help that the explosion of Domestic Oil Production in the u. S. Meant our countrys been importing a dramatically less, much smaller amount of foreign oil that used to shipped from places like nigeria and the middle east using north american tankers. After years things turned around. A real turn at nordic american. The stock doubled. Didnt catch the bottom. Wish i it. I think it has more room to run. The upswing, i bet they stay that way for some time. The excess production by the saudis i mentioned. Hansen pointed out in letter to shareholders, a low oil surprise good for the tanker industry. One reason the price is down, increased production and supply of crude oil. As it stands demand is strong but high opec production resulted in increased supply of oil. The strong tanker market in the last year or so reflects that reality and thus weve experienced both an increase in demand for vessels and the rates weve been able to charge for our services, end quote. Hansen is absolutely right. The cost of renting one ship for one day are at highest levels in years. The spot rate for whats known as very large crude carriers taking oil from middle east to the far east is at over 100,000 a day we havent seen that since summer 2000. Got as low as 10,000 a day. I almost rented one to plan my wedding on hey, good dance floor. Of course, these tanker day rates can be incredibly vulnerable. Companies like nordic america are basically printing money because at long last, not enough tanksers to fill for the ships. I bet the situation stays that way. Second, as long as prices stay down, in the 40s, which can happen, lots of speculators buying crude oil at low prices and hold on to it in hopes the price will rise in the not too distant future. They need to put their oil somewhere and options for storing gigantic quantity isz of texas d. The cylinders you sear almost all filled these days. Oh, another plus, lower fuel costs which really matter. Probably the biggest variable cost for nordic american. But why them in particular . Starters, nat pays a knnotoriou 9. 7 and 38 cents over this week, albeit after four straight quarters in dividend boost, remains elevated to are some time. Even if they dont raise for another year, talking a 10 yield. Downright spectacular versus treasuries. Probably asking yourself, shouldnt we be worried about that dividend cut . Isnt that a huge red flag . Ill explain why they did it. Nordic american has always been the best run and the most conservative company in, well, in admittedly the wild cowboy tanker space. Back in october the Company Announced buying two ships for 122 million and this time, although it never hasnt done this the last time. This time management promised not to dilute shareholders, which killed the stock over time. Trimmed the dividend to pay for the ships without hurting the price of stock by issues more stock. Something done in the past and vowed not to do forward. Thank you, herb. And allowing the company to raise the dividend want they take delivery of the tankers and put it to work. Plus, the Balance Sheet about a best in a tattered industry. Finest fleet in the business, less than 20 year old ships and because of the possibilities weve seen ships over time, of course, that are not as safe. Oh, and one last thing. I think this is probably the most important. Management is heavily invested in nordic american, and i mean that literally. The founder and ceo is also this companys second largest shareholder. 4 million shares and just bought an additional block of 100,000 shares in august. Insiders sell for all kinds of reason but only buy when theyre feeling bullish about their companys prospect. During the big swoon in his stock i told you i wasnt a fan, but i believe the bottom is real. I think the rally continues. Bottom line, right now tanker space on fire. Nord iic mirth american best in fleet. I like the stock and particularly if it pulls back another 70 cents to trade below 15. You get the magic 10 yield. Been a while since i flagged this one. I need you to have these in this ring, ultimately higher and nordic american is an excellent longterm way to play the energy business. Stick with cramer. Day two of the slowdown thesis played as it always does. Buy, buy, buy, buy bishgs, buy. That they can find. We saw fabulous moves in the buy oh techs and fastest names in technology yesterday. Day two, investors buy the staples. The companies that wont miss the numbers even if the economy stutters. The ones with much less risk, even as they also have much less reward called the chicken growth stocks. When you believe a slowdown is coming you buy stocks like pepsico and kimberlyclark, kraft, what a move today, and eli lilly, and sdhaept youre sacrifice upside for steady eddie sleep at night profits. Hence the rally we saw all day, even when the market was down. I like to teach this stuff because i want you to understand why stocks behave the way they do. So