Your mad money couriers from the swift completions of our pointed rounds. Especially now that the dow gained. What can i say . It really is pretty much how i feel about tonights election. Oh, it is manageable. Like Everything Else thats been thrown at us as a country. Hey, were going to help you manage it tonight when our special coverage begins at 7 00 p. M. Eastern. Why do i say manageable . First, allow me to give you a couple of reasons intrinsic to the stock and bond markets during this 61yearolds lifetime of love for finance. And then we will talk about politics. And the standard republic to explain the u. S. Postal services hallowed motto. Lets start with 1979 when i bought my first stock at a time when the federal fund race was at 15 . Yeah, the one thats currently at half percent. Interest rates were high back then because we had ruinous inflation. We had nothing like that now. In 1979 it was easy to throw your hands up and say, nothing can work. Nothing remember, that was the jimmy carter era. You could have bought bonds but i found stocks, all stocks, taken over left and right. They were a great hedge against inflation. We killed it. A bunch of them. For the asking. A tocn of mergers going on. At goldman sachs, yielding at 31 , a bought a ton for clients. Since the Federal Reserve decided to crush inflation and was winning, those bonds recently came due. Investments of a lifetime made right when many people thought we were dancing on the edge of the buy more republic and we all need to go to sears to get wheel wheel wheel barrels. I brought back the market hand over fist doesnt feel to me it is going to happen now though, too much corporate profit. To many rates. To much versus the pe that time, 29 right before the crash. Great recession, nothing like today. We had Systemic Risk then. Don knows, fanny, freddy, washington mutual, citigroup. Usual cast of characters. Dow got cut in half. Right before the crash in 08, i told you to get into cash. Saying if you needed your money for anything in the next five years, just take it out of the market. Gutsy move. I told to you buy it all back. When the late break mark hanes who i respected more than anybody else, why not equip from the best . We do not have Systemic Risks this election. I dont see it under either candidate bp but if we do, then we will deal with that. So exhibit a, we can handle anything this market throws at us. It doesnt mean we will definitely get it all right. No, that never happens. But of course, we figured out where the bull market was both in stocks and bonds. Because we believe there is always a bull market somewhere. And our job is to find it just for you. Whatever happens tonight we will do so again. We will find things to buy and sell at the house and senate go democratic. We will find things to buy and sell if donald trump wins the white house or if hillary wins or if trump tries to contest the election. We will find things then too. We will do that because its what we do here. Its what ive done since 1979. Im still around. Believe me, if i were an idiot who hadnt made money for people since i was 24, i wouldnt be here. Who would listen to me . And you dont have to listen to me. I made a lot more money when i was buying and selling stocks for myself in a hedge fund. Dont do that any more. Im here because i want to teach. Like i say every night. And possibly because i didnt get enough affection as a child. Now if for whatever reason a lot of you will say oh, cramer, shut up. Were going to talk about for a moment about the world being oest republic here. The republic. Lets review the republic. Lets talk about what we thought when the center might not hold. Lets start with the great depression. All right, sound of music seems like a great place to start. September 29 dow stood at a fair and broke down to 39 july 32 and bands with frustration in ways we can only have nightmares about these days. Then quadruple in the dow while waiting for mere anarchy. Speaking threats to the republic. What about world war ii . On the eve of when germany invaded france and the french would fall immediately the dow at 147. April 42, recognizing the u. S. Would suffer its worst military defeat in history, the loss of the philippines. Nazis again rallying russians in great spring offensive. Yes, threatening to beat the only other opponents left besides us and the brits. That was a tremendous buying opportunity. Once we realized we were going to win the war a year before it ended. Dow back at 145. Off to the rateses. How about water gate . Worst president ial crisis in the history. The dow fell from a heist 989 in june 1973 when we first figured out that president nixon was probably gone. Down to when he fell in disgrace in 1974. And down in the first seven months of president fords reign. Then a uturn. Took out 773 a year later in july of 75. Eight months after that rallied above 1,000 when the Long National nightmare was indeed behind us. Buying opportunity. Why go into all these . Simple. They are reminders that when the nation faces systemic collapse, instability at the white house and military defeat at the hand of the axis powers, these turned out to be opportunities. Not time to run, not time to fear. Time to think. I dont see anything, anything dire like that happening now. Oh, yeah, its mean, spiteful, angry. But not dire. None of it. No matter who wins. No matter if the results are contested. No matter how much anger there is. Take it down enough, then it sure is. But the would the om libottom l postal service, our pointed rounds await. And we will deal with them swiftly because no election is going to stop us, including the nasty one thats now concluding. Dave in illinois. Dave . Dr. Cramer. You mentioned an action alert plus that cash represent your largest investment. Nearly four times the size of your single largest equity position in your charitable trust. As we are investors not traders our focus should be on outcome preparation and not on outcome prediction. So jim, can you help us understand this important distinction . Yes, twofold. One is that the market itself is not that great. Be honest and we will do something later in the show when this shows you that there hasnt been a lot of things working. The second is that there is a level of uncertainty that is such that there might be a better opportunity. Now could we miss the opportunity . Could we come in a little bit higher . I have to tell you, dave, there are stocks right now that went down yesterday that i like very much. Theres ample opportunity to make decisions. All right. So we know this is an important night. Thats why cnbc correctly and fabulously frachkly fabulously frankly is pulling out all the stops with 2016 election coverage. Who better than to lead the ship than carl . Carl, i know getting ready for this historic night. How are things shaping up . Jim, we are onset. You can feel the buzz around us, on the newsroom. We are fixing cameras, getting ready to go. You and i talk all the time about how media evolved over the years. We will bring you the political equivalent of that tonight. We are calling it the decision zone where we are able to bring you highlights of multiple feeds around the country, around the world, as they happen. So for example, here we have a live shot, this is i believe, clintons Victory Party in mid town manhattan. Here is democracy plaza. Couple other rems show mad money going on. Whether it is a concession speech, victory speech, interview with the local affiliate, all those things we can just pluck in and out of as they happen. Its never been tried at scale, jim. Itll be very fun to bauch. Obviously our own reporters, a dozen of them scattered around the country and then back here onset, larry, sarah, keith, trying to help us understand the race returns as they come in. We are less than an hour away from the close in georgia, indian, kentucky, South Carolina, vermont, virginia. We will watch the senate, watch the house. All those initiatives in california and maine and colorado and jim you know we will be the only network to keep you honest on the peso, on the futures, on the front month vicks we cannot wait to start in just under an hour. Wow, i got to tell you, carl, you are just the im so im so proud of you. I sit next to you every morning at 9 00 and so proud of what you do and everybody has to watch you. Thank you so much for coming on our show. We will see you at 7 00. See you in the morning, jim. All right. We got plenty more mad money ahead. Including what history tells us about the market after president ial elections. How will it pan out this time . We will turn the technicals. Plus both candidates talk big over the feds. Which stock stands for our next commander this chief . And im talking you inside an allimportant swing state with major manufacturing base. You got to stay with cramer were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. Later tonight the contentious i have the ree al of the election will finally be over. But the stock market has been driven by the political horse race of late. Its so hard to get a sense of how it will behave after the election regardless of who wins. Thats why we got to get a little devoid of emotion. What you do when you do that, you good off the charts and go with the help of bob lang. One of our experts, founder of explosive options. Net. One of the threeman team behind the tech stocks news let per. Er pp letter. We have to find out what things will look like after the confusion, worry, uncertainty over who the next president will be. When we know who won not much will have changed and there are a much of seasonal patterns that suggest we shoot rally post election. However that doesnt mean that everything is copacetic. While it looks like this market is driven by fluctuations in the president ial race, stocks tachk when we learned about how the new fbi investigation in hillarys emails, you know, just plummeted. Then yesterday, rocket higher, when that investigation came to an end. Lang thinks itll be a mistake to think all of the recent action has been about the election. He notes that Fund Managers have been pulling money out of the market for weeks now. And its possible that selling was caused by something other than election fears. What else are investors afraid of . Despite a relatively strong earning season the price of oil has been sinking and the Federal Reserve is on track it raise Interest Rates next month, another reason why there is a high cap position. Remember the last time the fed hiked rates in december of last year, the s p got clobbered. Fell 8 in a matter of weeks. Lang thinks Money Managers would rather play it safe rather than risking precious capital. Not just the election scaring people. We have two counter veiling forces here. On the one hand bullish seasonal patterns. On the other hand, lets just face it, charts are not very encouraging as you will see with them in a moment. First, let me give you patterns. Which lang picked up from de detreich. Rally be from the end of the year 75 of the time, giving you average game of 2. 5 . Now that is enough to make me think bullish. And the medium return between the election and years send 3. 2 . Overall average is dragged down by the financial crisis. You got take that one. Typically as long as economy is on firm footing and not recession like 2008 or recession like in 2000, most of the time s p gives you excellent post election gains considering the recent gdp and employment numbers like the one on friday, this pattern suggests we should be in pretty good shape. The second pattern is november and december tend to be very good months historically. Not just in Election Years. Going back to 1950 s p has only closed out the month of november beneath the lows five times and december tends to be even better. S p and only ended december beneath its november lows once. Once since 1950. Thats why lang thinks the odds favor the bulls. However, the charts themselves have been pretty darn ugly lately. So i want to start out by checking out this daily chart of the s p 500. Can you see, not a lot to like here. Lets call it a mixed picture. On the one end, s p tested its support of 200day moving average on friday. That floor held. Thats important. Then the index snapped back dramatically yesterday of 2. 2 . Problem is with the volume. Volume is higher when the s p and the declining. And lower when it rallied yesterday. That worrisome. That suggests big institutions are eager to unload positions particularly if strength. Look at money indicator we like so much. Measures the level of buying and selling. It has moved since late october. How worrisome is that . This is the First Time Since january, since january, that the check and money flow is going sharply negative. Even during the epic selloff this past june, staying positive. This is important. In other words, the big boys are selling. And we just cant assume its all about the electionrelated uncertainty. May not just vanish after the election. Now lets get to some real trouble. Most troubling chart for lang. The daily chart of oil. West texas intermeetdiate crudeo be specific. Recently tested in support at 200day moving average, thats the red, okay. That is for the First Time Since august. And given that we just saw the biggest weekly buildup in oil in history last week, lang thinks that oil could be headed back down towards its august lows of 39. Ouch finally one more. Lets look at the volatility index. The vix also known as the fear gauge. Over the last two weeks the vix has exploded higher. Thanks to the electionrelated uncertainty mp now according to lang whenever we have a big spike in recent years averages sold off. We have gotten terrific buying opportunity. He thinks it is possible this could be another buying opportunity ahead. So here is the bottom line. Chart interpreted by bob lang, lets say theyve been pretty rough of late. But based on the established historical post election patterns, he believes that things are likely to improve from now through the end of the year. At the very least after today, we will have one less thing to worry about but dont be complacent. Because the big boys dont like this market for a host of reasons. Not just the election. While they might come back from the side lines after today, the rest of the indicators say beware of any november rally. Because it might not have the staying power to hang on until the end of the year. Plenty more of this special election edition of mad money ahead. We talk live with two of cnbcs finest in the field. Phil and brian will give us updates from the industrial midwest. Plus, three years you need to focus on no matter who take the white house. And the lightning round. So stay with cramer. These goofy glasses. Yeah. Well, we gotta hand it to fedex. Theyve helped make our ecommerce so easy, and now were getting all kinds of new customers. I know. Can you believe were getting orders from canada, ireland. This ones going to new zealand. New zealand . Psst. Ah, false alarm. Hey you guys are gonna scare away the deer idiots. Providing Global Access for small business. Fedex. Now it doesnt seem like the election is nearly over. Time to start the healing and bring kra americans back it strength all over. And i mean that. That means helping you figure out how to make some money. Welcome to my post election play book that starts right now. There are two areas where donald trump and Hillary Clinton agree with each other. And they are both gamable. First area is defense. But if you want it hear about the second one, stick around. I am of course a veteran tease. In the debates it might sound like they disagree emphatically when it comes to national defense. However the truth is when you listen to their speeches and look at their plat forms, they are almost on the exact same page. Every election defense is always the one thing that democrats and republicans agree on. No politician wants to be accused of being weak on defense. Thats a sure fire way to lose an election certainly four years both sides give us plans to beef up defense spend aeng tries to keep those promises because borders will never punish you for spending too much money to protect america. Its no wonder that every Election Year since 19 t92 the aerospace and defense index outperformed in the fourth quarter. This cycle should be no different. Trump wants it repeal something to restore 500 billion in defenserelated spending over ten years and increase the army by 90,000 soldiers kwb expand the marine corps more than 55 . 42 new ships to the navy and a hundred more modern fighter jets for the air force. While strengthening our nuclear, Missile Defense and cyber warfare capabilities. Thats a lot of new hardware. What about clinton . She wants it end the sequester for defense too. She is not as sure on a what to spend. And when she says she wants to and im quoting invest in innovation kip balts that will allow us to fight more 21st se t century threat. A couple weeks ago there was a bullish outlook for 2017. Here is an aerospace and Defense Company that makes all kinds of things for the pentagon p. M. Lockheed has been benefiting they make the joint Strike Fighter ship. Companies see their aeronautics generating 5 billion next yart quarter. Meanwhile lockheed is traps forming itself. Last year bought is a core ski, the helicopter maker for 9 billion. Seems like a smart deal now. A few months ago they spun off their Information Technology sector. And they are expected to unlock a great deal of value. Lockheed martin pays to you wait with nearly 3 yield. How about Northrop Grumman . Also an excellent knock two weeks ago. Companies specializes in aerospace plat forms, Electronics Like radar and censor systems and any Missile Systems to. Northrop grumman has expertise and unrivalled when it comes to making drone aircraft. And the company has been a veracious buyer of its own stock. Here is the bottom line. Hillary clinton and donald trump may not agree on much, but they are both committed to shoring up our Nations Defense capabilities and at end of the day that means more business for