to go around to sate the buyers. so the positives get magnified and the negatives get ignored. that happened again today. the dow dipped 13 points, s&p advanced, nasdaq gained .29%, nice move. first, let's understand, this market is largely driven not by stock pickers but by index funds. that index fund money comes in automatically everyday billions of dollars placed in equities will move equities higher why does this send stocks up so much the for starters, directional. that money tends not to be traded it soaks up supply quite easily. remember, the stock market is a function of supply and demand. before the index phenomenon which didn't exist in the '80s and '90s, mutual funds and hedge funds would be selling as well as buying. they still do. but the amount of index money coming in, chiefly for retirement, far outweighs the amounts that are traded. it overwhelms them don't get me wrong, index funds are the right choice for you if you're putting money away for retirement, you shouldn't try to trade it steadily investing it in index funds month after month is a good strategy. for i.r.a.s that would be great to pick stocks but i'm saying in general i like index funds the impact of that money in, as we call it, has been a major problem to the bull. because in terms of asset classes, stocks are pretty much the only game in town right now. look, there was -- there were many times in my career when it would have been silly to own way more stocks than bonds, particularly as you got older. if a ten-year treasurer was paying you 5%, 7%, stocks would lose their allure, but less than 2.5%, bonds just aren't attractive versus stocks particularly stocks that pay goodie dends of course there's more to it than that. remember, we have a stock shorta shortage there are about half the number of publicly traded companies that there were when i ran my hedge fund 17 years ago. that means the new money keeps funneling into fewer and fewer companies so those ones go higher plus, the stocks going up tend to be boosted by buybacks, there's an extraordinary amount of stock being crunched or retired by the major old line companies out there. some is to grow the earnings per share by shrinking the denominate or, the number of shares, when you do that, not only do the earnings get higher but the price-to-earnings multiple, the main way we value stocks, that's the apples-to-apples way goes lower. that's usually positive and here's why given that many companies have a ton of cash on the balance sheet and they'll be getting more cash under the new tax code you may need to rethink whether this market is as expensive as it seems. if companies keep retiring stock, then the market's valuation will go down or be cheaper and the supply of stock will shrink, and you know what that's avirtuous bullish cycle and, yes, it does call into question whether stocks are really as dangerous as many think. when you throw in the fact that there are far few companies coming public -- something that would increase supply -- and almost no companies doing secondary offerings which would also increase supply -- you could see how there isn't enough stock to go around wow. more money chasing fewer goods i always find it amazing when i look at the number of shares big capitalization stocks have retired or shrunk. let's take two of the best companies on earth, we all know of them. in 2014, walmart had 3.4 billion shares outstanding now it has 2.96 billion. think about how much that's come down 3m back then it had 649 million shares, now it has 596 million shares those incredible shrinking numbers -- and they are incredible -- coupled with the money coming in automatically means these stocks have a natural bid or put underneath. meaning they're usually going to be more buyers than sellers. put it all together and you have a natural recipe for higher stock prices of course the stock shortage and the new money coming in aren't the only things pushing this market higher, there are other problems a lot of recent gains can be attributed to the new tax code and this is a great example, caterpillar hit an all time high today on a recommendation for from a major brokerage house the gist, the new depreciation rules in the tax code make it far more advantageous for companies to buy equipment so that's going to bolster cat sales, they sell the heavy equipment. that's all about tax reform. something few money managers believe would happen until it was already upon us. it wasn't calculated into the earnings, it wasn't baked in each day we get upgrades like this we got a price target increase for united technologies, same story. more favorable depreciation rule, lower corporate tax rates, a stock shortage and a positive piece of research produce a nice move up. plus i think we'll start hearing a lot chatter about the benefits of the weak dollar once earnings season gets started on friday. now, there's something else going on here, too, that we must talk about caterpillar and united technologies are the kind of industrials that benefit from a strong economy so with this highly unusual period of simultaneous worldwide acceleration, money managers are jumping all over themselves to get exposure to stocks like this funny thing, though, there simply aren't enough of this kind of stock go-to-to go around not only do we have a general shortage, we have a very specific shortage of the manufacturing cyclicals that are most in demand right now these smokestack companies are always gobbling up other businesses in their own industries, exacerbating that stock shortage finally there is the simple recognition that some companies are doing very well. much better than we thought. other companies are being re-evaluated as businesses that deserve a higher valuation because of what they're making, what they do cases in point, just look at tesla. last week, tesla, the auto company, reported very disappointing earnings very disappointing i mean, not even within the ballpark [ boos ] now the stock is up more than 20 points from where it allegedly blew up. is that amazing? i find it incredible in the old days, tesla instead of being up 20 points would be down 20 point. but this market is starting to value tesla like atech stock i understand it. when a a tech company has a hot new product, a sizzling product but can't produce in the volume, investors will give it a pass because they figure it will make up the volume next year. so when they can't produce enough model 3s this year the tech-seeking investors give it a pass i'm not saying that you should give tesla a free pass, but that's what the people who trade the stock are doing given how much it's up after those miserable numbers. ceo elon musk is teflon. teflon elon. nothing bad sticks to this guy nvidia is a different kind of story. all last week -- well, frankly all last year -- i was pounding the table on this one but last week i was pushing it. why? because i thought the ceo would no doubt announce some big news as the kickoff speaker sunday at the -- i even use misdemeanor i ga -- even used my game plan to say he was going to start like this despite his amazing track records. no one seemed to believe me. sure enough, last night he announced two huge deals to use nvidia's revolutionary chips, uber and volkswagen, the biggest taxi company on earth and the second-biggest automaker on earth though some people think it's the biggest and passes toyota periodically. chips to build autonomous cars not in the distance future but within a few short years it was a breathtaking union but predictable if you watch the show give than i predicted it will wow the audience. that's how it could rally to another all time high and it was eight before the market sold off. here's the bottom line stock shortages, index funds, lower valuations than you think and negative news viewed as positive or shocking news that could have been guessed at have been combined to levitate stocks remember, i'm not saying you should buy these stocks because they are rallying, i'm simply trying to explain what keeps driving the market higher. and it's something that's not going away if anything, it seems to be accelerating let's go to linda in florida. linda? >> hi, cramer, happy new year. same to you. what's happening >> i am a long-term investor of epr properties i love the big monthly dividends the stock pays, however now it's down to where i first purchase the stock, i'm wondering if the stock's long-term outlook is stable, should i buy more now? >> i think it's stable this is about the megaplex theaters and a lot of beliefs the megaplex theaters and theaters in general not doing well when you redo a theater in a fashion that makes it so it's much more fun, you can have dinner and stuff, it does very well so i think epr properties is being misunderstand they should come back on the show, it yields 6.5% how about isaac in my home state of pennsylvania? isaac? >> yeah, hi, jim go eagles. >> go eagles and stop dumping on foles. i bet he surprises to the upside i'm taking my numbers up foles, let's go, let's go, let's go. >> i have a question on two recreational stocks, one is norwegian cruise lines, that whole industry is not moving as well as thor industries, another great stock that's just not budging at all these last few weeks. what do you suppose thereason is >> big years last year, the stocks that have the biggest years kind of settling in and biding time. that's why nvidia had such a big move today no one thought it would happen because, well, it's like been happening so stay the course david in new jersey, please, david? >> caller: my question is about arnc where do you see it going from here >> my charitable trust owns it i time arconic are doing things that cut down cost that's why they're not selling a share and telling people it's a good situation because they are taking care of their pension problems how about joe in louisiana joe? >> booyah professor cramer. >> sweet what's up? >> caller: my stock transocean it was traded below $10 in the range and it's broking out ne n and i'm almost even dollar cost average and i want to know if you think it's going go higher. >> think the aramco deal is going to matter but the stock that stephanie link and i both agree is just a horse is schlumberger up at 1:20 today up 13 straight points. i talked about it as a stock that would have been down in a bad market but this is too good a market to hold a stock like schlumberger what do you get when there's a stock shortage and bad news viewed positively? you get a beast mode market and i don't think it's going to end yet. matt money tonight, a biotech with a life-changing test. it reported great numbers but exact science's stock is down more than 10%. quizzical or buying opportunity? then what marijuana, micron and cryptocurrencies have in common and alchemy has been saying great things but the bears they are just attacking this thing. can it make its way out of the doghouse i'm talking with the ceo so stick with cramer (daniel jacob) for every hour that you're idling in your car, you're sending about half a gallon of gasoline up in the air. that amounts to about 10 pounds of carbon dioxide every week. (malo hutson) growth is good, but when it starts impacting our quality of air and quality of life, that's a problem. so forward-thinking cities like sacramento are investing in streets that are smarter and greener. the solution was right under our feet. asphalt. or to be more precise, intelligent asphalt. by embedding sensors into the pavement, as well as installing cameras on traffic lights, we will be able to analyze the flow of traffic. then that data runs across our network, and we use it to optimize the timing of lights, so that travel times are shorter. who knew asphalt could help save the environment? ♪ how do you know when a turbo charged growth stock has lost its momentum consider the case of exact sciences, exas, the company behind cologuard, the non-invasive way to screen for colon cancer by taking a stool sample rather than doing one of those full blown colonoscopies i've been a fan of this for a long time as colon cancer is the most preventible forms of this horrible disease many cases it doesn't get caught early enough because a colonoscopy is unpleasant. thanks to the strength of this test, exact sciences gave us a 290% game. over the weekend they announced stellar numbers for the fourth quarter. so you think the stock would be roaring today, but instead it got pole axed and went down 13.25% the reason i don't know, even though the numbers were excellent, maybe investors have gotten so used to seeing stunning unbelievable results here that there was no way for these guys to keep up with expectations. i don't know myself. so let's find out if this is a buyable pullback the company is presenting at this week's big j.p. morgan health care conference let's talk to the chairman and ceo. mr. conroe, welcome back to "mad money." >> jim, great to be on your show thanks so much. >> absolutely, kevin now from what i can tell from the numbers you released yesterday, the trajectory here of people using your product has even i would say excel rated would you think that's a fair description? >> well, yeah, if you take a look at this point last year, the j.p. morgan conference, consensus estimates for cologuard were $160 million for 2017 and the team delivered $2677 million $26 in revenue and 571,000 people screened with this new innovative cologuard test. a totally different way to screen for colon cancer so we're proud of it and excited about the future. >> so obviously we have to say hold it, have people been spoiled by unbelievable performance or maybe there's changes in coverage, medicare, major managed care insurers that are negative did something happen in the last few weeks? >> no, nothing at all except positive news. we reported a record quarter of 176,000 people screened, which was slightly above the midpoint of the guidance that we gave those are people getting screened and all of the news throughout 2017 was positive our margins were growing, our top line was growing and we're firing on all cylinders so heading into 2018 it's with a great deal of confidence. >> so let's go over what is beyond 2018. what are your next tests that you could do within the same framework? i saw your opening, significant expansion of your laboratory and corporate facility in madison, maybe that's to handle current traffic, but what do you have in the pipeline >> well, first of all, investment in the facilities is critical so not only are we investing in the growth of cologuard, but we're investing in the total supply chain and our ability to deliver what we think will be millions of tests and by 2019 our capacity will be four and a half million and that's important, jim, because there are 85 million americans in the u.s. in the screening population we will be approaching our millionth person screened with cologuard in the near term we've had over 900,000 people screened today so it's important for us as a company to make sure that we are totally prepared for the growth that we expect to come we're only about 2.5% penetrated at this point in time. >> at the same time, i'm hopeful you've got -- maybe you can detect some gastrointestinal or digestive cancers. not as easy if you know them early enough to solve them but you know what? people don't want to get tested. they think that it's just -- first of all, they don't even want the news, but second they don't want to go to the doctor and do it, it's time consuming, just like what you saw with the colonoscopy, we would love to know what else you can do with your kind of test. >> well, so the cologuard technology was a breakthrough technology that powers this pretty incredible test now we're working on a test for lung cancer and a test for liver cancer and we're in a unique position to do it because of this technology but also because of our nine-year partnership with the mayo clinic mayo clinic has been an amazing partner with then dever ais end we want to address the top ten cancers. not just colon cancer but all of the other cancers because as you know, jim, it's about early detection. people who are diagnosed with early cancer have much better results. just recently we were able to meet one of our customers from georgia and she and her husband came to madison, she was diagnosed with stage 1 colon cancer she had surgery and two weeks later she was at work. no chemotherapy, no radiation therapy. she was healthy and she felt healthy when she got the cologuard test detecting cancer early is key and that's why we're partnering with the mayo clinic. >> one last question i see your ads how do they work do the ads then transfer to doctors like my doctor says yes, absolutely, this is a great test >> yeah, you know, with 85amerls a consumer product we're advertising on cnbc, and those ads are aimed at educating people about the test and it's driving about 850 new ordering physicians every week. nine out of ten of those physicians our sales force hasn't called on yet, so we know those television commercials are doing a great job of educating patients and also physicians and we're going to keep going with that. >> well, traffic look, you know i want this thing to be taken by everybody appreciate you coming on the show and that is kevin conroy, chairman and ceo of exact sciences from j.p. morgan health care thank you so much, kevin the stock is down a lot, i know there are people on the fence about it if it comes in more, i don't know what a great performer, we liked it the whole way "mad money" is back after the break. mom and dad got a new car... with the extra third row of seats. they think it's theirs. look at them, they have no idea! it's not theirs. it's mine. mine. mine. mine. the new lexus rx 350l with three rows for seven passengers. are you excited about your baby sister coming? 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(cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley twitter is a lot of things to a lot of people and for me it's a way to get excellent -- not being cynical -- feedback about what passionate speculators care about. they either want my blessing for the gambles that they'll take or they want to curse me out for not endorsing their views. but they do it pretty politely i bring this up because right now the speculators are pressing me on three major issues -- marijuana, cryptocurrencies and the stock of micron, symbol mu let me say at the outset i never want to dismiss the tweeters out of hand even if i disagree with them i am a huge believer in the legitimacy of speculation, as long as you know you're speculating. i can't tell if people are such voluminous posters on these three because they know i won't dismiss them, meaning call them sparky or bud or chief, or because they hate i don't endorse their views. to put it simply, i think the vast majority of people trying to get exposure to marijuana or bitcoin block china derivative or the stock of micron itself don't know they are speculating. they seem to think they're making a normal investment and i think that's a mistake let's start with cryptocurrencies i believe they're for real i don't see them going away any time soon. however that doesn't make them a sound investment i'm not crazy about any of the different ways to speculate on cryptocurrencies, whether talking about how it doesn't sink with the value of the thing they represent or equities moving up or a square or amd or nvid nvidia but i'll change my mind and become more positive the moment i see cryptocurrencies are being treated like de facto currencies, a la gold, and that could potentially happen if goldman sachs makes a solid two-way hedging market in a cryptocurrency of some derivative maybe bitcoin. even then i still think you have to be careful but i understand goldman is trying to put together a hedge desk. how about marijuana? to be blunt, this whole trade just got really difficult because we don't know what attorney general jeff sessions intends to do now that he's shown the desire to press for federal charges for those involved in the marijuana nexus. he's going to make credit impossible to get. whatever the states do, it's still illegal on a federal level. sessions immediately ruined some parts of this market by making the use of credit cards off limits if you want to buy pot, you need to use cash like the good old days presumably he's going to go after people for crossing state lines with the stuff from colorado to kansas which has always been a felony but the obama administration chose not to prosecute people or look the other way. i think session has crushed the domestic marijuana market but there's nothing he can do about canada which will soon embrace recreational use nationwide. that's a small market and there's too much speculation in the sector already how about micron think has real potential but it's become a major hot button for me because i said you need to be careful with it and suggested i prefer owning nvidia or broadcom. i just said be careful micron stocks sells for five times less than earnings, to me that's exhibit a for the bears because when it's sold that cheaply in the past it means the company won't be able to meet its earnings estimates i'm cautious because micron makes two kinds of chips, both are commodities. flash pricing peaked several months ago, drams could peak this year because of new factory supply if that's the case, micron will fall short of the estimates. it's possible demand will accelerate for flash and d-ram, that's possible. but there's new supply coming on line from south korea. i suspect the bulls believe these kinds of chips are more proprietary than they are and not as dangerous as i think they are. here's the truth i've seen the stock collapse three separate times in my life and the circumstances were almost identical to those we're seeing right now more supply coming on after a big run in price for d-rams people didn't see coming this time it has a sect produon product line, flash. clever speculation always makes sense to me. i'm probably the only person on tv who agrees with that. but a recognition that you're speculating not investing would make me a whole lot better about how i feel about anyone making these choices. everyone focuses on the rewards from these stories but you'll never get anywhere unless you start taking the risk as seriously as the rewards that's right, calculate the risk, how much you can lose not just how much you can win. anthony in florida anthony? >> caller: jim, booyah. >> booyah. >> caller: go eagles this weekend. >> i love the fact that we're underdogs and people write us off. that's how you come in jacked. what's up? >> caller: i'm calling to talk about some ripple, xrp >> you know, it's -- i mentioned that this morning on "squawk on the street" and i'm trying to know more about it i'm not the expert, i don't claim to be. other people know more and i don't think i am the call to ask about ripple but appreciate you went there ron in tennessee ron? >> caller: yes, how you doing, jim? >> good, how about you >> caller: i'm doing great listen i have a question about cyber arc software why duds cyber ark keep slipping after announcing earnings? do you think they're a candidate for a merger >> i think they're a candidate for a merger but last quarter was just okay versus palo alto, great quarter. the speculators are pressing me on marijuana which i believe in but sessions hurt the u.s. story. they're pressing me on cryptocurrencies, i don't feel like i can buy in on ripple but i think these things have a lot of risk. and micron, if you recognize you are speculating, i'm going to feel better, that's fine it's not gospel and it's not investing. except for micron. there's much more "mad money." alchemies has a drug at the center of the war against opioid addiction. i'm speaking ining with the ce find out more about the fight. does your portfolio have what it takes to succeed in the market i'll be the judge of that. and then rapid fire and the lightning round. stick with cramer. ♪ ♪ ♪ ♪ what we do every night is like something out of a strange dream. except that the next morning... it all makes sense. fedex powers global commerce with vast, far-reaching networks... deep knowledge of industries... and, yes... maybe a little magic. ♪ how long does it take for a once beloved country to get out of the doghouse? alkemes. two years we learned a doe presentation drug they were working on failed to meet the primary end point of its clinical trial since then alkermes has been working its way higher but it's 25 bucks below it was trading before everything got dinged at the beginning of 2016. maybe that change this is year, though the company had several major catalysts ahead including the same depression drug coming up for fresh review they have three drugs in phase three trials plus the company has two drugs on the market, vivitrol for recovery addicts and a long acting compound for people with schizophrenia and psychotic disorder and this morning the ceo tweeted that 2018 could be a transformative year. we know the company is presenting tomorrow at the j.p. morgan health care conference, maybe we can get preview so let's get a closer look with richard pops, the ceo of alkermes welcome back to "mad money." >> good to be with you, jim. >> richard, you did something bold today and i know you don't do things bold unless you can back it up you said 2018 would be a transformative year of milestones, please elaborate. >> you know how it is in biotech. it takes many years to make a drug sometimes ten years and a billion dollars. some years you're doing the work and no one is paying attention and some years you reveal the data 2018 for us is one of those years where we literally have transformative milestones on each of our major programs, including our in-market products that you mentioned as well as our depression drug, our schizophrenia drug and our multiple sclerosis drug. >> okay. you're -- let's say your smile has been getting a level of confidence that i want to have because i believe as you know that when alkermes stock was in the 20s, should i get rationally exuberant? you probably know how things look in those different products. >> i do and you know i've done this for enough years, jim in biotech you have to be careful. things tend to take longer and a harder than you think. in our business our business is so diversified we work in so many areas and we have so many different medicines that there's usually something positive about to occur 18 is one of those years for both of the drugs you've followed for years, it's gratifying to see how those medicines are having an impact on patient's lives we're making a big impact in addiction after all these years and our work in schizophrenia couldn't come at a more important time for the whole public health as that disease continues to cost the systems millions and billions of dollars and patients are still suffering. >> let's start with opioid a lot of us cannot believe that vivitrol isn't the standard of care for the recidivist population coming out of prisons. what is the roadblock to having something that could really slow down or even stop opioid addiction which you know is a raging epidemic. whe >> look at the numbers on vivitrol vivitrol is growing beautifully. it's becoming one of the more important medicines for the treatment of this condition. interestingly, jim, vivitrol is indicated for something different than other medicines there's only three fda approved medicines for treatment of opioid dependency. vivitrol is indicated to prevent relapse. it's for patient who no longer want to be physically dependent on an opioid and that was viewed as an outlier. who would want to do that. with more and more data in last quarter there was a major government study that was published that showed the efficacy of vivitrol compared to these existing medicines and how well patients do on it over time so i think the best days for vivitrol are ahead of it. >> i hope so because i've believed in this drug for a long time and don't understand why it is a mandate for our country let's talk schizophrenia and bipolar. very hard to address drugs in the market have historically, let's say, gained -- people gained so much weight that they literally would rather care about how they look than how their brain is doing. what is different about yours and how do we get people to stay on them and not go off the meds? >> well, here's a perfect example of where efficacy of a medicine is only one part of the story because as you said, if you have an efficacious medicine but somebody gains 50, 60, 70 pounds, they won't take it and when schizophrenic patient doesn't take their medicine, what happens they relapse and end up in the hospital and their disease progresses so our medicine, 3831, is in phase three, which is the final stage of testing we've completed one of the pivotal studies successfully last summer and the second pivotal study is due in the third quarter of this year and that study we're looking at the weight gain associated with use of our drug compared to drug that causes a lot of weight gain and so far the data to date have shown we've attenuated or blocked that weight gain associated with that medicine which is considered to be one of the most efficacious of the anti-psychotics. another one of these examples in 2018 where we'll turn over the cards that show the final clinical data that prove or disprove the efficacy of 3831 for patients with schizophrenia. >> wow look, i have to tell you, you know, this is an area i know this would be unbelievable if you can do it and it would make people want to buy the stock for higher prices than they are. richard pops, thank you for giving us the preview of what you'll talk about at the big conference that's alkermes richard pops he is very positive which makes me want to be positive "mad money" is back after the break. it's time for the lightning round. are you ready? it's time for the lightning round. let's start with sandy in michigan sandy. >> caller: booyah, jim, how are you? >> booyah. >> caller: happy new year to you and thanks for everything that you do, you and your staff my question is about ntr -- >> well, if you're going to go anything a.g. i am going to send you to de, that's my go to stock. i'm not changing i'm going to eddie in pennsylvania edd eddie. >> caller: this is eddie calling from the mushroom capital of the world, temple p.a. >> you bet it is, what's up? >> caller: i filled up my roth i.r.a. for 2018 and i'd like to get more analog devices. >> i don't blame you i want time back on the show those guys are great guys. we need to go to paul in pennsylvania paul >> caller: jim, how are you doing? >> i couldn't be better. i like a philadelphia accent better than anything else. what's going on? >> caller: first time caller, long time viewer. >> thank you. >> caller: and booyah to you, jim, well deserved. >> thank you so much, i'm all fired up, paul what's up? >> caller: my stock is the ebay of latin america, mercadolibre and its ticker symbol melr it's supposed to have 30% growth in earnings but it has bearish tendencies about it. could you tell me about it >> i think it may have bearish tendencies but it's a bullish stock and one of the few from latin america that i like. i think it's better than ebay, i think it has better growth, i like it and i have since 1999. let's go to anthony in michigan. anthony. >> booyah, jim thank you for helping main street. >> man, thank you, thank you >> caller: i'm interested in knowing about seattle genetics >> you know, satellite genetics is trading with all the biotechs and it shouldn't it has stuff in the pipeline but let's accept the fact that the biotechs, as i saeaid on scott wapner's half time show, are in some kind of bearish phase karen in california, karen >> caller: from huntington beach, shipping you warmer weather. >> i need it so bad. what's going on? >> caller: itabbvie a value prie stock? >> i think you can go higher even though it's a monster how about william in connecticut, william >> caller: how are you doing, jim? i'm calling about in 2011 you were talking about teradyne. it was $7.26 the next day i went down and bought it at my broker there and i bought a lot of shares, too, and it's $55 today at close. unbelievable returns, like 490% return i don't take it off the table, you say do it, i didn't do it. i'm going to ride it. >> take your crawl spaces out, let the rest run, it's a great company and i put in the the category, by the way, with lam research well played, well done let's go to mark in wisconsin. mark >> jim, i've got an lp for you, en antero midstream >> i think they're very good and i'm going to talk about magellan on wednesday but antero is a good company one more ron in texas ron? >> caller: hey my stock has had trouble breaking through the 50-day average for a long time until last week, what do you see platform specialties going for >> don't like platform specialty because i think the dow dupont, which is being run by ed breen, is a much better company, that's the one i recommend in this sect or, n or ladies and gentlemen, the conclusion of the lightning round. what's the hesitation? conclusion of the lightning round. well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade it's new year. what better time reassess your portfolio to make sure it's still in good standing and to set yourself up for the year ahead. i know we're in the middle of a beast mode market but we're planning to be diversified more than ever because so many people are narrow having a well diversified portfolio is one of the most important concepts to invest by. no matter how great the market looks, even though we have these records. so give me a call or tweet me, tell me your top five holdings, i'll let you know if your portfolio is diversified enough, maybe i have to blow the whistle. let's start with a tweet from lynn johnston, how rare, someone's actual name. jim, i'm invested in apple, camping world, lockheed martin, visa and united health am i diversified can i say this is one dynamite portfolio? this is the kind of portfolio i love we have apple. they've done more about mental health issues than almost any other company. that was a cheap shot but there's good to have focus on it camping world, okay, that's a terrific company we know the company from cnbc. they are absolutely in the millennial sweet pot lockheed martin great defense. united health probably my favorite maybe the best health care story out there. visa fintech, fintech, health care, defense, experiential and tech that's so great. all of us should ask what lynn likes next let's go to jack in connecticut. jack >> jim, booyah from fairfield county. >> man, nice, what's up? >> caller: i'm starting a portfolio with my 22-year-old daughter, she's already started a roth i.r.a., invested in the etf and started to pay back college loans. >> listen up, this is what you have to do what jack just described let's go to work jack. >> caller: we want to incorporate five stocks or companies that can benefit maybe from the tax law changes, take into account some medical recreational cannabis play possible and maybe that blitz on cryptocurrency so my five stocks, are we diversified alibaba online retail, raytheon, goldman sachs for that crypto play, scotts miracle grow for the cannabis play and boeing what do you think, jim >> i was doing a piece for my wednesday conversation all talking about the idea of why to own goldman. you have it. scotts miracle-gro -- later on in the show we'll talk about that scotts miracle-gro, yes, they have hydroponic inside, you can use it to grow some marijuana plants it's legal in oregon and colorado to do that. raytheon is defense, boeing is -- i'm going to call it commercial aerospace and alibaba is the only chinese stock i'm recommending other than baidu. we have an online amazon for china, aerospace, defense, these don't overlap. we have a terrific company that does well regardless of marijuana. goldman i think is undervalued and does great trading and hedging including i think cryptocurrencies coming up donna in north carolina. donna? >> caller: hi, jim i so enjoy your show. >> thank you, donna. >> i can remember when you recommended boeing at $70 a share. >> well, you know, everyone knows i thought jim mcnerney was unbelievable that turned out to pay off thank you for remembering. >> it was great. >> thank you >> caller: here are my 27-year-old son's roth i.r.a. stocks. >> how great is this go ahead >> caller: he purchased these at my recommendation in 2013. >> excellent. >> at&t, exxonmobil, costco, pfizer, and aecom. >> eck llectic and good. retail, good yielding drug stock, good yielding oil, oil, remember, dividends compound oil, telecom, drug, retail, infrastructure, fantastic. let's go to andrew in missouri big mo >> caller: booyah, jim, second time caller, i called you last year about duluth trading company. calling from clinton missouri today wanting to know about my i.r.a. roth. am i diversified 30 years till retirement disney, abbot laboratories, paypal and dupont, dow dupont. >> all right, paypal we just talked about it last week it's a miracle stock abbot labs, action alerts plus club there's another action alert, we'll talk about this on the conference call wednesday. i think ed breen is just about to break it up great comments disney is primo entertainment company. that's a buy we have entertainment, drug, fintech, we've got logistic and a deconglomeration of chemicals. how great? how great were these people? i want everyone to follow what these people are doing and stick with cramer. while its design was meant to be seen. experience the new 2018 lexus nx, and the nx hybrid. experience amazing, at your lexus dealer. your bbut as you get older,ing. it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember. we've got something exciting we're going down to orlando for icr conference look who we're interviewing, l kohl's don't do tv, canada goose doesn't do tv, the children's place don't do tv but they do "mad money," that's why i'm fired up about going to orlando because those represent great consumer names that are doing well i like to say there's always a bull market somewhere and i promise to try it just for you right here on "mad money." i'm jim cramer see you tomorrow. >> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ for the most important member of the family. oh! hi, sharks. my name steven blustein. and i'm sean knecht. both: and we're the founders of pridebites pet products. we are seeking $200,000 for 10% of our company.