A big reason why the dow sank, nasdaq claimed. 8 . The intense competition created by the sheer number of companies in business may be good for the consumer, good for you and me. We all benefit from corporations duking it out for our patronage. At the same time, this competition is an anathema to profits [ booing ] wh companies doing deals, even could argue the governments around the world have gotten tougher on mergers and a lot of stocks are pretty darn expensive versus their historic valuations. Let me take you through the Competitive Landscape sector by sector starting with the food group. The Food Companies have so little growth that the best ones like General Mills are hoping for flatter reits next year at best. Think about the fierce composition in space. Virtually every aisle of the supermarket. Does campbells soup need to be independent, does kelloggs stand alone . Up on hershey. Come. If they cant get their act together why doesnt mongolese buy the company . The supermarket aisles are filled with companies unlike hershey would rather merge than fight. Now, lets consider retail. This sectors been under are trdo with only brief respites when the stocks get too low. Take macys. Macys stunned us with announcement its closing 100 stores after christmas. Chain only has 769 locations. Thats a very big deal. Why would macys do this . We have too many darn stores in this country. Listen to what Ceo Terry Lundgren said on squawk box when macys reported earlier this month. Ridiculous when you consider in the uk its 1. 3, in japan its 1. 7. We have 5 1 2 times the number of retail physical locations in america for per capita than any other country in the world, and so there has to be a rationalization. And were not waiting any longer. Were taking the stance. Were going to still as courtney said, 530 stores in all the key markets. No one has said it better than terry. I thought that really summed things up. Yet you know what, the only real consolidation of retail was the dollar tree bought family dollar. Its ridiculous we havent seen more deals in this space. Capacity must be taken after mergers if that cohort is going to come alive in a sustained fashion. Nowhere is there more powerful need for mergers than in technology. It is exhausting to even ponder how Many Companies make devices. The balance of power so tilted toward the big customers like apple and against the lilliputians that supply them. The idea is hanging thick in the air. For example, when i read citigroups buy recommend of broadcom this morning, my jaw dropped. Broadcom, one of my favorites, has 15. 50 in peak earnings power. Hey, boy, does that make 177 stock seem very cheap. But right out in the open, right out in the open this analyst predicted xilinx could be the next takeover target for this inquisitive company and potential in xylon steel would give the company a real chance of making 11. 98 next year. Broadcom is one of my faves. The remarkable thing, the out right there as though it were no different than a new Product Announcement changing management. Kind of like, oh, yeah, theyll probably buy xilinx. This will be no big deal, a 13 billion company with a stock at its 52week high. Buying this communications defenses chips would not be a cheap acquisition for broadcom or at least not as cheap as it would have been a few months ago. This kind of research report, this kind of you know, youw, blase makes it clear theres obvious consolidation coming. Softbank buying arm holdings. Then its just too logical for broadcom not to buy xilinx. The same logic makes it difficult for marvel tech and others to stay independent. Come on, guys. Get with the program. How about pharma . A lot thought pfizer overpaid. Pfizer had to pay that price. Why . The rhyme wanted medivation so badly. Its a natural hunting ground. I have to wonder if biotech shouldnt be looking to merge with each other. Some of the stocks in this sector getting trashed for lack of a bad deal. Is down 23 points. Why . It hasnt redeployed the capital to diversify away from by its very nature dwindling franchise because its a cure, its not maintenance. Other groups cant merge because theres too much concentration. Were already down to three major railroads. They basically divvy up the nation, dont compete with each other much. The airlines have done all the merging they can get away with. Remorse over letting continental combine with america and america joined with us airways. Banks also had too much concentration courtesy of the shotgun weddings during the dark days of the great recession. Theres been regional combinations. The industrials may be able to do some buying, witness the fabulous merger between Johnson Controls and tyco. I simply dont see any other larger ones on the horizon given the potential for antitrust action like we would have seen if honeywell continued to pursue united technologies. By the way, iil dupont dow chemical merger. Follow along on actionalertsplus. Com. There are complaints by farmers these two large Seed Producers might make that beloved group of customers pay up for their plantings. Thats why im skeptical about talk that bubbled up today about potash, merging with agrium. Who knows if the regulators will allow it. It sure is needed in the dog eat the sector that needs takeovers to make itself investable again is the energy group with oil languishing in the 40s. We know the government nixed the merger, combination of jacked up prices for all its customers. However, the Exploration Production companies that are selling stock in order to acquire some of the countrys lowest cost acreage, theyve become red hot. You can always tell when the market values deals. Its when the inquirers stock jumps in the news. As youll see later in the show. Too much of pretty much everything in this market. We need more lastmanstanding situations. And fewer dog fights if you want stock prices to go higher. Consumer may lose from these deals, but boy oh boy, do the shareholders on both sides win. Joe in ohio. Joe . Caller booyah, jim. Booyah. Caller thanks for taking my call. Quite welcome. Tanker. Am i down too much to get out . Or is the stock i think you can hold it. They cut the dividend and you know, when you do that and you tell me that business is good, lets just say, youre not on the list anymore so to speak. All right. How about ryan in new york . Ryan . Caller jim, its an honor. A longtime listener, first time caller. Okay. Caller the stock, Real Estate Investment trust that invests in Senior Housing and services represented to seniors. My question is with baby boomer into Senior Housing would this be a longterm investment or with talks of another possible housing bubble should i stay clear of Housing Stock . Lets just be clear, i have always liked you know, theres not been my favorite. My favorite has been ventas and im not going to deviate now just because you can pick up a percent or more in yield. Deb cafaro has delivered over and over and over again. Were not going to go away from theres too many restaurants, too many retailers, too many Tech Companies and much too much competition weighing on the bottom lines. Its great for consumers, you and me, but lousy for stock prices. Keep an eye out for m a to relieve the pressure. On mad, chipotle announced its giving a i way free food and drink in september to lure back customers. Could it also lure back investors . I think apple is the worst chart in the book. Does that mean you should sell . Do not make a move before ar spark cries to equip Police Departments with wearable cameras. Could this help the Company Behind taser surge higher . Do not miss my take. And of course, stick with cramer. Announcer 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 miss something . Head to madmoney. Cnbc. Com. My hygienist said the most random thing. She said i should think of my teeth like an apple. It could be great on the outside not so great on the inside. Her advice . Use a toothpaste and mouthwash that strengthens both. Go pro with crest prohealth advanced. Its uniquely formulated with Activestrength Technology and is better at strengthening the outside than colgate total. Crest toothpaste and mouthwash makes my whole mouth feel amazing. Advance to healthier gums and stronger teeth from day one. My checkup was great. H. Heartburn. Sorry maam. No burning here. Try new alkaseltzer heartburn relief gummies. They dont taste chalky and work fast. Mmmm. Incredible. Can i try . She doesnt have heartburn. Were going to prove just how wet and sticky your current gel antiperspirant is. Now were going to show you how degree dry spray is different. Degree dry spray. Degree. It wont let you down. Anything meant to stand a body without proper foot n support can mean pain. N. The dr. Scholls kiosk maps your feet and recommends our custom fit orthotic to stabilize your foundation and relieve foot, knee, or lowerback pain from being on your feet. Dr. Scholls. You know your heart loves megared omega3s. But did you know your eyes, your brain, and your joints really love them too . Just one softgel delivers the omega3 power of two regular fish oil pills. So give your body mega support with megared advanced 4in1. It was roughly a year ago when the former market darling got hit with a series of Health Scares at stores all over the country with an e. Coli outbreak in seattle, neurovirus in california, some salmonella in minnesota and those were just the warmup acts last summer. By the time we got to late october, chipotle was dealing with a major multistate e. Coli outbreak that swept through every state on the west coast along with many in the midatlantic, illinois and ohio in between and to top things off had a nasty neurovirus outbreak that infected 100 Boston College students last september. All these Health Care Stories september the stock into free fall, plunged in midoctober to an intraday low of 395 in midjanuary before seeming to find a bottom. Since then chipotles stock has gone into overdrive trying to repair the image, too. The stock is still bouncing along in the low 400s. Ive told you repeatedly big Health Scares tend to eviscerate sales. But as weve seen before with the past Health Scares, talking about taco bell and jack in the box, they almost always start to rebound after a year to a year and a half. Now, if chipotle follows the same time scale, then youd expect the company to find its footing somewhere in the next two to eight months. So could this be the moment to start buying chipotle stock ahead of that . Tonight were going off the charts to answer that precise question with the help of robert moreno, a brilliant chartist, colleague at realmoney. Com. His view is the action chipotle could be setting the stock up for a major move higher. So what makes him feel so bullish about chipotle stock . Lets start with a longer term weekly, okay, right up here. This paints a clear picture of what happened when chipotles stock started breaking down a year ago. As the downdraft accelerated, all right, the stock broke down thats 600 level last november. Once that floor was taken out, we got another huge leg down which sent the stock as low as theres that key number, 395 intraday in january. He says theres Something Special about the 395 level, represents a 50 retracement of chipotles rally from the lows of 2009 to the highs of 2015 and a 50 retracement is one o one those important fibonacci levels ever since then, chipotles floor of support at 35 has held. Each time the stock has tested the floor, its produced a nice bounce. Saw it this spring, again in july. After chipotle retested the lows earlier this month, were seeing it once again now. Heres the thing. Each of these bounces has been contained by chipotles down trend. The down trend line from its highs ten months ago which moreno says is acting as a ceiling of resistance. Okay . The stock tested the ceiling again yesterday rallying up to 423. For the moment its been rebuffed, pulling back 7. 80 today to close at 415. However, if chipotle can finish the week above 420, it will have broken through this down trend line and he thinks that would be a huge positive. Were looking for 420 there and that would get things rolling. What else matters in this weekly chart . First theres the moving average convergence divergence, the macd indicator which technicians move to detect changes in a stocks trajectory before it happens. Moreno points out chipotles macd line is going up. Its been like that nearly all year with the macd heading steadily higher as the stock has trended lower. Okay. See that divergence . All right. That means sooner or later youd expect the stock to follow the you should see a turnup soon. However, its chipotles daily chart. Lets look at that. Has moreno feeling more confident. This shorter term chart is all about the triangle thats been dominating the action chipotle since its breakdown. You got the 395 level support. Weve seen that, right . Thats the trend. The down trend line from the former support at 600. Okay. So there we go with that line. But thatot to suggest the stock is due for a breakout. First theres the rsi up top, relative strength index. Moved up rapidly in the last couple weeks and recently crossed above its center line. Its a little dotted line in there. Thats reflecting better price momentum. Second, youve got the new one that we dont talk about, the vortex index which i know it oscillators to identify early trend changes. When the green line crosses the red and here we go, and that did it not that long ago. The vortex indicator is making a bullish crossover. Thats a very positive development that often means theres more upside to come. Third, theres the money flow index. Thats the mfi which is another way of measuring buying and selling pressure that suddenly is different from the taken money flow oscillator we saw on the weekly chart. Moreno think its important it is in positive territory on the daily chart, thats this move right here, okay, and continues to trend higher. Thats another bullish sign. All these are pointing upward. Put it all together, moreno believes if chipotle breaks out below the down trend line, 5 bucks from where its currently trading, could be smooth sailing all the way back to get this, 6 00. Theres your price target. Okay. Granted he thinks a move of this play out than the decline that proceeded it but if you can just get that breakout, chipotles stock will be able to recover. Remember the timeframe i talked about, dont expect instant gratification. What about the actual business . Wall street wasnt thrilled with the companys most recent quarter, reported a month ago. First of all, while chipotles 23. 6 samestore sales decline, okay, thats minus, was bad, 30 decline in the previous quarter. Management told us traffic was looking stronger in july, thanks to the chiptopia Summer Rewards Program doing a good job of generating repeat customers. Yesterday they announced students will get free drinks for the month of september and giving a free kids meal when you buy an entree on every sunday in september. Theyre getting aggressive about boosting traffic. I took a little informal twitter poll to find out if people are long lines at the local chipotle, used to be stores hallmark. 38 of those who responded said yes theyre seeing lines. Versus 35 who said no. 27 said its a work in progress. All right. Talk about unscientific. Given the massive samestore sales declines the companys been experiencing, i think the fact 38 said the long lines are back tells me chipotle might be doing better than we think. Heres the bottom line. The ch moreno indicate chipotle might be ready to rebound in the near future. The results of my totally unscientific twitter poll suggest the same thing. I think it still needs to mark more time just like the prior incidents of other restaurant chains before we can be sure that the turn is real. Much more mad money ahead including my take on apple. Unexpected 14 million tax, whats next for the company . Im giving you my take. Police departments everywhere are turning to the new wearable devices so is it time to consider the stock . And the Energy Sector is up 15 year to date. Do you know thats the best performer in the market . Im digging into the oil and looking for some smart deals that could pay for you to be involved in. I suggest you stick with cramer. Lets feed him to the sharks squuuuack, lets feed him to the sharks yay and take all of his gold ya and hide it from the crew ya. . Squuuuack, theyre all morons anyway i never said that. They all smell bad too. No you all smell wonderful i smell bad if youre a parrot, you repeat things. Its what you do. If you want to save fifteen percent or more on car insurance, you switch to geico. Its what you do. What do you look for in an antiperspirant . Advanced care . 48 hours hehe feels nice this is very very smooth. I am not messing around its soft. Your antiperspirant should give you more. Than just protection. Try dove advanced care. Last night i got a poignant tweet. Someone asked me, turning on apple now . They didnt even really mean anything by it but i took it personally. Yesterday, head of the European Union telling apple it owed them more than 14 billion. I said on air that apples chart was the worst in the book. Meaning the technical suggested the stock was going lower for certain. Now, ive been predicting apple might get hit with a humongous paying its fair share by making a sweetheart deal with ireland to pay very low taxes when it opened offices there that employ 6,000 people. Of course, i didnt have the foresight to say, and i quote, and its going to get hit hard off the news when it breaks, end quote, which is what happened. I was just looking at the chart. It was terrible. After todays 82 cent decline, it remains terrible. I answered the tweeter as courtesy as i could saying simply i was commenting on the chart, not the company, to be sure, my view on the stock is unchanged. It, despite the massive potential tax bill which apple and ireland, they are one in the same here, are, theyre trying to fight. Theyre trying to appeal it. But i totally get where the tweeter is coming from. How can i not turn on the stock of apple if i th