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tv   Mad Money  CNBC  September 26, 2017 6:00pm-7:00pm EDT

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exxonmobile here >> pulte homes, this is the time to be buying homebuilders. >> i'm melissa lee thanks so much for watching. see you back tomorrow for more "fast money. "mad money" with jim cramer starts right now my mission is simple, to make you money i'm here to level the playing field for all investors. there's always more work and i promise to help you fine it. "mad money" starts now hey i'm cramer welcome to "mad money. welcome to cram america. other people want to make friends i'm trying to make you money. my job is to educate and attach, call me at 1-800-734-cnbc or tweet me, small characters
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please, @krjim cramer yesterday's sell all or today's recap. dow falling 12 point, s&p advancing .01% nasdaq climbing 1.5% we're lucky to have guests on this show that can help us answer crucial questions about tack before we hear from them, let me give you my take on the sea saw action and the leaders of this market action i know, you feel like man, i got vertigo and seasickness. first let's tackle the real cause of the week starting last week's technology. you all know the epicenter here, it's -- it's apple for heaven's sake last week we started hearing run wins even before orders can
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possibly be that apple was having problems selling the release of iphone 8 how much confusion is there when it goes on sell, we still have people calling the 8 the 10 and people calling the 10 the x by mistake. the software companies making products for iphone and the watch got hit to too not that you should own apple but you should trade it. in the end, most people who try to trade apple end up buying high and selling low the opposite of what you're supposed to do like muhammad ali who coined the term and pat tended it or trademarked i guess is the better term, goat, greatest of all time, apple is ga soot, the greatest stock of all time
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when you flitter it based on rumors you're much better to lose apple's got a much better record let's forget about the so-called early returns, we're almost in october, which means i care about the year 2018. more products get delayed, more oppositions next year and sales get pushed back. apple make it is world best consumer goods, that's why i'm always stressing it should be compared to stocks like chloride or cole gate and when stocked up next to them apple stock looks cheap. and that's before you even back out the $260 billion in cash on this $973 billion company's balance sheet. so the sell of cost, at least number one, apple. now, i am saying, it's been
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pretty neutralized, sure the stock and go lower but at this time it's beginning to reflect the failure of iphone 9 and that product doesn't exist. second question about the fundamentals, it's something we answer tonight once we hear from red hat. too involved in the cloud, company if not the most involved in the world we also speak from fang, but what most of us don't talk about enough is these are all cloud-based companies. facebook lives in the cloud as of course netflix, where did you think you got those videos of late though, we hear the rumblings that the cloud adoption is slowing. you got to tune into every -- cloudy-based companies but some companies read the tone from adobe c adobe ceo, aligned one
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particular line of the business that the sign of the cloud's growth is decelerating no matter at all that no ryan made it clear the disappointment was temporary, no matter if the stock of adobe is now buy. you heard a question from a very good analyst on the red hat call about the possible slowing of cloud adoption could you imagine what that would mean now, as i heard it, es was absolutely not but we're talk to red hat later. given out red hats the company would know more than anybody at the exact same time we learned that tesla might be slopping out chips from nvidia and today by intel, holy cow now you have all of fang,
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facebook, apple, amazon, netflix, nvidia being moved. it's enough to make me want to change my dog's name from nvidia back to everest, not that the lovable mutt would know the difference, as long as you got a milk bone in your hand if the cloud's slowing the data center should be slowing too last night nvidia announced chips in one of the largest out there. i'll match those orders against defeated tesla any day of the week everyone might love tesla, but nvidia remains this gold standard for video game systems, take the switch, for data centers and for artificial intelligence and machine learning i love the mobile app, that does doesn't make me want to leave nvidia any time soon
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one's expensive, one's cheap, both are great let's ask ourselves, did these high flying tech stocks get too expensive? you can argue at various times like muhammad ali they're going to lose a few rounds every stock gets knocked to the door canvas but then they're going to go back up. there's no issues that i've been able to find involving the fundamentals that makes me really worried all right more complicated question, we're at the end of the quarter, mutual funds and hedge funds. at the same time we're hearing some large hedge funds are getting hit with redemptions, lubbock liquidations those are recipes for selling, that's what happens. last time i talked about the movement the oils and the auditors most beaten down stocks out there.
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verizon, beating down phone company, it's a legitimate fare b fear but i think there's a better explanations. yesterday dow stocks, visa, mcdonald's and boeing, winners all got hammered today the gold arches got slugged again. so, let's wrap it up in one nice big bow. i don't think there's anything fundamentally wrong with the hot stocks, i think they got too hot and somehow finished cooling off. that kind of vicious, unmerited sellers who push out the holders who own these hot fliers without knowing why, except in the case of nvidia where all they knew it was a rescue dog we're at the end and seeing profit taking for selling the
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winners. when you put it that way there's a kern nell of rationale to the entire move. does it mean the sellers are over, nope does it mean it could be over soon, maybe but only when we hear all those scary stories about crashes of you're in the month of october but last that could give you an even better buying opportunity starting with riley in texas. riley? >> caller: jim cramer, boo ya from texas >> nice, what's up >> caller: well, i have some input and i want you to 'give me some answers what are your thoughts lately on all of the companies like emerge, fairmount, u.s. silica and -- >> i'm not sure i'm on the fence. just kidding i got enough problems with these really high tech oil drillers the last thing i need is some
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sandbagging. allan in florida >> caller: jimmy most important i need to wish you a very happy 61-yard game winning >> have you all seen or looked at this incredible -- this amazing edit from go to fly equals fly -- well in a minute with guy's a super hero, i've bumper watching it all day i can't help it. i watch that kick over and over. this is not espn let me help you. >> caller: what i need to know about some pharmaceuticals small cap companies increasing sales that just got an approval for my grades on a conference call i heard the management team spun off from shire left and they're the ones -- adderall can they be
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used in this space what do you think about these guys >> i know from personal experience there's a lot of people involving migraine business it's a competitive business. i'm not going to rack on any one of these yet is it a rally end rotation let's take a look at this video. look at this anyway his business weakened -- i love eagles is it the end of the world as we know it, even though my staff tracked down the william tail overger i asked for. don't get upset. keep your eye on some opportunities on my head hold on to your hats, red hat, it's flying. it is the time to get some stocks better -- there may be
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even saying, yes, equifax, i'm going to eye that too. vm may be driving healthcare on greater heights but can the cloud also drive your portfolio higher stick with cramer. opportunities aren't always obvious. sometimes they just drop in.
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chocolate covered, peanut butter filled, this one's in german, it says, "reindfleisch?" plain. great. so what are we gonna watch? oh! show me fall tv. check out the best of the best hand-picked fall shows on xfinity x1, online, and the xfinity stream app. thirsty? some companies just don't seem to know the meaning of the world failure. look at red hat, raht. it's really been paying off which is why the stock has been able to rally 58% year to date, including today's more than $4
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move there's no slowing these guys down the reason for the strength, red hat reported another great quarter. higher than expected revenue's up 21% year to year. even better the forecast has been raised from the bottom line the question is have you already missed the euro or could there have been more mr. shaner welcome to "mad money" good to see you sir first of all, your stock was up the most of any stock of the s&p 500 today. what does it take to have that kind of milestone? >> we've been delivering for our customers, the team did a great job this quarter it was across the board, it wouldn't any particular one segment, our merger technology did great, our middle did great. it was a great quarter and the team did a great job we're really pleased
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>> i'm glad that you said that i think a lot of decline in the highest growing companies, is this subtle sense that somehow the data center is slowing what red hat i thought.explained really what's going on many people are panicked >> when we're talking to customers -- in fact two weeks ago we had a report with our customers, we had 16 of our customers there, everybody talking about it being a hybrid cloud world. they're looking for optionality, multiple clouds providers and flexibility. when they get into the next set of development and agile they're looking at containization that's where the open product comes in, the merging technologies
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this quarter alone we had 4 over 4% grout year by year. we're at $150 million this quarter, $600 million annual run rate business. where's where was it three years ago? >> it was nothing jim. this is where we made the investments from a corporation standpoint the investments are paying off, we're seeing the results, our customers are seeing that, we're pleased with the progress overall. >> next step, i'm hearing one reason why amazon's done because they're data center is not that strong you are switzer land you're not seeing any slowing in any of those are you? >> we're not we are seeing strength across the board. what's happening in red hat, if you go back a few years the conversations around saving money, now it's different. now we're really talking to customers about what's happening in those in their industries, the whole discussions have changed. when i spend time with some of
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our cfos and our customers we're talking about what's happening in their industry. every industry is transforming they're looking for agile development and that's where our technology is helping in developing that. >> at one time i was concerned about federal government, had a federal government freeze. federal government seems to be among the strongest sectors at this time. >> it was. that business is very strong and as we mentioned on a conference call last night, we're very bullish into q-3 as you're getting near the end of the year there's a lot of spending that happens. we see a lot of prospects in the government the government is a huge supporter. >> it's not like the government is sitting there with old ibm's but it's very -- the company's not that stupid. >> right >> we are very bullish in europe, your europe sales seem
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to be accelerating >> they are. as we look across the bookings across the board we've seen strength across all our ratings. our meeting as i mentioned was held in london half of the countries were european countries strength across the board there. as we're talking about where we're going from a strategic standpoint and how to question some of the ideas with them, they've resonated very well and we're seeing a lot of strength across europe. >> for the people who aren't sure about continuization, not sure about the cloud and adoption, key seems like a key client for you, maybe you can walk people who don't know red hat through what red hat has done for key >> key bank, we premiered them at our last summit that we held earlier this year. when they started looking at containers, they were looking for a company investing in docker, in our open shift
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platform brings all of the platform together from a standpoint including the o s one of the things we really say as we talk to our customers is, containers are lennox. as you know there's a huge footprint of lennox around the world. as they start to move containers, one of the things that key bank was looking for is continuous delivery. the operation allows for quick releases of their applications in fact they've moved the whole mobile applications on to open shift and they've been -- it's been a huge success, allowing them to really make changes along the way and we're really pleased and i believe a lot of feedback is positive from that too. >> i think the keys earlier have adopted a lot of things and they've been involved in a major acquisition. i know they are doing the right thing and shareholders should hold on to the stock and maybe new people should consider
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buying the stock that's erick sanders, cfo of red hat, the strongest stock in the market today back of the break.
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the most valuable currency in this business isn't dollars, gold or bitcoin, it's the benefit of the doubt when the market realizes that a ceo deserves it, their stock tend to catch fire look at carnival when reported this morning the action was almost universal, not
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as bad as they thought the big caribbean storms didn't ruin the cruise line's numbers or its forecast. even though it spoiled a lot of the trips to the notice. notice though, i didn't say it's not as bad as i thought. the reason, because arnold donald runs carnival, if there's one thing we can bank on, is that he's not going to be tripped up by some storms, even really bad one remember, donald's the guy who navigated his company to a come back after a costa concordia disaster that killed a lot of people i wasn't surprised by these numbers because i was given donald the benefit of the doubt, the one he deserves. yes, it's a terrific industry and all about the economy, remember when you take pictures of yourself and post it on your
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instagram so everyone you know can see what you're doing. i know that because my daughter spent money to go on a cruise and inis that her way around florida. in fact, donald raised the air -- despite the hurricane damage and indicate there was only a 1% cancel rate. people are lining up to go on these things in short, weakness, another chance to buy. but you know the one who wasn't given the benefit of the doubt today, the folks at dar ben, apparently olive garden. the stocks fell 3i.6%. this stock's been weak of late
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i cringed on the call when they talk about take out, because if miguel likes small restaurant in brooklyn take out, it's our nemesis. restaurants make their money selling drinks you're not going to sit there and have three pa civil kas while you're having take out at our bar. i think there was disappointment -- that sad if the stock keeps doing down like it has i think it's time to give ginning liu, the excellent ceo the benefit of the doubt at which point you can buy it hand over fist i know the charts were rapist, it's off the charts day. when darden gets the 3.75%, which happens to be a handful of points, i think it'll be worth
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investing in and let me give you one more that might be worth owning eventually, remember this from last monday? >> equifax needs to be better, end of story they're not beginning to quince anyone they really care about the issue until this man leaves. so we stuck on the "mad money" wall of shame and the stock cannot be owned until he agrees to spend more time with his family >> that's right, equifax's ceo richard smith has finally decided to retire after presiding over what i consider the worst cyber breach in history. equifax will still have to sort itself out, i was surprised the stock fell this morning. even if it gave the full point i put smith on the "mad money" wall of shame. everyone knows when one of these
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wall of shamers step down it results in higher prices however, even as i take him down, i'm sensing smith, sentencing him to a life time of checking his bank account balance daily like the rest of us, because senator elizabeth warren said on our show, who knows when the bad guys will strike anyway, richard smith i'll give you this i guess that's what happened whether you didn't spend enough on cyber security and immediately come forward when you were hacked. with smith gone, equifax is closer to earning back the market's trust jerry in utah. >> caller: boo ya to you jim
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>> my daughter's there right now. thank you what's going on? >> caller: based on the weather problems in caribbean do you think nor wee began cruise lines a good buy right now >> i like that cruise line and caribbean, but i am a carnival man start to finish. why? carnival is run by arnold donald shawn in alabama. >> caller: hey mr. cramer i watch you often and i wanted to ask about tallow alpha net works if you would recommend buying selling or holding >> mark's done a great job, he was in the dog house for a bit there. kind of missed opportunities, the opportunities came back, the money came back. mr. smith family time is important i know this. i'm glad you'll be spending more time with them, especially now
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that retirement takes you off the wall of shame. keep your eye on this stock as the story develops much more "mad money" ahead including my exclusive wb m, what a hot stock shares up over 100%. is the companies out of the woods, maybe it was never in them when things feel uncertain this market is the time to reach for familiar names tonight i'm going off the charts to fall out about an old stand by all your calls, tonight's edition of the "lightening round" so stick with cramer.
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how do you tell the difference between a stock that's one out of fuel and a stock that's taking a breather that's a question you need to ask right now with vm ware a company that pioneered so much of the technology that drives the cloud and data center to the hottest trends in the industry for years the stock language,
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it's old parent company was being bought by dell since then the stock has caught fire, thanks to bm's method of cloud computing using organization all this is up to reignite the company's growth and that's allowed the stock to work. it's now over 145% from its lows last year. if you're gaining a quick 16 points in on this, great quarter. the stock is up pulling back nearly 4 bucks from the cloud. so is this the pause let's dig deeper with sanjay to learn more about how his company's doing and where it's headed, mr. put tin welcome. i am excited to see sanjay explain more to me about how this new world works than anyone and i want you to tell people, sanjay, about how you got the incredible amazon deal and how
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people were shocked and i think you were friendly with the guy who runs amazon services from business school. so sometimes that's how things turn out >> we are boar rish company, everything is strength in number my ceo and the team and myself work really really hard. vm ware's this amazing company that become the name of the data center if you add up all of our customers over the 18 years of our existence we saved enough energy for about 40% of the homes -- >> you have saved how much >> energy of 40% of what people use in the year. this is a cost and complexity story. >> and virtue laigs does that
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because you don't need a lot of kputs. >> you do a lot of software that's typically down in hardware as the cloud became the force of nature, we figured the right thing to do was partner with the leader of amazon and we took the business of about leader in data cloud. and after some technology we built jointly with a good friend and his team at amazon we think it's really going to do well on the market >> now, you said private and public one of the themes tonight is companies want both. they want to optionality to have something on premise and also want to data center away why do they want both? >> as you think about companies and their future, they have to decide how much data center capacity they want to use now. some people feel they run a data center very well, we can help them modernize it with software. some of the companies say, listen, i don't want to expand a lot of my data, i want to use the new hardware con
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the hardware economy is not just the players by aw s, i want to use that capacity to help me expand or contract if you can get the benefit of both worlds, the same tools you know from vm ware, and get the data capacity on the fly that's what we innovated here >> okay, now so i'm a retailer, that means i might be competing with amazon, but that also means i need vm ware, almost all of them use you how do they reconcile of going against amazon or is it all internal or it's so good to be on amazon? >> it's all their choice we don't go to a customer and tell them which foundation to use. usually they make that choice. as they make that choice amazon is number one on the market. we usually tell them if your
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picking this cloud here's how you can get the best vm ware on premise and this is how you can expand that same vm ware into the cloud. almost every retailers uses air watch, technologies to secure data in the stores, on the phones, we have great partnerships there and in january where we did a big showing -- >> nike reported tonight, and it look good. tell me where you are in the nike chain because i know there's a direct consumer component that they really like right now, obviously a retail component, physical brick and mortar what are you doing for them >> nike spoke in the quarter this year and last year. they're talking about how they are building a data center for next generation on vm ware >> okay this is important because you know that's the future >> absolutely. so we want to be there with what
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they're doing. they've also decided to standard diaz technology on air watch and mobile security so, we're there in that capability nike's a good example, they tell us where they want to air their future in the data system, cloud and we're right with them. >> there's been this feeling over the last five days that somehow the cloud and data center's slowing that's where all these amazon, facebook, google going down. i don't hear from you there's a slow down at all >> we they there's going to be a good spending in -- and we're one of the the companies that can bridge both sides of that cast masm we have to see what the future holds in future spending the key thing is to become a trusted adviser to your customer and that's what we've been doing. nike we have 500,000 customers,
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they are the runs who drive our road map >> if you see strength there is strength that's sanjay putin. he's the ceo at a stock that i like very very much. "mad money's" back after the break. i just saved thousands on my loan at lendingtree.com. in less than a minute, i found out how much home i can afford. i like how you shop for loans the same way you shop for flights online. i didn't realize at lendingtree you can save money on almost any sort of loan. i consolidated my credit card debt with a personal loan. i found a new credit card with 0% interest for 15 months. you just shop, compare, and save. and it's all free. go to lendingtree right now and start saving.
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it is time -- and then the "lightening round's" over. are you ready? start with will in new hampshire. will. >> caller: what's up jim boo ya >> boo ya baby >> caller: right on man. just checking in on the airline sector i have a position in delta which i like, but i tend to slide love your thought on that and also with spirit being so low, what are your thoughts on
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that >> like delta, not a fan of spirit think that nub which is the symbol for southwest air is the best there is nothing like the stock of southwest air in that group i know the quarter is going to be blow out. neil in new jersey. >> caller: hey jim thanks for taking my call long time listener and a first time caller. jim i'm 65 years old and planning on retiring -- i'm 65-year-old and i'm planning on retiring in the next eight, ten months and i have in my retirement portfolio a fair robust state in general electric stock. over the years i've been reminded to reflect the more
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risk of defensive position and g and e is part of that plan regarding specifically giving the relative underperformance in the past two years, for someone at my stage in life, what is your opinion >> first of all you're young so let's stop that. take that off the table. we're not retiring we're going for another 30 years ge i got to tell you i'm very impressed on what flanries doing. here's already taking action now. i think it's $2 down and $3 up i know nobody's perfect but i'm holding it i'm taking another, let's go to chris in massachusetts chris. >> caller: hey jim thank for taking the call appreciate it. >> you're welcome. >> caller: where can i get my very own merger box? >> oh my, hard to come by, i had this one specially made by kurz
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well okay go ahead. >> caller: all right jim, there's an article released about a week ago about a bio tech firm about the upcoming -- >> yeah i read that. i'm not backing ae from por toe la i'm going to say it's going to have a -- >> merger. >> but i'm saying you can stick with it. and that ladies and gentlemen is the conclusion of the "lightening round. i'm here at the td ameritrade trader offices. steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. see options data like never before. with thinkorswim only at td ameritrade.
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if you only look at the averagers this market has been surprisingly stable, given all the gop uncertainty. whether you take many for service, we've been rocked by rotation after rotation. yesterday with the high flying tech stocks like fang sold off hard then today as i said at the top of the show, most of fang got a lit of its groove back and many consumer package the stock gave back its gain. in short, the stock is as tough as it looks. no as many americans spend time worrying about politics as they do focusing on the fundamentals, the companies they own i'm excited about the border market, i can't blame anyone who wants to fall back on some nice
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stable companies with stocks you can trust. tonight we're going off the charts to take a look at some of the most boring companies ever eli lilly. we're going to use -- whose been simply incredible of late with his picks. why lilly, familiar, stable, can be counted on. granted maybe calling it stable is stretching things a bit take a gander on this chart you'll see what i mean the stock's been a bit of a sea saw. in recent months it was traded up at 84, it launched to 77 in august, today it's back up to 4 and change that's kind of a big hiccup. you get me but as pointed out the recent pull back and rebound of the stock, it fits in a much larger
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long-term panel. since that major sell off the stock has slowly recovered look at that strong extremely upper score support underneath each time. yes, this is a floor over the last month, the floor's allowed this stock to make a rapid come back even better, there's the volume. when it comes to reading the charts -- or maybe it's deceiving. the trading volume in lilly was arriving particularly on the good day see that, that's very very strong what i'd like to see is accumulation on the big updates, that's the technical term people use. or consider the value line at the bottom of the chart. this is a momentum indicator and it looks as adding the volume on up days, subtracting the volume
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on down days when lilly held on to its 13 days an average when -- this stock could have more room to run. why, because when eli and lilly rally hard in june, so, you got to go back a little, the readings on this indicator were very strong. so compared to that right, back then the stock peaked at $84.25 and since then it's tried and failed to breakthrough that level of the outside, which is why, to become a knew ceiling of resistance collins pointed out after both instance failing to new highs the stock retreated back below its moving average failure, failure, right. so the partner was in the past was the stock was higher, so big institutions decided to bring the register, that's what you're seeing going below the blue line
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collins mentioned this pattern because now the pattern broke. this pattern broke this monday eli lilly finally managed to break out above $84.24 and it's still holding around that level. instead ofgetting hit like the last couple of times, the voracious buy is continue, sending the onbalance volume line scoring higher as oppose to lower. two floors to support underneath it's got 184.25, 182.25. even better because the stock resistance the real highs. nothing here so collins it can be smooth sailing for the upside, which is a big reason why he's such a fan of this old line factors suit call stock for most of this year the stock has been stuck trading in a wide
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channel. a floor 77 still gaining 85. many triggers will look at this picture and see a bull flag pattern. we got a big move higher last year before the stock resumes to much higher collins thinks it's the long interpretation to him the sideway's trading range has lasted too long to be a flag formation, that doesn't mean the channel's worthless it gives us not transition levels what gets collins excited is the actual action within this type training range some may look at this chart and see resistance but to collins those test have now formed one of my favorite patterns in the book, the book here is get rich carefully and a w pattern, almost always i
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found in get rich carefully was the single most reliable pattern to reduce up side. more than reverse head and shoulders, more than a penny, and it's not just the w. pattern. look at the bottom, that's a momentum indicator to figure out if the stock has been overboard or oversold. it just made a bullish cross over where the line goes above the red. the stock roared in response now, we're seeing the same kind of bullish cross over with the stock only a few nickels and dimes away from its long-term ceiling a resistance eli lilly can break out more than 85, that's much less than a buck here. if lilly goes above 85 he predicts competent with move to 90, 92 with the stock hitting $100 by memorial day
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we've been buying this stock all the way down and have no instinct to sell whatsoever now that it's come back to these levels what happens if the stock can't break down above 85? in that case collins wait for the stock to pull back and do some buying. as long as that level holds he thinks lilly stock will be fine, it will be fine with me too. stocks are cheaper when they've come down. particularly one with an amazing pipeline, including a college franchise which i think is really amazing bottom line, the choice is -- tim collins which has been red hot. as i said i am a huge fan of the company. in a chaotic world if you do a lot worse than this high-quality big pharma company stick with cramer.
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always a market somewhere and i promise to try to fine it for
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you. i'm tim 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." ♪ he's hoping to whet the sharks' appetite with his idea. hello, sharks. my name is les cookson. my product is the carsik bib. i am seeking a $30,000 investment in exchange for 15% of my company. now just imagine for a minute, that you're driving

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