First, even after this twoday, markets not down much at all. The s p 500s only off about 4 , dows off 5. 7 , nasdaq which totally red hot going into this week is down 3. T2 . Barely down at all especially when you consider this high index is up 22 for the year. That perspective matters. Today the high fliers in the nasdaq, the linkedin, teslas finally cracked, my favors celgene, regeneron and gilead. But very few can hold up even if they dont have that economic sensitivity. These highfly selloffs dont end in a day or two. They tend to last three four days before they start bouncing back and usually bounce back with a vengeance. Accept theyve been big winners and big winners do sell off and then your call not mine whether you can handle the disturbance, or if you want to ring the register, i suspect theyll go back when the deal is done. Again, perspective on things. As i like to do every time i get discouraged like today, i take a look at the wall street journal from october 4th of 2011. Thats when the s p 500 index fallen 19. 4 from its high after the onetwo punch of our first debt wrangling and the beginning of the session in europe. That was a huge selloff and traced to many of our similar political issues now, but as well as the lunacy on part of the European Central bank which bumped Interest Rates twice in the face that turned out to be a gigantic slowdown if not a Great Recession worse than ours. That made a lot of sense given the economies around the world were fragile. We were coming back in tepid fashion. Europe was sinking fast so was china. Perspective. Now we took a 7 hit to the s p 500 of a fiscal cliff issue last year before that was resolved, many stocks fell more than that. Thats appreciatively worse than what weve got right now. The economy is stronger here now than it was then and europe and china are in much better shape. Lets not lose sight of the fact we arent falling apart economically versus those down 19 and 7 declines when things were much more fragile. Okay. Thats the good news. And that news is very important. We do have a stronger economy now than during both of those crises, thats the point im making here. Europe and china have improved since then. Heres the bad news, same as the good news, the markets not falling part enough to get peoples attentions. No the on main street, not on wall street, something, of course, the speaker of the house tried to do too after the close. Neither the bond nor stock market is getting scaring people. Is that a highquality problem . I dont know. Up to you. Why is it, though, why hasnt it fallen more . Well, first the president has often said things are going to fall apart in this country without a deal. Said it in the debt ceiling in 2011, fiscal cliff 2012. We didnt fall apart because we got a deal. The speech today was on the one hand devastating of pretending whats going to happen. Theres no business person out here who thinks this wouldnt be a big deal. Not one. You go to anywhere from wall street to main street and you ask a ceo of a company or ask a Small Business person whether itd be a big deal if the United States government isnt paying its bills on time. Theyll tell you its a big deal. It would hurt. Yeah. Its kind of a total launch of Nuclear Weapons speech, the big deal theme. But on the other hand, weve heard variations of it before and never actually went nuclear. You know, i mean judging by the last two crisis, it was a mistake to sell into those very kind of speeches we heard today. People sold on the nuclear wrangling on 2011, 2012, couldnt get back in fast enough to profit from the bounceback. Second, i think that until this weekend, we didnt know how intransigent both sides were. Two things changed for certain this sunday. First, we got an article, a good article in the New York Times outlining how well financed the republicans who dont want to deal are. We learned many of these people want to starve the beast and would be perfectly willing to unseat the speaker of the house that tried to deal with the president. I dont think john boehner has the votes to stay speaker if he gives into president obama because of these opponents. They made it a circuit, made it very clear theres nothing to negotiate because the debt ceiling is tnot lifted. The president seems unwilling to call this a constitutional crisis and therefore invoke the 14th amendment to force the government to pay its bills even though they may turn out to be the only constitutional way out of this jam. Therefore, yesterday was the first day we realized there was no way out if everyone sticks to his guns. Thats something that seemed to elude people until friday afternoon when many investors thought there would be a deal to open the government and raise the debt ceiling for the moment or at least for the time that takes the nukes off the table. In the last 48 hours, the conversation has changed and it has changed dramatically. Weve gone to think the default was impossible. You heard that, 1 in 10 million shot, we should play those tapes again, right . To thinking its something not only on the table but it will be dealt with if and when it occurs. Thats right. We started talking about if and when it occurs today. It can occur. The president made it seem pretty clear that unless he gets his way without any negotiation, the bills wont be paid. How many times did he say today he wasnt budging. How did people say that was a forgiving speech . How many times did he say he was not willing to negotiate with a gun to his head . How many times did he say this time is different . Until the speech of the press conference, wed been tracing out a scenario where the deadline was considered fungible. Theres enough money in the till. Same with a lot of the other government bills. In fact, until the president spoke today, we felt there was a plan. A plan to avoid default no matter what. I thought there might be a plan there, like some secret plan. I thought the president was hard to follow on this issue in his press conference. Everyone acts like they could follow him perfectly, i couldnt. I live and breathe the stuff. I think he said there are things that can be done to mitigate these issues but theyre all bad. The least bad of all bad options kind of like argo. He also said theres nothing to be done in terms of prioritizing the debt that is satisfying to him. The uz that mean he wont authorize anything to be paid . Unclear. Now, were in new mode after today. Now were in a mode where the stock market or bond market has to experience real pain much more than we saw so far so negotiations can start in earnest. It seems well have to experience job offers. We dont have federal data because of the lame brain shutdown before anything can be done. Yesterday we got worried there was no deal over the weekend, today we got scared we were going to have no deal to pay the debt and no way to get out of the box. What is to happen . Im going to be clear again. I do not think therell be a default. That would be catastrophic because the world runs off our treasuries. By the way, this is not a 1 trillion problem. This is tens of trillions of dollars at risk of being thrown off kilter, which is why i dont think itll happen, its too big, its too big to think it can happen. Its much bigger than lehman. I dont know, people say its ten times bigger than lehman. Give me a break, its hundred times bigger. Ive been adamant a long time saying we will come down a lot more going into october 17th, they were supposed to run out of money and unique cash on hand for your stock portfolio as we have in my charitable trust. We did not put any money to work here. Ive been saying once we got past halloween, were in stress mode where real businesses get hurt. Today we heard the president say that we could have a very deep recession. His quote, if we dont get a deal and the deal has to be done by october 17th. He moved up the goal post back to where it was and made it clear that business could be crushed by a default if we go back over those goal posts. Heres my bottom line. President created some urgency today. Without the market coming down much more from where it is, that urgency doesnt yet have the gravitas needed to get something done. To me, that means more pain ahead. Fortunately, the economys stronger than the last political crises and the one before that. Still, expect more declines and more trouble before we get a deal that satisfies no one but does put the nukes gloriously back in the silos where they belong. Hey, why dont we speak to igor in new york, hey. Caller hey, this is igor from Staten Island, new york. Booyah for you. Thats a good one. Caller im calling about angi. Last week, they reported they cut their fees from 40 to 10. Since then, the stock is up over 35 . Is this stock oversold here . Or is the Business Model simply now viable . I have to tell you, i read the stories and felt awful about the stock. I said to myself, we have to avoid this one. Really the Business Model in correction is the correct call. And everyone on Staten Island should stay away from angies as well as everybody else. John in california, please, john . Caller jim, thank you so much for your show. Ive been to the red top, its darn good ice cream. Am i right . Is that good soft serve or what . Caller youve been there. You bet. Caller i want to ask you about qualcomm. Had it for a while. A while back i saw on your show you liked Texas Instruments better. But i noticed they had a pullback or a downgrade. Something to worry about . I didnt know i know they said business is going to go downhill two years from now. If its the kind of note that makes me say, you know what, i dont need that kind of risk. I would stay away from qualcomm. Its no angies list, its a good company with a lot of money, but that note was very disconcerting. Okay. Brace yourselves, more pain on the way but take comfort in the fact things were better than they were in the last two crises because the economy was better. The economy was real bad in this one. Mad money will be right back. Coming up supersize shale . Everythings bigger in texas including what could be the second largest Oil Discovery in the world. Tonight, cramers got an exclusive with the company at the center of this new source of american energy. The ceo of Pioneer Natural Resources is next. And later, diving into default . This is the credit worthiness of the United States were talking about. While d. C. Battles it out and puts the entire Global Economy at risk, cramers flipping the script. Dont miss his list of companies that could capitalize on the chaos in the capital. Plus, heart of glass . Looking for a way to play whats next in tech . Cramers got his eyes locked on the Company Powering google glass. Its already displayed a stunning performance, quadrupling this year alone. But could technical signals point to more . Find out on off the charts all coming up on mad money. 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 call at 1800743cnbc. Miss something . Head to madmoney. Cnbc. Com. Evto earn degrees in mathan stand science. Ut but more than half leave their programs. So were missing out on 450,000 math and science graduates annually. But if we can help students prepare for these subjects well have a stronger workforce for our fastestgrowing industries. Lets invest in our future. Join exxonmobil in advancing math and science education. Lets solve this. [ male announcer ] eeny, meeny, miny, go. More adventures await in the new sevenpassenger lexus gx. Lease the 2014 gx 460 for 499 a month for 27 months. See your lexus dealer. For 499 a month for 27 months. So i can reach ally bank 24 7, but there ar24 7. Branches . Im sorry, im just really reluctant to try new things. Really . Whats wrong with trying new things . Look mommys new vacuum cat screech you feel that in your muscles . I do. Drink water. Its a long story. Well, not having branches lets us give you great rates and service. Id like that. A new way to bank. A better way to save. Ally bank. Your money needs an ally. At Kaiser Permanente weve reduced serious heart attacks by 62 , which makes days with grandpa jack 100 more possible. Join us at kp. Org and thrive. While washington seems dead set on turning the United States into a mickey mouse country, theres still plenty of areas where we are nurl one and lets not forget it. Theres one particular area where were becoming number one. About to pass russia in the Worlds Largest producer of oil and gas. Rip your hearts out, saudi arabia. Weve been highlighting all of americas sexiest shale plays. And whats now looking like maybe the biggest of all, the Permian Basin down in texas and new mexico. You must talk about Pioneer Natural Resources. Pxd. Theyre the largest producer in the state of texas. But ive got to tell you, maybe the new major in this country. Eagle ford shale, barnette shale as well as the basin across texas, oklahoma and kansas. And the gas fields in the rockies. Company is sitting on vast quantities of oil, particularly in the oil field area of the permean, entering 225,000 barrels of oil a day. It was considered the largest uneconomic oil play on earth. But since then, new drilling techniques based on hydraulic fracturing. Up 80 since the year began, 15. 6 growth rate. I think its worth buying on any pullback because the companys growing production like crazy up 17 in the most recent quarter. Lets check in with Scott Chatfield chairman and ceo, maybe the greatest oil man in this country right now. Find out more about how his companys headed. Welcome to mad money. Thank you. Now, the reason i say this, theres two charts i wanted to show people because they blew me away. The first is, youve got largest u. S. Oil fields. And in it, youve got sprayberry. This looks much bigger. And the second, for a little perspective, a saudi arabia field and then ours . Yes. How can this be . Its all about a change in technology. Weve taken a field, weve been drilling vertical wells for the last 30 years, 40 years. And now were finding out theres about eight key zones. Its like having eight eagle ford or eight bakkens, theres 3,500 feet of shale. Were going into those zones, making wells that make about 3,500 barrels a day where they used to make 100 a day. Theres like eight eagle fords on top of each other or eight bakkens on top of each other. Thats what got everybody excited. All right, scott. No ones talking about this other than you guys. Hows that possible . I mean when it was discovered, everyone knew about it. When the bakkens got going, no one believed the bakken could be as big, and then we were told about the eagle ford being big. How can it be dwarfed by this field no ones talking about . Were talking about it. Well, other than you. People like concho are talking about it. Theres a lot of apache is starting to talk about it. Focusing their attention to it. But weve been the most dominant player in the midland basin and this spraberry wolf camp for years. Back in the 80s and 90s, most of of the 900,000 acres is held by production. And so were the ones that have been doing most of the drilling. Well be doing most of the drilling. Were ramping up to about 50 horizontal rigs over the next five years. We have the largest data base in the midland basin. Over 70,000 well logs, over 12,000 feet of core. So thats why we have the data base so we sort of have controlled whats been discussed about this field for the last 30 years. Okay. Now, when i listen to simmerx last night, are you a Refining Company or an oil company . Were an oil company, but we have some of the best geoscientists and engineers you can ever find. Our company moved to dallas back in 19 the 1997, we merged with mesa and got some of the top geoscientists in the industry to go to work for us. Theyre doing the work. All right. Now, there are other companies trying to get in. The chinese are trying to get in. You sold just a sliver of your business to china for a huge amount of money, right . Yes, we sold roughly 40 position in 200,000 acres, so 80,000 acres, so probably a little bit less than 10 for about 21,000 per acre. Its a great partnership. Were in the process, up to seven rigs, well be ramping up to 10, 11 rigs next year, horizonta horizontals, over 10,000 barrels a day. Were ramping up to 350,000 barrels a day over the next 20 years. Now, the curve here shows that youre not even where a lot of times we see them go down quickly. Yours is going like this. You think 2013s going to being a big year. Yeah, we expect to grow per share 15 to 20 over the next several years. When you stop modelling these type curves, payouts less than a year, theres 17,000 barrels a day. Theyre when you start focusing your attention on the best wells, we should grow at that rate. Should you sell the properties and fund a gigantic amount of drilling right now in in spraberry . In fact, we sort of did that. In 2006, we made a strategic decision. We got out of all international assets. Right. Out of the gulf of mexico assets, refocused all the attention, the engineers and the geologists on primarily the eagle ford and primarily west texas in the midland basin. And you have enough money to develop spraberry . Yes, we do. As long as crude prices stay relatively in the 90 range, we have plenty of cash flow over the next several years. What a story. I mean, i think its good to have a good story on a couple bad days. Yours is youre the next big major. I cant believe it. Youre the next big major. Thanks, jim. Okay. Absolutely. Scott sheffield, chairman and ceo of Pioneer Natural Resources. Go through his presentation, largest u. S. Oil fields and youll feel like i am. You will be blown away. Stay with cramer. Coming up diving into default . This is the credit worthiness of the United States were talking about. While d. C. Battles it out and puts the entire Global Economy at risk, cramers flipping the script. Dont miss his list of companies that could capitalize on the chaos in the capital. And later looking for a way to play whats next in tech . Cramers got his eyes locked on the Company Powering google glass. Its already displayed a stunning performance quadrupling this year alone. But could technical signals point to more . Find out on off the charts. All coming up on mad money. Booyah for some companies, a default or at least the whiff of a default is a terrible thing to waste. These are companies that are itching to get their hands on their own stocks. They might actually welcome the continued selloff as they know their businesses wont be that badly impacted even by the prospect of an actual couple day default. The reason. They think theyve seen this movie before when lehman defaulted and they believe theyll get through it. Could they be right . They can make themselves right. Who are these potential buyers . Buyers of their own shares . Which Companies Want to use the pain in the stock market for their own gain . Before i give you these names, lets make sure we understand each other. A default and all out default would be cataclysmic. I think the president wont risk being the only president in history to ever default actually not pay the bills of this nation you could say, wait a second, we did that in the 1700s. When history looks back, they wont remember the speaker of the house, theyll remember the president. Thats a weighty thing to be tabbed with. As long as the interest in the debt keeps being paid in some form or another, even if it means other services really are shut down or payouts are curtailed, i reiterate, there will not be a default. The economy will be crushed. You cant have the 60 billion a day the government pays out suddenly disappear think the economy wont collapse. Thats a gigantic swath of checks no longer in the mail. Unless we get a deal, they wont be in the mail come november 1st, which i think is the real drop date despite what the president said about it being october 17th. So much gets sent out at the beginning of the month, it is unconceivable therell be enough in the till to cover all those bills. At that point, the economic game will be too intense. The pain will be too intense for t and the president will find some way to negotiate in a nonnegotiating way. We have to figure the president and gop finally budge. The idea of a default as likely as a meteor or whatever hyperbole we keep hearing, that flies in the face of the bitterness. In fact, the amazing thing about this moment is that until yesterday, so few people seemed to be genuinely worried about a default. Thats probably a mistake after listening to todays press conference when the president , he scared us. He made you understand we could both have a default and serious recession. I think the odds of a default min mouse. But they arent as long as they were last friday. Now, Many Companies will claim they want to take a longer term view and sit and wait because of this crisis. But some Companies Generally like to take a longterm view. An actual longterm view. Which is why they take action into the teeth of whatever occurs. I say whatever because we really dont know what will happen. They think the longterm must be addressed now. Who has that luxury . Who can take action, whos confident enough in their businesses to actually spend money and buy stocks . Buy their own stocks . There are a handful of companies that use it to buy back their stocks at phenomenal prices. The executives have faith in their companies and business plan. First up, gamestop. When everyone including yours truly was scared about the gaming business, what did the Worlds Largest do . Pay down its debt. Just when everyone was fretting, gamestop took a look at the world and declared it good. The hardware cycle is about to kick in. He realized he could take share from whoever was left. He understood games were amazing. He bought back a ton of stock at much lower prices. Now that the new machines are in the stores and the latest grand theft auto is proving to be the greatest moneymaker of all times. Do you think hes going to sit on his hands . I think hes going to buy with both hands especially since he thinks 2014 is going to be better than 2013 and 2015 even better than that. Why not buy in stock . Dont forget, gamestop already has a substantial European Business and says thats starting to improve. Its 1 of 24 companies in the s p 500 with no debt whatsoever. Although its the only one i would not be worried about when it comes to debtrelated recession because these games seem to have a fascination by themselves. 31 loyal gamers are not walking away from gamestop just when the gettings good for their gaming business. Next up, how about those incredible media stocks. Take a look at how much viacom bought back. 17 million before the start of the recession. Now viacom has 491 million shares. David faber and i marvel over this every time we mention the media stock, we cannot believe how much stock is bought in here. The Company Company just prints money and likes to buy on bad days. I bet some will be bidding for every share that comes in during the impending crisis. Will cvs be any different . I see cbs dropping from 771 million in 2006 to 624 million now. And thats going to keep shrinking if the debtrelated calamity occurs. There must be something in the water at these media companies. Time warner, a company willing to buy everything that moves and america online, which in two year has taken from 106 million down to 81 million. The ceos of the relative companies as they have faith in the cash generation and deploying that capital in a very smart way. How about this windham worldwide . Thats under steve holmes, this Company Seems addicted to doing the right thing for shareholders. Four years ago, there were 182 million shares, now there are 136 million. Every time weve had steve on the show, hes said the same thing. Hes giving the money his company doesnt need to grow right back to the shareholders. And thats why this one is a longterm winner because of the capital allocation. These are all stories about capital allegation. Finally theres a company that hasnt done that well lately because the economys been a little too strong for its business. Markets convinced a too Strong Economy makes it less likely well fix our cars ourselves and more likely to buy a new one. Autozone doesnt care. Keeps taking back that cash and buying back stock. In six years the company has bought back half of the shares outstanding. Dont you think itll have a field day as the food fight in washington continues . I think it will especially as the economy slows, even better for autozone. Yesterday i talked about dividends a way to protect yourself and reiterate those are terrific safety nets. I think when we look at the calendar, where we are in the year and how little time is left in 2013, it is reasonable to believe that the large Institutional Investors are well aware of the patterns im talking about and they want to take action. Heres the bottom line. Those huge buyers will be fighting with gamestop, cbs, aol and autozone for every share that comes in the next four weeks. Which is why these are natural places to be bidding on cataclysmic days like today. If the companies werent worried and bought all through the Great Recession, which was real and lasting, dont you think theyll be buying through the debt ceiling debacle which is phony and not lasting . You bet they will. Dont jump the gun, though. After todays speech and the press conference, it appears theres more pain lies ahead. I dont expect this time to be any different. Pick your favorite and pick at it on the way down by the time the debt deal is at last solved or we are down 10 to 15 from the 2013 highs of these incredible stocks. Booyah, jim. Booyah. I always thought a company like groupon would be able to use red boxs network of kiosks to advertise and sell deals to millions of valueseeking customers. What do you think will happen with outer wall . Well, outerwall, im not as bullish. Its funny, i thought you were going to say groupon, i am bullish on groupon because of the unbelievable management team. Its an inexpensive stock. I dont know what the exact catalyst will be there. But i like the groupon on any weakness because thats a turn around story that is definitely working. Lets go to aaron in california. Aaron . Caller hi, jim, this is aaron from california. How are you . Caller good, how are you . Good, thank you. Caller what do you think of carl icahn disclosing his stake yesterday . Talisman is a good company. The stock came back down because talisman came down its up on a spike. Talisman is shifting rally to oil. Its undervalued because people think they got the nat gas thing wrong. I think its a good bet. Okay. On tough days, you can bet on the opportunistic buyers. Who are they . The managements of gamestop, viacom, cbs, aol, wyndham and the zone. Stay with cramer. Tomorrow, kick off the trading day with squawk on the street. Live from post9 00 at the nyse. You probably still have to worry about a haircut, but i know a haircut when it comes to a margin desk. At a ford dealer with a little q and a for fiona. Tell me fiona, whos having a big tire event . Your ford dealer. Who has 11 major brands to choose from . Your ford dealer. Whos offering a rebate . Your ford dealer. Who has the low price tire guarantee, affording peace of mind to anyone who might be in the market for a new set of tires . Your ford dealer. Im beginning to sense a pattern. Get up to 140 in mailin rebates when you buy four select tires with the Ford Service Credit card. Whered you get that sweater vest . Your ford dealer. When you do what i do, iyou think about risk. I dont like the ups and downs of the market, but i cant just sit on my cash. I want to be prepared for the long haul. Ishares minimum volatility etfs. Investments designed for a smoother ride. Find out why 9 out of 10 large professional investors choose ishares for their etfs. Ishares by blackrock. Call 1800ishares for a prospectus, which includes investment objectives, risks, charges and expenses. 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Oh, boy, it is time for the lightning round on cramers mad money. Rapidfire calls, i tell you whether to buy or sell. Play until this sound and then the lightning round is over. Are you ready . Time for the lightning round on cramers mad money. Kevin in washington, kevin . Caller hey there, big booyah from washington. Good to have you. Caller so i bought stock from aig a few years back for 20 a share, now theyre 50 a share. What should i do . I think robert b you shoul stick with aig. Caller booyah. Booyah to you. Caller what do you think about seaworld . No. Seaworld missed, i have to tell you that was quite shocking. Lets go to jack in texas. Jack . Caller hey, jim. Yo, yo. Caller Permian Basin booyah. Im going to come back with a spraberry permian booyah. Caller a few weeks ago, ceo rick smith of taser was on the show. After last weeks price reduction on their products, what effect will this have on the Earnings Report at the end of the month . I think this is a Bigger Company developing a larger, a larger cloud product i think is going to be able to make it. Better than we think. How about barbara . Caller hi, jim, greetings from the beach. Love your show. Whats up . Caller love your show. My question is about at t. Yesterday, you mentioned stocks that paid dividends. What do you think about at t yeah, at t, i did the piece and cut out at t, i think the verizon deal is better than people realize. But at t has a good yield. I think at this these prices, ive got to tell you, lets say you get that thing at 32, 31 with a 5. 76 yield, thats for me. Lets go to mike in new jersey. Mike . Caller hey, jim, how are you doing . All right. How about you . Caller awesome, great. Im calling about globe specialty metals. Gsm. Hitting a high. This is alloy metals. We had the company on when the stock was much lower. Ive got to hand it to them, i think the stock is working. Trey in texas, trey . Caller howdy, jim, this is trey down in south texas. Nice. Close enough to oil. Whats up . Caller got a real Popular Store down here Tractor Supply. I was checking on Tractor Supply company stock. Tractor supply is a high multiple stock thats going to come in as all the high multiple stocks whether it be netflix, amazon, or tesla. Its a stock thats going to bounce back fastest. I would buy with deep in the money calls, scaling in and scale in ultimately down 10 to 15 from the high and thats when you should finish the position. Phillip in massachusetts, phillip . Caller booyah. How are you doing, master james . Real good, partner. How about you . Caller all right despite the fact that the patriots lost this week and red sox and i guess im hanging in there. My question is what do you think of Onconova Therapeutics . Im not sure. I need to do more work. Ive got to take one more call. Lets go to tater in florida. Tater . Go ahead. Caller go gators. Jim, as an alumni, ive got plenty in my portfolio, im looking for a little offense. What do you think about dry ships . Do you know what dryships is . A cross between Florida State and clemson you have got a highflying offense im going to spot you 62 points, i think youve got a winner. And that, ladies and gentlemen, is the conclusion of the lightning round. The lightning round is sponsored by td ameritrade. Coming up heart of glass . Looking for a way to play whats next in tech . Cramers got his eyes locked on the power companying google glass. Its already displayed a stunning performance. Quadrupling this year alone. But could technical signals point to more . Find out on off the charts. [ indistinct shouting ] [ male announcer ] time and sales data. Splitsecond stats. [ indistinct shouting ] its so close to the options floor. [ indistinct shouting, bell dinging ]. Youll bust your brain box. All on thinkorswim from td ameritrade. From td ameritrade. announcer at scottrade, our cexactly how they want. T with scottrades online banking, i get one view of my bank and brokerage accounts with one login. To easily move my money when i need to. Plus, when i call my local scottrade office, i can talk to someone who knows how i trade. Because i dont trade like everybody. I trade like me. Im with scottrade. announcer scottradeproud to be ranked best overall client experience. Acso 45 states and then District Of Columbia have voluntarily decided to raise the bar with consistent educational standards. Now, students in those states will have a better chance to succeed in college and careers and to compete in the Global Economy. Which means a Better Future for our students and our nation. Join exxonmobil in supporting the common core state standards. Lets solve this. In a world thats changing faster than ever, we believe outshining the competition tomorrow requires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. An environment like this one where the washington induced catastrophe seems to linger permanently on the horizon, its more important to find yourself interested in the process of investing. Once you lose interest, you stop paying attention. When you stop paying attention, you maybe dont check your statements. As soon as that happens, youre asking to get wiped out all over again. Thats why im trying to convince you to add something a little extra to your portfolio, a little to buy something exciting, maybe its high risk, high reward, a stock that will grab and hold your interest even during the dark period like this one clm tonight were going off the charts with a speculative stock. And im getting called about this one during the lightning round. Its called Himax Technologies hmx. They design the display drivers for everything from flat screen tvs, computer monitors, laptops, tablets and smartphone displays. Its been blessed by the audience, bob lang, brilliant technician as well as being my colleague at the street. Com and a third blessing, the fundamental side from brian ashtenberg who owns as part of a news letter where they only consider stocks with the hottest metrics. Okay. Thats all the fundamentals and chart work, but lets focus on this. This stock has moved up. Its more than tripled since the beginning of the year. Rallying 320 from 2. 40 just above 10. The truth is, designing these lcd chips is basically a commodity business which has always worried me about himax. Not a great business. Lately, though, moving into other areas that could be more lucrative. Designing tv chip sets, image sensors, Touch Panel Controllers and most important, the chips that power liquid crystal on silicon displays like those used in google class. Googles computerized smart glasses that are launching next year, all of these new businesses only account for 15 . Company believes, though, the figure will hit 30 next year. Google bought a 30 stake on crystal and silicon subsidiary. They have an option to buy another 8. 5 of this part of the business. The stocks been up ever since. Theres a real story behind himax, albeit a speculative one. I just dont think its come down enough. But the charts, according to technical expert lang say differently. He says youre looking at the anatomy of a small cap momentum stock here. First of all, lang points out ha himax has rallied over the past month and a half. Done so on tremendous volume, much higher than average volume. You got that . Which tells us that big Institutional Investors are buying when the big boys get involved in a little stock like this one, they can send it soaring higher because the positions need to be huge in order to be meaningful to their funds. When himax pulled back below nine, lang notes the stock was up in a hurry in a matter of days making new highs. Checking out the convergence divergence used to detect changes before, before they happened. And with himax at the beginning of september right about when this rally took off, we got a classic bullish crossover in the macd. Basically the technical equivalent of a green light telling you to buy. And lang says the macd remains in bullish territory. Then theres the williams r, this is that second one. Thats an oscillator, a tool developed by commodities trader named Larry Williams to detect if its overbought or oversold. According to lang its overbought since the beginning of september. What does that mean . What is that . Doesnt that mean its considered its due for a pullback . If it stays overbought, especially a month. He says its a sign of unrelenting momentum. Wow. All right. Now lets take a look at the weekly chart. When you see this stock has shown incredible strength ever since it broke out above 2. Will you look at that thing . You get lost in the trees of washington and realize theres opportunities like this out there. Weve seen a massive volume increasing on the year. See whats gone on. Lang notes when himax has pulled back during this period its consistently made for a terrific buying opportunity. Its worth pointing out that himax got hit hard today falling 53 cents or 5 . Lang thinks you can see another fantastic chance to buy this one, especially if it goes lower, the best trends out there rally and give you a chance to get onboard and lang says they rarely do this. Himax is one of the best but you seem to be getting your chance here. You can get a better one if it goes lower. One last point, i wouldnt mention a stock as speculative as himax on the charts if it didnt give you downside preservation. As it happens, himax is sitting on 1 per share in cash. More important, pays a dividend, decent one for a hightech stock, yields 2. 5 . If himax gets slammed, youve got that yield to protect you. In the suddenly Terrible Market like this, you need something to get excited about. And according to the newsletter, bob lang, brian ashtenberg and then a model that says its good, himax is not just hot, its smoking hot, i want yo uh to be careful with this one. Do not buy it in strength. If it rallies tomorrow, take a pass. Wait for it to come back down. Get a better entry point. Give it some time and im sure youll get one considering the damage being done to the market and the mess in washington. Stay with cramer. Mad about mad money . Immerse yourself into cramers world while you watch the show with zeebox. On your phone, tablet or on the web, get sneak peeks, go behind the scenes and join the conversation. Download the free app today for the ultimate cramerican adventure. [ man ] on december 17, 1903, the Wright Brothers became the first in flight. [ goodall ] i think the most amazing thing is how like us these chimpanzees are. [ laughing ] [ woman ] can you hear me . And you hear your voice . Oh, its exciting [ man ] touchdown confirmed. Were safe on mars. [ cheers and applause ] hi. [ baby fussing ] humans. We are beautifully imperfect creatures living in an imperfect world. Thats why Liberty Mutual insurance has your back, offering exclusive products like optional better car replacement, where if your car is totaled, we give you the money to buy one a model year newer. Call. 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How about tech . Almost every company has dealings with the federal government and tech. You want to be on hold with them and tell people all is well . How much money is lent out every day on treasuries that would suddenly trigger a margin call . Who knows what Mortgage Rates will be . Whats prudent . You cant just ride treasuries through this if you think about it because of how much interest is on the line. Youre trying to match interest with payments to depositors. Report soon should be palpable and the number of cuts so obvious if this goes on the point where the default is a recent possibility, the whole group will be difficult to own. Now, i know the republicans think that defaulting would be a wakeup call. There was an amazing article in the Washington Post about a congressman named ted yoho who seems to be on a mission to get us to default to teach everyone a lesson, whoever anyone is. Now, he is a person whom every business person in the country should listen to but also fear. Because the lesson he teaches is going to be borne by private companies not the federal government. This man has tremendous conviction, no one around him should fault him for that. He was elected with this view. Be if i were in the business of his district, maybe working at the local walmart or target or bank, id be working tirelessly to defeat him because hes voting to slow down private business, voting to cut your numbers. They can take numbers down. Now, those who dont care about stocks, at least shortterm, those who dont care about savings or retirement accounts and im not picking on yoho, it happens to be his comments are more stark than others. Trying to preserve the longterm value of these assets. Thats not how the market works. The pro default caucus gets their way, they will crush current earnings, current savings, scare the wits out of people, lower confidence, increase layoffs all in the name of longterm solvency. They would raise the price of interest on treasuries dramatically in order to be able to lower the price of interest . Maybe thats a good tradeoff, maybe default is the way to sober up the nation. Maybe yoho stands if it prevails will do the same. Does anyone think that lehman was the best way to straighten out the Banking System . The layoffs, the loss . Was that a way to sober up bankers and regulators . Otherwise, theres better ways to go. This is going to be a long and awful earnings season. Stay with cramer. Customer erin swenson ordered shoes from us online but they didnt fit. Customers not happy, im not happy. Sales go down, im not happy. Merch comes back, im not happy. Use ups. They make returns easy. Unhappy customer becomes happy customer. Then, repeat customer. Easy returns, im happy. Repeat customers, im happy. Sales go up, im happy. I ordered another pair. Im happy. both im happy. Im happy. Happy. Happy. Happy. Happy. Happy happy. I love logistics. Im bethand im michelle. And we own the paper cottage. Its a stationery and gifts store. Anything we purchase for the paper cottage goes on our ink card. So you can manage your business expenses and access them online instantly with the Game Changing app from ink. We didnt get into business to spend time managing receipts, thats why we have ink. We like being in business because we like being creative, we like interacting with people. So you have time to focus on the things you love. Ink from chase. So you can. But at xerox weve embraced a new role. Working behind the scenes to provide companies with services. Like helping hr departments manage benefits and pensions for over 11 million employees. Reducing document costs by up to 30 . And processing 421 billion dollars in accounts payables each year. Helping thousands of companies simplify how work gets done. Hows that for an encore . With xerox, youre ready for real business. Hows that for an encore . If we want to improve our schools. What should we invest in . Maybe New Buildings . What about updated equipment . They can help, but recent research shows. Nothing transforms schools like investing in advanced teacher education. Lets build a strong foundation. Lets invest in our teachers so they can inspire our students. Lets solve this. Tough day. Id like to say theres always a bull market. Good evening, everyone. Im larry kudlow. This is the kudlow report. Were live at 7 00 p. M. Eastern and 4 00 western. Tomorrow president obama will nominate dr. Janet yellen as the next chair of the federal reserve. Lets go to steve gleason. This is not a shocking surprise, is it . No. The surprise is it took so long