Or else well have more days like today. Where the averages got scalded. Dow plunging 131 points. Nasdaq declining. Thats precisely what happened this session. The market said with this particular pummeling that the consumer is on the ropes. Not enough good things happening away from the consumer. To keep the averages at thats admittedly lofty levels. How do we know this . Simple. Because of a slogan. A slogan many of us are familiar with. Macys has everything. And today for first time in four years macys reported sales and earnings that were disappointing. And the companys too good, too well run with to good of a breadth of merchandise not to worry about the short fall. And from the looks of it, not a lot of everything selling. Thiss the last thing we want to hear. My current thing, were losing the leadership by the day. We know every citizen, remember the spike at the twoyear high, the housing market, theyre nowhere to be seen on the new high list. Theyre more likely to be found hovering near the low list giving up hard fought gains. I know mortgage gains are up from historic lows and housing is more affordable than in 2006, but not enough anymore, people. There are many sectors that depend on housing for oomph and its within them. We have had terrific runs. Many applies as paints, woods, mortgage insurers, any further increases in Mortgage Rates and thisre that theyre only a hairs breath from going higher. No wonder we saw still more things and even stanley and black decker reversed and declined today. You get the selloff in housing. Going to see some declines in some Bank Earnings and financials are the Largest Group on the s p 500. Thats something to watch too. Which makes macys which fell 2 today so poetent and negative. They sell products by companies that have done quite well and they sell apparel. One of the strongest groups in the last year. Macys sells Beauty Products and accessories. Products made by more companies that are near the 52week list of fossils. Then on the low list should we not be looking at the categories of suspect . I dont know. Maybe too damning, but lets say were concerned. Now, if we were so worry and macys, why didnt the market take a huge header instead of dip . Like a big percentage and a half decline or anything. Leadership, just a few groups today. So the mineral stocks, this is market that loves to cut slack. No sooner than macys reported the numbers than yours truly explained the macys problems, maybe theyre temporary. You can call me al for the company. I think the bankable ceo of macys, we had him on the show. He said an abnormally cool spring hurt them. And the back to School Season got off to a slow start. So maybe the sales will be made up. However, we have to recognize there are head winds out there that transcend the weather. Im going to tick down the negatives here. Consider all these negatives. The sequester, Unemployment Insurance cut backs, furloughs, scary headlines, Rising Interest Rates and mortgage and higher gasoline prices. Youre kind of shocked that the consumers are spending at all, arent you . Given that we are Consumer Spending driven economy, that portends bad from dining out. We have heard had a lot of weakness to travel and apropos of that, we have a hard number from seaworld today to autos. We have got plenty of retailers left to support and they have been taken down a notch because of macys. If your condition is not shaken a tad by this disappoint, youre too bullish. Why not take a huge swath off the money instead of the smaller shin itsling. First, the fed chomps at macys too. Believe me, theyre looking at the same data were looking at and second, europe, japan and china. Continuing to provide tail winds. Not head winds. With still more data signaling today overnight that things are Getting Better not worse. Hence, the mining stocks can have a better day. Those are generals with no armies behind them, they had no oomph. Keep an eye on that. So with the decline comes yes i have to say it because its been right for the last 8,000 points opportunity. I have been waiting for it since the drug stocks to come in, but they have been overshadowed by the consumer stocks. Here comes j j. Punitive leader of this whole market. With the below the airline accommodation, will come more orders for planes because more Competition Among airlines means more planes on order. Boeing has been stalled here. But if it comes down more, you can count me in. With Worldwide Growth coming back you have to get more in the growth, dont you . Fifth, lets not forget the real sore point. Sure, cree got annihilated today. Expectations got too high. Speaking of speculations getting too high, the same thing happened with cisco which depreciationed more than 25 . And pretty stunning. Producing a shocking 10 decline in the stock and by the way my Charitable Trust owns. I urge you to keep in front of you what the ceo of the tech supermarket told us last night on the show. Orders for he has 100,000 customer, orders are better than expected. From storm devices, theyre stronger not weaker despite cree. Despite cisco. Theres nothing wrong with a little tech leadership, notably apple. Brought on by some shrewd buying. More on that one later. Finally, a funny thing happens when the stocks go down. They get more attractive. And they have been for a couple of weeks. I think there are plenty of managers who are looking to get in. Those guys are circling back to the companies that reported good numbers a few weeks ago and were promptly shot out of reaching the upside. Its providing some nice entry points so heres the bottom line. When macys disappoints, well, we have to be concerned because macys is a National Barometer of the american consumerme. You cant be as bullish as before you heard the news. The news should make you more cautious. Until we either get some better macro and corporate numbers or we get lower stock prices. Well get one or the other. Perhaps you should prepare for both. Michael in illinois, michael . Caller hi, from chicago. Im michael. Yeah. Caller jim, a dutchpolish booyah to you. Its a melting pot here. I have a similar sized company in beazer and i was wondering if you have an opinion about it. Yeah, i dont really care for it. Look, you have a i talked to stephanie link today, and we were saying, geez, if we were going to buy a home builder we will buy. Hey, john. From illinois. Caller hey, is this jim . Yes. Caller this is john from peoria, illinois. Big booyah, buddy. Whats going on . Caller not too much. I know that china is having a slow recovery. I need to know if you think that caterpillar stock is going to drift below 80 a share and also casing hollings outlook . Lets go into these. I like agco, which did better than deere this morning. Caterpillar took the expectations out of the stock when it reported so i think it will have a hard time going below 80. Not my favorite. Im waiting for cummins to have a pull back. And that cummins 12 liter natural gas engine is such a bargain. Lets go to christopher. Caller hey, jim. Christopher from tampa, florida. How are you . Good. How about you . Caller im good. But unfortunately, macys didnt make my day. No. Didnt make anybodys day. Except maybe gimbels. Caller exactly. My question is concerning sears. With regard to, you know, basically every retailer being hit, i decided to go the opposite way on this when i learned a long time ago that they were starting to try to like get into the internet and they were diluting a little bit. I thought i could catch them on the put option. So right now im holding a couple puts at september 44s. I was wondering if i can expect a lukewarm reaction on i dont know. I dont know what the edge is. Seriously, j. C. Penney is trading up after the bell and if theyre doing better, maybe buys a little sears. I dont know that situation. Maybe quality retailer, longer have versus it doesnt trade a good short. I dont shop there. The market the consumer comes first. Macys, it equals using caution. And so we see some signs that are macro numbers, maybe employment. Lets be more cautious. Mad money will be right back. Coming up, level the playing field. Two traders charged with fraud after costing jpmorgan 6. 2 billion, but what can be done to make sure youre protected . Dont miss cramers week. And shark week is over, but have no fear, shark week is here. Tonight, the turbulent waters surrounding apple. The eye of an activist investor have put it in the center of a wall street feeding frenzy. And now, cramers diving in to check the technicals and make a critical call. Plus, medical might. Cancer battling biotech immunogen has pulled back from the recent highs after earnings, but its going higher today. Can its targeted therapies keep it on the right track . Dont miss cramers interview with the ceo. All coming up on mad money. Dont miss a second of mad money. Follow jim cramer on twitter. Have a question . Tweet cramer mad tweets. Send jim an madmoney cnbc. Com or give us a call at 1800743cnbc. Miss something . Head to madmoney. Cnbc. Com. For the strong and the elegant. For the authentic. For at home and on the go. For pessimists and optimists. For those who love you a little and those who love you a lot. For ultimate flavor and great refreshment with or without calories. For carefree enjoyment. For those who have a lot to say and those who have nothing to add. For those who want to choose and choose. For every generation. For us. For everyone. Forever. announcer scottrade knows our and invest their own way. With scottrades smart text, i can quickly understand my charts, and spend more time trading. Their quick trade bar lets my account follow me online so i can react in realtime. Plus, my local scottrade office is there to help. Because they know i dont trade like everybody. I trade like me. Im with scottrade. announcer scottrade. Voted best Investment Services company. Time to have new experiences with a familiar keyboard. To update our status without opening an app. To have all our messages in one place. To browse. And share. Faster than ever. Its time to do everything better than before. The new blackberry q10. S time. If youre like me, youve been working youve been working like a dog all year. But you dont need to camp out til labor day to reward yourself mattress discounters labor day sale is on now rest those tired bones on a queen size sealy gel memory Foam Mattress for just 497 get 48 months interestfree financing on the entire tempurpedic cloud collection. But this sale wont last long mattress discounters well, the financial world changed people the u. S. Attorney for the southern direct of new york charged some Key Employees at jpmorgan with fraud and a conconspiracy losses. Even if it makes potential fraudsters think twice its a win for you and a win for everyone. Its terrific that the government is pursuing this kind of activity which frankly really isnt any different than a Division Within a company that kept two sets of books. Disorganized crime. Its easy to suggest the whole enterprise might be corrupt. They made misjudgments throughout the company. They told you that. However, when jpmorgan found out about the second set of books and they said, authorities, please investigate this issue. With the Top Executive did wasnt criminal. Just stupid. And like it or not, cant prosecute people for stupidity or can you game fraud. There are people who try to get over on the system, to conspire and steal. Where billions and billions were lost. If you believe the indictment these alleged crooks still billions in market cap from the institution which was ill equipped to discover the second set of books and was way too trusting, still this kind of behavior will happen again and again. Its human nature and no prosecution is going to stop human nature. All they can do besides humans after the crimes is committed is to put fear in the other crooks and putting people behind bars is a for real preventive. If you increase the odds theyll go to jail, there are fewer frauds committed. That is good. But theres also a systemic problem here. Systemic problem that this case illustrates but doesnt solve. The amaze thing about the whole imbroglio, lots of smart people couldnt detect that something was wrong. Thats because the market that the alleged crooks played in is totally opaque. As someone whos traded or involved in this case, i can tell you theres way too much guess work about what theyre really worth. The alleged fraudsters could get away with having two sets of books because nobody knows which set is the wrong or the right books. No one can figure out what the heck they were worth. Thats why it was easy to commit this kind of fraud. Its why i want all derivatives traded and so they can be there for all to see. It can be advantageous for the client. And in other words you can rip people off in the dark. You cant rip them off in the sunlight. You want to prevent this type of individual fraud, you prosecute. You have to shine a light on this stuff. Without that sunlight as a disinfectant you cant police this nonsense. It was a sobering lesson to shine some light and not put up huge lanterns or derivatives. The top dogs as smart as they are cant spot crime within their own walls. If you want more crimes, keep the derivatives in the dark. Even if the prosecutors get the men there are dozens more right behind them ready to commit the same fraud. Bottom line without a spotlight on the market its too easy for neerdowells to get away with this. No matter how big, how smart, how successful. Jeff in rhode island. Caller jim, how are you . Real good. How about you, partner . Caller not bad. Big jeff, the dude coming at you from rhode island. On the financial, the bank i have owned for quite some time. Used a trade a lot higher. Been on a run. Been up about 150 in the last year or so. Used to pay a fat dividend. Whats the deal with lyg lloyds . Lloyds is coming back. I trump you with royal bank of scotland. Of course theyre selling some stocks from the government, but rbs is better than lloyds. Derivatives, lets shine a light or put them out of business. After the break, ill try to make you more money. Coming up, shark week is over, but have no fear. Shark week is here. Tonight, the turbulent waters surrounding apple. Its recent rebound. Iphone rumors and the eye of the activist investor have put it in the center of a wall street feeding frenzy. And now, cramers diving in to check the technicals and make a critical call. [ male announcer ] come to the lexus golden opportunity sales event and choose from one of five lexus hybrids thats right for you, including the lexus es and ct hybrids. This is the pursuit of perfection. Over 20 million drivers are insured with geico. So get a free rate quote today. I love it how much do you love it . Animation is hot. And i think it makes geicos 20 million drivers message very compelling, very compelling. This is some really strong stuff so you turned me into a cartoon. Lovely. Geico. Fifteen minutes could save you fifteen percent or more on car insurance. If this fabulous rally from apple for real or a fact that karl icahn announced he has a big position in the iphone maker . Does the stock have more room to run . Tonight were going off the charts to answer this question as part of shark week. Again not to be confused with shark week. Your tweets have been great all week. Please keep them coming jim cramer sharknado. Heres one, memo okay to help inspire tonights segment, wow, apple sharknado. White wave is a great idea. If only starbucks would offer almond milk again yummy. I think that for the help. So tonight to figure out where apple is headed were enlisting the help of a brilliant technician who put the queen in fibonacci queen. Com. I happen to like her stuff. When she told me that this was last week that apple is ready to roar i was all ears. I wants already rallied 40 odd points, but she thinks this move could be much, much bigger than that. Meaning apple has a lot more room to run before this rally peters out. And you might get a chance to buy apple down because some people are disappointed with cisco. I understand. Why is the fibonacci queen so bullish . Apple has experienced a momentous change thats gone out to raging bear mode. Remember that broadens School Analysis is based on the arcane, obtuse work of leonardo fibonacci. He discovered a style of ratios that occur. 28. 2 , 61. 8 . Please google this, youll see it all. According to the modern day adherence they show up in the Natural World of the stock charts. She looks at the past swings and for the moves that hit the key fibonacci levels that do the same. And what she found in apple was five, not one, but five fibonacci price relationships that cost her between 3. 86 and hence why she nailed the darn thing. The fibonacci held twice with the stock bouncing hard. Look, a very big bounce. I mean, the compressed area because the chart is so big. More important though, broaden finds when you get a clus ore of the fibonacci levels together, it means that the stock can change course in a major way. Its already rallied more than a hundred points and broaden thinks this could be the beginning. Everyone is thinking i have to take my profits and ring the register. Its not just about price. Remember, theres the price that on the y axis. And then on the x axis theres time. And broadens methodology works in predicting not only at what price a stock will change price, but very helpful when it will happen. Check out this daily chart of apple. Just as broaden measures the size of past moves and runs into the fibonacci filter she measures the amount of time between past highs and lows and multiplying the results by the same results we talked about earlier to give you an idea of how this works the last big rally in april lasted for 87 days. Okay. 87 trading days. Keep the numbers in mind. I put these two up there. 87 days from may of 2012 to september of the same year. Okay . When you multiply 87 by 1. 618 remember, a key fibonacci ratio, you get 182 days. Thats a time cycle and apple would decline in 142 days. Thats where it stopped. I mean, cant make this stuff up. Its too right too often. Well, broaden made a whole bunch of these and she found the seven different time cycles and suggests testimony come to the end between april 28th and april 3rd is 41 days after the move down started. One day short of the target we talked about. However, all this happened months ago. But thats all rearview mirror. Whats the relevance to apple now . Simple. It tells it its likely that the stock will see a major trend reversal. According to the fibonacci queen that the low that apple made back in april is a and its a lot bigger than