Transcripts For CNBC Mad Money 20131015 : vimarsana.com

CNBC Mad Money October 15, 2013

Yep, today it became clear that all the nice things weve been hearing act the deal on thursday had nothing to do with the rally becausesant tiding was all in the senate. Theyre just scared. Not the senate. The senate is scared, the house isnt. The house of representatives as we keep discovering is a horse of a different color. From the very beginning you never expected the senate to reject a debt ceiling increase and not just because its controlled by a democrats. There are enough republican senators around for a while and talk to the Business Community to know a disaster looms if we dont do something. There arent enough in the house for certain. First of all, i am unwavering in my belief that if we default it will financially catastrophic. Just placed u. S. Debt on a negative ratings watch this ebbing in the sign of real trouble if the debt ceiling isnt raised. No kidding. They should be doing that. I thought that dave temper said it best on squawk when he noticed the hazards of a default, maybe hes patriotic, does it matter when we have the. 45 caliber in our nations financial mouth and were ready to pull the trigger. When you start messing around with the debt of the United States of america, which by the ways has not missed debt payments, way over leveraged by the time of the revolutionary war when hamilton made the decision to make those debt payments. You didnt miss a debt payment in the civil war. This is time youre going to choose to miss a debt payment . Why would some Republican Congress people still be drafting onside issues and not the cutting back obama care knowing if they dont drop them then we will have to default. Like him or not, thats what its going to happen. I think its because a considerable amount of members dont believe the world wont stop. I think they are simply unaware about who pays the price. As temper pointed out, a default will fought out mortgage rights. They believe higher Mortgage Rates are a small price to pay, trash the president , wreck the full faith and credit of the United States. I cant believe the stock selloff didnt happen earlier. I dont know why no one thought we would go to the wire on this stuff given some republican insurgents want to default the beast. Two group groups. The ones who think the president s men are fibbing and the deadline will come and go with no consequence and ones who think it will go bad for the debt holders but, so what, theyre from wall street. Even better, theyre foreign. These nrntinsurgents claim beca they had no place to put the money anyway. So what . I think the team who doesnt want to raise the debt limit has the upper hand. You probably obstruct until the cows come home. Congratulations. Given my view that the upper hand belongs to the insurgents, why is the nasdaq down a little. I think that the last 24 hours since the house representatives balked this camp is way too glitch. A default could very well be in the cards. The odds of growing since last week, 20 chance of default, too many insurgents welcome me to think this denial camp is right. Second, there are plenty of nonsellers who simply think they cant get out and get back in fast enough. I agree with this group. If you had sold before there and tried to get back in you pay much higher prices than you thought you would get. This camp is betting we would go over the deadline but money is found because tax rates might be larger than the treasury expected. You have to pay your quarter right now. Third, some of the nonsellers remember how grim the battles were in 2011 and 20 12 and those each led to fabulous rallies. Who can blame these people . They have always precipitated gigantic runs. Nonsellers who read the press and believe everything is under control. This morning i was astonished to find that anyone actually believes the senate matters. Saying a deal is close. What does the senate know about the insurgents . They might actually welcome default betting they will make obama look bad. Hey, thats politics. Finally, nonsellers, strength stocks exhibit and get tons of comfor comfort. Stocks rally 4. 74 on an ugly day. Microsoft hangs in. Wells fargo reported a quarterly they didnt like. The mineral stocks keep rallying. How bad can things be . Gold doesnt really go up. Where do i come out . I am astounded at the recklessness of any leader who thinks a default doesnt matter. Astounded. Who the heck would want to change that . What kind of capitalist would truly risk that status . Those who are willing to we default over any issue would have been in another age called no noings or an arcists. They are defiling the legacy of hamilton and lincoln who cared about our nations full faith and credit. Our great nation and why on earth dont they find another way to get their point across. Isnt there another way to moderate behavior rather than trashing good old american capitalism . I dont want higher taxes. I want to cut taxes. I want to reduce spending big time. What does that have to do with wrecking kapcapitalism . Just as i cant stand it when the left tries to socialize capitalism out of existence, i dont like it when the government is spending too much money. Why not let it collapse under its own weight. See you later. You favor lower stock prices short and long term, and repudiation of the governments guarantee, you want to default. As someone who is trying to help you make money i cant for the life of me believe were on the verge of defaulting our own debts even if they had never been rung up in the first place, and i do. Bottom line. Dont believe we will not go over the deadline. Do not believe its business as usual. If we do default, all bets are off. Hamilton and lincoln regardless of how they were incurred, they werent fools. They were worried about americas standing in the world. I think the history stands with them in the righteousness of their position. Michael in florida, please, michael. Caller jim, a big booyah to you. How are you . Good. How about you . Caller doing great. My question is regarding jc penneys. Down 60 year to date. They appear to be stagnant in their approach. Macys just came out that theyre going to be open for thanksgiving for the first time which is new and unique. My question is what can jcpenney do to change their perception and get their stock price moving in the right direction . I dont think it matters. I think the economy is slowing because of what happens in washington. Jcpenney needs washington to recon seen and pass the debt ceiling limit to go up and needs washington to get off our back ands and jcpenney will survive. Everyone feels so awful approximate. Michael in pennsylvania. Caller booyah, jim cramer. I was calling about dollar tree. Heck of a run. Dollar tree is perfect. Given what washington is doing you want to be in dollar tree because it makes us feel poor. When youre real poor or you feel poor which is kind of the same thing at certain points even though we know its not reality you go to dollar tree. You want to wreck the economy, you want to say that lincoln and hm milton were idiots, just to prove a point . Well, thats not going to be that good. Hope for the best, prepare for the worst. The worst finally sank in today and its going to be with us if we go over the debt deadline. It just will be. Guys, theres no return. Mad money will be right back. Coming up, supermarket showdown. Whole foods versus sprouts. Two organic grocers both with Phenomenal Growth prospects but which stock should you put in your cart . Its a natural faceoff and cramers finding the winner, next. And later, upper crust . The Government Shutdown hasnt anible to cool off shares of dominos pizza. The companies has served up a 50 rise so far this year. But todays Earnings Reports has taken a slice out of the stock. It is now your opportunity to take a bite. Dont miss cramers exclusive. Plus, digital delivery. Its been a long time since tivo changed the way you watch tv. But as newcomers like netflix continue to take share, can tivo rub you into the future of entertainment . Cramer sits down with with the ceo to find out. All coming up on mad money. Dont miss a second of mad money, follow jim cramer on twitter. Have a question, tweet cramer, madtweets. Give us a call at 1800743cnbc. Miss something . Head to madmoney. Cnbc. Com. The ocean gets warmer. The peruvian anchovy harvest suffers. It raises the price of fishmeal, cattle feed and beef. Bny mellon turns insights like these into powerful investment strategies. For a university endowment. It funds a marine biologist. Who studies the peruvian anchovy. Invested in the world. Bny mellon. 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. Whats been working in spite of the ridiculousness in washington . What keeps flirting with the 52week highs regardless of what it happens to be . I can think of one household name, a stock you know thats worth owning here because it just refuses to quit. Im talking about whole foods. Wfm for you home gamers. Heres a stock thats been making new highs since september when everyone realized that washington was going to make a mess of the economy. Right now with less than two full days to go until we hit the debt ceiling deadline whole foods is only small change away from its 52week high. Actually, alltime high. Now tonight we go off the charts not just looking at the stuff. Better than mccains, dont you think . You shouldnt judge a bag of fries by its cover. We have tim colin, the brilliant technician i talk about in my column realmoney. Com. They can sell you incredibly expensive food because if whole foods is selling it it must meade meet their super high standards and in a country where more and more people want to eat organic or natural, whole foods is the place to shop. When the Company Reported last, some thought the numbers were light but i said buy the heck out of it. Were also in a difficult environment here because of this dragging washington which has really got me down. I dont know about you. I like to i didnt want to come to work today because of this. Whole foods is a high multiple stock that i worry about in this environment. It can be vulnerable. Even though they tend to snap back like rubberbands, how is it that whole foods seem soaring from new alltime high to new alltime high . Let me point one thing out. Everything is scared of buying stocks that are out or near their new highs right now. I hear that chatter all the time. Nobody likes to feel as though theyre chasing a stock thats getting away from them. But the fact is new highs are a sign of strength, people, not weakness president. In the strongest stocks well keep roaring from levels when things are god. You dont get on the new high list because youre popular. You do it because you have superior numbers on top and bottom line. Remember, we also dont care where stocks been, we care about where its going to. Take a look with that prelude whole foods. According to collins is this is a rerive fik picture. The first most obvious was the flag pattern that whole foods just broke out of. Its called a flag. Stocks rallying very rapidly. Makes the flagpole and trades sigh ways in a fairly tight range making the flag. Columnists like collins like this. Once it starts ral leg again which whole foods did at the end of next week. After one of these flag patterns you tend to move higher, equal in size to the run up right before the flag, the flagpole. In the case of whole foods, 6. 50 move the a take the stock to 56. 50 in a short period of time. Five bucks above where it is right now. Flagpole, flag, breakout. Breakout equal to that. Okay . And thats not the only thing collins likes about this chart. Next check out the moving average convergence to convergence end indicator. The mcd. This is a tool technicians use. Before they happen. With whole foods it just made a bullish crossover where the black line goes above the red line. I know its tight. But thats an extremely positive thing with the charts live quent of a neon sign that says buy me, buy me, buy me. Weve seen this in the past year and theyve been surprising accurate prediction of realities. Collins wants to draw your attention to this, too. New index. New thing, people. Cci at the bottom of the chart. This is a type of oscillator developed in thes 80s for commodities thats gone on to become popular for all types of securities because it can tell you if something is over bought or over sold or if the trend is going to change. Cci on whole foods is very positive territory. This is the kind of reading we got for the stocks. Collins thinks were right at the beginning of a third. Now, take a gander at this next chart, another daily pictograph of the action. Collins wants you to look at this. Marked by the vertical yellow lines. Volume spike, volume spike, volume spike. We had one early in may, early august, late september. What we see here is, well, super high volume. It is not whole foods friend. The spikes ares close to a period of consolidation. Trading sideways, sideways, sideways. For some time before snapping back into bull mode. The last spike was in late september. We have just been through another consolidation phase but collins has a way to figure out when it should end and the rally should resume. Notice this filled in purple area that we didnt have on the last chart. These are known as bands, great, great analysts from doing these for years and years and they measure a stocks level of volatility at gi given time. When its widely spaced it means the volatility is high. When theyre clamped closer together it means the volatility is low. What does that have to do with rallies at whole foods . Spike in volume. Then the stock starts trading sideways. And after a little while the band starts squeezing. Squeeze together because the volatility decreased. When the bands start to widen again, thats your signal to start buying. Thats exactly whats beginning to happen right now. Okay . Consolidate and shrink and boom. This pattern is where is its working again. Shrink, boom. Like that. Have to use only one finger. Now, how about a lower tribune. Collins says this is just as strong as the daily but its got a hidden catalyst just like in the daily chart, whole foods has a flag pattern here. Got it, right . Just broken out of. Higher prices to come. Typically the flag on the weekly chart tells collins the stock is going to 68. What really catches his attention is the dome form nation that whole foods made between march of 2012 and may of 2013. Collins says this dome is bearish. Steven king like when you think about it or at least if youre under it. And it should have caused the stock to breakdown below any move below 41 but the bulls wouldnt have it. Instead, after the dome, whole foods catapulted off that level and pushed much higher, incredibly rapid fashion. No shortage because its a dome pattern. The dome pattern says its going to go down like this. Theyre waiting to get back in and the stock wont give it to them because it keeps roaring higher. Ideal entry point but he doesnt see that happening unless the whole market gets crushed and thats always a possibility. While were on the subject of organic foods, collins and i want to draw your attention to sprouts farmers market, sfm. Small Grocery Store chain. This is a fresh faced ipo. Collins has noticed that sprouts spent nearly two months trading between 36 and 41, recently stock broke out and trading to the 42 to 48 range. Collins think its worth buying. And then a break about 48. Heres the bottom line. Some stocks even washington cant crush and basically the strength on these charts as by tim collins, whole foods seems to be one of them. You know i agree with that. If this debt ceiling dropped dead on thursday, causes the stock to roll over, youre going to be getting another buying opportunity. Another fabulous place to buy if things go curflooey in the capital. Tim in california. Caller i like kellogg, k. Should i buy it or get out . I see no catalyst to buying kellogg right here. I do think that kellogg has a good dividend. I do think that kellogg is a Great American company, but i dont have a catalyst and if i dont have a catalyst im not going to recommend that stock. Can i go to tony in new york please. Tony . Caller hey, jim. Great big new york forget about it booyah to you. Im liking that but i wish you had more winning teams here. Whats going on . Caller in the midst of d. C. Madness should i hold on to safeway or cash in and head out for the armageddon. Sell half. Why . They ran up big on doing the break up and announced theyre selling a division. Terrific. Theyre saying listen, stay, theres more. Me, im cognizant of how high the market is. Ring the register half tomorrow morning. Lewis in florida. Lewis . Caller mr. Cramer, booyah to you, my friend. Booyah right back at you. Caller thank you. Thank you, sir the thank you. The reason why im calling, rite aid, great stuff, 36 cents for a long time. Bought it for about 93 cents over 5. And kick myself every day for not buying more. What do you think about that, if i should buy more . Do not kick yourself and never kick yourself over a winning trade. I think it does go to 6. It may we visit under 5 in the interim because of all the craziness in washington. Stock is trying to consolidate but rite aid has a new chief. I dont know about yours. By like the stock. There are major market d. C. Talk about even washington has a hard time hurting. Eating healthy, looking good, feeling like youre getting food that isnt bad for you but its healthy, organic. Thats whole foods. The chart agrees with you. Coming up, upper crust . The Government Shutdown hasnt been able to cool off shares of dominos pizza. The company has served up a 50 rise so far this year. But todays Earnings Report has taken a slice out of the stock. Is now your opportunity to take a bite . Dont miss cramers exclusive. Now that we entered the earnings season and possible that Congress Might reach a compromise on the budget and debt ceiling, we can care about things like earnings again . You need to remember one very important thing. When a Company Reports youve got to look at more than just the headline numbers. Case in point. Dominos. Over 10,000 locations in more than 70 countries, terrific track record. This morning they reported headline numbers not so hot. In line revenues and missed street earnings by a penny. Market was bad, remember, though. It fell 3. 95. 5. 7 . Thats heavy. If you took the time to look below the surface you realize the quarter

© 2025 Vimarsana