Takeover over apples run can send stocks higher. Everything else is for sale with the dow falling 200 points. S p plunging 2. 4 . Nasdaq down 1. 5 . No new money coming in. Just slashing all over the place. On a day like today, nothing to slosh into. Least today there is mar reeves market. T reeves market. H reeves markea reeves market. Lets start with the drug stocks. Today they simply took your breath away. How can they fall from 101 down to 73 despite making on its hepatitis c . . Despite having so many irons in the fire, how can regeneron, the stock is down now to 38 of. Nothing happened than sales were more fabulous than we thought. I almost hesitate it answer this question because it touched on the third rail. There is a growing believe that republicans can lose the house and senate because of issues at the top of the ticket. If thats the case and we do get a democratic wave, then the democratic bite could be as bad as her bark when it comes to controlling drug price. The market is screaming that it wont pay as much for drug stocks as it would before when it seemed like the Upcoming Elections would leave us with the divide in government because the uncertainty and consequences could be too great. Given that republicans will still be able to filibuster the senate even if they lose majority, this does seem like an extreme reaction to me. But i understand the senate. We could go from a situation where a president has a bully pulpit to where where she has the power to bully a whole industry. Regardless of realities, you cant feel comfortable buying the drug stocks on the way down until after the election. Now this happens to be a new reality post the infamous videotape that i hate to describe. It is a price to earnings for everything forward. And all that i heard about, many institutions are chatting about it. It doesnt help that i lumina, which makes medical instruments, supported a massive shortfall last night. Stock dropping, causing tremendous angst. Did you see those . Folding battery situation and the soon to be part by st. Jude is even worse. That device group is hideous. I always say that you can judge the industrials by what alcoa has to say. And because it reports first. Well if you judge by alcoa, wow, then this earning season, youre seeing a pretty serious slow down in most every single Industrial Market save orders with heavy trucks and aerospace really getting hammered. This morning i spoke with c ceo claus, spin off making Aerospace Parts and he was calling them teething issues. He said three times it was teething issues given the slow down in orders though people have to wonder whether it is really teething or whether you have your teeth knocked out. By the industrials. The reverberationes from alcoa down guidance fell across the board. A lot of bad action. Aerospace related companies, honeywell, eaton, united, all selling. So many times like today we fall to somewhere else. Fall of dubai. They do a ton of business overcents a dollar is too strong as of late that could hurt their earnings. Doesnt do much difference when Interest Rates are going higher as they have been. 3 yield is a safe haven. What about the banks . Huge group. They start reporting this week. And we didnt get a rate hike this quarter. Even as fed heads, yammering about an imminent one, that means banks can be as bullish about their quarters. Stocks look cheap but thats not enough for the gigantic root. Same thing with utilities. You dont want it own them when Interest Rates are going higher. Too much competition from risk free instruments really hurts that cause. The oils, they need the price of oil of crude to go up everyday in order to rally. Tomorrow we might see a big inventory draw down and in interim you cant buy stocks in oil loses momentum. Retail is tough. So are restaurants. Consumers spending as much as three months ago. And no one found out why. It is really a quandary which brings us to tech. I do like tech. I like it a lot pf facebook amazon netflix google. Lets stop it with the alpha bet already. But in a selloff they generally dont work the first day. You have to wait for things to calm down before you pick at them. If only because they run so much. Can you buy small but not large tomorrow. These moves are very j exaggerated. I continue to like the stock of pretty much any company that tries to dominate the social mobile cloud internet of things, artificial intelligence, augmented reality or Virtual Reality spaces. Opening our eyes to still more of the future in some important things last week that it revealed at dream force. Twitter stock over 7 point from where it was last week. But much more has it happen before gop can occur. Well we low 29 which has a descent ring compared to twitter at 24. Not so much at 18. And having to find a deeppocket partner. None of that may be possible. One area we know you cant gravitate to is cybersecurity stocks. A very good company, we spoke to prove point and palo alto last week and they sounded stroke those stocks will be crushed right along with fort net. With every tough day comes a silver lining. While there is nowhere to republican or hirun or hide, tech gives you the most for the bounce back buck. Important to not be too big of a slave because with the s p selling off badly with threeweek low you think who the heck needs this. The answer, someone who want to make money a little longer term. Thats who. Gary in michigan. Gary . Caller dr. Jim. I saw your show on technicals a few weeks ago. Thank you for that and all of the other nice things youve done all the way back to cuddle and cramer man. Ive got your back. Thank you so much. Ive got your back and youve got mine. Whats up . Caller is this heavy shoulder bad the last six months or what . Along with the crude and oils and expecting prices hopefully much lower. Given that scenario who is a long term point and im thinking 40 bucks. What do you think jimmy, help me out. First of all, thank you for the kind words. Im an royal dutch fan. I do prefer in the large and majors. I prefer chevron. This yields 7 though. I dont want to get in the way of that. Absolutely committed to that dividend. With oil proclaiming at 50, i think they could be good for it. I dont want to touch it either way. Im a fundamentalist and im not crazy about that stock. Dave in illinois. Dave . Caller jim, retail space is unquestionably challenging as egiant amazon continues to gain market share. Walmart add bad week on disappointing forecast citing more work is needed on their rebuilding. Recently walmart acquired online retailer jet. Com, added to their investment in alibaba competitor and is competing with indias largest retailer, flip cart. I see important buildings ploks for future success. How do you see it . I see it just the way do you, dave. Im not afraid of owning walmart. Once it breaches 3 yield level, and i wasnt at all deterred about their quarter, spending for the future, thats what you need to do. By the way, if you want to know the truth, if amazon comes down for two more days people will want it pounce on that one. Nowhere to run, nowhere to hide. The market theme of the day. After big decline, keep your eyes out for even bigger opportunity. On mad money tonight, disney, starbucks, general election may not seem to have that much in common. But charts are saying something else. I will tell what you impact the stocks are having on the oversul market when i tackle the technicals. Good news samsung is ending its relationship with the 7, lighting on fire. And a generational struggle going down and founder of the ride sharing startup reaping the rewards. Dont miss my exclusive with the founder of lift. So stick with cramer. Dont miss a second of mad money. Follow jimcramer on twitter. Have a question . Tweet cramer. Madtweets. Send jim and email to cnbc. Com. Or give us a call. 800743cnbc. Miss something . Head to madmoney. Cnbc. Com. The conference call. The ultimate arena for business. Hour after hour of diving deep, touching base, and putting ducks in rows. The only problem with Conference Calls eventually they have to end. Unless you have the comcast business voiceedge mobile app. It lets you switch seamlessly from your desk phone to your mobile with no interruptions. Ive never felt so alive. Get the future of phone and the phones are free. Comcast business. Built for business. Comcast business. But they demand the best shopping experiences. They may want the latest products and services, theyre your customers. And by blending physical with digital, cognizant is helping 8 of the 10 largest u. S. Retailers meet their demands with more responsive retail models. Ones that transcend channels and locations, anticipate expectations. Creating new ways to engage at every imaginable touchpoint. Its a new day in retail, and together, were building the store of the future. Digital works for retail. Lets talk about how digital works for your business. Rough day for the averageetses. I always think it is good to get a deeper sense of what could be ailing this market. And not just alcoa. The price of oil just went down. But deeper issues that could be lurking under the surface. Thats why tonight were going off the charts of robert marino. He happens to be my colleague at real money. Com as well as publisher. He is furious about why the bulls might be losing traction. One of the worst days for the s p. We have it look at this stuff. Marino points out over the course of 2016 a bunch of high profile leaders seem to have fallen out of favor across a wide variety of sectors. Every one we will cover. Thats not a good thing for the market. Even though this is a good year for stocks, marino point out that once beloved stocks like general electric, under armour, disney, starbucks, are all underperformers and all four names are learning what it feels like to be a lose per. What makes this worse is that marino fears that continued weakness in household name stocks could weigh on the entire market. Why dont we start with one that everybody knows. Lets start with disney. This is a weekly clart. This one years was one of the most consistent around. Stocks steadily go up in practically a straight line. From october 2011 to october 2015 Disney Stock Price more than tripled and only outperforming s p 500 for 52 during period. Since it peaked rough lay year ago, disney lagged the s p by roughly 31 . Thats what marino means when he talks about leader becoming laggers. In disneys case wbt stock was taken out just back of shy. After people worried about a slow down in the growth of espn. You can see what went wrong. After going steadily higher for ages, increased volatility last year, with stock oscillating around the 200day moving average, thats the blue line, which marino says is a sign of conflict between buyers and sellers. But sellers want out and at the beginning of 2016, well, the stock broke down from its uptrend line. Underneath its 40week moving average, every time the stock needs to get lift, it runs right into the ceiling of resistance, here we go. And that was a ceiling just as the key wont move the average and comes right back down. And you think it is stablizing. Look at this, marino points out that superior stock trades in a tight range are often falling by weeks and when it comes to disney, technical indicators think that any big move will be lower. Why is that . First, he is looking at relevance strength index up top. That is pretty tepid. Trading below center line which is what matters. And cmf, thats an oscillator, measuring buying and selling in a stock. Firmly negative for a long time for disney. This is very, very bad here, okay . That suggested big institutional Money Managers continue to bail over this one. Right now marino point out there is a floor of support at 90 bucks. Theres the floor. Down around two bucks from what it is currently trading. If the stock breaks below the floor he expects to get it for another wave of selling pressure. I think the terrific longterm this chart is clearly not friendly to the course. A bad chart. Let me give you another example of the leader turning lagger stock that i really like. The weekly chart of starbucks. This is another high Quality Company with amazing management. Never put up less than sub Optimal Performance from 2015. Stock peaking end of last year. Shifting below 40week moving average. Making lower highs against a flat support. Thats disneys pattern. Greener notes the stock has begun to trade in a tighter range. Now sitting just below longterm support at 53 bucks. Just like with disney. The index is below the center line. Bad sign. And trending lower and the money oscillator is negative since june. Again a bad sign. Starbucks making a triangle chopping pattern. You can see the triangle created by the slope and the flat floor of support. Height of the triangle tells you how far the stock can fall if it breaks support. If starbucks falls below 53 on a weekly basis, marino wouldnt be shocked to see it sinking past low 40s. I like the longterm story here. You can follow along. But i admit this chart is not a pretty picture. Im cognizant like everybody else. This stock acts poorly. This segment is about stocks who act poorly. How about under armour . Take a look at this weekly chart. Under armour spent years as total market darling and turbo charge seeming unstoppable. A little over a year ago it peaked. Here goe again, right . The last 12 months, stock underperformed s p by astounding 48 . For the last year marino points out that they are in a large wedge formation. However lately stocks trading range has gotten tighter and tighter. And we now appear to be approaching the end of the wedge pattern which typically means we are dealing with a stock on the verge after break down or break out. Marino believes that the break down is a more likely scenario. Why . First of all, the moving average convergence to vergens or indicator a tool that helps chart detect changes and reject before they happen has been trending lower and is stuck in negative territory. Second, that pesky money flow entering negative territory, too. Under armours floor support is at 37 bucks, okay . A little more than a dollar below where the stock currently trades. Marino says if this floor fails to hold we could be looking a what he described as a monster decline here. Based on the sign of the wedge pattern under armour has been stuck in all year they could plummet to 20. Although admitting this might be too adwraggressive. It issiesy to imagine the bulls on the mass. Talk about a house of pain. Remember a this is a collection of charts that are bad. Doesnt mean the companies are bad but the charts are bad. Weve got one more leader that marino says completely lost its mojo. Now we are talking about general electric. Ge is general pretty well correlate thaend pattern hasnt held up. As stock said before the s p 500 for 11 . By the first half of the year ge is in good shape with a series of higher highs. Doing well. Higher highs. This is a great period, right . And this is exactly what you want to see from the chart, frankly. Last month, stock broke down and the 40week moving average which is crucial. Now fears of ge in danger of killing this whole rally that started right here. And the indicator has been trending lower. The money flow oscillator, negative territory in august. Its only gotten uglier since. Meaning big boys are doing sell pg. If ge closes the week below 29 then the stock would quickly retreat to 25. We own this one from travel trust too. We would love to buy more at levels that he doesnt like. But you need to be aware that marino is just simply not a fan of this stock. Ge has a lot of aerospace which is todays big freakout. So i understand the weakness. I understand the 25 is huge but unlikely bargain. I do not think that ge breaks down here. Here is the bottom line. While marino doesnt like what he is seeing in charts of disney, starbucks, under armour or ge, all market darlings be we is trying to make a broader point. When you see the market turning against former leaders, that spreads doom and gloom and pessimism. I dont know if his dire prediction will play out but it is something you at home need to keep an eye on. Billy joel said once we didnt start the fire. But same cant be said for samsung. Now any production of galaxy note 7, ill tell you about. And getting from here to there, im talking to the founder of lyft, lyft. See how it changes your commute and how it changes the concept of the city and how the guest feels special and unique. May be the happiest place on earth but not without help. Im talking to a ceo of the Company Helping the house of mouse understand visitors. Stick with cramer. In the age of the exploding smart phone, this has taken on a whole new level of paranoia. We eyed each other suspiciously as we waited for the plane to board. Is that a Samsung Phone the man across me fr me is cradling . Is that the woman to the right plugging her phone hiding the galaxy label or is is it happenstance her sweater is block the name plate. Then i look to the left. What is that man hiding . Should he hiding it because it should be off or at least on Airplane Mode or is he hiding it because it is a dreaded samsung . It might be. Is it a safe older models or combustible galaxy 7. There are about 1. 8 billion cell phones and samsung has double apple. Even gaining on apple this year. Only galaxy note 7 actually explodes. That means there are more than 2 million explosive smart phones out there. Were nuts if we think some warning by a Flight Attendant would keep the accidental wouldbe bombers from firing up their phones. Anything can happen in a closed cabin. They take my water bottle away, examine my cuff links, make me take my belt off. But say i can take my phone. Come on. This is the most devastating recall ive ever seen. It is being handled so poorly. All part of our own dont trade a thesis on apple which you know if youve watched the show is just one of the more paramount theorys we have. Thats why i wasnt at all surprised, surprised at all, when samsung announced it was officially end prague ducks. Batteries are too close together. It was never the batteries themselves. It cant be fixed which is why it has to be scrapped. The carriers, they make much more money off of a samsung than apple. Deep pocketed targets. Even if you think thats ridiculous. Ive been sued for things a lot more frivolous than that. Samsung hasnt been at all forthcoming in their large et market, china. A totalitarian state might not like apple for being as powerful as it is but at least apple has descended about something so important as whether the issue is a replaceable battery or irreplaceable wiring problem. Put yourself in the hand of the 2 Million People who bought galaxy note 7. Though the real number is probably much higher by now since they kept saying it was fine until today. They can revert it a sler model while they wait for somethi