20,000 is in our grasp and the nasdaq, which has been red hot lately, has been led by the biotechs . While the market ultimately finished higher, dow giening 99 points, s p claiming 0. 28 , the averages, the averages got clobbered midday after the president elect held a press conference where he called for more price Competition Among the Drug Companies. Thats the exact group that had been powering the markets most recent leg up. It was a stark reminder that even though trumps probusiness, that doesnt mean hes pro every business. In some cases, he can be a oneman wrecking crew for entire sectors. Later, the market did regain its footing with techs leading the way. But after today, we have to remember that this rally is based more on his big picture agenda, the tripod of lower corporate taxes, repatriation of foreign assets and deregulation. In the interim, though, there are these knot knotty issues that trump doesnt take any prisoners when hes made up his mind just as hes been able to brow beat a bunch of executives into keeping their Manufacturing Base in the u. S. , trump doesnt like the endless price increases weve seen from pharma. Price increases that really havent gone away. We know the issue is still with us because brent saunders, the ceo of allergan, started a campaign to limit these price hikes. Nobody else joined him consequently investors got complacent. They figured theres nothing to worry about since its been about a month since trump singled out Drug Companies. When so many Great Stories with told about the biotechs, people figured it was a golden opportunity to do some buying of the lag ardss in this industry that actually represent value. Yep, biotechs as value stocks. What a concept. Then today trump confounded these investors and they remembered why they stayed away from the biotechs to begin with, and they headed for the hills. Sell, sell, sell. Now, the question is will this be a terrific buying opportunity for that entire group, like how you had to buy United Technologies after trump convinced the ceo to keep 1,000 jobs 2,000 carrier jobs from going to mexico . Will it be like boeing with a stock that roared since ceo Dennis Muhlenberg saw the light and said he can make some concessions on the cost of the new air force one . Will it be like Lockheed Martin which quickly responded today that its going to get the price of those darned f35s down or like the autos, which got a reprieve when fords ceo mark fields committed to making more u. S. Manufacturing even as g. M. s ceo defied the trump theory, but only because the disputed factory just doesnt make a lot of cars that get sold in the u. S. I didnt get the sense, though, that baris is about to send any more jobs south of the border, did you . My sense . This biotech selloff will not be like that. In fact, i think trump recognizes that the Drug Companies are more hated than even the banks and that theyve abused the system with their constant price increases. I bet heal and Human Services is going to do something about this whipping boy, and that will involve substantial roll backs of some drugs before this episode is over. So what do you do about this . First lets speak a little more broadly about the trump rally. Allow me to make a real observation about it. Trumps not in on it. Ive known donald trump for years, and hes not really a stock guy. Hes never really been that interested in the stock market. Years ago during the apprentice days, i was a judge, he periodly asked dpor some names. I always said buy some verizon. Funny thing about verizon, never comes back to bite you. It was clear at least back then that individual stocks werent his thing. His first love was always real estate. Second, just because trumps probusiness, that doesnt necessarily mean hes prostock market. He figures that if business does well, then everyone does better, kind of a grow the pie, rising tide concept. But hes perfectly okay with some industries doing worse if he believes they deserve to be punished. Thats why i think we all better start getting it through our heads that the trump rally is more about animal spirits than about some kind of sector rotation. Trumps not trying to bless merck for coming up with a better antilung cancer drug as it has. And he doesnt particularly care about trying to figure out the costs and benefits of orphan drug status. So if you own health care stocks, understand that our incoming president s got a real blunder bust approach. Just look at how the one Pharma Company that wants to hold the line on price increases, allergan, got whacked as hard as every other stock in the cohort today after the president elect spoke. Second, the retailers simply arent going to be able to rebound here given that trumps not dissing the notion of a border tax, meaning a tax that makes it more expensive to import goods rather than making them here. The story is changing here for these companies. Textiles and apparent used to be a big business. Nafta pretty much wiped it out. Go check the numbers. Im not making this stuff up. Its bad enough you have amazon going against these retailers. I saw a lot of people trying to get that new credit card from amazon today. You want a border tax that makes their profits even smaller . Ill use a technical term from wall street. Yaund weight these stocks. At the same time, dont hesitate to buy the stocks of companies that benefit from the easiest leg of the trump tripod to get through, deregulation. I think theres a huge misconception about what the president and cant do in this country. If the president wants to cut taxes, he needs the help of congress. If he wants a tax holiday on the repatriation of foreign capital, he needs congress. If he wants 500 billion in infrastructure spending, congress. While i expect congress will ultimately cooperate with trump when it comes to changing the tax code, the fact is we cant take it as a give. This process will most certainly take a lot longer than the market wants. However, the president has a lot of latitude when it comes to enforcing regulations. All he needs to do is appoint like minded people who want to deregulation to run the various agencies. I dont see any people in that cabinet that want strict enforcement of the rules that make banks less likely to lend. In terms of deregulation, i think thats what matters. Same goes for oil and gas. Fru trump pick the a guy who is suing the dont look for the government to be a big stumbling block to fossil fuels or pipelines. Thats why those coal laden Railroad Stocks and the banks keep holding in even on down days. So my suggestion is that if youre picking individual stocks beyond just owning s p 500 index funds that i always stress you should have for retirement, you want to avoid mallbased retailers or drug stocks. Instead search for an oil, especially if rex tillerson, the former ceo of exxon, gets confirmed as secretary of state because hes uniquely suited to opening hither to closed markets for u. S. Producers. Honestly, this is going to be the most propetroleum administration imaginable. Now, maybe there will come a day when trump says, hey, we got a great drug industry, so lets embrace it. But thats unlikely to happen until they heel. He might get the Department Stores he might give them a reprieve but not until we see more americanmade clothes. However, the bottom line is that oil and gas and the banks remain in the sweet spot. Theyre just like United Technologies and boeing, which rallied after they made peace with trump. If these groups get hammered on the upcoming earnings, im calling it right now, right here a buying opportunity. Plus the added benefit, with energy and the banks, you dont need to be glued to twitter every minute, so you may actually be able to get something done. How about mike in connecticut, please, mike . Caller yes, jim. I hope you dont get tired of hearing this, but thank you, thank you, thank you for all your teachings and guidance. Yeah, i never get tired of hearing it, and i appreciate it greatly. Thank you. Caller great. My question is about dunkin bran brands. With all ive been reading lately and how theyve been expanding, also in europe, asia, and australia, and also jab has been interested in them. Are they a buy or wait and see . And the fact that theyre 99 franchise, is that effective . I got to tell you, the companys numbers have not been that strong, but nobody seems to care. It kind of just sits there. I dont really have a view either way because i care about the samestore sales. Theyre not accelerating, but a lot of people think its a great franchise business. I think its a push, which means dont buy, dont buy. How about linda in my old home state of pennsylvania . Caller hi. Enthusiastic new listener and first time caller. Thank you so much for calling. How can i help . Caller well, first of all, you gave me a chance to say booyah. Booyah. Caller thanks. Im new to stocks, and im developing my portfolio. Ive been seriously looking at stm and wanted to get your thoughts. You know, i like stmi micro, i think its a stealth stock. They got some good numbers about p. C. Growth after the close. Very strong mike roves in that cohort. We are buying it at the 52week high. But you know what . I think business is strong. And there are some companies besides nvidia that are doing well. Thank you for the kind comments. The trump rally is more animal spirits than it is sector rotation. Hes made up his mind about pharma, though. That gives you an opportunity to go elsewhere besides your index fund, which you know is your first investment. On mad money tonight, its a Company Whose products are used in everything from carpets to automobiles to fishnets. With the economy showing signs of strength, im Digging Deeper into something youve asked me about over and over again. Honeywells recent spinoff of advansix to see if its Worth Holding on. In 2017, more than 11 Million People gained health care purchased through the Affordable Care act, but with repeal and replace on deck, im eyeing a play that could pay to matter what helps. And pegasystems helps businesses run meaner and leaner. Can it whip your portfolio into shape . Im sitting down with the ceo. So stick with cramer. Announcer 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. Take one. Directv now. Stream all your entertainment anywhere anytime can we lose the all. Theres no cbs and we dont have a ton of sports. Anywhere, any. Lets lose the anywhere, anytime too. You cant download onthego, theres no dvr, yada yada yada. Stream some stuff somewhere sometimes you totally nailed that buddy. Simple. Dont let directv now limit your entertainment. Only xfinity gives you more to stream to any screen. For a long time, ive been a big advocate of breakups in order to unlock value for the share holders. I devoted an entire chapter about breakups. The best breakups also create attractive new spinoffs that are worth more as Standalone Companies than as part of a larger whole. So whenever a spinoff happens, i always say, come on, lets dig in, take a look. As you might have noticed in recent months, weve seen several large spinoffs. Many of them have caught the attention of you, our viewers. What do we make of all these newly independent companies . On monday i talked about addian. Thats at uv seating business spun out by Johnson Controls. I like both stocks. We had Johnson Controls on too. Told a pretty compelling story. Tonight i want to get into another spinoff you keep asking about and ive been kind of remiss. Its called advansix. Thats the manufacturer of nylon six resin, chemical intermediates and ammonium sulfate fertilizer that split off from honeywell roughly three months ago. So why did honeywell break up with advansix . Where is the stock headed Going Forward . Lets look under the hood and find out. First you need to consider the context. Remember that in february of last year, honeywell tried and failed to acquire United Technologies for 108 share. So honeywell came up with a new plan. Last april we learned they were considering a sale of their nylon business, and on october 3rd, advansix officially started tradi trading. Now that this business is standing on its own, what exactly is advansix . For starters, theyre a leading producer of nylon 6, one of the most commonly used nylons. Toothbrush bristles, surgical sutures, guitar strings, aerospace components. Of course, its in a lot of clothing. Advansix gets 45 of its revenue from nylon, another 25 comes from making ammonium sulfate, which is a type of fertilizer. And the remaining 30 comes from selling what are known as intermediates, meaning chemicals that are used as Building Blocks to make other chemicals. And while advansix gets 27 of its sales from out side of the u. S. , all of its production takes place in america, meaning theyre not going to come under fire from Donald Trumps twitter account. Trump stock, trump stock. In short, advansix is a classic chemical play. Theres a reason honeywell wanted to get rid of this. It has Slower Growth and lower growth margins than the rest of the company. Normally this is the kind of business i wouldnt get too excited about. But in an expaending commodity, the earnings for these names tend to rocket higher because theres so much more demand for their product. If you believe both the u. S. Economy and the Global Economy are accelerating as i do, thanks to all the excitement over president elect trumps probusiness ajen did, the stock might be worth owning. As far as commodity chemical plays go, advansix is a pretty good one. Their Business Model is vertically integrated. On top of that, even though this is a small company, they have tremendous scale within the markets where they operate giving advansix a significant cost advantage over most of its competitors. This is one business where its actually cheaper to manufacture things in the u. S. Because to make nylon, you need natural gas. And weve got the cheapest nat gas in the whole world. What else . Advansix has strong longstanding relationships with its main customers across all the companiess product lines. Their Global Sales Team helps them reach clients all over the world. The expect is diversified among many different markets. And thanks to the spinoff, advansix will be able to spend more of its research and Development Budget on developing new products and promoting longterm growth, although they had already started do thissing under honeywell over the past couple years. This intermediates business i mentioned, this business is the lowest cost producer of something called cap row lack tup, one of the Building Blocks for making nylon. For years the market has been glutted but were finally seeing some signs demand is picking up. Thats good for the gross margins. As for the fertilizer business, it looks like agriculture is finally really starting to make a comeback after spending years down in the dumps. Remember how we mentioned that agco looks good and so does deere. And the may nigh ln 6 business is highly cyclical. Advansix has a cleaner Balance Sheet, and management has talked m about making some bolton acquisitions s something that never would have happened over the spinoff. Or even returning excess cash to shareholders via buybacks or dividends. Investors werent all that excited about this stock in the weeks immediately after the spinoff on october 3rd. Advansix started trading regularly way at 16. 50. Since trumps surprise victory, the stock has been on a roll, climbing to 21. 57. Thats up more than 30 from the level where it started trading. Some of that is because of the standard trump rally reasons, investors expecting a strong economy. However, part of it is because advansix reported in early november, and while the numbers werent great in absolute terms, they represented a huge relative improvement from how this business had been doing the year before. For example, advansix posted a 4 decline in revenue. Okay, not great, right, on the surface. Wait a second. Thats a huge improvement from the 23 dropoff that we saw last year. Volume was actually up. The company also caught some major endorsements in november. Blackrock, the gigantic asset manager, reported a 12. 1 stake in advansix the day after the election. A week later, firefly valued partners disclosed that they had taken a 6. 7 stake in the company, which caused the stock to rally 20 over the following three sessions. In middecember, the stock reached the low 20s, but since then its been stalled. So what do we do with a name like advansix . No analysts have any earnings estimates out for this company yet, so were kind of flying a little blind here. But looking at the trailing numbers from last year, advansix trades at about 8. 4 times earnings, putting it at a substantial discount to albemarle, or chem or us, which has been hot. However, while its cheap, management warned that they have some product disruptions in the fourth quarter, which means the next earnings report, it may not be that hot. I dont know if the markets prepped for that. Heres the bottom line. I could see how a fresh spinoff like advansix might seem enticing, but at this point i think its too speculative to recommend. However, i do likes advansixs markets and the economic environment we find ourselves in makes me feel pretty darn good about the stock. I just want it to come down a bit so its less risky and more rewarding. Much more mad money ahead. Theres not much known about the replacement for obama care except president elect trump thinks wryoure going to be pro of it. A company that works with american express, cisco, cocacola to maim a few, and it could help you make money. Im looking at pegasystems with its ceo. And do traders trade in that pajamas for suit jackets . Im telling you what their absence from this market means for your portfoli