Stocks that lead us higher for the last few years, no longer in charge. This time buyers are swarming over the banks. Thats right, the banks. Why . Because last week in jackson hole we learned we could be facing not just one rate hike but two this year. Not only did janet yellen tell us that a rate hike could be on the table, but vice chair Steven Fisher said there might be time for more than one rate hike in a shpe now who benefits from rapid rate hikes . Who makes the most money . The banks. They can take your deposits and invest them risk free at the higher rates that the fed controls and the risk share automatically goes up. And thats why bank of america is definitively breaking out at last. Thats why the stock of wells thats a gigantic move. Thats why j. P. Morgan lost lustre. Do not ignore this move in the financials. The fed is telling you its going to happen. And if we get a strong employment number, watch out for the banks. Stronger loan growth, which comes in part because of great earnings per share numbers that are much better versus last years comparison, and that almost always leads to higher stock prices. And when the fed pronounces the economy Strong Enough to handle more than one rate hike that makes investors more bullish about the state of the world. And that mindset causes people to buy the industrial stocks, because they feel confident that they can meet other beat the and Illinois Tool Works start to shine. Thats whats happening today. Meanwhile, Honeywell Technology and 3m, they continue going higher. I say continue, because these particular industrial stocks were never abandoned in the first place during this whole time when we loved the health care so much. They reached for the rails, and the commodity cyclicals. Sure enough, if yook union pacific, theyve been among the best performers. Even though coal is declining. The big money managers, they follow a playbook. They dont particularly care about how the railroads are doing right now. These Fund Managers are saying at the beginning of an economic expansion which is where they think we are because of what the fed said, the rails are the stocks to buy, because theyve could the big boys be wrong . I cant tell you how many times i fell prey to the playbook, meaning some copper or aluminum stock buying only to be blown out. If youre concerned about the playbook blowing up in your face, you can revert to the highquality industrials like 3m. How about the commodity cyclicals . Better, you should buy the papers and chemical makers. This time what do you buy . International paper and dow chemical, theyve broken out to the upside. At this stage in the economic expansion, the buyers always fall back on tech. Traditional techs are doing fabulously, microsoft keeps creeping up. Theyve got good businesses. Theyre reinvesting themselves. Microsoft becoming more cloud, less window. I think theyre both very strong here, even after this run. But nothing, nothing in this entire market is stronger than the semiconductors, classic leadership, the parts that go into all sorts of devices. The Market Leader happens to be broadcom. And not far behind, Charitable Companies we havent talked about in ages, micron. With micron doing well in cell phones. Its working. Micron got an extra spur last week. Conference call, they said sales of flash and dram chips are tightening. Thats micron, thats what they do, they make those. Lamm research, youve got takeover names in semis too. How long can marvell stay in effect. Meanwhile, if tech has their own equivalent of honeywell, now, doing so, so well, alphabet not as well, but its still happenin. What else . Were seeing a major rotation in retail, led by total cramer fave, nordstrom. But theyre selling stocks that stores. Finally, we have the conundrum companies, which you have to understand the language of tongues. Talking about oil, weve got a huge glut of oil. The stocks wont quit. Whats that about . Again, if, its the playbook. Youre supposed to buy these stocks. Consumes more oil, however, when it comes to the independents, many are buying stock with acreage. Its going to be a big theme of mine over the next month. Where are investors getting the money to buy these stock, given that theres no money coming in . A lot of its coming from health and its an election year. You know were always just one step away from either candidate saying its time prices are rolled back, because these drug costs, drugs cost way too much. So i cant recommend any of these stocks unless theyre aly worth the risk. You could run into a buzz saw, like gilead which has come up with a cure for hepatitis c. Were in a what have you done for me lately environment. But the wind fall for its drug to work. Be wear of utilities and real estate trust. When the fed speaks, investors the big money at least. If the feds decide the economys healthy enough to warrant a rate hike or maybe two, then they dust off the playbook and go to things that historically work regardless of the fundamentals. Thats Rosetta Stone you need. Just be glad im old enough to remember this almostforgotten language. Rochelle of california. Caller hi, cramer, welcome i sure did miss you and your show. Well, periodically, youve got to spend some time with the family. Caller i know. But, you know, us cramericas, we cant go without you for a very long time. I wish my wife would say that. Caller so cramer. Yeah. Caller twilio. Correctly just got excited there. How can i help now . Caller i believe that this company is definitely in its infancy, and im trying not to watch the daily gyrations, because theres only like 10 million float out there. Right. Caller do you believe longterm, and this is longterm underscored, do you believe this could be the next amazon. Com . Thats a total worry, i do think twilios Business Model taking a little piece of action is good. I want you to sell one quarter of your position and let the rest ride. And congratulations. Judy in florida. Caller its nice to hear your voice over the phone. I love your show. Thank you. Caller im pretty sure i hold or sell . Its had such a big move. I got to tell you, its got such a big move, i need you to cut it in half. This has been a huge move off the bottom. And i want to press our luck here. Cut it in half, let the rest run. I know just how this offense is run. The plg lets get out there. Plenty more mad money ahead. If theres one thing people around the world have to do, its eat then Dollar Stores are known for luring customers with discounts, but after the drop on average last week, maybe its time to buy them or look elsewhere . And thor its looking better than chris hemsworth, although my wife im talking with a ceo, stick with cramer dont miss a second of mad money. Follow jimcramer on twitter. Have a question . Tweet cramer, mad tweets. Send jim an email at cnbc. Com. Or give us a call at 1800743cnbc. Miss something . Head to madmoney. Cnbc. Com. . . One day a rider made a decision. The decision to ride on and save money. He decided to save money by switching his motorcycle insurance to geico. Theres no shame in saving money. Great rates for great rides. It only takes a second for an everyday item to become dangerous. Always keep laundry pacs away from children. Keep them up. Keep them closed. Keep them safe. Its the Phillips Lady anyone ever have occasional constipation, diarrhea, gas or bloating . [ simultaneously ] she does. Help defend against those digestive issues. Take Phillips Colon Health probiotic caps daily 400 likes . Wow phillips. Be good to your gut. Were going to prove just how wet and sticky your current gel antiperspirant is. Now were going to show you how degree dry spray is different. Degree dry spray. Degree. It wont let you down. Question, are my teeth yellow . Have you tried the tissue test . Ugh yellow. What do you use . Ng whitening toothpaste i passed the tissue test. Oh yeah. Crest whitestrips are the way to whiten. Our bacteria familys been on this cushion for generations. Alright kiddos everybody off the backpack, we made it to the ottoman. I like to watch them clean, but theyll never get me on the mattress finally theres a disinfectant mist designed for sofas, mattresses and more. Introducing new lysol max cover. Its innovative cap has a 2x wider spray sometimes a company will do something so surprising that it leaves you wondering how on earth could we have been so mistaken about these guys. Look at deere, the gigantic for years, deere had been a pretty subpar performer. Everyone, especially the analysts who covered the Company Assumed that the broader weakness in the agricultural culture would keep weighing on deeres business and share price. But less than two weeks ago, the whole environment changed when even more surprising than deeres strength was the fact that nobody seemed to see it coming. There was nothing the company could do to compensate, another disappointment was said to be ahead. How did deere manage to fake us out. If you paid attention in previous quarters, you saw a pretty glum picture. When deereep they managed to deliver nice top and bottom line b, but when you checked under the hood, many of the other line items were down right discouraging, they lowered their guidance pretty substantially. Their Equipment Sales would sink 9 . The next quarter would be even worse, numbers down 12 . Decline for its north american ag business. South american ag, which is gigantic, down 15 to 20 . The only strength was in north american turf and utility equipment, the gator. I called it ugly, ugly, and more ugly. When we heard from them in may . There were a slough of reasons. And elevated levels of used Equipment Sales, in other words, promotion and discounts coming. In south america, deere was getting slammed from the seemingly endless down turn of brazil. While deeres execution had been inconclusive. The stock punched 5 the day after the report came out. They fled from this thing. And they summed it up in the title to their estimate cut piece, oh, deere, not this again. Most of the analysts took deeres management at their word, that things were pretty awful and things were getting something funny happened after deeres latemay blowup. After that initial decline, stocks started going down. It caught an upgrade from goldman sachs. It was the first sign. Of the come back. When a cyclicals numbers are at their worst, that is often a nearing the bottom. So goldman pointed out that the demand for highhorsepower equipment was at a 30year low. And if business picks up, deere would be a huge beneficiary. It bottomed and expectations for the company remain pretty darn muted. July, management announced 120 layoffs. Sure enough, on that news, the stock was downgraded. They predicted a strong corn crop. And when farmers arent making much money off their crops they tend not to buy a lot of new machinery. And theyve become skeptical the deere loathing seemed to know no bounds. Given all these negatives, it was surprisingly strong. It was a classic underpromise and overdeliver short squeeze. The Company Posted an earnings beat, no one was looking for that, with its revenues coming in substantially higher than expected. Numbers fabulous, but deeres commentary was more positive than the last time they reported. Management totally shut down the nay sayers. As if their gigantics earnings beat wasnt enough, management suggesting they have more room to cut costs. For anyone who thought deere was better, for the first time in ages, management raised their fouryear earnings forecast. They can protect the margins by keeping costs down. They did not up their guidance because business is getting better, demand is pretty lousy across the board. Deeres generating terrific numbers, simply because their execution is so darn good. Gets there, a beat is a beat is a beat. That said, there was one positive about the state of deeres end markets. Brazil is a theme Going Forward for us. Brazil started to show some improvement, with inflation coming down and sentiment getting more positive as the new government gets its act together. In short, the ag equipment but they continue to do more with less maybe for years to come if necessary, and thats why the stock rocketed up 13 with analyst after analyst raising it. You know what . The stocks really never looked back. Deeres hardly the only one following the playbook. Caterpillar. They were able to blow away the numbers at the end of july, not because the market improved, but cutting costs. I dont like to chase a stock after a big run, but the next time wall street seems to give up on deere, remember how they faked the analyst and proved they could do more with less. The Dollar Stores took a huge hit last week. Does a dollar still go a long way these days . And a little over a decade, knee then im taking a look at a pure play on orthopedic thats up. Plus im taking a road trip, and youre all invited. Stick with cramer. Coming up, jim goes under the hood with a ceo who wants piles of growth. Theres so many positive signs for our industry that are headed the right direction, that give our customers the confidence to go buy an rv. Cramer kicks the tires with Thor Industries when mad money get ready. To show your roots. With root touch up from nicen easy it blends with leading shades, even salon shades. In just 10 minutes. So pick your shade. And show the world your roots. With root touchup. I will awaken your sixth sense mom. So youll notice every little thing. When you notice dry skin, try johnsons new extra moisturizing wash and cream. A rich nourishing bath routine. With ten times more moisturizer. When is a stock not a bargain after a brutal 17 mark down . When its the stock of a dollar exactly what happened to Dollar General stock last week, in the wake of its incredibly illfated quarter. Last thursdays butchering of the Dollar Stores came about in a way that was so unfathomable to the unsuspecting analysts, so confusing and in such disarray, that you have to wonder if any one who follows this company didnt get the memo. How about the 10 price reduction on 40 of 50 of their bestselling items how about the incredible new price competition from walmart . Again, seemingly oblivious to many from either walmarts Conference Calls or the tour of the stores, or the price deflation hitting the supermarkets, and the memo mentions that 500,000 people who lost federal food stamp eligibility, something almost would matter, even as it mattered big time. How could it not . These are Dollar Stores. Plus, at Federal Reserve actually notes, were at the point of the Business Cycle where the people who are doing better have started shopping nicer places again. The wholesale wrongness of the dollar stocks going into this quarter is one of the great mispricings. I had to stop flogging them. I had liked them. The Dollar Stores with the polar opposite of macys, kohls and nordstrom, the companies could mess up big time and they still wouldnt go down. They went higher. Now i normally want to take an interest in a highquality company like Dollar General, and it is high quality. But what this decline tells me is that were dealing with whats known as a reset, a gigantic reset. Could the new food stamp eligibilities affected more how often is the pricing, how much of a gap is it between it and walmart . It had to make these price cuts, which came right out of the bottom line . How did the analysts miss that . How did food deflation get so out of control. And theyre being crushed by dimes and quarters. How much of it is secular . Whats impact of these tradeup stores, trade up out of these Dollar Stores. Historically, Dollar Stores act counter cyclicly. However, given the positive changes made at these Dollar Stores, consumers were taking to these places more than ever before. A newly postrecession frugal consumer wasnt about to trade up. Can capture these people back. Kroger could be doing it too. If the only issue was food stamps, we could price the stock. If it was walmart, we could discount. Hold our noses, buy, by the combination of an improving economy has historically been bad for the Dollar Stores. A cut in food stamp eligibility and in Dollar Generals case, conference call. It all tells me, take a pass. Let them go down to 90 cents on the dollar, then maybe we can think about taking a swing. Joe in new jersey . Joe. Caller hello, mr. Cramer. Since ive been watching you over the years i always beat the broad markets by double. There we go. Thank you very much. Love to hear that. Caller my questions on cvs. Do i buy on weakness . Its an incredibly wellmanaged company, and you cant always have it go up immediately. I dont know when cvs is going to turn, i know its a great company. Owning stocking of companies when theyre down, never a bad idea. Much more mad money ahead. 8. 9 million households in the u. S. Own an rv. Im talking to one of the major players. 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