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tv   Mad Money  NBC  August 22, 2012 3:00am-4:00am EDT

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>> buy it in stores toy! -- captions by vitac -- www.vitac.com >> i'm jim cramer. welcome to my world. you need to get in the game. they're going to go out of business and they're nuts. they're nuts! they know nothing! i always like to say there's a bull market somewhere. "mad money" -- you can't afford to miss it. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to save you money. my job is not just to entertain you. i'm trying to educate and teach. call me at 1-800-743-cnbc. now here comes the hard part. we are at a critical junction for the stock market. we're challenging the old highs. that's what we saw today when the averages took off higher. right from the get-go, but then got slammed and fell back. the dow only closing down 68 points, s&p falling 0.35%.
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nasdaq declined 0.29%. what a red hot index that has been. i'm surprised it didn't go down more. when we get to levels that failed before, when we get to the ceiling so to speak, there are tons of people who got in at these levels in the past and they -- >> sell, sell, sell. >> -- ring the register to get back to even. there are others who think it will fail again. it's something we've seen repeatedly. others are wary that we're about to go into september soon. a cruel and frightening month. that means it's time to trim back your holdings. because doesn't history have to repeat itself? all the selling will be aided by underperforming funds to parade out a laundry list of genuine reasons why we have to go lower, lower, lower. vix is too low. volume is disappearing.
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we have a new one. rally in gold, which is a sign people say of war about to break out or the printing press is about to be broken to print euros and dollars in order to pay for bloated budgets around the world. to which i say good. we need it. see, if you were longer term bullish, not the day, not the week but maybe several months, if not a year, you need the people who trade for a living to trade out of stocks here. to bet against them even. you actually need the sellers to come in and create their own negative buzz. that's what they do. you hear them on tv. you read them in the papers. why would we want more negativity if we ultimately want higher stock prices? simple. because straight-up markets are the most dangerous markets at all. parabolic market, very dangerous. we need to see the scalpers to take the profits and create the worry that's been so sorely lacking in order to get the next move up. that's why i want to talk to you about pullbacks and reversals
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tonight so that you understand and don't freak out about them and yes, even embrace them as a way to get involved. probably missed a lot of this move at better prices than maybe we're used to or you have a right to get. i want to talk about what emboldens me to not call a top tonight. but rather if you're as fearful as many, something i detect all night and all morning on twitter @jimcramer, all these people want to take money off the table here, revisit stocks at lower levels. hey listen, go do what you want. but first let's discuss what a pullback actually means. throughout these last few percentage points of gains, we haven't had a breather that inspires the belief that it's all over. get those bears talking. some of that is because of the miraculous run in apple, frankly, which i bieve seems like it got a little too hot for the moment. we could use more skeptics in apple like the ones we got when it reported, remember that? skeptics, short sellers, disbelievers, bubble callers.
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these are the people who power a rally by building a wall of worry, replete with barbed wire and claymore mines, that needs to be sced so we canll go higher. that's what the apple reversal did today. it made some people say hey, too good to be true. it made others say beware of the apple bubble. you got the i told you so from critics who don't bother to mention they sat out the last 100 points. i heard comparisons invoking the high-flying top we put in at the end of the dot-com period. apple sells at a much lower multiple to its earnings. great stocks do not climb like rockets out of the cape canaveral. they climb up stairs. we haven't seen stairs in ages. this is why i say often it is better to take a pass on a stock after it's had a huge run like it has. better to catch it lower instead of buying it up 15. of course, that may mean you never get back in. that is a risk, okay?
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but sometimes that's the risk. sometimes that's the breaks of the game. suffice it to say, though, the majority of you watching only want to buy apple when it's going higher. many investors orate a little like best buy, the company, which bought 100 million shares of itself at a very high price and now doesn't want to buy any more down here. it's called human nature. you've got to buy, not sell, the weakness once a stock stops climbing. you must be in no hurry to buy. don't forget that apple fell from 636 to 529 when it bottomed last time and we know from our chartist that means we could see apple trade down as low as the $560 level before et rl bounce back up without any real damage being done to the stock. can you imagine how nuts and crazed people will be when the $66 stock goes to $56? i forgot to multiply by 10. why am i so sanguine? what keeps me from saying enough is enough?
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let's go. get out. well, how about what's happening? the world? a month ago, i circled this week as the potential for debilitating selling. why? i figure greece is going to default. no, it didn't happen. i figured the interest rates for spain and italy would shoot through the roof. the default swaps, all that other nonsense, meaning they were about to default. no. rates fell dramatically there. right about now, the two colossal spanish banks were supposed to be flirting with zero, right? instead each has just gone up about 50% from its low in the lastew. oh, how about the fact that all the stock markets in europe are supposed to be big bear markets? only spain is not in the black for the year. shoot me, i think it matters. then there's my dashboard indicators. the euro has been rallying with alacrity. that 119 level i was so worried about, it held.
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and euro seems to have bottomed, tim collins called a top in the single currency in the $1.30s. the transports that have been so worrisome, they've been leaving the market. that nagging decline in copper seems to be reversing. the various freight rates i watched, holding, albeit at lower levels. before any real growth can happen in europe, you've got to see gold run. precious metals taking off. nothing ever works all at once and both are still within my comfort zone. here's the bottom line. the bottom line is that right now, markets are marking time. digesting its gains. giving up enough to frighten the traders, but hopefully not enough to shake out the investors among you, and that's who i'm talking to. in short, it's doing exactly what it's supposed to do if it's going eventually to take out the ceiling that right now seems impossible to breach. let's go to brian in texas. brian?
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>> caller: boo-yah to my main skee-daddy. i need the down and dirty on micron and their possible acquisition. >> sell, sell, sell. >> house of pain. >> sell, sell, sell. >> you know, i'm not a fan. i'll give you a two-fer. advanced micro. another one i don't want you to touch. let's buy best of breed. those are the ones that always work out. we're challenging new highs and the market is taking a well deserved breather. don't leave the casino. hey, step aside. have a glass of water. keep your head clear. "mad money" will be right back. coming up -- under pressure. after a series of stumbles, domestic driller devon energy has fallen more than 20% from its highs. cramer is talking to the ceo to find out if this stock could
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soon reverse course. and later -- get in the game! halftime is over and cramer is back. which stocks should make the cut? tweet your suggestions @jimcramer or #fantasystockportfolio and stay tuned to see if your favorites made jim's team. plus profitable pattern? cramer is turning to the technicals where he's identified a trend that could have you seeing green on an all new edition of "off the charts." all coming up on "mad money." we know a place where tossing and turning
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another step forward in our mission for health. >> the plummeting price of natural gas has caused some domestic energy stocks to get hammered and devon is one of them. this company, primarily the producer of natural gas has worked to get more oily so to speak but today it hasn't satisfied its wall street critics with its transformation. many claimed their last quarter was a disappointment. my charitable trust owns it. but what's turning to be an up year for the stock market, devon has fallen behind.
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is the transformation of devon from natural gas to oil happening fast enough? can devon return to exceeding expectations the way some other companies have this quarter? let's talk to the president and ceo of devon energy to get a better sense of how his company is doing and where it's headed. welcome back to "mad money." >> great to be back, jim. >> citigroup which likes your stock very much after the quarter, they've got a buy on it, said that devon reported earnings per share, cash flow per share significantly below both our estimates and street consensus as total production crude oil and natural gas realizations and midstream earnings fell short of ne to slightly abo costs were in expeations. have things changed since a bull like the citigroup guy was disappointed by the quarter? >> we certainly had some challenges in the last quarter, a lot of which related to product prices. you mentioned in your
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introduction, natural gas prices. and we all know natural gas prices were low as a result of the very, very warm winter we had and the large amount of supply. but there are two other things that hit us. one, the realized price of natural gas liquids, especially in the mid continent. we tend to have a lot of natural gas liquids and also the price of canadian oil. we've got conventional oil in canada and heavy oil in canada. the differentials, the deduction for wti was large in that quarter. and that was all to do with a variety of reasons, many of which related to infrastructure, midstream outages and that type of thing. so it was a disappointing quarter for us as we were affected by those prices. but, you know, this business is cyclical, prices are cyclical and we're sticking with our focus of investing in
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high-return projects. we're maintaining our capital discipline and we're continuing to build this big asset base on the oil side that we're really, really excited about. >> how's it going, oil versus natural gas by the end of the year? and how many of what you just talked about are temporary interruptions towards your longer term path to becoming more oil? >> well, let me maybe address your second point first. some of these are very temporary. with canadian oil there's a very tight balance between takeaway capacity and the amount of supply in the market. we actually have a lotf pipeline capacity coming on, more refineries coming on. the xl pipeline that you and i talked about, if that gets the go ahead, that all starts to alleviate it. there are some infrastructure issues that are short-term in
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nature, some will take a couple of years to alleviate until we get more end use demand created. as you look at the types of things that we're doing now, we grew our oil production 26% year over year. that's not off a really small base. we's producing 250,000 barrels of oil and liquids. 150,000 of that is oil. that's a big increase. and we're continuing to focus on that. by the end of this year, we'll be over 40% oil and liquids production. and we're spending every cent in our company today on oil or natural gas liquids growth and about three quarters of it strictly on oil growth. we're excited about some of the opportunities we have. >> are natural gas liquids
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prices getting any better than since the month began? >> the natural gas liquids, as you're aware, the main components of that, what's probably going to happen, towards year end, we have quite a bit of transportation capacity coming on for propane. so -- and propane is something you can export. it's a heating oil substitute. so it trades very much with oil. ethane is the component of the natural -- or the natural gas liquids barrel that is the most challenged today because it has one use and that is in the petrochemical or the plastics industry. and the elasticity of demand tends to be very low because it's got that one use. so that's something, though, that has come back a little bit. and as gas prices, natural gas
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prices go up, which we all believe they will in 2013, ethane prices go up with them. >> one last question, you did the terrific deal, $1.4 billion and just one of your 150,000 net acres area, can there be more of those deals to bring out value? i'm trying to figure out how devon can get it so that it does not trade below its proven reserves net asset value which i've never seen devon do, this is right now doing. >> we're still in our transition. we completed the sale of our offshore properties in june of last year. we've been reinvesting those funds in these oil projects that are not contributing to cash flow. that's going to change as we continue to invest in this. these joint ventures with sinopec and sumitomo, both terrific partners, and that
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really significantly improves our capital efficiency, because it recovers our up front costs for the land and early exploration drilling. and then provides us with some additional funds through a period of development. we really get these plays to the point of development with very, very good returns to devon. we have one of the strongest balance sheets in the entire sector. leveraging our capital efficiency makes us that much stronger so we can keep investing through down portions in the cycle. >> terrific. i know the street right now has a bias against devon but perhaps that bias is incorrect. thanks for coming on the show. >> nice to be with you. >> the president and ceo of devon energy. the stock is down a lot.
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if you think natural gas liquids is going to come back, i think it's an inexpensive stock. "mad money" back after the break. coming up -- get in the game. halftime is over and cramer is back. which stock should make the cut? tweet your suggestions @jimcramer with the #fantasystockportfolio and stay tuned to see if your favorites made jim's team. and later -- social sellout? there's more bad news being posted on facebook's flawed timeline. but could this update make more friends of the sullied social ipo hit the road? don't miss cramer's call. [ male announcer ] this is rudy. his morninarts with arthr pai and two pills. afternoon's overhaul start with more pain. more pills. iple checking hydraulics. the evening brings more pain. so, back to more pills. almost done, when... hang on. stan's doctor recommended aleve. it can keep pain away all day with fewer pills than tylenol.
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with the nfl season approaching, this week we're having the mad money football draft, because i will use any analogy to grab your attention, including one that doesn't involve a team i like. if people spent half the time they spend on fantasy football managing their money, they would be much better investors. you need terrific players, but you can't just draft five fabulous quarterbacks. you got to be diversified, both by sector and by strategy, which means filling various different positions with different kinds of stock players.
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last night we picked running backs, wells fargo, 3m, honeywell. those are workhorse backs, bruisers who can take a lot of hits. they may get injured but ultimately they'll be able to grind themselves across the field to give you a touchdown. go to twitter @jimcramer #fantasystockportfolio with what stock you think could make a good quarterback pick. you may even get to see your twitter handle on the twicker. and tonight, we're picking some wide receivers. in football, wide receivers are the fastest men on the field. they're the guys you throw the ball to when you need to make a big play. and a high quality wide receiver prettyh s glue for fingers. eir hands are like satellite dishes that receive everything in the area. we're looking for go-to stocks that have lots of upside and management teams that know how to execute. so who fits this bill?
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for a first wide receiver, i'm a conventional guy. i want so draft disney which i think of being sort of the calvin johnson of the lions, aka megatron. disney is well rounded with a host of great businesses. they're all on fire. they own a network, abc, a ton of amazing cable properties, like espn, the disney channel and abc family. there's the theme park business, disneyworld, disneyland, hong kong disney, disney cruise line. they're on fire with that. the relts in the latest quarter were phenomenal. 9% rise in revenues and a 21% increase in operating income. and the film studio with its most recent quarter, 100% increase in operating income thanks to "the avengers." the third highest grossing film of all time.
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the only reason disney didn't shoot through the roof when it reported, which is your opportunity, by the way, it was a terrific quarter two weeks ago, august 7, was the stock had already run up 12% going into the results. the expectations were sky high. and one reason why i think disney can make a big play is you're basically getting that quarter for free. the stock was trading at $49.81 before the company reported and now it's at just $49.64. plus disney sells 14.2 times next year's earnings, a pretty low multiple considering its long-term growth rate. the company is generating a massive amount of free cash flow. the latest quarter, up 94% year over year. back in december, the company did give you a 50% dividend boost. management still has a ton of room to raise the payout. soaring like a wide receiver jumping for the touchdown pass if it, well, happens again. how about a second wide
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receiver? google is a stock player more like victor cruz. i could still consider him the new kid on the block for giants, hence this ridiculous get-up. remember, in fantasy, you get players on teams you don't root for. i am rooting for this giant go the stock is barely ten points off of its 52-week high. some analysts think it grabs 75% of the ad spending on a site. that's phenomenal. that's an incredible figure. unassailable market share, pristine balance sheets, one of the tiny group of tech players that has mobile, social and the cloud. but if you look back a little more than a month ago, most investors had written google off. the stock was languishing because of worries about decelerating revenue growth, as well as concerns about the acquisition of motorola mobility, which many people viewed as a mistake.
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also general fears about competition. they're worried about european weakness. 50% of the revenues here. then google reported an excellent quarter during what many considered to be a horrific environment. maybe the equivalent of catching a hail mary pass and the stock has been roaring ever since. i think it's clear now the worries here were overblown. google is nothing like these overhyped social media stocks that have been falling apart lately. it's not facebook. facebook still has to prove itself to advertisers. google doesn't have to prove itself to anybody. unlike facebook, i like it more on my mobile than my desktop. google trades at 13.7 times next year's earnings. it's got a 15.7% growth rate. and some of the numbers year over year are much better than they were a year ago. much better than they were two years ago. and facebook looks like it's slowing down. google looks like it could be accelerating. today, google couldn't get any separation from the bears, but
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the bear double-team will only leave disney wide open. and for our final wide receiver pick, i'm drafting a phenomenal sleeper, okay? one that nobody has high. i'm talking about a guy that people talk in the seventh, eighth round now. but i don't think so. i'm talking about cisco. the giant networking company i have criticized mercilessly for short-arming the ball over and over again. but last week, the alligator-armed cisco finally reported a spectacular quarter without dropping the ball. right in traffic. which is why i believe they can get back on track. think of it like deshawn jackson of my troubled but still loveable eagles. he was confused, a tad knuckleheaded and lost. now he's a good fantasy football draft pick who nobody believes in. same with cisco. in fact, this company is starting to feel like the cisco of old to me. the cisco that made people fortunes during the '90s tech boom. the cisco that took it to the
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giants of networking. it's taking share left and right. great punt returner against the giants. meanwhile, the company's main markets are rebounding. enterprise spending is on the upswing. data centers are buying network equipment like crazy. up 90% year after year. even the telco carriers are upgrading. plus, cisco talked about strength all over the world, including china. there's not enough weakness to offset all the good things happening everywhere else. it's pretty amazing. not only did cisco report a fabulous quarter, they're better than disney by 75%. bringing the yield up to an astounding 2.9%. that's a signal that management believes business is getting much better and will stay better. i'm franchising cisco. bottom line, every portfolio needs some wide receivers, some fast moving momentum stocks.
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my wide receiver picks are disney, google and for a player that's coming back after a long period on the mentally unable to perform list, the mup, cisco. we're drafting a quarterback tomorrow, so tweet me at jim cramer. #fantasystockportfolio. it's rice, 3m, very much so. and let's say who are we going lesean could really come on. to draft first tomorrow night? i think that's honeywell. well, i need your help on that tomorrow. let's go to rocky in new york, please. rocky? >> caller: boo-yah. i've been buying foot locker stock for the last five or six years on a monthly basis. they recently came out with their quarterly statement and their sales and profits are up. what do you think? >> the stock jumped up after and
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what really shocked me fly was that nike, a stock that my charitable trust owns, stayed where it was. i think footlocker is good, but after that move, i prefer nke. huddle up cramerica. it's not just a fantasy. we're drafting wide receivers. don't forget, i need some quarterback names @jimcramer on twitter. stay with cramer. coming up -- profitable pattern? cramer is turning to the technicals where he's identified a trend that could have you seeing green on an all-new edition of "off the charts." and later, social sellout? there's more bad news being posted on facebook's flawed timeline. but could this update make more friends than the sullied social ipo hit the road? all coming up on "mad money."
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it is time. it is time for the lightning round. you say the name of the stock, i tell you to buy or sell. we play this sound, then the lightning round is over. are you ready skee-daddy? stephanie in pennsylvania, stephanie. >> caller: hi, jim. my stock is emerson electric, emr. >> we missed the bottom on this,
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but this stock is a stock that could truly even rise from these levels. and that's why the trust is buying it. let's go to david in new jersey. >> buy now or on a pullback? century link? >> you've got to wait for a pullback. verizon and att are pulling back. let's hope it can come down to 40, but it does have a better business model right now. let's go to brian in maryland. brian? >> caller: hi. this is major brian cavanaugh giving you a big u.s. army hoo-ah. >> and i'm giving you a thank for serving boo-ya back at you. >> caller: my questions is regarding 3d systems, ddd, is it a good play for my tech stocks? >> it is a red hot stock. if you wanted to, take a little bit off the table because it has moved so much.
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but they have a hot business model and they were doing very, very well. rob in virginia, please. don't buy. i like chevron more. when they screwed up, it was time to buy it. let's go to nate in california. nate? >> caller: boo-yah, jim. ltb? >> when it reported, people didn't like the quarter. but as soon as they got a further look upon further review, people recognized it was a good stock and it remains inexpensive and i would be a buyer. one more, let's go to shelly in my old home state of pennsylvania. >> caller: what's up with my stock emc? >> emc got hit. i really liked that last acquisition they made. i think it puts them -- that was just a classic big data acquisition. dell after the close, not a great number.
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been following very closely with my colleague nicole urken who's saying the value, it keeps going lower. i want to sell dell and buy emc. and that, ladies and gentlemen, is the conclusion of "the lightning round." >> the lightning round is sponsored by -- ] [ male announcer ] if you think all batteries are the same... consider this: when the unexpected happens, there's one brand of battery more emergency workers trust in their maglites: duracell. one reason: duralock power preserve. it locks in power for up to 10 years in storage. guaranteed. so, whether it's 10 years' of life's sunny days... or... the occasional stormy one... trust goes a long way. duracell with duralock. trusted everywhere.
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i'm a fundamentalist. if you're going to buy a stock, you buy it because you like the fundamentals of the company not just because the chart looks good. you have to say there's a lot of chart followers out there.
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you have to be able to look at a chart, know what they're seeing and what's being said about the stock. these pictographs of the action can be real drivers of short-term stock moves that i know many of you care about, even though i prefer you to be investing and not trading. when those moves happen, you want to know what's causing them. a lot of times they seem like they're just out of thin air. so for tonight's "off the charts" i thought it would be worth giving you chart reading 101. specifically, how to spot charts going from bearish to bullish. the terrific technician that runs the website fibonacciqueen.com and happens to be my colleague at realmoney.com. i've gone over all her stuff since we first started and she's probably one of the most spot-on technicians we use. how does she identify charts
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that move from bearish to bullish? when a stock is making higher highs and higher lows, that's bullish. that's common sense. when it's making a pattern of lower lows and lower highs, that's considered bearish. so when you get a stock that's been making lower lows and lower highs, then finally shifts and makes a higher high, that could be a sign the chart is about to go from real ugly to real pretty. if the stock goes on to make a higher low, most technicians would consider that a pretty reliable recipe for a rally and i'm with them, even though i'm a fundamentalist. i want you to be an informed investor with a good knowledge of the technicals. check out vmware, part of the big data revolution. you got exactly this pattern shift a month ago. the stock has been roaring ever since. vmware peaked back in april.
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and for months afterwards, the stock went on to make lower lows, okay? and lower highs. that's a bearish chart. most technicians will write that off as not being worth their time. others might just short it on this pattern. but then after getting hammered for months, on july 18th, vmware finally flew through its previous swing high, which meant the era of lower highs was at last over. however, for the chart to flip from bearish to bullish, the stock also has to start making higher lows. and that's why when broden sees this kind of higher high action, she likes to watch for the pullback in anticipation of that higher low. at which point she expects the rally to resume, pulls the trigger. she looks for a pullback of 50% to 78.6% of the previous move up. remember, those are not pulled
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out of thin air, those are based on these fibonacci ratios. those sequences of numbers, they repeat themselves over and over again in nature in petals and trees and in the stock market. go read it. it's a scientific issue, at least according to many of fibonacci's trading disciples and broden who happens to be the fibonacci queen. the stock pulled back 50% after making a higher low. the pattern shift from bearish to bullish was then complete and the rally resumed. broden likes to wait for the ultra short-term exponential moving average to cross above the slightly longer term 13-day moving average. that's these lines. not just my daughter's name. it's the actual moving average. something that confirms the momentum is real. this happened in vmware not only after the stock made a higher low and the move hasn't stopped since. broden has seen it play out in
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apple and caterpillar. i want to focus on the ones where it's in the process of happening right now. this bearish to bullish chart move is still actionable so you move is still actionable so you can pull the trigger as this market works its way lower. so take a look at the daily chart of lulu lemon athletica. this is the rapidly growing yoga inspired retailer that happens to have a store two blocks from me and i like to take a look at the the merchandise, so to speak. broden sees signs this chart could be moving from bearish to bullish. the evidence, after making lower highs for months, i mean, ugly, ugly, ugly, ugly, ugly -- last friday, lulu lemon broke out above its previous high from july 30th. so now we've got a higher high.
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lulu also had the moving average crossover that broden likes to see. see that crossover? five day going above the 13-day moving average. but remember, this is just the beginning of the process. broden will wait for a pullback to see if lulu lemon can make a higher low. all bets are off. the chart remains ugly. but as long as it stays above that level, broden would buy lulu lemon. how high could lulu go if this cht actually does turn bullish? using these ratios, she thinks that $70 could be a reasonable target. don't you want that? get this, lulu might be able to work its way to $74.91 and ultimately $88.95 if this pattern works out. wow.
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that would mean lulu lemon is back. what else has this bearish to bullish setup? how about another controversial one, linkedin. it shouldn't be that controversial. it seems to have a decent business model give or take yelp. let's have a gander at this one. after a series of lower lows and lower highs, linkedin made a higher high back in the beginning of august, boom. lately it's pulled back. broden thinks it's giving you a beautiful entry point. as long as linkedin holds above $92, 13 points below where the stock is right now, it will make a higher low and the pattern will switch from bearish to bullish. linkedin has a strong floor of support running through the $96 to $99 area. how far could this run? the fibonacci ratios come up with targets. linkedin could rally anywhere from $116 and change, 11 points to where it is now to $129 and
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change for a $24 gain. remember, she's not talking about whether the price to earnings multiple is too high. this is pure technicals. is it expensive on a fundamental basis? outrageous. last but not least, this pattern is playing out in joy global, an inexpensive stock. this one is further along than the other two. i want to get behind this, but i've been reluctant because of china. as you can see from the daily chart, joy global blew through its previous high, then made a higher low. since then, the stock has been en fuego. broden sees the stock rallying, not off much upside. when you look at the weekly chart, take a look at this. she thinks it could be the beginning of a much larger move. i mean wow. on the weekly, based on a 61.8% retracement of the previous decline, joy global could rebound to $77.55.
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that's a 33% gain. if china turned on the stimulus and we saw a decline in the amount of coal inventory, she would be right. that's me speaking fundamentally and not just technically. the bottom line, i don't recommend taking your cue from the charts. you know that. but i do suggest that you know how to tell the difference between a bullish chart and a bearish chart. not to mention a chart that's most importantly switching from bearish to bullish. that's what's happening in lulu lemon, as well as linkedin, which means they could be worth buying on weakness, and joy global, the process of what we call bullification is almost complete. "mad money" is back after the break. it's time to change the way we clean. it's time to free ourselves from the smell and harshness of bleach. and free ourselves from worrying about the ones we love. new lysol power & free has more cleaning power than bleach. how? the secret is hydrogen peroxide.
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insult to injury, salt to the wounds, those images come to mind when i hear that a member of facebook's board of directors sold his shares after the lock-up expired. he has every right to sell. it's perfectly legal. it's not his fault that his stock has been horrendous. he's allowed to sell a big amount. fourth, i personally like him very much. nevertheless, i find the sale completely outrageous in light of the seemingly endless decline in facebook stock. i hoped the insiders would be buying stock as a way to show faith in the company's longer-term growth.
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i said previously, if you wanted signs that the stock might stabilize, you needed the insiders put some real money at work. the company talks a big game how facebook is worth far more than it is selling for. and the fact that it's legal doesn't mean it's fine. i mean, fine in my eyes. in the light of all the money teal has made over the years it seems tawdry that's he's cashing out here. hey, i said all along this is not something to hold on to. to me, the sale is saying hey, all you chumps who bought facebook, listen up. i am a megatron gazillionaire that knows more than you. how could he not think people would react to rage given how closely we follow buys and sell scrutinizing them for every clue that might be available. he should have canceled his program to sell as a gesture highlighting the longer-term
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value of facebook. second, mark zuckerberg, one of the revered grown-ups should have told teal, look, can you stop the plan and put the sale to a later date? anything is better than what transpired here. everything teal did was legal. all fine. in the eyes of the law. it just seems wrong to me from the point of view of the billions of dollars lost by everyone who came in after facebook came public. we all know that we live in an era where pretty much everything goes for the rich. no one ever seems to have to pay, other than the mad money wall of shame, i don't even believe there's much outrage about these travesties anymore. there's like outrage fatigue. it's just a shame no one seems to feel ashamed. suffice it to say that today, i would sure be if i were connected in any way, shape or form with facebook.
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