Just as investors had determined that the technology and financials group were in the "no touch" zone, they came roaring back on Thursday. Jim Cramer smelled a fish. Why would money managers leave the very best stocks in order to pick up the ragged and unloved ones?
When Cramer attended CNBC's Delivering Alpha conference this week, he spoke with many big time money managers who seemed completely unwilling to deal with the techs and financials. They didn't seem to like or trust these businesses.
Cramer suspects that money managers have repeatedly gone back to the financials because they were considered "cheap" versus historical levels, and they decided to just give in and deal with them. Yet, they remain too hard to analyze.
"These managers might very well be right, theoretically. But I think it's time we speak truth to power and say just how wrong that's playing out now," the "Mad Money" host said.
Ultimately, the big takeaway from Delivering Alpha for Cramer was that many portfolio managers seem to be scared of the past, so they come up with creative ways to avoid stocks like tech and finance. The only stock that Cramer refuses to touch with a 10-foot pole right now is Apache, which he warned investors in the Lightning Round to steer clear of.
"I don't like Apache. I do not like Apache and the oil group is under tremendous pressure here, and that is one that I don't want to own," he said.
But in Cramer's world there is more than one way to skin a cat—just when you think outside the box to reconsider traditional investment themes, the money flows in.
While speculative biotech stocks have been on fire lately, Cramer reminded investors that it isn't the only way to make money. The gigantic pizza chain Domino's Pizza made shareholders very happy this year with a 22 percent gain.
"This is the kind of terrific stock that just seems to go higher and higher, year after year and even though Domino's has already run up…I'm convinced that it's got more room to run," the "Mad Money" host said.
Domino's reported a stellar quarter on Thursday, and the stock dropped $3, which Cramer predicted would occur, based on its history. So to hear more on what is cooking up at Domino's, Cramer spoke with CEO Patrick Doyle.
"What we are seeing is that as more and more stores are redone, and they're not seeing the old Domino's; it's just elevating the overall brand. And what people are seeing in the stores is consistent with what they've seen from the food, the service and the technology. We think it's definitely contributing to some of the momentum that we've got," Doyle said.
When Cramer read the fantastic conference call transcript for Netflix on Wednesday night, he was at a complete loss for words. Did management know that they were about to put on an amazing display to rock the world with video consumption innovation?
"This quarter, the one that came after the brilliant 7-for-1 split that made it easier for retail investors to contemplate owning the stock, was so special that I can't even count all the ways I loved it," the "Mad Money" host said.
After all, Netflix must have done something right if it is up 137 percent for the year. Right?
But rather than just glorifying what went right with Netflix, Cramer decided to share his take on what exactly he heard on the conference call instead.
"Stop saying 'Holy smokes, Netflix is now bigger than X or Y or Z television or entertainment play.' It should be," Cramer said.
At this point, Cramer thinks it would take a massive effort to screw Netflix up. It really is that good. Just one review of the conference call, and all investors will know why it is so awesome.
Cramer also saw solid performance for several of the regional banks this week, such as U.S Bancorp, PNC and M&T bank. One of those companies in this group is KeyCorp, the parent of KeyBank, which reported a mixed quarter on Thursday morning and disappointed the market.
And while Cramer considers it one of the most consistent financials that he follows, the company missed Wall Street earnings estimates by a penny, with revenues coming in higher than expected. But the key metric for evaluating the banks is net interest margin, and KeyCorp saw a decline of 10 basis points year-over- year.
To hear more about the quarter, Cramer spoke with KeyCorp's chairwoman and CEO, Beth Mooney.
"I will tell you that we had a really revenue quarter across our bank, including a record quarter in investment bank, and I do think that we were in-line with what we expected but the expenses came in at high side of expectations. But I don't think we should lose sight of the fact that we had 4 percent revenue growth in the quarter, and that was very strong," Mooney said.
Cramer continued Chart Week this week to touch base with some of Mad Money's best technicians and learn more about their mode of analysis and what the future could hold for stocks.
Cramer has always said that copper is an important metal that could provide investors with a great read on the state of the global economy, as well as gold which hit an eight-month low on Thursday. He uses copper as a reading especially for China.
Do investors need to have a stomach of steel to invest in these metals, or could it be time to consider a bullish position?
One of the reasons why Garner thinks copper could be on an uptrend is because of the seasonal tendencies of it in the past 20 years. Copper has a tendency to trade weaker in the beginning of June, and bottom by early July. Looking at the monthly chart, Garner also sees that it is poised to rally until the end of August.
However, Garner thinks that what is important to note about it is the fact that speculators are always long gold and rarely hold a short position. At the moment, there is a small bullish position building in gold, which tells Garner that the market could start heating up again.
"A lot of the weakness in gold has been 100 percent due to the dollar. So, that is a big factor here," Garner added.
In the Lightning Round, Cramer gave his take on a few caller favorite stocks:
Valley National Bancorp: "I know Valley National Bank, and I've done some business with them, and that stock can go higher. It's got a good yield, too."
Travel Centers of America: "TA is a winner in a world where oil seems to be bent to go into the $40s. You've got a good one."