Minutes later, while still discussing the day's events, Cramer told viewers to sell those Procter shares as they returned to $61, a move that made all those who followed a huge profit in just minutes.
How did Cramer know the $49 price was a false one? Because he knew Procter and knew what it was worth. He also knew that the high frequency trading machines had created an artificial price that just begged to be bought.
Cramer said the machines dealt a huge blow to equities that day and continue to distort the market and skim profits from investors. Since then the markets have been guilty until proven innocent, he concluded.
Off the Charts
In the "Off The Charts" segment, Cramer went head to head with colleague Bob Lang over the direction of the housing market, which remains stagnant despite continued low interest rates.Lang looked at a monthly chart of the iShares US Home Construction ETF (ITB) for his analysis, and noted the exchange-traded fund is showing a bullish cup and handle pattern. Lang also tracked the home building ETF against the interest rates on the 10-year Treasury bond, noting the inverse correlation. As interest rates fall, home building always, after a brief delay, picks up as a result. The thesis was confirmed by an uptick in lumber futures, which could be signaling that housing demand is already on the rise. But Cramer said he's not convinced that seasonality and a temporary decline in refinancing is to blame for slowing mortgage activity. He said it appears that prices are simply too high for most buyers and there isn't enough inventory to support a sizable uptick in activity.
Executive Decision: Anders GustafssonFor his "Executive Decision" segment, Cramer sat down with Anders Gustafsson, CEO of Zebra Technologies (ZBRA), makers of specialty printers and radio-frequency identification, or RFID, solutions. Gustafsson commented on Zebra's acquisition of Motorola's tracking technology for $3.5 billion. He said the deal brings together two halves of the equation because Motorola's technology reads what Zebra prints.
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