This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cramer's 'Mad Money' Recap: Don't Fight the Fed

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.

NEW YORK ( TheStreet) -- Don't fight the Federal Reserve.

That was Jim Cramer's lesson for his "Mad Money" TV show viewers Monday. He told investors that sometimes the macroeconomic picture matters more than the results of individual stocks.

Cramer said today's market's rally was a classic lesson in the tug-of-war between the microeconomic "realists," who analyze the results of individual companies, versus the macroeconomic "impressionists," who look at the world in a more abstract manner.

Sometimes the realists are in charge, noted Cramer, but other times, like today, the abstract data such as industrial gains in China or a positive manufacturing number here at home are all that's needed for a healthy rally.

That's why Cramer said he learned a long time ago to never fight the Fed. If the central bank is working hard to spur manufacturing or strengthen the banks, eventually it will succeed, and the last place an investor wants to be is on the wrong side of that trade. The banks, oils, copper, aluminum and materials stocks are all on the Fed's radar, said Cramer, and those are the stocks that were lifted most by Monday's macro news.

There is no right or wrong when it comes to whether the micro or macro picture matters more over the long term, Cramer concluded, but at least for today the abstract macro picture was the one to which the markets paid more attention.

New Quarter, New Ideas

In football, quarterbacks are known to flow through a process known as the "check down," where they scan all of their receivers looking for the best opportunities to pass the ball.

Now that the third quarter is behind us, Cramer said he's doing his own check down to see where the best investing opportunities are.

Starting off in the Dow, Cramer said Home Depot (HD), a stock he owns for his charitable trust, Action Alerts PLUS , was one of the best performers, up 14% last quarter, but that story is no longer new. Procter & Gamble (PG) was also up big last quarter, but that stock needs a pullback to be investable.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BG $61.79 0.00%
PLD $45.65 0.00%
YHOO $36.01 0.00%
AAPL $94.98 -0.21%
FB $116.77 -0.56%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs