Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.
NEW YORK (TheStreet) -- Have the markets lost their minds or did Friday's miserable unemployment number just not matter?
That's the issue Jim Cramer pondered. He told his "Mad Money" viewers that while it might seem unfathomable the markets could rally on a day with so much bad news, in reality the markets' reaction makes perfect sense.Cramer said that first, with the economy still stalled, the markets are once again hoping for an early Christmas present from the Federal Reserve next week. If things get bad enough, the Fed will surely have to act. At least, that's the thinking on Wall Street. Second, Cramer reminded viewers the U.S. is no longer at the center of the economic universe -- Europe is, and hope still springs eternal the continent is about to do the right thing. Third, Cramer said the Chinese pulled the trigger on some big stimulus projects, which is great news for companies United Technologies (UTX), Caterpillar (CAT) and Freeport McMoRan (FCX). Fourth, the woes at Intel (INTC) prove weakness in PCs, not weakness in technology overall, which is why Apple (AAPL), a stock he owns for his charitable trust, Action Alerts PLUS, along with Google (GOOG) and Amazon.com (AMZN) are all hitting highs. Finally, Cramer said the markets are taking note to the fact that no sitting president has ever overcome high unemployment. Thus the markets are betting that Mitt Romney might have a chance in November, which would also be good for the markets. Put all of these factors together and Cramer said it's easy to see why the markets were able to shrug off today's unemployment number and not get crushed as they would have in months past.
Next Week's Game PlanAll eyes will be on the Federal Reserve next week, Cramer told viewers as he laid out his "Game Plan" for next week's trading. Cramer said the Fed's meeting on Wednesday and Thursday will be key for the direction of the markets. But beyond the Fed, Cramer said the week begins with Chinese economic data on Sunday. If these results are disappointing and with no interest-rate cuts, the sellers will be out on Monday and investors can look for their Friday gains to disappear.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV