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: Steadfast in Face of Terror

Jim Cramer told his "Mad Money" viewers Thursday night that smart investors were buying stocks -- not selling them -- after the terrorist bombings in London.

"We aren't mercenaries, we are realists," he said. "When it appears terrorism won't affect stocks, we buy," Cramer said.

And that's exactly what happened Thursday. After early-morning selling, the stock market turned around and finished positive on the day.

Cramer said today's early-morning selloff gave investors a chance to buy defensive stocks and techs. And when the banks reversed in the afternoon and headed higher, Cramer said that was the time to sell.

"No one ever made a dime by panicking," Cramer said. He said the market is more affected by business cycles than terrorism.

"Our hearts are not black," Cramer said, saying he was a realist.

Cramer told a caller that travel and leisure stocks are the weak links after terrorist events. If you have gains, or even losses in some of these names, it is time to ring the register, he said.

Cramer said the run in the oil stocks meant it was time to take profits on some. Why not sell all of the oil stocks? Because the mutual funds are going to come in and drive the stocks even higher, he said.

In his pick of the week, Cramer tapped Medco (MHS), which got hammered on news that UnitedHealth Group (UNH) bought PacifiCare (PHS). But that reaction was misguided, Cramer said. Medco does a lot of fulfillment work for UnitedHealth and that's where PacifiCare does a lot of business as well, so the thinking is that Medco will eventually start losing business. Wrong, said Cramer. He would be a buyer of Medco here.

Cramer has been negative on the banks lately. Guest Tom Brown of said he would be a buyer of Commerce Bank (CBH) and a seller of Bank of America (BAC).
1 of 2

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
TIBX $24.03 0.00%
ET $0.00 0.00%
INTC $34.45 0.00%
JPM $66.86 0.00%
KSS $48.50 0.00%


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.87 -0.27 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs