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

'RealMoney' Radio Wrap-up: Cooler Heads Prevail

This morning's bombings in London were horrific, but they shouldn't distract investors from a few core strategies, Jim Cramer said on his "RealMoney" radio show Thursday

Cramer discussed the best trading responses to this morning's subway bombings in London's public transport system. Early in the show, he put aside the notion that the U.S. market's afternoon rally makes American's "unfeeling" or "uncaring."

"Exogenous events will always play roles in the market," said Cramer. "But after 9/11, the notion of terrorism as an event that can wreck our markets has forever changed."

Traders recognize terrorism is part of life, Cramer said. They need to be able to decide quickly what sectors it will affect. "And if it does not look like a sector will be affected, then we step in and buy."

Today was a good chance for U.S. buyers as European traders beat down shares ahead of the U.S. open. Cramer partly attributed the European response to profit-taking, saying "our markets have not been as robust as the Europeans so they have more profits to take."

Any additional fallout will be positive, in Cramer's opinion, as the British have traditionally been tough on terrorism.

Cramer said he used this morning's weakness to buy the tech and defensive stocks that the Europeans were dumping. In other words, he nibbled at semis and aerospace names.

On the other hand, he moved out of bank stocks when they rallied later in the day.

"I'm astounded that the Fed did not blink at all when I was on vacation," said Cramer, who has been away for about a week. A lot of bank stocks have been buoyed by their high yields recently, but another two rate hikes means that cash will be more attractive. So he advised swapping out of the banks.
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
ENG $1.15 0.88%
ENMD $1.05 -6.25%
HAL $39.74 3.62%
QTWW $0.92 12.29%
UNH $113.19 0.92%


Chart of I:DJI
DOW 17,812.19 +19.51 0.11%
S&P 500 2,089.14 +2.55 0.12%
NASDAQ 5,102.8080 +0.33 0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs