This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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 Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Cramer's 'Mad Money' Recap: Red Zone Defensive Plays

Click here for an archive of Cramer's "Mad Money" recaps.


Don't expect the "absolutely brutal" action we saw in the stock market today to be over just yet, Jim Cramer told viewers of his "Mad Money" TV show Tuesday.

"But before we damn the whole market, let's remember what were damning," he said. "The mortgage weakness has spread to the market so quickly because traders are closing out of everything."

Instead of distinguishing between stocks, market players are selling all of the stocks in the S&P 500 or anything related to it, Cramer said. Although the subprime loan issue is "a problem that is not going away in that sector the subprime mortgage lenders ," it is wrong for the Street to be so indiscriminate, he said.

No lender in the subprime mortgage market can be immune from the illness that is subprime, but other stocks could recover, Cramer continued. The market is in the "grips of a commodity selloff," and it sent almost all stocks down today. But if the mortgage and housing markets are decelerating, food and drug companies are not worth selling here, he said.

The whole market went down because scared investors wanted out of stocks, Cramer said. And even though they shouldn't have, all defensive stocks went down today because they are all stocks first and companies second.

However, if housing collapses, the supermarkets and the food, drug and utility stocks should do well, he said. "I think you're getting one more opportunity to play defense."

Things are a "tad tricky" here, though, "because the future on the commodity that has captured stocks -- the S&P 500 -- expires Friday, so I expect very little upside in this group until Monday," Cramer said.

People need to "let the commodities settle" and go back to the supermarket aisle in three days to pick up some Kroger (KR), Colgate-Palmolive (CL) or Kimberly-Clark (KMB), among others, when these buys are "driven down by options selling," he said.

"Every sector got trashed today ... and that's plain wrong," Cramer said. "You have a chance to pick up great merchandise at low prices."

To see the Stockpickr portfolio of Red Zone Defensive Plays, click here .

1 of 4

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AA $14.79 -2.12%
CMCSA $59.38 0.39%
DOW $49.24 -0.02%
MO $56.29 0.36%
AAPL $128.46 -1.50%

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs