Cramer's 'Mad Money' Recap: Don't Trust This Rally
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Viewers of Jim Cramer's "Mad Money" TV show probably expected words of optimism after Monday's historic 926-point rally. Instead they received only words of caution.
"This stock market still cannot be trusted," Cramer told viewers bluntly. He called the meteoric market rise just a logical response to what had become incredibly oversold conditions.In sorting out whether Monday's monster rally was sustainable or simply a flash in the pan, he looked at the news on which it was based. He said without details on the Treasury Department's latest banking bailout plans, there's no way to know whether it will help or not. Which banks get the money? How much will they get? How will it be implemented and when? All of these questions remain unanswered, said Cramer. The other "positive" news of the day came when it appeared Morgan Stanley (MS) won't be going out of business. "What kind of positive news is that?" asked Cramer. According to Cramer, the pressing issues of the day still remain. He has yet to see details on how anything the federal government has done to get credit flowing to consumers and help small businesses get financing. While another Great Depression may be off the table, the chance of a severe recession still remains on the table, he said. Cramer continued to advise investors to exercise caution and invest in only recession stocks with large, safe dividends and those whose beaten down value is almost equal to that of the cash they have on hand. He noted Kinder Morgan (KMP) as one such beaten-down stock with great fundamentals.
Cramer: I Was Right - and They Can't Stand It
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