Cramer's 'Mad Money' Recap: Pullback Playbook (Final)

Stock quotes in this article: GIS , FNFG , AAPL , GOOG , TSRA  

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


"You cannot afford to lose faith in this market," Jim Cramer said time and again on his "Mad Money" TV show Tuesday.

Cramer said that the markets are showing classic bull market signs, but no one seems to be listening.

Last week, Cramer said he was alone in championing the markets. As the market leaders of tech, oils and finally the banks began to pull back, just about all of the nay-sayers started forecasting a huge market correction, he said. But he said the name of this market is resilience, despite what the pundits may tell you.

Cramer said in any bull market, it's perfectly normal for the market leaders to pull back 5% to 10%. The true sign of a bull market, however, is that it returns to those leaders and continues higher.

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That happened in the case with tech, with companies like Apple (AAPL) retreating from $132 to $120 a share, only to surge higher today. Likewise, other tech bellwethers like Research In Motion (RIMM), which fell 10% last week, and Google (GOOG), which fell 5% last week, rebounded strongly today as well.

In the oil patch, Cramer said leaders like Occidental Petroleum (OXY) and Devon Energy (DVN) replicated the pattern, as did the leading bank stocks.

Cramer said the markets were not up today on the heels of the consumer confidence number. He said that once all of the market leaders had completed their pullback, the markets were ready to head higher.

Cramer told investors they need to run with the bulls, not away from them. He said to remember days like today when the next 5% to 10% pullback strikes.

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