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
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Cramer's 'Mad Money' Recap: Recipe for a Rally (Final)

Stocks in this article: MDVNBMYUNP

Click here for an archive of Jim Cramer's Mad Money recaps. Click here to get Jim Cramer's Mad Money Post Game video exclusively on TheStreet.com.


NEW YORK ( TheStreet) -- Taking a page from his cookbook, Jim Cramer told the viewers of his "Mad Money" TV show Tuesday that the recipe for today's market rally included four primary ingredients: Ben Bernanke, consumer confidence, housing prices, and the retail investor.

Donning a chef's hat and apron, Cramer was baking a cake to celebrate the rally. He said there's a lot to celebrate in the markets, not the least of which is Ben Bernanke.

Cramer said while he was initially a critic of the slow moving Bernanke, Cramer credited him with keeping the ATMs at our local banks full of cash and taking radical actions to stabilize the markets and our country's financial system.

Cramer Clearing House All things Cramer Mad Money Recap Trade With Cramer Free

The second point to celebrate was home prices. Cramer said he was chastised in 2007 after predicting home prices would fall significantly. He was further chastised in 2008 when he predicted a home price bottom on June 30, 2009. Yet today came news of the first month-over-month increases in home prices. Cramer said he's not worried about foreclosures or tax credits stifling the recovery in home prices because its simply cheaper to own a home than to rent one and that, he said, is all that matters.

Other reasons to celebrate, said Cramer, include the return of both consumer confidence and the retail investor. Cramer said the little guy is finally starting to put money to work in the markets again, and with consumer confidence on the mend, the rally in the markets can only continue.

Cramer said with all of these positives in the market centered around housing, he remains bullish on the banks, particularly ones that own a lot of homes, including Bank Of America (BAC), Well Fargo (WFC) and JP Morgan Chase (JPM), three stocks which Cramer owns for his charitable trust, Action Alerts PLUS .

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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!
DOW 17,817.90 +7.84 0.04%
S&P 500 2,069.41 +5.91 0.29%
NASDAQ 4,754.8920 +41.9220 0.89%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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