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

Cramer's 'Mad Money' Recap: Misguided Market Notions (Final)

Search Jim Cramer's Mad Money trading recommendations using our exclusive Mad Money Stock Screener and watch Jim Cramer's Mad Money Post Game video exclusively on

NEW YORK ( TheStreet) -- "The sky better fall real soon," Jim Cramer told his his "Mad Money" TV show viewers on Wednesday, poking at the bears after stocks rose for a third straight session. He added that, at this pace, the market is "liable to break out to new highs."

Cramer proceeded to "call out concepts" that he believes have bedeviled stocks in the past two months, and get in the way of investors making solid stock picks. The first notion he questioned was the idea that Greece was ever going to be allowed to default, saying the European Union and International Monetary Fund had the situation in hand all along. He called the protests over the past few days "non-confrontational" and "anemic."

Cramer next said the idea that housing will never come back is being undercut by the most recent data, and poked holes in the media's reference of the risk trade, saying this isn't language that hedge fund managers actually use, adding he should know, "I'm from that world."

He called the idea of a so-called risk trade influencing the markets a "total canard" and said it's of no value at all. His take was that cyclicals are simply being traded out for staples.

Next he assailed the idea that only improved employment numbers can bring the consumer back, noting that gas prices are a factor and that most people still have jobs. He also said QE2 is not the main concern of a stock trader, and that stock traders should be more concerned with earnings. And finally, he took issue with the notion that stocks trade in lockstep with other markets.

He advised investors to look at what helps stocks, datapoints like machine orders and retail sales, and mentioned a number of companies, including Honeywell (HON) and IBM which he said will execute.

Cramer advised investors to make sure they understand the difference between worries that affect stocks and those that impact countries.

A question from a viewer about Bank of America (BAC) was next, and Cramer said the stock looks okay, not great, after reaching an $8.5 billion settlement on mortgage-backed securities that went bad earlier on Wednesday. He noted the stock is one he owns for his charitable trust, Action Alerts PLUS , and said he's "stuck in it" now, and that he likes the regional banks better.

Cramer was also asked by a viewer about the potential for a merger between CenturyLink (CTL) and Sprint (S) but he dismissed the idea, saying the companies are too different.
1 of 3

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
GMCR $91.67 -0.30%
ESV $11.63 0.00%
HSY $91.66 0.00%
ILMN $135.75 0.00%
NRP $13.20 0.00%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs