Off the Charts
In this segment, Cramer went head to head with colleague Caroline Boroden over the chart of SPDR Gold Shares (GLD), an ETF that was up 10% during 2011, but is now some 30 points off its highs.
According to Boroden, the daily chart of the GLD is worrisome, with the ETF hitting a hard ceiling of resistance and a wide spread of Fibonacci levels beneath the current levels. Boroden noted that 157.53 appears to be the level that the GLD would need to cross in order for her to be bullish.
The weekly chart of the GLD confirmed this theory for Boroden, who noted that this chart displays a zig-zag pattern which could indicate a bottom forming in the index. She also mentioned that the GLD appears to be moving in waves, making the Elliott Theory, which says stocks tend to move in five-wave patterns, also a possibility as the GLD is now completing the last of its fifth wave.Turning to the fundamentals, Cramer said that every investor needs to own gold, both as insurance against uncertainty and also because the supply and demand for gold remains out of balance. He continued his support for owning the SPDR Gold Shares ETF.
Lightning RoundCramer was bullish on SandRidge Energy (SD), Alnylam Pharmaceuticals (ALNY), JB Hunt Transport Services (JBHT), Kinder Morgan Energy Partners (KMP) and Allot Communications (ALLT). Cramer was bearish on Kinder Morgan (KMI) and Research In Motion (RIMM).
Beauty of Dividend StocksIn his "No Huddle Offense" segment, Cramer answered the question, which sector will perform best in 2012? His answer, the dividend sector. Cramer explained that dividends saved the day in 2011 and that trend will continue in 2012. Dividend stocks, while boring, proved to be the most secure and the most lucrative plays out there, said Cramer. In today's market, he concluded, it pays to take less risk, not more, which is why stocks like Kinder Morgan Energy Partners (KMP), Verizon (VZ) and ConEd (ED) continue to be among the best investments. --Written by Scott Rutt in Washington, D.C. To contact the writer of this article, click here: Scott Rutt. Follow TheStreet on Twitter and become a fan on Facebook. To submit a news tip, send an email to: firstname.lastname@example.org.
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