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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Cramer's 'Mad Money' Recap: Dicey Market (Final)

Stocks in this article: PNRA CHK ECA YELP ZNGA

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 TheStreet.com.


NEW YORK ( TheStreet) -- With markets down 3% from their highs, Jim Cramer told his "Mad Money" TV show viewers on Tuesday that it's all right to take some profits, trim back some positions and wait for signs that the markets are improving before buying in.

He said that the markets have changed for the worse since last week and investors need to adjust accordingly.

Cramer said he had no idea last week that tensions with Iran could worsen, Greece could inch even closer to default and China could slow down even more, but indeed, all three of these events have happened.

Cramer said he's now more skeptical of a peaceful solution between Iran and Israel, and that could send oil prices to all-time highs and dent corporate earnings. He said the markets aren't equipped for a full-on gas crisis.

Then there's Greece, an issue we thought was put to rest, but is once again back on the table. Cramer called the situation "pathetic" and said investors need to watch gold prices, via the SPDR Gold Shares (GLD), and the Currency Shares Euro Trust (FXE), to quantify the effects of the lingering debt crisis on U.S. stocks.

Finally, there's China. Cramer said he still thinks China's economy is slowing, not crashing, but with emerging markets across the board feeling headwinds, investors need to keep a close eye abroad.

All of these things should just cause a market pause, or even a modest reversal, said Cramer, but if any of the three take a turn for the worse, then stocks will quickly become more expensive than we previously thought. That's why he advised raising cash and waiting for a better entry point.

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!

Markets

DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

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