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
TheStreet Open House

Cramer's 'Mad Money' Recap: Europe's Problems Difficult but Can Be Solved

"Everyone is supposed to win with an IPO," Cramer reminded viewers. And while everything about the Facebook IPO may have been legal, it was most certainly horrible for all involved. The deal favored the sellers over the buyers, said Cramer, and there's no denying this was a botched deal from the start.

So while Facebook and Morgan Stanley had the perfect opportunity to lure individual invests back to the stock market, they instead choose to be greedy. "Shame on them," Cramer concluded.

Off the Charts

In the "Off The Charts" segment, Cramer went head to head with colleague Tim Collins over the future direction of the markets.

Starting with a daily chart of the Standard & Poor's 500, Collins noted that over the past two months the S&P has displayed a rounded top and the dreaded cup-and-handle pattern, a bearish sign seen before declines in both 2007 and again in 2008. Based on last trends, Collins said the averages could decline 11% from current levels. But there is hope, as the S&P has been holding a floor of support, signaling that a decline can be avoided.

Using a 10-minute candlestick chart, Collins demonstrated how much of a battleground the S&P has become, with the index oscillating between its floor of support of 1,264 and a ceiling of resistance at 1,280. Today's rally bought the markets some breathing room, Collins concluded, but we're not out of the woods yet.

While the stochastics indicate the S&P is currently oversold -- having fallen too far, too fast -- Cramer warned that this alone is not a positive enough indicator to warrant any short-term buying.

Cramer's bottom line: There is still hope for the markets if they can hold current levels. If they fall much further, however, all bets are off as it will be a lot harder to claw our way back to breakeven.

Lightning Round

Here's what Cramer had to say about callers' stocks during the "Lightning Round":

Cree (CREE): "No, no, I want you out of that stock by tomorrow morning."

Fluor (FLR): "I like Fluor every much but I'm going to urge you to don't buy it right now."

2 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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 17,154.77 +123.63 0.73%
S&P 500 1,998.89 +14.76 0.74%
NASDAQ 4,544.59 +25.6880 0.57%

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