This Day On The Street
Continue to site right-arrow
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: A 'Hopium' Rally

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.

NEW YORK ( TheStreet) -- "Today we got a glimpse of what could happen if the European mess ever gets resolved," Jim Cramer told "Mad Money" viewers Tuesday, which ended with the major indices up for the day. "We saw how the market could easily rally to all-time highs on even a whiff of worldwide growth."

The focus is usually on what could go wrong in Europe, but today the market was focused on Greece's "vote for pain," which Cramer said would reward the country with easier credit terms. Greece sent a message to other struggling European countries that "if you do what's right for the European Union, the Union will do right for you," said Cramer.

The optimism is beyond Europe, too, with housing inflation in China "crashing down," and hopes the Federal Reserve "might have something up its sleeve to improve the U.S. economy" Wednesday, he said.

Cramer pointed to several specific examples of the effects of hope, or "hopium," as he called it." FedEx (FDX) reported an "okay number" and cut its forecast but rallied $2.50 today, and despite a number of downgrades in the industrials, stocks such as Cummins (CMI) were also higher.

In addition, Cramer said, a restoration of global growth can give us "what looks to be a bottom in the price of crude oil," sending everything from independent natural gas companies to the big oil service companies higher.

In aerospace, Honeywell (HON), Boeing (BA) and United Technologies (UTX) were all up Tuesday, and auto makers General Motors (GM) and Ford Motor (F) also rose on "hope that Europe favors growth," said Cramer.

Cramer had a word of caution for viewers, saying that without more evidence that Europe will support growth, it's likely that stock prices have risen higher than they deserve to. "Cold, hard facts don't support this run in stocks," he said, "but cold, hard facts dissolve in the face of a future that looks better."

In the Sweet Spot

Cramer encouraged viewers to retain focus on the European mess while also seeking out opportunities at home in the U.S., including speculative ideas such as BioMarin Pharmaceuticals> (BMRN), which he said was in the "sweet spot of the orphan drug business." Cramer has liked the stock since October 2010, and it's seen a 70% gain since then.

1 of 2

Select the service that is right for you!

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 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • 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