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: A Rally Based on Facts

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

NEW YORK ( TheStreet) -- Is the market's recent surge higher based solely on hope? Jim Cramer told his "Mad Money" TV show viewers Monday that he's not buying that explanation. Cramer said this rally is based on facts, which is why he no longer fears the future.

Make no mistake, there are plenty of sectors that are relying on hope, said Cramer, but they're easy to distinguish from the good ones.

Obviously, the international banks are trading on hope, he said, hope that the Europeans will finally save their economies. That's why Cramer said he's not a fan of these banks, other than J.P. Morgan Chase (JPM), a stock he owns for his charitable trust, Action Alerts PLUS .

Cramer said the industrials are hopeful the Chinese economy will recover, which is why stocks like Freeport McMoRan (FCX), Caterpillar (CAT) and 3M (MMM) trade higher on every bit of bad news. Surely the Chinese will have to do something eventually, won't they?

Other sectors, like the natural gas stocks and even the transports, like FedEx (FDX), are also hopeful that the world's economies will begin to gain steam.

However, there are plenty of sectors moving on cold, hard facts, like the fact that bank CDs and bonds pay next to nothing -- which makes the likes of Verizon (VZ), Kraft (KFT) and Home Depot (HD), with their bountiful dividend yields, very attractive.

Retail is also on fire, said Cramer, just look at Costco (COST) or Target (TGT) or PVH Corp (PVH). Housing is also strong, which we see in Owens Corning (OC), Stanley Black & Decker (SWK) and Toll Brothers (TOL).

Even in tech there is growth, noted Cramer, although it all resides with Apple (AAPL), another Action Alerts PLUS name, along with Google (GOOG) and (AMZN).

Cramer said any of these names is a good place to invest.

Breaking Up Is Great to Do

In the real world, breaking up is a miserable experience, but in the stock world, it's a glorious occasion, Cramer reminded viewers, as he featured oil and gas giant Hess (HES - Get Report) to show just what could happen if this company decided to spin off some of its assets to unlock value.
1 of 4

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
AA $11.18 0.22%
BAC $14.56 -1.56%
FIVE $41.68 -1.20%
HES $59.60 0.71%
GPS $23.17 -1.50%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs