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
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Cramer's 'Mad Money' Recap: Don't Panic

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


NEW YORK (TheStreet) -- The crisis in Cyprus is just another in a long line of European panics that likely won't amount to anything, Jim Cramer reassured his "Mad Money" TV show viewers Monday. He said the bears may once again be predicting the end of the world as we know it, but nothing could be further from the truth.

Cramer said the banking system in Cyprus is simply comical -- the regulators, or lack thereof, allowed their banks to get into such a mess in the first place. This comedy of errors is only outdone by the regulators' clueless actions in trying to remedy the situation.

But as bad as things are in the troubled island nation, there were no big runs on the banks, as many bears were calling for over the weekend. Nor were there major market selloffs. Cramer said those who insist "it could happen here" clearly have no idea how well regulated the U.S. banking system is post-2008.

"There was no panic on the floor of the [New York] exchange today," Cramer concluded, because the many positives still outweigh any negatives the continued financial problems in Europe can dish out. The bears may continue to declare that the sky is falling, but fewer and fewer investors are paying much attention with the markets just off all-time highs.

Rates Charting Higher

The charts are speaking to Cramer, and he said they're screaming that higher interest rates are coming in 2013 thanks to a stronger economy.

Cramer explained that as he studied the charts of hundreds of stocks over the weekend, he kept seeing the same pattern over and over again -- parabolic moves to the upside. That's why he hasn't been recommending buying many stocks over the past few days. Parabolic moves leave little room for error, and investors who buy into these moves are often hurt and hurt badly.

But upon further review, Cramer said he noticed the highest concentration of parabolic charts were in the banking and insurance sectors, meaning that investors are betting big that these companies will be making a lot more money in 2013 as interest rates rise and the spread between what banks charge for loans and give to depositors widens.

Stock quotes in this article: CLX, PG, PEP, LCC, DAL, HAIN, BNNY, UAL, SAVE, WBMD, WPRT, IPG, JNJ, ANGI, CCC, INTC 

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.
DOW 16,499.60 -2.05 -0.01%
S&P 500 1,875.85 +0.46 0.02%
NASDAQ 4,132.8640 +5.8970 0.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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