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: Economists Don't Know Stocks

Looking at a daily chart of the Powershares QQQ (QQQ) Collins noted the Nasdaq appears to be in a topping out process, with the stochastics -- a momentum indicator -- once again showing a double-dip pattern, similar to those in December and February, both of which resulted in a 3% to 5% pullback in the average. Collins thinks that with the Nasdaq trading in such a tight range, it may be poised to lose its floor of support and slide significantly lower.

The weekly chart painted a similar picture, noted Collins, with another rising wedge pattern coupled with the relative strength indicator, or RSI, signaling a bearish divergence of lower highs and lower lows.

Cramer said Collins' analysis is worrisome because it shows the money that's been flowing out of Apple may no longer be flowing into the Nasdaq at large, which means the index may not be able to hold current levels for much longer. "I don't like it when the chart is against me," Cramer concluded.

Three Cancer Fighters

For the next installment in his series of speculative biotech stocks, Cramer highlighted ImmunoGen (IMGN), Seattle Genetics (SGEN) and Onyx Pharmaceuticals (ONXX), three companies leading the fight against cancer.

Cramer said shares of ImmunoGen have doubled since he first recommended it in November 2009, but this $1.3 billion company still has a lot of room to run. The company's targeted cancer therapies are far more potent than old-line treatments.

While recent drug approvals may benefit ImmunoGen's many partners more than itself, Cramer said the approvals validate the technology and will translate into big wins for the company's many other drugs in its pipeline. He advised waiting for a pullback in the stock before buying in ahead of its April 12 analyst day.

Shares of Seattle Genetics are up 50% since Cramer got behind the stock in June 2012 and, like InnumoGen, this company also makes targeted cancer therapies. While Seattle Genetics may only have one drug on the market, it has 20 drugs in clinical trials, including four in late-stage trials. With its host of partnerships, Cramer said, Seattle Genetics will receive over $3 billion in milestone payments over the next few years to aid in the continuation of its development.

2 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!
DOW 16,380.41 +263.17 1.63%
S&P 500 1,886.76 +24.00 1.29%
NASDAQ 4,258.4380 +41.0480 0.97%

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