This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Cramer's 'Mad Money' Recap: Profiting From Panic

Turning to the topic of increased competition from rail lines, Ebel said that while rail is a terrific interim solution, over the long term shipping oil and gas by pipeline is the safest and most economical way to go.

Ebel also commented on the continued delays in building the Keystone XL pipeline from Canada into the heart of the U.S. He still feels the pipeline will get built eventually, but is less optimistic. "It's not 90%-guaranteed anymore," he conceded.

Finally, when asked about natural gas liquids like propane and ethane, Ebel said those commodities will be rangebound for the next several years as new plants are built to process the increased supply. Until then, he said, more and more of those liquids will be exported.

Cramer continued his support for Spectra Energy, both the company and the MLP.

Off the Charts

In the "Off The Charts" segment, Cramer went head to head with colleague Mark Sebastian over the chart of CBOE Volatility Index (VIX), commonly known as the VIX, a measure of the volatility, or fear, in the markets at large.

According to Sebastian's research, looking at the VIX in isolation will do little for investors, but when comparing it to the performance of the S&P 500 some patterns begin to emerge that can save investors a lot of money. In particular, Sebastian noted that before the market's declines in both 2010 and 2011, the S&P and the VIX displayed identical patterns.

Sebastian said that just before the flash crash in April 2010, the S&P had begun to trade sideways, making a series of lower lows; at the same time, the VIX began to surge higher. Immediately after, the markets fell, eventually to a level where the VIX began to stabilize, which signaled the time to buy back in.

July 2011 displayed the same pattern, with sideways market action, followed by an uptick in the VIX, then a market sell off, eventually leading to the VIX stabilizing, which signaled the bottom.

Sebastian's research displayed the same pattern in today's markets since April, with the S&P hovering and the VIX beginning to uptick.

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 17,810.06 +91.06 0.51%
S&P 500 2,063.50 +10.75 0.52%
NASDAQ 4,712.97 +11.1030 0.24%

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