Cramer's 'Mad Money' Recap: Best-Performing Stocks
Turning to the issue of commissions paid to brokers, Smith said that currently the top brokers are producing the lion's share of business, thus commissions are higher. As sales volume increases, more brokers will enter the market and less commissions will be paid to those newer brokers, thus lowering the average.
Cramer said that with 26% of the realty market, Realogy is a pretty big player.
Off the Charts
In the "Off The Charts" segment, Cramer went head to head with colleague Carolyn Boroden over the direction of the markets.
According to Boroden's analysis, a daily chart of the S&P 500 shows the selloff may be coming to an end in just a few days. She noted floors of support between 1,615 and 1,621 as well as between 1,578 and 1,582. As long as the index holds those levels, it's likely to rebound, said Boroden. But more important than price is timing. Boroden also noted that most selloffs average 18 days in length, meaning a rally is due between this Friday and Labor Day.Looking at a chart of the Dow Jones Industrial Average showed similar patterns, with a floor at 1,560 and timing predicting a snap back before the holiday. But according to Dan Fitzpatrick, another technician who predicted more pain for the markets just last week, the S&P 500 falling below its 50-day moving average is a big bearish flag, one that confirms his thesis that the markets will remain in a trading pattern from now through the end of the year. Cramer said he views these analyses as reasons to be cautious, and to wait for more market weakness before buying into any of the stocks he mentioned at the top of the show.
Lightning RoundIn the Lightning Round, Cramer was bullish on Questcor Pharmaceuticals (QCOR), First Solar (FSLR), General Motors (GM) and Take-Two Interactive (TTWO). Cramer was bearish on Southern Copper (SCCO), SunPower (SPWR) and PBF Energy (PBF).
Am I Diversified?In the "Am I Diversified?" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets. The first portfolio included: American International Group (AIG), Corning (GLW), Royal Bank of Scotland (RBS), Sonovus (SNVS) and Facebook (FB). Cramer identified three-of-a-kind with this portfolio and said Royal Bank and Sonovus needed to be sold to make room for a drug stock and a defense stock. The second portfolio's top holdings included: OncoMed Pharmaceuticals (OMED), Bank of America (BAC), Medical Properties Trust (MPW), ChannelAdvisor (ECOM) and Google (GOOG). Cramer said Google was too similar to ChannelAdvisor and he'd sell ChannelAdvisor and pick up a food stock that offers some dividend yield.
No Huddle OffenseIn his "No Huddle Offense" segment, Cramer said there was a telling divergence in the markets today, with the consumer packaged goods stocks selling off far more than the rest of the market. Cramer said that stocks including Procter & Gamble (PG), General Mills (GIS) and Colgate-Palmolive (CL) all sold off big today, and likely aren't done going lower. These stocks are tied to the rise in interest rates, Cramer theorized, and with rates likely to tick up even further, it will put even more pressure on these consistent earners with great dividend yields. As other investments get more attractive, these stocks will be less attractive, said Cramer, and that means their stocks are likely to go nowhere. Since these companies are too big to be taken over unless they split up to unlock value, there's little management can do to change the tide. If the economy slips back into recession, then consumer stocks will be back in vogue, Cramer concluded. Barring that, there's a lot more pain ahead. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC
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