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

Jim Cramer's 'Mad Money' Recap: Take Profits and Go Home

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

NEW YORK (TheStreet) -- Portfolio managers are locking in their gains and heading to the movies, Jim Cramer said on "Mad Money" Thursday as he attempted to explain the real reasons behind the late-day selloffs the markets have been seeing.

Cramer recalled when, as a hedge fund manager back in 1993, he found himself beating the S&P 500 by almost double for the year. By the time December rolled around, the only prudent thing to do was sell everything and go home, he explained. Continuing to trade would only risk losing those spectacular gains.

That's what many professional money managers are doing today, just biding their time, day trading on the momentum names and selling everything by the close, said Cramer -- locking in their gains, tweaking their positions and making sure their profits look just right for Jan 1.

Must Read: Jim Cramer's 'Mad Money' Recap: Bad Leaders Make Bad Markets

Cramer said there's only one potentially big bad event between now and the end of the year and that's the Federal Reserve meeting next week. But with a looming budget deal in Washington, even the Fed news may be met with a yawn. Investors can still buy some of the long-term winners, such as Home Depot (HD), which he featured on last night's show. but outside of those, there might not be too many exciting events over the next few weeks.

Adoration Runs Deep

Investors betting against the stocks the markets love are losing fortunes, Cramer told his viewers. Shares of Twitter (TWTR), Tesla Motors (TSLA), Netflix (NFLX) and (AMZN) just won't quit heading higher.

Cramer said the love that investors feel for these stocks is unconditional and the adoration runs very deep. Tesla may sell as many cars in a quarter as Ford (F) does in a day, but that doesn't seem to matter. Amazon may not ever turn a profit, but that's OK, too, as long as it keeps showing off its aerial drones.

Netflix may pay a ton for new content and investors don't even bet an eye -- in the end, Netflix will be the one with the hot new content everyone wants to watch. Then there's Twitter. People love to tweet, said Cramer, and that makes them love to buy Twitter and then tweet about buying Twitter.

Cramer said when it comes to these "cult" stocks, investors should never bet against the love.

Executive Decision: Terry Lundgren

For his "Executive Decision" segment, Cramer sat down on location with Terry Lundgren, chairman, president and CEO of Macy's (M - Get Report), at the company's flagship store in New York City. Shares of Macy's, a holding in Cramer's charitable portfolio, Action Alerts PLUS, are up 32% in 2013 and the company last delivered an eight-cent-a-share earnings beat on a 3.5% rise in same-store sales.

1 of 3

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
IGT $17.56 1.80%
M $38.68 -2.10%
AAPL $94.30 -0.92%
FB $118.08 0.55%
GOOG $695.81 0.50%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.16 -12.21 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs