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Jim Cramer's 'Mad Money' Recap: The Market's Message

Stocks in this article: CELG JNJ MCK PAA WOR CMI SBUX NYT ANR IRBT SBUX PEP KO WMF CMG WFM CMG LNKD BAC BBBY



Cramer said he's encouraged by the many biotechs that moved into the green today, as well as LinkedIn's (LNKD) surge in the face of a downgrade, a positive sign for both the company and the sector as a whole.

Off the Charts

Cramer thinks 2014 is going to be a banner year for Bank of America (BAC), which will benefit from rising interest rates and has enormous room to run with most of its litigation behind it. A lot of big banks have already rebounded hard, and the same is imminent for Bank of America, another AAP holding.

Cramer introduced a chart by RealMoney's Tim Collins to dig deeper. Collins' chart is so positive, it's like bear repellent for short-sellers, Cramer said. Who wants to pick a fight with a raging bull?

Bank of America is already up 6% this year, on the heels of a 36.48% return in 2013. Don't get too greedy about waiting for a pullback. You might get some small decline, but Collins doesn't expect much of a drop.  The stock is coming out of a nice period of consolidation after a nice push in November. If the current run is the same size as November's $2 per share rise, Collins thinks the stock is headed to at least $17.75 per share near-term, up from $16.50 at today's close.

Ideally, Collins would like to see a pullback to $16.10 or $16.25, but there are plenty of signals that Bank of America could be a buy at current levels, Cramer said.

While Bank of America's accumulation-distribution line has been trending lower, Cramer said, the technical analyst isn't concerned. Each time in recent months that the company's stock has hit a floor of support, it has rebounded and been a buy, a rebound we're seeing in the first few trading days of 2014 and that could continue unabated for a few weeks.

Since the beginning of 2013, Bank of America has had a strong and steady upward channel, about as textbook a bullish trend as they come, Cramer said. Every accumulation-distribution line drop has been met with a rebound, providing a read on what the big institutional investors are doing.

Stick to Your Guns

Ready to cut and run? If you've put a lot of time and research into a stock buy, it's important to stick to your guns and don't back down, Cramer said. Last year, Cramer heard many calls to pull out of the market, but the S&P 500 finished up 29.6% all told. Selling into weakness would've cost you some amazing gains.

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