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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

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



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 - Get Report), 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.

2 of 4

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
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!
SYM TRADE IT LAST %CHG
BAC $16.00 1.01%
BBBY $74.39 0.04%
SBUX $93.63 0.61%
WOR $26.51 -0.60%
AAPL $126.41 -1.66%

Markets

DOW 18,135.72 +38.82 0.21%
S&P 500 2,101.04 +2.51 0.12%
NASDAQ 4,982.8090 +15.6680 0.32%

Partners Compare Online Brokers

Free Reports

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