This Day On The Street
Continue to site
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

Jim Cramer's 'Mad Money' Recap: Stop Panicking

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


NEW YORK (TheStreet) -- The sky is falling! Sell everything!

That's what the markets would have you believe, Jim Cramer said on "Mad Money" Monday. He said the crisis in Ukraine is just another in a long list of foreign crises that have the markets operating on emotion instead of logic.

Cramer explained that every time a crisis breaks out the algorithms rule, and that means the S&P 500 futures get hit hard, taking the broader markets with it. More seasoned investors may recall that the 1998 Russian crisis took a toll on the markets. Today, Cramer said, there simply aren't the same linkages putting the U.S. markets at risk.

Just like previous crises in Egypt, North Korea, Cyprus, Turkey and Greece, the markets are likely to follow the same pattern. The selling begins on day one and continues throughout day two as the media turns to 24/7 coverage of the event. Beginning on day three, the smart investors begin nibbling at the stocks hardest hit. Day four, in this case, will likely be down again as investors worry about the non-farm payroll numbers on Friday.

By day five, which will be Friday, the markets will likely react to the non-farm payroll report, but then be a coiled spring, ready to snap high going into next week, Cramer said.

What to Do With Baidu

What should investors looking for growth in China do with shares of Baidu.com (BIDU - Get Report)? The answer may not be clear given that the stock received a downgrade and a price target cut from one analyst, only to receive an estimate increase from another later in the day.

Cramer said when analysts disagree, investors win because they get to hear both sides of the argument. In the case of Baidu, which just reported a two-cents-a-share earnings beat on better-than-expected revenue with raised guidance, it's hard to believe that an analyst found something not to like. But one did.

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
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
BIDU $216.90 0.00%
ISIS $66.37 0.00%
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs