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
TheStreet Open House

Jim Cramer's 'Mad Money' Recap: Silver Lining Playbook

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


NEW YORK (TheStreet) -- The markets are a healthier place today, even though most investors lost money, Jim Cramer said on "Mad Money" Tuesday after a down day on Wall Street. Cramer said the markets saw weakness in the industrials, oils, autos and the banks, but that doesn't mean there isn't a silver lining.

For weeks, Cramer has been preaching the notion of "froth," stocks and sectors that have been going up too far too fast on hopes, dreams and speculation that have nothing to do with any traditional valuation metrics. A little froth is OK, said Cramer, but in the case of the clean energy stocks, these names just kept rising sharply, day after day, on absolutely no news.

That's why it was refreshing to see names such as Plug Power (PLUG) drop 41%, with Ballard Power Systems (BLPD) and FuelCell Energy (FCEL) also down sharply, Cramer continued. Tuesday's decline was rough for those who owned shares in these names, but it's just what the market needed to reset to normal levels.

The same can be said for Fannie Mae (FNMA) and Freddie Mac (FMCC), which also suffer big losses on the day.

Then there's Tesla Motors (TSLA), the cult stock that was soaring on the hopes and dreams of what the company might be become, far from where it actually is today. "Hope should never be part of the equation," Cramer reminded viewers.

That's why, despite the losses, the market is healthier today than it was yesterday, Cramer concluded.

Executive Decision: Michael Kneeland

For his "Executive Decision" segment, Cramer sat down with Michael Kneeland, president and CEO of United Rentals (URI), a company that rents nearly 400,000 pieces of equipment to industries across America. Shares of United Rentals are up a solid 51% since Cramer last checked in back in mid-October.

Kneeland is very bullish on his company's outlook and the outlook for the American economy. He said there are plenty of ways for United Rentals to expand because residential and nonresidential construction are picking up along with oil and gas providing our economy with a new growth engine.

Kneeland said United Rentals' customers seem to agree, with 98% of core customers saying they expect next year to be better than last year.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 17,074.24 -98.44 -0.57%
S&P 500 1,985.76 -8.53 -0.43%
NASDAQ 4,513.1740 -14.5150 -0.32%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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