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
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Jim Cramer's 'Mad Money' Recap: Where's the Rally?

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


NEW YORK (TheStreet) -- The selling is no longer contained to just the high-flyers, Jim Cramer said on Mad Money Monday after a big down day on Wall Street. Cramer said the economy may be getting better but the markets sure aren't showing it.

Despite the strength in many of the recession stocks today, Cramer said our economy is most certainly not slipping back into a recession. Housing and auto sales are just too strong for that, he continued. That makes the rally in bond prices, which is pushing interest rates lower, so perplexing.

What's likely happening is what Cramer called "money-manager group think," which presumes that if interest rates are going lower then there is less demand for money. That, in turn, means less business, lower earnings and big disappointments down the road. Thus, money managers are selling now to avoid the pain they fear will be coming as earnings season kicks off later this week.

This is indeed confusing, Cramer continued -- everyone assumed a reduction in Federal Reserve bond buying would cause rates to spike up, not fall even lower. Nonetheless, the safe-haven stocks have gotten even safer. Investors are clamoring for stocks like Procter & Gamble (PG), a stock Cramer owns for his charitable trust, Action Alerts PLUS, which offers safety and a big dividend yield that got boosted 7% just today.

What comes next? Cramer told viewers not to get too negative because the selling will subside eventually, and things really are better than they appear.

Executive Decision: James Hughes

For his "Executive Decision" segment, Cramer sat down with James Hughes, CEO of First Solar (FSLR), the best-of-breed solar solutions company that currently trades at just 14.7 times earnings.

Hughes said the First Solar of today is not the same company from a few years ago. He said his company is now vertically integrated, offering everything from design to financing for solar projects, which has allowed it to broaden its customer base significantly.

First Solar has also invested heavily in technology, recently setting a world record for solar module efficiency in its labs. Hughes said in just a few years, the company will have modules hitting 20% efficiency, making them competitive with fossil fuels, even without government subsidies.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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!

Markets

DOW 17,827.75 +12.81 0.07%
S&P 500 2,072.83 +5.80 0.28%
NASDAQ 4,787.3170 +29.0650 0.61%

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