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: The Market's New Reality

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


NEW YORK (TheStreet) -- Why isn't there more selling in the market? That was the question Jim Cramer posited to his Mad Money viewers Wednesday.

His answer? Because too many bad things just aren't happening.

In a rare case of "everything that can go wrong just isn't," Cramer said the markets are simply adapting to the new realities and are focusing on the positive instead of the negative.

Cramer noted the markets have lived in fear for years that when the Federal Reserve began tapering its bond buying program the market would collapse. Yet, now that tapering has begun interest rates are heading lower, not higher.

Then there are the earnings. Everyone has been expecting bad news -- yet, report after report, companies like Facebook (FB) and Apple (AAPL), stocks Cramer owns for his charitable trust, Action Alerts PLUS, have surprised to the upside.

Cramer said where there is weakness in the markets, there's no longer any negative "pin action" taking the entire market with it. Some sectors, like the transports, oils and retail, have shown surprising strength of late.

Even the deadly initial public offering market has been tapering, allowing demand to catch up with torrent of new offerings. Cramer said that IPO tapering, plus rising corporate dividends, are all helping to send the markets higher because all of the bad things we've all been fretting about are turning out to be no big deal after all.

Unlocking Value

Sometimes companies need a little prodding to unlock value, Cramer told viewers, and there's no better way to light a fire under management than with an activist investor.

Cramer said that he's a fan of anything that legally moves stocks higher. Activist investors including Bill Ackman, Nelson Peltz and Carl Icahn all have great track records for spurring companies to do the right thing and unlock value for their shareholders -- whether that's by making acquisitions, breaking up or simply returning more capital to shareholders via dividends or stock buyback programs.

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