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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Jim Cramer's 'Mad Money' Recap: Next Week's Game Plan

"The selling isn't finished," Cramer continued. Many insiders with locked-up shares are now in these names are now shorting other similar stocks as a hedge against their own. This weird yet common practice happens all the time and only puts more pressure on already struggling stocks.

Cramer said the the software-as-a-service, or SaaS, stocks should be renamed software-as-a-disservice to your portfolio, which would give them the appropriate acronym SaaD.

Follow the Money

Money is not leaving this market, it's just finding a better home, Cramer told viewers as he commented on the rotation out of the momentum names and into more traditional blue-chip stocks.

Cramer likened today's markets to those in March 2000, when money flooded out of the profitless dot-com names and into value names that reward shareholders with buybacks, dividends and acquisitions. Today that same pattern is happening, Cramer continued, as investors leave any stock that's valued by sales instead of earnings.

Stocks like Alcoa (AA) and PPG (PPG) have held up well in this selloff, Cramer noted, as the markets reward any company with real profits that's willing to return those profits to shareholders. That's why Apple (AAPL), an Action Alerts PLUS name, soared, while Amazon.com (AMZN) tanked.

Make no mistake, there's more pain to come in these momentum stocks, Cramer concluded, but those that care about their shareholders will reap the rewards.

Cramer's Playbook

For the next installment of "Cramer's Playbook," Cramer shared his many years of investing wisdom to answer the question of whether a traditional or Roth IRA is the way to go for someone in the 28% tax bracket.

Cramer explained that with a traditional IRA you contribute pre-tax income, then pay taxes when you withdraw the funds in retirement. Roth IRAs work the opposite: You contribute with after-tax income, then never have to worry about taxes again.

2 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 17,113.54 +61.81 0.36%
S&P 500 1,983.53 +9.90 0.50%
NASDAQ 4,456.0160 +31.3120 0.71%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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