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: A Market Divided

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


NEW YORK (TheStreet) -- The market is divided into three camps, Jim Cramer said on Mad Money Wednesday. Until there's a clear winner, investors need to tread lightly.

Cramer said the first camp of investors consists of those former momentum investors who now want to leave the markets ASAP to avoid giving back all of their gains. These investors are shedding stocks like Twitter (TWTR), FireEye (FEYE) and, most recently, King Digital (KING), which declined over 13% today alone.

The second camp of investors is the data junkies, those who are solely focused on things like the latest jobs data, auto and truck sales and Federal Reserve surveys. Cramer said these investors see things as getting better, and they love stocks like the industrials and the growth oil names. These investors are responsible for the gains in Alcoa (AA) and Pioneer Natural Resources (PXD).

Must Read: Jim Cramer's 'Mad Money' Recap: Market Headwinds Getting Worse

The final investor cohort is honed in on bonds. Cramer said this "safety first" group actually has two sub-groups. The first equates low interest rates with recession and thus loves the utilities. The second sub-group is looking for income and is focused on the food and beverage names that offer big dividends.

Cramer said these three groups are duking it out every day and it's almost impossible to determine the winner ahead of time. That's why investors must use caution until a clear direction appears.

Take Whole Foods Off Your List

You can keep shopping at Whole Foods Market (WFM - Get Report) for your groceries, Cramer told viewers, but if you're shopping for Whole Foods' stock, it's probably best to wait a while.

Whole Foods is a difficult stock to gauge, said Cramer. On one hand, the company is a pioneer and the best-of-breed operator in its space. But on the other hand, the company has guided estimates lower multiple times this year, leading to a 15% haircut in its share price.

Cramer said the problem is that over time analysts will begin paying less and less for an inconsistent operator, which could lead to Whole Foods losing its 24 times multiple. The average supermarket trades at a multiple of just 16 times earnings.

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
Dividend Stock Advisor

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
SYM TRADE IT LAST %CHG
AGCO $54.90 5.10%
CLH $50.44 5.20%
WFM $36.40 -11.00%
AAPL $122.50 -0.71%
FB $95.38 0.09%

Markets

Chart of I:DJI
DOW 17,751.39 +121.12 0.69%
S&P 500 2,108.57 +15.32 0.73%
NASDAQ 5,111.7330 +22.5270 0.44%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs