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: How Stupid Can This Market Be?

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


NEW YORK (TheStreet) -- Can the market honestly be this stupid? That was the question Jim Cramer asked on Mad Money Wednesday after the markets once again rallied on an uptick in bond interest rates.

Cramer called this new relationship between bonds and stocks "moronic," saying higher interest rates are bad for consumers and bad for the markets, not the other way around. Yet, those who fear recession continue to think low interest rates will take us there and thus were celebrating on today's rise in rates.

Just as the markets took its cues Tuesday from the weak sales of Staples (SPLS) and Dick's Sporting Goods (DKS), today, as if with amnesia, the markets celebrated strong earnings from Tiffany (TIF) and Target (TGT).

Cramer said there's simply no data suggesting that a recession, or even a slowdown, is imminent. Lowe's (LOW) confirmed what Home Depot (HD) said earlier this week -- sales have been robust in May, and that's a good sign for all.

Cramer said the bears will eventually be trampled by the bulls. Until then, more upside-down days like today are likely.

Spectacular Shale

In what has become one of the most amazing moves he's ever seen, Cramer said the North American energy revolution continues to deliver. Fueled by rising oil prices and perpetually rising production, the oil shale renaissance has been nothing less than spectacular.

Oil shale drilling has become more profitable than even the industry could have imagined just two years ago, Cramer continued. While it may only cost $2.5 million to drill a conventional oil well, the $7.5 million price tag of a horizontal well is averaging $8.4 million in cash flows in just its first year alone.

Cramer said EOG Resources (EOG) and Anadarko Petroleum (APC), a stock he owns for his charitable trust, Action Alerts PLUS, remain his two favorites among the group. Anadarko in particular, he noted, is worth at least $120 a share on its production growth alone. The company is also a ripe takeover target for larger drillers.

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
AL $38.32 0.00%
GRUB $40.26 0.00%
AAPL $132.54 0.00%
FB $80.54 0.00%
GOOG $540.11 0.00%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs