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
TheStreet Open House

Jim Cramer's 'Mad Money' Recap: This, Too, Shall Pass

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


NEW YORK (TheStreet) -- This, too, shall pass, Jim Cramer said on Mad Money Thursday after a big down day on Wall Street. But the questions remain: When will it pass and how low will the markets be when it does?

Cramer admitted that there's not much to like in the markets just yet because the best stocks still aren't down low enough to be attractive. Patience will be rewarded, he continued, as he offered viewers a peek into his thought process before buying for his charitable trust, Action Alerts PLUS.

Read More: 8 Stocks George Soros Is Buying in 2014

Cramer said he's looking for stocks that are down -- not down just a little, but stocks that are really down. The industrials fit that criteria, down 10%, he noted, but many of them have exposure to Russia and Europe, making them risky. One of the stocks that could be hurt most by Russia, however, is Germany's BASF, and that would be good news for the U.S.-based Dow Chemical (DOW). Cramer said Dow offers shareholders a 3% yield and has an activist investor to boot, which is why he's a buyer of Dow.

What about the financials or technology? Cramer said the financials need higher interest rates so they're off the buy list, and many of the tech stocks, like Microsoft (MSFT), just aren't down enough to be attractive.

Many food and drug stocks are also off the list after both Kellogg (K) and Kraft Foods (KRFT) reported horrible earnings.

Cramer said the oil stocks may be hurt by downgrades with oil prices plummeting; meanwhile, the restaurant and retail names have just become too dangerous to own at the moment.

Read More: Economic Growth Is Increasing but Don't Expect Stocks to Ride With It

There are the conservative stocks, like Walt Disney (DIS), Cramer concluded, but even Disney is not down enough to be attractive. That leaves only Dow Chemical, which is why that's the only stock Cramer was buying for Action Alerts PLUS so far.

Chinese Favorites

With the initial public offering of Alibaba about to once again shine the spotlight on all of the Chinese Internet stocks, Cramer circled back to his three favorites in the group, Baidu (BIDU), Vipshop (VIPS) and JD.com (JD). Cramer said these three names are legitimate, investable companies that are taking advantage of the burgeoning ecommerce market in China.

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!
DOW 16,640.56 +25.75 0.16%
S&P 500 1,947.15 +5.87 0.30%
NASDAQ 4,430.7050 +11.2270 0.25%

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