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: Watch Your Back

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

NEW YORK (TheStreet) -- Don't let your guard down after today's rally, Jim Cramer told his Mad Money viewers Monday. Cramer said the markets still have a big problem to contend with, and it's not Argentina or the Federal Reserve.

Read More: Warren Buffett’s Berkshire Hathaway Has the Most Cash in America

The pundits have many theories for last week's market decline, Cramer told viewers, but the real reason for the market's turmoil remains Russia. He called Russia the "hidden bear" of the stock market and one that's not talked about enough.

Cramer said the market's troubles all began after the Malaysian Airlines flight 17 was shot down over Ukraine. The tragedy was called a "game-changing event" in one company's conference call as both sanctions and increased tensions in the region could easily send all of Europe back into recession.

Russia could also turn off the natural gas supply to Europe, Cramer explained, and that's something global companies couldn't withstand. The conflict is also taking its toll on the airlines, with a survey pointing out that 36% of travelers are now afraid to fly internationally.

That's why Cramer said investors need to keep a close eye on their stocks. The market could once again turn on a dime if more news from Russia hits the headlines.

Executive Decision: Sandy Cutler

For his "Executive Decision" segment, Cramer  spoke with Sandy Cutler, chairman and CEO of Eaton (ETN), a stock which Cramer owns for his charitable trust, Action Alerts PLUS. In mid-July, Eaton lowered earnings estimates, a move that garnered three analyst downgrades in a single day.

Cutler said that Eaton always tries to be transparent for its shareholders but admitted that his company has been involved in some complicated transactions that have been difficult for investors to digest.

For instance, the company did look into the possibility of spinning off its vehicle divisions but discovered it is not allowed to do a tax-free spin off for five years since the acquisition of Cooper Industries. Cramer said Eaton never had any intent to do such a spinoff, but did the homework at the urging of shareholders.

Cutler clarified that Eaton was able to hit its revenue targets, exceeded earnings by 1 cent a share, settled some legal issues and sold two of its aerospace businesses, all while continuing to integrate Cooper Industries. All of those points, he said, made for a complicated quarter.

Read More: Dodge to Tesla: Eat Your Heart Out

Cutler said he sees positive trends for the second half of 2014 and remains confident in the synergies from Cooper.

Cramer, on the other hand, said Eaton remains a company that's difficult to get your arms around.

1 of 3

Select the service that is right for you!

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 17,294.03 +28.04 0.16%
S&P 500 2,010.58 -0.78 -0.04%
NASDAQ 4,576.5420 -16.8830 -0.37%

Brokerage Partners

Rates from

  • 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