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Jim Cramer's 'Mad Money' Recap: The Machines Are Ruining the Market


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NEW YORK ( TheStreet) -- The machines were back in charge today, Jim Cramer said on  Mad Money  Wednesday. Yes, program trading was once again ignoring all the good news in our economy and focusing instead on all the bad, Cramer said. But that's great news for all those individual investors who may have missed the bottom.

Cramer explained that oil shedding another $2 a barrel, sinking to its lowest level since 2012, is great news for consumers, but for big money managers, it signals that the global economy is stalling and stocks are in trouble.

Must Read: 10 Stocks Billionaire John Paulson Loves in 2014

But despite the fact that our stock market is made up thousands of individual companies, some of which are actually doing quite well, these same fund managers tell their machines to sell, sell, sell the whole market using exchange-traded funds and other baskets of stocks.

So while some oil stocks are taking on too much risk given oil's continued slide, Cramer said the fact remains that cheap oil is a big win for airlines, restaurants and retail stocks, along with anyone who uses large amounts of commodities or ships things great distances.

Cramer said he'd circle back to winners like Honeywell (HON) or Dow Chemical (DOW) , a stock which Cramer owns for his charitable trust, Action Alerts PLUS. Cramer also gave the nod to some of the better oil stocks, like EOG Resources (EOG) , which should be finding its bottom soon.

Moronic Trading

Sometimes the market gets it wrong, Cramer reminded viewers, which is why investors should never trust the market to do the right thing. That was certainly the case today as Cramer highlighted just a few cases of what he deemed "moronic trading."

First up: Chipotle Mexican Grill (CMG) , a company that delivered a mind-blowing 19.8% increase in same-store sales but saw its stock plummet throughout the day as investors fretted over the company's tepid forecasts. Really? Cramer said Chipotle would be nuts not to guide expectations lower. No one can keep growing at 19%.

Cramer said Chipotle's only problem remains that it's too popular and can't get people through the line fast enough. Don't blink, he concluded, just buy it.

Then there's Boeing (BA) , another stock that beat the estimates, but after a brief rally in the pre-market it sold off through the day. Cramer said this stock remains a buy under $120 a share.

Other notable mentions included Dow Chemical, Google (GOOGL) and Apple (AAPL) , all three of which are Action Alerts PLUS favorites.

Must Read: Looking for Solid Dividends? 5 Energy Stocks to Consider

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