All About Timing: Cramer's 'Mad Money' Recap (Tuesday 3/24/20)

This bear's the worst, Jim Cramer says, and the result is a coiled spring of a market. The big question is: When?
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A market that doesn't give you a chance to get in won't give you a chance to get out when the bear returns, Jim Cramer cautioned his Mad Money viewers Tuesday, after one of the strongest rallies the markets have seen in decades.

Cramer said that sustainable rallies build slowly over time. Unsustainable rallies take off like a rocket and often explode in orbit. 

Cramer said Tuesday reminded him of the market rally in 2008, after the bank bailout was approved by Congress. That rally was short lived. Stocks were extremely oversold and due for a snapback rally like we saw today.

However, despite the President's assertion he would like our economy to reopen as early as Easter Sunday, April 12, in reality many things need to happen first.

Before our economy can restart, we need the pandemic under control, Cramer explained. That means test kits and ventilators and enough beds for everyone who's sick. That means containment for those with the virus and new infections on the decline and nearing zero. Can all of that happen in a little over two weeks? Not likely.

Cramer said there will come a time for a sustainable rally in stocks. Now is not that time.

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Executive Decision: Skyworks Solutions

For his "Executive Decision" segment, Cramer spoke with Liam Griffin, CEO of Skyworks Solutions  (SWKS) - Get Report, the semiconductor maker on the front lines of the coming 5G wireless rollout. 

Griffin said while our networks have performed pretty well in our new stay-at-home world, there's still a long way to go. There's a digital traffic jam, he said, and the only way to clear it is with 5G and the latest wifi standards.

When asked about the timing of 5G, Griffin explained that the technology isn't here yet, despite what many carriers will tell you. The rollout has been disrupted due to the pandemic, but it's still on track to appear in a meaningful way in the back half of the year. 5G will be a multi-year, dramatic change in not only speeds, but also in what's possible.

Regarding the Covid-19 outbreak, Griffin said that Skyworks Solutions operations in China are returning to normal, while those here in the U.S. are moving toward social distancing. The company's strength is in global operations, Griffin added, and he said it won't be long before they are working at capacity in all of their facilities.

On Real Money, Cramer keys in on the companies and CEOs he knows best. Get more of his insights with a free trial subscription to Real Money.

Off the Charts

In the "Off The Charts" segment, Cramer checked in with colleague Tom Demark for a technical read on the direction of the market. Was Tuesday a turning point for stocks? Demark wasn't so sure. 

Demark noted that when stocks rally on good news, that's usually not true demand, but rather short sellers closing out their positions. According to Demark's analysis, the recent market declines look a lot like historical declines, including the debt ceiling debacle of 2011.

In all of those cases, the markets bottomed, only to see a short snap-back rally before retesting their lows. Demark expected the current market to retest its lows as well.

Cramer said Demark's analysis makes sense, as we most certainly haven't seen the peak in new coronavirus cases yet. The market is likely to decline again on any spike in new cases or the absence of any serious decline in new cases, which would signal our quarantine lasting for longer than many people expect.

Off the Tape: Bluescape

Is the stay-at-home economy here to stay? In his "Off The Tape" segment, Cramer spoke with Peter Jackson, CEO of the privately-held Bluescape, an online collaboration platform that may be better than being with your coworkers in person. 

Jackson said that every business strives to have employees all on the same page, but in most cases, there are multiple files and documents floating around and meetings are simply one person talking while all the rest listen. Bluescape is different. Its secure platform allows everyone to work on the same project at the same time.

Bluescape is used by every major studio in Hollywood, Jackson said, because each production has dozens of different departments all working to complete their project as efficiently as possible. 

Health Is Wealth

In his "No-Huddle Offense" segment, Cramer said social distancing may be bad for business, but everyone getting this coronavirus is even worse. 

Cramer said in order to beat this virus once and for all, we need a national lockdown for 30 days. We also need to stockpile hydroxychloroquine, a drug which seems to help those with Covid-19. Cramer also wants to see more executives pledge to keep everyone on their payroll for 30 days while we wait out the virus. He also said we need more ventilators to help keep people alive.

Finally, Cramer said he wants to see out military involved in building hospitals, getting supplies to where they need to go and enforce social distancing.

Only if we get serious can we beat this virus, Cramer concluded, but that takes bold actions and serious leadership.

Lightning Round

Here's what Jim Cramer had to say about some of the stocks that callers offered up during the Mad Money Lightning Round Tuesday evening: 

Johnson & Johnson  (JNJ) - Get Report: "You buy J&J. They're among the best in America."

Delta Air Lines  (DAL) - Get Report: "I'm not a fan of the airlines. Right now, they need people on their planes and they don't have them."

L Brands  (LB) - Get Report: "The mall is going to be the last place to recover. I'd look at Williams-Sonoma  (WSM) - Get Report."

Iron Mountain  (IRM) - Get Report: "I like Iron Mountain."

Owens & Minor  (OMI) - Get Report: "That's the kind of speculation I like."

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At the time of publication, Cramer's Action Alerts PLUS had position in JNJ.