Bizarrely Bullish: Cramer's 'Mad Money' Recap (Tuesday 11/3/20)

Last week's weakness gave way to relief and a rally on Election Day, Jim Cramer says.
Author:
Updated:
Original:

Tuesday, the stock market told investors to "don't worry, be happy," Jim Cramer told his Mad Money viewers. That's because no matter who wins the presidential election, your portfolio is going to be just fine.

Cramer listed several reasons for Tuesday's strong market rally. For one thing, investors are breathing a sigh of relief that the most contentious election in recent memory is finally winding to a close. There are glimmers of hope for an orderly transition of power if Joe Biden wins and hope for a second round of economic stimulus sometime between now and January.

But mainly, Cramer said, investors are responding to the fact that we saw weakness in stocks last week, leaving opportunities for this week. We are also seeing strength in the economy, with housing and autos leading the way. That's good news for a host of industries, from materials to the railroads.

The Dow Jones Industrial Average finished up 555 points Tuesday, or 2.06%, to 27,480, the S&P 500 gained 1.78% and the Nasdaq rose 1.85%. At one point Tuesday the S&P 500 had risen 2.4%, its best one-day performance since June. Financial, industrial and tech stocks were the leading gainers Tuesday. 

As for the results of the election, Cramer said if Trump wins, we'll be in for more of the status quo, which has been pretty good for the stock market. However, if Biden wins, we'll likely see more trade and more immigration, and that will lead to more economic activity. So no matter who prevails, your portfolio is likely intact.

Cramer and the AAP team are looking at everything from earnings and tariffs to the Federal Reserve. Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts Plus.

Don’t miss Cramer’s best, every day, with fast, actionable strategies: StreetLightning.

Your Money, Your Vote

In a special Your Money, Your Vote segment, Cramer took calls from viewers. The first caller took profits in his portfolio and is now facing capital gains taxes. Cramer said that discipline always trumps conviction and locking in gains is always prudent, even if it means paying a little more to Uncle Sam.

When asked about Teladoc  (TDOC) - Get Report, Cramer said the merger with Livongo Health  (LVGO) - Get Report is a game changer and he still recommends it.

Off the Charts: Gold

In the "Off The Charts" segment, Cramer checked in with colleague Carolyn Boroden over the direction of gold in these uncertain times.

Boroden was optimistic on the outlook for gold. She noted the precious metal's weekly chart has a bullish pattern of higher highs and lows up until its recent weakness. She saw a floor of support between $1,827 and $1,853 and maintained a price target of $2,153 an ounce.

Turning to the daily chart, Boroden correctly predicted gold's October lows with a convergence of Fibonacci timing cycles. She saw several support levels between $1,906 and $1,939, which signaled to her that gold has a lot more room to run if it can stay above these levels.

Cramer agreed with Boroden's outlook, reiterating his recommendation of the SPDR Gold Shares  (GLD) - Get Report and Barrick Gold  (GOLD) - Get Report.

Executive Decision: ThermoFisher Scientific

In his first "Executive Decision" segment, Cramer spoke with Marc Casper, chairman, president and CEO of ThermoFisher Scientific  (TMO) - Get Report, the life sciences company which just posted a $1.30 earnings beat that sent shares up another 2.2% by the close.

Casper credited ThermoFisher's 80,000 employees for their strong performance this quarter. He said they were able to repurpose their PCR testing machine for COVID-19 in record time, ramping production of test kits from zero to 20 million tests per week.

PCR testing is the gold standard of testing, Casper said, and ThermoFisher continues to make strides in areas like pool testing to help deliver reliable results even faster with an incredibly automated process.

When asked about his views on the election, Casper noted that ThermoFisher's mission is to support governments, hospitals, labs and doctors in any way they can, regardless of who's in the White House. The company continues to support vaccine makers and will play a pivotal role with whoever's vaccines prove to be successful.

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.

Busting 5 Election Myths

In his No-Huddle Offense segment, Cramer outlines the five biggest misconceptions when it comes to elections and your money.

The first misconception is that the Democrats will slash the defense budget. In reality, Cramer said Democrats love spending on technology and that's good news for L3Harris  (LHX) - Get Report and Raytheon  (RTX) - Get Report.

The second misconception: A blue wave will mean big changes for healthcare. Cramer said we've heard that before, but nothing ever happens. He said to buy Centene  (CNC) - Get Report and Bristol Myers Squibb  (BMY) - Get Report.

Third, Biden is bad for the oil business. Cramer said in reality, Biden is bad for drilling, but that's great news for the rest of the oil industry that will benefit from higher oil prices.

Next, it's a misconception that the banks would be worse off with Biden. But the banks have struggled under Trump, which is why Cramer suggested buying Goldman Sachs  (GS) - Get Report and Morgan Stanley  (MS) - Get Report.

The final misconception, the Democrats will break up big tech. Cramer said in some cases, like Alphabet  (GOOGL) - Get Report, the company would be worth more as separate companies. But overall, he expects big tech to stay exactly how it is no matter who wins.

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:

Fisker  (FSR) - Get Report: "I think it's a decent speculation, but it's going to be a few years before they have a product to sell."

NovoCure  (NVCR) - Get Report: "I'm a total believer in the technology. I think this is a decent level to buy."

Sunrun  (RUN) - Get Report: "I always default to First Solar  (FSLR) - Get Report."

Big Lots  (BIG) - Get Report: "I'm not a big fan but there's some momentum there."

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

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.

At the time of publication, Cramer's Action Alerts PLUS had a position in BMY, GS, GOOGL.