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After today's 290-point sell-off in the markets, Jim Cramer simply said "ouch" to the viewers of his "Mad Money" TV show on Monday.
He said that today's decline -- the biggest since the market bottom in March -- has reminded us that that bear can still waken from its slumber.
But Cramer also reminded viewers that they can't let short-term fluctuations in the market scare them. He said despite the market's gyrations, the fact remains that things are still better off today than they were in March.
To illustrate his point, Cramer returned to his "Obama Index" basket of stocks created on Jan. 20, inauguration day. After starting at 100, the index slipped to just 49.9 on March 6, before rallying back into the green, excluding today.
Cramer said simply that Obama's moves are working -- whether its increased regulation, changes in the tax and accounting standards, or even his cap-and-trade initiatives. He said Obama has reversed the road to Dow 6,300 we were once traveling on.
Just six weeks ago, Wall Street pundits were calling for the nationalization of all of the banks. Yet today, real winners like
, a stock which he owns for his charitable trust,
Action Alerts PLUS, have emerged.
Cramer said if there's one thing that kills an economy, it's inventory. He said excess inventory is not only the enemy of retail but it clogs up the entire economic system. And he said companies are telling us that inventory is lower for homes, computers, cell phones and televisions.
"A new cycle is struggling to emerge. It just needs a little more time," he said.
"Take today's sell-off as a gift," Cramer told viewers. He said while the economy is still definitely in a recession, pullbacks of 5% of larger are great buying opportunities for the sectors that are working.
What's working? Cramer said China is still on fire and will be the engine that pulls the train of global Capitalism out of the station. He said the
iShares China 25 Index
, which he owns for his charitable trust,
Action Alerts PLUS, needs a pullback before he'd invest there.But he noted other sectors, like the oils, minerals and dry bulk shippers such as
Nordic American Tanker
should all do well.
In banking, Cramer said it's safe to stick with the winners, like
, two stocks which he owns for his charitable trust,
Action Alerts PLUS.
Industrials are another safe bet, said Cramer. He likes
, another Action Alerts Plus name, in that group. In the housing sector, Cramer said to stay away from home builders and pick up retailers like
, an Action Alerts Plus stock, or
as a play on the housing bottom.
There's also technology. He remains a fan of
Research In Motion
as well as others like
, two Action Alerts Plus names, and
. He said this group turns first and is the hottest sector out there.
Finally, Cramer gave a shout out to beaten down healthcare names like
and also consumer stocks like
, both of which Cramer supports in Action Alerts Plus. All of these sectors are ripe for the picking anytime the market falls 5% or more, said Cramer.
"We need to bring back the uptick rule, and the SEC better listen," said Cramer.
He once again went on the offensive, imploring the authorities to bring back honest enforcement of the rules to protect the average investors from the "bad interests" that are currently in charge.
Cramer said its no secret on Wall Street that the bad interests, mainly hedge funds and ultra short ETFs, are waging war on the average investors, and are using every loophole in the book to do it.
Cramer said the SEC needs to reinstate the uptick rule, which was repealed in 2007 by then SEC Chairman Chris Cox. He said the SEC also must ban the ultra short ETFs that do nothing but hurt those who invest in it. He also said naked shorting must be banned.
On the topic of indictments, Cramer wondered where are the show trials for those at
, those who committed mortgage fraud and those who were responsible for destroying the American financial system.
Until these rules are reinstated, until there's honest enforcement, and until those responsible are in jail, Cramer said he would rather buy a house than a stock.
Cramer told a viewer that between
, he'd choose AECOM.
Cramer told a second viewer that he'd be a buyer of
Permian Basin Royalty Trust
until they only have five years left of oil reserves. At that point, he said, investors will begin to see a drop in the company's share price.
In the Lightning Round, Cramer was bullish on
Southern Peru Copper
Check out the latest edition of
"Cramer's Take onTop-Searched Stocks" on Stockpickr.
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At the time of publication, Cramer was long iShares China 25 Index, Pepsi, Abbott Labs, Qualcomm, Hewlett-Packard, Emerson, JPMorgan Chase, Goldman Sachs.
Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."
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Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on TheStreet.com. The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in TheStreet.com, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.