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"Believe it or not, a lot of people want this market to go lower," Jim Cramer told the viewers of his "Mad Money" TV show Friday.
He said the big hedge fund managers wanted to break this week's market rally, but the regular investors have won out.
Cramer said there are two types of investors looking for the market to go lower. Big mutual fund managers who are under-invested and need prices lower so that they can jump in, and big hedge fund managers, who make a living shorting the markets and creating havoc.
He said the hedge fund managers were looking for bad news this week. A former hedge fund manager himself, he said he knows how these guys think, and outlined the 10 bits of news these fund managers were hoping not to hear this week.
1. Positive comments from Obama. Hedge funds hated any positive comments about the markets.
2. News about China doing well. Hedge funds want China to remain in the doldrums for awhile longer.
3. Better-than-expected retail sales figures. Hedge funds needed to see a weaker consumer.
4. The uptick rule. Hedge funds are reeling at the thought of the uptick rule being reinstated. (The uptick rule has been covered in depth this week on
, with featured commentary by
5. A profitable
Bank Of America
. Hedge funds were hoping for a government takeover, not a solvent entity.
6. A scared Warren Buffett. Instead the famed investor offered some hope for the future.
, which he also owns for his
Action Alerts PLUS portfolio, downgraded hard. Hedge funds wanted the bellwether's ratings slashed big, not small.
8. Analyst downgrades. Funds were looking for more downgrades, but the few upgrades they got instead.
9. An even bigger rally. With a market up even more, there would've likely been a big reversal to capitalize on.
10. No more takeovers. Instead, hedge funds saw takeovers picking up steam, with company after company seizing low prices to make acquisitions.
Since all of these came true, the spiral of bad news has been broken, said Cramer, and the hedge funds will have to change course. And that's why he feels the market could see Dow 8,000 before the rally is over.
As the economy weakens, the threat of private label foods outpacing their brand name competitors has never been greater, said Cramer.
In recent weeks, Cramer's recommended both
as two ways to play this growing trend. Tonight, he added a third,
American Italian Pasta
American Italian Pasta is not only the largest producer of dried pasta in America but also the largest private label pasta maker. Cramer said this combination makes it a huge winner.
Pasta is a cheap alternative for cash strapped consumers, said Cramer, and that's helped propel the stock from $4 to $30 over the last year. Additionally, American Italian Pasta is the sole supplier to
, a company's who's making an even bigger push into private label brands later this year.
Cramer said there's lots to love about this stock. The company sells to dollar stores, another growth story. Likewise, the company is benefiting from falling commodity prices, with wheat dropping from $25 a bushel to just $6.75 a bushel currently.
Cramer told viewers to wait for a good entry point in this stock, adding "don't go crazy."
Cramer looked at a few of his previous calls to see what's worked and what hasn't.
, a stock he mentioned on June 15, 2007 that's now up 82%,
, a stock mentioned on Feb. 14 which is crawling back to break even, and
, a stock mentioned on Feb. 5, that got clobbered and is down 70%.
Cramer used these examples to show the nature of speculating. "Sometimes you're right, and sometimes you're dead wrong," he said.
For tonight's spec however, Cramer said he's looking at biotech, and at
Cougar is working on a treatment for prostate cancer, a disease that's a grave yard of failed drugs, but Cramer said Cougar's treatment is yielding positive results in its early trials.
Cramer said the company is set to release its next round of results in the second half of 2009, but the company has enough cash to fund itself through 2010. Cougar also has two other drugs in phase-one testing that could also help its prospects.
Cramer cautioned that Cougar is a small company, so investors need to buy slowly and patiently, and use limit orders if they wish to get in.
Cramer told a viewer that in the battle between
Research In Motion
, Research In Motion has been guiding numbers down, while Apple has been blowing numbers away.
Cramer told a second viewer that he's having a tough time trying to figure out
and needs to talk to their CEO before he makes a judgement on the company.
In the Lightning Round, Cramer was bullish on
Cramer was bearish on
Home Inns & Hotels Management
Check out the latest edition of
"Cramer's Take onTop-Searched Stocks" on Stockpickr.
Want more Cramer? Check out Jim's rules and commandments for investing by
Read more of Cramer's Mad Money Lightning Round insights
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At the time of publication, Cramer was long Foster Wheeler, Freeport McMoRan, General Electric.
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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