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NEW YORK (
) -- "Don't lose your head," Jim Cramer said on his
TV show Thursday.
Cramer said the same litany of negative news that drove the markets lower Wednesday was present today, but the market's reaction was markedly different now when Dow is at lower levels.
Whether it's worries about home equity loans not being repaid, or a lack or new small business loans, or fears of lower demand for commodities, Cramer said the bears will continue to spew their negativity. He said the markets, though, simply give them less credence at lower levels.
At Dow 10,500, Cramer said the glass appears half empty, but at Dow 10,000, and especially at Dow 9,500, the glass is decidedly half full. He said the markets are clearly range bound, and how it responds to negative news will depend on where it is in that range.
At the high end of the range,
bad quarter was a huge negative, but at lower levels it may have been tempered by positive news from
Cramer said this phenomenon should only come as a shock to those who don't understand how the game it played. Viewers of "Mad Money," however, should be able to see these moves coming, he said.
"There's always a bull market somewhere," Cramer reminded viewers, as he followed up on his thesis from last night that said that one-third of the market would be bottoming at the open today.
Cramer said the groups that he expected to be held hostage by the futures markets, were indeed at the open today, but shortly thereafter, right on schedule, they began to rally.
One sector Cramer liked was agriculture. He noted
opened lower, but ended the day with solid gains.
Also on the list was health care. Cramer referred to the charts of
Medco Health Systems
that showed the stocks rallied strongly by day's end.
Finally were the utilities, as evidenced by
and Cramer's favorite,
Cramer noted that only gold did not open lower as he expected. He said that group, including
, opened higher, and crept higher still throughout the day.
In the Thursday "Sell Block" segment, Cramer unveiled the "viewer's choice" award for his coveted "Wall of Shame" list of the worst CEO's. He said with 38% of the votes, the Wall of Shame spot goes to Robert Fornado, CEO of
AirTran shares have fallen 55% since Fornado took the helm in November 2007. Cramer said the stock has repeated missed earnings and underperformed its peers. He said while there is not much downside left in the stock, AirTran's only option may be to merge with another airline.
Cramer said the other honorable mentions were the head of the
, a stock down 69%; the head of
, with shares down 59%; and the CEO of
Johnson & Johnson
, whose shares have slipped 8%.
Cramer said in all of these cases, the CEOs were bad, but not bad enough. "You can't get on my wall that easily," he said.
Am I Diversified?
Cramer played "Am I Diversified" with callers to see if their portfolios have what it takes. The first caller's portfolio included:
Kinder Morgan Energy Partners
Cramer said this portfolio was not only diversified, but has an opportunity to make a lot of money.
The second caller's top holdings included
Kinder Morgan Energy Partners
BP Prudhoe Bay
Hugoton Royalty Trust
Cramer said this portfolio has two oil trusts and one needs to be sold to make way for a good utility stock like Consolidated Edison.
The third caller had
as their top five stocks.
Cramer said this portfolio was perfect for diversification and dividend yield.
The fourth caller's top stocks were
Bank of America
Cramer said he loved this portfolio as well.
More from Jim Cramer Cramer's 25 Rules for Investing
Cramer was bullish on
Tiffany & Co
He was bearish on
-- Written by Scott Rutt in Washington D.C.
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At the time of publication, Cramer was not long any stock mentioned.
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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