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NEW YORK (
) -- At last, we're getting some good news," Jim Cramer told the viewers of his "Mad Money" TV show Wednesday, as he returned to his "rally requirement" checklist and was able to check an item off the list.
Cramer came out with his rally requirement checklist on June 2, saying that he needed to see six things happen before he could get bullish about the markets. Today, he said, we got confirmation of a Chinese economic soft landing, the first check mark on the list.
Cramer referred to news today that Beijing's residential property sales have fallen 90% from their December 2009 highs. He called that confirmation that the Chinese housing bubble has been squashed, while the rest of the nation's economy remains in tact. From this news, said Cramer, the markets can begin to stabilize.
Cramer reminded viewers that it's China, not Europe, that really matters when it comes to global economic affairs. He said the market peaked when we lost China, not Europe, and at the lows of 2009, it was China that turned positive first. "China is far more important that Europe," he said.
Cramer said there was also some good news on financial reforms, another item on his checklist. He said the proposed Lincoln amendment, which would hobble our nation's banks, appears to be losing steam. He called it good news but not enough to check that item off the list.
Furthermore, Cramer said there was also positive news on the Spanish banking front, where
is buying its Mexican interests from
Bank of America
to bolster its balance sheet. Here again though, Cramer said the news falls short of a full victory.
With one item down, Cramer said there are only five more to go before the markets will be signing a bullish tune.
Know Your IPO
Cramer highlighted the Chicago Board Options Exchange, which will soon begin trading under the ticker CBOE.
Cramer said the CBOE is the single largest options exchange, with 31% market share, and is the only pure play on trading options. The company expects to raise $328 million by offering 11.7 million shares between $27 and $29 a share.
Cramer said the timing on this deal could not be better, with legislation on financial reforms winding down and expected to be passed by early July. One of the major goals of the bill is to move more trading out of the back room and on to public exchanges like the CBOE.
But even without the bill, Cramer said the CBOE is seeing good growth in trading volumes, has innovative products and has a great management to boot.
Given the proposed range, Cramer said the CBOE will fetch a multiple of 17 times earnings. He said he would not pay more than $29 a share for the stock and would not be a buyer in the open market.
Even if investors can't get in on the IPO, Cramer said the CBOE is a stock to watch, as its performance will set the stage for the valuations of all the other exchanges, including
Struggle Against Obesity
Continuing his series on macro economic trends that can transcend global economic woes, Cramer highlighted the struggle against obesity, and the companies that profit from it. According to recent studies, more than 67% of all Americans are now overweight or obese. Given that trend, Cramer said these stocks can stand up to just about anything.
First up, organic grocer
. Cramer said the first line of defense against obesity is getting access to healthier foods, and that's what Whole Foods is all about. The company beat earnings estimates by five cents a share when it last reported with same store sales up 9%.
Next on the list was
Hain Celestial Group
, maker of healthy foods and snacks. This stock is up 24% since Cramer recommended it on April 6. Hain saw U.S. consumption for its products grow by 3%.
Also on the list,
Chipotle Mexican Grill
, a healthy alternative to fast food. Cramer said Chipotle beat its earnings by 25 cents a share when it last reported.
And finally, Cramer recommended
, another player in the fight against obesity. Weight Watchers beat its earnings by two cents during its most recent quarter.
Am I Diversified?
Cramer talked with callers to see if their portfolios have what it takes. The first caller's portfolio included:
Bank of Montreal
Cramer said he was thrilled with this portfolio
The second caller's top holdings included
Cramer said this portfolio, while not as strong as the first, was perfect.
The third caller had
Kinder Morgan Energy Partners
Annaly Capital Management
Nordic American Tanker
as their top five stocks.
Cramer flagged Exelon and Kinder Morgan as two utilities, but blessed the portfolio due to its high-dividend yield.
Cramer was bullish on
He was bearish on
Advanced Micro Devices
ingli Green Energy
-- 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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