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NEW YORK (
) --"Don't get too pessimistic and don't give up," was Jim Cramer's advice to the viewers of his "Mad Money" TV show Tuesday, after another roller coaster day on Wall Street. Cramer says there are too many good things happening here in the U.S. to give up on the stock market.
Cramer pegged his worst-case scenario for the
at 8,650, but that was based on a 20% decline in Europe, a 10% decline in Asia and other factors he does not see happening.
While many pundits are only watching the news out of Greece and the European Union, Cramer said he's watching more important indicators, ones that are being ignored by just about everybody. For example, Cramer noted that the Richmond Federal Reserve put out a report saying that service employment jumped in their area of the country. "That's huge," said Cramer.
There was also a recent release by the
stating that lending in U.S. continues to recover, and another from the Philadelphia Fed saying that manufacturing is on the rise. "This still will matter," Cramer told viewers.
And there are other positives as well, noted Cramer. Things like consumer confidence on the rise, and gas prices continuing to fall. Then there's housing prices. Cramer said while the pundits mourn the passing of the federal tax credit, he's focused on how still-lower mortgage rates will save home buyers TWICE that amount. With 18 of 20 metro areas now reporting home price appreciation, Cramer said buyers have already missed the bottom.
Cramer said all of this great news doesn't matter to stocks... yet, but they will. He said as stock prices continue to fall, things continue to look better and better for
, two stocks which Cramer owns for his charitable trust,
Action Alerts PLUS.
Cramer also was positive on
In a special interview, Cramer spoke with Senator Ted Kaufman (D. Del.) about financial reforms in the wake of the Dow's machine-driven 1,000 point decline on May 6.
Kaufman said that any time you have a lot of change and a lot of money with no transparency, you have a problem, and that's exactly what he feels has happened in the world of high-frequency trading. He said over the past few years, high-frequency trading has gone from 30% to 70% of all trading, and none of it is being regulated.
Kaufman said that he wants to make sure the
Securities and Exchange Commission
looks into the issue, and he urged individual investors to contact the SEC and make their voices heard. He said high-frequency trading did not add liquidity to the market in its time of need, it instead pulled liquidity out of the market, allowing some stocks to plunge to zero.
Kaufman added that the days of "trust me, it'll all work out," are over, and in his experience, good things only happen after bad events. He said the events of May 6 have proven to the SEC and others that there is indeed a problem, and everyone is now mobilized to make the tough changes that are needed to fix the problem.
Cramer commended Kaufman for his work on reforms and told viewers they should also support his efforts.
Off The Charts
In the "Off The Charts" segment, Cramer went head to head with colleague Tim Collins over the fate of the euro, a chart which Cramer joked should be rated PG-13, as it may be too gruesome for some viewers.
Collins used the
Currency Shares Euro Trust
as his proxy for the euro. On the daily chart, he noted that the 14-day moving average has been a ceiling for the beleaguered currency, and every time it trades near it, shares get slapped down. Also of concern was the relative strength index, which is also providing resistance for the euro.
Turning to the weekly chart, Collins noted a textbook head-and-shoulders breakdown pattern, indicating that shares could fall as low as $117 in the short term and as low as $99 by the end of the year.
Cramer said he agrees with Collins' analysis, which is why he continues to recommend investing only in high-yielding U.S. stocks that have no or little European exposure. He said as the euro continues to decline, money will flow more and more into U.S. bonds, driving their yields lower, and making dividends all the more attractive.
In the "Mad Mail" viewer feedback segment, Cramer told a viewer that he's not a fan of
in lieu of the company missing its earnings. He likes both
in the direct marketing category.
Cramer told another viewer that
Las Vegas Sands
is not his favorite casino stock. He still likes
for their Macau exposure.
Finally, Cramer told a viewer not to sell
Plum Creek Timber
, and instead advised the viewer to buy more.
In the Lightning Round, Cramer was bullish on
SPDR Gold Shares
Kinder Morgan Energy Partners
Cramer was bearish on
-- Written by Scott Rutt in Washington D.C.
To watch replays of Cramer's video segments, visit the Mad Moneypage on CNBC
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At the time of publication, Cramer was long Apple and Intel.
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.