Search Jim Cramer's Mad Money trading recommendations using our exclusive Mad Money Stock Screener and watch Jim Cramer's Mad Money Post Game video exclusively on TheStreet.com.
NEW YORK (
) -- "We're still not in control of our own destiny," Jim Cramer admitted to the viewers of his
TV show Friday.
He said that next week's trading rests with the news out of Europe and China and will once again likely weigh down the markets.
Cramer said that on Monday, the Chinese non-manufacturing PMI number will be released and will set the tone for perhaps the whole week's trading. Also on Monday, there will be sales updates from
. Cramer said he's hoping for positive numbers, but investors still can't own the autos.
will have Cramer's ear. Cramer said he's worried about sales in China, a major growth driver for the company.
For Wednesday, Cramer said
reports and while he's bullish on the company, shares have run up ahead of the quarter, which often signals a decline is coming.
Also on Wednesday,
both report. Cramer said bumper crops in the U.S. is bad news for fertilizer giant Monsanto and he needs to hear from Marriott before deciding to get into the hotel group.
reports, but Cramer said he'd sell that name and pick up some
, which offers dividend protection.
Finally for Friday, Cramer said the non-farm payroll numbers will be in charge. He said it won't be a bad number, but likely won't be a good one either.
China as a Drag
"Take heed of the Chinese weakness," Cramer warned viewers, "it's not going away."
Cramer said he is now seeing countless signs that the Chinese economy is getting worse, not better, which means that China can no longer be seen as a constant for our economy, but rather a drag that can bring us down.
Among the indicators Cramer cited as alarming are the decline in copper, which signals a slowdown in Chinese construction, along with slumping coal stocks, also a leading indicator with strong ties to Chinese demand. Cramer said that aluminum is also in free fall, as is steel, a commodity that the Chinese dump all over the globe at cut-rate prices when their own demand weakens.
Along on Cramer's radar was the decline in Maccau business for
, along with high-end retailers
, all signs that China is cooling off fast.
"All is not fine," Cramer explained. He said that with the U.S. and European markets continuing to slump, the Chinese have no market for their exports, which is finally taking a toll on their own red hot economy. "China needs to stay top of mind," Cramer concluded. The country is too big and important to ignore any longer.
Be prepared to take a beating, a solemn Cramer warned viewers ahead of next week's trading. Cramer said the U.S. is not in control of its own markets, and there are lots of reasons why.
Cramer said first, the machines are still in charge, trading stocks as a basket based on preset levels determined by hedge funds and big ETFs.
Second, Cramer said that the analysts just don't see the value in high-yielding stocks, and they continue to downgrade great companies. Utilities, he said, are great low risk, high reward names. Think
American Electric Power
Third, Cramer said that valuations are now meaningless, and stocks like
, a stock which Cramer owns for his charitable trust,
Action Alerts PLUS, continue to decline regardless of their true value.
Fourth, Cramer said when stocks break, they don't recover and get beaten day after day. Cramer said all of the high multiple names, like
Chipotle Mexican Grill
are all trading like they're dying a slow death.
Fifth, Cramer noted that Europe can still bring our markets down, even if the worst case scenarios are off the table. That's why Cramer continues to recommend selling all bank stocks both here and in Europe.
Finally, Cramer said that despite the fact few companies are missing earnings, no one will step up and stick their necks out with a buy recommendation. It's too dangerous, he said.
Cramer said he wishes things were different, but wishing, like hope, should never be part of the Wall Street equation. Cramer said only high yielding stocks, REITs, and master limited partnerships have what it takes to make it in this current environment.
Am I Diversified?
Cramer spoke with callers to see if their portfolios have what it takes. The first caller's portfolio included
Cramer said this portfolio had perfect diversification.
The second caller's top holdings included
Kinder Morgan Energy Partners
Cramer said this portfolio will make a lot of money, even in this environment.
The third caller had
Dr Pepper Snapple
Cramer said this portfolio was also perfectly diversified for this troubled market.
Cramer was bullish on
He was bearish on
Research In Motion
Cramer followed up on
, a stock that stumped him in an earlier show. Cramer said this stock is cheap, but he sees no reason why it can't get cheaper, as the company has no catalyst to jumpstart growth.
Cramer said that
and its CEO have a great track record, which make him bullish on this company, but only for a trade.
, however, has a great long-term story but needs to see its price decline more before buying in. Cramer was also bearish on diamond merchant
, as that stock offers no dividend protection.
When asked about
, Cramer said that
, an Action Alerts PLUS name, would be a better choice.
And when queried about
, Cramer said he's worried there too, as market leader
is showing some weakness.
Finally, Cramer said that
iShares MSCI Emerging Markets ETF
could head considerably lower and he's not yet a buyer there, either.
--Written by Scott Rutt in Washington, D.C.
To contact the writer of this article, click here:
To follow the writer on Twitter, go to
To submit a news tip, send an email to:
To watch replays of Cramer's video segments, visit the Mad Money page on CNBC
Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by
For more of Cramer's insights during the Lightning Round, clickhere
At the time of publication, Cramer was long Ensco.
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."
None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor TheStreet.com, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.
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.