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NEW YORK (
) -- "Sometimes it feels like there's no pattern to to the markets," Jim Cramer told the viewers of his "Mad Money" TV show Tuesday.
Today, for example, steel stocks such as
got clobbered, while other industrial stocks, like chemical company
, a stock which Cramer owns for his charitable trust,
Action Alerts PLUS, finished strong. Oil giants
ended higher, meanwhile oil driller
, finished sharply lower. What's going on? Cramer said we need only look at the calendar.
Cramer reminded viewers that we're just three days away from the end of the month, and the end of the fiscal year for many hedge funds and mutual funds. He said this means the race to "mark up," or take higher, a fund's largest positions has begun.
Cramer explained that many funds will bolster their quarterly and yearly performance by buying more of the stocks it already owns, thus taking those stocks higher. "Every dollar matters to these guys," he said, so even a small bump can make a huge difference in a billion dollar portfolio.
Since enforcement officials watch for this "less-than-ethical" maneuver on the last day of the month, Cramer said most funds will begin their buying throughout the first part of the last week of October, and end on Thursday, the day before their fiscal years officially end. This mark-up buying, he said, will send some stocks higher, seemingly for no reason at all.
Cramer said the markets will not make much sense for the next three days. He said investors looking to cash in some stocks should wait until Thursday to receive the best price, while those looking to buy into the highest of high-flying names may be better off waiting until next week's trading.
In the "Off The Charts" segment, Cramer went head to head with colleague Dan Fitzpatrick over the chart of
, a stock which Cramer advised selling on Aug. 20 and has since risen 21%.
According to Fitzpatrick, the daily chart of Neflix confirmed Cramer's sell recommendation. However, he sees another story when he looks at a monthly chart of the stock. Fitzpatrick said that $40, which had been resistance for the stock, is now becoming support, and he sees shares trading as high as $70 a share.
Turning to the fundamentals, Cramer said Netflix has become a resilient company that's posting incredible growth. The company recently reported a blowout quarter and raised its guidance, along side a new deal to rent movies through
Cramer said the Netflix model of low prices and free Internet streaming of movies is proving to be a winner. Subscriber growth at the company was up 28% from a year ago, with net income rising 48% from its previous year. With earnings expected to grow at 18.6% next year, Cramer said Netflix is still cheap, despite its stock rising over 80% so far this year.
Cramer said Netflix is seemingly unstoppable, and is changing his tune and becoming a bull on the stock.
Cramer was bullish on
Bank of America
( SVR) and
He was bearish on
Before taking care of a few "housekeeping" issues, Cramer first commended Pennsylvania Gov. Ed Rendell for his recent decision to not tax natural gas drilling in the Marcellus shale region of his state. Cramer said Rendell, who was interviewed last night, is setting the stage for natural gas drilling in this country. He said Rendell's efforts will make natural gas the environmentally friendly bridge fuel we need for energy independence.
Cramer also followed up on his recent recommendation to buy
when he pitted both stocks against each other a few weeks back. He said now that both companies have reported, he was right. Deckers reported a blowout quarter, and is up 15% since the call, while Under Armour, which reported great earnings as well, lowered guidance, sending the stock down 12% today.
Finally, Cramer followed up on a stock called
, which stumped him in an earlier lightning round. He said that after researching the company, it fits in with his mobile Internet tsunami thesis and he'd be a buyer of this stock which is growing earnings at 23%.
Cramer told a viewer
Bank Of America
is a buy. He said rumors of the company needing to do a secondary offering are exaggerated.
Cramer told another viewer that he'd be a seller of
( JAVA), now that the company has gotten a takeover bid. He said investors should not to wait for the deal to close, and instead "take money and run."
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At the time of publication, Cramer was long PPG, Bank of America, Gilead Sciences.
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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