Good things can still happen in the stock market, Jim Cramer told his Mad Money viewers Monday. The markets got too negative on Friday, Cramer said, and that created opportunities for this week as earnings season kicks off in earnest.
There's always a better time to sell than in the middle of a selloff, Cramer reminded viewers. Investors who sold into Friday's panic could have sold Monday at much better prices.
The markets gave investors lots to love Monday, including no significant retaliation from China on tariffs, and the acquisition of Avexis (AVXS) by Novartis (NVS) for $8.7 billion, a deal that sent Avexis shares up more than 85%.
Even the beat-down oil stocks were able to rally in today's session, as were the FANG stocks after Facebook (FB) continued its apology for mishandling user data and President Trump didn't mention Amazon (AMZN) in any tweets.
Cramer said he expects this wave of positivity to continue as earnings season begins, as that's the only time when individual companies seem to matter.
Cramer and the AAP team are sharing a positive research note on Norstrom (JWN) , and their analysis. Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts PLUS.
With so much drama coming out of Washington, many investors are looking for sectors that aren't affected by the fears of a trade war with China. Fortunately, Cramer identified 15 sectors he said will let you sleep at night and can be bought into any market-induced weakness.
Cramer's list started off with the telcos, where he said AT&T (T) looked promising. Mall-based retailers are also making a comeback, with Abercrombie & Fitch (ANF) having one of the best looking charts. Cramer's "cloud kings," like Adobe Systems (ADBE) also made the list, as did the cell tower companies like American Tower (AMT) .
Other hot sectors included the health insurers, with Centene (CNC) among Cramer's favorites, along with domestic oil producers and refiners, included Marathon Oil (MRO) and Holly Frontier (HFC) . Cramer remained a fan of the REITs, as well as American Electric Power (AEP) among the utilities.
Restaurants, brokerages and cybersecurity are three more sectors that are surging. Cramer called out Cheescake Factory (CAKE) , TD Ameritrade (AMTD) and ProofPoint (PFPT) as stocks to watch. He also gave the nod to companies helping mid-size U.S. businesses, think Paychex (PAYX) and uniform supplier Cintas (CTAS) .
Finally, the homebuilders are still strong, as are the defense contractors like Raytheon (RTN) .
Investors looking for a long-term theme with staying power need to take a second look at the golf business, Cramer told viewers, as he circled back to two long-time favs, Callaway (ELY) and Acushnet Holdings (GOLF) .
Shares of Callaway are up over 16% in just the past six months, as the company's reported two strong quarters in a row with sales up 20% on rising gross margins and a less promotional retail environment. Cramer said the stock is a little pricey at 21 times earnings, but the company does have a 30% long-term growth rate and a 14% stake in TopGolf, the interactive driving range that's taking the country by storm.
Then there's Acushnet, which trades at just 14 times earnings, but is admittedly the riskier of the two. Cramer said this stock is also still a bargain given the continued strength in the sport.
Finally, Cramer issued a mea culpa for his earlier recommendation of EPR Properties (EPR) , the real estate investment trust that focuses on entertainment, including some TopGolf locations. He said that golf is a much smaller part of this company's business than he realized and the bankruptcy of one of EPR's charter school tenants is having a far great impact than golf can overcome.
Executive Decision: Magellan Midstream Partners
For his "Executive Decision" segment, Cramer sat down with Michael Mears, chairman, president and CEO of Magellan Midstream Partners (MMP) , a stock that's down 14.6% so far this year.
Mears said that despite the tough environment for pipelines, Magellan has delivered on all of their promises, including doubling cash flow over the past five years. The company has a "best in class" balance sheet and $1.4 billion worth of new projects in the works.
Mears admitted the recent Federal Energy Regulatory Commission tax rule change caught everyone in the industry and on Wall Street completely by surprise, but he assured shareholders that its effects will be minimal. Magellan is still forecasting 8% growth this year and 5% to 8% growth for the next two years.
Cramer said that Magellan remains the best company in what's become a tough business.
In his "No-Huddle Offense" segment, Cramer opined on his interview earlier today with Larry Kudlow, Cramer's former TV co-host and currently the president's chief economic adviser.
Cramer said that Kudlow believes in two things: the notion that growth cures all ailments and that optimism will be rewarded. Both of those mantras were on display today, he said, reminding investors that while Trump may sometimes put a ceiling on the stock market, there's also a Trump floor that includes tax cuts which is lifting it from beneath.
Over on Real Money, Cramer says it's smart to be skeptical, but don't forget that that optimism pays off in the markets and in life. Get more of his insights with a free trial subscription to Real Money.
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