RealMoney Radio: Mondays, Mergers and the Market

Cramer says Mondays are no longer 'bountiful' during the holiday season, where the merger trend also slows.
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As much as investors want every day to be a rally, there has to be a down day once in a while -- like today -- Jim Cramer said on his

"RealMoney" radio show Monday.

The same market players who were willing to buy stock during the last two weeks have disappeared today, maybe because they feel the prices they paid on Wednesday were too expensive, he said.

But either way, every day will not be a down day, Cramer said. "We will reach a level where the buyers will come back."

Although Mondays have been "bountiful" in the past, that is now changing as people spend money on shopping for the holidays rather than on buying stocks, Cramer said.

Another reason the market may be slowing is that the merger trend has come to a halt as there not too may deals that tend to take place during Thanksgiving, Cramer went on to say.

However, we are still in an "ideal" situation, he said, adding that his confidence stems from "a broader positive view." Right now there is "a strong consumer" and "a weak auto and housing market," a factor which may cause the

Fed

to pause or even to cut rates.

But for the time being, Cramer said he still anticipates more selling to take place.

Moving on to the drug stocks, he said there has to be a certain point where

CVS

(CVS) - Get Report

will realize that its merger with

Caremark

(CMX)

is not favored in the market.

After all, both stocks have gone straight down ever since they announced the merger, Cramer said. But they aren't the only drug stocks declining.

Walgreen

(WAG)

is also down.

While some of the "ailment" in this sector may have to do with the fact that

Wal-Mart

(WMT) - Get Report

has been cutting its drug prices, it may also be a sign that the drug stores are tapped out, Cramer said.

And still, a larger part of the decline may have to do with the sector rotation, where market players tend to transfer out of the "safer stocks" and into stocks which usually perform well when the economy is doing well, such as technology stocks and industrials, he added.

Although these companies are "pariahs" right now, CVS, Caremark,

MedcoHealth

(MHS)

and Walgreen are all "quality companies and should not stay down forever," Cramer continued.

"People are not counting on the fact that drug companies are able to tell a pretty compelling story," he said. While some like Medco are buying back stock "furiously," others such as CVS are too "shareholder friendly" to stay down.

As this sector has been "beaten down endlessly," Cramer believes that if people buy and hold drug stocks for a few months they could make some money.

To see the most recent edition of The RealMoney Radio Recap in its entirety, please click here. This recap is published every day around 3 p.m. ET.

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