RealMoney Radio Recap: The Dow Milestone Matters

Cramer says that the Dow breaking 12,000 could get more people in the game. Also, revisit retail.
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"There's no perfect time to get in the market, but you need to get in somewhere," Jim Cramer said on his

"RealMoney" radio show Wednesday.

Although it might annoy people when he says that milestones -- such as the

Dow

taking out 12,000 -- matter, Cramer said his goal is to get people in the game.

"The Dow milestone lets people know that wealth is being created here in the stock market again," Cramer said.

The people who listen to him on the radio and watch his "Mad Money" TV show are already in, Cramer said. But Cramer believes that he needs to appeal to the millions who

aren't

involved.

The markets have been up more than 20% in three years -- this beats what people have made on their houses and cash, he said, adding that this should catch people's attention and get them into the game right now.

Unless people are from Chicago, they probably haven't heard of the

Chicago Mercantile Exchange

(CME) - Get Report

or

CBOT

(BOT)

, but on Tuesday, these two competitors decided to get together, Cramer said.

Image placeholder title

He believes that these two exchanges merged because

NYSE

(NYX)

must have wanted to buy one of them.

"The urge of the merger here is because few industries are as easy to wring profits out of as exchanges," Cramer said. Investors know that "when these companies get together, you can fire a lot of people and raise fees."

It is very rare that two stocks merge and both go higher. But in this case, Cramer said that because there is only the need for two exchanges (one in New York and one in Chicago), market players can make money by owning either one.

Goldman Sachs might have downgraded

Staples

(SPLS)

and UBS might have downgraded

American Eagle Outfitters

(AEOS)

, but people should pay no attention because "retailers on fire," said Cramer.

As an example, he cited

Kohl's

(KSS) - Get Report

and

J.C. Penney

(JCP) - Get Report

, which were also recently downgraded and have moved up since.

"These are unloved companies that are not expensive and are still going higher," Cramer said. "Analysts are negative because of a mindset. They haven't seen these types of runs in years."

"They can't believe these types of rallies and want out," he went on to say.

Market players should not go negative because of these downgrades; instead, investors should use them as opportunities to buy, Cramer urged.

IBM

(IBM) - Get Report

is a stock that is "screaming" today, he said.

After being "a dog" for so long, it finally got its expectations at a level where it could beat them, Cramer said. "The growth was so bad at IBM last year that no matter what the company did, it was going to look good," he said.

Since the summer, the stock has gone from $76 to $88, and now Cramer believes the stock could go down one, maybe two points, but will then hit $100.

Cramer's Callers

"

Costco

(COST) - Get Report

has done nothing this year," Cramer told a caller.

The reason this stock has not gone up is because it happens to be a big seller of gasoline, he said. Costco paid too much for gas and then had to sell it low, which is what hurt its quarter.

However, "it was a broken stock, not a broken company," Cramer said, adding that he believes it will go from $52 to $57.

He encouraged the caller to hold Costco.

Responding to another caller who inquired about

AMR

(AMR)

, Cramer said that although he has historically disliked airlines, AMR reported a big profit this morning.

However, that doesn't make it his favorite, he said.

Continental

(CAL) - Get Report

remains his top play in this sector.

Cramer advised his next caller to hold on to

AU Optronics

(AUO)

.

AU Optronics has been quiet and hasn't been moving, but Cramer said he believes that the liquid-crystal display sector has tightened its inventory, and consequently, AU Optronics will go higher, as will

Corning

(GLW) - Get Report

.

When a caller asked if he should take a little

Bank of America

(BAC) - Get Report

off the table, Cramer said it is in between some banks that are doing well and some that are not.

"I see downside of $1 and an upside of $3 for Bank of America," he said. "I have to tell you, if that's the risk/reward, you need to be in, not out."

Cramer also told a listener to hold on to

BellSouth

(BLS)

, as he believes its merger with

AT&T

(T) - Get Report

is going to be "fantastic."

As originally published, this story contained an error. Please see

Corrections and Clarifications.

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

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