TheStreet.com TV Recap: The Crucial Last Half-Hour

Cramer says the condition of the market at 3:30 is key to its direction, and that's when the buybacks stop.
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There's a rhythm to the recoveries in the stock market, Jim Cramer said on TheStreet.com TV's

Wall St. Confidential Webcast Tuesday.

Cramer believes "this market will be determined by 3:30 p.m. to 4 p.m.," he told Gregg Greenberg, the host of Wall St. Confidential. Therefore, if people are buying now, they have to understand they might have to buy more today, he said, adding that 3:30 is a "crucial" time because that is when the buybacks stop and it's really easy to knock the market down.

Cramer said those of the bearish bent may try to spread rumors, particularly between 3:15 p.m. and 3:45 p.m. today.

Although it's against the law to spread rumors, Cramer said he knows people do it, because there was a time when he used to hear the rumors. He, however, did not spread rumors himself, and being a "very high-profile guy," he would be "too easy to take down."

"It was the enforcement side that kept me from doing it, not the ethics side," Cramer said. "The ethics side is very thin in the hedge fund business."

Insolvent Unless Proven Otherwise

Cramer said he regards subprime lenders

NovaStar

(NFI)

,

New Century

(NEW) - Get Report

and

Fremont General

(FMT)

as "insolvent companies, unless proven otherwise."

"These companies have been very adept at hiding a lot of problems," he said. "When I say hiding problems, I'm saying I see illegality.

"The way illegality is defined in the country is that anyone in the Justice Department can go after any one of these guys right now," he continued. "They're subject to being prosecuted."

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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