"Today's market is brought to you by the number four," Jim Cramer told RealMoney Radio listeners Thursday, noting that with the market up for the fourth straight session, this is the best rally we've seen since May 11. (The S&P 500 and Nasdaq both subsequently fell into negative territory in recent trading.) Even with turmoil in the Middle East, rising gas prices, a weak quarter from UPS ( UPS), the downgrade of FedEx ( FDX) and Dow Chemical ( DOW) being down 10%, the upswing continues. But Cramer said it's time to throw some rain on the parade because when the market is going higher, it's time to lock in profits. Don't get complacent, he said, reiterating that he likes to buy low and sell high. He said that weakness in consumer stocks combined with a spike in utilities and insurance companies points to a "severe slowdown that could take people by surprise." Weakness at Black & Decker ( BDK) points to trouble in consumer stocks, he said, adding that he would be worried about other retailers like Federated ( FD), J.C. Penney ( JCP) and Kohl's ( KSS). Even though he bought Sears ( SHLD) for his charitable trust Action Alerts PLUS , he added that it might not be spared, either.
Cramer on Demand
This week, Cramer's listeners wanted to know more about Peabody Energy ( BTU) for their "Cramer on Demand" stock. He said that it's his favorite coal play because it's a good company that has a lot of coal still left in its mines. But the quarter was awful, and since the stock is up 43% over the past year, people are taking profits. However, with oil prices hitting all-time highs and natural gas prices climbing, he said that coal will be less expensive than the competition. Since it's here to stay, Cramer said he would buy the stock while it's down. It has wiped out its gains year-to-date, but it's still up over the past 12 months. 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.