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Investors should look to take a hard look at their portfolios and make some sales tomorrow after today's huge rally, Jim Cramer told viewers of his "Mad Money" TV show Thursday. Cramer advised selling into any future rallies to free up cash for the declines that are most certainly ahead. "Get into position for the next big sale," he told viewers. He said today's 410-point rally in the Dow was entirely due to rumors that the federal government is considering a resolution mortgage trust to begin buying up bad home loans in an effort to rescue the U.S. banking system. Cramer said he first floated this very idea on NBC's "Today Show" back on July 16, but said it's only one part of "the Cramer plan" for saving the markets. He said a resolution trust will not only put a floor in the housing market but is far more effective and inexpensive than the current plan of nationalizing entire companies. He said the Federal Reserve needs to cut interest rates to 1% to spur growth and add liquidity into the markets. He again urged the re-instatement of the uptick rule, which is designed to prevent relentless short-selling of companies. And finally, Cramer said regulation is needed to stop the credit default swap activity that companies have been engaging in. All of these things, said Cramer, are what the markets need to finally put the housing and financial crisis behind us.
Investors should look to take a hard look at their portfolios and make some sales tomorrow after today's huge rally, Jim Cramer told viewers of his "Mad Money" TV show Thursday. Cramer advised selling into any future rallies to free up cash for the declines that are most certainly ahead. "Get into position for the next big sale," he told viewers. He said today's 410-point rally in the Dow was entirely due to rumors that the federal government is considering a resolution mortgage trust to begin buying up bad home loans in an effort to rescue the U.S. banking system. Cramer said he first floated this very idea on NBC's "Today Show" back on July 16, but said it's only one part of "the Cramer plan" for saving the markets. He said a resolution trust will not only put a floor in the housing market but is far more effective and inexpensive than the current plan of nationalizing entire companies. He said the Federal Reserve needs to cut interest rates to 1% to spur growth and add liquidity into the markets. He again urged the re-instatement of the uptick rule, which is designed to prevent relentless short-selling of companies. And finally, Cramer said regulation is needed to stop the credit default swap activity that companies have been engaging in. All of these things, said Cramer, are what the markets need to finally put the housing and financial crisis behind us.
Cramer: No Recovery Without Confidence |
A Turn in Housing
Cramer talked with Richard Dugas, president and CEO of Pulte Homes ( PHM), about the state of the housing market.
The New Banks
"The market is speaking and I hear it," said Cramer in his "Sell Block" segment. He said that the markets are clearing saying that investment banks, like Goldman Sachs ( GS), a stock which he owns for his charitable trust
Mad Mail
In this segment, Cramer told a viewer that he expects Cal-maine Foods ( CALM) to rise now that it's on the SEC's list of heavily shorted names. He said he still likes Panera Bread ( PNRA) more, but thinks that any profitable company on the SEC's list should do better going forward. He told another viewer that he's still a believer in Clean Energy ( CLNE) as a speculative stock.Lightning Round
Cramer was bullish on Frontline ( FRO), Nordic American Tanker ( NAT), Sears Holding ( SHLD), Southern Peru Copper ( PCU), Walgreens ( WAG) and Apple ( AAPL). He was bearish on Regions Financial ( RF) and ING Group ( ING). ---