This article was originally published Feb. 24Click here for an archive of Jim Cramer's Mad Money recaps.
"We can get out of this mess," a passionate Jim Cramer shouted at the viewers of his "Mad Money" TV show Tuesday.
Cramer said if Obama sticks to this plan, he'll quickly restore order in the markets and keep today's rally alive, and in the process, avoid bankrupting the Treasury.
According to Cramer, all of the technical analysis points to a rally that could last into next month. He said the charts all indicate that the markets are oversold and poised for a sharp snap upward. When looking at an overbought/oversold oscillator, he said the trend is very clear, anytime things have gotten this oversold, the rally is sure to follow. But Cramer said there's also other evidence of a coming rally. He said other charts indicate few newer lows were set on this decline versus that of October and November. Likewise, charts of put/call ratios also support the rally theory. "There's too much negativity," he said. Turning to the fundamentals, however, Cramer said he's far less optimistic that a snap-back rally will have any legs. He told viewers they should use any strength in the markets to scale out of stocks, stockpiling money to buy them back as things sink back lower. Cramer said the earnings estimates are still too high for most stocks, and that makes them too risky.
Mixed ReviewIn his "Off The Charts" segment, Cramer turned his sights to the charts of the markets to determine whether it's time to buy into this volatile market.
Ready for the Challenge"Not every company is tainted," said Cramer. He said there are a few companies that were actually ready for the downturn, stocks with high yields and managements that are up for the challenge. Cramer said Honeywell ( HON) is one of those companies, and he welcomed CEO Dave Cody to the show to highlight his company's products. Cody showcased a number of the company's products, saying that "this is not your father's Honeywell." The products included bulletproof vests, energy efficient turbochargers for autos, a 14-pound military reconnaissance helicopter, fire protection equipment and even a jet engine for business-class jet aircraft. When asked specifically about the company's aerospace exposure, Cody said the company expects to sell less engines, but said it will make up that lost revenue in other areas. He said the company has a long history of inventing new markets and dominating others through acquisitions. When asked about Honeywell's exposure to the auto sector and weakness in China, Cody said that while autos are down, there's more room to grow because company's penetration is still so small. He also said that while there's still life in China, it's not as big as many had hoped. Cramer said he's still a fan of Honeywell and recommended the stock.
Mad MailIn this segment, a viewer asked Cramer whether Bank Of Montreal ( BMO) or Royal Bank Of Canada ( RY) would be good investments given their high yields.
Cramer told the viewer to simply forget he ever asked the question. He instead recommended Visa ( V), MasterCard ( MA) and Goldman Sachs ( GS), which he also owns for his
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