Cramer's 'Mad Money' Recap: Taking Profits

Click here for an archive of Jim Cramer's Mad Money recaps.


As reporters play "pin the tail on the sell-off," trying to explain today's market decline with eye catching headlines, Jim Cramer told the viewers of his "Mad Money" TV show that he's got the real answer.

Cramer said the sell-off was not due to a breakdown in the technology stocks, as some reported. He said the tech stocks are still selling at some of the lowest historical P/E ratios ever.

The failed takeover of Sun Microsystems ( JAVA) is nothing to be concerned over, he said. "Why did IBM ( IBM) want to buy them in the first place?"

Cramer said the sell-off was not due to a collapse in oil prices either. A pullback in oil is not a bad thing, he said. Isn't $50 a barrel oil better for the economy that $60 a barrel oil?

The sell-off was also not due to the rally in gold, said Cramer. After a $100 fall in the price of gold, doesn't a rally make sense? He also scoffed at the idea that Treasury Secretary Tim Geithner's plans aren't working. "Can we have a little wait-and-see," he asked?

Cramer said the real answer as to why the market declined is simple: profit taking. After a huge 20% rally off the bottom, people are simply taking some money off the table, he said. This week is also a vacation week, he added, with many schools on spring break.

Cramer told viewers not to be discouraged by the decline, or the light volume. The markets could still go lower, he said, but the fundamentals are still there.

If you liked this article you might like

Irma and Harvey Busted Algos; Probably Done Deals Under Trump: Best of Cramer

North Korea Threats and Fed Actions: Here's How Markets Ended the Week.

S&P 500, Nasdaq Shake Off North Korea Threat to Bounce Higher at Week's End

Sprint T-Mobile Merger Will Have to Contend With This Wonky Number the DOJ Uses

North Korea's Nuclear Threat Pressures Wall Street at Trading Week's End