Cramer's 'Mad Money' Recap: Beyond China's Reach (Final)

Click here for an archive of Jim Cramer's Mad Money recaps. Click here to get Jim Cramer's Mad Money Post Game video exclusively on TheStreet.com.


NEW YORK ( TheStreet) -- When it comes to determining which way the market is headed, Jim Cramer told the viewers of his "Mad Money" TV show that "China is in charge."

He said that China is the prism through which all of your market decisions must be made, and it just so happens that China has just created a huge opportunity in the fertilizer sector.

Cramer said when it comes to commodities like steel and copper, corn and fertilizer, the U.S. is no longer in control. It's China that decides whether these commodities go higher or lower. It wasn't too long ago, he said, that China used 10% of the world's copper, while the U.S. used 30%. Today, that number is reversed.

Cramer Clearing House All things Cramer Mad Money Recap Trade With Cramer Free

That's why when building copper inventories took the Shanghai composite index lower, and in turn the U.S., commodity stocks sharply lower in recent days, investors need to take notice, said Cramer.

He recommended Potash ( POT), a stock which was down $1.28 a share today, as one stock that, despite a strong outlook, was taken needlessly down and now represents a great value.

Cramer said Potash doesn't have a lot of Chinese exposure, and in fact only derives 12% of its sales from China. However after a horrible 40% decline in global demand for fertilizer, Cramer said Potash is now poised for a serious recovery.

According to Cramer, the long-term trends of a growing global population and increased demand for better food remain intact and will keep Potash growing for years to come.

If you liked this article you might like

Kraft Heinz Cooks Up Earnings Beat but Could Still Use Unilever

It's the CEOs, Stupid: How Meager Investment Hamstrings U.S. Economy

Amazon Files Trademark to Get Into Meal Kits, Continuing to Haunt Blue Apron