Cramer's 'Mad Money' Recap: Obama's Silence Spurred Rally (Final)

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NEW YORK ( TheStreet) -- In the ongoing battle between Wall Street and President Obama, Jim Cramer told viewers of his "Mad Money" TV show Monday that silence is a thing of beauty.

Investors who want to know why the market rallied today after an abysmal week last week need only look toward Washington, said Cramer, where there was an eery silence amid a backdrop of almost relentless attacks.

"A president who's angry with Wall Street is bad news for your 401k," he told viewers. He said the markets just cannot rally without participation from the financial stocks, and today, they got their chance.

Cramer said that the fear in the markets receded along with the rhetoric. He said the market is taking its queues from a handful of stocks, two of which happen to be JPMorgan Chase ( JPM) and Goldman Sachs ( GS), two stocks which he owns for his charitable trust, Action Alerts PLUS .

So where does the market go from here? Cramer said he expected the sellers to return on any bad news, including falling oil prices, which would indicate a further slowdown in China, increased unemployment here at home, and of course, more angry words from Obama regarding Wall Street.

He advised taking profits on any rally, and continuing a defensive investment posture.

Promise of Natural Gas

In the "Executive Decision" segment, Cramer spoke with Murry Gerber, chairman and CEO of independent natural gas producer EQT ( EQT), for another read on the state of the natural gas industry in America.

Gerber parroted the sentiments of the entire natural gas industry by saying that America's 120-year supply of natural gas is cheap, abundant and available now. He dismissed rumors that natural gas can only fuel homes and large trucks, saying that natural gas could fuel every car in America.

Gerber said that if a serious effort were taken, America could convert its cars to natural gas in just five years, creating two to three million new jobs in the process. He said that "if you're not for natural gas, then you're for foreign oil," and that doesn't make any sense.

When asked about environmental concerns, Gerber said that the issue is a red herring, and that no study has ever found anything wrong with the new drilling techniques that are available today. He said that innovation happens quickly, and that's what's been happening in the natural gas industry.

Cramer said he liked the EQT story, and the fact that Gerber is sticking to the company plan of remaining an independent producer of natural gas. He said the stock could triple as EQT continues to grow.

Selling Coal Stocks

Is the outlook for the coal industry bullish or bearish given the government mandated slowdown in China? Cramer examined the issue by comparing the conference call of two coal giants to discover the hard truth.

Cramer looked into the earnings calls of Peabody Energy ( BTU) and rival Arch Coal ( ACI) to find a striking dichotomy. While Peabody gave a bullish outlook, citing strength in China, Arch Coal painted a muted picture and lowered its guidance for all of 2010.

According to Peabody, the import trends in China are sustainable, and the company is betting on China for continued growth. Arch Coal, however, cited concerns domestically, adding there was not a single new coal plant built in the U.S. in 2009, given that it's the dirtiest form of energy.

So which company is correct? Cramer said he's siding with Arch Coal, and would be a seller of all of the coal stocks. He said while President Obama is a big supporter of "clean" coal technology, the truth is that China is controlling coal's future. And with that country in a slowdown, he thinks coal use will be flat to down for 2010.

Despite the president's efforts to the contrary, Cramer said he's siding with natural gas, and with utilities with a sizable exposure to nuclear power.

Mad Mail

Cramer told a viewer that Trinity Industries ( TRN) is not a stock that he likes anymore given that the demand for windmills has fallen with the price of oil.

Cramer told another viewer that he thinks Vale ( VALE) is cheap, but given its exposure to China, he would not recommend owning it.

Lightning Round

Cramer was bullish on Cisco Systems ( CSCO), Diana Shipping ( DSX), Southern Peru Copper ( PCU), Apple ( AAPL), Burlington Northern Santa Fe ( BNI) and Honeywell ( HON).

Cramer was bearish on Brocade Communications ( BRCD), Dryships ( DRYS), Freeport-McMoRan ( FCX) and Boston Scientific ( BSX).

-- Written by Scott Rutt in Washington D.C.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here.

For more of Cramer's insights during the Lightning Round, click here .
At the time of publication, Cramer was long JPMorgan, Goldman Sachs, Cisco, Apple, Honeywell.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or is related to the specific opinions expressed by him on "Mad Money."

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Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.

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