NEW YORK ( TheStreet) -- "The bears may be in hibernation, but they'll be back in a few days," Jim Cramer warned his "Mad Money" TV show viewers on Monday. He said when the short sellers return to this market, there will be trouble. Cramer reiterated that he's not a believer in the "panic" theory, but he's also not a believer that "all is well" now that the markets have enjoyed a few up days. He said there are still simply too many unknowns in this market, and none of those unknowns has been solved. In Europe, Cramer said it's clear that the ban on short selling is working, along with the Europeans stepping in to buy some of the ill-fated bonds that are causing many of the problems. But Cramer expects that the hedge funds and short sellers who make a living punishing bank stocks into oblivion will side-step the new rules in another few days, returning the markets to their volatile state. Here at home, Cramer said that the U.S. is still dealing with all of the uncertainty surrounding its next round of debt talks, made all the murkier by the beginnings of next year's election cycle. On the upside, there was the Motorola Mobility ( MMI) deal with Google ( GOOG), a reminder of just how cheap U.S. stocks have gotten, said Cramer. Many stocks are still undervalued, he said, but the markets won't acknowledge that value with the uncertainty looming. Cramer once again advised investors to take profits where they can and raise cash. He said the the short sellers will be back in another two days and when they get here, there will likely be trouble.
Caution on Momentum Plays"Investors must have discipline to play with momentum stocks," Cramer told viewers, as he examined the meltdown in Sodastream ( SODA), which lost 34% of its value last Thursday as the company's forecasts imploded. Cramer first got behind Sodastream at its U.S. IPO last November. However, he started recommending investors take profits in the company in July after shares soared 288% higher on its growing momentum. That warning was spot on last Thursday when the company reported a two-cent-a- share earnings beat on a 38.5% increase in revenues. Cramer explained that Sodastream's growth was simply not enough for a high-flying momentum stock and the situation was made worse by the company's forward looking guidance which forecast sharply slowing growth. Making matters worse, Sodastream executives said that they still haven't committed to selling their products at retail giant Costco ( COST), a retailer Cramer said is "too big to ignore." Additionally the company's planned expansion into restaurants was revealed as only including sparkling water, a major disappointment for analysts. Cramer called Sodastream's forecasts "a complete bust," effectively pulling the rug out from under its shareholders. Cramer said he's surprised that shares were only cut in half given its sharply declining growth. By contrast, Green Mountain Coffee Roasters ( GMCR), makers of the Keurig one-cup coffee brewers, delivered a fabulous quarter with fabulous guidance to boot. "Sodastream is no Green Mountain," concluded Cramer, which is precisely why investors must use caution when investing in momentum stocks. He urged investors to use any lift in Sodastream to sell their remaining shares.
Oracle Downgrade Wrong"When analysts fight, you win," Cramer told viewers. Such is the case with tech giant Oracle ( ORCL), a stock which Cramer owns for his charitable trust,