NEW YORK ( TheStreet) -- "Two down days does not signal the all clear," Jim Cramer explained to his "Mad Money" TV show viewers on Wednesday. The said the patterns of old no longer work in this market, which means investors need to remain on the defensive. Cramer said in the old days, two big down days in a row, like we saw on Monday and Tuesday, would be the crescendo moment for the markets and would almost certainly usher in a multi-day rally. But that was back when U.S. markets were in control of their own destinies, said Cramer, and those beliefs are now too risky to rely on. In recent years, the markets have seen seven back-to-back selloffs, with two coming so far this year. The Oct. 3 sell-off was indeed the spark that ignited a terrific October rally, but the prior one on Sept. 22 only yielded a bounce for several days before the markets quickly retreated, noted Cramer. That's why while he likes the tech stocks and the rally in truck production and many of the retailers and restaurants, Cramer remains hesitant to signal the "all-clear." Why is this the case? Cramer said it's because this week's sell-off really didn't create a lot of bargains in high quality stocks, and while some things are better in Europe, others seem to be getting worse. He said the U.S. employment numbers due later this week could be a disappointment and the risk of another false positive remains too great. Cramer said the markets remain a 50/50 coin toss at the moment, which is why he was not telling viewers to buy into today's rally, even though he knew it was coming.
Encouraging OutlookIn the "Executive Decision" segment, Cramer spoke with Chuck Bunch, CEO of PPG ( PPG), which delivered a four-cent-a-share earnings beat when it last reported and a stock that's up 91% since Cramer first got behind the company in June 2009. PPG currently has a 2.6% dividend yield but is up just 4% since August, despite two great quarters. Bunch said that PPG is having an excellent year, based mainly on its operating excellence He said after the recession, PPG is a leaner company with a much more productive supply chain. Overall, Bunch said he sees reasons for optimism both domestically and abroad. In the U.S., Bunch said manufacturers are seeing better energy prices, thanks to domestic natural gas and the country's supply chains. Bunch said that U.S. manufacturing is on a "good footing," and 2012 looks even better for PPG as commodity prices continue to fall. Turning towards Europe, Bunch said that while consumer demand is weak, industrial demand is still seeing some growth. Bunch said he remains optimistic on the outlook for Europe as well. In fact, PPG is so optimistic, it continues to buy back its own shares, with the company already retiring some 7% of its outstanding shares. "We're voting with our cash," said Bunch. Cramer continued his recommendation for PPG, a great American manufacturing company.
Favorite Gold Miner PlayIn the "Executive Decision" segment, Cramer spoke with Mark Bristow, CEO of Randgold Resources ( GOLD), a gold mining stock that's up 3,004% over the past decade and 42% since Cramer last spoke with Bristow on May 9. Cramer said he still prefers that investors buy gold bullion or the SPDR Gold Shares ( GLD), but with Randgold looking to boost production 22% next year, this high-risk stock might be worth a look. Bristow said that Randgold is working hard to increase both its production and the grade of the gold it mines. He said the company is bringing some one of its new mines online. He said there will be more of both in 2012. Bristow cautioned investors not to evaluate gold miners of their production costs per ounce of gold. He said that gold quality differs, so using a cost per unit produced is a better metric. Bristow said that many gold miners are simply focused on producing more ounces and are not looking for quality or profitability, something Randgold does not do as it tries to separate itself from the industry. Bristow was also very bullish on the prospect of a fixed, stable dividend at Randgold. He said the company has paid special dividends in the past and would be very open to a regular dividend once the company is done growing and has reached stable levels. Randgold is focusing on profitability no matter what the price of gold may be as the world's economies fluctuates. Cramer cautioned that gold miners are risky investments, but this one remains his favorite in the group.