Jim Cramer's 'Mad Money' Recap: Why You Can't Get Too Negative in This Market

 

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NEW YORK ( TheStreet) -- Never get too negative or you may get caught on the wrong side of the trade, Jim Cramer said on  Mad Money Wednesday. As today's snap-back rally proved, eventually the sellers get done selling.

That surely was the base with Bed Bath & Beyond (BBBY) . The stock had fallen some 20% ahead of earnings, culminating with an analyst downgrade just yesterday. But Bed Bath never got the negativity memo, and instead delivered a three-cents-a-share earnings beat on strong same-store sales. Sales of Bed Bath closed up over 7% by the close.

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Cramer also called out the Citizens Financial (CFG)   initial public offering, which opened at $21.50 a share only to drop like a stone before the rational minds took over, sending those shares up for a 7% gain on the day.

With oil prices down 12% over the past three months, Cramer said no one is thinking about the positives, like consumers with more money to spend and companies spending less on packaging and shipping. Yet, today stocks like Chipotle Mexican Grill (CMG) , Walt Disney (DIS) and Costco (COST) were all able to rally because consumers have more money to spend. Additionally, stocks like Sherwin-Williams (SHW) , a huge user of natural gas, also rallied as their costs continue to decline.

That's why investors always need to be prepared for when common sense returns to the market, Cramer concluded, because when it does, a stock's fortunes can turn on a dime.

Exciting Biotech Stocks

What's the most exciting portion of the health care industry? Cramer said that without a doubt it's biotech. He noted that his "four horsemen" of Celgene (CELG) , Regeneron (REGN) , Biogen Idec (BIIB) and Gilead Sciences (GILD) continue to soar higher on new drugs, new approvals and new hope for patients.

Just today, Celgene received approval for Otezla, a treatment for skin psoriasis, news that sent shares up a quick 3%. Cramer said not only is this approval a win for Celgene as a product, but it also makes the company stronger by diversifying its product portfolio.

Also in the news today, Acorda Therapeutics (ACOR) , another Cramer fave, which was up an astounding 28% after it announced a $525 million acquisition to help strengthen its product portfolio.

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Is more consolidation coming to the biotech space? It's likely, Cramer said, and that gives investors just one more reason to love this group of cutting-edge companies.

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