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NEW YORK (TheStreet) -- It's never a good sign to see stocks moving the wrong way, Jim Cramer told his Mad Money viewers Monday. But when they move for all the wrong reasons, Cramer said, that raises a red flag.
For example, banks do better with higher interest rates but the fact is the banks are doing quite well with lower interest rates, too, and thus didn't deserve the pummeling they've received.
Then there's housing, which should be doing better with low interest rates. According to the latest housing data, housing is beginning to slump.
And what's up with energy prices? Today's jump in crude oil should be breathing life into the everything oil related, from drillers to oil services and beyond. The only problem is, it isn't.
In fact, retail, restaurants and consumer packaged goods stocks all rallied today, even though those sectors need lower energy prices and lower interest rates, neither of which were seen today.
Finally, there were the biotech stocks, which got clobbered on a tweet from Hillary Clinton about price gouging for prescription drugs. Clinton is still a long way from potentially being President, but apparently the markets are paying attention anyway.
All of these contradictory moves made Cramer nervous, he said, which is why he's advising increased caution in the days ahead.
Executive Decision: Brent Saunders
Saunders said Allergan continues to be a growth company, one that will be able to grow its revenue by double digits and expand its margins. The company has over 70 drugs in its pipeline that are in late-stage testing, and Allergan has a strong balance sheet to make additional acquisitions.
Saunders also addressed some of the confusion regarding its acquisition of Teva Pharmaceuticals (TEVA - Get Report) . He said that due to accounting rules, Allergan has to account for what will become discontinued operations after the merger. That has led to some changes in its statements that some analysts have interpreted as inconsistencies in Allergan's forecasts. Once the merger is complete, he noted, all will return to normal.
When asked about Hillary Clinton's tweet regarding price gouging, Saunders said that while no presidential candidate has the ability to directly affect prices, comments like those today can put pressure on the system. There are some cases of inappropriate pricing, Saunders admitted, but those are rare cases and not the norm.
Cramer continued to voice his support for Allergan.
Cramer Fights BackSt. Louis Federal Reserve President James Bullard called Cramer an "unsavory" cheerleader for higher stock prices on CNBC earlier today. Them's fighting words and Cramer had some comments of his own.
Cramer favors higher stock prices but he's neither a fan nor a cheerleader of our current stock market. He's also not against raising interest rates, only against raising rates when China and Europe are teetering and when higher rates would adversely affect average Americans.
Right now, Cramer reiterated, there is no inflation, only deflation. Wages, at best, are stagnant. That means there's no compelling case to raise interest rates.
Cramer said he's not surprised by Bullard's comments because the Fed laughed at his "they know nothing" rant in 2007. But Cramer was right in 2007 and things were indeed far worse than anyone realized at the time.
As for this time, Cramer said he's just glad the rest of the Fed doesn't agree with Bullard either.
Cramer Gets One Wrong
When the facts change, you have to change your mind. That's exactly what Cramer did with hotel chain La Quinta (LQ) , a stock that came public in April 2014 at $17 a share and had risen to $25 before cratering over the past two months.
Cramer said La Quinta just issued shareholders a one-two punch, announcing the sudden departure of its CEO, Wayne Goldberg, and slashing its full-year guidance.
Cramer said it's not too late to sell La Quinta, and in fact he'd run, not walk, to do so. He said Goldberg's departure without a real reason for his exit is troubling, and the company's subsequent announcement of a $100 million share buyback screams of desperation, especially given the company's already huge debt load.
It's clear now that when Cramer grilled Goldberg about the effects of a softening oil market in its business earlier this year, and Goldberg characterized the change as a "net positive," he was either clueless or overpromotional. Neither is a good sign, Cramer concluded.
"I got this one wrong," Cramer said.
Executive Decision: Mark Bristow
Bristow said Randgold's success stems from its focus on staying sustainably profitable and creating value for its shareholders. He said Randgold allocates capital on the assumption that gold will be $1,000 per ounce, and that means they can perform well at any reasonable price for gold.
While some gold miners are simply trying to survive, Randgold continues to be profitable and has positive cash flow and no debt on its balance sheet. Bristow said some miners are putting shareholders last, but Randgold continues to put shareholders first.
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