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Bulls make money, bears make money but hogs get slaughtered. Jim Cramer reminded his Mad Money viewers Wednesday of this core investing tenet, one that Cramer has trumpeted ever since the beginning of the show 10 years ago. The bears and short sellers have been having a field day in 2016, he said, but today for the first time the shorts may have overstayed their welcome.
So what's been going right? Cramer said Freeport-McMoRan (FCX - Get Report) and Chesapeake Energy (CHK - Get Report) , two of the market's poster children for oils stocks gone wrong, each gave investors some hope for shoring up their balance sheets. Meanwhile, Kinder Morgan (KMI - Get Report) received a boost from no less than Warren Buffett, who purchased a stake in the company.
Those who get greedy eventually lose, Cramer concluded. Days like today prove it.
Off the Charts
In the "Off the Charts" segment, Cramer checked in with colleague Carley Garner over the direction of gold to see if this commodity has finally woken up from its multi-year slumber.
Garner first used the weekly commitment of traders, or COT, report to note the big money managers had all buy given up on gold, and even after gold's strong move recently there is still plenty of big money sitting on the sidelines.
Turning to a weekly chart of gold itself, Garner noted the commodity has been trading in a channel until finally breaking out to the upside last week. Given the parabolic move, she expects short term weakness, which would be an excellent buying opportunity.
Garner felt that a short-term pullback to $1,150, or even $1,100 or $1,080 could be possible before gold continues its march higher.
Cramer added that with countries like Japan implementing negative interest rates, gold will only get more attractive over time. He suggested loading up on gold after the inevitable pullback occurs.
Is This for Real?
After the market's first three-day rally of 2016, investors are asking, "Is the move for real?" Fortunately, Cramer had the answer.
There were many sectors participating in the rally, Cramer noted, not the least of which was the rails, which have been a major source of negativity for the markets. CSX (CSX - Get Report) forecast a sharp decline in first-quarter earnings, yet shares closed higher on the day. That's very encouraging.
Still other winners included industrials such as Honeywell (HON - Get Report) , growth stocks including Priceline (PCLN , which soared 11.2% on strong earnings, and consumer packaged goods stocks like Campbell's Soup (CPB - Get Report) .
All of these positives mean the markets are no longer in free fall, Cramer concluded. Some may just be relief rallies from severely oversold conditions. But overall, they add up to something the market can finally build on.
Off the Tape
In his "Off the Tape" segment, Cramer sat down with Dr. David Agus, professor of medicine at USC and author of the new book, The Lucky Years. Dr. Agus is a proponent of using new technology and new thinking to change health care for the better.
Agus addressed the notion of organic foods. He said the term "organic" is just a label and is not necessarily better for you. He said locally grown foods are generally higher in quality, even if they are too small to qualify as organic.
Turning to the controversy surrounding GMO foods, Agus said the world needs science to generate more calories per acre of farmland, but many GMO foods have simply forgotten about health. Modifying one part of a seed, he said, affects lots of things about that seed.
When asked about whether products like Fitbit (FIT - Get Report) can make a difference, Agus said absolutely. He said the trend towards a quantified self, where people collect their own data and use doctors to interpret that data rather than gather it, will be huge.
Finally, when asked about big data, Agus said electronic health records will unlock all sorts of secrets. He said a recent study found people who live near airports don't live as long. Turns out, the brain needs quiet time to function at its best. That linkage, Agus noted, would never have been discovered without data to analyze.
In the Lightning Round, Cramer was bullish on Carmax (KMX - Get Report) , AutoNation (AN - Get Report) , Ford Motor (F - Get Report) , General Motors (GM - Get Report) , Carlyle Group (CG - Get Report) , WhiteWave Foods (WWAV , Universal Display (OLED - Get Report) and Enterprise Products Partners (EPD - Get Report) .
Executive Decision: Dmitry Loschinin
For his "Executive Decision" segment, Cramer spoke with Dmitry Loschinin, president and CEO of Luxoft (LXFT , the enterprise software development company that has seen its shares slump over 35% so far in 2016, with shares now trading for just 16 times earnings.
Loschinin said Luxoft is a very misunderstood stock given that business is as strong as ever and many of the company's key accounts continue to grow. He said he is buying shares in the open market, taking advantage of the low share price.
Luxoft has many clients in the financial industry, Loschinin noted, an industry that is undergoing a lot of transformation. He said much of the innovation and improvement in finance is coming from upgrading the core IT infrastructure and software, which is what Luxoft does.
Luxoft also supports the automotive industry, Loschinin said, designing many "under the hood" systems for cars, along with the cloud services to support them.
Cramer said Luxoft is a stock that has gotten too cheap given its opportunities.
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