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Cramer: Raise money, wait for lower stock prices

(Click for video linked to a searchable transcript of this Mad Money segment)

With jobless claims at 6 year lows, you wouldn't think the market would sell-off. But it did and Cramer thinks you need to heed the message.

"You'd think that kind of macro input – the Thursday jobless claims number – would be terrific news," said Cramer.

And it is good news, for the economy. But when the Street gets that kind of strength immediately interest rates go higher. And in this market environment that's bad.

It calls the housing recovery into question; also, it triggers speculation that the Fed will begin tapering sooner rather than later. That's not only bad for stocks, it's bad for bonds too. "Plenty of people think that's the case, so they are dumping their bonds betting the Fed's done buying them," Cramer said.

As a result, bond prices dropped and yields spiked. "The key ten-year U.S. government Treasury, the bellwether bond, shot up to 2.76% and the 30 year bond flew up to 3.8%," Cramer said.

Those so-called 'negative inputs' are enough to send stocks tumbling, alone. But on Thursday other negative inputs surfaced, too.

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Over the past 24 hours, two companies stunned the Street; Cisco and Wal-Mart.

"They did more than stun," said Cramer. "They totally befuddled and ultimately jolted the market." Cisco gave a weak outlook and announced a big layoff while Wal-Mart said that shoppers made fewer trips to its stores, likely feeling the pinch from higher payroll taxes and gas prices.

Adam Jeffery | CNBC

Cramer said, "both companies are too well run and their conclusions too similar to dismiss." And he reminded that the weakness follows poor results from Macy's, a company Cramer considers to be one of the best retailers in the world.

He takes the results as confirmation that the consumer is struggling.

All told, the recipe isn't good for stocks.

Of course, that doesn't mean stocks won't rally again, ever. They will. However Cramer says one of following will happen before the do.

1) Interest rates will top out and come down and data from other companies will show earnings are still in fine shape.
2) stocks will go down more to reflect the new reality of these negative inputs.

Cramer thinks it's the second scenario that's more likely. In the meantime, he says, "We raised some money, ringing the register and taking some profits for my charitable trust, and we're now awaiting lower prices. We only bought very small today, choosing to husband the cash. You might want to do the same. Nobody ever got hurt taking a profit."




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