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Oct.09

11:52 AM ET

Tuesday, 9 Oct 2007

Mad Mail: Never Trade After Hours

Posted By:Carlo Dellaverson

Topics:Economy (Global) | Economy (U.S.) | Stock Market | Stock Picks | Mad Mail

Companies:Caterpillar Inc

Dear Jim: I read "Real Money" and "Mad Money" and I am really trying to understand where we are in the business cycle and then use that to understand your calls on the show. Lately though, two of your calls have me very confused. As far as I can tell (despite how random the GDP curve is these days) we are on the low end of the downturn, right about where 1% GDP growth is on your chart in the books. But you recommended both buying gold and holding Caterpillar [CAT Loading... () ]. I understand your reasoning for these on the show, but how can this contradict the chart so much? Please help! --Jeb

Cramer says: “The chart only works domestically.” When you have a big international company like CAT, you’re going to see more activity in the rest of the world and it won’t be as hostage to our GDP. “We’re just not as big a part of the world as we were when I first wrote “Real Money.””

_____________

Dear Jim: Thanks for all you do. I have what may be a stupid question. If a company is releasing its earnings report after the closing bell, is it better to use a stop, limit, or stop-limit order to minimize losses if they miss their expected numbers? I thought I understood these types of orders fairly well until I called my broker and asked the same question. Now, I am not so sure. --Angie

Cramer says: “You’re not going to do anything in after hours.” It’s too unpredictable and often too wrong. “Wait until the next morning and use a limit order.”

Jim's charitable trust owns Caterpillar.

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