Tuesday’s rally has injected some short-term hope into the market, Cramer said on Mad Money. There are some new buying opportunities but they’re only for the nimble, he said. And they won’t be around forever.
Cramer expects the euphoria from the rally to last for about a week. Does that mean the market will be up every day for the next five? No. But it does imply stocks will be higher a week from now than they are today, he said. And that makes him believe certain sectors that had been vulnerable are now back in play for a little while.
Wal-Mart’s better-than-expected earnings means that retail, which Cramer called “way too hated,” has the chance to go up. He recommended Target , Kohl’s , Costco , Gamestop , JC Penney and Sears Holdings .
The positive outlook from Corning , along with the strength in Apple , Research In Motion and Google , means any of the big names involved in the fiber-optic buildout can now go higher, too, along with rest of tech.
The rally in Goldman Sachs , after it said it did not expect big write-downs related to the credit crisis, could translate to good news for the rest of the financials for a while, even though Cramer believes the problems in the sector are far from over.
The bottom line? It’s maddening, it’s bizarre, it’s incomprehensible, but Tuesday’s 320-point rally means to Cramer that there should be another week or so of strength ahead before the old malaise sets back in. He urged Homegamers to take advantage of that time before the clock runs out.
Jim's charitable trust owns Corning, Goldman Sachs and Sears Holdings.
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