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Road Rules
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Investing can be confusing. Luckily, Cramer has mapped out some road rules for all you Home Gamers trying to navigate the jungle that is Wall Street. Think of it as "Mad Money 101" –- some fundamental advice to keep in mind as you play the market. Whether you're a first time investor or a seasoned financier, it's always good to remember the basics.
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Dec.14
9:54 PM ET

Right now it’s more important to recognize the environment than the earnings, Cramer said during Friday’s Mad Money.

So as much as he’s bullish on Best Buy [BBY  Loading...      ()   ], Goldman Sachs [GS  Loading...      ()   ] and Research in Motion [RIMM  Loading...      ()   ], all of which report next week, it’s the roar of the bears that has Cramer wary, at least in terms of trading the quarter.

“It’s too important to the bears that these companies be crushed for them to allows these stocks to go higher,” he said.

A strong quarter from Goldman, which is expected, could spark a resurgence in the downtrodden financials. But the bears can’t have that, so Cramer expects them to use negative rumors to drive the stock down after the report.

Research in Motion is “the single most important momentum name out there right now,” Cramer said. But short positions in the stock have been growing, and that means the bears will be doing whatever they can to negatively color RIMM’s story. This could be enough to keep a lid on the stock.

Even Best Buy could fall victim. But the one thing BBY, RIMM and GS have going for them is that they’re too good to be held down, Cramer said. So any posturing by the bears should be used as a chance to buy because he’s confident these stocks will bounce back.

A bear raid – or at least a bear PR campaign – is likely in all these stocks, Cramer said. So investors who want to avoid that should sell Monday. “But once the beat-down happens,” he said, “these stocks will all be buys.”

Jim's charitable trust owns Goldman Sachs.


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