Mad Money with Jim Cramer - MAD CAP RECAP - The Official Mad Money Blog

HOME

CRAMERICAN CHALLENGE

BIO

RSS FEED

» Help

Subscribe to this RSS feed
Stay up to date with the Madcap Recap blog.

FEATURED SLIDESHOW

  Who Is The Worst CEO?
Mad Money needed new inductees for its
Wall of Shame, so we asked viewers for
  nominations.

MAD MONEY FEATURES

PODCASTS
Watch the Lightning Round whenever and wherever you want.

OFFICIAL MAD MONEY WIDGET
Grab this all-in-one application and get recaps of the show sent right to your desktop or blog.

CRAMERS SOUNDBOARD
Admit it: You've always wanted to hit the "They
know nothing!" button. Here’s your chance.

CHECK OUT OUR PHOTOS
Check out Cramer on set, back to school, behind the scenes and more.

SHOP FOR MAD MERCHANDISE
Buy Cramer books, bobbleheads and other Mad Money merchandise.

RING TONES
Pick up the phone! It's Cramer! New Mad Money sounds for your cell phone.

TEXT MESSAGE ALERT
Mad Money's mobile. Get show highlights sent to your phone.

Cramer: So Begins Another 7% Decline

Published: Wednesday, 28 Oct 2009 | 8:09 PM ET

Text Size

By: Tom Brennan
Web Editor, Mad Money

“We’re going down,” Cramer told viewers during Wednesday’s Mad Money.

As if the Dow’s 119-point loss and a 2.7% hit to the Nasdaq weren’t proof enough, Cramer also pointed to the action in SPX [SPW Loading... () ], the heavy-machinery company that dropped 11% today after “a major guide down.” This economically sensitive stock offered all the evidence needed to warn investors of an impending pullback.

Now, Panera Bread [PNRA Loading... () ] told a different story, reporting a solid quarter and boosting its guidance. But the gains seen in that stock – 7% for the day – aren’t applicable across the board. Increased traffic at this higher-end restaurant usually indicates a more spend-happy consumer, but given the bad news in new-home sales, oil prices and computers, there’s no reason to feel confident that the economic rebound we enjoyed, however briefly, will continue.

The industrials took an “incredible clocking,” Cramer said, meaning, “We are right to worry that a new leg down might have begun.” There were other signs, too, as the market leaders – tech, the banks and oils – that carried us from the early March lows began to break down. Acer said the computer biz was tailing off, and that put pressure on tech’s bellwethers, Google [GOOG Loading... () ] and Apple [AAPL Loading... () ]. Housing’s poor performance and the continued trouble in US employment is hurting the banks. And oil prices seem to meet a resistance level, only to fall back with its leadership cohort.