Mad Money with Jim Cramer - MAD CAP RECAP - The Official Mad Money Blog
RSS FEED
FEATURED SLIDESHOW
Who Is The Worst CEO?Mad Money needed new inductees for its
Wall of Shame, so we asked viewers for
nominations.
RECENT POSTS
- Time to Buy Treasurys?
- Lightning Round: Las Vegas Sands, ADC Telecom, Satyam Computer and More
- Lightning Round OT: Knight Capital, Ebix and More
- Is Lear, Back From Bankruptcy, a Buy?
- Sanofi-Aventis Falling Off a Patent Cliff?
- Cramer: Your Thanksgiving Week Game Plan
- Cramer: Next Week Should Define Rest of ‘09
- Mad Money: Mad Mail: Buy RIM or Apple?
- Lightning Round: Cisco Systems, Citigroup, Baidu.com and More
- Lightning Round OT: Martek Biosciences, Valmont Industries and More
MAD MONEY FEATURES
PODCASTSWatch the Lightning Round whenever and wherever you want.
OFFICIAL MAD MONEY WIDGETGrab this all-in-one application and get recaps of the show sent right to your desktop or blog.
CRAMERS SOUNDBOARDAdmit it: You've always wanted to hit the "They
know nothing!" button. Here’s your chance.
CHECK OUT OUR PHOTOSCheck out Cramer on set, back to school, behind the scenes and more.
SHOP FOR MAD MERCHANDISEBuy Cramer books, bobbleheads and other Mad Money merchandise.
RING TONESPick up the phone! It's Cramer! New Mad Money sounds for your cell phone.
TEXT MESSAGE ALERTMad Money's mobile. Get show highlights sent to your phone.
Text Size 
Web Editor, Mad Money
Warren Buffett just can’t move markets like he used to. Even his buyout of Burlington Northern Santa Fe [BNI
Loading...
()
] wasn’t enough to push the Dow into positive territory.
It’s not his fault, though, Cramer said Tuesday. The only forces powerful enough to drive stocks are the same three sectors that led us up from the early March lows.
“Oil, tech and the banks are what matter,” Cramer said, “and without them we will not rally hard even when, logically, we should.”
These sectors are so important, he continued, that just eight stocks among them will tell you “all you need to know exactly what’s happening and what’s going to happen” in the market: JPMorgan Chase [JPM
Loading...
()
], Goldman Sachs [GS
Loading...
()
], Wells Fargo [WFC
Loading...
()
], Bank of America [BAC
Loading...
()
], Google [GOOG
Loading...
()
], Apple [AAPL
Loading...
()
], Chevron [CVX
Loading...
()
] and Schlumberger [SLB
Loading...
()
].
The big money is watching these groups because they’re key tells of the economy. Higher oil always signals improved economic health. A resurgence in tech means that consumers and corporations are spending again. And strong banks indicate the end of job losses, as people are better able to pay their mortgages and credit-card bills.
But with these stocks faltering, Cramer looked to a few defensive plays to buoy viewers’ portfolios. These are the companies that don’t need a strong economy to work, and he recommended buying them any time the market dips: Procter & Gamble [PG
Loading...
()
], General Mills [GIS
Loading...
()
], McDonald’s [MCD
Loading...
()
], WellPoint [WLP
Loading...
()
], Kimberly-Clark [KMB
Loading...
()
], Pfizer [PFE
Loading...
()
] and Bristol-Myers Squibb [BMY
Loading...
()
].
Cramer likes the industrials and retail on weakness as well, but he said that investors have time to build positions in these sectors as they wait for the trifecta of oil, banks and tech to regain their momentum. That’s a big reason he recommended the defensive stocks, because there’s still too good a chance for something to go wrong in the meantime.
In the end, though, we need that trifecta, all of them working at once, to take us higher. Nothing else – not even the Oracle of Omaha – can do the job.
When we get all three, Cramer said, we’ll get “a huge payout.” That could come Friday if the jobs number is strong. It may be worth as much as 200 or 300 points in the Dow.
Cramer’s charitable trust owns Bank of America, Bristol-Myers Squibb, Chevron, Goldman Sachs, JPMorgan Chase Procter & Gamble and Wells Fargo.
Call Cramer: 1-800-743-CNBC
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website?
Data is a real-time snapshot *Data is delayed at least 15 minutes