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Cramer Remix: Protecting your portfolio from a Trump 'lightning bolt' tweet

If you are an investor looking to ride the Trump rally for the rest of the week, Jim Cramer says to make sure you muster up a strong level of conviction.

"We are at a moment where there are so many cross-currents, some of which are caused by the president-elect himself, that you will need a cast-iron stomach to run the gauntlet from here through Friday's inauguration," the "Mad Money" host said.

The reason it is so important to have firm belief in stocks in a portfolio right now, Cramer said, is because a "tweet lightning bolt" from Donald Trump could take down a company's shares at any time.

The sell-off in bank stocks on Tuesday made them more attractive to Cramer, not less. He recommended waiting two days before buying any stocks going into the dip.

Oil stocks are also hard to own right now with crude stalled in the low $50s. Nevertheless, Cramer encouraged investors to stay long oil and gas.

"Come Friday, we will have the most pro-fossil fuel president in history. Don't be whipsawed … find something you like that is oil and gas and stick with it," Cramer said.

Donald Trump
Timothy A. Clary | AFP | Getty Images
Donald Trump

Financial stocks took a nosedive on Tuesday, but that didn't scare off Cramer from the group.

"I am committed to this group and after some profit-taking, I think it runs anew,"Cramer said.

On Friday, three of the largest banks in the U.S.—Bank of America, JPMorgan and Wells Fargo—issued statements that were incredibly positive.

Many investors believe that the recent rally in financials is based on a mere post-election high, but Cramer disagreed. Banks have been waiting for this moment, Cramer said, and they have been prepared to strike at the right time.

With some groups like retail struggling recently, Cramer noted tremendous strength in the restaurant group, particularly the casual dining and fast food plays.

Even more impressive is that when these companies missed the numbers, their stocks went higher. This signaled the market's willingness to take into consideration long-term strength.

To gain further insight on what the charts predict for the future, Cramer spoke with Bob Lang, who is a technician and founder of ExplosiveOptions.net and a colleague of Cramer's at RealMoney.com.

In Lang's perspective, 2017 could be the year for Panera Bread, Cheesecake Factory, Jack in the Box and Popeyes.

"On the fundamentals, I have to agree with him," Cramer said.


A pile of Benson & Hedges Gold cigarettes, produced by British American Tobacco Plc.
Jason Alden | Bloomberg | Getty Images
A pile of Benson & Hedges Gold cigarettes, produced by British American Tobacco Plc.

Cramer also turned his attention to a privately-held company making waves in the technology industry. Knightscope is a technology company that makes Autonomous Data Machines. These are basically robots that patrol areas like corporate campuses, shopping malls and event venues. Think "Robocop" without the accidental fatalities.

In addition to its innovative hardware and software, Knightscope also has a unique machine-as-service business model that dramatically reduces the upfront costs of suing the company's technology.

And while Knightscope is not publicly traded, it recently did a so-called mini-IPO in collaboration with SeedInvest. Cramer spoke with Knightscope's chairman and CEO Bill Li, who commented on crime as a negative monetary impact for society.

"Every single year it is a hidden tax we all pay in blood, tears and treasure. So imagine if we can combine a set of hardware, software and give every security guard super-human capabilities," Li said.

With news of more consolidation in the tobacco space, Cramer thinks it is time for a shake-up at some of the biggest tobacco companies. British American Tobacco announced it would acquire the last 58 percent of Reynolds American that it doesn't already own for more than $49 billion, or $59.64 a share.

This was just one of the latest moves in a long wave of consolidation that has hit the tobacco industry, as Reynolds American acquired Lorillard for $25 billion over a year ago. The news of British American gave Cramer an epiphany.

"With British American and Reynolds combining forces, they will finally have the scale to really challenge Philip Morris," he said.

In the lightning round, Cramer gave his take on a few stocks from callers:

Home Depot: "I have been a bull on Home Depot for about 100 points and I'm not relenting. I saw it down to like $134 the other day. If this stock comes down as part of a major sell-off into the inauguration I want you to buy, buy, buy."

Seadrill Ltd: "That is the lowest quality of the drillers. I prefer Schlumberger, which my charitable trust at actionalertsplus.com owns. You can read about it, we like it very much. I think that that is a much better way. They do report later this week. We want to go high quality."