Stop Trading!: Apple, Wal-Mart and 'Obama Magic'

Monday’s 325-point rally in the Dow was due to a combination of short covering and “a lot of Obama magic,” Cramer said during Stop Trading!, referring to the president-elect’s proposed stimulus plan.

While stocks are up, Cramer said some might be climbing “a little too much too fast.” Disney popped 12% today alone on declining gas prices. DIS is a Cramer favorite, but “at a certain point, these 10% moves begin to…wear on me,” he said.

Speculation that Apple will begin selling its iPhone at Wal-Mart for only $99 has Wall Street buzzing. The 8GB iPhone currently sells for $199, and Best Buy is the only retailer, aside of Apple’s own outlets, to sell the gadget. Cramer thinks the move’s a good one, especially considering Wal-Mart’s 100 million weekly shoppers. He shrugged off the idea that Apple will lose some of its cache by dealing with the discount retailer, calling it a “fabulous strategy.” The only potential losing he sees could be at Nokia and Motorola come earnings season.

As for the market as a whole, it’s still oversold, Cramer said. “It won’t be by the end of the week, though.”

Jim's charitable trust owns Wal-Mart.

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