Jim Cramer's Mad Money Review

"Global capitalism just might be saved by Chinese communism," Jim Cramer told viewers of his "Mad Money" TV Show Tuesdays.

He said that country's economic stimulus plans could lead the whole world out of its financial woes.

Cramer said the Chinese are pulling out all of the stops, doing everything in their power to create jobs and save their economy. The reason why, he said, is necessity.

He said the Chinese communists cannot afford the country's economy to get any worse without risking widespread protests and civil unrest. To stay in power, they have to get the economy back on track, and fast.

So far the Chinese have cut interest rates five times in efforts to stimulate growth. They've also announced over $600 billion in stimulus packages, including a $40 billion telecom package to upgrade the country's infrastructure. That plan, said Cramer, should be a win for Qualcomm (QCOM).

Why do these moves in China matter? Cramer said because the trend is the only bullish thesis our markets can rally around.

He said this catalyst has resulted in a huge rotation out of names like Merck (MRK) and McDonald's (MCD), and into names like BHP Billiton (BHP), Joy Global (JOYG), Eaton (ETN) and Freeport McMoran , a stock which he owns for his charitable trust .

"The Chinese are giving us a reason to like the stocks that need a strong economy to work," said Cramer.

Cramer checked in with Eaton (ETN) chairman, president and CEO, Sandy Culter, for an update on that company's outlook since his last appearance on Nov. 14, 2008.

Since then, shares have risen 27%, despite the company lowering 2009 guidance last month.

Cutler confirmed that demand for Eaton's goods did decline dramatically in the fall, but said the decline was not unexpected given the global liquidity crisis. He said the damage is clearly evident in the markets and he doesn't expect manufacturing to pick up for another six to nine months.
Source: TheStreet.com

Labels: BHP, BHP Billiton, Eaton, ETN, Jim Cramer, Joy Global, JOYG, Mad Money, MCD, McDonalds, Merck, MRK, QCOM, Qualcomm

"This is a Joy Global(JOYG ) world," said Jim Cramer on Tuesday's "Stop Trading!" segment on CNBC. "Everybody's going to be paving roads."
Cramer added that with mortgage rates plunging, "housing really will bottom in June." As for homebuilders, he said: "If you believe that housing is going to bottom in six months like I do, and you believe that they're going to get the tax break that was in the papers today, you can actually buy these stocks." But Cramer said he doesn't "necessarily like them."

Cramer prefers Home Depot(HD) and Lowe's(LOW). "But I believe in the rally," he said. "I think housing's clearly going to bottom, at lower prices, six months from now."

Published By TheStreet.com

Labels: CNBC's Stop Trading, HD, Home Depot, Jim Cramer, Joy Global, JOYG, LOW, Lowe's, Stop Trading

Here are 7 trading ideas for today. These lists come directly from the TradingMarkets Stock Indicators page and are based upon our latest quantitative research.
Bullish
Gaps Down 5% or More: These are stocks that gap down by 5% or more and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that gap down by more than 5% have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Joy Global (NasdaqGS:JOYG - News). JOYG's PowerRating is 7.
Laps Down 5% or More: These are stocks that lap down by 5% or more and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that lap down by more than 5% have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Hoku Scientific (NasdaqGM:HOKU - News). HOKU's PowerRating is 9.
5+ Consecutive Down Days: These are stocks that have closed down for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that close down for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge. Historically, these stocks have provided traders with a significant edge.
Frontier Oil (NYSE:FTO - News). FTO's PowerRating is 7.
5+ Consecutive Lower Lows: These are stocks that have made a lower low for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that make lower lows for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Sunoco (NYSE:SUN - News). SUN's PowerRating is 7.
2-Period RSI Below 2: These are stocks that have a 2-period RSI reading below 2 and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving with a 2-period RSI reading below 2 have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Ceridian (NYSE:CEN - News) & Altria (NYSE:MO - News). CEN's PowerRating is 6, and MO's PowerRating is 6.
Bearish
5+ Consecutive Higher Highs: These are stocks that have made a higher high for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that make higher highs for five or more days have shown negative returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Amgen (NasdaqGS:AMGN - News). AMGN's PowerRating is 4.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: AMGN, CEN, FTO, HOKU, Hot Stocks, JOYG, MO, SUN

Bullish calls:Hologic (NasdaqGS: HOLX): 'This is an absolutely great deal. Hologic at 55 is the way to go.'MasterCard (NYSE: MA): 'Goes to 200. Do not dare leave MasterCard yet. We are now up 100 points in this stock, and we are not done ... If you are still playing with lots of money in this and not the house's money, then that's a mistake. Take some off the table tomorrow.'Yamana Gold (NYSE: AUY): 'I have liked, as a gold company, Yamana Gold.'Golden Star Resources (AMEX: GSS): 'I've hurt a lot of people in it. But it's a spec game ... so I'm not backin' down.'Apollo Investment (NasdaqGS: AINV): 'This one makes a lot of money. 8% yield. It's a keeper. I think you've got a good one. I like this stock very much. 'Bucyrus International (NasdaqGS: BUCY): 'BUCY is part of the amazing resurgence of American manufacturing. This and Joy Global are fantastic mineral plays. ... Do not sell that stock. ... Could indeed trade up 15 more points.'Joy Global (NasdaqGS: JOYG)Elan (NYSE: ELN): 'I've been too negative on Elan. ... That stock is going higher.'Texas Instruments (NYSE: TXN)Nvidia (NasdaqGS: NVDA)National Semiconductor (NYSE: NSM)Caterpillar (NYSE: CAT): 'I like Caterpillar more (than Terex). Caterpillar is up much less.'OptionsXpress Holdings (NasdaqGS: OXPS): 'Does not need a takeover to send it higher. This is a well-run company that should be trading higher as is.'J.C. Penney (NYSE: JCP): 'The last couple of months have been bad. They all want to dump on Mike Ullman. ... Far be it for me to stand in front of a freight train, but I will...I'm not backing away, I'm backing up the truck.'Fannie Mae (NYSE: FNM)Downey Financial (NYSE: DSL)Bearish calls:CYTYC (NasdaqGS: CYTC)Trident Microsystems (NasdaqGM: TRID): 'It's related to video graphics, but I like Nvidia.'Echelon (NasdaqGM: ELON): ' ... 52-week high. Nah, not for me. I'm not going to give you that one.'Melco PBL Entertainment (NasdaqGM: MPEL): 'I screwed up. I cut my losses at 18, because I realized these guys were pathetic. ... These guys are not for me. ... No, don't stay with MPEL.'Sterling Bancorp (NYSE: STL): 'No... Expensive bank, my friend.'Jones Soda (NasdaqCM: JSDA): 'No, no, no. They missed the quarter. We had enough of JSDA. We're not pressing our bet there...'
Published By SeekingAlpha

Labels: AINV, AUY, BUCY, ELN, ELON, GSS, HOLX, Jim Cramer, JOYG, Lightning Round, MA, NSM, NVDA, TRID, TXN

Take Two Interactive (NasdaqGS: TTWO): Cramer admitted he was getting behind the "most poorly managed company in America" because he believes in Steve Cohen, who wants to take the company over. Although Cramer thinks the company should have been shut down by the feds "a la Enron" he predicts that Steve Cohen is going to bust the shorts and comments Cohen has always worked well independently.
Joy Global (NasdaqGS: JOYG): The entire sector is being overdone on the downside, said Cramer, and although JOYG missed the previous quarter, Cramer notes the company has a strong cash flow.
UnderArmour (NYSE: UA - News), Adidas , Dick's Sporting Goods (NYSE: DKS - News): Lagging marketing expenditures for Adidas and Reebok means an open playing field for UA to move into Dick's Sporting Goods, according to Cramer, who notes that UA hardly got a scratch in the selloff and predicts it is heading into the $50s. Cramer also comments DKS is well-managed.
Ciena Corp (NasdaqGS: CIEN), Alcatel-Lucent (NYSE: ALU - News) and Tellabs (NasdaqGS: TLAB) and Verizon (NYSE: VZ - News): Cramer says CIEN needs a win as Verizon is making its choice. He thinks CIEN has a better chance than ALU and TLAB.
Published By SeekingAlpha

Labels: ALU, CIEN, DKS, Jim Cramer, Jim Cramer's Stop Trading, JOYG, TLAB, TTWO, UA, VZ

Labels: ABG, AMD, AN, F, ID, Jim Cramer, JOYG, KMX, Lightning Round, LMC, LSI, Mad Money, MRVL, PMTI, SCI, SYMM, UAG, URBN