Wednesday, July 30, 2014

Jim Cramer's 'Mad Money' Recap: Thinking 5 Steps Ahead and Being Wrong

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) -- The markets are always thinking five steps ahead, even if those steps are all wrong, Jim Cramer told his Mad Money TV show viewers Wednesday. Cramer said there are five groups of investors fighting over the direction of the markets, making for a confusing jumble of cross-currents. The first group believes the U.S. economy is strong and only getting stronger, Cramer said. This group is buying anything tied to the economy and is only concerned over the stronger dollar. Read More: Why 'This is Yellen's FOMC Now' The second group believes the U.S. economy has hit its peak and is expecting the Federal Reserve to begin raising interest rates any moment to spoil the party. Cramer said the third faction are people like him, people who care about individual companies and their earnings. This group buys what's working and has piled into the biotechs, social media stocks and cloud companies as positive earnings came to light. Meanwhile, the fourth group is focused on the geopolitical and how sanctions against Russia will hurt the industrials and the oils. This group is selling on a regular basis. The final group is enticed by rumors and special situations. This group is buying what the activist investors are buying and are looking for the next possible takeover target in companies like Yelp . Read More: Blonde Go-Getter Fined $1 Million in Bank of America Fraud Case All together, these groups are fighting one another, Cramer concluded, which is why the averages barely budged in today's session. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC


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