Tuesday, July 22, 2014

Jim Cramer's 'Mad Money' Recap: A Week of Market Madness

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) -- There are four weeks a year when the markets become a mad house, Jim Cramer said Tuesday on Mad Money. This week, the height of earnings season, is one of those weeks. Cramer once again urged investors to steer clear of stocks during earnings week because they're up against terrible odds and the market's reactions to news can be totally out of sync with reality. Case in point: the battleground that is Herbalife . Cramer said the tennis match between activist investor Bill Ackman and company management has become totally unpredictable, with shares soaring 25% on news Ackman stated would sink the company. Cramer said investors need to avoid battlegrounds like Herbalife at all costs. Then there's Apple , a stock Cramer owns for his charitable trust, Action Alerts PLUS. Many investors are already "disappointed" with iPhone sales, but does that truly reflect the company's prospects with new, possible bigger, phones on the horizon, plus a new deal with IBM and potential wearable devices? And what do we make of General Electric , another Action Alerts PLUS stock? Company management proclaimed everything was great but digging into the details saw revenue misses in several key areas. So while the markets are running around guessing, second-guessing and reformulating their thoughts on earnings news, Cramer said home gamers are better off sitting on the sidelines and waiting for calmer seas next week. 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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