When things look really horrible, and the markets have been down for days, don’t despair, Jim Cramer told his Mad Money viewers Tuesday. Instead, he said they should plot out their next moves, so when good news strikes, they’ll be ready.
Today’s powerful rally came on the heels of the realization that Russia may run out of money, ammunition and morale before it’s able to take over Ukraine. That led oil prices to another 7.6% decline and sent stocks off to the races.
On Action Alerts PLUS, co-portfolio managers Bob Lang and Chris Versace say the correction in one popular tech stock may soon be over. Get in on the conversation and hear what they’re telling their investment club members about Alphabet’s (GOOGL) – Get Alphabet Inc. Class A Report chart and where the solid support is.
Cramer had previously said that any positive news on Ukraine or oil would be a springboard for stocks. That’s exactly what we got Tuesday.
How do we explain the 2.9% rise in the Nasdaq? Astute viewers are taking their cues from companies like Marvell Technology (MRVL) – Get Marvell Technology, Inc. Report, which was featured on Monday’s show, and CEO Matt Murphy had positive things to say about their many end markets, from 5G to the data center.
That’s how rallies are made, Cramer concluded. Positive news can happen at any time, which is why investors need to be ready.
Executive Decision: CrowdStrike
In his “Executive Decision” segment, Cramer spoke with George Kurtz, co-founder, president and CEO of CrowdStrike (CRWD) – Get CrowdStrike Holdings, Inc. Class A Report, the cybersecurity company with shares up 3% today after reporting strong earnings.
Kurtz said that cyberattacks have increased since the war in Ukraine broke out. He said attackers are hoping the invasion will be a distraction for companies and allow them to gain access. Concerns around financial institutions have risen since sanctions have taken effect, which is why CrowdStrike helps secure 15 of the top 20 financial companies in the world.
CrowdStrike has also partnered with Amazon Web Services (AMZN) – Get Amazon.com, Inc. Report to help secure critical infrastructure in the cloud.
Cramer noted that while CrowdStrike trades at a lofty 20 times earnings, this is one company that is worth it.
Off the Charts
In times of turbulence, investors must check their emotions at the door and turn to the facts. That means checking in with technicians like Carolyn Boroden to learn what the charts are saying.
According to Boroden, the markets are likely to see a short-term bounce, a bounce that may have started Tuesday. Looking at a weekly chart of the S&P 500, she noted that five Fibonacci timing cycles are coming due this week and next. That convergence of cycles means a change in direction for the markets is likely.
This hypothesis was confirmed by the S&P’s daily chart, which has eight timing cycles coming due between Monday and Thursday.
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Boroden was skeptical of a longer-term move higher however, as the markets haven’t fallen enough to justify a longer-term move.
Boroden’s last prediction for a similar bounce was between Feb 23 and Feb. 25, a prediction that came into fruition as the market bounced off their lows.
Viewers Speak Up
Portfolio management is all about asking questions, Cramer told viewers. That’s why he opened the phones to see what was on the minds of Cramerica.
The first caller asked about health plan provider Centene (CNC) – Get Centene Corporation Report given that CEO Michael Neidorff has stepped down for medical issues. Cramer said Neidorff made sure Centene would be in great shape without him and this great company will do just fine.
Cramer was less bullish when asked about Mission Produce (AVO) – Get Mission Produce, Inc. Report however. He said the avocado market is too volatile to invest in.
When asked about Owens & Minor (OMI) – Get Owens & Minor, Inc. Report, Cramer said he feels this stock is great for the long term. But when asked about the future for First Horizon (FHN) – Get First Horizon Corporation Report now that the company received a takeover bid, Cramer said it’s time to sell.
Lightning Round
In the Lightning Round, Cramer was bullish on SoFi Technologies (SOFI) – Get SoFi Technologies Inc Report, ZIM Integrated Shipping (ZIM) , Zebra Technologies (ZBRA) – Get Zebra Technologies Corporation Class A Report, Dominion Energy (D) – Get Dominion Energy Inc Report, Bausch Health (BHC) – Get Bausch Health Companies Inc. Report and Snowflake (SNOW) – Get Snowflake, Inc. Class A Report.
Cramer was bearish on C3.ai (AI) – Get C3.ai, Inc. Class A Report and QuantumScape (QS) – Get QuantumScape Corporation Class A Report.
Helping Ukraine
In his “No Huddle Offense” segment, Cramer offered up three ways the U.S. could do more to help Ukraine. He said it’s clear that Russia needs help from China, which is why he suggested a “vaccines for peace” deal where the U.S. provides China with our Covid vaccines in return for China’s pressure on Putin to stop the war.
Second, Cramer said it’s time for former German chancellor Angela Merkel to return to the stage and speak directly with Putin to stop the war.
Finally, Cramer said it’s possible for Ukraine to win this war, but only if it can control the skies. That means the U.S. should send in all of the unmanned drones we can to let the Ukrainians target the artillery devastating their cities.
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