When will the sale end on the stock exchange? Jim Cramer told his Mad Money viewers on Tuesday that they should not expect an end to the pain until Apple (AAPL) was taken off the tariff and trade wars.
At the moment, money managers are pouring into the recession shares, which are in the middle of a slowdown in the economy. That's why we see strong rallies like Johnson & Johnson (JNJ), Clorox (CLX) and PepsiCo (PEP). That's why Verizon (VZ), indeed Verizon, is one of the strongest winners in recent weeks.
Cramer explained that money managers have chosen these few stocks, because if Apple becomes a trade war problem, then nothing will be certain.
In fact, Apple's demise began the day after the first speech by Vice President Mike Pence, which in early October included a tough conversation against China. Since then, every event has been viewed negatively, and Apple's stock lost 25% of its value in just two months.
Trading at only 1
Cramer and the AAP team review how tariff news affects their portfolio. Find out what they say to their club members and join the conversation with a free Action Alerts PLUS trial subscription.
Executive Decision: Salesforce
For its decision-making segment, Cramer welcomed Marc Benioff, chairman and co-CEO of Salesforce.com (CRM), after announcing another strong quarter.
Benioff said Salesforce continues to be the fastest-growing enterprise software company of all time and will continue to grow until 2019 and beyond. Every company is undergoing a digital transformation, and it must begin and end with the customer relationship.
In the case of Uber, Salesforce helps the company to not only improve relationships with its customers, but also to improve its drivers and the communities they serve. Salesforce also has a great partnership with Apple, and all Salesforce products now run natively on all Apple iPhones and iPads.
Benioff added that rebuilding the distribution relationship is only the beginning for many companies. That's why Salesforce offers apps for sales, customer service, marketing, analytics, app creation, community and more.
Read: Salesforce.com Rises in Late Trading According to Estimates
If you call it what it is
You are the type of investor looking for someone who is always optimistic, Cramer is not yours Type. "I call her the way I see her," Cramer said, and that's why he always has his honest opinion.
Being a permanent cop is not a smart investment strategy, Cramer explained, and it does not help either. At the moment, there is a risk to the market that our president and the Federal Reserve are doing the wrong things about tariffs and interest rates. Cramer said he sees a lot of risk, but not much upside right now, so he remains cautious.
There were only three times that Cramer had recommended the sale of everything, and those times were 1987, 2000, and 2007 Those were indeed the right times for the sale.
The markets are not there today, Cramer added. There are many things that can go wrong for stocks, he said. That's why they go for bad news but not good news. Once you understand these risks, you can make informed decisions, decisions that change as the situation changes.
In terms of real money, Cramer says we are at an important juncture before the G-20 and Jay Powell's speech, and he wants people to recognize the dangers. Learn more with a free trial subscription to Real Money.
Off the Charts
In the Off The Charts segment, Cramer contacted his colleague Mark Sebastian to find out what the CBOE Volatility Index, known as VIX, can tell investors in which direction the markets will move next.
Sebastian looked at a daily chart comparing the S & P 500 and the VIX in the last four months. Typically, the pair has a reverse relationship, with volatility increasing as the market falls.
After peaking at 29 points on October 11, the VIX reached a lower high on October 24, a signal to Sebastian that a low was forming. In fact, the S & P reached a low point later in the day, followed by a relief rally in which the VIX retreated.
Sebastian noted that during this last leg of the bear market, there was little panic as the VIX remained relatively calm. However, this is not the first time that the market has fallen without increased volatility.
Already in February we saw a similar pattern: the first leg of the decline saw a rise in the VIX, but the second leg of the fall in March without a peak
In its segment "No- Huddle Offense, "Cramer highlighted some stocks he still likes on this bear market. He said that Five Below (FIVE) is a great regional-to-national growth story, and although the stock could be hurt by increased tariffs, it is still a winner.
Canada Goose (GOOS) has been selling heavily after a secondary today, but Cramer said the weakness is a gift for a stock that has risen 99% this year and has much more room to run. The Canadian goose just reported a 20-cent profit per month.
Finally, there is Constellation Brands (STZ), the wine and spirits producer whose shares have fallen out of favor on Wall Street as investors fear cannabis interference. Cramer said he is not worried because Constellation is a fabulous operator involved in Canopy Growth (CGC).
Can all these names go further down? Of course you can. But Cramer said that if you can endure short-term pain, you will be rewarded with long-term gains.
In the Blitz Round, Cramer was on MongoDB (MDB), Ventas (VTR) Bullish Analog Devices (ADI), Iridium Communications (IRDM), Citigroup (C), JPMorgan Chase (JPM), Boston Scientific (BSX ) and PPL Corp. (PPL).
Cramer was on Welltower (WELL), Huntington Bancshares Bearish (HBAN), Randgold Resources (GOLD) and LKQ Corp (LKQ).
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