RealMoney Radio Recap: Election Fright

"Election day is less than two weeks away, but the market is already reacting right now to the possibility of a big Democratic win," Jim Cramer said on his "RealMoney" radio show Thursday.

"This election has become why stocks go up or down," he said.

Lockheed (LMT Quote) is getting "killed" today, and big pharma is down as well, Cramer said. In addition, HMOs should be much higher.

To Cramer this means that when people wake up on Nov. 8, the Democrats are going to be in control of both houses.

People should be thinking about whether they have the "ability to weather the pain on the possibility of a Democratic takeover," he said. They might need to take some off the table and then buy it back later on.

"Be aware of anything big -- big pharma, big HMO, big defense, big oil. These are all targets," Cramer said. "They require caution until the Monday before the election."

Although "it can be pretty intimidating sifting through stocks and figuring out which ones you want to invest in," there are opportunities out there, he said. "You just have to be prepared and have conviction."

For example, when one of Cramer's "Mad Money" TV show viewers asked him about Joy Global (JOYG Quote) last night during the lightning round, he defaulted to Caterpillar (CAT Quote).