Cramer's 'Stop Trading!': Buy Caterpillar

Buy Caterpillar CAT, Jim Cramer said on CNBC's "Stop Trading!" segment Wednesday.

On news of an earthquake that has cost a great deal of damage and as many as 15,000 lives, Cramer spoke of the "rebuild in China," which he said was an equivalent of Hurricane Katrina in terms of infrastructure buildout. He pointed viewers to Caterpillar and Terex TRX as plays on the news. He also recommended Cummins CMI. "They're all headed up ... because of the rebuild," he said.

Cramer said today's rally has a lot to do with bullish action from mortgage insurer Freddie Mac FRE. "They have gotten rid of the systemic risk," he said. He called Freddie Mac and Fannie Mae FNM the "last of the black holes" for the financial crunch.

Cramer said Freddie is getting a lot of business, which he thinks may actually offset the company's losses. He said bears don't believe that's the case, but he pointed out that Freddie is a well-run company. Fannie is not as good, he said.

In the consumer discretionary space, Cramer said he had thought "the buyers would just call it quits" after the government's stimulus checks came in. He revised his forecast, saying maybe earnings from Kohl's KSS tomorrow will be the time to sell.

He expressed his surprise at the continued rise of some retailers. "Certainly we know that Costco COST is better than we thought. ... TJX TJX was a little disappointing, and look -- it goes up." He pointed out that Wal-Mart WMT stock has traded back to where it was before reporting earnings.

"A lot of people feel that the worst is over," Cramer said. He pointed out that the Fed called victory when inflation numbers came in better than expected.

Cramer also said that the year of wind power may arrive this year, not next year as he had previously predicted. He pointed out bullish action in Fluor FLR and First Solar FSLR as evidence of alternative energy stories.

He also said that Research In Motion RIMM, Apple AAPL and MasterCard MA are offering leadership in the economy.

On the housing crisis, Cramer said that Toll Brothers TOL CEO Bob Toll was "negative negative negative" when the two spoke on last night's "Mad Money" TV show. He predicted that the housing problem in Florida would be much better in 18 months.