Cramer's TheStreet.com TV Recap: Games Hedge Funds Play

It doesn't take much money to sway the stock market, Jim Cramer said on TheStreet.com TV's Wall Street Confidential video Webcast Friday.

In fact, when Cramer was short stock during his hedge fund days, meaning he was betting the stocks would fall, he would look to create a level of activity beforehand that could drive the futures lower, he told Aaron Task, the host of Wall Street Confidential.

Conversely, when he was long and wanted to make things "rosy," he would commit $5 million in capital to a handful of stocks and make sure they were higher, Cramer said. However, as the market is bigger now, an investor would need $10 million to knock stocks down or drive them up.

And sometimes, hedge fund investors boost the futures to create a false sense of excitement that can quickly turn negative when the sellers come in, Cramer said. He encouraged anyone in the hedge fund game to follow this strategy, as it's legal and a "very quick way to make money."

When Task asked if the fact that there are so many more hedge funds intensifies market moves, Cramer said hedge funds are positioned long and short, not just long like mutual funds.

It's "vital" for the next six days [trading days], after which it's "pay day," to control the market and not let it lift if your fund is short and/or badly trailing the S&P 500 year to date, he continued. Therefore, when market players are presented with a stock like Research In Motion (RIMM Quote), "it's really important to knock it down because it's the fulcrum of the market today."