Cramer's 'Mad Money' Recap: Rally Caps

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Jim Cramer and his "Mad Money" viewers reveled in Friday's rally, which pushed the Dow up more than 146 points and buoyed the Nasdaq to a six-month high.

But Cramer said there's more room to grow. "Don't go cashing out yet," he noted.

Contributing to the huge run-up in stocks on Friday, said Cramer, was a benign employment number that gave nobody a reason to sell, as well as a good earnings report from Alcoa(AA Quote).

However, the prime contributor to the surge in stocks was the negative betting by the hedge funds put in the wake of the London bombings. "This time the pessimists were wrong," Cramer said. As they scrambled to cover their shorts, stocks moved higher. And, "those that weren't nimble, were steamrolled."

But would Friday's rally extend into other sectors? Not if that sector is telecom, Cramer said. "I can't give you the all-clear in telco," he said. Similarly, Cramer added that he felt good about exiting bank stocks, as he continued to see a rotation into tech stocks.

Cramer also said he favored consumer-based manufacturers like Procter & Gamble(PG Quote) and General Mills(GIS Quote), rather than industrial names like 3M(MMM Quote), although he gave a shout-out to Boeing(BA Quote).

Picking Winners

However, for those who missed Friday's stock ascent, it's not too late, according to Cramer. "You can still pick winners in a market like this," he said.

One way to do so is by going back to that same well of winners, most of whom will continue to outperform. Cramer noted that six of the 10 biggest winners in the S&P 500 during the first half of 2005 were in the oil and gas sector - an area he continues to like, since he's still bullish on the underlying commodities.

Riffing through a list of the top 10, Cramer said he's still bullish on Valero Energy(VLO Quote), EOG Resources(EOG Quote), LSI Logic(LSI Quote), Nordstrom(JWN Quote), Sears Holdings(SHLD Quote), KB Homes(KBH Quote), Marathon Oil(MRO Quote), Sunoco(SUN Quote) and CMS Energy(CMS Quote).