Cramer's 'Mad Money' Recap for July 17

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With oil prices plummeting and bank stocks on the move to the upside, Jim Cramer asked the viewers of his "Mad Money" TV show, "how did the whole world turn upside down?"

Cramer said some good things are happening in the markets, and investors need to change their strategies to capitalize on them.

According to Cramer, three forces are driving the market higher. First is oil's inability to breach the $150-a-barrel level. Cramer said he's always believed that the rise in oil was due to supply and demand and not speculation.

He said oil is "just too high" at $150 a barrel. He said consumers are finally starting to cut their usage, leading to the decline in oil prices. He predicted oil could fall as far at $110 a barrel before stabilizing.

The second force driving the market is the financials. He said it's now clear that both the Federal Reserve and Securities and Exchange Commission are stepping in to bail out the sector.

With stocks like JP Morgan Chase (JPM Quote) and Comerica (CMA Quote) both reporting good results, Cramer said there may be life in the financials after all. He explained that the banks can use this strength in their stocks to raise capital and stay in business.

Finally, Cramer said the home-build rate of single-family homes is finally slowing, allowing excess supplies to dry up and prices to stabilize. Cramer predicted the bottom in home prices should occur in 2009.

Cramer: Oil's Headed to $110

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