Cramer's 'Mad Money' Recap: July 7

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"Wall Street is a brutal fashion show," Jim Cramer told viewers of his "Mad Money" TV show Monday.

He likened the current action in the market to vagaries of the fashion industry, where styles change on a moment's notice. "The export-oriented stocks that have been working so well for us are going out of style," he said. "It's now recession season on Wall Street."

Cramer said the market is headed towards an oil-induced recession. With earnings expectations down 11% from last year's levels, Cramer told viewers it's time for a shift in strategy. He advocated using any strength in the market to take profits and reposition into defensive stocks and cash.

Cramer drew a comparison of today's markets to that of 1990-91, when the S&P500 saw a drop of 16% due largely in part to weakness in the financials.

During that same period, he observed, biotech stocks led the way. For example, Genentech (DNA Quote) rose 33%, while Amgen (AMGN Quote) gained 133%.

"If you want to get through the next three months," Cramer told viewers, "you need secular growth stocks with pricing power and no problems with raw costs."

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