Cramer's 'Mad Money' Recap June 26

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On days like today, where the market is selling off, "We circle the wagons around the stuff we really like and we sell the stuff we don't," Jim Cramer told viewers of his "Mad Money" TV show Thursday.

"The big institutional investors have lost all confidence in the market," Cramer said. "They're not like you."

"You have to accept these declines," Cramer said. Investors should raise cash by selling marginal positions and buying stocks that they like, he said.

Cramer pointed out that today's selloff was indicative of "pin action" around themes that aren't working. He pointed out that the airlines can't buy planes, so investors are selling out of Boeing (BA Quote), which makes planes, and Honeywell (HON Quote), which supplies components for planes.

Similarly, he said, investors found out that General Motors (GM Quote) is running out of cash, so they sold out of Johnson Controls (JCI Quote), which makes car parts. Oracle (ORCL Quote), which supplies technology that is used by banks, similarly suffered when the financial sector went down, he said.

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Research In Motion (RIMM Quote) reports a pretty darn good number," Cramer said. "If the best tech story isn't working, the market says 'who needs tech?'"

If a company needs money, if it supplies raw goods, it can't meet the estimates the market sets, Cramer said. "Only gold rallies," he said. "Gold rallies when nothing else is working."

"Right now I don't like the market other than a couple themes that I'm suggesting you circle the wagons around," Cramer said. "When even Conoco (COP Quote) and Rio (RIO Quote) and even the sacred Potash (POT Quote) go down, I need you to think opportunity, not enemy," he said.

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