'RealMoney' Radio Recap: Shorts Run for Cover

Hedge funds are feeling the pressure, said Jim Cramer on Friday on his "RealMoney" radio show. The average fund may be up about 8% to 12% this year, said Cramer, because they've been successful shorting stocks. But there's a sea change in the air, he said.

Cramer is sensing a change, because while stocks such as Broadcom(BRCM Quote) and Qualcomm(QCOM Quote) may have gone down at first on "silly" downgrades, they aren't down anymore.

Also, Texas Instruments(TXN Quote) fell recently, and Cramer said to buy. When it went down some more, he advised doubling down. That advice is also working big time, he said.

Other bullish developments, said Cramer, include money flowing into tech stocks and financial stocks, as oil stocks have fallen. The incoming Federal Reserve chairman seems less set in his ways than the last one. A cold snap has ignited retail stocks. A takeover of Georgia-Pacific(GP Quote) has been bullish for industrial stocks. And General Motors(GM Quote) may be going bust, but instead of bringing down the market, everyone buys Toyota(TM Quote), he said.

Cramer believes hedge funds have no choice but to cover their shorts and go long, lest they see their gains for the year wiped away. The individual investor is back, said Cramer, and that investor cares about the market for the first time in six years, he said. They won't stop caring in a day or two, he said.

If Cramer were at his hedge fund, he'd tell his team no more shorting for the rest of the year. "It's too late to short. It's time to buy," he said.

Cramer Unstumped

Stocks Under $10 co-author Will Gabrielski joined Cramer to decipher stocks that had stumped Cramer on Thursday's during the "Stump Cramer" segment of the show.

Gabrielski said CyberSource (CYBS Quote), an electronic payment solutions provider, is an interesting company, but at 45 times earnings, the stock is "really expensive." Instead, he likes CheckFree (CKFR Quote) and Online Resources (ORCC Quote), a stock covered in the Stocks Under $10 newsletter.