Cramer's 'Mad Money' Recap: How to Cook Bear

Updated from 10:25 p.m. EST

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There's nothing like a little bear stir-fry after a big up day on Wall Street.

And Tuesday certainly qualified as that, with the broad U.S. averages all climbing 1% or more.

The surge in equities had Jim Cramer in a festive mood on his "Mad Money" TV show, and he celebrated the 136-point jump in the Dow Jones Industrial Average and impressive advances in the S&P 500 and Nasdaq by donning a chef's hat, dicing up some ursine toys and putting the skillet on the burner.

But enough about the session that was. The party's over, and it's already time for traders and investors to move forward and get ready for another round.

Cramer's top idea of the night was Caliper Life Sciences (CALP Quote), a company that makes tools to help drugmakers develop new products.

"We live in a bloated plutocracy where only the wealthiest people have a voice," Cramer said at the start of his show. "I want to open the plutocracy to the common man."

A good way to get in, he said, is with Caliper. Cramer said he doesn't expect 2006 to be a big year for pharmaceuticals makers because many of them are focused on cost-containment efforts. Eventually though, they'll have to create new drugs as patents on existing medicines expire, and Caliper is in the sweet spot to aid in all those development efforts.

"In a war, you don't bet on either side. That's for losers," Cramer said. "You bet on the arms dealers."

Another stock to make Cramer's list of those worth buying was Petroleo Brasileiro (PBR Quote), better known as Petrobras, the Brazilian state-owned oil company.

"I think PBR's about to conquer Bolivia," he said. The reason for his optimism is that Bolivia has a lot of natural gas and it needs someone to develop its resources. That someone is likely going to be Petrobras, because the leftist government in Bolivia isn't inclined to let U.S. companies in.