'RealMoney' Radio Recap: Market Madness

"This is a show. It's a Broadway production," said Cramer. "These panels are just theatrics for Congress people to demonstrate that they are with you and sympathetic to higher gasoline prices."

But only 2% of the world's oil is controlled by U.S. companies, and OPEC controls the pricing, he said. U.S. oil companies are only "going along for the ride."

"I say you go along with them."

Cramer said that profits aren't going away for the oil sector, but that now there's a new pecking order. He said his top picks now are Ultra Petroleum(UPL Quote), ConocoPhillips and Occidental Petroleum(OXY Quote), a stock he owns for his ActionAlerts PLUS charitable trust.

Urban Jungle

Cramer said that Urban Outfitters(URBN Quote) has moved lower because the stock's two largest holders, Goldman and Citigroup(C Quote), are letting go of the shares on worries that the retailer's look could be too casual.

When a large institution tries to dump a million shares, it can knock down the stock of a company the size of Urban Outfitters, he said.

The company had been one of the fastest-growing retailers in the country, but the stock slipped in recognition of the fact that sales slowed, he said, adding that in a week or two the company will file its 10-K quarterly earnings report that will likely corroborate evidence that business has slowed.

The stock could take another dip then, he told a caller.

But Urban Outfitters just announced a huge share buyback, which means that the company itself thinks the stock is cheap, Cramer said, and he believes the company can reaccelerate.

Is it the best retail story? No, he said, giving that title to Best Buy(BBY Quote) or Sears(SHLD Quote). "But I like the odds for Urban Outfitters," he said, adding that he would think about buying into this weakness.

Another caller wanted to know Cramer's take on defense contractor Rockwell Collins(COL Quote).

"When I hear the president say that the Iraq war is under control and then [defense stocks] hit 52-week highs ... I say to myself, wow, maybe the war ain't going so well," Cramer said.

Plus, he added that Congress just wrote a blank check on military spending.

"There's nothing in the world like investing alongside the government in defense," he said. That's why he said now is the time to look at General Dynamics(GD Quote), Lockheed Martin(LMT Quote), L-3 Communications(LLL Quote) and Rockwell Collins. "These companies are making money hand over fist."

Nabors(NBR Quote) has just fallen further on news that it has been subpoenaed by the federal government over an alleged oil spill, but Cramer told a caller that the company is "best-of-class in the field."

"I myself would not own options on Nabors," he said. "I think you're putting a gun to your head. You're forcing yourself to be in or out of the stock."

But Cramer said he likes the company and would think about buying it while it's down from its high. He also said that he likes GlobalSantaFe(GSF Quote) and Schlumberger(SLB Quote).

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