Cramer's 'Mad Money' Recap: Money Managers 101

Therefore, the mutual funds have picked Exxon, because this company doesn't believe in oil either and it shows by how little it's spending on oil drilling, compared with buying back stock, he said.

Mutual funds are huge and buy huge amounts of stock to set up their positions in a stock, Cramer said. Probably close to half the mutual funds out there are buying Exxon, so "go rent some until the year-end before it hits $100," he advised.

Are You Diversified?

In the "Am I Diversified" segment of the show, Cramer's first caller held the following five stocks in his portfolio: Cisco (CSCO Quote), Merrill Lynch (MER Quote), Walgreen (WAG Quote), Halliburton (HAL Quote) and Goldman Sachs (GS Quote), the latter two of which Cramer owns for his charitable trust, Action Alerts PLUS.

With a pair of brokers in Merrill and Goldman, Cramer said he couldn't bless the portfolio as diversified. He suggested selling Merrill, even though he said it's a good company.

Cramer's second caller owned the following five stocks: Qualcomm (QCOM Quote), Cisco, Nokia (NOK Quote), Best Buy (BBY Quote) and Federated Department Stores (FD Quote).

"If we were playing poker, you would have a full house," Cramer told the caller. But in this game, he said he could not bless a portfolio with three tech stocks and two retailers.

He advised keeping Best Buy and Cisco out of the five, and suggested picking up a financial play, a health care stock, maybe a defense company.