Cramer's Wall St. Confidential: More Room to Run

In other topics of discussion:

Cramer advised people to sell Home Depot (HD Quote) and buy it back at a cheaper price. Although market players are saying the retailer has become a target for a leveraged buyout, this is untrue, he said.

"Home Depot is too big for an LBO firm to fix it," Cramer explained. "The main thing about Home Depot is that it was run as a financial company by [former CEO] Bob Nardelli ... in a competitive market where Lowe's (LOW Quote) and Costco (COST Quote) are more fun to go to."

The company needs to spend more on merchandising and marketing the stores, he continued.

Wal-Mart (WMT Quote) is another retailer Cramer believes people should sell. The problem at Wal-Mart is that no one wants to shop there, he said. "Underinvesting in the stores and trying to save its bottom line is not a way to save a retailer."

He said he would rather own Target (TGT Quote) or apparel retailers. But Cramer warned viewers to avoid apparel companies selling warm winter clothes.

Taking a look back at the past year, Task called 2006 a "blockbuster" year and said that although not a lot of people expected it to be so, Cramer did.

The way to look at the current market, Cramer said, is that it's been good for the past five months. Because stocks really "took off" in July, he said he believes there is enough momentum from that period to carry it through for another six to seven months.

"The lesson of last year is that the worry should be that you are not bullish enough," Cramer said.

Right now inflation is low, profits are high and there's a good possibility the Fed could cut rates, he went on to say. "Being careful could be reckless here."