Cramer's 'Mad Money' Recap: Gaming the Russell Rebalancing

Last year at this time, Jones had one analyst covering it; the company got into the Russell index, and now there are five analysts.

Additionally last year, a total of 228 stocks were added to the Russell 2000, out of which 111 went higher and 98 went lower. Even though this might seem like 50-50 odds, the stocks that went up moved much more than those that went down, Cramer said.

In fact, the top five performers of the Russell index last year -- Sigma Designs (SIGM Quote), Matrix Service (MTRX Quote), Bradley Pharmaceuticals (BDY Quote), Jones Soda and Advanced Magnetics (AMAG Quote) -- are all up more than 100%, Cramer said, and all came from different sectors.

The rebalance has to happen, Cramer said. Don't read about this in the papers after the fact.

Three for All

Cramer said he has three favorite stocks that he believes are likely to get added to the Russell 2000.

Even if the stocks aren't added to the index, Cramer likes these plays. But remember, Cramer reminded viewers, to not trade after hours, to use limit orders and to buy these picks incrementally.

The first of Cramer's Russell 2000 stocks is Coleman Cable (CCIX Quote), a company that makes electrical wire and cable, he said.

Coleman is now big enough to be included in the index and only has one analyst covering it, Cramer said. However, this should change if it joins the Russell 2000. He said he could even see a company such as General Cable (BGC Quote) buying it.