TheStreet.com TV Recap: Lighten Up on the Financials

Jim Cramer says there's no denying there's a lot of problems in the stock market currently.

"I think it's a real mistake to be overconfident here," Cramer told Farnoosh Torabi on TheStreet.com TV's Wall Street Confidential Web video Wednesday.

Most of the calls Cramer said he gets are from people who ask him when they should buy, but people should understand that no one's really sold.

That said, the market can have an "oversold bounce" here, at least to the extent that this particular market has been oversold, Cramer continued. "It's as oversold as it's been in some time."

Cramer said he believes it's "really important" for investors to use this time to lighten up in some of the weaker areas. These areas, he said, are the financials and the brokers.

"JPMorgan Chase (JPM Quote - Cramer on JPM - Stock Picks) has been my proxy for 'no good' because it doesn't have a big yield, and frankly it has nothing special other than corporate, which is a little bit in trouble," Cramer said.

Moreover, anything that requires a loan, whether it's a house on the consumer end, or a buyout on the corporate end, is "wrong," he said.

On the other hand, anything that has international exposure or is related to oil, such as Caterpillar (CAT Quote - Cramer on CAT - Stock Picks), which Cramer owns for his charitable trust, Action Alerts PLUS, is "right."