Cramer's 'Mad Money' Recap: Two Roads to Recovery

Cramer continued with his second way of playing the recovery -- as a momentum investor.

Here, he said, investors should look at the new-high list."

Cramer has liked EMC (EMC Quote - Cramer on EMC - Stock Picks) since July as a play on the VMware (VMW Quote - Cramer on VMW - Stock Picks) IPO. EMC, which he owns for his charitable trust, Action Alerts PLUS, is up less than 3% since then.

The company owns 87% of VMware's equity, a stake now valued at $6 billion more than in July. VMware stock, offered at $29 on Aug. 13, hit $70 Thursday.

Cramer compared the EMC and VMware relationship to that of Cypress Semiconductor (CY Quote - Cramer on CY - Stock Picks) and its spinoff SunPower (SPWR Quote - Cramer on SPWR - Stock Picks). Cypress is up 52% since the spinoff.

Cramer believes that EMC, which trades at 11 times next year's earnings, is cheap. Furthermore, its data storage business is also doing well.

Although he looks at EMC as a key play for momentum investing, Cramer told viewers to "wait a little while" to buy in.

Sell Block

In his "Sell Block" segment, Cramer focused on the $80-to-$120 stocks he liked in early July. But because these stocks are down 4.2% since, Cramer admitted that he "misjudged the market." The S&P is down 4.5%.

Of all his $80-to-$120 picks, Cramer still likes Boeing (BA Quote - Cramer on BA - Stock Picks), down 3.2% since July; ConocoPhillips (COP Quote - Cramer on COP - Stock Picks); Terex (TEX Quote - Cramer on TEX - Stock Picks), which he was too early on; and Caterpillar (CAT Quote - Cramer on CAT - Stock Picks). Both Terex and Caterpillar are levered to construction. He owns CAT and COP for his charitable trust, Action Alerts PLUS.

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