Cramer's 'Mad Money' Recap: Capitalizing on Bad News

Thursday may be problematic, Cramer points out, when Merrill Lynch (MER Quote) and Washington Mutual (WM Quote) report.

Both, he expects, will report terrible numbers and sees no opportunities in either stock. He does, however, see opportunity in Parker Hannifin (PH Quote) which also reports on Thursday. He rates this company a buy, saying it "is firing on all cylinders," and has a buyback program.

Finally on Friday, Cramer likes Schlumberger (SLB Quote) and would be a buyer, but only if oil prices rise next week. If oil goes down, "take a pass," says Cramer.

Stick With Gold

"Gold," Cramer says, "is one area that has delivered and should keep delivering."

His absolute favorite gold stock remains Yamana Gold (AUY Quote).

Cramer welcomed Peter Marrone, chairman and CEO of Yamana Gold, to the show for an update. Marrone reiterated that his company produces gold at $250 to $270 per ounce, well below the industry average.

Marrone said his company is continuing to expand its operations and feels there is a "perfect storm" that will cause gold prices to rise significantly higher.

Cramer also likes Barrick Gold (ABX Quote) but feels Yamana can provide insurance for your portfolio and would be a buyer.

An Industrial Stock on the Rise

One sector that will benefit from continued interest rate cuts will be the beat-up industrial companies, Cramer says.