Click here for an archive of Cramer's "Mad Money" recaps.
"It's time to trust the markets and trust this upward move," Jim Cramer told viewers of his "Mad Money" TV show Friday.
This move is so powerful that it almost doesn't matter which companies you buy, he explained, as long as they're in the sectors that matter.
Cramer said a panicked
Federal Reserve, a desperate Republican Party and a "raving bunch of Democrats" are contributing to the new bull market. In this environment, he said, everything will move higher.
Cramer said this market is so good that he made the unprecedented move of removing Lee Scott, Chairman and CEO of
Wal-Mart(WMT Quote - Cramer on WMT - Stock Picks), from his "Wall of Shame." "It doesn't matter who runs Walmart," he explained, "because people shop at Wal-Mart during times of economic slowdowns."
In this market, even the bad news doesn't matter, he explained. Cramer cited
Freeport(FCX Quote - Cramer on FCX - Stock Picks), which he owns for his charitable trust
Action Alerts PLUS, as a stock that's up almost 20 points since it reported disappointing earnings.
He also said
McDonald's(MCD Quote - Cramer on MCD - Stock Picks) and
CVS Caremark(CVS Quote - Cramer on CVS - Stock Picks), are following a similar pattern. He owns both stocks for his
Action Alerts PLUS portfolio.
Cramer remains bullish on retailers. He likes
TJ Maxx(TJX Quote - Cramer on TJX - Stock Picks). He's also still a fan of the railroads including
Union Pacific(UNP Quote - Cramer on UNP - Stock Picks),
CSX(CSX Quote - Cramer on CSX - Stock Picks) and
Burlington Northern.
"And let's not forget the agriculture stocks," he reminded viewers.
But there's a special place in Cramer's heart for the bank stocks. Cramer said he likes
Capital One(COF Quote - Cramer on COF - Stock Picks), which recently raised its dividend and boosted its stock buyback.
He also likes
Merrill Lynch(MER Quote - Cramer on MER - Stock Picks),
Washington Mutual(WM Quote - Cramer on WM - Stock Picks) and
Citigroup(C Quote - Cramer on C - Stock Picks). The latter is a stock which he owns for his
Action Alerts PLUS portfolio.
Cramer also reiterated a buy on
NYSE Euronext(NYX Quote - Cramer on NYX - Stock Picks), which he also owns for his
Action Alerts PLUS portfolio. He said he would buy NYX before it reports its earnings on Tuesday.
And finally, responding to Friday's news, Cramer said he would also buy
Microsoft(MSFT Quote - Cramer on MSFT - Stock Picks) at under $30 a share, after its surprise takeover bid for
Yahoo!(YHOO Quote - Cramer on YHOO - Stock Picks).
Turning Trash into Profits
For "Speculation Friday," Cramer said investors need to return to China, and look into
Gushan Energy(GU Quote - Cramer on GU - Stock Picks). Chinese stocks have been out of favor recently, Cramer said, but that won't last for long.
Gushan Energy, a Chinese maker of biodiesel fuels, is profitable and growing rapidly, he said. The company grew its earnings by 48% year over year and maintains a long-term growth rate of 20%.
Cramer says Gushan has three things going for it. First, it's a play on the growing middle class in China that needs more energy. Second, China has a real desire for cleaner air. The Chinese government has mandated that by 2020, 15% of China's energy must be renewable.
Finally, Gushan's stock has been flying under the radar of Wall Street. The stock has hovered around its offering price since it debuted last December, but Cramer said the stock will head higher once the company gains some attention.
A Good Bet for the Housing Rebound
Cramer told viewers that the single best risk-reward offering in the market right now is toolmaker
Black & Decker (BKD Quote - Cramer on BKD - Stock Picks).
"This is the right stock at the right price at the right time," he said. Black & Decker is a great company, but also greatly hated on Wall Street, he explained.
Cramer said Black & Decker is a play on the coming rebound in housing. Consumers, he expects, will start fixing up the homes that they have been unable to sell.
All of the bad news has been "baked" into the share price, Cramer explained. The current price presumes a recession is coming, and that means the stock isn't likely to go any lower.
TheStreet.com Staff
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