Cramer's 'Mad Money' Recap: This Rally Isn't Over

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"Today is a day to celebrate," Jim Cramer told viewers of his "Mad Money" TV show Tuesday.

He praised those investors who didn't panic after the market's horrible performance last week as well as those who were still "in the game."

Cramer said rallies like Monday's 417-point rise are inevitable when the market falls too far, too fast. But he said investors won't be able to prosper when relief comes if they panic during the down days and leave their positions. He expects the current rally to continue for the next few days.

"There are three takeaway's from the rally today," Cramer told viewers. First, he said, the market is going to continue to be volatile. "Investors who can't take the pain should use days like today to get out, if that's their temperament." He advised investors to always sell into strength and never into weakness.

Second, Cramer advised sticking with the stocks that have been working. He touted his favorite names in agriculture, oil, natural gas and gold, including: Chevron CVX, ExxonMobil XOM, Transocean RIG, Devon Energy DVN, Apache APA, Mosaic MOS, John Deere DE, Potash POT and Agnico-Eagle Mines AEM.

Finally, Cramer told viewers that the market will not reach a bottom until home prices decline. Although he praised the Federal Reserve's actions today as a step in the right direction, he still wanted to see even more relief for the sub-prime mortgage crisis.

A Global Market

Cramer went to the mat and recommended World Wrestling Entertainment WWE as a stock with consistent earnings growth and a great dividend. He welcomed Linda McMahon, CEO of WWE to the show to discuss the company's outlook.

McMahon said her company's growth is being driven by a worldwide expansion of WWE into the international markets. She cited strength in China as well as in Western Europe, two of the company's catalysts, and she said she is also seeing attendance growth in the U.S.

She touted the company's recent 50% boost in its dividend as both great for shareholders, but also for the company since the move preserves cash for continued expansion.

WWE recently reported earnings up 36% from a year ago, on revenue growth of just over 23%. Cramer said WWE trades at just 19 times the consensus 2008 estimates and yields 8% on its dividend. Since he first recommended WWE on Oct. 19, 2007, the stock is up 13.8%, including dividends.

Betting on Good News

Cramer recommended DuPont DD as the second of a number of high quality stocks he's talking about this week that have positive short-term catalysts to take them higher.

In DuPont's, it's an investor conference on Friday, which Cramer sees as the perfect opportunity for the company to announce positive developments to send the stock higher.

DuPont is a hybrid chemical and agriculture company, and with agriculture stocks in the spotlight, he expects the company to showcase its agriculture business and capitalize on it.

He likened the company to Monsanto MON, another chemical company that has reinvented itself as an agriculture powerhouse.

"There are not many stocks worth owning as long as home prices keep falling," said Cramer. "Caution," he said, "is still the word." But if investors stick with high quality names, the risk should be minimized.

Mad Mail

Cramer told a viewer that he really likes Textron TXT and is not worried about the company's finances.

He told another viewer that he's not worried about Bear Stearns BSC, saying the company is not in trouble and no one should be pulling their money out of it.