Cramer's 'Stop Trading!': Buy Caterpillar

Buy Caterpillar (CAT Quote - Cramer on CAT - Stock Picks), Jim Cramer said on CNBC's "Stop Trading!" segment Wednesday.

On news of an earthquake that has cost a great deal of damage and as many as 15,000 lives, Cramer spoke of the "rebuild in China," which he said was an equivalent of Hurricane Katrina in terms of infrastructure buildout. He pointed viewers to Caterpillar and Terex (TRX Quote - Cramer on TRX - Stock Picks) as plays on the news. He also recommended Cummins (CMI Quote - Cramer on CMI - Stock Picks). "They're all headed up ... because of the rebuild," he said.

Cramer said today's rally has a lot to do with bullish action from mortgage insurer Freddie Mac (FRE Quote - Cramer on FRE - Stock Picks). "They have gotten rid of the systemic risk," he said. He called Freddie Mac and Fannie Mae (FNM Quote - Cramer on FNM - Stock Picks) the "last of the black holes" for the financial crunch.

Cramer said Freddie is getting a lot of business, which he thinks may actually offset the company's losses. He said bears don't believe that's the case, but he pointed out that Freddie is a well-run company. Fannie is not as good, he said.

In the consumer discretionary space, Cramer said he had thought "the buyers would just call it quits" after the government's stimulus checks came in. He revised his forecast, saying maybe earnings from Kohl's (KSS Quote - Cramer on KSS - Stock Picks) tomorrow will be the time to sell.

He expressed his surprise at the continued rise of some retailers. "Certainly we know that Costco (COST Quote - Cramer on COST - Stock Picks) is better than we thought. ... TJX (TJX Quote - Cramer on TJX - Stock Picks) was a little disappointing, and look -- it goes up." He pointed out that Wal-Mart (WMT Quote - Cramer on WMT - Stock Picks) stock has traded back to where it was before reporting earnings.

"A lot of people feel that the worst is over," Cramer said. He pointed out that the Fed called victory when inflation numbers came in better than expected.

Cramer also said that the year of wind power may arrive this year, not next year as he had previously predicted. He pointed out bullish action in Fluor (FLR Quote - Cramer on FLR - Stock Picks) and First Solar (FSLR Quote - Cramer on FSLR - Stock Picks) as evidence of alternative energy stories.

He also said that Research In Motion (RIMM Quote - Cramer on RIMM - Stock Picks), Apple (AAPL Quote - Cramer on AAPL - Stock Picks) and MasterCard (MA Quote - Cramer on MA - Stock Picks) are offering leadership in the economy.

On the housing crisis, Cramer said that Toll Brothers (TOL Quote - Cramer on TOL - Stock Picks) CEO Bob Toll was "negative negative negative" when the two spoke on last night's "Mad Money" TV show. He predicted that the housing problem in Florida would be much better in 18 months.