Cramer's 'Mad Money' Recap: July 7

He said that traditional recession stocks would normally include the food and beverage names, but with raw costs rising, these stocks, with perhaps the exception of Heinz (HNZ Quote) and General Mills (GIS Quote), are the wrong move for this market.

"People looking for defensive stocks have nowhere else to turn," said Cramer will spend the rest of the week talking about his favorite biotech names.

Bullish on Genentech

Cramer lauded health care as "the safest sector around" and tabbed Genentech(DNA Quote) as his first biotech favorite. "The Street wants year-over-year growth and I think Genentech can deliver," he said.

Cramer credits much of Genentech's strength and future to its cancer-fighting drug Avastin. He called Avastin a "wonder drug," noting that while the drug doesn't cure cancer, Genentech has been able to continually find new uses for it. Avastin, he said, is now used for not only breast cancer but also for colon and lung cancer, with several other treatments in development.

Cramer also likes Genentech for its myriad other drugs and its strong drug pipeline, which he feels will give the stock many catalysts over the next year.

Cramer said it's time to buy shares of Genentech off the company's negative press from a recent New York Times story. He called the Times story a non-event and said the resulting weakness in the shares provides a perfect entry point to buy the stock.

Cramer also noted that sales of Avastin, which have been sluggish for the past three quarters, are set to beat expectations and begin boosting the stock.

A Cautionary Note

Cramer welcomed Larry Lee, chairman and CEO of RAM Energy (RAME Quote), to the show to discuss the future of natural gas, a commodity that is up 65% year to date, and natural gas stocks.

Lee said that with oil over $100 a barrel, the price of natural gas still has room to run to the upside. He called natural gas the best fossil fuel available in the U.S. and said there is plenty of it in the newly discovered shale fields throughout the country. He did caution, however, that some of the rampant land speculation in the shale areas, may be a bearish indicator.

Cramer said he felt the stocks in this sector got too hot, too quickly, but reiterated that he's bullish long-term on the sector. While he urged viewers to exercise caution, he called the recent pullbacks in many of the top natural gas stocks an attractive entry point.

Mad Mail

In this segment, Cramer told viewers that the fertilizer and mineral stocks are in a free-fall at the moment and that he's cautious. He said that Sociedad Quimica (SQM Quote) is still one of his favorite names once the bottom has been established.

Sudden Death

Cramer was bullish on Mastercard (MA Quote) and Frontline (FRO Quote).

Cramer was bearish on Boeing (BA Quote), Visa (V Quote) and General Maritime Corp (GMR Quote).

Lightning Round

Cramer was bullish on Procter & Gamble (PG Quote).

Cramer was bearish on Mosaic (MOS Quote), United States Steel (X Quote), Bank of New York Mellon (BK Quote) and Petrohawk Energy (HK Quote).

Want more Cramer? Check out Jim's rules and commandments for investing by clicking here.

For more of Cramer's insights during the Lightning Round, click here.