Cramer's 'Mad Money' Recap for July 22

Cramer also advised a listener to sell Kraft(KFT Quote) and recommended Tyson Foods(TSN Quote).

Stupid Thinking

Not all financial services stocks need to go down because of American Express'(AXP Quote) "simply miserable quarter," said Cramer.

American Express was down nearly 7% following its earnings and it affected other banking stocks. Bank of America(BAC Quote) and JP Morgan(JPM Quote) all stayed down Tuesday.

But there is no reason to believe that bad news at American Express is bad news for JP Morgan, said Cramer. "That's kind of stupid thinking," he said. "Don't panic because of traders who can't see the difference between American Express and JP Morgan," he said.

The difference between American Express and banks is that the former makes money from transaction fees, membership fees and interest on loans.

For banks such as JP Morgan and Wachovia(WB Quote), deposits are the key.

If anything, American Express has more in common with retailer Target(TGT Quote). Target has a big credit card business, but it also has a retail component to fall back on, which is not the case with American Express.

That why Cramer prefers Target. "American Express has unfairly brought down all banks. Use it as an opportunity to buy," he said.

Cramer suggested Wachovia, Bank of America, US Bancorp(USB Quote) and JP Morgan as his four strong financial plays.

Mad Mail

In this segment, Cramer said he has lost a lot of money on Annaly Capital Management(NLY Quote) and would not recommend it. It has too much leverage and he cannot go back to the stock after the money he has lost on it, said Cramer.