Cramer's 'Mad Money' Recap: Jan. 5

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Jim Cramer rang in the new year on his "Mad Money" TV show Monday, saying the "worst may be behind us" after the many harrowing events of 2008.

Cramer said the markets still have a lot of work ahead, but with the possibility of another Great Depression off the table, there are some positives in the markets.

For example, he said the forced selling by hedge funds is largely over. H said the same also could be said with the financial panics caused by Bear Sterns, Lehman Brothers, AIG (AIG Quote), Fannie Mae (FNM Quote) and Freddie Mac (FRE Quote).

"There are no more crises waiting in the wings," said Cramer.

However, Cramer tempered his optimism by saying that markets still depend too much on what happens in Washington after Obama takes office. "It's hard to like a market that needs Washington," he told viewers.

Cramer said there does appear to be life in the markets but advised investors should not to chase rallies.

He said the game plan for 2009 is the same as 2008: Wait for pullbacks, buy on weakness, and scale out of stocks as they rally.

Cramer: Dow 30 in '09 Playbook

HP Stands Tall

Of the 30 stocks in the Dow, Cramer said he has only five favorites. His first is Hewlett-Packard , a stock which he owns for his charitable trust, Action Alerts PLUS.

Cramer called HP an incredibly cheap growth stock with great management. The stock currently trades at just 8.7 times its forward earnings with a 13.5% long-term growth rate. Historically, said Cramer, HP trades at 17 times earnings, making this $36 stock worth at least $42 to $46 a share.