Cramer's 'Mad Money' Recap: April 20

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After today's 290-point sell-off in the markets, Jim Cramer simply said "ouch" to the viewers of his "Mad Money" TV show on Monday.

He said that today's decline -- the biggest since the market bottom in March -- has reminded us that that bear can still waken from its slumber.

But Cramer also reminded viewers that they can't let short-term fluctuations in the market scare them. He said despite the market's gyrations, the fact remains that things are still better off today than they were in March.

To illustrate his point, Cramer returned to his "Obama Index" basket of stocks created on Jan. 20, inauguration day. After starting at 100, the index slipped to just 49.9 on March 6, before rallying back into the green, excluding today.

Cramer said simply that Obama's moves are working -- whether its increased regulation, changes in the tax and accounting standards, or even his cap-and-trade initiatives. He said Obama has reversed the road to Dow 6,300 we were once traveling on.

Just six weeks ago, Wall Street pundits were calling for the nationalization of all of the banks. Yet today, real winners like JPMorgan Chase (JPM Quote), a stock which he owns for his charitable trust, Action Alerts PLUS, have emerged.

Cramer said if there's one thing that kills an economy, it's inventory. He said excess inventory is not only the enemy of retail but it clogs up the entire economic system. And he said companies are telling us that inventory is lower for homes, computers, cell phones and televisions.

"A new cycle is struggling to emerge. It just needs a little more time," he said.