Cramer's 'Mad Money' Recap: Getting Defensive (Final)

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NEW YORK (TheStreet) -- "On down days like today, you have to stick with your game plan," Jim Cramer told the viewers of his "Mad Money" TV show Thursday.

Last Friday, Cramer laid out his plan for this week, and now that his predictions are coming to fruition, he said investors need to stick with the plan.

Cramer warned Friday that if stocks like General Mills (GIS Quote), Bed Bath and Beyond (BBBY Quote), and Paychex (PAYX Quote) were met with resistance when they reported, that would send a signal that it's time to get more defensive.

And that's exactly what happened, he said. In addition, the latest read on housing sales and oil inventories both signaled that things are not recovering as quickly as expected.

Cramer said this news means we have to follow his plan, take some profits, and prepare for a possible 3% to 5% decline in the markets. He said investors need to stick with the investment themes they believe in, buy in increments on the way down, and always keep a shopping list of stocks they'd like to buy handy.

Cramer also predicted last week was that weakness in Research In Motion (RIMM Quote) might pull down the mobile Internet stocks. That happened, said Cramer, and now's a great time to buy into that group.

Likewise with AAR Group (AIR Quote), which had good things to say. Cramer said that stock is signaling that all is well in the aerospace sector.

For defensive names, Cramer likes Procter & Gamble (PG Quote), a stock which Cramer owns for his charitable trust, Action Alerts PLUS, along with Kimberly-Clark (KMB Quote). "We're staying defensive," said Cramer, "until proven otherwise."