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Cramer's 'Mad Money' Recap: Capitalizing on Market Panic (Final)

Search Jim Cramer's Mad Money trading recommendations using our exclusive Mad Money Stock Screener and watch Jim Cramer's Mad Money Post Game video exclusively on TheStreet.com.


NEW YORK ( TheStreet) -- "Panic is not a strategy," Jim Cramer reminded his "Mad Money" TV show viewers Monday, as he repeated one of his mantras that "no one ever made a dime from panicking."

Cramer said three days ago, when the market cratered, investors were panicking in droves, selling anything and everything. Yet Cramer reminded viewers that there is almost always a better time to sell. Even in bad markets, he said, there will be periods of calm when the markets firm and get a little boost.

Such was the case over the past two weeks. Cramer said that two weeks ago, when Treasury Secretary Tim Geithner reassured the markets that a worst-case in Europe was off the table, the markets didn't believe him. Then last week, when the Federal Reserve cited "significant" downside risks to the economy, the bottom fell out. But today, rumors that the leaders in Europe are considering a TARP-style rescue package for their banks seems to make everything better.

Cramer said that manmade crises always have manmade solutions, and this time it no exception. He said that the markets are always a self-correcting mechanism, which is why selling in the middle of the panic is never the right decision. Cramer told viewers to keep a shopping list of stocks they're ready to buy, and use big sell-offs to get the prices they're looking for.

Among Cramer's list of stocks to consider were FedEx (FDX) and Norfolk Southern (NSC), two stocks that got crushed last week through no fault of their own. Cramer also liked DuPont (DD - Get Report), a stock which he owns for his charitable trust, Action Alerts PLUS , as well as Johnson & Johnson (JNJ), Boeing (BA) and McDonald's (MCD), all high yielders.

Also making the list were International Paper (IP) and Clorox (CLX).

Cramer told viewers to remember this big up day the next time the market craters. He said while no one ever made a dime from panicking, many have made fortunes by taking advantage of those who do.

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