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Cramer's 'Mad Money' Recap: How to Trade the Rally (Final)

Stocks in this article: DECK PGH DIS CRM BMY SNY

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NEW YORK ( TheStreet) -- "Take advantage of the remarkable rally to make some changes," Jim Cramer told his "Mad Money" TV show viewers on Wednesday after a remarkable rally.

He said that today's rally tells us one thing: We were a lot closer to a European meltdown than we thought, but the cavalry has finally arrived.

Cramer explained that the bailout plan offered by the Federal Reserve, the ECB and the central banks of Canada, Britain, Switzerland and Japan has finally taken the worst case scenario off the table and allowed the markets to once again trade off of U.S. news for a change. That positive news included strong existing home sales and a positive employment report from Automatic Data Processing (ADP).

So what does this all mean for investors? Cramer said that it means that U.S. retail stocks can now be owned along with the oil stocks and any high-yielding stock. He said that with interest rate easing in China, the beaten down industrial stocks can also now be owned, stocks like Cummins (CMI), a stock which he owns for his charitable trust, Action Alerts PLUS .

Also on Cramer's recommended list, consumer discretionary stocks like Starwood Hotels (HOT) and Wynn Resorts (WYNN).

There are still stocks that cannot be owned, warned Cramer, and those include the financials and any stock where the fundamentals are weak. Cramer noted that eventually the sovereign debt of countries like Italy may be a good investment, but that time has not come yet and there are still many battles in the European bailout war yet to be won.

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