Cramer's 'Mad Money' Recap: Customer-Driven Market (Final)

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NEW YORK (TheStreet) -- "We are in a customer-driven market," Jim Cramer told his "Mad Money" TV show viewers on Wednesday.

He told investors that if they follow the customers, they'll know exactly how a company or sector is performing in this market.

Case in point, housing. Cramer explained that with rents rising and employment improving, more and more people are buying homes. And that's precisely why he likes the housing-related stocks like Masco (MAS), featured yesterday, along with companies like Home Depot (HD).

We're also building more cars in this country, said Cramer, and while that's not good news for the automakers themselves, it is great news for Honeywell (HON), which makes turbochargers, and others like Johnson Controls (JCI), a stock which Cramer owns for his charitable trust, Action Alerts PLUS.

The big cyclical stocks are also leading the markets, said Cramer, thanks to renewed strength in China.

So what's not working? Well for one, oil and gas stocks, thanks to plummeting natural gas prices here in the U.S. Companies that sell to health care, mainly hospitals, are also weak, as are those that sell into telco, think Ciena (CIEN).

Cramer said that any company that sells technology into the enterprise seems to be slowing as well. Then there are the banks, a group where the stocks are red-hot, but the growth isn't. With so many firms selling assets and divisions and others still laying off workers, Cramer said he's not sure how this group will be able to sustain their share prices for long.

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