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Cramer's 'Mad Money' Recap: Next Week's Game Plan

Finally, Cramer gave the nod to Linn Energy (LINE), the oil and gas producer that's become embattled with the shorts over a planned acquisition. With an 8.7% yield, Cramer said the shorts will eventually relent, especially after the company moves to a monthly, rather than quarterly, distribution.

The Best Performers

As the quarter winds to a close, Cramer turned his sights to the best performing stocks of 2013.

They include Netflix (NFLX), up 134%; Best Buy (BBY), up 126%; Micron Technologies (MU), 119%; Hewlett-Packard (HPQ), 70%; and Advanced Micro Devices (AMD), which rose 67% so far in 2013.

Cramer featured both Micron and AMD on last night's show, noting the old-school semiconductors are now riding the coattails of new products like the PlayStation 4 and Xbox One.

Netflix was left for dead two years ago after the company failed to win customer approval for splitting itself into two services. But now the company is producing its own content and adding subscribers to its already 36 million. Cramer said Best Buy was also abandoned last year after the company's CEO left. But Best Buy's last quarter wasn't that bad, he noted, and the company is making serious efforts to turn itself around.

Of course, no mention of turnarounds would be complete without mentioning Hewlett-Packard, which is also cleaning up its act and attracting a lot of investor attention in the process.

Cramer said all of these stocks will be hot commodities for hedge funds and money managers going into the second half of the year.

Lightning Round

In the Lightning Round, Cramer was bullish on Radian Group (RDN) and American Axle (AXL).

Cramer was bearish on Pembina Pipeline (PBA), Cheniere Energy (LNG) and Frontier Communications (FTR).

Off The Charts

In the "Off The Charts" segment, Cramer followed up with colleague Marc Sebastian on where the markets might be headed after this week's selloff. Cramer highlighted Sebastian's research on June 11, when Sebastian predicted the markets were indeed poised for the carnage that ensued.

Sebastian noted a correlation between the S&P 500 volatility index, commonly known as "the VIX," and the average itself. He said that every time the VIX spikes above 20, as it did today, the markets typically head decisively lower. That pattern has held up in every rise in the VIX since 2008, excluding the lone example of the fiscal cliff in 2012, which was solved at the final hour.

The pattern is clear: Sebastian's research showed a sharp rise in the VIX is almost always a precursor to a big market decline. However, when the coloration stops and the market rises while the VIX doesn't budge, then you know the bottom has occurred.

Cramer said Sebastian was right two weeks ago, so he's believing him when he says that there is still more pain to come and the bottom in the markets might not yet be at hand.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer told viewers they need to be patient and not get aggressive because there are still many questions that have not been answered.

Cramer said this week's news taught him autos remain strong, but the consumer may not be. He said he learned the Federal Reserve is staying the course, which means that interest rates are key going forward.

But there are still many questions surrounding markets overseas, mainly banking stress in China, socialism in Brazil and weakening demand in India and Russia. Since any one of these things could hurt the markets, Cramer said caution will be the word going into this weekend.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

-- Written by Scott Rutt in Washington, D.C.

To email Scott about this article, click here: Scott Rutt

Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

At the time of publication, Cramer's Action Alerts PLUS had a position in LINE.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC Universal or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor TheStreet.com, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on TheStreet.com. The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in TheStreet.com, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.

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