If this rally is going to continue, we need to see strong earnings next week, Jim Cramer told his Mad Money viewers Friday, as he laid out his game plan for next week's action.

On Monday, Cramer expects to hear good things from Adobe Systems (ADBE - Get Report) , but was skeptical of Under Armour (UA - Get Report)  , with founder Kevin Plank exiting the company. Cramer was also curious to see if Uber (UBER) can pare its losses.

Next, on Tuesday, we hear from Emerson (EMR - Get Report) and Cramer said this company should give us a read on the industrial economy. We also hear from upstart Peloton (PTON) , but Cramer was not expecting good news.

Wednesday brings earnings from a number of Cramer favorites, including CVS Health (CVS - Get Report) , Wendy's (WEN - Get Report) , Qualcomm (QCOM - Get Report) and Dexcom (DXCM - Get Report) . The only negative on the day likely will be Square (SQ - Get Report) , which needs a full-time CEO.

Earnings continue on Thursday with Walt Disney Co.  (DIS - Get Report) , which should update us on their streaming services, and also Take-Two Interactive (TTWO - Get Report) , Cramer's favorite game maker.

Finally, on Friday, we get a read on the auto sector, but with Ford (F - Get Report) and General Motors (GM - Get Report) struggling, Magna's (MGA - Get Report) earnings aren't likely to be good. 

Cramer and the AAP team are looking at everything from earnings and tariffs to the Federal Reserve. Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts Plus.

Momentum Is Building

Now that the homebuilders have pulled back, is this your chance to pounce? Cramer said the time may indeed be now.

The homebuilders struggled in 2018, as a combination of rising interest rates and rising commodity costs put a damper on home sales. But after bottoming in December, the group quickly recovered as macro trends began pulling in their favor.

Cramer said the global economic weakness has helped lower the prices of lumber, steel and other building materials. Interest rates also reversed course and a 30-year mortgage can now be had for as little as 3.8%. The earnings estimates for the home builders also became so low, they were easily beaten.

Cramer said he's a fan of buying the home builders. He recommended Lennar (LEN - Get Report) , which is up 28% for the year, D.R. Horton (DHI - Get Report) , up 16%, Toll Brothers (TOL - Get Report) , up 13%, and boutique home builder Taylor Morrison (TMHC - Get Report) , which trades for just eight times earnings. 

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Don't Ignore the Competition  

Sometimes what you see with your own eyes is far more valuable than what you hear from analysts, Cramer told viewers, as he dove into the details of GrubHub's (GRUB - Get Report) 40% decline this past Monday. Cramer said he wasn't surprised by the decline. In fact, he predicted it back in February. What was surprising, however, was how many analysts were blindsided.

Anyone who has food delivered knows that GrubHub is no longer the only game in town. There are dozens of venture-funded upstarts nipping at GrubHub's heels, willing to operate at a loss in order to steal market share. Yet 20 of the 30 analysts who cover GrubHub had buy ratings on the stock before Monday. Only one had a sell.

GrubHub's earnings actually weren't that bad, Cramer noted. What tanked the stock was the company's guidance and its letter to shareholders, where management appeared to live in a fantasyland where competition does not exist. In the letter, GrubHub admitted that customers are no longer loyal to their platform and are instead using multiple services.

Cramer gave praise to the lone analyst who had a sell rating on GrubHub and once again urged investors to steer clear of the food delivery space, as things will only get worse from here.

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Cramer Does His Homework

In his "Homework" segment, Cramer followed up on a few stocks that had stumped him during earlier shows. He was not in love with Fastly (FSLY) , the cloud applications provider that has seen its shares fall 34% over the past two months. The company only has 30% revenue growth and is not profitable, making it far less attractive than the best-of-breed cloud software companies.

Cramer reminded investors of the "Rule of 40," where a company's revenue growth plus its profit margins must be greater than 40. That means a company can be profitable with slow growth, or unprofitable with fast growth, but it needs at least one of the two. Fastly, he said, doesn't meet the Rule of 40, but there are plenty of other cloud stocks that do.

Growth for All

In his "No-Huddle Offense" segment, Cramer proclaimed that "everything we know about macroeconomics is wrong." Economics has always taught us that when unemployment is low, inflation rises. But even with our roaring jobs market, inflation is still nowhere to be seen. The old models simply no longer apply.

The Federal Reserve is in uncharted territory, Cramer continued. Our slumping GDP tells the Fed to cut rates, while the jobs report tells them to raise rates. The industrial economy continues to slump, but the consumer economy is humming along. Cramer said he salutes Fed chair Jay Powell for breaking from tradition, waiting for the data and acting accordingly. Our interest rates are still too high compared to the rest of the world, he said, and Powell was right to cut rates this week. 

Lightning Round

In the Lightning Round, Cramer was bullish on Proofpoint (PFPT - Get Report) , Marvell Technology (MRVL - Get Report) , Charles River Labs (CRL - Get Report) , Coca-Cola (KO - Get Report) and Starbucks (SBUX - Get Report) .

Cramer was bearish on Arbor Realty Trust (ABR - Get Report) , Crowdstrike (CRWD) , Nokia (NOK - Get Report) and Catalent (CTLT - Get Report) . 

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