This market is full of roving bears and bulls, Jim Cramer warned his Mad Money viewers Wednesday. Investors can no longer look at the market from the perspective of, say, the S&P 500, he said, they need to take it sector by sector.
In the bull camp is the oil and gas sector. The U.S. is now the largest oil producer in the world, but most of our oil remains landlocked in the Permian Basin. Despite that fact, oil producers have been rising, with Diamondback Energy (FANG) - Get Report among the winners today. Cramer said he likes BP (BP) - Get Report , the Action Alerts PLUS holding with a 5.7% yield.
Soft goods and telcos are the other roving bulls, Cramer said. Shares of Kraft Heinz (KHC) - Get Report rose 2.3% today, while Procter & Gamble (PG) - Get Report , Kimberly-Clark (KMB) - Get Report and Estee Lauder (EL) - Get Report continue to climb. Cramer was also a fan of the telcos, where Verizon (VZ) - Get Report , AT&T (T) - Get Report and T-Mobile US (TMUS) - Get Report have been rising.
In the bear camp, we find the semiconductor makers following the slide in Micron Technologies (MU) - Get Report , down 29% in six months. Only Advanced Micro Devices (AMD) - Get Report remains in bull market territory.
Social media is in the grips of the bear as well, as a downgrade of Snap (SNAP) - Get Report crated that stock, down 6.9%. Cramer said he'd also avoid the regional banks and especially the emerging markets, where Hong Kong, Russia and Chinese markets remain under pressure.
Cramer and the AAP team are adding to their position in Anadarko Petroleum Corp. (APC) - Get Report because they want to pick at shares at this heavily discounted price.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.
Executive Decision: Five Below
For his "Executive Decision" segment, Cramer welcomed Joel Anderson, president and CEO of Five Below (FIVE) - Get Report , to the show. Five Below recently posted a seven-cents-a-share earnings beat with a 2.7% rise in same-store sales that sent shares soaring $15 in a single day.
Anderson said that Five Below continues to expand its footprint and aims to grow from 700 stores today to ultimately 2,500 locations across the country. He said that any retailer that can provide both value and a differentiated shopping experience will do well in today's economy and Five Below does both things very well.
Five Below set out to grow both top and bottom lines by 20% a year through 2020 and Anderson said they haven't missed that goal yet.
When asked about tariffs and trade, Anderson said they do get some of their merchandise from China, but there is plenty that comes from elsewhere, including t-shirts from Honduras and apparel from India.
Over on Real Money, Cramer talks more about small business optimism. Get more of his insights with a free trial subscription to Real Money.
Heirs to the Cloud Kings
The verdict is in, and Cramer's "Cloud Kings" have outperformed the market, tacking on 14% compared to just 4% for the S&P 500. But while Cramer said he's still a big fan of Adobe Systems (ADBE) - Get Report , ServiceNOW (NOW) - Get Report and Splunk (SPLK) - Get Report , all of these names are big, established companies.
For investors willing to take on a little extra risk, Cramer created a new list of "Cloud Princes" that could be a great fit for a speculative portfolio. His princes included Coupa Software (COUP) - Get Report , up 45% since June 1, Tableau Software (DATA) - Get Report , which is up 66% so far this year, and Hubspot (HUBS) - Get Report , the online content management system.
Investors should also consider New Relic (NEWR) - Get Report , Cramer added, along with Okta (OKTA) - Get Report , which has risen 189% for the year, and Atlassian (TEAM) - Get Report , the project management platform.
Cramer Does His Homework
In his "Homework" segment, Cramer followed up on two stocks that had stumped him during earlier shows. He said that both of these names are not only speculative, they're ultra-speculative, and not something you should ever consider for your IRA or college savings plan.
The first stock was ShotSpotter (SSTI) - Get Report , a company that helps law enforcement pinpoint the location of gunshots with a cloud-based network of audio sensors. Cramer said while this company is doing well and is profitable, its shares trade at 19 times sales, not earnings, making them far loftier than even his just-introduced Cloud Princes. He would avoid the stock.
Then there's Turtle Beach (HEAR) - Get Report , makers of high-end gaming headsets. Shares of Turtle Beach are up 1,100% in 2018 as gaming and eSports continues to be all the rage. But while shares of Turtle Beach trade at a more reasonable 11.5 times earnings, Cramer said he cannot recommend a stock after a 1,000% gain. He preferred the more mainstream Logitech (LOGI) - Get Report instead.
In his "No-Huddle Offense" segment, Cramer offered up some suggestions for how to play today's news that small business optimism is at all-time highs. It's hard for Wall Street to process small business news, he explained, as they only focus on big business.
But that doesn't mean there aren't ways to invest in small businesses. Take HD Supply (HDS) - Get Report , the company that sells loads of construction products to 500,000 small businesses. Then there is SnapOn Tools (SNA) - Get Report , which sells tools to small mechanics across the nation. Cintas (CTAS) - Get Report provided uniforms, while Etsy (ETSY) - Get Report has a marketplace of 1.9 million small business sellers.
In the Lightning Round, Cramer was bullish on CRISPR Therapeutics (CRSP) - Get Report , Oneok (OKE) - Get Report , Prudential (PRU) - Get Report , Home Depot (HD) - Get Report and Intuitive Surgical (ISRG) - Get Report .
Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.
To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.
To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.
At the time of publication, Cramer's Action Alerts PLUS had a position in APC, BP.