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Cramer's 'Mad Money' Recap: A Cautious Game Plan (Final)

Cramer advised viewers to move carefully next week in the absence of domestic economic data and the threat of potential minefields in Europe.

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) -- "We've lost the bright spot in our economy," Jim Cramer told the viewers of his "Mad Money" TV show Friday as reflected on today's unemployment number and the abysmal market action that followed.

Cramer said these markets warrant extreme caution, as positive U.S. economic news has been the only thing to counter the flurry of bad news emanating from Europe. With that positive news hitting a speed bump today, Cramer said the European contagion will continue to take our markets lower.

Making matters worse, Cramer said there's no new U.S. economic data on the horizon, creating a news vacuum that will make news from Europe seem even worse.

Cramer said he'd love to recommend


(CIEN) - Get Report

ahead of their earnings next week, and would love to get in on

Pep Boys

(PBY) - Get Report



(AZO) - Get Report

reported great numbers this week. But, he said, the reality is that Europe trumps everything.

> > Bull or Bear? Vote in Our Poll

Instead, Cramer said he'll be focusing on the sovereign debt offerings from Portugal and Spain and the continued slide of the euro towards his $117 price target and probably even below. He told investors to stick with the most defensive strategy they can, by investing in high yielding dividend stocks, adding in a little gold and diversification.

Defensive Tactics

Still confused as to how to play next week's troubled market? Cramer offered three strategies to help cope with the pain.

First, Cramer said investors can keep the bat on their shoulders, to use a baseball analogy. He said the other team is pitching a no hitter with a weak China, a faltering Europe and now a stumbling U.S. Cramer said perhaps the best strategy is to simply do nothing and wait for a better pitch.

Second, Cramer said investors can bunt, continuing his baseball theme. He said investors need to remember that the markets are up from Dow 6,500, and now is still a good time to sell some stocks and take a little money off the table. "Don't give back any more of your profits," he said.

Finally, Cramer said investors can try hitting a few singles, buying into some accidentally high yielding stocks, like the myriad of names he recommended on last night's show. He said these stocks will come back harder and faster when the market turns around, and they yield more the lower they go.

As an example, Cramer used


(DD) - Get Report

, a great company with a good balance sheet and solid management. Cramer said DuPont is yielding 5%, a great entry point. He'd buy a little now, then wait for the yield to hit 5.5% and buy more, and again at 6% and so on.

Cramer also gave the nod to other's he's recently mentioned, stocks like

EastGroup Properties

(EGP) - Get Report


Annaly Capital Management

(NLY) - Get Report

, the latter of which currently yields 15%.

Pickens on Natural Gas

In a special interview, Cramer once again welcomed oil tycoon and natural gas advocate

T. Boone Pickens

to the show for an update on the American Power Act and the state of natural gas in America.

Pickens said that the American Power Act legislation is now in place and it will be passed, although not by Memorial Day as he originally predicted. He said President Obama is finally starting to understand that natural gas is the only fuel that can compete with diesel, and it's cleaner and American-made.

Pickens said that he not only favors natural gas but he favors any fuel that's American, including electric, solar and even ethanol -- anything except for OPEC oil.

When asked about the oil spill in the gulf, Pickens said that the relief well currently being drilled is the only real option for stopping the flow. He said the other things that have been tried are all long shots, and even the relief well may not stop it by August as expected.

Pickens said the important thing is to leave


(BP) - Get Report

TST Recommends

alone until it stops the oil before taking steps to investigate what happened.

Mad Mail

Cramer told a viewer that while he likes


(HAL) - Get Report

, he can't recommend it until after the BP oil spill has been contained. "I don't need that headache," he said.

Cramer told another viewer that he likes

Express Scripts


both before and after its stock splits in the coming days. "Don't worry about the split, it doesn't matter," he said.

Lightning Round

Cramer was bullish on

JPMorgan Chase

(JPM) - Get Report



(MO) - Get Report


Time Warner



Southwestern Energy

(SWN) - Get Report



(CTL) - Get Report



(WIN) - Get Report


Vodafone Group

(VOD) - Get Report


There were no bearish picks.

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

To watch replays of Cramer's video segments, visit the Mad Moneypage on CNBC


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At the time of publication, Cramer was not long on any stock mentioned.

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