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NEW YORK (

TheStreet

) -- "Why are the markets so hard to understand," a puzzled Jim Cramer asked the viewers of his "Mad Money" TV show Wednesday.

He said it's hard to make sense of the market when it's down 97 points one day, and up 120 points the next. Or is it?

Cramer broke down today's market action by examining the performance of its two IPOs,

Starwood Property Trust

(STWD) - Get Report

and healthcare billing provider

Emdeon

( EM). He said that Starwood's IPO, priced at $20 a share, was a total flop and broke its opening price immediately. The reason? Cramer said the deal was priced too high, and investors are still scared of another crisis in commercial real estate.

Shares of Emdeon on the other hand, priced at $15.50 a share, rose a quick $2.50 on its opening. Cramer said this deal was not only priced correctly, but it's also in one part of the economy that's actually growing. It's clear when comparing these deals, he said, that investors are both cautious, and optimistic, at the same time.

Regardless of sentiment, Cramer said the fact remains that mutual fund and hedge fund managers are seeing huge inflows of new capital, and need to put that capital to work. He said the market could correct, perhaps as much as 3% to 5%, but that correction will be shallow given the amount of new money that needs to be invested.

Cramer said he remains bullish on tech and banks like

Bank Of America

(BAC) - Get Report

and

Wells Fargo

(WFC) - Get Report

, two stocks which Cramer owns for his charitable trust,

Action Alerts PLUS, along with

Citigroup

(C) - Get Report

.

In Sync With the Economy

Cramer said investors looking for stocks that will prosper as the economy recovers should consider payroll processors like

Paychex

(PAYX) - Get Report

Automatic Data

(ADP) - Get Report

. He said that these companies actually make money as interest rates rise and will benefit even more as unemployment begins to fall.

Both Paychex and ADP have fallen substantially as unemployment rose. Paychex fell from a high of $45 a share to just $20, and now trades in the high $20's. ADP fell from $50 a share to just $31 before settling out in the high $30's, said Cramer. Both companies have been hit hard by increased bankruptcies, decreased new company startups and rampant downsizing.

But Cramer said these companies are up against easier earnings comparisons now, and with the economy improving, things should he looking up. He said while both companies may appear expensive, with Paychex trading at 20 times its earnings and ADP trading at 16 times, as their earnings increase, their multiples will fall.

Of the two, Cramer said he likes Paychex more. The company has a higher dividend yield at 4.4% and is adding clients faster than ADP.

Lure of Gold

Cramer said every portfolio needs to include gold. That's why he once again welcomed Paul Wright, president and CEO of

Eldorado Gold

(EGO) - Get Report

, for an update on the outlook for gold and gold stocks. Cramer last recommended Eldorado on Feb. 25, and since then shares have risen 31%.

Wright said that while some of Eldorado's new mines have fallen a few months behind schedule, he's not surprised by the mostly weather related delays. He said the new mines are still on track to be completed in 2010.

Wright also said that Eldorado finds most of its new projects from internal "grass roots" exploration, which gives the company an incredible cost of discovery that's less than $10 an ounce. He said this low cost of discovery and production gives the company a natural hedge as the markets continue to take gold higher.

Wright said all of Eldorado's mines are fairly new, with many years of production ahead of them. He also said he's very pleased with the company's projects in China and expects to be doing more business with the Chinese in the future.

Cramer said he continues to like Eldorado, along with its rival

Agnico-Eagle Mines

(AEM) - Get Report

.

Am I Diversified?

Cramer played "Am I Diversified" with callers to evaluate their portfolios to see if they have what it takes. The first caller's portfolio included

Conoco-Phillips

(COP) - Get Report

,

Flextronics

(FLEX) - Get Report

,

Morgan Stanley

(MS) - Get Report

,

Joy Global

( JOYG) and

Yamana Gold

(AUY) - Get Report

.

Cramer said this portfolio was absolute perfection.

The second caller's top holdings included

First Solar

(FSLR) - Get Report

,

Diamond Offshore

(DO) - Get Report

,

Nordic American Tanker

(NAT) - Get Report

,

Yahoo!

(YHOO)

and

Thompson Creek

(TC) - Get Report

.

Cramer said this portfolio, though heavy on resources, was still a great portfolio.

Lightning Round

Cramer was bullish on

Ciena

(CIEN) - Get Report

,

Tellabs

( TLAB),

Cisco Systems

(CSCO) - Get Report

,

ADC Telecommunications

( ADCT),

Novatel Wireless

(NVTL)

,

Intuitive Surgical

(ISRG) - Get Report

and

Taiwan Semiconductor

(TSM) - Get Report

.

He was bearish on

Alcatel Lucent

(ALU)

.

-- Written by Scott Rutt in Washington

Check out the latest edition of

"Cramer's Take onTop-Searched Stocks" on Stockpickr.

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clicking here

.

For more of Cramer's insights during the Lightning Round, click here

.

At the time of publication, Cramer was long Wells Fargo, Bank of America.

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.