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Market players got what they needed from the

Federal Reserve

, and the market rallied today, Jim Cramer said on his "Mad Money" TV show Tuesday.

The Fed decided to keep the interest rate unchanged at 5.25%.

It's actually reassuring not to hear from Fed that things are falling apart, he said. At some point after Cramer shouted at chief Ben Bernanke to "open the discount window" and cut short-term interest rates on

CNBC's

"Stop Trading!" last Friday there was a shift. "We are now creeping toward a rate cut," Cramer said.

The Fed knows there's a problem, he said. "It's no longer in denial, and that is a pretty good thing to hear." It's a good thing the Fed acknowledged that the downside risk is higher and that credit situations have become tighter, Cramer said.

The market heard what the Fed said, and even though the Fed might not act for a while, the market now knows it will act.

The Fed also hinted at government intervention, he said. Cramer believes that the Treasury secretary -- or even the president -- can ask

Fannie Mae

( FNM), which was set up to relieve tight credit conditions for some households, to take action to avert a disaster. Cramer owns Fannie for his charitable trust,

Action Alerts PLUS.

Further, come October, the Fed should give a rate cut, he said. In the meantime, however, people still have to stay away from the three crisis points: the banks, mortgage lenders and homebuilders.

What should work now are the

Kelloggs

(K) - Get Report

,

Schlumbergers

(SLB) - Get Report

and

Kimberly-Clarks

(KMB) - Get Report

, Cramer said.

He also likes sectors that are internationally levered, such as oil, infrastructure and agriculture, he said.

Image placeholder title

Bull Necessities

In tough economic times like these, it's necessary for people to pick up a defensive stock for their portfolios, Cramer told viewers.

Unilever

(UN) - Get Report

is one such stock people should consider.

As the stock is up, Cramer advised against jumping all over it right away, recommending instead that market players wait for it to settle down before buying.

Unilever, one of the largest global producers of packaged foods, manufactures products that people are not going to stop purchasing even if the economy is bad, he said. Plus, because it's based outside the U.S., it's even less levered to the current domestic credit problems, Cramer pointed out.

The stock has a cushion -- a 3.6% dividend yield -- so in case the stock goes down, the yield will go up.

Moreover, Unilever is also a great turnaround play, he said. It reported a great quarter recently when the market was down, and no one noticed. In addition, more than a third of its sales come from emerging and developing countries. "It's a play on people getting richer around the world," Cramer said.

Vanity Fairness

Companies that make people look good are companies that can make you money, no matter how bad the economy gets, Cramer told viewers. "Vanity is a constant theme on this show."

Growth stocks are back because the economy is slowing, he said. However,

Syneron Medical

(ELOS)

hasn't been hot in 2007.

Monday the company came out and reported a better-than-expected quarter and raised guidance, but today it was "hammered," Cramer said.

On the pipeline side, Syneron is collaborating with

Procter & Gamble

(PG) - Get Report

to develop noninvasive skin treatments; separately, it's working on a fat-removal product. Plus, competitors have disappointed left and right, he said.

To make sense of why the stock is getting hit despite all the favorable news, Cramer welcomed Syneron's CEO Doron Gerstel to the show.

Gerstel said he believes that now is a "great opportunity" for investors to get into Syneron. "We see plenty of growth opportunities in the U.S. and in the international market," he said, as doctors and physicians are increasingly jumping on the "aesthetic wagon."

"The main concern the market has is that it's looking at the competition, and more and more companies are doing initial public offerings," Gerstel explained.

"They're worried about saturation in the sector. But we've seen a different situation."

Cramer called this a "real worry" and suggested that people wait for IPOs to happen to see if it puts more pressure on ELOS.

To view Cramer's interview with Doron Gerstel, please click here.

During his "Mad Mail" segment, Cramer read two emails he received from viewers thanking him for speaking up during last Friday's "Stop Trading!" and talking about the humanity of the mortgage situation.

"Thank you for your support," Cramer said. "I know I was

out there

... but still am very proud of it."

Lightning Round

Cramer was bullish on

Chesapeake Energy

(CHK) - Get Report

,

Wynn Resorts

(WYNN) - Get Report

,

Las Vegas Sands

(LVS) - Get Report

,

Apache

(APA) - Get Report

,

Schlumberger

(SLB) - Get Report

,

Helix Energy

(HLX) - Get Report

,

Shaw Group

( SGR),

Fluor

(FLR) - Get Report

,

McDermott

(MDR) - Get Report

,

DaimlerChrysler

( DCX),

Boeing

(BA) - Get Report

,

Cisco

(CSCO) - Get Report

,

Level 3 Communications

(LVLT)

,

Garmin

(GRMN) - Get Report

,

Crocs

(CROX) - Get Report

and

Under Armour

(UA) - Get Report

.

Cramer was bearish on

Zebra Technologies

(ZBRA) - Get Report

,

Haynes International

(HAYN) - Get Report

,

Starbucks

(SBUX) - Get Report

,

Juniper Networks

(JNPR) - Get Report

and

Weyerhaeuser

(WY) - Get Report

.

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

.

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.

At the time of publication, Cramer was long Fannie Mae.

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."

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