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Cramer's 'Mad Money' Recap: Next Week's Game Plan (Final)

Cramer laid out various scenarios for a very busy week, including the possibility of a rally.
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NEW YORK (

TheStreet

) -- "Prepare for a momentous next week," Jim Cramer warned the viewers of his

TST Recommends

"Mad Money"

TV show Friday.

He said that the bears are preparing for a 3% to 10% correction based on next week's news, but in the end, the markets may end up rallying.

Cramer said there are three major news stories hitting the markets next week, including the midterm elections on Tuesday, the

Federal Reserve

meeting on Wednesday and the October jobs report on Friday.

According to Cramer, the bears are preparing for a 3% drop in the markets if the Republicans don't sweep both houses of Congress, a 5% drop if the Fed announces a big asset repurchase program, and another 2% drop if the unemployment level is still too high.

But Cramer noted that much of these fears are already baked into stock prices, and once the markets are clear of these events, they may end up even rallying by Friday. He told investors to be prepared for both scenarios.

In earnings news, Cramer said he'll be watching embattled oil giant

BP

(BP) - Get Report

, along with

Anadarko Petroleum

(APC) - Get Report

and

Chesapeake Energy

(CHK) - Get Report

for the latest read on the oil sector.

Cramer said he'll also have en eye on

Emerson

(EMR) - Get Report

for an update on the macro economic picture and

Clorox

(CLX) - Get Report

for consumer spending, as well as

Vulcan Materials

(VMC) - Get Report

for a read on federal stimulus spending.

"Take your cues from these companies," said Cramer, "but keep an ear out for the headlines."

Gold Harder to Find

In the "Executive Decision" segment, Cramer spoke with Paul Wright, president and CEO of

Eldorado Gold

(EGO) - Get Report

, a stock that's been struggling when compared to its gold mining peers.

Wright confirmed Cramer's belief that gold is indeed becoming harder to find and more expensive to produce. He said that in the next three to five years, gold could hit $2000 an ounce as Cramer predicted. Wright also said that current gold prices are not a bubble and that gold is viewed as a currency that is being relied on more and more around the globe.

When asked about working in countries not regarded as overly friendly towards U.S. companies, Wright said that Eldorado has a long track record in countries like China, Turkey and Brazil, and has been meeting their production and cost targets. Wright also noted that it's the U.S., not foreign countries, that pose the biggest political risk for Eldorado.

Honing in on China, Wright said that China is now No. 1 in both production and consumption of gold, yet the country only ranks 7th in gold reserves, a statistic that the country is trying to quickly rectify.

Finally, when asked about acquisitions, Wright said that Eldorado is in a strong position, which allows it to only make smart acquisitions and walk away from deals that don't work for the company.

Cramer once again reiterated his buy on gold, as well as on Eldorado.

Overseas Growth

In a second interview, Cramer spoke with Chuck Bunch, chairman and CEO of chemical maker

PPG

(PPG) - Get Report

, which Cramer said "has everything investors want for their 401k."

Bunch said that there are a few things really working well at PPG. He said the company continues to grow its business organically in the U.S. and is growing through acquisitions overseas, especially in emerging markets. He said PPG is also benefitting from lower tax rates in those emerging markets, which is becoming a bigger and bigger part of the company's strategy.

Turning toward policies here in the U.S., Bunch said that PPG continues to have dialogues with Washington, but has found that its policies simply don't benefit corporations, nor do they create jobs. He said that PPG, for example, has a positive trade balance with China, importing very little while exporting a lot. Bunch said that he could do even more to create jobs in the U.S. if Washington would get on board to help.

Cramer once again recommended PPG and commended Bunch for making such bold statements against anti-business policies in Washington.

Lightning Round

Cramer was bullish on

Freeport-McMoRan

(FCX) - Get Report

,

CenturyLink

(CTL) - Get Report

,

Marvell Technology

(MRVL) - Get Report

and

Broadcom

.

He was bearish on

Whirlpool

(WHR) - Get Report

.

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

To contact the writer of this article, click here:

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.

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.

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

.

Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by

clicking here

.

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

.

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

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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