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) -- "Even on the good days, there are still stocks that make you lose sleep," Jim Cramer told his "Mad Money" TV show viewers. Donning a pair of footed pajamas and surrounded by pillows and blankets, Cramer said now that there's a plan to fix the troubled European banks and countries, investors need a plan to fix their portfolios.

Today's markets were not a pretty picture, said Cramer, with


(ORCL) - Get Report

delivering a horrible quarter Tuesday -- citing problems closing big deals, and with European weakness. Making matters worse were poor results from


(KMX) - Get Report


Emerson Electric

(EMR) - Get Report


Investors won't sleep well at night in troubled markets like these with just any old stocks, Cramer explained. He said that low-yielding and no-yielding names just won't do; investors need dividend protection. He said on good days, stocks like


(MCD) - Get Report



(NKE) - Get Report

will rally, but the next down days are likely just around the corner.

Cramer once again endorsed master limited partnerships like

Kinder Morgan Energy Partners



Enterprise Product Partners

(EPD) - Get Report

along with high-yielding drug stocks like

Bristol Myers-Squibb

(BMY) - Get Report



(MRK) - Get Report

. He said high-yielding consumer stocks like


(CL) - Get Report

and high-yielding utilities like


(ED) - Get Report


Duke Energy

(DUK) - Get Report

also work.

"Any of these names will help investors sleep at night," Cramer concluded, especially when the next big down day is upon us.

Eat, Drink, Be Merry and Shop

In the next installment of his "Eat, Drink, Be Merry and Shop" series, Cramer highlighted the ultimate in "be merry" stocks,

Walt Disney

(DIS) - Get Report

, on the heels of what could be a breakout year for the company.

Cramer said that Disney recently boosted its dividend payout by 50%, a move that should be seen by investors as a powerful signal of confidence. He said that Disney has boosted its dividend six times in the past 10 years, but never more than 15%, thus this most recent move is a standout.

Business is going well at Disney, and is only poised to go higher as consumer confidence improves. The company's TV and cable properties, like




, are improving and the Disney brand is beloved around the globe.

Disney's theme parks, which make up 17% of the company's revenue, saw an 11% boost in this most recent quarter as consumer confidence begins to improve. The company is set to open its largest theme park to date, in Shanghai China, in 2016. Even the company's ailing movie division is turning itself around, as it prepares to deliver fewer, but higher-budget, productions in 2012.

Trading at just 10.8 times earnings with a 13.5% long-term growth rate, Cramer said that Disney is trading in-line with other media companies when historically it trades at a premium. He said that makes shares a Disney a steal and a must-own for every child's portfolio.

Do the Homework

Cramer explained what "doing the homework" really means by examining the most recent results of


(NKE) - Get Report

, a company he told viewers to get behind before they reported earnings earlier this week. He said that the company's 16% dividend boost was one signal, but in its earnings release, there were many others.

First was demand. No demand equals no sales, said Cramer; but in Nike's case, the company's "cool factor" and athlete endorsements create plenty of demand for its products. Then there's the size of its addressable market. In Nike's case, that's a possible $75 billion and Nike is the dominate player in that market. Also helping to make the demand case: Nike's future orders, up 13%.

Investors should consider the near term, said Cramer, as in what catalysts can help boost the stock in the short term. For Nike, those include the return of professional basketball, the 2012 summer Olympics and the World Cup in Brazil.

Also on the homework list, a company's costs. Nike said that it's seeing no pushback from customers on its recent price increases, and cotton costs are now falling. There is also geography to consider. Cramer said that much of Nike's growth comes from emerging markets, 13% from China alone.

Wall Street also likes accelerating revenue growth, said Cramer, and Nike's got that, too. The company's inventory at its retail locations was higher, he noted, but total units have topped, which is a bullish sign.

Finally, Cramer said he looks for new technology, something Nike has plenty of, as well as a culture of growth and innovation, something else Nike is known for. Put all of these factors together, said Cramer, and it's easy to see why Nike is a great investment. Investors should use these metrics for stocks in their portfolios as well, he concluded.

Am I Diversified?

Cramer spoke with callers to see if their portfolios have what it takes. The first caller's portfolio included:

Home Depot

(HD) - Get Report


Clean Energy Fuels

(CLNE) - Get Report



(INTC) - Get Report



(NVDA) - Get Report


Energy Transfer Partners



Cramer said that Nvidia and Intel were both tech companies, so he would dump Nvidia in favor of a health care name.

The second caller's top holdings included:

Alexion Pharmaceuticals







(ENB) - Get Report


Whole Foods Markets




(WY) - Get Report


Cramer said that this portfolio was perfectly diversified.

The third caller had:

Signature Bank

(SBNY) - Get Report


Linn Energy




(NKE) - Get Report



(RIG) - Get Report


Sunoco Logistics


as their top five stocks.

Cramer said this portfolio was too concentrated in oil and he recommended selling Transocean and Sunoco to pick up a health care stock and a retailer.

The fourth caller's top stocks were:


(VZ) - Get Report



(MCD) - Get Report


Johnson & Johnson

(JNJ) - Get Report



(INTC) - Get Report


SPDR Gold Shares

(GLD) - Get Report


Cramer said he wouldn't change a thing with this portfolio.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer introduced investors to the Ouroboros, a symbolic representation of a snake eating its own tail. He said the Ouroboros is the perfect metaphor for the European rescue package, a virtuous circle where the government gives money to the banks so they can invest into government bonds.

Cramer said he actually applauds this plan, as it's the best we've seen after four failed attempts so far. He said the plan should allow the markets to stabilize a bit, but there is a problem.

While the Ouroboros may look like a virtuous circle, it is, in fact, eating its own waste. Cramer said in Europe, the money will run out eventually. He added that Europeans don't practice real capitalism, the kind where banks have to raise their own money and the weak don't survive. Someday, he said, we will have to revisit this issue, but for now, the Ouroboros appears to be working.

Lightning Round

In the Lightning Round, Cramer was bullish on

Abbott Laboratories

(ABT) - Get Report


Annaly Capital

(NLY) - Get Report


Fifth Third Bancorp

(FITB) - Get Report


Huntington Bancshares

(HBAN) - Get Report


Cramer was bearish on


(ZNGA) - Get Report





RF Micro Devices



Newcastle Investment



Olin Corp

(OLN) - Get Report


JetBlue Airways

(JBLU) - Get Report


Chicago Mercantile Exchange

(CME) - Get Report


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

To contact the writer of this article, click here:

Scott Rutt






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At the time of publication, Cramer held no positions in the equities mentioned.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of 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, 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 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, 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, 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 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, 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.