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"Whenever you have a selloff, there are two ways to approach the stock market," Jim Cramer said on his "Mad Money" TV show Thursday.

Those two approaches to playing the recovery are the value method and the momentum method, he said.

The value method tells investors to look at the new-low list for stocks that are down 20% from their 52-week highs and that pay at least 3% in dividends. Cramer believes that this approach uncovers companies that the hedge funds were forced to sell, or "good companies with broken stocks" -- not companies with serious flaws.

Cramer believes that there are further interest rates cuts coming from the

Federal Reserve

. If true, he said, dividend-paying stocks will increase in value.

As a "value method play," Cramer likes

Aircastle

(AYR) - Get Aircastle Limited Report

, a company that owns and leases jets. Aircastle, off from its 52-week high in June, was "knocked down by sellers concerned with the credit crunch," he said.

The company's "entire portfolio is leased out," he said, and it is shifting to buying and leasing freighters, which give better returns than passenger planes.

Cramer added that the company's COO recently bought 2,000 shares and that insiders "only buy for one reason: They think their company's stock is going up."

On the value method, Cramer also liked

Genesis Lease

( GLS), which he first recommended last May. The stock is down 15% since then, but it has an 8.2% yield and $1.2 billion in capital.

This Magic Momentum

Cramer continued with his second way of playing the recovery -- as a momentum investor.

Here, he said, investors should look at the new-high list."

Cramer has liked

EMC

(EMC)

since July as a play on the

VMware

(VMW) - Get VMware, Inc. Class A Report

IPO. EMC, which he owns for his charitable trust,

Action Alerts PLUS, is up less than 3% since then.

The company owns 87% of VMware's equity, a stake now valued at $6 billion more than in July. VMware stock, offered at $29 on Aug. 13, hit $70 Thursday.

Cramer compared the EMC and VMware relationship to that of

Cypress Semiconductor

(CY) - Get Cypress Semiconductor Corporation Report

and its spinoff

SunPower

(SPWR) - Get SunPower Corporation Report

. Cypress is up 52% since the spinoff.

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Cramer believes that EMC, which trades at 11 times next year's earnings, is cheap. Furthermore, its data storage business is also doing well.

Although he looks at EMC as a key play for momentum investing, Cramer told viewers to "wait a little while" to buy in.

Sell Block

In his "Sell Block" segment, Cramer focused on the $80-to-$120 stocks he liked in early July. But because these stocks are down 4.2% since, Cramer admitted that he "misjudged the market." The

S&P

is down 4.5%.

Of all his $80-to-$120 picks, Cramer still likes

Boeing

(BA) - Get Boeing Company Report

, down 3.2% since July;

ConocoPhillips

(COP) - Get ConocoPhillips Report

;

Terex

(TEX) - Get Terex Corporation Report

, which he was too early on; and

Caterpillar

(CAT) - Get Caterpillar Inc. Report

. Both Terex and Caterpillar are levered to construction. He owns CAT and COP for his charitable trust,

Action Alerts PLUS.

Because the chemical industry has few companies left, it Cramer said that

Air Product & Chemicals

(APD) - Get Air Products and Chemicals, Inc. Report

has pricing power on its side.

Energizer Holdings

(ENR) - Get Energizer Holdings Inc Report

has made smart moves but is still too high, he said.

Of all the energy companies,

XTO Energy

( XTO), which he owns for his charitable trust, is the best pick.

Mad Mail

In his "Mad Mail" segment, Cramer responded to his first message, saying that

Omniture

( OMTR) could go to $30. Additionally, as one of his four horsemen of tech,

Apple

(AAPL) - Get Apple Inc. (AAPL) Report

is "going to be terrific."

Cramer said that the

Countrywide Financial

TheStreet Recommends

( CFC) "play is over" and that the

Bank of America

(BAC) - Get Bank of America Corp Report

play has begun.

And finally, Cramer liked

Crocs

(CROX) - Get Crocs, Inc. Report

, believing that the company is "on a mission." He told viewers to listen to the Crocs conference call to know why he is excited.

Sudden Death

During the "Sudden Death" round, Cramer was bullish on

Central European Distribution

( CEDC) and

Southern

(SO) - Get Southern Company Report

.

He was bearish on

Aeropostale

(ARO)

.

Lightning Round

Cramer was bullish on

Apple

(AAPL) - Get Apple Inc. (AAPL) Report

,

Amazon.com

(AMZN) - Get Amazon.com, Inc. Report

,

Google

(GOOG) - Get Alphabet Inc. Class C Report

,

Domino's Pizza

(DPZ) - Get Domino's Pizza, Inc. Report

,

DryShips

(DRYS) - Get DryShips Inc. Report

,

Eagle Bulk Shipping

(EGLE) - Get Eagle Bulk Shipping Inc Report

,

Costco Wholesale

(COST) - Get Costco Wholesale Corporation Report

,

GameStop

(GME) - Get GameStop Corp. Class A Report

,

Citizens Communications

( CZN),

Blue Coat Systems

( BCSI),

Symantec

(SYMC) - Get Symantec Corporation Report

and

VF Corp.

(VFC) - Get V.F. Corporation Report

.

Cramer was bearish on

MetroPCS Communications

(PCS)

,

RadioShack

(RSH)

and

Circuit City Stores

(CC) - Get Chemours Co. 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 EMC, Caterpillar, XTO Energy and ConocoPhillips.

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.