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"It pays to expect good things to happen," Jim Cramer said on his "Mad Money" TV show Friday. Calling it "a great day for the market," Cramer told viewers that "suddenly the rules of this game have changed."
Claiming ownership of the "
rate story from two weeks ago," Cramer said that his "heart-felt plea" from "Stop Trading!" was heard loud and clear. In turn, the Federal Reserve pulled "a 180," slashing its discount rate by 50 basis points to 5.75%.
This delighted Cramer, who said that the Fed's action ensures available cash for troubled banks.
Reflecting on a pick from Thursday, Cramer pointed out the continued success of
. However, he apologized for not giving viewers enough notice to buy in for great profits.
Cramer said that with the actions of the Fed, investors are "now playing offense." But they must remember that they are now undergoing a change "in psychology, not fundamentals."
Ultimately Cramer believes that analysts will be urging investors to "buy, buy, buy" after the weekend.
"If the rate cut really helped, where was that 500 point rally?" Cramer asked his viewers. But more optimistically, he believes that today's strong market "averted a 1,000-point decline" that would have taken place "over the course of today and Monday."
Cramer gave credit to Fed Chairman Bernanke for restoring confidence in the market. However, Cramer believes that the market will need some time to adjust to the news of the interest rate discount.
The "fear will dissipate over time," he said.
Telling investors to "forget that the market was up today," Cramer explained that most hedge funds are still in "sell mode." This is because of a rush to "pay off the investor masses."
Cramer believes that what happened to Japan's Nikkei 225 on Friday -- a 5.4% plummet -- could happen here as well. But he said that "most of the bad stuff is behind us."
Though the financial stocks were troubled earlier in the week, Cramer sees the Fed's action as helping "relieve some of the stress from credit concerns" for struggling financial companies.
Cramer viewed the Fed-cut injection of nearly $120 billion in liquidity into the banking system as a move that saved
-- two companies that were "within days of failing."
Lehman Brothers Holdings
buys that will benefit from said federal relief. Cramer owns Goldman for his charitable trust,
Action Alerts PLUS.
In his "Game Plan" segment, Cramer said that Friday's events showed that the Fed flinched and Bernanke blinked. Altogether, this calls for investors to start working on their "Post-Bernanke Enlightenment Game Plan."
Reminding viewers that "no one ever made a dime panicking," Cramer said there was no reason to sell out of the market. Instead, the question is "where to start," because there are "so many great buying opportunities."
With acquisitions abounding, he told investors to keep an eye on the "cheap buy-ins." But with "broken companies" out there, "not everything's a buy."
The first stock he recommended was
, which he owns for his charitable trust. Cramer is a fan not only of the company's management but also of its liquidity. Simply put, Cramer said, Sears has "lots of cash."
Cramer said there were plenty of opportunities in the financial spectrum in addition to Goldman and Lehman, including
Cramer also repeated his interest in Thornburg and Countrywide, stating that their recent woes could lead to "takeover bids."
Talking about the hurricane season along with general industry stability, Cramer talked up companies related to home-building. He liked Centex
, because it could see a "short squeeze," as well as
, because oil and gas are "total smoke shows."
Cramer believes that
, which he owns for his charitable trust, could "finally get the credit it deserves," because its estimates are "way too low" despite the "large volume" as of late.
Cramer said that it was time to "pull the trigger" and buy in.
All of these stocks, Cramer said, are ones that investors can "buy high and sell higher." Because the stocks "work short-term," Cramer urged investors to "wait five days" to buy in if they have already "spiked" Monday -- and not to let "this rate cut go to waste."
In his "Mad Mail" segment, Cramer's first message noted that "Uncle Ben" Bernanke had finally "seen the light" and that the economy "may turn around," thanks to Cramer's continued awareness. Cramer thanked the viewer for his praise but admitted that it was unlikely that Bernanke or anyone at the Fed had seen his video rant.
The second email praised Cramer for being "determined to help people." Cramer thanked the viewer for the note, saying that he was "just trying to do as good of a job" as he could. Cramer added that he was thrilled that things have turned around.
Cramer was bullish on
American International Group
Cramer was bearish on
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At the time of publication, Cramer was long AIG, Sears Holdings, NYSE Euronext and Caterpillar.
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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