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"We must be nimble, but money can still be made," a subdued Jim Cramer told viewers of his "Mad Money" TV show Friday.

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In an environment where finding a bull is getting tougher and tougher, it's more important than ever to have the right stocks, he said.

Cramer said in times like these, it's tempting to ask "why bother?" He said in the short term, it might seem like it makes sense to buy bonds, keep your money in cash or just short the entire market.

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But, he said, in the long term, investors can't afford to miss the recovery when stocks do finally turn around.

Cramer again advocated a diversified portfolio of defensive stocks, along with some cash and gold. However, he stressed the importance of having the right defensive stocks.

Not all defensive names are created equal, said Cramer. Names like

Procter & Gamble

(PG) - Get Report

, may sound defensive, but in times of fierce competition, investors need to stick with the winners.

He recommended names like

Wal-Mart

(WMT) - Get Report

, a stock which he owns for his charitable trust,

Action Alerts PLUS

, and

McDonald's

(MCD) - Get Report

, along with private label food makers like

Ralcorp

( RAH) and

Treehouse Brands

(THS) - Get Report

.

In uncertain political times, Cramer said he would stay clear of the other kind of defensive stocks, mainly

General Dynamics

(GD) - Get Report

and

Lockheed Martin

(LMT) - Get Report

.

Cramer admitted the markets are, and will be, miserable. But when the smoke clears, he said, he will continue to find the bulls.

Speculation Friday

For "Speculation Friday," Cramer recommended

Allos Therapeutics

( ALTH), a small $5.64 a share biotech.

Cramer said Allos

has everything he wants in a speculative stock

: It's cheap, it's not a bank stock, it's not an insurance stock, and it's got a hot new drug headed to FDA approval.

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The company

is developing what's known as an orphan drug

that treats rare conditions that affect only a few thousand patients, but also one that has absolutely no competition.

Cramer said

Allos' blood cancer drug

is seeing positive phase two testing results and could be approved by the FDA as early as the end of this year. The company also has $90 million in cash, enough to carry it through approval.

Cramer said he's also not worried about the Obama effect on

Allos

, since orphan drugs with no competition rarely see political pricing pressures.

Cramer warned that Allos is a speculative name with no sales to speak of, and while he sees a bargin at $6 or less, he would not pay up for the stock.

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A China Play

After President Obama wrecked the healthcare stocks and proposed big tax increases on the oil stocks this week, Cramer told viewers they need to Obama-proof their portfolios. He recommended once again looking overseas, to recession resistant companies outside of the president's taxable teach.

Cramer said Australian mining giant

BHP Billiton

(BHP) - Get Report

fits the mold, with it's juicy 4.5% dividend yield.

Cramer said BHP is simply a play on the recovery in China. With the price of iron up 25% since October and 20% of BHP's sales coming from China, Cramer said the connection should be obvious.

Shares of BHP have fallen from a high of $95 a share all the way down to just $36 today. Cramer said the company has a strong balance sheet, with more than enough free cash flow to cover its dividend payments. The company is also taking market share, making it the perfect way to play the Chinese recovery.

Mad Mail

Cramer told a viewer that he's not worried about the oil reserves of

Permian Basin Royalty Trust

(PBT) - Get Report

, because the company is always finding more oil. But he advised not paying up for the stock, given the stock's 20% pop on yesterday's recommendation.

When a second viewer expressed concerns over

BP

's

(BP) - Get Report

, Cramer said he also is concerned and is keeping a close eye on the situation, but feels the dividend ultimately will be OK.

Another viewer asked Cramer whether the

SDPR Gold Shares

(GLD) - Get Report

is big enough to manipulate the price of gold.

Cramer said frankly, yes. He said that while 60% of gold is used for jewelry, much of the remaining 40% goes to stock the Gold Shares. But, he said, with gold coming down in recent weeks, he thinks that risk is now minimal.

Lightning Round

Cramer was bullish on

Terra Nitrogen

(TNH)

,

ConAgra Foods

(CAG) - Get Report

,

Air Products and Chemicals

(APD) - Get Report

,

Walt Disney

(DIS) - Get Report

,

Papa Johns Internationa

(PZZA) - Get Report

and

Darden Restaurants

(DRI) - Get Report

.

He was bearish on

Intrepid Potash

(IPI) - Get Report

,

Johnson Controls

(JCI) - Get Report

,

Clearwire

(CLWR)

and

Logitech International

(LOGI) - Get Report

.

Check out the latest edition of

"Cramer's Take onTop-Searched Stocks" on Stockpickr.

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Want more Cramer? Check out Jim's rules and commandments for investing by

clicking here

.

Read more of Cramer's Mad Money Lightning Round insights

.

For "Mad Money" performance statistics and other links, check out Mad Money stats

At the time of publication, Cramer was long Wal-Mart.

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.