'RealMoney' Radio Recap: Not a Pretty Picture

Subpar earnings, world politics and an impending rate hike have Cramer asking, 'What's not to hate?'
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"What are people betting against the market thinking?" Jim Cramer asked on his

"RealMoney" radio show Monday.

Cramer said the bears have plenty of things to look at, including rising oil prices, two terrorist regimes in the Middle East and socialists sweeping South America.

President Bush is about to give a State of the Union address as his popularity falls, and earnings season was subpar outside of oil, aerospace and three tech companies, he added.

With a new

Federal Reserve

chairman on the way, and another rate hike, "What's not to hate? What isn't going wrong?" he asked.

Regardless of the picture, the stock market is going higher, he said. And if the bears couldn't pounce with these factors in play, the market still has higher to run if any part of this overwhelmingly bad picture is actually to improve, Cramer added.

Even though money that would have gone to real estate is flowing into equities, Cramer said there are still things that could hurt stocks, including a bad quarter for

Google

(GOOG) - Get Report

, a negative verdict for

Altria

(MO) - Get Report

or poor earnings from

Boeing

(BA) - Get Report

.

But Cramer said that he doesn't foresee these things happening and that a lot of bad stuff has already occurred, which has dissuaded no one from buying stocks.

"Do not dilute your focus," he told listeners. "It doesn't matter who's heading the Fed or the fact that a rate hike is coming. We're near the end. ... What matters is, do you have enough oil and oil-related stocks?

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"When Libya's the most stable place to drill, you know you're in for a real treat," Cramer said.

Cramer said he's still bullish on the drillers, seeing them as the ultimate hedge in the oil sector, including

Schlumberger

(SLB) - Get Report

,

GlobalSantaFe

(GSF)

and

Halliburton

(HAL) - Get Report

.

The Disciplined Trader

Lenny Dykstra, the "Disciplined Trader" and celebrity investor contributor for

TheStreet.com

, joined Cramer to talk about his picks for the week.

Dykstra buys calls, rather than a company's stock, because purchasing control of the shares gives him exposure to quality stocks for a lot less money.

He also says that the strategy of buying deep in-the-money calls is a more flexible play because he can unload the shares the minute they move higher.

Dykstra told listeners to take a look at

Bank of America

(BAC) - Get Report

calls. The stock is getting hit, but he said he's buying deep in-the-money calls to control the shares with limited risk and a nice reward.

For example, he said, he bought shares of

Dow Chemicals

(DOW) - Get Report

for $7.40 and sold them the next day at $9. Sell into that strength, get your money and then put it back into the market, he said.

Even though he had recommended

Dell

(DELL) - Get Report

in the morning, the stock is up, so he said that he'd missed the boat. He wanted to buy the calls for $7.20, but now at $7.90 Dykstra said he's moving on for a better deal.

A caller asked about the cyclical investing chart in Cramer's book

Real Money: Sane Investing in an Insane World

, which was originally part of a handbook he gave to employees at his hedge fund.

The chart shows cycles in the economy that can help investors pick where they will put their money, and Cramer said that a handful of factors changed the applicability of some elements in the chart.

Now that the low fourth-quarter GDP figure is out, Cramer said that we're in a trough. He added that the chart was put together before China became a really big factor and that Chinese demand has changed the way to play some sectors.

For example, he said that mineral stocks should usually be sold at this point in the cycle, but demand from China will keep them good buys.

Cramer believes that his favorite financial,

Accredited Home Lenders

(LEND) - Get Report

, is a good way to play the chart in the book. He added that

Deutsche Bank

(DB) - Get Report

took a 7% position in the stock.

Cramer told another caller that

Gardner Denver

(GDI) - Get Report

could do well because there are not a lot of companies in the air compressor and blower business.

And Cramer also said that he would buy Altria before the earnings. After the company clears up its lawsuit in Florida, he thinks the stock could soar.

A caller wanted to know if Cramer liked

Quantum Fuel Systems Technologies

(QTWW)

for an alternative fuel play. Cramer said that the stock is up 10% and that one should be careful.

Even though Quantum could have an earnings breakout this year, Cramer said he'd rather take a look at

Energy Conversion Devices

(ENER)

.

Cramer said that he likes

Perini

(PCR)

because he thinks it's well run and it just scored a big contract for the expansion of Foxwoods Casino.

He also said that the investors who are moving money out of real estate and into stocks are likely to want to handle their own finances, a factor that could boost

E*Trade

(ET) - Get Report

and

Ameritrade

(AMTD) - Get Report

.

But Cramer did not recommend

SigmaTel

(SGTL)

. Instead, he said that he likes best-of-breed plays like

Marvell Tech

(MRVL) - Get Report

or

Broadcom

(BRCM)

. Those stocks are down today, so he sees a buying opportunity there.

He also likes

Conexant

(CNXT) - Get Report

, but said that the company may have already run too high to be a buy for now.

Now that

Empire Resources

(ERS)

has nearly doubled, Cramer said he doesn't want to chase it higher. And he also said that the longer side is better for Google but that he didn't like the idea of buying it ahead of its earnings announcement.

Cramer ended the show by saying that the

Apple

(AAPL) - Get Report

selling is overdone.

At the time of publication, Cramer was long Altria, Boeing, Ameritrade and Halliburton.

James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

Action Alerts PLUS. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by

clicking here. Listen to Cramer's RealMoney Radio show on your computer; just click

here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click

here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click

here to get his second book, "You Got Screwed!" and click

here to order Cramer's autobiography, "Confessions of a Street Addict."

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