Jim Cramer sees a bottom.

In his "

RealMoney' radio show Friday, Cramer said his overbought/oversold index, which measures buying and selling power, is showing an extremely oversold condition. That may seem contrary to some, but in Cramer's view that means that buying opportunities abound.

"The market is so oversold now, you have to put money to work," Cramer said. "This is what a bottom looks like."

The sentiment surveys Cramer watches also are showing a lot of bears on the prowl, another contrary indicator saying it's OK for the bulls to come out of their own hibernation. Public short sales on the

NYSE

are also way in advance of specialist short sales, which, to Cramer, means that the end is near.

"We have had no mercy from the market, and things have now turned investable," said Cramer. "Things are better than people realize and now I am putting some money to work -- slowly, of course!"

Aside from his indicators, Cramer said negative events are also showing blue skies ahead. Those negative events include the collapse of all the financials -- not just

Refco's

( RFX) collapse. He pointed out that the collapse of super hedge fund Long Term Capital eventually created a bottom for a rally.

And on a final note, Cramer also said the retirement of Alan Greenspan should prompt markets higher.

"People only get this negative at or near the bottom," says Cramer.

Cramer's Callers

A caller feeling the pain along with Cramer on

Occidental Petroleum

(OXY) - Get Report

wondered when the company's share price would start turning around. Cramer said the stock would be far higher in the long term.

"It's the cheapest oil in a cheap group and I like that," said Cramer.

Another listener asked about stocks that could bounce on inflation worries. Cramer steered him to the trio of plastic, coal and piping stocks including

PPG Industries

(PPG) - Get Report

, which Cramer owns in his charitable trust.

The same caller asked about

Motorola's

( MOT) fortunes. Cramer said the company is taking a share of cell-phone business, which is finally heading north. It has had a healthy pullback and people are taking profits. But Cramer is not backing away from Motorola. In fact, he'd be "even more aggressive."

A caller from Ohio said he had a spot open for a speculative stock. Cramer said

Lucent

( LU),

JDSU

(JDSU)

and

Conexant

(CNXT) - Get Report

may be the best choices to fill it now that they have pulled back a bit.

Cramer Fixes a 401(k)

A widow from Pennsylvania wanted to know how to split up a $50,000 portfolio into stocks. Cramer said she should consider Occidental to fulfill an energy requirement and

Texas Instruments

(TXN) - Get Report

, which below $30 has become the bargain in the tech group.

For a pharma choice, Cramer favors

Amgen

(AMGN) - Get Report

or

Schering Plough

( SGP), which he says is more of a turnaround play.

"The consumer may be being written off, so you may want to try

Yum Brands

(YUM) - Get Report

or

Starbucks

(SBUX) - Get Report

, both of which have great opportunities in China," said Cramer.

Finally, industrial exposure is also important, so Cramer said she may also want to check out

General Electric

(GE) - Get Report

,

Honeywell

(HON) - Get Report

,

Ingersoll-Rand

(IR) - Get Report

.

Lightning Round

Bullish

Cramer was bullish on

Genentech

( DNA),

GoldCorp

,

Honda

(HMC) - Get Report

,

Toyota

(TM) - Get Report

and

Yahoo!

(YHOO)

.

Bearish

Cramer was bearish on

GM

(GM) - Get Report

,

Natural Gas Services

(NGS) - Get Report

,

Annaly Mortgage

(NLY) - Get Report

.

At the time of publication, Cramer was long Occidental Petroleum, PPG Industries, Lucent, Motorola and Yahoo!.

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

ActionAlertsPLUS. 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." Cramer appreciates your feedback and invites you to send him an email by

clicking here

.