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RealMoney Radio Recap: What a Difference a Day Can Make

Cramer believes that investors may want to wait until Wednsday when consumer price index comes out.

"The cyclicals took the rally away from us," Jim Cramer said on his

"RealMoney" radio show Tuesday.

Though people should want cyclicals to rally, "we just don't want them going nuts on us," he said.

When some groups go up, they take everything up with them. For example when tech stocks go up, software, hardware, Internet and chip-providing companies experience a move up as well, Cramer said.

What people are seeing today is that things got too hot in the economy, he said. Copper and zinc are both up enormously, which is telling of the fact we are getting growth with some inflation.

But "growth without inflation is what we want," Cramer said. "I can't have you caught like we were between May 5 and May 11 when the

Fed

decided the economy was too hot."

People are talking that way again, he said. They are seeing inflation "creep back, and they're getting scared."

"Perhaps the best thing to do is nothing" right now, Cramer said. "Maybe this is more than a one-day sale."

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Although he usually advises people to get in the game, Cramer said this time maybe it's better to wait a day and buy stocks on Wednesday at a better price.

People might lose if he has them in the stock market today, but Cramer suggested getting into

Goldman Sachs

(GS) - Get Goldman Sachs Group, Inc. (GS) Report

and

TheStreet Recommends

Sears

(SHLD)

, if they catch a little decline today. Cramer owns both companies for his charitable trust,

Action Alerts PLUS.

But "be careful with other stocks," Cramer warned. After all, "the consumer price index comes out tomorrow, so why not wait?"

One stock he believes that people should buy Wednesday is

NYSE Group

(NYX)

.

As the NYSE buys other exchanges, it is going to go up, Cramer said. It is a $72.58 stock that is "probably worth $100," and on a down day, Cramer said he would be interested in buying it.

M&A Action

When people look at stocks such as

Icos

(ICOS)

and

CBOT

(BOT)

, which are going up because of deals the companies made, they wonder how they can get into similar stocks, said Cramer.

One such similar stock is

Arena Pharmaceuticals

(ARNA) - Get Arena Pharmaceuticals, Inc. Report

.

"Arena is not done going up," Cramer said. "It has done remarkable work against diabetes and obesity, and it could get a takeover bid tomorrow."

"With a company like this people have a lot of ways to win," he went on to say. "It feels a lot like Icos."

Another way to play of mergers and acquisitions and make money every time a company makes a bid is to buy companies that do M&A work, Cramer said.

Some M&A-related companies he recommended are

Morgan Stanley

(MS) - Get Morgan Stanley (MS) Report

,

Bear Stearns

(BSC)

,

Lehman Brothers

(LEH)

, and most importantly,

Goldman Sachs

.

Goldman Sachs is down today, which is a gift, Cramer said.

In addition, the company he likes best for speculation is

Level 3 Communications

(LVLT)

, which is buying

Broadwing

(BWNG)

.

People should own Level 3 as a way to play the expansion of the Web, Cramer said.

Market players should also consider getting into tech stocks, which are down today, he added. The opportunities to get into these stocks are "few and far between," and we are getting one of these opportunities right now, Cramer said.

When the market goes higher, it is "terrific" to own stocks, but what about when market goes down? he asked.

To protect oneself from the downside, Cramer advised buying stocks that have big dividends or ones that have buybacks. It won't feel so bad if you have this protection, he said.

Cramer's Callers

"

BE Aerospace

(BEAV)

is the cabin-interior king," Cramer told a caller.

The stock, which is down $1.50 today to $23, is a gift, he said. The stock shouldn't be down and is a "winner."

"BE Aerospace is only up 7% this year, and its business is booming," Cramer said, recommending it as a buy.

Responding to another caller, Cramer said that although

Diamond Offshore

(DO) - Get Diamond Offshore Drilling, Inc. Report

is a "miraculous company," he said he couldn't recommend it as a buy here.

"To me at $67, this stock could go to $60 before I pull the trigger," he said.

When a listener inquired about mutual funds, Cramer said he has had to put money into mutual funds and has been disappointed.

He told the caller that he would rather see people build stock portfolios themselves and beat mutual funds.

"I believe you can do better if you listen to this show and pick among stocks that some of the listeners suggest or some that I own for my charitable trust," he said.

Some stocks which Cramer owns for his charitable trust,

Action Alerts PLUS, and suggested to the caller are

Johnson & Johnson

(JNJ) - Get Johnson & Johnson (JNJ) Report

,

Sears

and

Goldman Sachs

.

At the time of publication, Cramer was long Goldman Sachs, Johnson & Johnson and Sears.

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

clicking here.

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