TheStreet.com TV Recap: Betting on the Farm

Cramer says news out of agriculture and oil make for good plays in those sectors.
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If investors don't want to do the individual work on the "anointed" stocks like

Johnson Controls

(JCI) - Get Report

,

VF Corp.

(VFC) - Get Report

,

Guess

(GES) - Get Report

and

Ralph Lauren

(RL) - Get Report

, they should consider the agriculture and oil bull markets, Jim Cramer said on TheStreet.com TV's Wall St. Confidential

Web video Friday.

"The agriculture bull market is really powerful, but not for the reasons people realize," he told the show's host, Farnoosh Torabi. There were two farm bills, one of which "would have drastically cut back the subsidies to the agriculture business," Cramer explained.

However, this reform bill failed, "which poured the money into farmers." In turn, the farmers' first reaction was to buy more farm equipment, seeds and fertilizer. "So the farmers' bill was an earnings-per-share raiser for the agriculture complex," he said.

This market, Cramer said, includes stocks like

Deere

(DE) - Get Report

,

Monsanto

(MON)

,

Cummins

(CMI) - Get Report

,

Bunge

(BG) - Get Report

,

Agrium

(AGU)

and

Mosaic

(MOS) - Get Report

.

Moving on to the oil bull market, Cramer said one of the things he's seeing here is a lot of deepwater-drilling announcements. "One thing that distinguishes this market is that it's never able to discount," he said. "It discounts the bad news constantly and discounts the good news not at all."

Therefore, when these announcements come out, a stock like

Schlumberger

(SLB) - Get Report

will move up a lot, and then keep moving up. It's a very "unhealthy" pattern longer term, Cramer said, because the stocks shouldn't be going up over and over again on the same piece of information.

However, the pattern "usually tends to last much longer than people think, which is why I'm advising people to go buy in-the-money calls," he said. If a stock is at $100, "go buy the $90 call," and as the stock gets hit, periodically buy more.

The stocks to look at here are

National Oilwell Varco

(NOV) - Get Report

, Schlumberger, and

Transocean

(RIG) - Get Report

, which Cramer owns for his charitable trust,

Action Alerts PLUS, he said.

"These are the go-up anointed stocks," Cramer said. "Don't fight it. Join 'em."

At the time of publication, Cramer was long Transocean.

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. Watch Cramer on "Mad Money" weeknights on CNBC. Click

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clicking here.

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