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TheStreet.com TV Recap: Shares in Short Supply

Cramer says managements and their buybacks are gobbling up shares.

The only people who believe in stocks right now are managements themselves, which has caused a supply problem as the companies continue to buy back their stock, Jim Cramer said on TheStreet.com TV's Wall St. Confidential Web video Friday.

"There's just not enough supply, so when we do have an expiration that's biased to the upside, coupled with some very good earnings during this April season, you get this kind of monumental move where stocks really do break out to new levels," he told Gregg Greenberg, the host of Wall St. Confidential.

As these stocks continue to break out, Cramer said he believes that eventually retail will be brought back in, and "only until then will we be putting in a top."

What's happened also, he continued, is that, with the exception of

General Electric

(GE) - Get General Electric Company Report

, a number of stocks that people thought would settle at particular prices -- "this arbitrage got blown up by a lot of the great earnings."

Right now, there are still some earnings reactions that are being contained, such as those for

Honeywell

(HON) - Get Honeywell International Inc. Report

and

Schlumberger

(SLB) - Get Schlumberger NV Report

, he said. "But you also saw some remarkable breakouts."

Further, Cramer said he finds these breakouts "tend not to be repealed" in the weeks after.

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Switching topics, the way lottery tickets work is that people get a lot of "rip-ups," Cramer said. "A lot of things don't work."

But then there are stocks like

Caterpillar

(CAT) - Get Caterpillar Inc. Report

, which will go up seven times your money, or Schlumberger, which will go up three times your money, he said.

"That makes up and then some for all the rip-ups, and that's how you have to view it," Cramer said. "I always look at it, not as you have to be 70% or 80% right, but that you have to be 30% right, and that 30% right will easily make you a lot more money than you've ever lost."

The "best" lottery tickets right now, he said, are "coinciding with the options expirations that also have to do with earnings season."

General Electric owns CNBC, for which Cramer is a featured commentator.

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

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