The negativity in the market is reaching a fever pitch, said Jim Cramer on his
"RealMoney" radio show Wednesday. That's usually a sign the market is nearing a bottom, he said. Cramer recommends checking your emotions and taking advantage of the negativity to do some buying Thursday or Friday, particularly in tech, he said. After Thursday, Cramer believes that it will be wrong to be short. It has become way too easy to be short, he said. Commenting on Microsoft ( MSFT), Cramer said the company is a growth stock priced like a value stock. In fact, Rich Pzena, fund manager of John Hancock Classic Value, of whom Cramer is a big fan, has been buying Microsoft for his fund, he said. "You should own it, too," said Cramer. JDS Uniphase ( JDSU) is a "changed and fixed company," said Cramer. Although it takes guts to buy JDSU in this environment, this is when you have to step up to the plate, said Cramer.
Getting in ShapeA caller asked how Cramer can be so sure negativity in the market is reaching a peak when in 2000, negativity continued to build and the market continued to fall. Cramer said that unlike 2000, the market -- especially the Nasdaq -- is not expensive. Also, we don't have an excess of public companies that don't have legitimate business models like we had then, he said. Furthermore, we don't have as many major fraudulent companies such as WorldCom or Enron like we had then. We do have a Federal Reserve that is intent on raising interest rates, and we do have inflation, he said. So, not all is well. But the Fed will eventually stop tightening, and when it does, we will be in much better shape.
Picks and PansIn his weekly "Am I Diversified?" segment, Cramer said these things about stocks in listeners' portfolios.
Altria ( MO): Terrific. Caterpillar ( CAT): Mouthwatering. The stock would go to $65 immediately if the Fed would stop raising interest rates. Caterpillar traded at $54.80 late Wednesday. Motorola ( MOT): Cramer wishes his trading restrictions would allow him to buy Motorola today. Procter & Gamble ( PG): What's not to like? Pfizer ( PFE): Cramer prefers Schering-Plough ( SGP). Chesapeake Energy ( CHK): The cheapest natural gas play in the U.S. If you are a natural gas bull, nothing is better. UnitedHealth Group ( UNH): The stock is pulling back nicely and should be bought. Google ( GOOG): The selling today is an opportunity. Harley-Davidson ( HDI): HDI is trying to put in a bottom. Commerce Bancorp ( CBH): Cramer is not a fan of the bank stocks, but he believes that Commerce is less exposed to the negative effects of rising interest rates than most. TJX ( TJX): The best risk/reward of any retailer. Cramer believes that TJX has risk of $1 down and reward of $3 to $4 up. EnCana ( ECA): Cramer would like to buy more EnCana at a price of a dollar lower from here. EnCana traded at $49.61 late Wednesday. Prudential Financial ( PRU): Cramer's favorite insurance company along with MetLife ( MET). Eli Lilly ( LLY): Not Cramer's favorite drug stock. Calpine ( CPN): Cramer thinks it can win its upcoming lawsuit. But, he is not a big fan of the stock. Dynegy ( DYN): Not my favorite. Sun Microsystems ( SUNW): Not one of Cramer's favorite tech stocks. Both Microsoft and Motorola are better buys, he said. Williams ( WMB): Pretty good. Aon ( AOC): Cramer likes Aon as an insurance play. Verizon ( VZ): Cramer would sell Verizon. Commenting on mutual funds, Cramer likes the Vanguard Total Stock Market Index, John Hancock Classic Value and Fidelity Contrafund. Among bond funds, Cramer likes Pimco Total Return and Vanguard High-Yield.