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) 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), which Cramer owns in his charitable trust.

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