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Alcoa ( AA) and Yahoo! ( YHOO) are two stocks that could make people money in a glass-half-full rally, Jim Cramer told viewers of his "Mad Money" TV show Wednesday.

Cramer owns Yahoo! for his charitable trust, Action Alerts PLUS .

A half-empty glass represents the old Ben Bernanke -- before the Fed meeting on June 29. Before this, Cramer said the market was miserable.

Everybody thought Bernanke would keep raising rates, and when people live in a world of endless rate hikes, investors are down and view the glass as half empty.

The last time Bernanke raised rates, he said it was possible that hikes could stop, Cramer said. This showed market players that Bernanke is aware of the world beyond the Fed and that Bernanke understands he was on the way to wrecking the economy.

This is why Cramer believes that the glass is half full and has changed the chairman's moniker from Uncle Ben to doctor.

Now there's a whole different story, he said. In this type of environment, Cramer said people should want to buy stocks that have great earnings. It is now safer to buy stocks that are anticipating good news, he said.

In a glass-half-full rally, Cramer said he likes Alcoa and Yahoo!. He believes that Alcoa, which is expected to report second-quarter earnings on July 10, and Yahoo!, which is expected to report second-quarter earnings on July 18, both will hammer the numbers and report better-than-expected earnings.

On Spec

Although Crystallex International ( KRY), Northgate Minerals ( NXG), Peru Copper ( CUP) and EuroZinc Mining ( EZM) are mining companies involved in the natural resources sector, that is not what their stocks have in common, said Cramer.

The common factor in these stocks is that they are all speculative, he said. And all speculative stocks trade together. There's a rhythm to speculation, and Cramer said that people following this rhythm can make some mad money.

However, if they don't follow the path, they're likely to get hurt, Cramer said.

In the case of speculative stocks, he said that investors need to do different homework because they are dealing with "different" stocks.

Speculative stocks got crushed when the rates increased, and now they are moving back up. The question is, do you buy more, sell or hang on for the ride? Cramer recommended not backing up the truck.

"If you own them, take a little off and don't buy," he advised. "If you don't own them, then keep it that way."

Investors might believe that they should hold on to Peru Cooper because gold is up, but because these are speculative stocks, with them the fundamentals don't matter, Cramer said.

Speculative stocks don't trade based on the fundamentals. They play on one thing: the price of money, which is the interest rates, he said.

Speculative stocks are in a sector of their own and are ultra-Fed-sensitive. When rates are high, the cost of money is more expensive; in a low-interest environment, there is easier money out there because borrowing money is cheap, Cramer said.

These speculative stocks could get murdered if the employment number that comes out on Friday is too high because that might mean rate hikes, Cramer said.

Sell those stocks now while they still have some strength in them and before they are crushed down, Cramer emphasized.

Am I Diversified?

The market can be flighty when it's up one day and down the next. That's why people need to protect themselves against the volatility and make sure they are diversified, Cramer said.

The first caller to play the "Am I Diversified?" challenge owned the following five stocks: Hershey ( HSY), Apple Computer ( AAPL), Microsoft ( MSFT), 3M ( MMM) and Honeywell ( HON).

Cramer said that although he liked most of the stocks, the caller was not diversified because Apple and Microsoft, which he owns for his charitable trust, Action Alerts PLUS , are both tech stocks.

He blessed Apple and advised the caller to swap out Microsoft.

The second player called in with the following five stocks: Middleby ( MIDD), Garmin ( GRMN), UnitedHealth Group ( UNH), which Cramer owns for his charitable trust, Action Alerts PLUS , Nvidia ( NVDA) and Chico's ( CHS).

Cramer said that the caller, owning an ovenmaker, a global-positioning company, a health care stock, graphics chip company and a retailer, was diversified.

Cramer welcomed EuroZinc Mining CEO Colin Benner to the show and asked him why his company's stock was at 51 cents this time last year. (It was recently at $2.58.)

Benner responded that the company has just started to capitalize on its assets and that commodity prices have helped the company tremendously.

Cramer mentioned that the company recently received its credit line and asked if the hedge prices were a good deal.

"We're taking the hedge position on the financing only as a hedge against a hedge, if you will," Benner said, adding that the company will not see the financing come into place until early next year.

If the prices continue the way they have been, Benner said they have the option of backing away from whole thing.

If by the first quarter of next year, EuroZinc does not have sufficient opportunity to utilize its cash for growth, Benner said the company won't have to bother with the debt line.

The company, based in Canada, explored opportunities in Portugal and capitalized on them when the company could, Benner said. He said he thinks of his company as more of a copper company than a zinc business, producing 200 million tons of copper concentrate annually.

The company has 1.25 million ounces of annual silver exposure as well, Benner said, adding that by the end of 2008, he expects the number to grow to 2 million on an annual basis.

As EuroZinc stock comes down, Cramer said he'd recommend buying it, and he called the company a "pretty darn interesting story."

To view Cramer's interview with Colin Benner, click here .

Lightning Round


Cramer was bullish on GOL Linhas Areas Inteligentes ( GOL), AMR ( AMR), Continental Airlines ( CAL), Grey Wolf ( GW), Accenture ( ACN), News Corp. ( NWS), Consolidated Edison ( ED), TXU ( TXU), Boeing ( BA), Pepsi ( PEP), Devon ( DVN), Rite Aid ( RAD), J. Crew ( JCG), Pan American Silver ( PAAS), ConocoPhillips ( COP), Occidental Petroleum ( OXY), Chevron ( CVX) and Sony ( SNE).


Cramer was bearish on Sirius Satellite Radio ( SIRI), Nektar Therapeutics ( NKTR), Oracle ( ORCL), Edgewater Technology ( EDGW), DirecTV Group ( DTV), Ladish ( LDSH) and Chesapeake Energy ( CHK).

For more of Cramer's insights during the most recent Lightning Round, click here .

Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here.
At the time of publication, Cramer was long Yahoo!, Microsoft and UnitedHealth Group.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on Mad Money are his own and do not reflect the opinions of or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or is related to the specific opinions expressed by him on "Mad Money."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.

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