If you want to make money, "don't look at news headlines about the stock market," said Jim Cramer on his "RealMoney" radio show Wednesday.

He pointed to a piece in USA Today's business section as a prime example. The paper attributed Tuesday's stock rally to lower oil prices, but Cramer said that the opposite was true.

Stocks rallied because oil and gas companies blew away their earnings numbers he said; and companies in this sector are reporting good numbers because oil prices have been high.

Companies such as ConocoPhillips ( COP) and BP ( BP) are "making cash left and right" on oil prices, he said.

Moreover, UPS ( UPS) was Tuesday's big loser because it is contending with the effects of higher oil prices.

Stock rallies are simply about how much stock is available to buy or sell at any given moment, he said.

GM Grand

There was a time when it looked like General Motors ( GM) was going down, said Cramer, adding that the company was dogged by the wrong cars, poor sales and sky-high health care benefits.

But now it's in the midst of a major turnaround that has legs, Cramer said.

Even though the automaker just reported a $3.2 billion loss, Cramer said that management has figured out answers. Plus, the company has a turnaround pro onboard in Jerry York who also rehabilitated IBM ( IBM).

First, York will fix the financials, Cramer said. Then he will tackle growth.

He added that GM's recent earnings loss was mostly about bookkeeping and that the good news has momentum. "Hold onto GM if you have it. Buy it if you don't," he said, because it's behaving like a mid-cap stock that is finally getting it right.

Amazon ( AMZN), on the other hand, is a $14 billion company with great sales, but it needs to spend a lot of money to run its business.

That was the essence of Amazon's latest earnings report, and the stock has been down precipitously ever since.

Even though the stock has been beaten up, he said that it's not a buying opportunity. Even though companies such as Borders ( BGP) and Barnes & Noble ( BKS) don't have Amazon's sales, they are not spending tons of money to maintain those sales levels.

Amazon is down, and Cramer said that investors were right to bail.

Cramer's Callers

Cramer told his first caller that Panera Bread ( PNRA) reported a stellar quarter but that it "committed the unpardonable sin of saying it will not do as well in the future."

However, Cramer said that this might not be an entirely bad thing. The downbeat guidance will cause analysts to downgrade the stock, which will reset expectations for the company lower.

There comes a time when we have to recognize that sometimes when a company says great things and then says that expectations are too high, the company is just telling Wall Street to not get ahead of the story.

The company is doing fine, he said, but it just doesn't want anyone to believe that it's doing better than it is.

He said that the stock will churn until it reports again next quarter, when it is likely to meet the new lowered expectations. Then the stock should run higher. Cramer said he would wait a month for the market to fully digest the screw-up, and then he would start building a position.

Cramer said that he went against Wall Street by buying Nabors Industries ( NBR) for his charitable trust Action Alerts PLUS. Even if Wall Street hates cyclical plays, he said that this stock is still good.

He told another caller that Chesapeake ( CHK) is a driller that's a pure play on natural gas. Chesapeake is the "best in show" and should be held because natural gas prices should rise at some point.

A caller wanted to know how many shares a person should own to be in the game. Cramer said that it's not a matter of shares, but a matter of how much money a person invests.

He believes that an investor should hold at least $5,000, and preferably $10,000, in the stock market. This is the amount of money he feels is necessary to be diversified.

The amount of shares a person owns depends on the price of the share. If person has $10,000 in the market and invests in a stock that costs $10,000 a share, that person will only own one share. If the stock costs $10 a share, then the person will own 1,000 shares.

Cramer said that companies including Wynn Resorts ( WYNN), Urban Outfitters ( URBN) and Amylin ( AMLN) are priced to perfection and that investors should be very wary of these stocks.

He said that Sears ( SHLD), the third largest retailer, is a stock to own for the long term. He owns it for Action Alerts PLUS.

He also recommended Amgen ( AMGN) and Apple ( AAPL).

At the time of publication, Cramer was long Nabors and Sears.

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. Listen to Cramer's RealMoney Radio show on your computer; just click here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here.

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