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On days like today, where the market is selling off, "We circle the wagons around the stuff we really like and we sell the stuff we don't," Jim Cramer told viewers of his "Mad Money" TV show Thursday.

"The big institutional investors have lost all confidence in the market," Cramer said. "They're not like you."

"You have to accept these declines," Cramer said. Investors should raise cash by selling marginal positions and buying stocks that they like, he said.

Cramer pointed out that today's selloff was indicative of "pin action" around themes that aren't working. He pointed out that the airlines can't buy planes, so investors are selling out of Boeing ( BA), which makes planes, and Honeywell ( HON), which supplies components for planes.

Similarly, he said, investors found out that General Motors ( GM) is running out of cash, so they sold out of Johnson Controls ( JCI), which makes car parts. Oracle ( ORCL), which supplies technology that is used by banks, similarly suffered when the financial sector went down, he said.

Cramer: XM-SIRI Delay Uncanny, Isn't It?

Research In Motion ( RIMM) reports a pretty darn good number," Cramer said. "If the best tech story isn't working, the market says 'who needs tech?'"

If a company needs money, if it supplies raw goods, it can't meet the estimates the market sets, Cramer said. "Only gold rallies," he said. "Gold rallies when nothing else is working."

"Right now I don't like the market other than a couple themes that I'm suggesting you circle the wagons around," Cramer said. "When even Conoco ( COP) and Rio ( RIO) and even the sacred Potash ( POT) go down, I need you to think opportunity, not enemy," he said.

"The only thing they buy is their own stock," he said. Part of the reason the selloff was so bad today was that companies are forbidden to buy stock at the end of the quarter, Cramer said.

Cramer told viewers to sell Citigroup ( C - Get Report) Washington Mutual ( WM), Wachovia ( WB - Get Report), AIG ( AIG - Get Report) Fannie Mae ( FNM) and Freddie Mac. "You know I'm fearful about GM and Ford ( F - Get Report)," he said. "You know I don't like retail homebuilders."

He said that investors should always have gold in a diversified portfolio.

Cramer said that the companies that will rally are companies that offer what's in short supply and companies that rise in a recession. He said stocks like Chesapeake Energy ( CHK - Get Report), Schlumberger ( SLB - Get Report), Heinz ( HNZ) and anything that supplies China with the copper, steel and coal that it needs is to be bought here.

"Raise cash; don't hold," Cramer told viewers. "We know that we ring registers here all the time. If you don't have cash, wait for things to go lower and then pick."

Another Play on Offshore Drilling

The future is offshore drilling, Cramer said. He said that politicians have blocked offshore drilling because historically it has polluted the coastlines. He said technological advancements have made drilling much cleaner in recent years.

Stockpickr

"The stocks in play are cheaper, but the businesses are doing better," Cramer said. He said that he's been pointing viewers to cleaner-energy stocks for a while now. "Return to the long-term themes that are working when the market takes a huge hit like the one it took today," he said.

"You can buy good stocks for less money," Cramer said. "Tonight, our clean-drilling technology is drilling fluids. These fluids are the lifeblood of drilling." He said the fluids cool and lubricate drill bits and keep drill holes stable.

On that point, Cramer recommended Smith International ( SII) as a drilling-fluid play.

He said the fluids are profitable to sell and have been successful in highly regulated areas like Europe. He said Smith and two other companies make up a drilling fluid oligopoly, making the stock more attractive.

The company has also issued a 15-million buyback authorization, Cramer said, which means it's a great stock. "If you buy it now, you're getting it for less than you would have two days ago," Cramer said. He said the company is "thrice blessed," and part of one of the few bull markets right now.

Sell Block

Cramer took a minute to comment on Steve Rattner, who wrote an article criticizing Cramer in a Conde Nast publication. Cramer said that the Sell Block is for telling viewers to sell, and that Rattner got the show wrong.

"I'm telling you to sell all the time," Cramer said. "Last Friday during our game plan, I told you to pick up some Darden ( DRI)." After the stock's quick rise in the past week, Cramer said it's time to ring the register.

Cramer then reminded viewers that he had told them to avoid Nike ( NKE) and RIM ahead of their earnings. He recommended buying both now that they have gone down.

He reiterated previous bearish calls on ConAgra ( CAG) and RiteAid ( RAD).

Stay away from retailers, Cramer said. "As far as I'm concerned, this group cannot be owned until we start seeing actual store closings," he said. He warned viewers to stay away from J.C. Penney ( JCP), Sears ( SHLD), Kohl's ( KSS) and Dick's ( DKS).

Apogee's Rough Ride

Cramer recommended Apogee ( APOG) on April 28 as a green-building play. Apogee has fallen 16% since recommendation. He welcomed Russell Huffer, Apogee Chairman CEO, to the show to discuss his business.

Huffer said his business cuts the amount of heating and air conditioning required in buildings. He said that the quarter missed the Street expectation, but met the company's expectation. He said that the company is a long-term investment but his backlogs are bullish signs.

Cramer said investors should wait another quarter. "Right now we're in don't-buy mode," he said.

Lightning Round

Cramer was bullish on Tupperware ( TUP), Starbucks ( SBUX), Warren Resources ( WRES), Heinz, General Mills ( GIS), Frontline ( FRO)

He was bearish on Penn National Gaming ( PENN) and Hudson City Bancorp ( HCBK).

Want more Cramer? Check out Jim's rules and commandments for investing by clicking here.

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

At the time of publication, Cramer was not long on any stock.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com 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 TheStreet.com, 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 TheStreet.com is related to the specific opinions expressed by him on "Mad Money."

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