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NEW YORK ( TheStreet) -- "The recovery is at hand, and the bears are in trouble," Jim Cramer told the viewers of his "Mad Money" TV show Wednesday.

Cramer said the proof is in the companies that make the things we need to make things.

"The building blocks of America are in motion," he said. According to Cramer, everything from PVCs and chemicals to plastics, aluminum and paper are sprouting back to life, indicating that America is once again on the move.

Among Cramer's new stocks to watch, companies like International Paper ( IP) and Temple-Inland ( TIN) , along with coatings company PPG ( PPG), and even Dow Chemical ( DOW).

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Cramer said in all recent recoveries, stocks always moved a full six months before the real economic recovery began, and he expects the same thing this time.

He continued to support the leaders, like Wells Fargo ( WFC), a stock which he owns for his charitable trust, Action Alerts PLUS. In technology, Cramer said Apple ( AAPL - Get Report) remains his favorite, while in oil patch, it's XTO Energy ( XTO) and Southwestern Energy ( SWN).

"But there's a problem," said Cramer. For as much as things are terrific right now, and the market is roaring, we need to ring the register and take some profits. He cautioned investors to not be greedy, and to laugh at the doom and gloomers all the way to the bank.

Day Trading Explosion

Cramer said his next investment idea came from a tip on the front page of the Wall Street Journal. He said a story featuring the return of day traders to the markets reminded him that Knight Capital ( NITE) is the way to play this growing trend.

Cramer said its no secret on Wall Street that trading volumes are on the rise as the market recovers. In fact, all of the major brokerage firms reported a 14% increase in volumes last month alone. But Cramer said there are other things helping to drive the retail investor back into the markets.

One of those things is speed. Cramer said the average trade is now executed in just 30 milliseconds, meaning the price traders see on their laptops is the price they get.

Also helping things along is what's known at the "at-or-better" ratio, which indicates how many trades are executed at a stock's quoted price or at a better price. That ratio, once 73%, is now at 93%, said Cramer. That means even the little guys can get prices that are better than the listed price.

Cramer said in the old days, only the big guys got the good prices, but that's no longer the case. "It's never been a better time to be a retail investor," he said. And that's why Knight Capital, which saw a 7.7% increase in trading volume last month, is the way to play this trend.

Knight handles 5 million trades a day, said Cramer, and is devouring marketshare. Even though the stock have moved up 20% off its lows, Cramer still said this company is a buy and deserves to be higher.

Outrage of the Day

Cramer sounded off on the latest chapter in the Securities and Exchange Commission's investigation of Bank Of America ( BAC), and the $3.6 billion worth of bonuses that were allegedly hidden from shareholders when the company acquired Merrill Lynch.

Cramer said the shareholders of Bank of America, a stock which he owns for his charitable trust, Action Alerts PLUS, were hurt by the hiding of these bonuses, and now they're being hurt again by the $33 million fine imposed by the SEC.

But today a federal judge broke up the SEC's deal, and while some of what the judge said was good, Cramer said his ultimate conclusion was dead wrong. Cramer said it was right to call out the SEC's outrageous behavior to penalize shareholders for the sins of the executives, and it was right to note that the SEC's punishment didn't come close to fitting the crimes.

But it was totally wrong to defer blame to the attorneys, he said, "That's nonsense." Cramer said those responsible cannot go without punishment. "Why not refer the case to the Department of Justice," he asked? Let them get to the bottom of it and see that the executives pay, he concluded.

Am I Diversified?

Cramer talked with callers to see if their portfolios have what it takes. The first caller's portfolio included American Electric Power ( AEP), Consolidated Edison ( ED), Exxon Mobil ( XOM), Nordic American Tanker ( NAT) and Verizon ( VZ).

Cramer advised selling American Electric Power in favor of a stock like Kinder Morgan Energy Partners ( KMP) to be truly diversified.

The second caller's top holdings included Wells Fargo ( WFC), Procter & Gamble ( PG), Pepsico ( PEP), Ebay ( EBAY) and Apple ( AAPL - Get Report).

Cramer said he considers Apple and Ebay to be a technology and an Internet company, so this portfolio is indeed diversified.

The third caller had Bank Of America ( BAC), FedEx ( FDX), Linn Energy ( LINE), Integry's Energy ( TEG) and Ford ( F) as their top five stocks.

Cramer said this caller knew how to play the game

The fourth caller's top stocks were El Paso ( EP), Olin ( OLN), Chevron ( CVX), Waste Management ( WM) and Pfizer ( PFE). Cramer said El Paso and Chevron were too similar and one needed to be sold.

Lightning Round

Cramer was bullish on Google ( GOOG - Get Report), Apple ( AAPL - Get Report), Banco Santander ( STD) and DirecTV ( DTV).

He was bearish on Microsoft ( MSFT - Get Report), 3Com ( COMS), BioMarin ( BMRN - Get Report), Eagle Bulk Shipping ( EGLE - Get Report), World Wrestling Entertainment ( WWE) and Huron Consulting Group ( HURN).

To watch replays of Cramer's video segments, visit the Mad Moneypage on CNBC .

Want more Cramer? Check out Jim's rules and commandments forinvesting from his latest book by clicking here.

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

At the time of publication, Cramer was long Wells Fargo, Bank of America, Pepsico.

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."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com 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 TheStreet.com, 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. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on TheStreet.com. 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 TheStreet.com, 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.