NEW YORK ( TheStreet) -- "We are in a better place, financially speaking, than we were a week ago," Jim Cramer told the viewers of his "Mad Money" TV show Tuesday. Cramer said while the devastation in Japan is heart wrenching, if the worst case scenario for a nuclear disaster is off the table, then the stock market is set to rebound. According to Cramer, the financial world is radically different than it was just a few days ago when the world was worried about sky high oil prices and unrest in the Middle East. But with Japan's oil demand on hold, and calm slowing taking hold in Saudi Arabia and Bahrain, Cramer said the speculators have been flushed from the market, and oil prices are returning to normal. Cramer said the world was also worried about the Federal Reserve and the European Central Banks raising interest rates. But today, the Fed said rates will remain low, and the Europeans seems poised to do the same in lieu of the Japanese tragedy. The markets also worried when communications chip maker Finisar ( FNSR) disappointed Wall Street with weak sales. But here too, the coming Japanese demand should cure all sales and inventory worries. Cramer said he expects to see strength in a host of companies, from chips to copper to machinery and agriculture. He said Joy Global ( JOYG) and Caterpillar ( CAT), a stock which Cramer owns for his charitable trust,
Nikkei Not in Free FallIn the "Off The Charts" segment, Cramer went head to head with colleague Dan Fitzpatrick to determine how the Japanese markets are faring amidst the crisis, and which stocks might be ready to bounce back first. Fitzpatrick said a chart of the Japanese NIKKEI ( NIKI) average shows that the markets fell 31% below its 50-day moving average in 2008 at the beginning of the financial mess, and 12.7% in a similar panic in 2010. But today, the NIKKEI has only fallen 8% below its moving 50-day moving average, showing the the Japanese markets are not in free fall. Fitzpatrick also looked at oil prices, which have fallen from their highs of $104 a barrel back below $100 a barrel, a key support level. Fitzpatrick said the next stop for oil is likely $93 a barrel. Fitzpatrick and Cramer both agreed that while oil prices are falling, coal is the place to be, particularly with Peabody Energy ( BTU). Fitzpatrick noted that Peabody has seen a series of $36 moves in the stock, followed by periods of consolidation. He said the stock is seeing support at $61 a share, but is poised to ramp 45% to the mid $90's soon. Cramer said the fundamentals for a rally in Peabody are strong, as the company is a major coal producer in Australia, which supplies Japan. With the Japanese nuclear industry in shambles, the country's logical choice will be increased coal usage until order can be restored.
America Back in the GameIn the "Executive Decision" segment, Cramer sat down with Harold Hamm, chairman and CEO of Continental Resources ( CLR - Get Report), one of the companies leading the charge to unlock the huge U.S. oil reserves in the Bakken shale region of Montana and Wyoming. Hamm said the oil industry always knew the Bakken region was big, but it simply wasn't commercially viable to drill conventional wells, or even horizontal wells. He said only with new multi-stage fracturing technology has the Bakken been able to be "turned on" to its potential. This technology does come with a price however, Hamm noted, as some the company's wells span two miles and require 30 separate stages of fracturing to produce oil at a cost of $60 a barrel. But given today's $100 a barrel oil price, Hamm said America is "back in the game." The Bakken has helped America increase its oil production for the five years, said Hamm, with 2010 seeing a 2.5% increase in production. He said American oil imports have fallen below 50% for the first time since 1997. The Bakken is also creating jobs, as Continental has increased its labor force from 5,000 in 2005 to 30,000 today. Cramer called Continental Resources an American success story, and recommended the stock.