NEW YORK ( TheStreet) -- "Be very careful," Jim Cramer cautioned the viewers of his "Mad Money" TV show Thursday after a 161-point gain in the Dow Jones Industrial Average. Cramer said that things may look better today, but they could be worse tomorrow. Cramer said bluntly that there are no lifeguards in the stock market, and euphoria is often followed by fear a few days later. He said there are still three strong currents tugging at the markets, and any of the three could pull us back under tomorrow. The ongoing nuclear crisis in Japan is, of course, front and center in everyone's mind, said Cramer. And while Japan's use of the military to help fight the looming disaster may seem like positive news, any number of variables, including a change in wind direction towards Tokyo, could spell disaster again. The markets are also still mulling over the unrest in Bahrain, and the price of oil, which after a brief reprieve, started again to the upside today. There's also fears of troubles in Portugal, Spain and Ireland, he added, with the price of the Euro also still in play. Either of these two issues could come back to haunt the markets on any given day. Cramer said he's still bullish on Freeport-McMoRan ( FCX), Joy Global ( JOYG) and Potash ( POT), but said investors need to be careful with everything else.
Panic Selling"I don't know how long this rally will last," Cramer admitted to his viewers, but, he said, staying in the game will make you money. In a market where timing is everything, Cramer said that selling into a sell-off, like we had yesterday, has never been the right move. In fact, he said that during his entire 31 year career on Wall Street, panic selling has worked once, and only once. That "once" was not the market crash in 1987, nor the dot-com bust in 2000, nor the days after 9/11, said Cramer, and it certainly wasn't this year after Egypt, or Libya or Japan. Cramer said the only time panicking made sense was in 2008, when he made the bold call on the "Today Show" that investors needed to take out any money they'd need over the next five years. The difference in 2008 was that the financial system was breaking down, and there was systemic risk to anything associated with it. Cramer said with all other crises, the market trends down gradually, with intermittent days like today when investors can sell at better prices. Cramer called out those who advocated selling amidst yesterday's sell off, saying that they only cost investors money. "Think about how much better prices are today than they were yesterday," he said. Panic is never, for all practical applications, the answer. There will always be a better exit price ahead.
Coal ShinesWith the prospects for a bright future for nuclear power waning by the day, Cramer said that coal will be king, as its more easily transported around the globe than the other logical choice, natural gas. But which coal stocks to buy? Cramer offered up his rankings for the best, and worst, coal companies. Topping the list is Peabody Energy ( BTU - Get Report), the largest coal producer and the one with the best export capability to Asia. Coming in second, Alpha Natural Resources ( ANR), thanks to its pending acquisition of Massey Energy ( MEE). Also on the recommended list were Patriot Coal ( PCX), James River Coal ( JRCC) and Consol Energy ( CNX - Get Report). Cramer said any of these names would make a good investment, although he'd wait for a pullback in Consol, which is at a 52-week high. Cramer also gave honorable mention to favorite Walter Energy ( WLT), a leader in the metallurgical coal used to make steel. Among those stocks to avoid, Cramer said he'd steer clear of Cloud Peak Energy ( CLD), which is up 43% since its 2009 IPO, and Arch Coal ( ACI), both of which have little export capability.