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NEW YORK ( TheStreet) -- "This market is all about terror," Jim Cramer told his "Mad Money" TV show viewers Friday.

He said the short sellers are worried about getting a deal in Washington, while everyone else is worried about not getting one.

Cramer said Congress in a best-case scenario eeks out meaningful reform, the kind that will shave trillions of dollars from the federal budget and save our beloved triple-A rating. This would be a nightmare for the short-sellers, he said, as the market is a coiled spring and would pop to the upside and wipe out their gains.

In a second scenario, a deal is reached, but it includes only token reforms that will not be big enough to save the nation's credit rating. Cramer said in this case, the Treasury would have to pay higher interest rates on its bond, which in turn sends up everyone else's rates and helps re-stall the economy.

Finally, there's the ugly scenario, the one where no deal is reached and the government not only loses its credit rating, but also defaults on its obligations. Cramer said there are other options, such as invoking the 14th amendment or selling off assets, but the real fear is that the damage done will make restarting the economy impossible.

Cramer said he's not sure which scenario will develop over the weekend, but the terror will continue until an outcome materializes.

Next Week's Game Plan

In his "Game Plan" segment, Cramer outlined a group of stocks that have his attention next week, even if a debt agreement is not reached in Washington.

On Monday, Cramer said chemical maker FMC ( FMC) will be a good buy, but he's worried about the run up in health food maker Herbalife ( HLF). For Tuesday, Cramer said that Duke Energy ( DUK), with its great dividend, will be a safe bet, but Peet's Coffee & Tea ( PEET), which is moving into packaged coffee, is one to avoid.

Then on Wednesday, Cramer said Allergan ( AGN), Clean Harbors ( CLH), Energy Transfer Partners ( ETP) and Pioneer Natural Resources ( PXD) will all be buys, especially if the market puts them on sale earlier in the week.

Cramer offered some warnings for Thursday. He said that Treehouse Foods ( THS) may be under pricing pressure and LinkedIn ( LNKD) is simply too risky. Cramer did give the nod to Copano Energy ( CPNO), however, as the stock offers a great yield and may be a takeover target.

Finally for Friday, Cramer said he likes Enbridge ( ENB), and would buy ahead of the quarter, and also Windstream ( WIN), which has a juicy 8.2% dividend yield.

Lightning Round

Cramer was bullish on Exelixis ( EXEL), Buckeye Partners ( BPL), PPL Corp ( PPL) and GlaxoSmithKline ( GSK).

He was bearish on Photronics ( PLAB).

Closing Comments

In his "No Huddle Offense" segment, Cramer highlighted what he said is the "feel good" story of the year, the discovery of the Utica oil shale formation in Ohio. Cramer said the Utica shale may be the biggest U.S. oil discovery in 43 years, and Chesapeake Energy ( CHK) said it's Utica holdings could add $15 to $20 billion to its assets.

Cramer said adding the Utica shale, which sits under the Marcellus shale field, to the Bakken, Eagleford and other shale fields in the U.S. now represents a serious opportunity towards energy independence. He said that by converting trucks to natural gas, then developing all of our shale assets, America could break its dependence on OPEC and possible import oil only from North America.

Cramer told viewers to go buy some Chesapeake Energy, which he believes could now be worth twice the price.

--Written by Scott Rutt in Washington, D.C.

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At the time of publication, Cramer was not long any equities mentioned.

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.

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