Jim Cramer's 'Mad Money' Recap: Next Week's Game Plan

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NEW YORK (TheStreet) -- This market is having a hard time making up its mind, Jim Cramer said on "Mad Money" Friday as he laid out his game plan for next week's trading.

Cramer said Monday will hinge on the Chinese manufacturing PMI number. A weak number could roll back many of the recent gains in the industrials. Also beginning on Monday is the Howard Weil Energy Conference, which should help boost stocks like Ensco (ESV), Cheniere Energy (LNG) and Schlumberger (SLB).

Next, on Tuesday, it's McCormick (MKC), Walgreen (WAG) and PVH (PVH) reporting. Cramer said if good numbers sends these stocks higher that could mean good things for the rest of the market.

Wednesday brings the hotly anticipated initial public offering of King Digital, maker of the popular game Candy Crush, along with earnings from Paychex (PAYX) and more comments from the Federal Reserve. Cramer said investors should get in on the IPO and pay attention to the other two.

Then, on Thursday, it's Lululemon Athletica (LULU) and Restoration Hardware (RH). Cramer said strength in these two names would be great for the technology and biotech groups.

Finally, on Friday, Cramer said he'll be watching two cloud IPOs, 2U and Aerohive Networks. Good news for these IPOs would be great for the speculative biotech sector, Cramer concluded.

Cramer's Playbook

In a Friday edition of "Cramer's Playbook," Cramer answered the question of whether exchange-traded funds or mutual funds are the best way to invest.

ETFs and mutual funds are everywhere, said Cramer, and the choices are enough to make your head spin. He's long been on record despising leveraged ETFs but low-cost index funds, like those that mirror the S&P 500, are a good bet.

What about mutual funds? Cramer said mutual funds do offer diversification but often at much higher fees than ETFs, making returns lower.

For those who don't have the time to pick individual stocks, Cramer said he'd stick with index funds and the SPDR Gold Shares (GLD), which tracks the price of gold. Investors must avoid any ETF that rebalances daily, however, as those are a sure-fire way to get burned.

When Bad Things Happen

Sometimes bad things happen to good stocks, Cramer told viewers. That's certainly the case in today's market where money is rotating out of consistent growers and back into the cyclicals.

Cramer explained that after the Fed confirmed the economy is growing earlier this week, the money immediately began shifting away from consistent growth names like Salesforce.com (CRM) and Gilead Sciences (GILD) and into slower growing names like Hewlett-Packard (HPQ), Intel (INTC) and even Microsoft (MSFT).

While there's nothing wrong with the faster-growing stocks, fund managers are simply looking for the explosive growth that these beaten -down companies could possibly deliver with a genuine expansion in economic activity.

Stocks like AT&T (T), Caterpillar (CAT) and Nucor (NUE) are once again in demand, Cramer concluded, and will be until they fail to deliver what investors are expecting.

Lightning Round

In the Lightning Round, Cramer was bullish on Teledyne Technologies (TDY), Jack in the Box (JACK), Unum Group (UNM) and Baidu.com (BIDU).

Cramer was bearish on Sony (SNE) and Changyou.com (CYOU).

Executive Decision: Manny Perez De La Mesa

In a "thinking of summer" edition of his "Executive Decision" segment, Cramer spoke with Manny Perez De La Mesa, president and CEO of Pool Corp (POOL), the swimming pool company that derives 13% of its business from new pools, 29% from refurbishing older ones and the rest from pool maintenance supplies. Shares of Pool are flirting with new highs despite having come off a horrible winter.

Perez De La Mesa said the pool business is still in the early phases of recovery and has a long way to go. He said his company's earnings would be even stronger if you subtracted the negative pull from new store openings and acquisitions.

When asked about his business, Perez De La Mesa said Pool Corp is taking share across the board, even though it competes with everyone from smaller stores to mass merchants. Their advantage lies in the company's people, who knowledgeably staff the 220 locations.

Turning to the topic of this year's rough winter, Perez De La Mesa said since most pools are closed during this time, it's not really a factor, although his company's maintenance and repair business remains brisk.

Cramer said he wishes this stock would pull back so he could buy in.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer told viewers to be careful when it comes to the slew of seemingly red-hot IPOs that have been flooding the market of late.

While many of these companies are in sexy industries like the cloud and biotech, Cramer said the fact is that many are losing money and their IPOs are artificially engineered to spike on their first day of trading.

Many of these stocks will drift lower, Cramer warned, and many of those will undoubtedly have to issue even more stock in a few months time, sending shares sharply lower. Cramer said investors need to sell when the insiders do, and often that's on day one.

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

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

To email Scott about this article, click here: Scott Rutt

Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

At the time of publication, Cramer's Action Alerts PLUS had no positions in stocks mentioned.

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