Cramer's Russell Rebalancing Plays

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The Russell 2000 index is the key to this year's trades, he told viewers of his "Mad Money" TV show Thursday.

When a company gets added to the index, the biggest advantage is that the stock gets a lot more attention and promotion, Cramer said.

Every year, the Russell indexes (not indices), he explained, need to be rebalanced because of certain stipulations the indexes have. The annual rebalancing of the Russell 2000 index, which is made up of 2000 small-cap stocks, will take place in June this year.

Cramer said he's here to try to predict which stocks will join the index and thus rally. The Russell rebalance, he said, is a "great" trade. It is one of the few events in the year that causes certain stocks to go up.

Cramer said he has three favorite stocks that he believes are likely to get added to the Russell 2000.

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