Jim Cramer says that without the passing of Treasury Secretary Henry Paulson's bailout plan, the market could be in for some serious trouble. He even made the dire prediction that if the plan isn’t passed, the Dow could fall under 8400 in a worst-case scenario.

Cramer doesn’t want to see that happen. And he is smart enough and experienced enough to know that when the market is facing too many headwinds, it’s best to remain on the sidelines or get defensive.

Cramer will find the bull market that comes out of this uncertain stock market environment. Just make sure you’re paying attention so you can know not only where that bull market is but also how to profit from it.

Recently, Cramer found opportunity in stocks that will win if the bailout plan is passed, stocks linked to hedge funds and stocks to avoid due to Boeing’s (BA) labor dispute. Here are some Cramer highlights from over the past week as aggregated from his "Mad Money" TV show, the "Stop Trading!" segment on CNBC and his RealMoney blog posts (these blog post links require a RealMoney subscription).

Cramer’s Worst-Case Scenario: Recently, Cramer outlined a worst-case scenario for the market that would put the Dow under 8400. In a Sept. 26 blog post, he wrote: “Without the Paulson plan, or if the plan is so watered down and delayed, I have been saying all bets are off and we could be in for a huge swoon.” Cramer’s Worst-Case Scenario stocks include Microsoft (MSFT) and American Express (AXP).

Cramer’s Possible Stock Buys Linked to Hedge Funds: Cramer says the oil and natural gas stocks have sizable amounts of hot money in them. In an Oct. 1 blog post, he wrote: “I think, once again, this is 'hedgefunditis,' the amazing disintegration of the stocks that are linked with hedge funds, and few stocks are more linked than Conoco (COP) and National Oilwell Varco (NOV)." Cramer’s Possible Stock Buys Linked to Hedge Funds include Ultra Petroleum (UPL) and BP (BP).


Cramer’s Tech Take: Is it time to buy technology stocks? In an Oct. 1 blog post, Cramer wrote: “Why do we focus on Google (GOOG) when, after all, it is ad-supported and the ad market is in a severe depression. It is a cyclical decline, so when it gets better, Google will take share, but clearly there are better bargains out there.” Cramer’s Tech Take stocks include Apple (AAPL) and EMC (EMC).

Cramer’s Bailout Plan Winners: Cramer sees some big winners if the bailout plan gets passed. On last Thursday’s “Mad Money” TV show, Cramer told viewers: “I see some obvious winners once the Paulson plan is signed into law.” Cramer’s Bailout Plan Winners include Goldman Sachs (GS).


Cramer’s Next Bank Seizures: Which bank is next to be seized by the FDIC? In a Sept. 26 blog post, Cramer wrote: “These two have done everything wrong, in my opinion, and have courted this for months. It seems like the ballgame is finally over.” Cramer’s Next Bank Seizures include Downey (DSL).

Cramer’s Boeing Labor Strike Losers: Cramer sees some obvious losers in the Boeing labor dispute. On last Thursday’s “Mad Money” TV show, Cramer told viewers: “With both sides of the labor dispute gearing for the long haul, Boeing's suppliers just cannot be owned.” Cramer’s Boeing Labor Strike Losers include Goodrich (GR) and Rockwell Automation (ROK).

(Editor's note: At the time of publication and/or original publication of his posts and shows, Cramer owned Goldman Sachs and National Oilwell Varco for his Action Alerts PLUS charitable trust.)

Posted on Oct. 2, 2008