Jim Cramer believes that the current action in the stock market has nothing to do with earnings or fundamentals. He thinks the action right now is all about a “Cold War” between shareholders, creditors and the federal government. Cramer says the financial stocks are in trouble because the Obama administration plans to enforce strict new rules for banks who want to borrow money from the TARP program.

He has explained that this new action by President-elect Obama’s economic team is leading to a trend in the market where only the companies that are recession-proof are going up, because they don’t need to access the TARP plan. Cramer thinks this is the reason the market is off to its worst start in history.

Despite this negative trend, Cramer is still finding plenty of plays long and short in the market. Recently, he found some opportunities in once-loved bargain stocks, stock plays for a panicked market and stock picks based off of technical analysis. 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 require a RealMoney subscription).

Cramer’s Chart Week Plays: All week long, Cramer has been running a “Charts Vs. Fundamentals” series that highlights the benefits and the drawbacks of technical analysis. On Wednesday’s “Mad Money” episode, Cramer told viewers that he prefers the iShares Xinhua China 25 (FXI), despite the fact that chartists think the iShares MSCI Brazil Index (EWZ) is the best play. Cramer’s Chart Week Plays include Potash (POT) and ConocoPhillips (COP).

Cramer’s Four Plays for a Panicked Market: Cramer has spotted four stocks that could help to push the Dow even lower. In a Jan. 14 blog post, he wrote: “These are all Main Street stocks. The bank stocks are totally in the hands of the manipulators. These four, emblematic of so many others, aren't. But those four can do a lot of damage to the Dow Jones, and you need to be aware of it.” Cramer’s Four Plays for a Panicked Market include Exxon Mobil (XOM) and McDonald’s (MCD).

Cramer’s Stocks at Enticing Lows: Cramer sees opportunity in a number of stocks that are trading close to their recent lows. In a Jan. 13 blog post, he wrote: “These are all "shopping cart" stocks where you need to ready yourself for a moment to start buying so you don't miss the January low that is like the November low, one that obviously people kicked themselves about for six weeks and were worth every penny to catch.” Cramer’s Stocks at Enticing Lows include Walt Disney (DIS) and General Electric (GE).

Cramer’s Cold-Future-for-Nat-Gas Stocks: Cramer sees problems ahead for the natural gas complex. In a Jan. 14 blog post, he wrote: “These stocks have come well off their recent highs, but as far as I am concerned after this break below $5 in this weather, I have to believe that $4 cannot hold. At that price, every one of these stocks will be 20% lower.” Cramer’s Cold-Future-for-Nat-Gas Stocks include Devon (DVN) and Apache (APA).

Cramer’s Once-Loved Stocks Becoming Bargains: Cramer wants investors to ignore the negative action n the markets. In a Jan. 13 blog post, he wrote: “If you liked these stocks when the market was hot, you should like them even more now that the market is cool. But that has not been the way of those who blew in the wind, whether they be scaredy-cat rebels or scaredy-cat bulls.” Cramer’s Once Loved Stocks Becoming Bargains include NYSE Euronext (NYX) and Caterpillar (CAT).

Cramer’s Pockets of Positive Action: Is now the time to be positive on the stock market? In a Jan. 9 blog post, he wrote: “I remain skeptical of the skeptics in biotech and like Celgene (CELG) ahead of next week’s presentation.” Cramer’s Pockets of Positive Action include Rite Aid (RAD) and Altria (MO).

(Editor's note: At the time of publication and/or original publication of his posts and shows, Cramer owned ConocoPhillips, Celgene, Altria, General Electric and iShares Xinhua China 25 for his Action Alerts PLUS charitable trust.)

Posted on Jan. 15, 2009