By Stockpickr Staff
Posted on March 12, 2009

Jim Cramer thinks the current U.S. stock market rally is the real deal. He thinks the rally got going the day that noted bearish market forecaster Nouriel Roubini made a call for Dow 5,000 and banking analyst Meredith Whitney said there were more problems ahead for the financials.

Cramer has made it clear that when the sentiment on Wall Street gets this negative, a bottom can develop for stocks. Of course, the markets were also helped by some positive news, such as rumors of a return for the “uptick rule” and positive comments out of Texas Instruments (TXN) about 3G cell phone inventories.

Cramer believes the market is at a critical point, where many investors are hoping for a pullback before they jump in and buy stocks. However, the market rarely lets people in when it’s poised to trade higher. The buying demand will be so intense that every time the market pulls back, the bulls will rush in and buy in fear of missing the move.

If the market is set to continue to run, how should you play? Cramer has plenty of ideas.

Recently, Cramer found opportunities in Dow stocks, high-growth pharma stocks and stocks with pin action. 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 Dow Buys: Cramer knows just the right stocks to buy in the Dow. In a March 9 blog post, he wrote: “No, I like eight of them, eight that I would be buying right here. If you buy in quarters -- 25 shares per 100 you want owned -- you'll need to start today.” Cramer’s Dow Buys include Caterpillar (CAT) and Wal-Mart (WMT).

Cramer’s What the Bulls Need: What do the bulls need to keep the rally going? Cramer thinks he knows. In a March 11 blog post, he wrote: “If you are a bull, what do you want the market to do? Soar? Meander? Go down? These are not silly questions -- I think a real bull, like Doug Kass, needs to see bearishness return with a vengeance but fail anyway.” Cramer’s What the Bulls Need includes Apple (AAPL) and Mosaic (MOS).

Cramer’s High-Growth Pharma With Money Flow: Is money flowing into high-growth health care companies? In a March 12 blog post, Cramer wrote: “To me it looks like we have a nice combination of beaten-down stocks, good growth and money that is at last freed up to invest, dedicated money that stays with the remainder of the group no matter what.” Cramer’s High-Growth Pharma With Money Flow includes Amgen (AMGN) and Biogen Idec (BIIB).

Cramer’s Pin-Action Stocks: Cramer believes that positive action is spreading throughout the market. In a March 10 blog post, he wrote: “The extrapolations -- the pin action -- today are amazing. Let's go through them. First is oil. As oil goes up to the high $40s, you can get a lot of money flooding back to this area.” Cramer’s Pin-Action Stocks include Foster Wheeler (FWLT) and Skyworks Solution (SWKS).

Cramer’s Worst-Case Dow View: Cramer has put together his worst-case Dow view for the 30 Dow components. In a March 6 blog post, he wrote: “ExxonMobil (XOM) is rich vs. the other oils. It doesn't have great dividend support. However, it did trade to $56 in the October lows, so I have to believe it is realistic to see them again, and it would still not be cheap vs. the other oils. That's OK, much loved, I think it holds $56 because I am a bull on oil.” Cramer’s Worst-Case Dow View includes General Motors (GM) and Microsoft (MSFT).

Cramer’s Drill-Down Stocks: Cramer thinks it’s time to drill-down and figure out what is good and bad in the current bull run. In a March 11 blog post, he wrote: “GOOD: The all-important farm group, which the bulls want to see run, is having a huge second day, and I like to see that happen.” Cramer’s Drill-Down Stocks include Google (GOOG) and Research In Motion (RIMM).

Who’s on Stockpickr Answers? David Peltier will be on Stockpickr Answers on March 13 to respond to investing and trading questions posed by members of the Stockpickr community. Not a member? Join the Stockpickr community today -- free.

P.S. Where is Cramer putting his own money? Take a free peek at his personal portfolio to see all his buys and sells by clicking here. When you do, Jim will also send you exclusive email alerts telling you everything he’s about to add to or shed from his Action Alerts PLUS portfolio -- before he makes his trade.