By Stockpickr Staff
Posted on June 5, 2009

According to Jim Cramer, the market can’t continue to rally off of just the strength in oil. Cramer would rather see the market running higher led by banks, tech and oil. However, the market has started to lose the positive action in the first two and is now being driven primarily by the strength in crude oil, which is currently trading close to $70 a barrel.

Cramer thinks oil is too easily manipulated and that the government seems oblivious to the manipulation and the use over leveraged ETFs that help to drive commodities up and down. He doesn’t like that the market is held hostage to oil and he feels investors would be better served by taking profits and waiting for more clarity.

Cramer is also watching Bank of America (BAC) as a key “tell” to future market direction. He likes BofA because it’s a play on the housing cycle, TARP cycle and mutual fund cycle. If Cramer were back at his old hedge fund, he would have BofA up five times on his quote screen.

Recently, Cramer found opportunity in stocks that are hedges against global inflation, stocks that are plays on China and some key stocks that can indicate future market direction. 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 Inflation Hedge Stocks: Cramer has noticed that investors are gobbling up stocks to hedge against global inflation. In a June 1 blog post, he wrote: “It's funny to think of stocks as an inflation hedge because they've always been victims of inflation. But the brutal competition that once typified the minerals industries and the scarcity of plays against them has caused a shortage and short squeeze of amazing proportions as we span the globe looking for inflation plays.” Cramer’s Inflation Hedge Stocks include Vale (VALE) and Agnico Eagle (AEM).

Cramer’s Key Stocks to Market Direction: Cramer has identified a number of key stocks that act as tells to future market direction. On last Thursday’s “Mad Money” episode, he told viewers that the rally is led by three sectors: oil, technology and the financials. Cramer’s Key Stocks to Market Direction include Schlumberger (SLB) and Bank of America (BAC).

Cramer’s Four Horseman: Are Cramer’s four horseman of the Nasdaq still in play? In a June 1 blog post, he wrote: “I would still jump on the four horsemen, but only with half positions with hope that somehow the stocks cool so more can be bought.” Cramer’s Four Horseman include Apple (AAPL) and Google (GOOG).

Cramer’s China Stock Plays: Cramer believes that the move in China is far from over. In a June 2 blog post, he wrote: “I am also looking at the Asia Tigers Fund (GRR), the appropriately symbol'd GRR, a closed-end fund I haven't looked at in a couple of decades that gives you exposure to China and the ancillary markets that are truly on fire.” Cramer’s China Stock Plays include SanDisk (SNDK).

Cramer’s Worry-Wart Stock Plays: Cramer thinks the market needs to get rid of the worry-warts. On Wednesday’s “Mad Money” episode, he told viewers to play the worries over rising gas prices with stocks such as Transocean (RIG). Cramer’s Worry-Wart Stock Plays include FirstMerit (FMER) and Goldman Sachs Group (GS).

Cramer’s Safety Last Stocks: Are market players running from safety stocks? In a June 1 blog post, Cramer wrote: “People want Sears Holdings (SHLD) because they want to play companies that will benefit coming out of a recession and are still solvent.” Cramer’s Safety Last Stocks include Johnson Controls (JCI) and Fortune Brands (FO).

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