Jim Cramer sees the light at the end of the tunnel for the housing sector and the U.S. economy -- if the controversial housing bill can pass the Senate. He even went as far as to say that you have to buy a house sometime in the next six months.

Cramer feels the passing of the bill could also mark a bottom in the banking stocks and fuel a short-squeeze for the rest of the market. No matter what happens with the bill, Cramer is ready to identify the next bull market for investors.

Recently, Cramer found opportunity in four bank stocks, biotech stocks and retail stocks. 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 Four Fortress Bank Stocks: Cramer thinks four banks will survive the financial crisis and be well-positioned to buy the failing banks at fire sale prices. On Monday’s “Mad Money” TV show, Cramer told viewers: "These banks have worked through the bad loans and are now successfully raising capital, putting them in a position to capitalize on everyone else's mistakes." Cramer’s Four Fortress Bank Stocks include Bank of America (BAC).

Cramer’s Biotech Trend Plays: Cramer sees a number of positive trends developing for the biotech sector. In a July 21 blog post, he wrote: "It confirms a second trend that the biotechs are the best buys when it comes to a bank-led slowdown. Just like in 1990, the biotechs -- then led by Amgen (AMGN) -- produced spectacular results as their earnings shined in the face of a collapse in the financials." Cramer’s Biotech Trend Plays include Gilead Sciences (GILD).

Cramer Bank & Builder Stock Picks off the Housing Bill: Cramer thinks the housing bill will provide a healthy boost to the bank and homebuilder stocks. In a July 23 blog post, he wrote: "The housing bill is a huge deal. I don't think people realize how big." Cramer’s Bank & Builder Stock Picks off the Housing Bill include Toll Brothers (TOL) and Freddie Mac (FRE).

Cramer’s Plays on the Ethanol Mandate: Cramer thinks if the ethanol mandate is abolished it will be disastrous for the ag stocks. In a July 24 blog post, he wrote: "If you scrap the ethanol mandate or if people even think that it will be scrapped, you will see grains collapse just as quickly as oil collapsed when we found a level we didn't need it -- remember, we don't "need" ethanol, but it is mandated." Cramer’s Plays on the Ethanol Mandate include Potash (POT).

Cramer’s Rig Stock Plays: Cramer believes that rig stocks are the best energy trade. In a July 21 blog post, he wrote: "First, the cost of renting a rig went up. That's right, it went up. You probably didn't even notice it, but the Brazilians, which had shunned deepwater drilling that needs rigs came back in, and came back in big." Cramer’s Rig Stock Plays include Transocean (RIG) and National Oilwell Varco (NOV).

Cramer’s Retail Plays off Lower Gasoline Prices: Cramer sees opportunity in the retail sector after gasoline fell 10% from its highs. In a July 22 blog post, he wrote: "I want to take the other side of the trade, and soon. I am adamant that gasoline has peaked and that the public will feel good about this group when gasoline comes back to $3.50, where I believe it is going." Cramer’s Retail Plays off Lower Gasoline Prices include Amazon.com (AMZN) and Macy’s (M).

Lightning Round: Cramer was full speed ahead Thursday night with his latest Lightning Round. He was bullish on several stocks, such as Nabor Industries (NBR), Schlumberger (SLB) and Petrohawk (HK), and bearish on several others, including Whole Foods (WFMI) and Halliburton (HAC).


A note from James Altucher:

Every weekend I send an email to Jim Cramer and several hedge fund managers about the most interesting portfolios posted on Stockpickr that week. Usually those portfolios not only list stocks according to a theme but also offer significant analysis as to why the stocks are cheap.

Here are some examples:

Stocks related to drilling the Marcellus Shale

MLPS with yields above 7%

Microcaps trading for less than tangible book

Stocks that do well after Hurricanes

Here's the challenge: Build a portfolio at Stockpickr.com with great analysis, and send me the link. Each great portfolio (with analysis) will get posted on TheStreet.com with your byline (as a "Stockpickr Guest Columnist") and will be included in my email I send to Jim and the other
hedge fund managers on my list.


Originally published July 24, 2008