The strengthened balance sheets mean the return of dividends, and Najarian thinks the next sector to watch for with this story will be the financials. He identified JPMorgan (JPM) specifically, who has stated that they are preparing to implement dividends again.

He views JPMorgan Chase (JPM) as a winner. The stock, which hovers around $45 a share, could hit 60 to 70 in the medium term, he argues. "The company has been able to earn $4 to $4.50 a share over time," he says; "now that run rate could climb to $6.50," due to its purchasing the assets of Bear Stearns and Washington Mutual at fire-sale prices.

First, the two banks I like: Goldman Sachs (GS) and JP Morgan (JPM) seem like they are waking from their slumber. Some of that might be an interview I read on Bloomberg.com , where Dick Bove raves about the banks sector. Given that he most recently squawked negatively on Wells Fargo (WFC), he is now becoming a total prop of the bulls. I wonder if Meredith Whitney would take a victory bow and slap Goldman Sachs on to her buy list? Why not? She's up $15 from her sell recommendation.

Right now this formula applies to pretty much every stock I follow -- could be Apple (AAPL) or JPMorgan (JPM) or Chevron (CVX) or Chesapeake (CHK) or Wells Fargo (WFC) or Cisco (CSCO) -- but RIMM stands out as the textbook case of what's going on.

JPM sems to follow more of a pattern than some of the other stocks I have traded.

This rally will fade if it is based on tech, oil and the industrials, as it is now. With Wells Fargo (WFC) teetering and JPMorgan (JPM) always looking like it is rolling over and Goldman Sachs (GS) failing, you fall prey to a market that is based on productivity and job cuts and not expansion and credit improvement.

Cramer said gauging the market is as simple as looking at a handful of stocks. The ones on Cramer's radar include JPMorgan Chase (JPM), Goldman Sachs (GS), Wells Fargo (WFC) and Bank Of America (BAC), four stocks which he owns for his charitable trust, Action Alerts PLUS.

existing holding

Cramer can think of only two financial companies that not only survived but thrived as a result of the credit crisis: Goldman Sachs and JPMorgan Chase. He recommends buying JPM as a recovery play, though, because it’s cheaper and he expects the stock “to increase over time” thanks to a number of strong diversified businesses. “I have no doubt that once a recovery gets under way,” Cramer says, “JPMorgan’s share price will reflect what we already know – that is has become one of the strongest banks in the world.”

GOOD LOOKING BALANCE SHEET

i'm always wrong in timing

a key player in the financial disaster & now they are in charge & making $$$ on taxpayer's back

bad customer service

jamie dimon is shrinking the business and everyones pay but his. a mass exodus of talent makes the best into the worst bank in America and perhaps the world

loss of dividend

heavily indepted,and they are the bailout bandits

has some stock share of this.

stinky

any stock in the financial sector neighborhood

I've lost money on this one.