Investors need to maintain a world view to compete in this market, Cramer said during Tuesday's Stop Trading!, meaning a focus on the larger, long-term picture. "You can't have a day view." He recommended looking out six to 18 months.
Take gold, for instance. The Mad Money host said he thinks the price per ounce will reach $1,600, but that doesn't mean it won't drop to $900 before it gets there.
When considering a smaller-bank stocks, find out how much exposure the company has to the worst real estate markets. Any mortgage concentration in Florida, California, Indiana, Nevada, Ohio or Michigan should be a red flag to investors, Cramer said. But banks like Hudson City that sidestepped subprime can be bought.
Cramer's message for the day, though: Market sentiment is way too negative right now. Even without an Ambac resolution, he said, "I want to but this market."
"The put buying is off the charts," he said. "It's just the highest I've ever seen. It can't be right."
Cramer also recommended AT&T for the yield. And he likes XTO Energy and Transocean for their back-and-forth growth style. XTO has a history of climbing $15, then pulling back $7, Cramer said. RIG usually adds $20 before pulling back $10. Watch for those trends.
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