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Peaks & Rallies

Days like today – with the Dow up 417 points – are the reason Cramer begs you not to get panicked out of the market. Buy damaged stocks on the way down because they’re the first to bounce back when things turn up.

That’s why he’s probably been the biggest cheerleader for the oil and gas, agriculture and gold sectors. The best performers Tuesday were the Chevrons , Exxon Mobiles , Transoceans , Devons and Apaches . Deere , Potash and Mosaic did well, too. And so did Cramer favorite Agnico-Eagle . But this rally isn’t done, Cramer said. He’s expecting another week or so of strong stock prices.

If you take anything away from today’s action, it has to be these three things:

Use this bump to sell out if this market makes you skittish. If you’re scared, take your profits, Cramer said, and sit on the sidelines until the environment improves.

Second, the best strategy is always to pick winning sectors and stocks. Again, that’s why Cramer has been talking up oil and gas, ag and gold.

Lastly, we won’t see any lasting improvement in this market until home prices improve.

What will it take to get there? The Fed needs to buy the worst mortgage-backed bonds and retire them, Cramer said. If the paper’s worth as much as people say, the government might even make some money.

Be sure to watch the video for Cramer’s take on why Ben Bernanke is the modern-day Sisyphus, how to trade a core position to profit and more.

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

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