Mad Money

Cramer Identifies a Theme for Up or Down Days

Cramer's 'Big Picture' Themes

Cramer is always looking for investment ideas that do well when the market goes higher, but also give home gamers something to fall back on when the averages fall.

Take homeland security, for example. Although Cramer wishes it wasn't so, this is a long-term theme. The U.S. Congress may seek to trim the U.S. Defense budget, but lawmakers won't cut in areas pertaining to protection and prevention. Cramer said the trend won't go away, so long as the U.S. continues to fight terrorism. Meanwhile, countries around the world spend $140 billion fighting terror. The number should double over the next decade, according to the British Trade and Information Office. All said and done, Cramer figures investors might as well try and make some money off of this enormous defense theme.

There are many ways to play security, but Cramer said many of them are speculative. For that reason, he recommends investors take caution when selecting stocks. Before buying any counter-terrorism plays, Cramer suggests doing your homework and waiting for a pullback.

As more and more sensitive information gets stored online, the market for cyber security grows. In this space, Cramer recommends Verint . It makes software used by security companies, law enforcement and intelligence agencies to analyst video and communications data. But like the aforementioned name, Cramer wouldn't pay up for this one. Instead, wait for a pullback.

To capture both the physical and network side of security, Cramer recommends NICE Systems . This Israeli company makes analytics software for video surveillance, as well as communication inception and other spy-like products.

"The need to secure our people against terrorists and our data against all kinds of online predators is not going away anytime soon and that makes counter-terrorism and network security two big businesses," Cramer said. "It's a long-term theme to fall back on and circle the wagons around when the market gets hammered, but don't try to chase these security stocks when the averages are roaring. You will only get hurt."

Call Cramer: 1-800-743-CNBC

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