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Cramer Remix: Your post-election stock market playbook

Jim Cramer is concerned with the extreme slowdown in the restaurant industry, which was confirmed by food service company Sysco on its conference call.

Restaurant traffic continues to show year-over-year declines, with restaurant spending decelerating as well, Sysco said.

"That is just incredible to me. We have very good employment growth. We even at last have wage growth … I don't think we have ever seen that combination before. Not that I can recall," the "Mad Money" host said.

This kind of a decline simply doesn't occur unless there is an event that is keeping people indoors, and Cramer thinks it is all about the election. It is just too coincidental.

Cramer expects to see a quick reversal post-election, or that maybe investors still want to own a stock in the restaurant space that is winning. He recommended finding a restaurant worth betting on that likely had numbers compressed by the election, and buying call options that encompass the month of November.

U.S. presidential candidates Donald Trump and Hillary Clinton
Reuters
U.S. presidential candidates Donald Trump and Hillary Clinton

With the stock market driven by politics lately, Cramer wants to get a sense of how it will behave after the election, regardless of who wins.

That is why he turned to Bob Lang, the founder of ExplosiveOptions.net, technician and colleague of Cramer at RealMoney.com, to find out what the charts predict the market will be like when a new President is elected.

Based on historical post-election patterns, Lang believes that the market is likely to improve until the end of the year. But Cramer warned that a post-election rally may not have the staying power to make it through the end of the year.

"Don't be complacent, because the big boys don't like this market for a host of reasons, not just the election, and while they might come back from the sidelines after today, the rest of the indicators say beware of any November rally," Cramer said.

Clinton and Trump may not agree on much, but Jim Cramer found that they are practically on the same page when it comes to national defense.

"Look, this shouldn't be a surprise. Every election year, defense is always the one thing that the Democrats and Republicans agree on. No politician wants to be accused of being weak on defense," Cramer said.

Every four years, Cramer knows he can anticipate candidates revealing plans of beefed-up defense spending. In fact, in every election year since 1992, the S&P Aerospace & Defense Index has outperformed the broader market in the fourth quarter.

Richard Nixon speaking during his presidential campaign, 1968.
Declan Haun | Chicago History Museum | Getty Images
Richard Nixon speaking during his presidential campaign, 1968.

Another group that Clinton and Trump seem to agree on is for infrastructure. Usually in a presidential election Democrats want to invest heavily in infrastructure spending, and Republicans want to hold back to cut down the deficit.

That isn't the case with Trump and Clinton.

Trump has said he wants to invest in transportation, clean water, a modern electrical grid and telecommunications and security infrastructure.

Clinton has said that she wants to repair and expand roads and bridges, build world-class airports and modernize the airspace system, as well as public transportation, better energy infrastructure.

That means regardless of who wins, Cramer expects a major surge in infrastructure spending. He recommended Vulcan Materials and Martin Marietta Materials.

Looking back in history, politics has been rich with events that rocked both the world and the stock market. For Cramer, they all represented a buying opportunity. Some events were even the investment of a lifetime for him.

"They are reminders that when the nation faced systematic economic collapse, political insurrection, instability at the White House and military defeat at the hands of axis powers — there were opportunities to make money," Cramer said.

The secret to Cramer's sauce? At each crucial point, he figured out where the bull market was, in both stocks and bonds. The only exception was in 2008 when he pounded the table for investors to get into cash. He told them to buy it all back when the market bottomed in 2009.

Watergate is also widely regarded as one of the worst Presidential crises of the 20th century. The Dow plummeted to 773 when President Nixon resigned in August of 1974, from 989 points in June of 1973. It ultimately landed at 576 in the first seven months that President Ford took over, but then it bounced back sharply.

That was also a buying opportunity, Cramer said.

In the Lightning Round, Cramer gave his take on a few caller favorite stocks:

Ollie's Bargain Outlet: "This has been the best retailer out there ... You've got a winner!"

Kite Pharma: "You're going pure speculative. You get a big sweep and you get the House and the Senate going with Hillary, and then it's a no-go. You've got to be careful there."