As the market surged to new highs on Wednesday, Jim Cramer broke down what a Donald Trump stock is, and what it's not.
"The industries that the President-elect favors, and that's most of them, are in a fabulous house of pleasure, while the ones that have earned his wrath could be in for a world of potential pain," the "Mad Money" host said.
The only problem is that like Donald Trump, the market tends to fluctuate, so Cramer warned that the list could change. He broke down stocks into three categories: Ones Trump has blessed either by his word or by deed; agnostic stocks where he has no impact beyond the economy; and stocks on his bad side that are now in purgatory.
On the good list were the banks, metals and domestic companies that depend on the strength of the economy.
Trump has made it his intention to rescue the banks from a stiff regulatory atmosphere that he believes cuts back on lending, and makes it more difficult for the U.S. to grow. He wants to get the government out of the way so the banks can lend more money, Cramer said.
"Bank of America … This thing acts like it's the first national bank of Trump," Cramer said.
The next group were metals and natural resource stocks that represent old-line manufacturing, and anything to do with fossil fuels. Cramer recommended US Steel, AK Steel, Nucor and Freeport-McMoRan with more room to run, along with the rails that support commodities.
"Trump is a drill baby drill kind of guy," Cramer said.
Companies that do well with lower taxes, deregulation, faster growth and the ability to repatriate earnings overseas were next on Cramer's list. United Technologies and Boeing can now be bought, he said, along with the airlines.
The only tech stocks that made Cramer's list were Western Digital and Micron. Domestic companies that depend on the strength of the economy will also do well, hence why restaurants and retailers have been so strong.
The last on the list were the companies that need help from the government but won't play ball with Trump, like the drug stocks. Cramer feared that Trump may single them out to bring down drug prices and make an example out of a company like Valeant.
A few on the hybrid list were Caterpillar, which could benefit from U.S. activity, but lose out of Trump is tough on China.
Telecoms, unfortunately, did not make the list. The only way they would is if there is more deregulation, Cramer said.
"With the market at all-time highs, but only some stocks taking you there, it's better to make a good deal than face the wheel without a Trump stock to your name," Cramer said.