Jim Cramer often advocates themes in the market. These are big picture ideas that he believes will lift the fortunes of companies and by proxy their stocks.
"The concept is that big themes work for any occasion," Cramer explained. That is, when the market goes higher these stocks should be among the best performers. And when the market turns lower, these are the kinds of stocks that are most likely to attract new money first and then bounce.
"These are big theses that I've talked about on Mad Money through-out the year," said Cramer, and they continue to work. Five of Cramer's favorites follow:
Cramer is a big believer in the renaissance underway in the housing market and has profiled a slew of housing plays since January. However, Cramer is a shrewd investor and always scours the market looking for new ways to profit from the theme.
On Tuesday, Cramer found something.
"It's called William Lyon, it's a homebuilder IPO and it comes Wednesday night," he said. "The last few homebuilder IPOs have been tremendous wins. I think this one will be too, particularly because it's a California and Arizona play, the two hottest markets in the country."
Cramer said the IPO should price around $25, but would pay up to $27.
Cramer is also an advocate of the new energy discoveries made in the United States and the potential for these discoveries to make North America energy independent by 2020.
For most of 2013, Cramer has recommended playing the theme with EOG, as a bet that the company not only has fantastic energy yielding fields but that other real estate holdings may also contain gigantic reserves.
"And I 've got a new one too," Cramer added. "I'd look at Ensco as a bet the Gulf of Mexico is again heating up." Also he said, "just today Petrobras, the gigantic Brazilian national oil company raised a staggering $11 billion to increase its drilling budget. Fabulous news for Ensco."