Cramer: The Only Stocks That Work Right Now

Congress Monday afternoon voted down the proposed Wall Street bailout plan, and the market reacted by dropping 777 points. As apocalyptic as that may seem, Cramer was still able to eek out a trading strategy for investors willing to stay in the game.

The plummeting Dow means that there’s great value to be found – but only under certain conditions. Only companies that don’t need to borrow money to do business, and who make a product that people will buy no matter how bad the economy, can be owned right now.

If a company needs cash, avoid it. If the product’s even slightly consumer discretionary, stay away. Even then, if you’ve found a stock that qualifies, Cramer recommended waiting for a decline of between 5% to 8%. This is where the strongest stocks of the strongest companies tend to bottom, he said.

Tomorrow should bring another bad day in the market, and that could give investors a chance to put their money to work – the very cash Cramer’s recently been urging them to raise. But only if the stock meets the aforementioned qualifications.

Otherwise, sit on your hands, Cramer said.

He urged viewers not to pull their money from the market, even at these levels. Those who stay in the game will make it through. They may lose money, but they’ll survive. The key is to be smart about the moves they make in the meantime.

“Today’s 777-point drop was just the beginning,” Cramer said. “Now is not the time to put your money at risk. It’s time to protect your nest egg.”

Because the bailout plan didn’t pass, “the Great Depression II is back on the table,” he said.

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