Cramer: How to Trade the Coming Pullback

Stocks rallied hard on Monday, but Cramer warned the market could soon trade lower.

The "Mad Money" host thinks the market will get knocked down in the next few days, as the shorts get squeezed and the media becomes anxious for a negative story. Should the averages fall, Cramer recommended investors be ready to buy shares of companies with good underlying businesses at discount.

Cramer thinks the U.S. Justice Department should rule against AT&T's $39 billion planned purchase of Deutsche Telekom's T-Mobile USA. Should the deal go through, AT&T would become the No. 1 mobile service provider in the U.S., bumping Verizon Wireless out of the top spot. The concentration between AT&T and Verizon would make it nearly impossible for other companies to compete, Cramer argued. The Justice Department will likely see well-finance competitors in Sprint and MetroPCS , but Cramer said they're not at all on equal playing field.

The White House wants more Americans to have access to broadband. So long as AT&T provides people, especially the poor, with broadband services, Cramer thinks regulators will look the other way and approve this merger. In the end, he remains long AT&T and Verizon.

Meanwhile, western forces continue to launch air strikes on Libya in an attempt to rid Muammnar Gaddafi from power. Once Gaddafi is removed, Cramer thinks oil prices will fall. He would still buy oil and oil-related stocks on any pullback, though. The thinking that higher gas prices will hurt the consumer has somehow lost popularity, so Cramer thinks oil prices could rise again.

Radiation continues to be the chief concern in Japan, where an earthquake and tsunami damaged a nuclear power plant on March 11. The Japanese are working to cool all six of the damaged reactors at the Fukushima complex, which is 150 miles north of Tokyo. Once people are no longer worried about radiation, Cramer thinks reconstruction will begin. He puts the damage at $300 billion, especially since the government said only 10 to 15 percent of the damage was properly insured. The re-building of Japan will create demand for building and construction materials.

In this market, Cramer said there is no reason to chase.

"Let the bearish scenario play out in the media, knocking down good stocks that shouldn't be selling off and then pounce," Cramer said. "After this beautiful three-day run wait for a pullback. Believe me the bears will give you one."

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