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Cramer: Use the Rallies to Raise Cash

In this volatile market that’s increasingly tied to Europe’s sovereign debt crisis, Cramer continued to recommend investors raise cash. The “Mad Money” host would look for opportunities to sell, such as Wednesday’s short-covering rally that transpired midday.

Going forward, Cramer thinks the market will still be handcuffed to Europe’s ongoing debt problems. If the Italian bank can’t get funding, the Italians will be forced to nationalize the bank and Cramer thinks there could be a run on other banks. In turn, he thinks there could be more nationalizations that cause interest rates in Italy and elsewhere to spike. All of this, he said, would force Germany and France to finally take action.

“Of course, all of this could have been prevented if the Europeans had only offered a credible plan for both the sovereign debtor nations as well as the banks that own their bonds, instead of just focusing on the banks,” Cramer commented, adding that either way, he thinks the markets will survive the hard times ahead.

He thinks the markets will suffer in the short-term, though, and he would sell financials when possible. High-yielding stocks, on the other hand, will probably do just fine and gold may rebound as the euro plummets.

Call Cramer: 1-800-743-CNBC

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