Cramer's show starter: Incredible decline today – same chatter that Cramer heard in 1987 he heard on Friday. This is not 1987. Market was at 27x earnings then. Market is not ridiculously overvalued now.

Disclaimer: This is my interpretation of Cramer’s comments, the show goes by quickly so I try and catch as many key words as possible for each pick. Accuracy is NOT guaranteed but is however strived for.

This sell off is as artificial as Oct 8, 1998 sell off when Cramer lost 90 million in a day. Think the fed will blink again – market is black and white. Season for drugs, cyclicals have ended, tech epic come and gone, banks – may have seen opening day on the bank season. You gotta stay in the game.

Q: When is the right time to start putting cash back to work? A: Smokestacks and chemicals haven’t bottomed yet, sea change begun, Citigroup big buyback means there are safe places to go now – like banks, pharmas, health care cost containment, think the oils are oversold (don’t think oil is going back to 35), arrogant to try and call a bottom.

Been a naysayer on the pharmaceuticals for 3 years until now – these are steel tested stocks. Pharma and tobacco will work until the Fed blinks, when the Fed blinks we’re going to have to think again

The Stocks:

AAPL - APPLE COMPUTER - Wrong - Didn't sell 6 million iPods, down 15.7% since recommending on Monday - Can't value AAPL on momentum now - have to use valuation metrics - think it has to come down a little - not going back to 40's until we see another quarter
XEC - CIMAREX ENERGY CO - Wrong - Don't believe overstayed welcome in oil
VLO - VALERO ENERGY CP - Wrong - thought bottom at 73, nope - kept going lower
SYNM - SYNTROLEUM CORP - Told to avoid on Monday - down 23% since
IVAN - IVANHOE ENERGY IN - Told to avoid and its down big
SGP - SCHERING PLOUGH C - Said time to buy SGP and its up 3.8% since
DE - DEERE CO - Now getting interested in it after diliking earlier in week - BULL
AAPL - APPLE COMPUTER - 32-38 for a while, buy at 32, sell at 38
CMC - COMMERCIAL METALS - BEAR - get out of their
HET - HARRAH'S ENTERTAI - Like the ceo and Harrah's but not the right season
MDT - MEDTRONIC INC - BULL - works big time in this sell off
INTC - INTEL CP - Owns it - own it through thick and thin
COP - CONOCOPHILLIPS - Most levered to oil company - in free fall - wanna buy it BULL!!
CHTR - CHARTER COMMUNICA - The worst investment he's ever made without a doubt - thinks it goes below a dollar
CTL - CENTURYTEL INC - BULL - nice defensive name
ASD - AMER STANDARD CO - too economically sensitive here - likes it below 40
MEL - MELLON FINCL CORP - Hated for maybe 7 years switching right now cause he likes the financials BULL
SBUX - STARBUCKS CP - no thank you, ring the register
SYNA - SYNAPTICS INC - Touchpads for computers - too tech for me
HE - HAWAIIAN ELEC IND - BULL - excellent here
WBSN - WEBSENSE INC - No no no, too high risk - think goes lower next week
VLO - VALERO ENERGY CP - got wrong earlier in the week - BULL, buy it again - still think its right here
TEVA - TEVA PHARM INDS A - BULL - that's for me - like that little bit of generic
IIVI - IIVI INC - not the kind of companies to own in this situation - not defensive enough here
HIG - HARTFORD FIN SVC - BULL - this stage of econmoc cycle, you want to own the insurance co's
CD - CENDANT CORP - owns it - think stock is ok here
CPN - CALPINE CP - DIVE DIVE DIVE - pig and submarine crashing
BNI - BURLINGTN N SANTE - Coal - ring the register, still not too late - another 4-5 % maybe down for that stock in his opinion
MEDI - MEDIMMUNE INC - got a feeling the stock is going to be right again
DNA - GENENTECH INC - mentioned as "favorite biotech"
AMGN - AMGEN - mentioned as "favorite biotech"
AFL - A F L A C INC - BULL - insurer that should work here in the cycle
AEOS - AMER EAGLE OUTFIT - BULL - buy teenage apparel is still working here AEOS is for him
EP - EL PASO CORPORATI - BULL
HPQ - HEWLETT PACKARD C - thinks the stock sees 18 before 24 - at 20.83 now
UNH - UNITEDHEALTH GROU - BULL - own it - excellent qtr, big buyback - think it goes to 100
NDC - NDCHEALTH CORP - healthcare info solutions - like the stock - BULL
SAP - SAP AKTIENGESELL - BEAR - no don't like SEBL, compuware ugh
NAPS - NAPSTER INC - too speculative - ring the register
LU - LUCENT TECH INC - house of pain - still sticking with it - owns it
JNJ - JOHNSON AND JOHNS - BULL - that’s a winner
SBC - SBC COMMUNICATION - right here, right now - he's going + on SBC because that stock is right in this fed induced slow down
SJT - SAN JUAN BASIN RO - dividend is safe, stick with it BULL
ECA - ENCANA CORP - think its fine - owns it
AOC - AON CORP - okay, prefer MMC
mortgage calculator