Hospira, is transforming itself from a boring drug delivery and medication management company into a faster growing, higher-margin oncology powerhouse. After a rocky start, Hospira is finally starting to gain some traction. The company has met or beat earnings expectations for the past seven quarters in a row, giving it a solid track record of results, he said. Cramer also liked the fact Hospira is cutting costs and has increased operating margins. Next, Cramer said he thinks the moment’s right to start buying natural gas. After warning that the sector would be hit and hit big last Wednesday, Cramer said it’s finally time to get back into the natural gas stocks. Cramer is still a fan of Chesapeake Energy (CHK) which completed a secondary offering of 25M shares at $57.25 a share. The company will use the proceeds to increase drilling, a move that’s seen as wildly bullish for the stock, he said. Cramer also voiced his support for Chesapeake CEO Aubrey McClendon, whom he said is the most bankable CEO in America. SELL BLOCK: Cramer gave viewers a list of stocks which he said are the real losers of the new Medicare spending bill that Congress just passed Wednesday. According to Cramer, the managed care providers will be hardest hit by the new $12.5B spending package, and to “stay away from them.” The list includes: Healthspring (HS), Humana (HUM), Coventry (CVH), HealthNet (HNT), Triple-S (GTS) and United Healthcare (UNH). Cramer had high praise for Treasury Under-Secretary Bob Steel, who resigned his position to head the ailing Wachovia Bank (WB). He called Steel “one of the great behind the scenes player” and one of the integral players behind the recent JP Morgan Chase (JPM) and Bear Stearns (BSC) merger. Cramer said the turn-around of Wachovia will take time, and he’s still would not be a buyer of the bank at this time. SUDDEN DEATH: (Bullish) CLHB; SE; JNJ. (Bearish) RIO. LIGHTNING ROUND: (Bullish) AEM; ETN; BQI; FGP; NKE; MOT; CGV. (Bearish) SWC; UA; CRM; UPS; FDX; RMBS.

Fast money position recap

First Moves: Jeff likes USO, Guy likes AA, Karen likes shorting BIG, Pete likes CSCO.
Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Macke Owns (MSFT), (USO), (INTC), (WMT); Najarian Owns (AAPL), (CHK), (MAR), (NOK), (TSO), (XTO), (XLF); Najarian Owns (FNM) And (FNM) Puts; Najarian Owns (YHOO) Calls, (RIMM) Calls, (SLB) Calls, (CSCO) Calls; GE Is The Parent Company Of CNBC; NBC Universal Is The Parent Company Of CNBC; Finerman Owns (GS); Finerman’s Firm Owns (DVA), (GE), (MSFT), (NOK), (SUN), (TSO), (VLO); Finerman’s Firm And Finerman Own (C) And (C) Leaps; Finerman’s Firm Owns (PLCE) Calls, (TGT) Calls, (HUN) Calls.; Finerman’s Firm Is Short (IJR), (MDY), (SPY), (IWM); Finerman’s Firm Is Long SPX Index Puts; Finerman’s Firm Is Short (BIG).

FNM and FRE are now on the brink of a takeover by the US Government and it is not going well with the market. This is a big financial disruption to the markets and could create the washout needed but more pain could still be on the way before any relief is truly received. A bottom will be created over time and will give you enough time to catch it but in the mean time stay defensive and let the market prove it with at least a couple rally waves on strong volume before stepping in. Looking to keep shorts quick as the long weekend could give time to help alleviate the problem. Stay focused, pick plays with a high probability of success, plan the trade and trade the plan. Great luck and great trading.