Cramer took yesterday’s positive new housing starts number to indicate that demand is returning to the market as inventory levels decline and homebuilders feel confident that they can get to work again. While Cramer warned against buying homebuilders just yet – he did recommend buying banks with significant mortgage exposure like Wells Fargo (WFC: 30.20 0.00%), JP Morgan (JPM: 38.14 0.00%) and Bank of America (BAC: 7.97 0.00%). 

Unfortunately, financial stocks took a beating today with Wells Fargo dropping over 5%, Bank of America fell over 3% and JP Morgan Chase falling more than 2%. 

Bullish comments about Sociedad Quimica (SQM: 59.30 0.00%) and Terra Nitrogen (TNH: 200.00 0.00%) also failed to lift their stock prices today with SQM falling over 4% and SQM dropping more than 3%. 

In a contrarian play by the markets today, all of Cramer’s bearish stock picks on yesterday’s Mad Money show ended up posting gains for the day. Domtar Corporation (UFS: 91.33 0.00%) gained nearly 2% despite Cramer saying, “I’m not buying it. I think it’s going right back down… sell, sell, sell!” Bearish comments about Taiwan Semiconductor (TSM: 13.99 0.00%), Duke Energy (DUK: 21.27 0.00%) and Gamestop (GME: 23.41 0.00%) also failed to influence the markets as all three posted solid gains. 

However, the “Cramer Effect” helped lift the semiconductor sector today after Cramer recommended Cadence Systems (CDNS: 11.62 0.00%), Broadcom (BRCM: 37.14 0.00%), and Brocade Communications (BRCD: 5.93 0.00%).