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Jim Cramer was enthusiastic about the week’s rally on Friday’s “Mad Money” but he was quick to caution that the rally won’t last forever. He says that the fate of the US stock markets is too closely correlated to the fate of Europe and is too volatile to really be considered bullish in any traditional way.

Cramer continued by saying that the market and even a company’s stock performance is not fluctuating due to company specific fundamentals but rather are pushed around by ETFs and futures traders. His advice is to focus on the market’s volatility and leveraging that for profit.

Here are the stocks Cramer discussed during his October 7th show:

Energy Transfer Partners LP (NYSE:ETP): ETP has been incredibly depressed lately, prompting many investors and analysts to recommend a buy. Cramer thinks that the stock is a safe bet and the yield is good, but, if he had to pick, he would rather stay away from companies dealing in propane. ETP has a market cap of $8.55 billion and trades at 25.52 times earnings.

Kinder Morgan Energy Partners (NYSE:KMP): Cramer prefers the primarily gas-centered operations of KMP. Sure they may be going through acquisition, but Cramer is confident in the company, far more so than ETP. KMP has a market cap of $23.06 billion and is trading at 119.78 times its earnings.

Alpha Natural Resources (NYSE:ANR): Cramer is extremely bullish about ANR. He feels the stock is grossly underpriced. It has a market cap of $4.16 billion and a price to earnings ratio of 45.03. It is currently trading at $18.39, down from its 52-week high of $68.05 a share. Glenn Russell Dubin of Highbridge Capital Management owns 6,728,861 shares.

Tesla Motors (NASDAQ:TSLA): Cramer says that Tesla, the company that makes the Volt electric car, could be the next big thing, that is if the electric car takes off. Right now though, Cramer is more pessimistic. He says that they are just too risky right now. TSLA has a market cap of $2.81 billion and recently traded $26.99, which is close to median of its 52-week range of $20 to $36.42 a share.

Westar Energy (NYSE:WR): Cramer likes WR, for completely different reasons than the other stocks he mentioned on the show. He notes that WR is the antithesis of the market volatility strategy he detailed. His reasoning is its 4.85% dividend yield. WR has a market cap of $3.06 billion and is currently trading 15.47 times its earnings.

Public Service Enterprises (NYSE:PEG): Cramer is a customer of PEG. He says that he sends them a check each month and he thinks it is a strong all around investment. It has a market cap of $16.35 billion and is trading at 10.12 times its earnings. Jim Simons, Renaissance Technologies, owns 835,000 shares.

FirstEnergy Corp. (NYSE:FE): FE is another stock Cramer is bullish about. He is a customer of FE as well. FE has an $18.52 billion market cap and a price to earnings ratio of 24.96. It is currently trading at $44.29, which is near the top of its 52-week range. Jean-Marie Eveillard, First Eagle Investment Management owns 11,296,709 shares.

Polypore International, Inc. (NYSE:PPO): Cramer thinks PPO, the membrane manufacturing company, is a great investment. The stock is down and many investors and analysts are worried about the membrane business, but Cramer feels that, at a minimum, the company would be worth as much or more than it is now because it has several divisions that could be spun off. PPO has a $2.58 billion market cap and is trading at 30.45 times its earnings.

Citigroup (NYSE:C): Cramer refuses to recommend any financials, at least until the situation over European debt is resolved. Cramer sees financials tied too closely to Europe to be worth the risk right now. C has a market cap of $71.87 billion and a PE ratio of 7.49. Bill Ackman had nearly $1 billion in C at the end of the second quarter.

PerkinElmer Inc (NYSE:PKI): Cramer is passing on PKI. He just is not interested, especially after it fell so sharply Friday, hitting a 52-week low of $17.48 a share. It has a market cap of $2.03 billion and a PE ratio of 16.96.

ConocoPhillips (NYSE:COP): COP may be low right now but, with its 4.1% dividend yield, it is a stock that practically pays investors to wait. It also has plans to sell billions of dollars in assets as well as buying back $21 billion in stock. COP has a $90.42 billion market cap and is trading at 8.08 times its earnings.

Ulta Salon, Cosmetics and Fragrance (NASDAQ:ULTA): Cramer says that ULTA is one of the largest beauty retailer and has been consistent in delivering strong numbers. It has a strong concept and tends to generate momentum. While investors need to keep in mind that ULTA is a speculative stock, right now it is trading low after a long rally. Cramer recommends buying into the weakness. ULTA has a $4.02 billion market cap and a PE ratio of 44.67.

Source: Jim Cramer's 12 Latest Stock Picks