Cramer's 'Mad Money' Recap: Goldman's Head Fake (Final)

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NEW YORK (TheStreet) - "Sometimes things go exactly according to plan," Jim Cramer told the viewers of his "Mad Money" TV show Tuesday.

Cramer predicted on Monday that the market would take a breather and it did. He predicted there would be a slow decline and there was. And he said the Nasdaq was beginning a multi-year rally based on the mobile Internet, and the index did head higher.

Another thing that's going according to Cramer's predictions is housing. Cramer called the bottom in the housing market on June 30, and today the first survey came out showing a slight rise in home prices, the first in almost two years.

This came on the heels of strong earnings from cabinet and home products maker Masco (MAS Quote), along with Stanley Toolworks (SWK Quote) and Black & Decker (BDK Quote) last week.

"Whether you're buying, or selling, a home, you need to fix it up," said Cramer. That's why he was especially concerned by Monday's downgrade of Lowe's (LOW Quote) by Goldman Sachs. "Investors who sold Lowe's based on the Goldman headline were wrong," he said.

Cramer explained that research reports by the big firms are meant for institutional investors, and not the "homegamer." He said while Goldman removed Lowe's from its "Conviction Buy List," the firm actually had good things to say about the company, and the sector. So why the downgrade?

Cramer said that Goldman cited "relative valuation" for removing Lowe's from its esteemed list, meaning only that the company's stock have gotten too pricey relative to where it first recommended it as well as to others in its sector. So why Lowe's may not be right for Goldman, Cramer explained it's still right for average investors who don't play the "relative valuation" game.

Cramer said his bottom line is to not always go with the headlines. Wall Street research is meant for Wall Street, he said, and is not always right for your portfolio. "If you think housing's headed higher, stick with Lowe's," he said.