Cramer's 'Mad Money' Recap: New Playbook (Final)

Parsing the Banking Sector

In the "Off The Charts" segment, Cramer went head to head with colleague Tim Collins over the health of the banking sector, picking out the good, the bad and the ugly stocks of the group.

On the good side, Collins liked Cullen Frost Bankers (CFR), a stock that's traded sideways only to recently break through its resistance levels. Collins said the next stop for Cullen Frost could be in the mid-$60. Collins was also bullish on JPMorgan Chase (JPM), an Action Alerts PLUS holding. Collins identified a "W" formation in this chart, noting that today's bullish news sent shares through all resistance levels.

In the bad camp were the European banks, as exemplified by the MSCI European Financial ETF (EUFN). Collins said these stocks are meeting stiff resistance at current levels and investors are using any strength to get out of their positions.

Finally, the ugly stock of the banking group was Royal Bank of Scotland (RBS), a stock forming the dreaded rounded-top pattern, signaling that there's a lot more pain ahead, as this stock could give back all of its gains for the year.

Cramer said we're in a stock picker's market and the financials are the perfect example.

Lightning Round

Cramer was bullish on Intel (INTC), Plains All American Pipeline (PAA) and Monster Beverage (MNST).

Cramer was bearish on Telefonica (TEF), Netflix (NFLX), Inergy LP (NRGY) and Diamond Foods (DMND).

Closing Comments

In his "No Huddle Offense" segment, Cramer told investors to "ignore the noise" and look for the root causes of the market's many bull markets. He said that just because Apple is roaring, it doesn't mean that the rest of the tech sector can't also prosper.

He said that rising oil prices aren't enough to kill the rising retail sector. And a slowdown in China isn't enough to slow down the recovery in Goldman Sachs (GS).

Cramer said headlines touting that the new Walt Disney (DIS) movie, "John Carter" will cause disappointments for shareholders are simply noise. In reality, he said Disney makes its money from ESPN, ABC and theme parks, not from just a single movie.

"Things are better than we think," said Cramer, which is why stocks continue to power higher.

--Written by Scott Rutt in Washington, D.C.

To contact the writer of this article, click here: Scott Rutt.

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At the time of publication, Cramer was long Apple, JPMorgan Chase.

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