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NEW YORK (TheStreet) -- The market is just marking time, Jim Cramer told "Mad Money" viewers Tuesday. He said the markets are digesting their gains and giving up just enough to rattle the traders, but not enough to shake out the true believers.
Cramer explained that pullbacks and reversals are a natural part of the stock market, as companies aren't rockets and don't take off in a straight line. This is great news for patient investors, he noted, as pullbacks often give investors great prices to buy in. It may seem counterintuitive, even against human nature, to buy into weakness when everyone else is selling, but that's exactly the right time to buy.
Take Apple (AAPL), one of the market leaders and a stock Cramer owns for his charitable trust, Action Alerts PLUS. Cramer said that it wouldn't surprise him to see Apple retreat to as low as $560 a share. While that may seem like a huge move to novice investors, in percentage terms it's the same as a $65 stock pulling back to $55 a share, Cramer said.The bears have plenty of reasons to hate this market, said Cramer, including the fact that the markets have had a big run, trading volumes remain low, the VIX volatility index remains anemic and gold has begun to rally. But the fact also remains that the worst-case scenarios in both Greece and Spain haven't materialized, meaning the end of the world just might not be now after all.
Executive DecisionIn the "Executive Decision" segment, Cramer spoke with John Richels, president and CEO of Devon Energy (DVN), an oil and natural gas producer whose shares have fallen 3% so far this year. Devon Energy is also an Action Alerts PLUS holding. Richels admitted that Devon has seen some challenges this year, starting with an unseasonably warm winter that caused natural gas prices to plummet ever further followed by weakness in Canadian oil and natural gas liquids prices. He noted that oil prices are cyclical in nature and most of the challenges facing Devon are temporary. The company continues to focus on high-return projects, he said, and building its asset base.
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