Cramer's 'Mad Money' Recap: Taking Stock of the Rally

Shares of US Airways will be trading in a range until the deal is approved, said Cramer, but if it follows the pattern of other acquisitions that stagnation will be quickly replaced by a sharp move to the upside in the following years.

Lightning Round

In the Lightning Round, Cramer was bullish on MGIC Investment (MTG), Radian Group (RDN), Hospitality Properties Trust (HPT) and Vale (VALE).

Cramer was bearish on BMC Software (BMC) and HJ Heinz (HNZ).

Executive Decision: David Jaffe

In the "Executive Decision" segment, Cramer sat down with David Jaffe, president and CEO of Ascena Retail Group (ASNA), a stock that popped 14.3% Tuesday on the company's three-cent-a-share earnings beat and 2% rise in same-store sales. This came after the company's shares dropped after lowering its full-year guidance on Jan. 10.

Jaffe said with Ascena's recent acquisition of Charming Shoppes, it has "had a lot going on" over the past few months. He said that unlike other acquisitions, which only included a single brand, Charming had three brands plus a lot of extras. Ascena continues to focus on both the Lane Bryant and Katherine's brands, Jaffe noted, and has already shuttered Fashion Bug and continues to work on integrating the company's shared services. Ascena has a new president for Lane Bryant, Jaffe added, along with several other new key executives.

Jaffe said he feels good about the spring season, which includes an early Easter. He said time will tell how the new spring merchandise will be received but added "so far so good."

When asked about Ascena's foray into boys clothing, Jaffe said that of the stores where it has tested a dual-gender concept, sales for the girls' merchandise have not declined, which is translating into an increase for overall store sales.

Cramer said that after stumbling last quarter, he now feels Ascena is back to delivering positive results for its shareholders.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer addressed all those who are worried about what happens when the Federal Reserve stops its stimulus efforts. He said these "fear mongers" are doing everything they can to scare investors out of the markets and are, in fact, only hurting individual investors with their "cautious" advice.

Cramer said investors need to give Fed Chairman Ben Bernanke some credit because he most certainly has an orderly exit plan for the Fed's stimulus activities. Furthermore, if investor had listened to the bears and stayed out of the markets out of fear, they would have missed this miraculous rally over the past few years.

Maybe the rich can afford to sit on the sidelines, Cramer concluded, but the individual investor needs to be in this rally and making as much money as he or she can and as fast as possible.

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

To email Scott about this article, click here: Scott Rutt

Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

At the time of publication, Cramer's Action Alerts PLUS had a position in FB and VALE.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC Universal or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."

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