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NEW YORK (TheStreet) -- Sometimes it takes just two stocks to kick off a market rally, Jim Cramer told his "Mad Money" TV show viewers Tuesday.
Cramer said after yesterday's news and subsequent selloff, the markets were looking to get their footing early this morning, looking for safety and stability. Fortunately, they didn't have to look far because J&J posted in-line earnings while Coke offered up better-than-expected numbers. That was all the markets need to kick off a rally in all of the food and drug names, said Cramer, and it was enough to send shares of Coke soaring by 5.5%.
On days like today, Cramer said, investors won't let the facts get in the way of a good story. All they needed was to read the positive headlines to give them the excuse they needed to start buying.But the buying didn't stop with just the food and drugs stocks, he said. The housing stocks also joined in the rally, with Sherwin-Williams (SHW), Owens Corning (OC) and Whirlpool (WHR) just a few of the notable moves to the upside in that sector. Indeed, all is well in the markets, Cramer concluded -- at least until tomorrow.
Off the ChartsIn the "Off The Charts" segment, Cramer went head to head with colleague Carly Garner to answer the question, "What the heck is happening with gold?" Gold has been in slow decline since last October, Cramer noted, but last week the precious metal went into freefall after a Goldman Sachs (GS) analyst downgraded it with a price target of $1,450 an ounce. Immediately after that downgrade, the price of gold plummeted, noted Garner, who now sees the $1,450 level as a ceiling, not a floor, for gold. She noted that the RSI momentum indicator is now below 30, indicating that gold is significantly oversold. Garner felt that $1,305 will be the new floor for gold. If that level holds, it could return to $1,450 in fairly short order.
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