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Jim Cramer's 'Mad Money' Recap: Buy, Buy, Buy on the Selloff

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NEW YORK (TheStreet) -- Sometimes selloffs can be bad, but most of the time they're opportunities to buy, buy, buy, Jim Cramer told his Mad Money viewers Tuesday. When the market gives you an opportunity, you should take it.

Cramer used this logic when considering buying United Technologies (UTX) for his charitable trust, Action Alerts PLUS, today. His thesis was that HVAC sales should be strong as the U.S. economy continues to heat up, something that was confirmed when HD Supply (HDS) reported earlier today. So when United Technology shares fell, he was ready to pounce.

Cramer admitted that perhaps his thesis is wrong, or he wasn't able to time the exact bottom in UTX, but that's why he invests for the longer term and buys positions in stages as stocks fall. He was too early recommending General Motors (GM) another Action Alerts PLUS holding, for example, and shares of Rite-Aid (RAD) still haven't settled since last week's recommendation. But that doesn't matter, Cramer said --  his theses for both these names remain intact.

When stores put merchandise on sale at the mall, people flock to it, Cramer noted, so when the markets put your favorite stocks on sale, investors need to be ready to pounce.

Off the Charts

In the "Off The Charts" segment, Cramer went head to head with colleague Bob Lang over the chart of Allstate (ALL), a stock that's quietly been moving higher and is now just off its 52-week high.

Looking at a daily chart of Allstate, Lang noticed the stock trading in a bullish channel, with higher highs and higher lows. The stock's volume has been confirming the move higher, and the Williams Oscillator, a measure of momentum, has been "embedded" in a long-term overbought condition for several weeks.

Allstate's weekly chart tells a similar bullish story, with the stock seeing a long march higher for the past two years, with both the relative strength indicator, RSI, and MACD momentum indicator both confirming the bullish trend.

On the fundamental side, Cramer said Allstate is still very inexpensive, trading at just 10 times earnings with an 8.5% growth rate. The company has been able to successfully combat rising costs with rising premiums and Allstate sports a solid 1.9% dividend as well.

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