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) -- "Today we got a glimpse of what could happen if the European mess ever gets resolved," Jim Cramer told

"Mad Money"

viewers Tuesday, which ended with the major indices up for the day. "We saw how the market could easily rally to all-time highs on even a whiff of worldwide growth."

The focus is usually on what could go wrong in Europe, but today the market was focused on Greece's "vote for pain," which Cramer said would reward the country with easier credit terms. Greece sent a message to other struggling European countries that "if you do what's right for the European Union, the Union will do right for you," said Cramer.

The optimism is beyond Europe, too, with housing inflation in China "crashing down," and hopes the

Federal Reserve

"might have something up its sleeve to improve the U.S. economy" Wednesday, he said.

Cramer pointed to several specific examples of the effects of hope, or "hopium," as he called it."



reported an "okay number" and cut its forecast but rallied $2.50 today, and despite a number of downgrades in the industrials, stocks such as



were also higher.

In addition, Cramer said, a restoration of global growth can give us "what looks to be a bottom in the price of crude oil," sending everything from independent natural gas companies to the big oil service companies higher.

In aerospace,







United Technologies


were all up Tuesday, and auto makers

General Motors



Ford Motor


also rose on "hope that Europe favors growth," said Cramer.

Cramer had a word of caution for viewers, saying that without more evidence that Europe will support growth, it's likely that stock prices have risen higher than they deserve to. "Cold, hard facts don't support this run in stocks," he said, "but cold, hard facts dissolve in the face of a future that looks better."

In the Sweet Spot

Cramer encouraged viewers to retain focus on the European mess while also seeking out opportunities at home in the U.S., including speculative ideas such as

BioMarin Pharmaceuticals



, which he said was in the "sweet spot of the orphan drug business." Cramer has liked the stock since October 2010, and it's seen a 70% gain since then.

The government gives orphan drug producers special incentives, such as enhanced patent protection and marketing rights. Because BioMarin's enzyme replacement therapies are the only products on the market for the rare genetic diseases that they treat, Cramer said, the company can charge "a great deal of money."

The company has three drugs on the U.S. market and a fourth in Europe, but Cramer said the reason to own the stock is for its pipeline, which includes three major catalysts coming in the second half of the year.

Cramer welcomed BioMarin CEO Jean-Jacques Bienaime to "Mad Money," calling the company one of the "single most exciting biotech companies I've ever had on the show." Bienaime described BioMarin's business model as the "opposite of bit pharma," in a sense, because it seeks a "very significant efficacy or safety improvement in a very small patient population."

He agreed with Cramer that because BioMarin's therapies are so effective, otherwise "stingy" health companies are willing to pay up for them. At the same time, said Bienaime, BioMarin's leading drug treats only 1,200 patients worldwide, "so it's never going to have a significant impact" on health companies' budgets.

Because BioMarin's patient populations are so desperate for treatment, its development times are much shorter than the industry average. "Because patient population is so limited, regulatory authorities cannot ask us for a very large clinical trial size," Bienaime explained.

Cramer told Bienaime that he's been "in awe" of BioMarin for a long time, calling it the son of


( GENZ), which Cramer said was "one of the biggest hits I have ever seen." BioMarin doesn't "need a takeover to make a lot of money," he said, "but I can't believe that one of these major pharmaceutical companies is going to let this company stay independent forever."

Off the Charts

In his "Off the Charts segment, Cramer focused in on



, which is up 160% since its generational lows in March 2009 but is down 10% in the last six weeks alone. Its daily chart shows some "serious red flags," said Cramer, with the stock making a series of lower lows and lower highs since its early May peak at $113, which is a technical signal to sell. His colleague Dan Fitzpatrick, however, has a different take.

To Fitzpatrick, the weakness in Nike's stock looks more like an imminently buyable pullback. That's because for the past two days the stock has been holding above two critical support levels. One is $100, which is a key psychological level of support, and the other is the 200-day moving average. The 200-day is a long-term measure of a chart's trajectory, Cramer explained. Above the line, a stock is a buy; below, a stock is a sell.

Cramer said the technical story in Nike gets even better when you take into account the stock's trading volume. On June 13 and June 14, two big down days for the stock, Nike's volume increased to nearly twice the daily average. Since then volume is almost back to normal, and Nike is holding firm. To Fitzpatrick, this is a sign that last week's selloff was a "selling climax," said Cramer, and that everyone who wanted out of the stock already got out.

Even better, the stock's weekly chart going back to 2009 suggests that Nike's recent breakdown is nothing more than a pullback to the 200-day moving average, which is also the 40-week moving average. Cramer pointed out that over the past three years, whenever Nike has tested this critical level the stock has held, making it a "terrific buying opportunity."

So from a technical perspective, Fitzpatrick thinks Nike is a relatively safe buy as long as it stays above $100. If it falls below that level, Fitzpatrick says all bets are off.

In terms of the fundamentals, Cramer called them "pretty darn good," which he said makes Nike a bargain on any pullback -- including below $100. Cramer thinks Nike's quarterly report, scheduled for next week, will be strong, but he said key to the stock is the Summer Olympics. Nike has historically outperformed the

S&P 500

in Summer Olympics years, and Cramer expects this one to be no different.

"When the Olympics come, the stock is going to take off and leave the S&P in the dust," he said. "I think Nike's a buy here."

Lightning Round

Here's what Cramer had to say about callers' stocks during the "Lightning Round":



: "I think that business is dying on the vine. I want out."

American Capital Agency


: "It's OK, but



at $17 is a better buy than AGNC at $32."

Tractor Supply


: The short-sellers don't like this stock, Cramer said. "I think the business model is good. I know the stock's come down a lot, but it's a fine growth stock."



: Cramer prefers EMC to



. "A little less wild, a little less crazy."

Quest Diagnostics


: "It is a fine company, but I'm not sure how it dovetails with what may happen with" the Supreme Court.



: "It's too low to sell," said Cramer, but it's also not his favorite bank.

Acorda's 'Internal Catalyst'

Again Cramer turned to biotech for speculative ideas, saying that in this volatile environment, it's wise to seek out "small, relatively undiscovered companies that have their own internal catalyst." Biotech, he said, doesn't have "have to fret about the same big macro worries" that drive the rest of the market.

He welcomed

Acorda Therapeutics


CEO Ron Cohen to discuss its multiple schlerosis drug Ampyra, which could have indications for other diseases including cerebral palsy and strokes. Cohen said Acorda has projected $255 million to $275 million in sales this year and notes that there are many people with MS who haven't tried the drug yet.

Ampyra, which improves the ability to walk in some MS patients, "can be a really terrific, terrific thing," said Cohen. "Our challenge going forward is to make sure that as many people with MS who have a walking problem know about the drug and know that they should be asking their doctors to try it."

As for Goldman Sachs' sell rating on Acorda, Cohen said that's just one analyst opinion, and it's not shared by many of the other analysts who cover the company.

Cohen said Acorda is very excited about Ampyra's potential to treat other ailments and cited a successful trial in rats with chronic stroke, in which the drug improved limb function.

Cramer encouraged viewers to check out Acorda, citing its profitability and the fact that it "has nothing to do with the economy." He said that today the economy "seemed OK, but we know better."

"When the economy rears its ugly head again," said Cramer, "think about Acorda."

Retail Tales

J.C. Penney


has announced the departure of Michael Francis, part of CEO Ron Johnson's "dream team" intent on reinventing the retail chain. Now Johnson, who Cramer said "is way over his head" already, will take over merchandising in addition to the overall running of the stores. "Frankly," said Cramer, J.C. Penney "seems to have lost its way."

Perhaps because J.C. Penney "has no raison d'etre" or because longtime customers don't understand what's happening, the result is "billions of sales up for grabs," said Cramer. And those sales are going to JCP's competitors:







Wal-Mart Stores


and even




In another retail story, Cramer said that ever since



"declared war" on

Express Scripts


, it's been downhill for the drugstore chain -- and customers are fleeing to




Tuesday, Walgreen announced a 45% stake in U.K. chain Alliance Boots. "How does spending a fortune to buy a piece of this global drugstore chain help reverse the defections to CVS?" Cramer wondered.

Cramer acknowledged that retail is a tough business, but he said the directions that J.C. Penney and Walgreen are taking recently don't make a lot of sense to him. "These plans are terrific reasons to buy their competitors," he said.

--Written by Rebecca Corvino in New York.

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To watch replays of Cramer's video segments, visit the Mad Money page on CNBC


At the time of publication, Cramer's Action Alerts PLUS had positions in BA and CVS.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of 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, 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 is related to the specific opinions expressed by him on "Mad Money."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.