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) -- Rumor has it the stock market is now being driven completely by rumors. At least that's what Jim Cramer heard on the Street Tuesday, he told

"Mad Money"

viewers. Whether it's a Spanish bailout, European deposit insurance or air strikes against Iran, if there's a rumor about it, the markets are likely trading on it.

But Cramer called "rumor investing" totally useless, adding that it's no way for anyone to invest their money. Why? Because the truth is that no one really knows anything until it actually happens and even when it does, there's still a good chance those events won't be directly affecting the stocks in your portfolio.

That's why Cramer continues to recommend sticking with stocks that don't have anything to do with Europe, stocks like American food companies, a la

B&G Foods

(BGS) - Get Report


Dr Pepper Snapple


, or domestic tobacco players like


(MO) - Get Report


Cramer also recommended domestic housing stocks including

Lumber Liquidators

(LL) - Get Report

and paint-maker


(SHW) - Get Report

as safe bets with no European exposure. There is also the biotech sector, names like

Arena Pharmaceuticals

(ARNA) - Get Report


Seattle Genetics

(SGEN) - Get Report

, both of which will continue the fight against life-threatening diseases no matter what the economies in Europe are up to.

Not everything is part of the European debacle, Cramer reminded viewers. "The sooner you realize that, the more money you'll make."

Hidden in Plain Sight

Europe's debt woes may make it harder to find strong stocks, Cramer told viewers, but that's no excuse for missing them. Case in point:

Dollar General

(DG) - Get Report


Dunkin Brands

(DNKN) - Get Report

, two stocks that have risen 22% and 35% respectively this year, all in plain sight of savvy investors.

Cramer said there have been many times in the stock market's history where gains were only possible in a handful of sectors. There were times when only health care was making money, others when technology was the only place to be. So it should come as no surprise that in today's market, where Europe has taken the financials, industrials, energy and technology stocks off the table, stocks like Dunkin and Dollar General would be good places to invest.

Both of these companies are regional to national expansion stories, said Cramer. Both have long runways of growth ahead of them. Both have successfully made secondary offerings of stock, right under everyone's noses.

Cramer said Dollar General has done four secondaries recently, while Dunkin has done two in the past year. All of these deals were highly visible, he noted, and easily accessible to the individual investor.

Deals like these are exactly the ones investors need to be paying attention to, said Cramer, and the problems in Europe is no excuse for missing them.

Off the Charts

In the "Off The Charts" segment, Cramer took a step back to see the bigger picture of the markets and take a technical look with the help of his colleague Carolyn Boroden.

Using a weekly chart of the

Standard & Poor's 500

index, Boroden's research called a bottom in the markets between 1,259 and 1,269, just 4% below where the markets closed today. Using "measured move" analysis, which compares the relative sizes of market moves to the upside and downside, Boroden noted that recently the S&P has been moving in $155 increments, which puts the market's bottom precisely in her target range.

This theory was also confirmed using a number of Fibonacci ratios and applying them to the S&P's daily chart. Using both time and price relationships, Boroden predicted last week that a change in the market's direction was due, a move which has started to occur.

While Boroden sees only 4% of downside for the markets, her analysis found the S&P could rise as high as 1,464, a full 11% move from today's levels.

Cramer emphasized that the markets are still being held hostage by Europe, which makes this a stockpicker's market, not a market for technicians like Boroden. However, while the markets wait for a European resolution, Cramer said it's helpful to look at the charts to get a sense of direction and perspective, something Boroden's research does very well.

Lightning Round

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

Banco Santander

( STD): "It's a good bank but I'm not going there. It's not worth it."

Toronto-Dominion Bank

(TD) - Get Report

: "I'm telling you to buy it. They have a great yield and great management."


(INCY) - Get Report

: "I think it's a good speculative situation and I think it should be bought."


(AFL) - Get Report

: "Nah, I'm not that interested. Why don't you try


(TRV) - Get Report


Bank of America

(BAC) - Get Report

: "It's a decent spec. It's not my cup of tea but I don't think it's all that bad."

Executive Decision

In the "Executive Decision" segment, Cramer spoke with Tony O'Reilly, CEO of Providence Resources, an Ireland-based oil exploration and drilling company that has potentially made game-changing oil discoveries off the coast of Ireland.

O'Reilly explained that there are currently only 150 oil wells off the coasts of Ireland, leaving the bulk of the seas "massively unexplored." He said after a long history of unsuccessful attempts to drill in the area, the game-changing factor has been technology.

"Technology has impacted every area of our lives," noted O'Reilly, and the oil business is no different. He said that areas deemed impossible decades ago are now well within reach and Ireland now has the infrastructure, financing and technology to make it happen.

O'Reilly described Providence Resources as an early-stage player in the oil market, one that's focused on discovery and development of offshore properties. After the oil begins flowing, he said, Providence licenses its properties to partners and moves on to newer discoveries.

While the exact amounts of oil recoverable in the Irish seas has yet to be determined, estimates could be in the billions of barrels, said O'Reilly. And with Providence making money on anything over $40 a barrel for oil, the outlook is great for both his company, for Ireland and for Europe overall.

Cramer said while Providence Resource shares do not trade in the U.S., the company offers hope for Europe at a time when it seems all hope for growth and prosperity has been lost.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer once again opined on the botched


(FB) - Get Report

IPO and how it tarnished an asset class already under siege.

Cramer said that stocks have once again become a laughingstock for many Americans, pieces of paper that can go up or down in value by 10%, 20% or even 30% in an instant, based on the whims of ETFs and high-frequency traders. The Facebook IPO could have been a win for everyone, said Cramer, and instead it dragged us all through the mud.

Cramer said he wishes there could be two stock markets, one for hedge funds and day traders and another for real investors, the ones who are actually investing in the companies behind those clicks of the mouse.

"If individuals pick the right stocks, reinvest their dividends and do their homework," Cramer concluded, "the money practically makes itself." But only if the markets would operate the way they are supposed to.

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

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Scott Rutt


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At the time of publication, Cramer's Action Alerts PLUS had no position in any of the companies mentioned.

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.