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) -- "Occasionally you need to show some courage if you're going to beat the market," Jim Cramer told the viewers of his

"Mad Money"

TV show Tuesday.

He said it's stupid to back away from great stocks just because others may be panicking.

Cramer said there was no shortage of negativity in today's markets. Whether it was concerns over North Korea, the bailout in Ireland, Chinese interest rate hikes or falling home prices, Cramer said the bears always have a case to be made. But, he asked, if any of these issues are new and whether they affect every stock or just a handful.

Cramer said the problem is that the bears never get penalized for being wrong, and the bulls never get any credit for being right. He said there's an asymmetrical litmus test that only serves to scare smaller investors. "You need courage to buy into a weak market," he said.

When looking at the market today, Cramer said he wouldn't be a buyer of Chinese stocks, nor the Spanish banks or anything related to housing. But, he said, he would be a buyer of the stocks he highlights on "Mad Money," stocks like the recently mentioned

Clean Harbors

(CLH) - Get Clean Harbors Inc. Report

, or railroad


(CSX) - Get CSX Corporation Report


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Cramer said he's not a seller on days like today, he's a buyer.

Ailing Financials

In the "Off The Charts" segment, Cramer went head to head with colleague John Roque over the charts of the financial stocks, a sector that was showing signs of life after the election, but has now once again taken a turn for the worse.

According to Roque, when looking at a chart comparing the performance of the financials versus the

S&P 500

it's clear to see that the financials have broken down over the past few weeks, sliding below their 40-week moving average.

Roque also noted that the financials still make up 15% of the S&P, while historically they've only accounted for 12% of the average. Roque felt that the financials will sink below that historical average before beginning to recover.

Cramer also cast doubts over the group, saying that year end selling pressure buy hedge funds and mutual funds will wreck havoc over the group until January. He said investors are tired of losing money, and there's a widespread belief that the banks still need more capital to be on a solid footing. He said without a catalyst, there is little to like about the banks.

What does all this mean for the broader markets? Cramer said that looking at a longer term chart, going all the way back to 1994, it's clear that the broader markets can rally, even if the financials are not. In 1999, for example, the financials underperformed, but the markets rallied. In April, 2007, the markets rallied for three months after the financials took a nosedive.

But Cramer noted that eventually the markets will need leadership from the financials. He said he may have to change his stance on the markets come January if the banks are not showing at least a glimmer of hope for the new year.

Fabulous FADS CAN

"The mechanics of the market are on your side," Cramer told viewers. He said with so many hedge funds and mutual funds trailing the averages, they'll be piling into the momentum stocks from now until year's end, trying to close that gap.

Cramer said that's just one more reason to own his "FADS CAN" portfolio of the best secular growth names, stocks like

F5 Networks

(FFIV) - Get F5 Inc. Report



(AAPL) - Get Apple Inc. Report

, which he also owns for his

Action Alerts PLUS portfolio,

Deckers Outdoor

(DECK) - Get Deckers Outdoor Corporation Report


Chipotle Mexican Grill

(CMG) - Get Chipotle Mexican Grill Inc. Report


Still need more reasons to own these names? Cramer said Oprah endorsed three of them when she added products from Apple, Deckers and


(NFLX) - Get Netflix Inc. Report

to he "favorite things" for 2010.

Cramer said the key to any portfolio is flexibility, that's why he added F5 and

(AMZN) - Get Inc. Report

to list and replaced

Intuitive Surgical

(ISRG) - Get Intuitive Surgical Inc. Report


Express Scripts


three weeks ago. He said since that change, Amazon and F5 are up on average 11%, while Intuitive and Express Scripts are down 1% along with the major averages.

Cramer told investors they too need to stay active and follow their winners into years end. He said never be afraid to let the losers go.

Waiting for Congress

In the "Executive Decision" segment, Cramer spoke with David Demers, CEO of

Westport Innovations

(WPRT) - Get Westport Fuel Systems Inc Report

, one of the leaders in natural gas engine technology.

Shares of Westport are up 51% since Cramer first recommended it on Jan. 4, but have stalled since Cramer last spoke to Demers on June 3, as the country awaits natural gas legislation from Congress.

Demers said it's hard to believe the natural gas industry has been waiting for two-and-a-half years for incentives from Congress to convert diesel trucks to cleaner, cheaper and domestic natural gas. He said the economics are clear, with most truck fleets seeing paybacks on their investments in as little as six to twelve months. Demers said the shift toward natural gas is happening, albeit slowly.

When asked about China however, Demers said that country's natural gas industry is booming. He said the U.S. could still take the lead in technology and development, but it' ll need to get moving soon to do so.

Demers said the natural gas industry would bring hundreds of thousands of jobs to the U.S. He said natural gas is a fabulous story, and its an exciting time for the industry.

Cramer said he's stunned at how the U.S. could lag the would in natural gas adoption while at the same time sitting on the world's largest supply of the fuel. Westport, he said, is definitely a buy.

Lightning Round

Cramer was bullish on

International Paper

(IP) - Get International Paper Company Report


Enterprise Products Partners

(EPD) - Get Enterprise Products Partners L.P. Report


Energy Transfer Partners



Skyworks Solutions

(SWKS) - Get Skyworks Solutions Inc. Report


Tiffany & Co

(TIF) - Get Tiffany & Co. Report






(JWN) - Get Nordstrom Inc. Report


He was bearish on

Packaging Corp of America

(PKG) - Get Packaging Corporation of America Report


Closing Comments

Cramer gave his highest praise to

J. Crew


CEO Mickey Drexler, adding him to his "Wall of Fame" list of the very best CEOs.

Shares of J. Crew are up an astonishing 402% since Cramer first recommended the stock on Dec. 1, 2008. He said Drexler is often the subject of short-term criticism, but over the long term, no one has done a better job in retail. Cramer said Drexler remains one of his idols, and he salutes his performance on the heels of the company's $3 billion buyout.

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

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Scott Rutt


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


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clicking here


For more of Cramer's insights during the Lightning Round, clickhere


At the time of publication, Cramer was long Apple.

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.