Cramer's 'Mad Money' Recap: Deflating the Disaster Hype (Final)

Cramer says there are too many good things happening here in the U.S. to give up on the stock market.
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NEW YORK (

TheStreet

) --"Don't get too pessimistic and don't give up," was Jim Cramer's advice to the viewers of his "Mad Money" TV show Tuesday, after another roller coaster day on Wall Street. Cramer says there are too many good things happening here in the U.S. to give up on the stock market.

Cramer pegged his worst-case scenario for the

Dow

at 8,650, but that was based on a 20% decline in Europe, a 10% decline in Asia and other factors he does not see happening.

While many pundits are only watching the news out of Greece and the European Union, Cramer said he's watching more important indicators, ones that are being ignored by just about everybody. For example, Cramer noted that the Richmond Federal Reserve put out a report saying that service employment jumped in their area of the country. "That's huge," said Cramer.

There was also a recent release by the

Fed

stating that lending in U.S. continues to recover, and another from the Philadelphia Fed saying that manufacturing is on the rise. "This still will matter," Cramer told viewers.

And there are other positives as well, noted Cramer. Things like consumer confidence on the rise, and gas prices continuing to fall. Then there's housing prices. Cramer said while the pundits mourn the passing of the federal tax credit, he's focused on how still-lower mortgage rates will save home buyers TWICE that amount. With 18 of 20 metro areas now reporting home price appreciation, Cramer said buyers have already missed the bottom.

Cramer said all of this great news doesn't matter to stocks... yet, but they will. He said as stock prices continue to fall, things continue to look better and better for

Apple

(AAPL) - Get Report

and

Intel

(INTC) - Get Report

, two stocks which Cramer owns for his charitable trust,

Action Alerts PLUS.

Cramer also was positive on

Annaly Mortgage

(NLY) - Get Report

,

Pepco Holdings

(POM)

and

Excelon

(EXC) - Get Report

.

Special Interview

In a special interview, Cramer spoke with Senator Ted Kaufman (D. Del.) about financial reforms in the wake of the Dow's machine-driven 1,000 point decline on May 6.

Kaufman said that any time you have a lot of change and a lot of money with no transparency, you have a problem, and that's exactly what he feels has happened in the world of high-frequency trading. He said over the past few years, high-frequency trading has gone from 30% to 70% of all trading, and none of it is being regulated.

Kaufman said that he wants to make sure the

Securities and Exchange Commission

looks into the issue, and he urged individual investors to contact the SEC and make their voices heard. He said high-frequency trading did not add liquidity to the market in its time of need, it instead pulled liquidity out of the market, allowing some stocks to plunge to zero.

Kaufman added that the days of "trust me, it'll all work out," are over, and in his experience, good things only happen after bad events. He said the events of May 6 have proven to the SEC and others that there is indeed a problem, and everyone is now mobilized to make the tough changes that are needed to fix the problem.

Cramer commended Kaufman for his work on reforms and told viewers they should also support his efforts.

Off The Charts

In the "Off The Charts" segment, Cramer went head to head with colleague Tim Collins over the fate of the euro, a chart which Cramer joked should be rated PG-13, as it may be too gruesome for some viewers.

Collins used the

Currency Shares Euro Trust

(FXE) - Get Report

as his proxy for the euro. On the daily chart, he noted that the 14-day moving average has been a ceiling for the beleaguered currency, and every time it trades near it, shares get slapped down. Also of concern was the relative strength index, which is also providing resistance for the euro.

Turning to the weekly chart, Collins noted a textbook head-and-shoulders breakdown pattern, indicating that shares could fall as low as $117 in the short term and as low as $99 by the end of the year.

Cramer said he agrees with Collins' analysis, which is why he continues to recommend investing only in high-yielding U.S. stocks that have no or little European exposure. He said as the euro continues to decline, money will flow more and more into U.S. bonds, driving their yields lower, and making dividends all the more attractive.

Mad Mail

In the "Mad Mail" viewer feedback segment, Cramer told a viewer that he's not a fan of

Avon Products

(AVP) - Get Report

in lieu of the company missing its earnings. He likes both

Herbalife

(HLF) - Get Report

and

Tupperware

(TUP) - Get Report

in the direct marketing category.

Cramer told another viewer that

Las Vegas Sands

(LVS) - Get Report

is not his favorite casino stock. He still likes

Wynn Resorts

(WYNN) - Get Report

for their Macau exposure.

Finally, Cramer told a viewer not to sell

Plum Creek Timber

(PCL)

, and instead advised the viewer to buy more.

Lightning Round

In the Lightning Round, Cramer was bullish on

Wendy's/Arby's Group

(WEN) - Get Report

,

Darden Restaurants

(DRI) - Get Report

,

SPDR Gold Shares

(GLD) - Get Report

,

DuPont

(DD) - Get Report

,

Dow Chemical

(DOW) - Get Report

,

Union Pacific

(UNP) - Get Report

,

Delcath Systems

(DCTH)

,

Dendreon

(DNDN)

and

Kinder Morgan Energy Partners

(KMP)

.

Cramer was bearish on

Seabridge Gold

(SA) - Get Report

,

Alcoa

(AA) - Get Report

,

Norfolk Southern

(NSC) - Get Report

and

Linn Energy

(LINE)

.

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

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

.

Want more Cramer? Check out Jim's rules and commandments forinvesting from his latest book by

clicking here.

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

.

At the time of publication, Cramer was long Apple and Intel.

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

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