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NEW YORK (
) -- There are a ton of things to like about this market, but for now the bears win, Jim Cramer admitted to his
TV show viewers Tuesday.
Cramer said the markets have become a battleground. With Congress heading back into session, investors should be prepared for the worst.
Those buying into the markets at these levels are expecting too much, said Cramer, as it's impossible to get a perfect world with low interest rates and cheap stocks, along with a pro-American Syria and a pro-jobs Congress. "Dream on," he quipped. Instead, he expects a mixed market, with many things to like and many things to fear.
In the good news camp, Cramer said interest rate increases are slowing to a pace the markets can surely handle, and both Europe and China are slowing recovering and helping the global economy. Big deals like
reclaiming of its wireless business will continue to act as one-company stimulus plans will also help buoy skittish markets.
But on the bad news side there is uncertainty in Syria as well as uncertainty over the next
chairman. Investors continue to fret over a possible government shutdown and fears of a slowdown in both housing and retail as interest rates continue to rise. Add that to the overall jitters over the months of September and October and it's no surprise the bears will likely be in control for the weeks to come.
How should investors play the malaise? Cramer said he'd be a seller into the morning rallies and use those proceeds to raise cash, play it cautious and be prepared for Congress to once again take center stage.
Off the Charts
In the "Off The Charts" segment, Cramer went head to head with colleague Carly Garner over the chart of direction of oil and gold, two commodities that have been on the rise on the heels of increased fears over Syria. According to Garner, these two commodities need to be treated very differently.
Looking at a weekly chart of gold along side of the Commitment of Traders report from the U.S. Commodity Futures Trading Commission, Garner noted traders have been largely liquidating their positions in gold for most of 2013, but have only begun rebuilding those positions over the past few weeks as Syria took center stage. She said this trend may be far from over during the seasonally strong season for gold, which would make her a buyer into any weakness.
Turning to a daily chart, Garner's research indicated both the relative strength and William's momentum oscillators, which were signaling overbought conditions, are now relaxing as investors are buying on the rumors in anticipation of selling on any military action, which would make for a great entry point.
Oil is a different story, however, as Garner said she'd sell into any strength. Unlike gold, oil has been rallying for most of the year and the Commitment of Traders report here indicates an overbought condition that is typically followed by violent selloffs. Syria is, in fact, a net importer of oil, which only adds to the case that a selloff is likely with military action. Garner felt that a low of $90 a barrel is possible, especially if oil spikes over $115 ahead of any action.
Cramer said he's sticking with Garner, who has been red-hot in her analysis and predictions of late.
Get Your Game On
With the official start of the professional football season almost upon us, it's time for Cramer's yearly Fantasy Stock Portfolio where he picks the best of the best companies that should be in your portfolio.
For tonight, Cramer offered his recommendations for running backs, quarterbacks and tight ends.
Cramer said the running backs need both strength and experience, and that's why he's choosing
, a company with a 4,800-plane backlog and a stock that's up 39% for the year. He also chose
, a well-diversified player that trades at 14.6 times earnings with a 13.7% growth rate and a 2% yield. Rounding out the group is another industrial with aerospace exposure,
, which also continues to outperform the markets.
In the quarterback spot, Cramer said he wanted a stock that consistently knows how to put points on the board, and that means
, which delivered 8% same store sales growth last quarter, yet still trades at a paltry 26.8 times earnings with a 19.6% growth rate. Starbucks continues to innovate, yet rarely gets rewarded for it, said Cramer.
In the runner-up QB slot, Cramer nominated
another strong, healthy company that can anchor any portfolio, especially in a recovering global economy.
Finally, at tight end, it's
, another strong player that's nimble enough to get the job done no matter what the global economy is up to, Cramer said.
In the Lightning Round, Cramer was bullish on
Hertz Global Holdings
Cramer was bearish on
Executive Decision: David Demers
In the "Executive Decision" segment, Cramer spoke with David Demers, CEO of
, the natural-gas engine maker that disappointed Wall Street last quarter when the company lowered its full-year guidance.
Demers said that while only 1% of all trucks in the U.S. are currently running on natural gas, the trend line is showing solid growth and the industry is now scrambling to build out infrastructure to meet the coming demand. He said cleaner diesel engines are in the works and natural gas is both cleaner and cheaper. Given how readily available it is in both the U.S. and China, it will remain the natural choice for many companies, he said.
Demers also touted Westport's partnership with
, noting that his company already has 11 vehicles with Ford and the coming F-150 pickup next year will be very exciting for both companies.
When asked about the company's cash needs, Demers said Westport's cash burn is dropping and it has no immediate plans to raise more cash.
Cramer said that while the adoption of natural gas has indeed been a long time coming, it does look as if the trucking world is starting to adopt the fuel. This is great news for Westport, which has been waiting for this day for a very long time. He told viewers to do their homework and take another look at Westport.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer opined on the two big tech deals of the week, Verizon buying back the rest of its wireless division and
buying the handset portion of
Cramer said that in his mind, Verizon's deal was the right move while Microsoft's was the wrong move. He said that while he's not a fan of Verizon taking on so much debt, Verizon Wireless is working and ultimately the parent Verizon's numbers go higher as a result of keeping all of the profits.
Meanwhile, Microsoft's move smells of desperation and is throwing good money after bad because Windows Phone has yet to gain any traction whatsoever. The game may already be over, said Cramer, which makes Microsoft's investment a head-scratcher.
To watch replays of Cramer's video segments, visit the Mad Money page on CNBC
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-- Written by Scott Rutt in Washington, D.C.
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At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL, F, HON and JOY.
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