'Real Money' Wrap-Up: Why Cramer Loves This Tape

Jim Cramer blessed Tuesday's tape by encouraging his radio listeners to "celebrate the confluence in stocks."

On his "RealMoney" radio show, Cramer said 462 stocks -- those making new highs Monday -- can't be wrong.

"Usually if oil goes up nothing else can," said Cramer. "But nowadays, oil, retail and everything else is going up together. That means that there is more cash out there chasing stocks, and the Fed is not killing the economy."

As evidence that the consumer still feels flush, Cramer cited Tuesday's positive performances in his so-called four horsemen of the consumer: Sears ( SHLD), Best Buy ( BBY), Home Depot ( HD) and Lowe's ( LOW). All four were ramping and, according to Cramer, "when those pins fall, you are going to get a strike."

The pin action from the retailers will help companies that sell products designed to improve people's homes, such as Black & Decker ( BDK), Stanley Works ( SWK), Masco ( MAS) and American Standard ( ASD).

Likewise, Cramer believes that Best Buy is "ground zero for technology," and that means good things for the likes of Apple ( AAPL), Dell ( DELL) and Corning ( GLW) which makes liquid crystal displays for big-screen TVs.

Technology flying off the shelves at Best Buy also means good things for semiconductor manufacturers, since all those tech toys are stuffed with chips.

Furthermore, Cramer highlighted that summer is typically not the best time for retailers, something he says augurs a strong fall.

"Housing, autos and retail are all doing better than anybody thinks," said Cramer. "Use the selloffs to put money to work."

Despite the solid tape, Cramer said not everything is a raging buy. He is not high on financials, other than longtime fave Commerce Bancorp ( CBH), and he is also not big on chemical stocks.

In his "Danger Zone" segment, Cramer suggested selling WPT Enterprises ( WPTE), the force behind the television phenomenon World Poker Tour.

Cramer bases his dislike for the shares on an article in the New York Post about a potential takeout in the stock. He said the story does not have any credence, so take money off the table. And definitely don't go all-in.

On the other hand, Cramer says it's more than OK to give shares of Whirlpool ( WHR) a spin. Cramer foresees a hot summer with hot sales for air conditioners and other appliance at Sears. He handicaps the stock, recently trading just above $70 as "$5 down and 15 up."

And despite Herb Greenberg's negative article on Urban Outfitters ( URBN), Cramer still loves it. And he'll take on Herb tonight personally on Mad Money.

Cramer put pharmaceuticals stocks in his Sector Spotlight, where he takes emails and calls from listeners.

He responded to one listener by recommending Bristol-Myers ( BMY) over Merck ( MRK) because of Vioxx litigation overhang.

And Genentech ( DNA) has seen some detractors lately over concerns about price controls for its drugs. Nevertheless, Cramer says stick with it because it's best-of-breed, his favorite type of company.

Other sensible swaps in pharma-land would be UnitedHealth Group ( UNH) for Pfizer ( PFE). And while he likes Becton Dickinson ( BDX) ("What's not to like at 25 times earnings?"), he likes Abbot Laboratories ( ABT) more.

Interested in more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here. It's a series of articles from Cramer on how to become a better investor. The following table lists some of the rules that Cramer dissects.

1. Pigs Get Slaughtered 2. It's OK to Pay the Taxes
3. Don't Buy All at Once 4. Buy Damaged Stocks
5. Diversify to Control Risk 6. Do Your Homework
7. Don't Panic 8. Buy Best-of-Breed
9. Defend Some Stocks 10. Don't Bet on Bad Stocks
11. Own Fewer Names 12. Cash Is for Winners
13. No Regrets 14. Expect Corrections
15. Know Bonds 16. Don't Subsidize Losers
17. No Room for Hope 18. Be Flexible
19. Quit When Execs Do 20. Patience Is a Virtue
21. Be a TV Critic 22. When to Wait 30 Days
23. Beware the Hype 24. Explain Your Picks
25. Find the Bull Market
Check back for more of Cramer's Rules

At the time of publication, Cramer was long Commerce Bancorp, Sears and UnitedHealth.

James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here. Listen to Cramer's RealMoney Radio show on your computer; just click here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict."

More from Personal Finance

3 Apps Than Make Retirement Planning Fun for Millennials

3 Apps Than Make Retirement Planning Fun for Millennials

What the Fed Rate Hike Means For You

What the Fed Rate Hike Means For You

What Is Drew Brees' Net Worth?

What Is Drew Brees' Net Worth?

The Best Places to Live in the U.S. if You're Young and Broke

The Best Places to Live in the U.S. if You're Young and Broke

What Is Matt Ryan's Net Worth?

What Is Matt Ryan's Net Worth?