Cramer's 'Mad Money' Recap: Goldman's Head Fake (Final)

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NEW YORK ( TheStreet) - "Sometimes things go exactly according to plan," Jim Cramer told the viewers of his "Mad Money" TV show Tuesday.

Cramer predicted on Monday that the market would take a breather and it did. He predicted there would be a slow decline and there was. And he said the Nasdaq was beginning a multi-year rally based on the mobile Internet, and the index did head higher.

Another thing that's going according to Cramer's predictions is housing. Cramer called the bottom in the housing market on June 30, and today the first survey came out showing a slight rise in home prices, the first in almost two years.

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This came on the heels of strong earnings from cabinet and home products maker Masco ( MAS), along with Stanley Toolworks ( SWK) and Black & Decker ( BDK) last week.

"Whether you're buying, or selling, a home, you need to fix it up," said Cramer. That's why he was especially concerned by Monday's downgrade of Lowe's ( LOW) by Goldman Sachs. "Investors who sold Lowe's based on the Goldman headline were wrong," he said.

Cramer explained that research reports by the big firms are meant for institutional investors, and not the "homegamer." He said while Goldman removed Lowe's from its "Conviction Buy List," the firm actually had good things to say about the company, and the sector. So why the downgrade?

Cramer said that Goldman cited "relative valuation" for removing Lowe's from its esteemed list, meaning only that the company's stock have gotten too pricey relative to where it first recommended it as well as to others in its sector. So why Lowe's may not be right for Goldman, Cramer explained it's still right for average investors who don't play the "relative valuation" game.

Cramer said his bottom line is to not always go with the headlines. Wall Street research is meant for Wall Street, he said, and is not always right for your portfolio. "If you think housing's headed higher, stick with Lowe's," he said.

Missing the Move

In his "Off the Charts" segment, Cramer went head-to-head with the market technicians over the concept of the "golden cross," one of the holy grails technicians use to confirm a bull market has arrived.

According to the technicians, when the 100-day moving average of the S&P500 crossed over the 200-day moving average last Friday, a golden cross occurred, confirming that the markets are indeed in a bullish trend.

But Cramer dismissed the notion of a golden cross, calling it "useless." He said that such an indicator is so far behind the markets that investors who wait for the cross have already missed a great move. Cramer said simply, "wait for the cross and you'll miss out."

"Winning in the stock market isn't about waiting for confirmations," said Cramer, "it's about anticipating the market's next move."

Stagnant Job Growth

Cramer spoke with T. J Rodgers, president and CEO of Cypress Semiconductor ( CY), a company at the heart of Cramer's mobile Internet thesis.

Rodgers explained that Cypress' top-line growth came from making products that are in demand and people want. He said the company's programmable system on a chip technology allows them to build a chip once and then program it for applications as diverse as smart phones to coffee makers and baby monitors.

When asked why America is not creating more jobs, Rodgers gave his view that it's all about the mix between public sector and private sector spending. He explained that after World War II, the federal government accounted for 49% of the nation's GDP, but since then has fallen to around 30%. However with Obama in office, more 50% of the nation's GDP is now in the public sector and that slows job creation.

When asked about other factors limiting growth, Rodgers took aim at Cypress' home state of California, with its 9.75% sales tax. He explained that while Cypress used to have its fabrication and assembling and testing facilities in the state, it's now moved off shore due to the state's hostile environment.

Cramer called Rodgers a winner, and said he'd stick with the company.

Mad Mail

Cramer told a viewer that he's not a fan of the India Fund ( IFN) since its trading at a premium over it's asset value of $27.55 a share. He said under that amount, he'd consider being bullish on the fund.

Lightning Round

Cramer was bullish on Potash ( POT), Teledyne Technologies ( TDY), RF Micro Devices ( RFMD) and Triquint Semiconductor ( TQNT). Gilead Sciences ( GILD), Celgene ( CELG), Canadian National Railway ( CNI), CSX Corp ( CSX), Kansas City Southern ( KSU) and Smith Micro Software ( SMSI).

He was bearish on Mosaic ( MOS). Genzyme ( GENZ).

Check out the latest edition of "Cramer's Take on Top-Searched Stocks" on Stockpickr.

Reported by Scott Rutt in Washington D.C.

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At the time of publication, Cramer was long Gilead Sciences.

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."

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