Cramer's 'Mad Money' Recap: Tricks of the Trade (Final)

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NEW YORK ( TheStreet) -- "Sometimes it feels like there's no pattern to to the markets," Jim Cramer told the viewers of his "Mad Money" TV show Tuesday.

Today, for example, steel stocks such as US Steel ( X) got clobbered, while other industrial stocks, like chemical company PPG ( PPG), a stock which Cramer owns for his charitable trust, Action Alerts PLUS , finished strong. Oil giants ExxonMobil ( XOM) ended higher, meanwhile oil driller Transocean ( RIG), finished sharply lower. What's going on? Cramer said we need only look at the calendar.

Cramer reminded viewers that we're just three days away from the end of the month, and the end of the fiscal year for many hedge funds and mutual funds. He said this means the race to "mark up," or take higher, a fund's largest positions has begun.

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Cramer explained that many funds will bolster their quarterly and yearly performance by buying more of the stocks it already owns, thus taking those stocks higher. "Every dollar matters to these guys," he said, so even a small bump can make a huge difference in a billion dollar portfolio.

Since enforcement officials watch for this "less-than-ethical" maneuver on the last day of the month, Cramer said most funds will begin their buying throughout the first part of the last week of October, and end on Thursday, the day before their fiscal years officially end. This mark-up buying, he said, will send some stocks higher, seemingly for no reason at all.

Cramer said the markets will not make much sense for the next three days. He said investors looking to cash in some stocks should wait until Thursday to receive the best price, while those looking to buy into the highest of high-flying names may be better off waiting until next week's trading.

Bullish Sentiments

In the "Off The Charts" segment, Cramer went head to head with colleague Dan Fitzpatrick over the chart of Netflix ( NFLX), a stock which Cramer advised selling on Aug. 20 and has since risen 21%.

According to Fitzpatrick, the daily chart of Neflix confirmed Cramer's sell recommendation. However, he sees another story when he looks at a monthly chart of the stock. Fitzpatrick said that $40, which had been resistance for the stock, is now becoming support, and he sees shares trading as high as $70 a share.

Turning to the fundamentals, Cramer said Netflix has become a resilient company that's posting incredible growth. The company recently reported a blowout quarter and raised its guidance, along side a new deal to rent movies through Sony's ( SNE) Playstation 3.

Cramer said the Netflix model of low prices and free Internet streaming of movies is proving to be a winner. Subscriber growth at the company was up 28% from a year ago, with net income rising 48% from its previous year. With earnings expected to grow at 18.6% next year, Cramer said Netflix is still cheap, despite its stock rising over 80% so far this year.

Cramer said Netflix is seemingly unstoppable, and is changing his tune and becoming a bull on the stock.

Lightning Round

Cramer was bullish on Innophos Holdings ( IPHS), Olin Corp ( OLN), QLogic ( QLGC), Network Appliance ( NTAP), EMC ( EMC), Gilead Sciences ( GILD), Bank of America ( BAC), Citigroup ( C), Smart Balance ( SMBL), Windstream ( WIN), Fluor ( FLR), ArcSight ( ARST), NICE-Systems ( NICE), Syniverse Holdings ( SVR) and Wendy's/Arby's Group ( WEN).

He was bearish on Amgen ( AMGN), Activision ( ATVI), Leap Wireless ( LEAP) and SAIC ( SAI).

Housekeeping Issues

Before taking care of a few "housekeeping" issues, Cramer first commended Pennsylvania Gov. Ed Rendell for his recent decision to not tax natural gas drilling in the Marcellus shale region of his state. Cramer said Rendell, who was interviewed last night, is setting the stage for natural gas drilling in this country. He said Rendell's efforts will make natural gas the environmentally friendly bridge fuel we need for energy independence.

Cramer also followed up on his recent recommendation to buy Deckers ( DECK) and sell Under Armour ( UA) when he pitted both stocks against each other a few weeks back. He said now that both companies have reported, he was right. Deckers reported a blowout quarter, and is up 15% since the call, while Under Armour, which reported great earnings as well, lowered guidance, sending the stock down 12% today.

Finally, Cramer followed up on a stock called Neutral Tandem ( TNDM), which stumped him in an earlier lightning round. He said that after researching the company, it fits in with his mobile Internet tsunami thesis and he'd be a buyer of this stock which is growing earnings at 23%.

Mad Mail

Cramer told a viewer Bank Of America ( BAC) is a buy. He said rumors of the company needing to do a secondary offering are exaggerated.

Cramer told another viewer that he'd be a seller of Sun Microsystems ( JAVA), now that the company has gotten a takeover bid. He said investors should not to wait for the deal to close, and instead "take money and run."

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

Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here.

For more of Cramer's insights during the Lightning Round, click here .
At the time of publication, Cramer was long PPG, Bank of America, 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."

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.

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