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NEW YORK ( TheStreet) -- "We can't sell off of both good news and bad news," Jim Cramer announced to the viewers of his "Mad Money" TV show Tuesday, as he examined two bear conflicting bear arguments for why the markets should be lower.

Cramer said one the one hand, the bears argue that the markets are worried about inflation, and the Federal Reserve's unwillingness to stop it. But on the other hand, the bears also argue that falling commodity prices are signaling a global slowdown where the estimates are far too rosy.

He said the bears can't have it both ways. He said we simply can't have inflation if commodity prices are falling, and commodity prices don't fall when there's inflation.

Cramer said his biggest worry going into 2011, and perhaps the only thing that can stop his predicted 12% rally in the Dow, is oil prices. Cramer said if gasoline tops $4 a gallon at the pump, then all bets are off, as that's the psychological level where consumers begin to freeze up and stop spending.

But that's not happening, said Cramer, as oil sank nearly $10 last week. He said the market weakness has created opportunities to buy in stocks like McDonald's ( MCD), a company that reported strong earnings, as well as in the bank stocks and credit card companies, two sectors that are "ready" for another move higher.

Cramer also gave the nod to retail stocks, chiefly Kohl's ( KSS), a stock which he owns for his charitable trust, Action Alerts PLUS , along with Wal-Mart ( WMT), a stock that's finally beginning to show some signs of life.

Off the Charts

"Not every momentum stock with a shrinking multiple should be abandoned," Cramer told viewers in the "Off The Charts" segment, where he went head to head with colleague Ken Shreve over the charts of two high- flying tech stocks.

According to Shreve, the stock of IT consulting powerhouse Infosys ( INFY) shows that company experiencing multiple contraction, as investors are willing to pay less for the company's slowing growth.

After the company announced such a slowing in January, shares of Infosys, which traded at 31 times earnings, fell to levels in line with a multiple 28 times its earnings. Shreve said the heavy volume shows that institutional investors are moving money out of Infosys.

That money could be flowing into rival, and Action Alerts PLUS stock Accenture ( ACN) however, as Shreve noted that this company's stock is showing classic signs of a multiple expansion.

After hitting lows in November, trading at just 15 times earnings, shares of Accenture now trade trade at 18 times earnings, also on heavy volume. According to Shreve, Accenture is headed still higher.

Cramer agreed with Shreve's analysis, saying that he too believes the market is moving money out of the slowing Infosys and into Accenture, which is currently the better company with better growth prospects.

Stealth Electric Car Trade

There is no pure play way to invest in electric car batteries, Cramer told viewers, but he did find one that comes close. He said that the filtration company Polypore ( PPO), a stock that's up 71% since Cramer recommended it in August, 2010, may be the best stealth way to play the proliferation of electric vehicles.

Cramer explained that in addition to Polypore's boring healthcare and industrial filtration businesses, the company manufactures separators for the batteries used in electric cars. And with just three key players accounting for 85% of the battery separator market, Polypore has a lot of room to grow.

That's probably why Polypore is expected to increase its capacity by 10 times over the next few years, and why electric battery separators could become as much as one-third the company's revenue. Cramer said if Polypore takes a cue from other conglomerates that have been splitting up to unlock value, Polypore could rise 20% on a breakup announcement.

Cramer said he arrived at his estimate by multiplying Polypore's $175 million in battery sales by a multiple of 10, a conservative number, then adding back the company's other businesses.

When it comes to the other players in the battery market, Cramer said Ener1 ( HEV) and A123 Systems ( AONE) are far too speculative with no earnings, and Aerovironment ( AVAV) has electric car exposure accounting for just 4% of the company's revenue. Polypore, he said, is the only way to play.

Organic Growth

In the "Executive Decision" segment, Cramer spoke with Martin Franklin, executive chairman of Jarden Corp ( JAH), which is up 30% since Cramer first got behind the company in November, 2009, and one that's just one point off its 52-week high. Jarden pre-announced better-than-expected earnings earlier today.

Franklin said that when it comes to consumer products, there are no tired brands, only tired brand managers, and Jarden is not one of those managers. He said that thanks to continual innovation, Jarden's organic growth alone is now larger than the entire company was just a few years ago.

When asked about the company's gross margins, Franklin said that brands need to earn their price points and keep costs under control, which is what Jarden has become an expert at. He said while some assembly is still done in China, for some products, assembly is done in Mexico, and the company is actively trying to keep production in the U.S. where ever possible.

Finally, when asked about the company's foray into the single-serve coffee market, Franklin explained that Jarden's Mr. Coffee brand has introduced a single-serve coffee machine that's compatible with Green Mountain Coffee Roasters ( GMCR) K-Cup coffee pods.

Cramer continued his recommendation of Jarden.

Lightning Round

Cramer was bullish on Applied Signal Technology ( APSG) and ( AMZN).

He was bearish on Goldcorp ( GG).

Closing Comments

In his "No Huddle Offense" segment, Cramer followed up on his "pre-game analysis" of Kimberly-Clark ( KMB), a stock he said yesterday merely needed to meet expectations to do well.

Cramer said Kimberly did far better than just meet expectations, the company beat estimates by five cents a share and delivered inline guidance, while offering upbeat commentary that included a dividend boost, a stock buyback program and other restructuring designed to help boost the bottom line.

Shares of Kimberly shot up 3% on the news, and closed up $1.64 a share for the day. Cramer said if shares slide, he would be a buyer of Kimberly, but it's not likely given the company's strong performance as expected.

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

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At the time of publication, Cramer was long Kohl's, Accenture.

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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