NEW YORK ( TheStreet) -- "This market favored greed today," Jim Cramer told the viewers of his "Mad Money" TV show Tuesday. He said the bears were betting on a Greek default, but now that the doom-and- gloom scenario is off the table, the markets ushered in two new sets of buyers, hungry for quick profits. Cramer explained that the first group of buyers saw the decline in oil prices, and used those prices as a reason to buy any company that uses oil. Following that logic, users of other commodities like cotton and corn also rallied, as did consumer stocks, high-growth retailers and even the restaurant stocks. All the markets needed was a little good news and the buyers swarmed in. Cramer said that's why stocks like Lululemon Athletica ( LULU) hit a 52-week high today, as Lulu not only benefits from lower commodity prices, but also has pricing power to raise prices on its goods at the same time. Also in rally mode, accessory maker Fossil ( FOSL), Chipotle Mexican Grill ( CMG), VF Corp ( VFC), Polo-Ralph Lauren ( RL) and Phillips-Van Heusen ( PVH). Cramer said the second group of buyers in today's market were honing in on the industrial stocks, figuring that without a European collapse, these stocks, some of which are down 15% to 20% from their highs, would once again fall into favor. And they did. Cramer said the shorts in these stocks left the field as the buyers swarmed in.
Emerging-Market Growth PlansContinuing with his "Five-Year Plan" series of stocks with long-term growth plans, Cramer featured 3M ( MMM), a best-in-show company which rolled out it's five-year plan earlier this year. Cramer said after growing only 4% last year, 3M's new plans are for 7% to 8% annual growth through 2015. The company also plans to increase margins to over 20% and increase new product sales. More impressive are 3M's emerging market plans, which includes growing its Chinese sales 15% to 20% annually, its Brazilian sales by 20% and nearly tripling sales in India. Cramer said there's lots of upside in this plan for 3M. More importantly, Cramer said that 3M already has a great track record. He said the company's emerging market sales are already on fire,and the increased focus will only make it more so. 3M is a high-quality franchise, with industry-leading market share and pricing power to pass on rising costs to its customers, he said. Cramer said 3M also boasts an excellent balance sheet, a 2.4% dividend yield that can easily be raised and the stock trades at only 13 times earnings despite the company's 12% long-term growth rate. What's not to love?
A Word of CautionIn the "Off The Charts" segment, Cramer went head to head with colleague John Roque over the direction of the markets. According to Roque's analysis, a chart of the S&P 500 index looks healthy at first, with the average holding above its support level of 1,250. However Roque questions the strength of that floor, noting that it may not hold up under pressure. Roque also looked at 10-day moving average charts of the market's new highs and lows. He discovered that after averaging 200 new highs back in May, the market is only producing 26 today. A chart of the lows shows that after averaging 20 new lows in May, there are 72 on average today. Even the advance decline charts are turning down sharply for all of the major indices, said Roque, some falling even below the lows of the Japan panic in March. Cramer agreed that Roque's analysis should temper investors' euphoria for the markets and cause them to remain cautious. He said the markets are not out of the woods yet, and he would book profits and most certainly not be greedy.