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NEW YORK ( TheStreet) -- "June was a lot better than May," Jim Cramer told his "Mad Money" TV show viewers on Tuesday, as he explained that company after company has confirmed this trend on their earnings calls.

Cramer said this news is finally starting to dawn on the markets, most of which was paying attention to doom and gloom forecasts and estimates based on macro economic theories. But in reality, Cramer noted that in the month of June the price of oil peaked, commodity prices fell and even unemployment showed a glimmer of hope. Cramer said if investors listen to the companies themselves, and not the macro theories, they'll get a whole different outlook on the markets.

Cramer noted that company after company, from homebuilder Lennar ( LEN) to apparel-maker Phillips-Van Heusen ( PVH) all said things were looking better in June than they were in May. The same rings true for Nike ( NKE), Fossil ( FOSL), Pier 1 Imports ( PIR) and Oracle ( ORCL), a stock which Cramer owns for his charitable trust, Action Alerts PLUS .

Cramer said that it's clear that oil and gas production and pipelines are ramping up in this country, as are the machinery stocks. He said everything from retail to restaurants will also be on the rise as oil prices fall and the world begins to see a stronger Japan.

Auto Recovery

"We're starting to see signs of a recovery in the auto market," Cramer told viewers as he said that now is the time to jump back into the auto parts makers. He said the auto parts players are down an average of 18% thanks to the pessimism in the markets over higher fuel prices and lower demand. But with oil prices falling and demand starting to pick up, Cramer said this sector is ready to continue what is typically a 90-month expansion cycle.

With so little auto part inventory in the system, Cramer said he likes Johnson Controls ( JCI), an Action Alerts PLUS name, the best. He said Johnson has seen a 45% increase since he first got behind it in November, 2012, but shares could see another 50% gain as demand improves. Johnson Controls is cheap, trading at just 12 times earnings with an 18% growth rate, he noted.

Cramer also gave the nod to Lear ( LEA), which makes seating along with wiring and power management systems. Lear currently has a $2.2 billion backlog of work and trades at just 8.5 times earnings.

Also making the list, turbocharger maker Borg Warner ( BWA). Cramer said this company also makes emissions and drive train components and is trading at a steep discount of only 14.8 times earnings with an 18% growth rate.

Shale Revolution Just Starting

In the "Executive Decision" segment, Cramer spoke with Aubrey McClendon, chairman and CEO of Chesapeake Energy ( CHK), a company whose industry has repeated come under fire from the mainstream media. Most recently, a report called the industry a Ponzi scheme, overrating reserves to boost share prices.

McClendon said he's not sure why the natural gas industry is being targeted by extremists. He said gas prices are at a seven-year low and the U.S. is now the largest producer of natural gas in the world. That simply can't happen if the gas isn't there, he noted. McClendon said the U.S. is only at the beginning of the shale gas revolution and the industry isn't even allowed to talk about their unproven reserves, only their proven reserves.

McClendon said that the geologist cited in the New York Times article is only one of 200 the company employs and one that hasn't been employed for long. He said the context of the email cited from the geologist was that it was hard to make money with gas prices so low, not that reserves aren't there. McClendon said the natural gas industry has spent hundreds of billions of dollars to develop their shale fields, adding the gas is indeed there in abundance.

McClendon went on to say that it was sad that the New York Times missed the opportunity to tell the real story, which is that natural gas is a bright spot in the economy, one that could replace coal and create jobs and a better environment all while replacing dirty and politically costly coal and oil.

Cramer said McClendon makes a pretty good case and he's placing his bets with Chesapeake.

Small Caps on the Rise

In the Off the Charts segment, Cramer went head to head with colleague Alan Farley over the direction of the U.S. dollar and how that will drive the Russell 2000 Index, a measure of small-cap stocks in the market.

According to Farley, the dollar is completing a long-term bottoming process, bouncing of its lows from 2010 and signaling that a stronger dollar is likely in 2012.

Using that knowledge, Farley said the Russell 2000 showed a head and shoulders pattern between March and May, only to break down thereafter. He said this failed attempt by the shorts to take the index lower was thwarted, with the index returning to its 200-day moving average and beyond. Farley thinks the Russell is now poised for a big move higher as a strong dollar is on the way.

Cramer seemed to agree with Farley, noting that small cap stocks may be the place to be in second half of 2011.

Lightning Round

P/>Cramer was bullish on Cheesecake Factory ( CAKE), Ezcorp ( EZPW), Imax ( IMAX), Baidu.com ( BIDU), Alcoa ( AA), Hawaiian Electric ( HE), Southern Company ( SO), Dominion Resources ( D), Consolidated Edison ( ED) and El Paso ( EP).

He was bearish on Zhongpin ( HOGS) and LDK Solar ( LDK).

Closing Comments

In his "No Huddle Offense" segment, Cramer said the market is entering a price earnings multiple expansion phase, in which investors are willing to pay more for the accelerating earnings of companies like Lululemon Athletica ( LULU), Panera Bread ( PNRA), Chipotle Mexican Grill ( CMG) and Netflix ( NFLX).

Cramer said investors are often shunned for chasing these momentum plays, but that's the essence of good investing. He said in a slow-growth world, the big boys will be reaching for these fast-growers and investors need to reach for them first.

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

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At the time of publication, Cramer was long Oracle, Johnson Controls.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com 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 TheStreet.com, 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 TheStreet.com is related to the specific opinions expressed by him on "Mad Money."

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