NEW YORK ( TheStreet) -- "Selling is not a dirty word," a passionate Jim Cramer told, make that yelled, to his "Mad Money" TV show viewers Tuesday. Cramer repeated once again that investors can always take profits and can always avoid down days in the markets like today. Cramer said after a spectacular October where the markets have risen almost 1,000 points, stocks have simply gotten overextended and were ripe for a big down day like today. He scoffed at the many reasons why investors choose not to sell, such as paying taxes or not taking a loss. Cramer said being a trader, taking profits on the way up, is the only smart way to invest. Stocks like Cummins ( CMI), a Cramer fav and stock which he owns for his charitable trust,
Big Negative GoneIn the "Executive Decision" segment, Cramer spoke with Kelcy Warren, chairman and CEO of Energy Transfer Partners ( ETP), a pipeline master limited partnership that recently announced that it will sell its propane operations. Warren said that while he likes the propane business, consolidation in the industry is needed, which is why he chose to sell its propane assets to Amerigas ( APU). He said the resulting Energy Transfer will have far less seasonality and will no longer be affected by swings in the weather. "Our natural gas lines are full every day," he explained. Warren also outlined a coming transaction with its parent Energy Transfer Equity ( ETE), where the parent will be merging with another entity and dropping down ownership of some assets to Energy Transfer Partners. Warren said this transaction will allow his company to create its own growth going forward. Looking towards the future, Warren said he expects to be moving more and more natural gas as the quarters roll on and Energy Transfer Partners will continue to "follow the drill bits" to wherever natural gas is being discovered. He said the price of the commodity has little effect on his company's earnings, but increasing volumes certainly does. Finally, when asked about the prospects of exporting U.S. natural gas, Warren said it's positioning itself for that business, but he's not optimistic that the U.S. will ever be a big exporter of its gas. Cramer said with the big negative of propane now gone and the promise of growth coming in 2012, Energy Transfer Partners is paying investors to wait.
Off the ChartsIn this segment, Cramer went head to head with colleague Ed Ponsi over the chart of two sectors, the banks and the retailers. Using the KBW Bank Index ( BKS) and the Merrill Lynch Retail Holders ( RTH) ETFs as proxies, Ponsi got to work. According to Ponsi's analysis, the weekly chart of the banks shows that the group has lagged the markets, failing to break above its $40 ceiling. However the group now exhibits a reverse head-and-shoulders pattern, which signals a bottom for the sector. Ponsi also noted the MACD Indictors also point towards a bullish move for the index. Ponsi felt the banks could see a 10% pop in coming weeks. In retail, Ponsi said that this group is flirting with its 52-week highs, but has exhibited a golden cross pattern where the 50-day moving average crosses the 200-day moving average. Each time this happens, the charts surge higher. The daily charts of the same index, however, signal that in the short term, the group may be overbought. Ponsi felt waiting for a pullback, like today, would be the prudent move. Turning to the fundamentals, Cramer asked why own an index when you can pick the best companies in the group? He said in retail, that's VF Corp ( VFC) and Deckers Outdoor ( DECK), while for the banks that would be US Bancorp ( USB), an Action Alerts PLUS name with no European exposure, and BB&T ( BBT) a strong regional player.