Cramer's 'Mad Money' Recap: New Playbook (Final)

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(Story updated to add Cramer's Lightning Round picks, his comments on the health of the banking sector, and his concluding remarks.)

NEW YORK ( TheStreet) -- Jim Cramer once again took on the market naysayers, telling his "Mad Money" TV show viewers Tuesday that they need to stop trying to out-think the markets and stop trying to draw linear conclusions where there simply aren't any.

The markets are in expansion mode, he explained, and that means investors need a whole new investing playbook.

Cramer panned the intellectuals still clinging to every word and innuendo out of the Federal Reserve. He said with the economy heating up and the laws of supply and demand taking over, "Washington has been left behind at the station" and the Fed is no longer a factor.

Cramer said with the economy recovering, even an ailing bank like JPMorgan Chase ( JPM) can raise its dividend, since it can once again lend money and actually profit from it.

So what does an expanding market mean for stocks? Cramer said first, it means that stocks can indeed go higher. Second, he said it means that the Federal Reserve is just a sideshow from now on and won't meaningfully affect the markets. Third, Cramer said that supply and demand will be in charge going forward. And lastly, Cramer noted that investors needs to pay attention to companies with sustainable earnings.

Cramer said investors need to look for growth companies, like Apple ( AAPL), a stock which he owns for his charitable trust, Action Alerts PLUS and Chipotle Mexican Grill ( CMG), stocks which are trading for less than one time their growth rate.

Disappointed in Congress

In the "Executive Decision" segment, Cramer once again checked in with Andrew Littlefair, president and CEO of Clean Energy Fuels ( CLNE), a stock that's up 65% since Cramer last spoke with Littlefair just four months ago.

Shares of Clean Energy Fuels were dealt a pair of setbacks this week, as the company reported a larger-than-expected loss and in Washington, when Congress failed to pass a subsidy bill for natural gas trucks.

Littlefair said that he was disappointed by today's congressional action. He said our country was counting on leadership and simply didn't get it today. Supporting natural gas is the only policy that will get America off foreign oil, explained Littlefair, and the bill that was defeated wouldn't have cost taxpayers a dime.

But Littlefair remained upbeat, saying that America doesn't need Washington to do the right thing. He said major corporations are already moving to natural gas vehicles and as more and more climb on board, the downward pressure on oil prices will begin. For it's part, Littlefair said that Clean Energy Fuels is building 150 new natural gas fueling stations across the country and will "make a dent" in the infrastructure needed to make natural gas a reality.

In fact, Littlefair noted that the incremental cost for a company to purchase the latest generation natural gas truck pays for itself in just six to seven months, down from over a year just a few months ago.

Cramer said that investors shouldn't buy into Clean Energy Fuels for the short term, but rather because they know that our country is smarter than our leaders and will eventually adopt this clean-burning, domestic fuel.

Doing the Right Thing

In his second "Executive Decision" segment, Cramer spoke with Jim Hackett, chairman and CEO of Anadarko Petroleum ( APC), a stock that got slammed down 1.3% today after the company lowered production guidance for 2012. But underneath the headline number, Cramer noted that Anadarko is getting punished for doing the right thing, as the company shifts away from dry natural gas to more lucrative oil and liquid projects.

Hackett said that Anadarko stock will continue to move forward and he remains confident in the company's decision to reign in its growth in order to reduce some of its dry gas drilling operations.

He said that Anadarko still has huge assets and opportunities for growth, as offshore drilling remains an enormous resource for America. Hackett noted that just one of Anadarko's offshore platforms accounted for 2% of the country's total gas output at its peak, a phenomenal accomplishment.

When asked about today's disappointing news out of Washington, Hackett responded by saying that using natural gas for surface vehicles is "absolutely the answer" for our country. He said if we don't convert to the fuel, it would be a failure of leadership in both the public and private sector. Natural gas is America's way to get off imported oil.

Turning back to Anadarko itself, Hackett said that the company is a lot better off than it was a year ago, when it was dealing with the aftermath of the oil spill in the Gulf of Mexico. He said the spill is behind the company and the underlying value of its assets are once again coming through in Anadarko's share price.

Finally when asked about his upcoming departure, Hackett said that Anadarko is in great shape and the company has prepared itself will for the transition to its new CEO. Cramer agreed with those sentiments, saying that Anadarko remains a great company with a terrific outlook.

Parsing the Banking Sector

In the "Off The Charts" segment, Cramer went head to head with colleague Tim Collins over the health of the banking sector, picking out the good, the bad and the ugly stocks of the group.

On the good side, Collins liked Cullen Frost Bankers ( CFR), a stock that's traded sideways only to recently break through its resistance levels. Collins said the next stop for Cullen Frost could be in the mid-$60. Collins was also bullish on JPMorgan Chase ( JPM), an Action Alerts PLUS holding. Collins identified a "W" formation in this chart, noting that today's bullish news sent shares through all resistance levels.

In the bad camp were the European banks, as exemplified by the MSCI European Financial ETF ( EUFN). Collins said these stocks are meeting stiff resistance at current levels and investors are using any strength to get out of their positions.

Finally, the ugly stock of the banking group was Royal Bank of Scotland ( RBS), a stock forming the dreaded rounded-top pattern, signaling that there's a lot more pain ahead, as this stock could give back all of its gains for the year.

Cramer said we're in a stock picker's market and the financials are the perfect example.

Lightning Round

Cramer was bullish on Intel ( INTC), Plains All American Pipeline ( PAA) and Monster Beverage ( MNST).

Cramer was bearish on Telefonica ( TEF), Netflix ( NFLX), Inergy LP ( NRGY) and Diamond Foods ( DMND).

Closing Comments

In his "No Huddle Offense" segment, Cramer told investors to "ignore the noise" and look for the root causes of the market's many bull markets. He said that just because Apple is roaring, it doesn't mean that the rest of the tech sector can't also prosper.

He said that rising oil prices aren't enough to kill the rising retail sector. And a slowdown in China isn't enough to slow down the recovery in Goldman Sachs ( GS).

Cramer said headlines touting that the new Walt Disney ( DIS) movie, "John Carter" will cause disappointments for shareholders are simply noise. In reality, he said Disney makes its money from ESPN, ABC and theme parks, not from just a single movie.

"Things are better than we think," said Cramer, which is why stocks continue to power higher.

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

To contact the writer of this article, click here: Scott Rutt.

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At the time of publication, Cramer was long Apple, JPMorgan Chase.

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."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com 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 TheStreet.com, 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 TheStreet.com. 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 TheStreet.com, 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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