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NEW YORK ( TheStreet) -- Rumor has it the stock market is now being driven completely by rumors. At least that's what Jim Cramer heard on the Street Tuesday, he told "Mad Money" viewers. Whether it's a Spanish bailout, European deposit insurance or air strikes against Iran, if there's a rumor about it, the markets are likely trading on it. But Cramer called "rumor investing" totally useless, adding that it's no way for anyone to invest their money. Why? Because the truth is that no one really knows anything until it actually happens and even when it does, there's still a good chance those events won't be directly affecting the stocks in your portfolio. That's why Cramer continues to recommend sticking with stocks that don't have anything to do with Europe, stocks like American food companies, a la B&G Foods ( BGS) or Dr Pepper Snapple ( DPS), or domestic tobacco players like Altria ( MO). Cramer also recommended domestic housing stocks including Lumber Liquidators ( LL) and paint-maker Sherwin-Williams ( SHW) as safe bets with no European exposure. There is also the biotech sector, names like Arena Pharmaceuticals ( ARNA) and Seattle Genetics ( SGEN), both of which will continue the fight against life-threatening diseases no matter what the economies in Europe are up to. Not everything is part of the European debacle, Cramer reminded viewers. "The sooner you realize that, the more money you'll make."
Hidden in Plain SightEurope's debt woes may make it harder to find strong stocks, Cramer told viewers, but that's no excuse for missing them. Case in point: Dollar General ( DG) and Dunkin Brands ( DNKN), two stocks that have risen 22% and 35% respectively this year, all in plain sight of savvy investors. Cramer said there have been many times in the stock market's history where gains were only possible in a handful of sectors. There were times when only health care was making money, others when technology was the only place to be. So it should come as no surprise that in today's market, where Europe has taken the financials, industrials, energy and technology stocks off the table, stocks like Dunkin and Dollar General would be good places to invest.
Both of these companies are regional to national expansion stories, said Cramer. Both have long runways of growth ahead of them. Both have successfully made secondary offerings of stock, right under everyone's noses. Cramer said Dollar General has done four secondaries recently, while Dunkin has done two in the past year. All of these deals were highly visible, he noted, and easily accessible to the individual investor. Deals like these are exactly the ones investors need to be paying attention to, said Cramer, and the problems in Europe is no excuse for missing them.
Off the ChartsIn the "Off The Charts" segment, Cramer took a step back to see the bigger picture of the markets and take a technical look with the help of his colleague Carolyn Boroden. Using a weekly chart of the Standard & Poor's 500 index, Boroden's research called a bottom in the markets between 1,259 and 1,269, just 4% below where the markets closed today. Using "measured move" analysis, which compares the relative sizes of market moves to the upside and downside, Boroden noted that recently the S&P has been moving in $155 increments, which puts the market's bottom precisely in her target range. This theory was also confirmed using a number of Fibonacci ratios and applying them to the S&P's daily chart. Using both time and price relationships, Boroden predicted last week that a change in the market's direction was due, a move which has started to occur. While Boroden sees only 4% of downside for the markets, her analysis found the S&P could rise as high as 1,464, a full 11% move from today's levels. Cramer emphasized that the markets are still being held hostage by Europe, which makes this a stockpicker's market, not a market for technicians like Boroden. However, while the markets wait for a European resolution, Cramer said it's helpful to look at the charts to get a sense of direction and perspective, something Boroden's research does very well.
Lightning RoundHere's what Cramer had to say about caller's stocks during the "Lightning Round": Banco Santander ( STD): "It's a good bank but I'm not going there. It's not worth it."
Toronto-Dominion Bank ( TD): "I'm telling you to buy it. They have a great yield and great management." Incyte ( INCY): "I think it's a good speculative situation and I think it should be bought." Aflac ( AFL): "Nah, I'm not that interested. Why don't you try Travelers ( TRV)?" Bank of America ( BAC): "It's a decent spec. It's not my cup of tea but I don't think it's all that bad."
Executive DecisionIn the "Executive Decision" segment, Cramer spoke with Tony O'Reilly, CEO of Providence Resources, an Ireland-based oil exploration and drilling company that has potentially made game-changing oil discoveries off the coast of Ireland. O'Reilly explained that there are currently only 150 oil wells off the coasts of Ireland, leaving the bulk of the seas "massively unexplored." He said after a long history of unsuccessful attempts to drill in the area, the game-changing factor has been technology. "Technology has impacted every area of our lives," noted O'Reilly, and the oil business is no different. He said that areas deemed impossible decades ago are now well within reach and Ireland now has the infrastructure, financing and technology to make it happen. O'Reilly described Providence Resources as an early-stage player in the oil market, one that's focused on discovery and development of offshore properties. After the oil begins flowing, he said, Providence licenses its properties to partners and moves on to newer discoveries. While the exact amounts of oil recoverable in the Irish seas has yet to be determined, estimates could be in the billions of barrels, said O'Reilly. And with Providence making money on anything over $40 a barrel for oil, the outlook is great for both his company, for Ireland and for Europe overall. Cramer said while Providence Resource shares do not trade in the U.S., the company offers hope for Europe at a time when it seems all hope for growth and prosperity has been lost.
No Huddle OffenseIn his "No Huddle Offense" segment, Cramer once again opined on the botched Facebook ( FB) IPO and how it tarnished an asset class already under siege. Cramer said that stocks have once again become a laughingstock for many Americans, pieces of paper that can go up or down in value by 10%, 20% or even 30% in an instant, based on the whims of ETFs and high-frequency traders. The Facebook IPO could have been a win for everyone, said Cramer, and instead it dragged us all through the mud.
Cramer said he wishes there could be two stock markets, one for hedge funds and day traders and another for real investors, the ones who are actually investing in the companies behind those clicks of the mouse. "If individuals pick the right stocks, reinvest their dividends and do their homework," Cramer concluded, "the money practically makes itself." But only if the markets would operate the way they are supposed to. --Written by Scott Rutt in Washington, D.C. To contact the writer of this article, click here: Scott Rutt. To follow the writer on Twitter, go to http://twitter.com/scottrutt. To submit a news tip, send an email to: firstname.lastname@example.org. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.