Cramer's 'Mad Money' Recap: Good Reasons to Stay in the Market

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NEW YORK ( TheStreet) -- The markets haven't crashed for a reason, Jim Cramer told his "Mad Money" TV show viewers Tuesday, and that's because there are plenty of reasons to still own stocks. There is no panic in the air, he said, as many are still hopeful for a deal that can avert the fiscal cliff.

Cramer said there's a new feeling in Washington, one that says our politicians better not stand in the way of a budget deal or they'll be called out and chastised by their party and their constituents. No one wants higher taxes, massive layoffs and lower stock prices, Cramer said, which is why he's keeping spaces on his "Wall of Shame" for any congressman that refuses to cooperate.

So why haven't stock prices cratered in the meantime? Cramer said there are many reasons. Many investors simply aren't aware of drastic consequences if a deal is not reached, while others have their investments in IRAs and other tax-favored accounts that may not be affected by the fiscal cliff. Those investors are buyers into weakness and help provide a cushion for the markets, Cramer said.

Then there are the earnings, strong earnings, from the likes of Home Depot ( HD) and Dicks Sporting Goods ( DKS), which prove that Americans are still spending, especially on their homes. Other big moves, including from biotechs like Celgene ( CELG) and Gilead Sciences ( GILD), are hard to pass up, Cramer continued.

In the end, being out of the market when a deal is reached would be a huge mistake, Cramer said, as even a bad outcome is better than no outcome at all. That's why at the beginning of the Iraq war in 2003, stocks rallied as the troops crossed the border, because after months of waiting and anticipation, a resolution was finally at hand.

All of these are reasons to stay in the markets, Cramer concluded, and not to panic as the wrangling in Washington gets under way.

Clean Energy CEO: Fiscal Cliff, Nat Gas

In the "Executive Decision" segment, Cramer once again sat down with Andrew Littlefair, CEO of Clean Energy Fuels ( CLNE), a stock that's been cut in half since its highs earlier this year, but also one that received a boost Tuesday on the news that the company is building two liquefied natural gas plants with General Electric ( GE) to help it become more vertically integrated in becoming the leading natural gas provider for heavy trucks.

Littlefair said that Clean Energy Fuels is excited to have General Electric as a partner and will be building two plants to liquefied gas plants to start. He said these plants are not huge and sit on just a few acres of land. They will pull our abundant natural gas from pipelines and cool it into a liquefied form, where it can then be shipped up to 250 miles to Clean Energy stations and partners.

Littlefair said ultimately, Clean Energy plans 10 such plants, allowing the company to provide fuel along the major interstate corridors across our country.

When Westport Innovations ( WPRT) introduces the next-generation natural gas engines in February, Littlefair added, that will likely be the catalyst to convince many more truckers to begin using natural gas and start saving up to $1.50 per gallon in fuel costs.

When asked about perpetual delays in Washington in aiding the industry, Littlefair said the natural gas industry doesn't need the government's help to be successful because it has economics on its side. He said major partners are lining up and everything is falling into place, albeit at a slower pace than many have liked.

Finally, Littlefair said the technology is being developed for consumers to fill up their natural gas cars at home and should be available within a few years. That technology, he said, would be a boon for the industry as there are 70 million homes connected to our natural gas network and would provide an excellent alternative fuel source for disasters like Hurricane Sandy.

Cramer said Littlefair made him feel more upbeat on the prospects for natural gas in America.

Honeywell CEO: Advising President Obama

In the "Executive Decision" segment, Cramer also spoke with David Cote, chairman and CEO of Honeywell ( HON). Cote is also one of those spearheading the "Fix The Debt" campaign at FixTheDebt.org. Along with other prominent corporate CEOs, Cote will be meeting with President Obama tomorrow to discuss how to responsibly fix the fiscal cliff.

Cote said that America's debt crisis if the worst in 200 years and will take compromise to fix. He said our country needs a simpler tax code that collects more; reforms to Social Security and Medicare; and serious spending cuts in order to fix the $4 trillion gap in America's budget.

"Compromise is synonymous with government," said Cote, adding now is the time to be responsible and not reckless by playing politics.

Cote said some try to confuse the issue of the budget with that of taxing the wealthy, but the issue is far, far bigger than that. He said if you wanted to fix the budget by taxing the rich alone, you would have to tax the top two tiers 108% of their income to do it. Clearly, a comprehensive solution is needed.

Cote called on the "radical middle," those 70% of Americans not tied to the fringes of our political system, to come together and get this problem solved. If we don't, he said, eventually the problem will be solved for us with a crisis far bigger than even the one we have today.

Lightning Round

In the Lightning Round, Cramer was bullish on Qualcomm ( QCOM), Cisco Systems ( CSCO), Broadcom ( BRCM), Realty Income ( O), Exelixis ( EXEL) and Dynavax Technologies ( DVAX).

Cramer was bearish on Sandstorm Gold ( SAND) and SodaStream ( SODA).

Off the Charts

In the "Off the Charts" segment, Cramer went head to head with colleague Bob Lang over the chart of Boeing ( BA), a stock which Cramer owns for his charitable trust, Action Alerts PLUS and one that is squarely in the crosshairs of the looming fiscal cliff.

Using a daily chart of Boeing, Lang noted that the price action has been strong and rising since the election earlier this month, indicating that the big money managers are starting to get into the stock. With a floor at $69 a share, Lang said investors have decent downside protection at these levels.

More importantly, Boeing's recent rally now puts the stock above its 10-day, 50-day and 200-day moving averages, which makes it an "up stock" in the eyes of technicians who follow it. The MACD indication also recently signaled a bullish crossover, further confirming that now is the time to buy, buy, buy even though technically, a failed budget deal would drastically cut defense spending and send the economy into recession.

Cramer said there's a tremendous buying cycle at hand in the aerospace world, as more and more airlines need to add more fuel efficient planes to their fleets. This cycle lasts for years, he said, which is why Boeing is one stock that can fly higher than even the fiscal cliff.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer took a moment out to praise the management at Home Depot ( HD) and Dicks Sporting Goods ( DKS) for their remarkable earnings.

Cramer said that Home Depot has provided investors with both consistency and humility and is now set to ride the waves of a recovering housing market and the rebuilding effort after Hurricane Sandy.

As for Dicks, there too, management delivered for shareholders at a time when rivals like Cabella's ( CAB) failed miserably. Cramer said the 5% pop in same store sales was remarkable during a time when many are not necessarily in the market for expensive sneakers or outdoor sporting gear.

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

To email Scott about this article, click here: Scott Rutt

Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

At the time of publication, Cramer's Action Alerts PLUS was long GE, BRCM and BA.

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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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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