Cramer's 'Mad Money' Recap: Searching for Market Leaders

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NEW YORK ( TheStreet) -- The markets appear to be stalled, Jim Cramer told his "Mad Money" TV show viewers Monday, but that doesn't mean it's time to abandon them. Cramer said that it may be hard to find the market's leaders at the moment, but they are indeed out there.

Technology used to be a market leader, but now only telco spending is heating up, noted Cramer. That's simply not enough for the markets to take nice. Even positive news from Google ( GOOG), Facebook ( FB) and Yelp ( YELP) received a yawn on Wall Street.

The financials are in a similar boat as they pause for interest rates to rise or home sales to rebound, Cramer said. The food and drug stocks have stalled, with names including Johnson & Johnson ( JNJ) peaking. Housing stocks have also been stopped cold, and only a few restaurants, including Chipotle Mexican Grill ( CMG) and Panera Bread ( PNRA), remain buys.

In the oil patch, only EOG Resources ( EOG) has managed to bucked the trend and headed higher, while the real estate investment trusts and master limited partnerships continue to struggle in their new environment.

Perhaps the only bright spots are those sectors that rely on China and a rebound in Europe. Cramer said aerospace and autos, along with materials, mining and minerals offer hope of picking up steam as the global economy strengthens. A move in the steel stocks, he noted, may just be heating up.

Executive Decision: Rick Goings

In the "Executive Decision" segment, Cramer sat down with Rick Goings, chairman and CEO of Tupperware ( TUP), a stock that's soared 478% since Cramer first got behind it in October 2006 and one that's up 11% since he last spoke with Goings in late April. Shares of Tupperware currently sport a 2.8% dividend yield.

Goings once again championed Tupperware's person-to-person business model, noting that every few seconds there's a Tupperware gathering of friends, family or neighbors somewhere in the world. Despite the many revolutions in social media, people still like to meet face to face, said Goings.

However Tupperware is also flexible, he noted, and in countries like China, where space is limited, Tupperware now has 3,900 stores to help reach their millions of customers. As the global middle class continues to expand, the power of the Tupperware brand will only keep expanding. That's why Indonesia is now one of the largest markets for Tupperware because that country is experience a surge in women entrepreneurs and a 36% surge in sales.

When asked about managing a global company, Goings said shareholders benefit most when he's managing and growing the business and not when he's catering to short-term hedge fund shareholders, which is why he continues to focus on the business and not the day-to-day movements of the stock.

When asked about Tupperware's dividend, Goings said the dividend remains sacred, and if more capital is needed for growth it will come from the company's stock buyback program and not from its dividend.

Cramer said Tupperware remains an inspiring global success story that investors should continue to follow.

Off the Charts

In the "Off The Charts" segment, Cramer went head to head with colleague Bob Lang over the chart of Lululemon Athletica ( LULU), a stock that got pummeled after its CEO abruptly resigned two months ago.

According to Lang's research, Lulu's weekly chart shows the stock holding steady before the surprise announcement, but since its $14 decline, the stock has been rebuilding, or "filling in the gap," ever since. He noted the MACD momentum indicator just flashed a buy signal, and the last three times that happened Lulu's stock saw massive rallies.

Lang noted that Lulu's daily chart confirmed this theory, showing an even more bullish pattern, a cup and handle formation. With the stock forming the "handle" now, Lang felt that shares could see $100 a share, with a floor just below where they trade now at $72 a share. Lang also noted that the RSI, or relative strength indicator, is also in bullish territory.

Cramer said he agreed with Lang that Lulu will be able to overcome the loss of its CEO and is poised to rally at least back to where it traded before the news broke.

Lightning Round

In the Lightning Round, Cramer was bullish on Five Below ( FIVE), Western Union ( WU), Urban Outfitters ( URBN), Quidel ( QDEL), Covance ( CVD), Advanced Micro Devices ( AMD) and Michael Kors ( KORS).

Cramer was bearish on Exelon ( EXC).

Executive Decision: Scott Wingo

In his second "Executive Decision" segment, Cramer sat down with Scott Wingo, CEO of ChannelAdvisor ( ECOM), the ecommerce cloud company that's been soaring ever since its IPO last quarter.

Wingo said that already nearly 10% of all retail sales are online, and that's expected to grow by 15% a year for the foreseeable future. ChannelAdvisor helps online retailers get their products directly in front of customers on search engines, comparison shopping sites and other marketplaces all from one interface.

Wingo explained that by focusing on products and not on Web sites, ChannelAdvisor works very well in a mobile world and has even been able to help Chinese manufacturers get their products in front of U.S. customers.

When asked whether other tech giants may enter ChanelAdvisor's market, Wingo said his company remains neutral, offering multiple platforms all from a single interface. That means that no company will ever compete head to head as it's unlikely that Amazon.com ( AMZN) would ever offer a tool to help merchants sell on eBay ( EBAY) and vice versa.

Finally, when asked about the company's business model, Wingo explained the pricing as a "shared success" revenue model that's beneficial for all parties involved, which has been one of the keys to success.

Cramer called ChannelAdvisor an unbelievable success and one of which he's still a fan.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer opined on the recent drama surrounding hedge fund manager Bill Ackman and his positions in Hebalife ( HLF), JCPenney ( JCP) and Air Products ( APD).

Cramer said that while it's true that when a fund manager is down, plenty of other managers will step in to take the other side of the trade, but that can be a risky game to play. He said investors could short JCPenney and go long Herbalife, but he'd rather buy ancillary stocks such as Sears Holding ( SHLD) or Airgas ( ARG) to rival Ackman's bets against JCPenney and Air Products.

There may be blood in the water, Cramer concluded, but that doesn't mean you can't still get hurt by buying in the hedge fund drama.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

-- 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 had a position in FB.

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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