Cramer's 'Mad Money' Recap: From a Headwind to a Tailwind

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NEW YORK ( TheStreet) -- There has been a remarkable turn in the markets and it's coming from an area where we least expect it, Jim Cramer said on "Mad Money" Tuesday. Today's markets were bailed out by none other than the rest of the world.

Cramer said the very same countries that have been dragging U.S. markets lower for years have now turned from a headwind to a tailwind, with remarkable turns in Europe happening almost daily. He said that in the technology group, he's betting on eBay ( EBAY), which has still not seen a turn in Europe, along with Google ( GOOG), which should do well with a rising tide in the ailing continent.

The banks are also incredibly cheap, Cramer noted, with Royal Bank of Scotland ( RBS) and Banco Bilbao ( BBVA) in Argentina among his favorites.

Good news from Europe is also good news for China, taking a hard landing for that economy off the table, said Cramer. Companies like Vale ( VALE) and Joy Global ( JOY) should be among the winners in the mining and materials sectors. Both are holdings in Cramer's charitable trust, Action Alerts PLUS.

This good news overseas couldn't come at a better time as U.S. housing is slowing, thanks to rising interest rates and a potential blockage of the U.S. Airways ( LCC) merger taking the wind out of the airline group.

Executive Decision: Gregg Engles

In the "Executive Decision" segment, Cramer spoke with Gregg Engles, chairman and CEO of WhiteWave Foods ( WWAV), the healthy-foods maker that's up 13.5% since being spun off from Dean Foods ( DF) in October.

Engles said non-dairy alternative foods have been on fire over the past few years, with products like soy and almond milk offering great taste along with many health benefits. He said the category is gaining share as customers catch on that these products are sustainable and more eco-friendly than their traditional counterparts.

Engles was also upbeat on his company's partnership to provide Green Mountain ( GMCR) brand iced coffee products later this year. He said the coffee segment has also been a real winner for WhiteWave.

Among the company's only problems has been the supply chain, said Engles. WhiteWave is incurring additional costs to store and distribute its products with third parties while it ramps up its own operations to meet the growing demand. When asked whether shortages for items like organic milk could occur, Engles said that supply has largely met demand for many organic foods and the supply continues to grow as does the demand.

Cramer said that after recommending Dean Foods ahead of the WhiteWave spinoff, the continuing way to make money with the healthy eating trade is with WhiteWave as its earnings begin to kick into full gear.

Off the Charts

In the "Off The Charts" segment, Cramer went head to head with colleague Tim Collins over the charts of the steel stocks, a group that Collins felt could see a 20% move by year's end.

Using a daily chart of the Market Vectors Steel ETF ( SLX), Collins noted that after completing an ascending triangle pattern, this ETF has returned to its March breakdown levels. If shares break through $44 a share, a reverse head-and-shoulders pattern would be formed, sending the ETF soaring.

Collins also noted the commodity channel index, or CCI, is also signaling a strong overbought condition, which would normally be bearish, but in this case is showing strong buying activity.

On the weekly chart of the Market Vectors ETF, Collins said that only the $46 a share ceiling of resistance remains, and both the TRIX and MACD oscillators are signaling bullish crossovers, which are extremely bullish.

Among the group, Collins liked Steel Dynamics ( STLD), one of the stronger players in the sector. A chart of Steel Dynamics also showed both the TRIX and MACD oscillators at or near bullish crossovers and Collins felt $20 a share for this stock was very likely by year's end.

Cramer said while he agrees that with China on the mend, the steel stocks should flourish, he's betting on Timken Steel ( TKR), another Action Alerts holding and a company he recently visited for "Mad Money" and is reinventing itself.

Lightning Round

In the Lightning Round, Cramer was bullish on Krispy Kreme Doughnuts ( KKD), Microchip Technology ( MCHP), Opko Health ( OPK), KeyCorp ( KEY), First Horizon National ( FHN) and Huntington Bancshares ( HBAN).

Cramer was bearish on 3D Systems ( DDD), Nordic American Tanker ( NAT), BioCryst Pharmaceuticals ( BCRX), Alcoa ( AA), International Business Machines ( IBM), MannKind ( MNKD) and Regions Financial ( RF).

Executive Decision: Sam Thomas

In his second "Executive Decision" segment, Cramer spoke with Sam Thomas, chairman, president and CEO of Chart Industries ( GTLS), a stock that's soared 200% since Cramer first got behind it in February 2011 and 20% since Cramer last spoke with Thomas in May of this year.

During the interview Thomas was standing in front of a new, self-contained, liquified natural gas filling station on wheels. He explained that while infrastructure for natural gas is being built out, mobile platforms can be filled and driven to where they're needed, allowing small fleets of trucks to switch to natural gas now and upgrade to permanent filling options later on.

Thomas called the move to natural gas purely an economic one. With new LNG truck engines just now hitting the market, operators can save up to 30% on their fuel costs, which makes the payback on a natural gas vehicle now just 12 to 18 months. That's part of the reason why orders for Chart Industries' equipment have been ramping up steadily all over the world.

Thomas said that just a few years ago, Chart was talking with China about converting 10% of its truck fleet to natural gas, but now that percentage has grown from 50% to plans to eventually replace all trucks with natural gas. He noted that in the U.S. it took diesel fuel about seven years to replace regular gas in trucks and a similar pattern for natural gas is now occurring.

Cramer said it's been a long time coming, but the time for natural gas may finally be at hand.

Executive Decision: Rick Hamada

In his final "Executive Decision" segment, Cramer spoke with Rick Hamada, chairman and CEO of Avnet ( AVT), the technology component supplier that just announced a 1.5% dividend after delivering a better-than-expected quarter.

Hamada said Avnet is seeing sequential improvement across all parts of this business, with operating margins expanding for three consecutive quarters. He said software and services have been outpacing hardware, but storage also remains a strong segment for Avnet.

When asked about the new dividend, Hamada said the dividend represents only 12% of trailing revenue and the time was right to reward shareholders, with sales in Europe and Asia picking up steam.

Cramer said Avnet has been a rocket ship and is not done going higher.

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 positions in JOY, KEY, TKR and VALE.

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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