Jim Cramer's 'Mad Money' Recap: Ignore the Bears

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NEW YORK ( TheStreet) -- Don't let the bears drag you down, Jim Cramer said on "Mad Money" Tuesday. Institutional investors, or "smart money," are jealous of retail investors as stocks keep going higher. The pros hate what's happening in this market because amateur investors are making it look easy.

Amazon.com ( AMZN) is despised by the intelligentsia even as it hits another record high. Cramer sees tremendous jealousy about the company's go-for-broke business model rewarded by its stock price, even as it fails to turn a profit.

What's really propelling Amazon? The weather. With the media frenzy over bad weather engulfing the East Coast, people are shut in and shopping online. The retail investors buy what they like and Amazon is going higher. How can that be wrong? Cramer asked. The goal is to make money, not feel smart.

In the same vein, Cramer looked at Netflix ( NFLX). People fenced in by the weather aren't going to the movies -- they're streaming at home, he pointed out. Retail investors enjoy the Netflix product and buy Netflix's stock. "We are in a buy-what-you-like environment," Cramer said, and it is time to acknowledge that trend. Netflix stock is up more than 280% in 2013.

Nothing freaks out institutional investors more than when people are buying warm weather clothing companies in the offseason, Cramer said. Rallies for VF Corp. ( VFC) and Deckers Outdoors ( DECK) drive the smart guys crazy, Cramer said. Could it be the "dumb money" is buying because these stocks are attractively priced?

Who Do You Trust?

Who do you trust in today's market? Look at Hain Celestial ( HAIN) for an example of how stocks with terrific stories still face pressure in today's market. Look at retail giants like Costco ( COST), a holding in Cramer's charitable portfolio Action Alerts PLUS. Costco thinks organics are for real and continue to embrace companies like Hain.

Cramer noted a recent article in Barron's that accused Hain of making acquisitions to cover problems in its earnings. Should Hain be making more acquisitions at this point? Cramer asked. It's time to dig deeper into the organic food sector, he said, but as far as growth is concerned, Hain is unimpeded.

Take Herbalife ( HLF), Cramer said, giving another example. Hedge fund guru Bill Ackman is engaged in a war to the death over this company, one he's willing to take "to the ends of the earth," Cramer said.

Ackman thinks Herbalife is a Ponzi scheme, a business that isn't about selling anything at all, merely recruiting others to recruit others with nutritional supplements a total sideshow, Cramer said.

Meanwhile, last month Deutsche Bank downgraded Alcoa ( AA) from a hold to a sell when the stock was at $8.11 per share, unleashing a vicious $5.50 price target, Cramer said. Deutsche Bank didn't think Alcoa's efforts to make itself into less of a commodity play were panning out.

Cramer said the analyst was wrong about Alcoa's sensitivity to the price of aluminum and the dollar, the stock is up 18% since the downgrade. This downgrade was an indictment of CEO Klaus Kleinfeld's ability to turn the company around.

Well, yesterday, Goldman Sachs upgraded Alcoa to a buy from a neutral, bestowing an $11 target on the company in recognition of Alcoa moving away from being a pure aluminum company in accelerated fashion, Cramer said. His advice: buy Alcoa now.

The Apple of Cramer's Eye

You knew the move in Apple ( AAPL) would happen when no one was paying attention, Cramer said. The stock price rose 1.84% by the close today. That's how big moves start, according to Cramer. No fanfare. Under the radar.

Recent convention wisdom has seen Apple -- another Action Alerts PLUS holding -- going from being a failed new product store to being a failed financial engineering store in record time, Cramer said.

It got so bad for Apple that even when it reported a better-than-expected fourth quarter, with earnings and revenue that beat Wall Street estimates, analysts went negative. They asked how CEO Tim Cook had lost China. They wondered why Apple wasn't buying back more stock. Bearishness abounded despite Apple's fourth-quarter EPS of $8.26 on the back of $37.5 billion in revenue.

Cramer said the stock is moving now not because of financial engineering, but real engineering. Apple is creating new products -- more software than hardware at the moment -- and people love the company's direction. Just like old times, the stock is rallying on the new Mavericks and iOS 7 operating systems, leapfrogging the purportedly invincible Samsung. Tablets are exceeding anything imagined a year ago, Cramer said.

As a result, retailers are starting to report that it is beginning to look like an Apple Christmas, Cramer said. The run has staying power.

It's probably the cheapest stock on the Nasdaq 100, Cramer said. It offers a decent dividend and it can go higher.

Cramer's bottom line: Apple can end up one of the best places to be going into the home stretch. A gaining-momentum story with a low price-to-earnings multiple, all without Wall Street analysts' support.

Lightning Round

In the Lightning Round, Cramer was bullish on Tesoro ( TSO), Mattel ( MAT), Delta Air Lines ( DAL), Johnson & Johnson ( JNJ), EOG Resources ( EOG)

Cramer was bearish on Eli Lilly ( LLY) and Giant Interactive ( GA).

Off the Charts

With oil prices down, Cramer asked, is it time to buy gold? Compared against oil, by any measure gold is extremely oversold.

"If you remember after gold plummeted in June, it rapidly bounced back," Cramer said, noting that analyst Carly Garner thinks we could see a similar move now. That the chart appears to make a double-bottom "only makes her more confident."

"Even if we haven't reached the lows for gold yet, Garner thinks that any pullback could be bought here and she could see the precious metal at $1,364 before it runs into any resistance," he added.

If this is the case, Cramer said, you want SPDR Gold Trust ( GLD). Oil could have a bigger slide before it recovers, and gold might be a great buy at this point.

Executive Decision: Mark McLaughlin

Compared to the traditional cyber-security place, Palo Alto Networks ( PANW) ends up saving its clients money, Cramer said. The company uses next-generation firewall technology to secure growing networks.

Palo Alto was up big today, based partly on 73% first-quarter 2014 revenue growth in cloud-based software, topping estimates on revenue growth of 49% year-over-year.

CEO Mark McLaughlin said that for people using their hardware products, still the vast majority of the enterprise market, Palo Alto has the best technology with its next-generation platform. He sees a move into the cloud from both public and private customers, which you can see in results. The company has more than 14,500 customers in 120 countries.

Cramer sees cybersecurity as a big business. Palo Alto Network's clients include SanDisk ( SNDK), Qualcomm ( QCOM) and the state of Pennsylvania.

Palo Alto Networks has the best technology and the cloud-based software-service model, Cramer said. That's the way to win.

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

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-- Written by Chris Sahl in Boston.

At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL, COST, JNJ 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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