Jim Cramer's 'Mad Money' Recap: Where Have All the Sellers Gone?

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.

NEW YORK (TheStreet) -- "I like to buy stocks when they're on sale and sell them when they're overpriced," Jim Cramer told his "Mad Money"  viewers Tuesday as he pondered where all of the sellers have gone.

Cramer said there were plenty of sellers sending shares of Google (GOOG), a stock he owns for his charitable trust, Action Alerts PLUS, lower over the past two days. Shares fell $18 Friday and another $21 Monday -- Cramer said that was the time to buy, at the lows. Google shares rebounded nearly 2% in today's session.

Netflix (NFLX) was another great stock that was put on sale, said Cramer, falling nearly $15 at its lows. He said Amazon.com (AMZN) is yet another stock that's perfect for buying on a pullback.

And then there's Apple (AAPL), another Action Alerts PLUS holding. Last quarter, Apple gave guidance and on Monday the company said it beat that guidance. Is it the company's fault it didn't sell the 56 million iPhones analysts were expecting? They never said they would. Apple also didn't offer guidance on China, or announce any new products, but is it their fault that analysts were hoping they would?

Apple is still a great company, Cramer said, as are all of these names. Yet, all of these stocks were put on sale by the markets, and the time to buy them was yesterday at the bottom.

Buying on weakness is how money is made, Cramer concluded.

Executive Decision: Scott Wine

For his "Executive Decision" segment, Cramer spoke with Scott Wine, chairman and CEO of Polaris Industries (PII), makers of snowmobiles and ATVs. Shares of Polaris are up 51% since Cramer first got behind the company in October 2012, but are now off $18 on disappointing 2014 guidance and overall market weakness.

Wine said Polaris had a great fourth quarter with sales up 20%, which translated to a penny-a-share earnings beat. He admitted the consumer is under increasing pressure, but Polaris plans to combat that pressure by continuing to innovate.

Wine said Polaris never rests on its existing products and relies on innovation to continue its market leadership position. This year, Polaris will be introducing new products in every category, he noted.

When asked about growing inventories at the dealer level, Wine explained that with a growing product line, dealers are carrying more inventory and, in many cases, wish they had more, not fewer, items in stock. That said, Polaris is still working hard to manage inventories better to make sure dealers have what they need when they need it.

Cramer urged investors to read the reports Polaris puts out because the company lays out an honest depiction of its business, outlining both the good and the bad, making sure there are never any surprises.

Off the Charts

In the "Off The Charts" segment, Cramer went head to head with colleagues Carly Garner and Carolyn Boroden over the direction of the overall markets.

Garner looked at a long-term monthly chart of the S&P 500 and noted that according to the RSI, or relative strength indicator, the index has been in overbought territory for quite some time, signaling the markets have moved too far, too fast. The last time the markets saw peaks this high were right before the 2007 and 2001 downturns. Ouch.

Turing to a daily chart, the S&P has been consistently seeing a floor of support at its 100-day moving average, which is now $1755, or 2% lower from current levels. Garner noted if the S&P doesn't hold that level, things could get ugly, fast.

Boroden offered a different take, noting that with the markets near a floor of resistance, the rally could resume soon. But, she also cautioned that the S&P must clear resistance at $1823 or that rally will vaporize.

Boroden also looked at the Dow Jones Industrial Average, noting that the Dow could see a 900-point decline, while the tech-heavy Nasdaq is also signaling overbought conditions also not seen since 2008, 2001 and, yes, 1987.

Cramer said these charts should tell investors the market technicians will be ready to sell at a moment's notice, so they need to be prepared for increased selling on the next down day.

Lightning Round

In the Lightning Round, Cramer was bullish on Pfizer (PFE), Bristol-Myers Squibb (BMY), Acadia Healthcare (ACHC), American States Water (AWR), Aqua America (WTR), Agilent Technologies (A) and SandRidge Energy (SD).

Cramer was bearish on Arena Pharmaceuticals (ARNA) and Windstream (WIN).

Cramer on the Gridiron

With the Super Bowl just days away, Cramer once sat down with Eric Grubman, executive vice president of the National Football League, to talk about the business of football.

Grubman said that only the NFL, with its hundred of millions of fans around the world, is able to move the needle for its advertisers and partners. He said sponsors such as Procter & Gamble (PG) are seeing a lot of success with their NFL affiliations.

Grubman said the rise of fantasy football has also helped to bring the sport to thousands of new families and is bridging generational gaps and appealing to the statisticians in all of us.

When asked about charges the NFL doesn't pay its fair share of taxes, Grubman responded that the NFL does pay taxes, but it does so when the money is distributed to the teams. He also noted that everything the league does is fully audited.

Finally, when asked whether there is any chance of a power outage at the game, Grubman said that the stadium is ready and the lights will be on.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer told viewers that in today's market "lumpy" equals sell.

Apple may have beaten its estimates but iPhone sales were, well, lumpy, and that led to shares selling off hard. Seagate (STX) has been doing everything right, buying back stock and boosting its dividend, but sales were also lumpy, plunging shares 11.5%.

Cramer said investors have no tolerance for inconsistency, which is why shares of Ethan Allen (ETH) have floundered because its sales are up one month, down the next. Then there's all of China -- no consistency there either.

What has no lumps? How about United Technologies (UTX) or Honeywell (HON)? Cramer said momentum is building at both those companies. DR Horton (DHI) is another standout, with its share up 9%, with no lumps to be found.

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

To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.

-- 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 AAPL, GOOG and HON.

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."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor TheStreet.com, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

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.

If you liked this article you might like

Why Stocks Fell (And Why All Is Not Lost): Market Recon

Why Stocks Fell (And Why All Is Not Lost): Market Recon

Why Facebook's Stock Is Not Rallying Like the Rest of These Big Tech Names

Why Facebook's Stock Is Not Rallying Like the Rest of These Big Tech Names

3 Hot Reads From TheStreet's Top Columnists

3 Hot Reads From TheStreet's Top Columnists

Bonus White Papers: The FAANGs

Bonus White Papers: The FAANGs

Apple Should Rally 11% From Here: Bonus White Paper

Apple Should Rally 11% From Here: Bonus White Paper