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Cramer said that for many sectors and companies, the markets are working as they should, sending stocks higher as estimates rise and lower on disappointments. Macy's (M) and Home Depot (HD), both Action Alerts PLUS holdings, saw their shares rally on disappointments, but no one expected these retailers to do well, which made "less bad" good enough.
On the other hand, the markets continue to be irrational with stocks like Netflix (NFLX), LinkedIn (LNKD) and Tesla Motors (TSLA), said Cramer. He said Netflix needs a serious rest, while Tesla only gets more and more concerning.
"I'm not a bear," Cramer concluded, but he is concerned with these irrational areas of the market. If the irrational takes over from the rational, he said, then we'll have a serious problem.
A Two-Track Market
We have a two-track market, Cramer told viewers. On one track there are the rational stocks, while on the other there are stocks like Tesla, which on Tuesday rose over 13% after an analyst doubled his price target on the electric car maker from $153 to $320 a share.
Cramer said the analyst making the call has indeed been right about Tesla thus far, but in order to meet these lofty valuations Tesla would need to expand battery production at a near-mythological pace.
Cramer said this bold Tesla call reminded him of the "dot-bomb" era, when on Dec. 20, 1999, an analyst made a bold call on Qualcomm (QCOM), raising his target from $500 to $1,000. Shortly thereafter, the Nasdaq collapsed, and it took Qualcomm over 10 years to see its stock recover to that $500 level.
The markets are different now, Cramer noted, but the Nasdaq is approaching record highs again. With the exuberance starting to build in names like Tesla, Cramer said it's only prudent to stay focused.
Executive Decision: Patrick Doyle
For his "Executive Decision" segment, Cramer once again spoke with Patrick Doyle, president and CEO of Domino's Pizza (DPZ), a stock that's returned over 700% since Cramer first got behind the stock four years ago. Domino's just announced a two-cents-a-share earnings beat on a 5% rise in revenue and a 3.7% increase in same-store sales.
Doyle touted his company's digital offerings as one of the primary growth drivers. He said ordering digitally is faster and more accurate. Since Domino's saves more customer profile information online, the brand can expand onto more and more screens.
Doyle was also bullish on the capital markets, saying that for the first time since 2006 smaller entrepreneurs can borrow money and buy their first or second franchise, a very positive sign for Domino's.
International markets also continue to be a big opportunity for the pizza giant, yet despite all the investments the company is making Domino's still has the free cash flow for increased dividends and share repurchase programs.
Cramer once again reiterated his recommendation of Domino's, reminding viewers that Doyle is one of his "Bankable 21 CEOs" in his latest book, Get Rich Carefully.
In the Lightning Round, Cramer was bullish on Palo Alto Networks (PANW), Kinder Morgan Energy Partners (KMP), Consolidated Edison (ED), Dominion Resources (D), Vodafone Group (VOD), Verizon (VZ), Schlumberger (SLB), JPMorgan Chase (JPM), Plains All American Pipeline (PAA) and Compugen (CGEN).
Executive Decision: Phil Fernandez
For his second "Executive Decision" segment, Cramer sat down with Phil Fernandez, chairman and CEO of Marketo (MKTO), the cloud-based marketing software purveyor that's seen its shares rise 85% since its initial public offering last summer.
Fernandez said Marketo is investing heavily into its future, but fortunately, since most of its revenue is subscription-based, once the company has acquired a customer it reaps the rewards quarter after quarter.
When asked about the capabilities of the Marketo platform, Fernandez explained that by using analytics from stores, online and social, Marketo tailors email programs that establish a personal one-on-one connection between brands and customers. Marketo is rapidly becoming the standard for marketing organizations, he said, and it integrates well with other platforms like Salesforce.com (CRM).
Finally, when asked about the size of the market opportunity, Fernandez said the market is vast and Marketo is only just getting started. Cramer said he remains excited about this new cloud-based newcomer.
Off the Charts
In the "Off The Charts" segment, Cramer went head to head with colleague Bob Lang over the direction of U.S. Treasuries and the effect on the markets.
Lang looked at the CBOE Interest Rate 10-Year (TNX) and noted a bullish inverse head-and-shoulders pattern, along with a bullish crossover in the MACD momentum indicator. He noted the last bullish crossover was in November, when rates spiked sharply, causing him to predict a 2.7% to 3.0% move in yield this time around.
Looking at a weekly chart, Lang noted a pattern of higher highs and higher lows, while in the CBOE Interest Rate 5-Year (FVX) chart, he saw a bullish "W" pattern.
Cramer said Lang's analysis looks correct and bond yields could be on the way higher. That would be a plus for the financials, but will also send the markets overall lower in the short term as they adjust to a new higher-rate environment.
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-- Written by Scott Rutt in Washington, D.C.
To email Scott about this article, click here: Scott Rutt