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NEW YORK (TheStreet) -- Sometimes this wacky market has a mind all of its own, Jim Cramer admitted to his Mad Money viewers Tuesday after another down day in the markets. Stocks used to make sense, Cramer said, but now the whole world seems upside down.
Cramer explained that for his entire career in the markets one mantra has held true: When interest rates fall, stocks rally. That only makes sense because bonds are competition for stocks. Sso as bonds pay less, money inevitably flows into the stocks.
But that hasn't been the case over the past few weeks, and the markets have been convinced that lower rates mean the economy is headed for recession. That's why today, once again, interest rates fell and the markets crumbled along with with them.
Cramer said the recession theory simply isn't true, and it's far more likely the Federal Reserve's tapering is helping to keep rates low. But that won't stop the pundits, who cite weak retail numbers from Staples (SPLS) and Dick's Sporting Goods (DKS), along with poor numbers from Caterpillar (CAT) as the only proof they need that the economy is stalled.
Cramer noted that Caterpillar's construction equipment business was actually up 17% for the quarter and only its mining equipment caused its weak numbers. But the markets will overlook look that, he said, along with the robust sales at Home Depot (HD) and all other positive market news.
Sometimes the market is just stupid, Cramer concluded, but that doesn't mean investors need to follow it.
Off the Charts
In the "Off The Charts" segment, Cramer went head to head with colleague Carolyn Boroden over the charts of Apple (AAPL) and IBM (IBM), two stocks which Cramer owns for his charitable trust, Action Alerts PLUS.
Boroden has earned her stripes with Apple, Cramer said. She correctly called a bottom in the stock back in January at $535 a share. She also predicted a rally to $603 a share, a level which was reached today.
However, Boroden now sees Apple as vulnerable and prone to a short-term pullback after having retraced its prior move, a condition known as "extended." This is a strong pattern that was seen in Netflix (NFLX) after that stock's peak in March, and in LinkedIn (LNKD) more recently.
But while Apple is extended to the upside, Borodon felt IBM was extended to the downside. The stock met three Fibonacci ratios when it bottomed in February, she noted, and is now "extremely buyable."
Cramer said while he's a fan of both these stocks, he's keeping a close eye on Boroden's suggestions because she's been spot-on since the beginning of the year.
Executive Decision: Marc Benioff
For his "Executive Decision" segment, Cramer spoke with Marc Benioff, chairman and CEO of Salesforce.com (CRM), which today delivered a penny-a-share earnings beat on a 37% year-over-year rise in revenue.
Benioff said Salesforce is performing well on all of its metrics but he prefers to look at the operating cash flow number, which rose 67% year over year, as a gauge of the company's continued growth.
Benioff also noted Salesforce's growth stems from a host of industries including health care, retail and financial services. He said Salesforce has seen big wins with customers large and small.
When asked whether foreign exchange rates have affected earnings, Benioff said, overall, Salesforce sees a stable exchange rate environment and is not impacted by it in any meaningful way.
Cramer said the markets are still leery of high-growth names like Salesforce that don't offer dividends, but that doesn't mean the company isn't performing on its promises.
What the Heck?
In his "What the Heck?" segment, Cramer dove into the curious case of Hanes Brands (HBI), the apparel maker whose stock is up 16% so far in 2014 while the rest of its industry has struggled to maintain its footing. The stock has more than doubled, including dividends, since Cramer got behind the company 14 months ago.
Cramer said Hanes deserves every point of its share increase and more because it is a consistent operator that delivers on its promises. The company delivered an 18-cents-a-share earnings beat, saw a 180-point increase in its gross margins and raised its guidance, all in a quarter where the weather wiped out most of retail.
Cramer said Hanes is designed for profits. Its bedrock brands Hanes, Champion, Playtex and Maidenform all sell at premiums compared to private label alternatives and the company owns most of its supply chain, meaning it can innovate and scale up new products like no one else.
In addition to such innovations as tagless shirts, Cramer said Hanes is pushing hard into the red-hot athletic apparel market with its Champion brand. Given that future acquisitions are possible, Cramer said Hanes deserves far more than the 16 times earnings multiple the stock currently fetches.
In the Lightning Round, Cramer was bullish on GW Pharmaceuticals (GWPH), Pioneer Natural Resources (PXD), Aetna (AET), Popeyes Louisiana Kitchen (PLKI), Greenbrier Companies (GBX) and Trinity Industries (TRN).
No Huddle Offense
In his "No Huddle Offense" segment, Cramer posited that the economy really isn't as horrible as many are making it out to be, and there are bright spots in even the weak earnings from Staples, Dick's Sporting Goods, TJX Stores (TJX) and Urban Outfitters (URBN).
Cramer said that while Dick's disappointed, it did call out footwear and apparel as positive. Meanwhile, Urban saw disappointing sales at its flagship stores but saw sizable gains in its other brands. Staples was weak but that weakness didn't carry over to rival Office Depot (ODP). Finally, there's TJX, which Cramer said was a true disappointment. But then again, when J.C. Penney (JCP) posts 6% gains in same-store sales, those sales have to come from somewhere.
But all those earnings mask the important news, Cramer concluded: robust sales at Home Depot, a company that truly has its finger on the pulse of the American homeowner. If Home Depot is doing well, then so, too, is the American economy.
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-- Written by Scott Rutt in Washington, D.C.
To email Scott about this article, click here: Scott Rutt