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Cramer called this new relationship between bonds and stocks "moronic," saying higher interest rates are bad for consumers and bad for the markets, not the other way around. Yet, those who fear recession continue to think low interest rates will take us there and thus were celebrating on today's rise in rates.
Just as the markets took its cues Tuesday from the weak sales of Staples (SPLS) and Dick's Sporting Goods (DKS), today, as if with amnesia, the markets celebrated strong earnings from Tiffany (TIF) and Target (TGT).
Cramer said there's simply no data suggesting that a recession, or even a slowdown, is imminent. Lowe's (LOW) confirmed what Home Depot (HD) said earlier this week -- sales have been robust in May, and that's a good sign for all.
Cramer said the bears will eventually be trampled by the bulls. Until then, more upside-down days like today are likely.
In what has become one of the most amazing moves he's ever seen, Cramer said the North American energy revolution continues to deliver. Fueled by rising oil prices and perpetually rising production, the oil shale renaissance has been nothing less than spectacular.
Oil shale drilling has become more profitable than even the industry could have imagined just two years ago, Cramer continued. While it may only cost $2.5 million to drill a conventional oil well, the $7.5 million price tag of a horizontal well is averaging $8.4 million in cash flows in just its first year alone.
Cramer said EOG Resources (EOG) and Anadarko Petroleum (APC), a stock he owns for his charitable trust, Action Alerts PLUS, remain his two favorites among the group. Anadarko in particular, he noted, is worth at least $120 a share on its production growth alone. The company is also a ripe takeover target for larger drillers.
Executive Decision: Matt Maloney
For his "Executive Decision" segment, Cramer sat down with Matt Maloney, CEO of GrubHub (GRUB), the online takeout service that came public six weeks ago. For its first quarter as a publicly traded company, GrubHub posted a five-cents-a-share earnings beat on a 50% jump in year-over-year revenue.
Maloney explained that GrubHub has a two-sided model. The company has over 30,000 restaurants in 700 cities on its platform and makes a commission on every order placed. He said that for restaurant owners and diners alike GrubHub is replacing the paper takeout menu.
While the company's corporate business is picking up steam, Maloney said the consumer market is far and away the biggest opportunity, which is why the company continues to focus on the dining and is constantly optimizing its app to meet customers needs.
Cramer said the GrubHub story remains compelling. Now that the stock has fallen from 28% off its first-day highs, it's worth doing some homework.
Executive Decision: Steve Hazy
In his second "Executive Decision" segment, Cramer sat down with Steve Hazy, chairman and CEO of Air Lease Corporation (AL), the aircraft leasing company that posted a seven-cents-a-share earnings beat on a 28% rise in revenue when it last reported on May 8. Shares of Air Lease currently trade at 14 times earnings.
Hazy said it's an exciting time for the airline business, a business that doubles in capacity every 15 years. He said with many planes lasting 25 to 30 years, there's a huge replacement cycle afoot and Air Lease is right in the sweet spot.
Hazy explained that decades ago only about 10% of airlines' planes were leased, but today that number is closer to 50%. With new aircraft costing upwards of $150 million, many airlines are finding leasing to be an affordable and predictable model.
Air Lease buys planes in bulk from the manufacturers at deep discounts, Hazy explained, which makes his company as much a marketing and distribution company as it is a leasing company. He said Air Lease is well capitalized, has high profit margins and is the fastest growing in its industry.
Cramer said he really liked the Air Lease story because the company is a niche player not many people know.
Am I Diversified?
In the "Am I Diversified?" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets.
Cramer asked "what's not to like?" about this well-diversified portfolio.
Cramer said this portfolio was also properly diversified.
Cramer said he'd consider GT Advanced Technologies a speculative stock and therefore would bless this portfolio as diversified.
Cramer ended the round by also blessing this portfolio as diversified.
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-- Written by Scott Rutt in Washington, D.C.
To email Scott about this article, click here: Scott Rutt