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NEW YORK ( TheStreet) -- It's time to dust off your 2012 game plan, Jim Cramer said on Mad Money Tuesday. The markets are once again divided into two groups -- companies that are impacted by European events and those that aren't.
Yes, it's 2012 all over again, Cramer told viewers. Investors are dumping the industrial and technology stocks in favor of anything domestic, including health care, transportation, restaurants and entertainment. With the U.S. dollar continuing to strengthen, the banks and the consumer packaged goods stocks continue to slide, but names like Twitter (TWTR) , a stock he owns for his charitable trust, Action Alerts PLUS, GoPro (GPRO) , Tesla Motors (TSLA) and Netflix (NFLX) will likely be go-to names for money managers for the rest of the year.
Focus on domestic strength, Cramer concluded, and protect your gains by avoiding anything with exposure to Europe.
Stocking Up on Vitamins
There are too many bricks and mortar stores in America, Cramer told viewers, which is why the markets have been rewarding companies making acquisitions, merging to take out their competition and preserve their growth and margins.
That's why Cramer said he's a big fan of a recent report suggesting GNC Holdings (GNC) will acquire its rival, Vitamin Shoppe (VSI) . He said these two chains are suffering at the hand of intense competition, but a combined company would indeed be a thing of beauty.
Cramer said according to his own research, a full 100% of Vitamin Shoppe locations are within five miles of a GNC location. By shutting down half of those locations, a combined company could cut costs in half and still preserve almost all their sales. Even just merging back-end operations would be a huge win for GNC.
Cramer's Fantasy Team: Quarterback
Football season is almost upon us, and that means all week Cramer is drafting his "Fantasy Stock Portfolio" for 2014. In his quarterback position this year, Cramer drafted Home Depot and Under Armour (UA) , two consistent stocks he said know how to put numbers on the board.
Home Depot just delivers and delivers, Cramer said. While its 2200 locations were hurt by weak housing, that's no longer the case. Today's news of a possible credit card breach will not deter this hot stock, he continued, and has created a terrific buying opportunity. Home Depot has strong leadership, a generous stock buyback program and, most important, is almost all domestic and not tied to the crisis in Ukraine.
Then there's Under Armour, another Cramer fave and stealth technology play that also continues to deliver quarter after quarter. In fact, the company has posted 17 quarters in a row with growth over 20%. Shares do trade at a lofty 58 times earnings, but Cramer noted that's what investors need to pay to own such a beloved brand.
Off the Charts
In the "Off The Charts" segment, Cramer went head to head with colleague Dan Fitzpatrick over the charts of Tesla Motors, Facebook (FB) and J.C. Penney (JCP) . Facebook is currently an Action Alerts PLUS holding.
Fitzpatrick noted that Tesla displays a classic cup-and-handle chart formation thanks to a six-month consolidation period. He sees the stock possibly hitting between $355 and $389 a share during its next leg higher, calling the stock a raging buy.
Facebook also displays a cup-and-handle pattern after its peak in March. Fitzpatrick said here the target could be $100 a share, or 33% higher than where it trades today. Given the stock's floor of support at its 50-day moving average, there is little downside risk, according to Fitzpatrick.
Finally, there's J.C. Penney. He said the stock is still heading to $15 a share and he remains a strong buyer, as is Cramer.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer reminded viewers that when it comes to America's energy revolution, it's about a lot more than just the production companies. It's also about those that use energy, like chemical companies; those who are working towards exporting energy, like Cheniere Energy (LNG) , and, most of all, those that transport energy, like Kinder Morgan (KMI) , also an Action Alerts PLUS favorite.
Cramer said the need to transport energy from where it is to where it's needed is a huge business, as evidenced by Kinder Morgan bringing all its assets under one roof as well as the recent announcement of Plains All American (PAA) building a new pipeline from the Bakken shale into Tennessee. There's also today's announcement Dominion Resources (D) is spending up to $5 billion to bring natural gas from the Marcellus shale into Virginia.
The time to own an oil pipeline stock is now, Cramer concluded. These deals will continue to be be wins for investors.
To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.
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-- Written by Scott Rutt in Washington, D.C.
To email Scott about this article, click here: Scott Rutt