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NEW YORK ( TheStreet) -- It's a fact, the vast majority of the stocks in the S&P 500 benefit from lower oil prices, Jim Cramer proclaimed to his Mad Money viewers Tuesday. Yet, money managers choose to make things complicated, Cramer continued, finding all sorts of reasons to dislike the continued great news.
Imagine, if you will, that the U.S. government gave everyone a $2,000 tax rebate check, Cramer posited. That would be seen as terrific news, right? Yet, when the average American consumer fills their gas tank twice a week at today's dramatically lower gas prices, which also equates to a $2,000 savings, that's seen as bad news? The tax rebate is a one-time event, lower gas prices is an annuity that keeps on giving, Cramer continued.
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While the oil producers themselves may not benefit from continued lower prices, there are many sectors of our economy that do. The transports certainly appreciate lower fuel prices, as do the utilities, which use a ton of oil and gas. Consumer packaged goods are huge consumers of energy as well.
Then there are the consumer-related sectors. Restaurants do better when consumers have more money in their pockets, as do the retailers. Cramer said when you add all of these positives together, they far outweigh the pain being felt by the energy stocks.
The big money managers are overthinking things, Cramer concluded, but the smart money is buying, not selling, our newfound windfall.
Off the Charts
In the "Off The Charts" segment, Cramer went head to head with colleague Carolyn Boroden over the charts of Twitter (TWTR) , Facebook (FB) and Google (GOOGL) , three stocks Cramer owns for his charitable trust, Action Alerts PLUS.
Looking at a daily chart of Twitter, Boroden noted a strong floor of support between $38.41 and $40.24 a share. Below those levels, the next floors don't appear until $29 and $22 a share. If Twitter can hold above $40.24, Boroden felt shares could rally to as high as $60. However, strong buy triggers have not yet appeared and she was not yet sure which way the stock would turn.
As for Facebook, Boroden felt this was a buyable pullback, with support between $71.77 and $72.69 a share. Below that, the next floor was close by at $70.32, which represented Facebook's October lows. As for upside, Boroden felt $83 to $86 a share was possible.
Finally, Boroden saw Google's floor between $495 and $509 a share and felt shares could chug higher to between $633 and $679 a share if they could pull through short-term resistance between $570 and $586 a share, making her cautious in the short term.
Cramer said he was in agreement with Boroden's analysis, saying that Facebook had the best growth while Google had the cheapest growth. As for Twitter, Cramer said the company has a great product but needs new leadership.