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NEW YORK (TheStreet) -- This market may be rangebound with little hope of a sustained advance, Jim Cramer warned his Mad Money viewers Tuesday. It's not that earnings aren't terrific or that companies aren't doing a great job, but the mighty U.S. dollar may be a headwind that the markets just can't overcome.
Cramer said there are a number of things he looks at to determine which way the markets are heading. First is how the markets are reacting to earnings. Upside surprises from both Cracker Barrel (CBRL) and Dollar General (DG) were treated positively, so that was good news.
Then there's how the markets react to news flow. Today's strong auto sales were not met with overwhelming enthusiasm, a sign that investors are smart enough to know that strength in the U.S. does not translate to the rest of the globe.
There are also other key metrics, like interest rates and the price of oil, both of which have an effect on the markets on any given day.
But then there's the strength of the U.S. dollar, a single metric that now holds the fate of the entire market in its hands. Why is the dollar so important? Currencies can turn an excellent quarter into a mediocre one, just as it did with PVH (PVH), as CEO Manny Chirico told Cramer on last night's show.
Without some weakening in the dollar, Cramer concluded that the markets may have little hope of any sustained rally, as America's biggest companies will continue to fight a losing currency battle.
Is it time to start bottom fishing with the natural and organic supermarket stocks? Investors are starting to nibble at stocks like Sprouts Farmers Market (SFM), down 11.7% for the year, The Fresh Market (TFM), down 21%, and even Whole Foods Market (WFM), down 19%.
But as Mad Money viewers learned on last night's show, there's yet another competitor coming to the natural and organic space, and it's Target (TGT). Target, an Action Alerts PLUS holding, has a new focus on wellness and that means its shelves will be filling up with natural, organic and gluten-free items, taking even more wind from the sails of the rest of the cohort.
So while the natural food movement is expected to top $40 billion, with so many players, including Costco (COST), fighting for customers, gross margins can only continue to fall.
Investors should always avoid battlegrounds, Cramer concluded, and with Target out to win, the organic aisle at your grocery store has just gotten too risky.
Executive Decision: John Miller
For his "Executive Decision" segment, Cramer sat down with John Miller, president and CEO of Denny's (DENN), a stock that's up 66% over the past year but has fallen 10% so far in 2015.
Miller said that part of Denny's success is providing choices and balance on their menu. That's why Denny's is able to attract everyone from baby boomers to millennials to its restaurants, as they offer everything from breakfast to $10 entrees.
Miller also noted that customers enjoy Denny's "come as you are" environment, which is why the 62-year-old brand is in the process up updating many of its locations with a fresh but familiar interior.
When asked about Denny's social media initiatives, Miller said he's very proud of what his team has been able to accomplish, although he's not exactly sure how well it's working.
Cramer called Denny's both an amazing place to eat as well as a great place to invest.
Off the Charts
In the "Off the Charts" segment, Cramer went head to head with colleague Ed Ponsi over the charts of Chipotle Mexican Grill (CMG), Monster Beverage (MNST) and Lululemon Athletica (LULU), three high-flying stocks that have lost their mojo in recent months.
Looking at a weekly chart of Chipotle, Ponsi noted that after powering higher since 2013, the stock has been trading sideways since last summer, with the floor of support at $600 a share and a ceiling at $720. The chart's MACD momentum indicator is showing a negative divergence, while shares have just fallen below their 50-week moving average.
Ponsi's negative sentiment didn't deter Cramer, however. He suggested using any weakness as a buying opportunity.
A daily chart of Monster Beverage displayed a similar pattern, with sideways trading since March, a negative MACD and a dip below the 50-day moving average. Here too, Cramer saw opportunity and suggested buying on weakness or picking up some Coca-Cola (KO), which has a stake in the company.
Finally, Ponsi saw a bearish double-top formation in Lulu's chart, with a floor of support at $60 a share, a level that was tested again today. With a negative MACD, Ponsi was also bearish on Lulu. This time Cramer agreed, suggesting investors ring the register on Lulu.
Building the Future
In a special interview, Cramer sat down with Pierre-Andre De Chalendar and John Crowe, CEO and North American CEO, of Saint-Gobain, a Paris-based manufacturer of high-performance building materials that's celebrating its 350th anniversary.
De Chalendar said Saint-Gobain is very levered to construction and the global economy and he's seeing the strength in the U.S. just starting to spill over into Europe. When asked for specifics, he said the U.K., Nordic countries and even Spain are strong, while Germany remains uncertain and France is lagging.
When asked whether too much emphasis is given to Greece, De Chalendar said he thought so given the small size of the country. One surprise winner from the low interest rate environment has been India, which continues to invest in its infrastructure.
Turning to the U.S., Crowe said that our country needs to invest in its infrastructure because it is vital to our future success as a country. Many of Saint-Gobain's high performance glass and plastics insulate better and save more energy than the walls they're attached to, the pair noted.
Cramer said while Saint-Gobain only trades in Paris, it's a company that can provide an excellent read on the global economy.
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