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NEW YORK (TheStreet) -- Snap judgments lead to bad decisions and bad decisions lead to big losses, Jim Cramer told his Mad Money viewers Tuesday, as he once again urged investors not to trade off of headlines alone.

Case in point: JPMorgan Chase (JPM - Get Report), which reported a magnificent quarter, only to see its shares trade initially lower as the headlines cautioned that the company's gains were only from tax benefits. Taxes played a part, Cramer admitted, but once investors truly learned about this terrific quarter, shares shot up 1.4%, as they should.

The same thing happened to another bank, Wells Fargo (WFC - Get Report), a stock Cramer owns for his charitable trust, Action Alerts PLUS. Wells traditionally trades on its net interest margin metric, but this quarter, early traders decided to focus on revenue growth, only to be blindsided as the net interest margin bulls sent shares soaring.

More mistakes were made with Johnson & Johnson (JNJ - Get Report), another Action Alerts PLUS holding, which beat on both earnings and revenue but still suffered from paltry growth. Early traders sent shares higher, only to get overwhelmed by the bears later in the day who realized that J&J's problems were far from fixed.

Still need more proof? Pundits said oil would plummet on any deal with Iran but instead they rallied. Why? Because the markets have already been sliding lower in anticipation of a deal in a classic "sell the rumor, buy the news" scenario.

"Don't trade on headlines," Cramer concluded, "Know what metrics matter" and which ones don't.

Not Excited by Energizer

Now that Energizer (ENR - Get Report) has successfully spun off its personal care division as Edgewell Personal Care (EPC - Get Report), are these two new smaller companies worth investing in? Cramer said he thinks not.

Energizer first announced the spinoff of its personal care products, which includes such brands as Shick, Edge, Playtex and Banana Boat, back in April 2014 and since then shares have rallied 19%, as they often do when a company announces a breakup.

But while the two companies are indeed smaller and easier to understand and model, Cramer noted that Edgewell says 2016 will be a transition year, and the company doesn't expect growth to resume until 2017. That's a long time to wait for a stock that trades at 26 times earnings.

Then there's the remaining Energizer, which is now a pure play on batteries and flashlights. Batteries, at least the kind Energizer is known for, remains in secular decline. Sales fell 3.4% in 2014 and management expects that trend to continue.

That makes neither of these resulting entities worth investing in, according to Cramer.

Dog Stocks Redeemed

Every dog has its day, as they say, and the same applies for the stock market, where even the most hated of stocks can sometimes catch a rally.

That was certainly the case with Micron Technology (MU - Get Report), the commodity memory maker that was down 40% for the year before catching a takeover bid that sent shares up 11% today. That news was enough to send other beleaguered players, like Sandisk (SNDK) up 3.3% and Seagate (STX - Get Report) up 2.8%.

Then there's Urban Outfitters (URBN - Get Report), the once loved, then hated, but today loved again thanks to an upgrade that rallied shares by 2.4%.

Finally, it was a good day for the much maligned offshore oil companies like Diamond Offshore (DO - Get Report), Transocean (RIG - Get Report) and Ensco (ESV - Get Report), all of which rallied on a positive news day.

Are any of these stocks a buy? Not according to Cramer, but they could at least see a second day of strength tomorrow.

Should You Buy eBay?

With eBay (EBAY - Get Report) finally set to spin off PayPal (PYPLV) this Monday, is it time to start buy, buy, buying?

Shares of eBay are already up 7% since the company first announced the split back in Sept 2014, but Cramer said PayPal, when has already begun trading on a "when issued" basis under the ticker "PYPLV," still has a lot of room to run.

PayPal is already a titan in the online payments arena with over 165 million users in 200 markets around the globe. The company processed $235 billion in transactions last year and is growing revenues in the high teens.

Analysts covering the soon-to-be company estimate PayPal's earnings between $1.10 and $1.25 a share. Add to that a conservative 15% growth rate and Cramer predicted $1.36 a share in earnings for PayPal in 2016.

This already puts PayPal at a premium multiple of 27 times earnings when compared to Visa (V - Get Report) or MasterCard (MA - Get Report), but that premium is well deserved, Cramer noted, which is why he sees shares heading to $45 or $50 a share.

Lightning Round

In the Lightning Round, Cramer was bullish on CVS Health (CVS - Get Report), Rite Aid (RAD - Get Report), Walgreens Boots Alliance (WBA - Get Report), Harman International (HAR), Marathon Petroleum (MPC - Get Report), Valeant Pharmaceuticals (VRX), Allergan (AGN - Get Report) and AT&T (T - Get Report).

Cramer was bearish on LendingClub (LC - Get Report).

Chart Week: Apple

In the second installment of "Chart Week" segment, Cramer sat down with Ed Ponsi over the chart of Apple (AAPL - Get Report), an Action Alerts PLUS holding.

Ponsi said there's a saying in technical analysis that resistance eventually becomes support, and that seems to be happening with Apple -- the resistance from late 2014 is now the support level of mid 2015.

Ponsi also noted on the daily chart of Apple that the relative strength indicator just flashed its first buy signal in two years.

Turning to a longer-term weekly chart, Ponsi said Apple's healthy uptrend remains intact and he feels that after consolidating for the past few months, $140 a share could be the next leg higher.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

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At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL, AGN, J&J, MA, WBA and WFC.