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NEW YORK (TheStreet) -- The bears have had their run of the markets of late, Jim Cramer told his Mad Money viewers Tuesday. But today the bulls were once again in charge and Cramer explained why.

The market's rally began with China, Cramer told viewers, after Baidu.com (BIDU - Get Report) reported what was arguably the worst quarter of 2015, sending shares plummeting by 15%. That news helped the Chinese markets open lower, allowing them to strengthen throughout the day.

Then there was oil, which also opened lower only to find its footing later in the afternoon. This was coupled with FANG, Cramer's acronym for Facebook (FB - Get Report), Amazon.com (AMZN - Get Report), Netflix (NFLX - Get Report) and Google (GOOGL - Get Report), the former market leaders that finally took a breather, allowing other earnings to shine through.

Some of those strong earnings included Cummins (CMI - Get Report), which surprised to the upside, sending shares up 3.3%, while Caterpillar (CAT - Get Report) announced a stock buyback, news that rallied shares up 3.2%. In the housing sector, shares of D.R. Horton (DHI - Get Report) rose 3.1%, while Masco (MAS - Get Report) soared 10.6%.

Was today a one-hit wonder? Perhaps, Cramer admitted, especially with the Federal Reserve chief speaking after the central bank's meeting tomorrow, followed by oil inventories and rig counts later in the week. But at least for today, the setup allowed good news to finally matter again.

Executive Decision: David Demshur

For his "Executive Decision" segment, Cramer spoke with David Demshur, chairman, president and CEO of Core Labs (CLB - Get Report), the company that helps oil drillers squeeze more oil from existing wells. Core Labs recently reported a 4-cents-a-share earnings beat with better-than-expected guidance. Shares of Core Labs were up 7.3% in trading today.

Demshur said his company's strong performance stems from the fact that in areas like the Gulf of Mexico, even a 1% increase in recovery rate from a well translates into $6 billion in revenue for drillers.

When asked about the direction of crude oil prices, Demshur noted that in the U.S., shale oil wells deplete much faster than traditional wells, which is why he predicts production will fall from 9.5 million barrels a day to nine million by the end of the year. Meanwhile, in the Middle East there is little to no excess capacity remaining.

All of that adds up to $70 or $80 a barrel oil, Demshur concluded, and a sharp recovery from current levels.

Off the Charts

In the "Off the Charts" segment, Cramer went head to head with colleague Marc Sebastian over the health of the markets as seen by the CBOE Volatility Index (VIX), better known by its ticker symbol, the VIX.

Sebastian noted that at the height of the Greek crisis three weeks ago, as the S&P 500 was hitting its lows, the VIX was at its highs, as it should be given the typically inverse nature between stocks and the fear index.

However, Sebastian also noted that during the period between June 30 and the Greek referendum on July 5, the VIX stayed at levels over 16, yet today, despite the fears over China, the VIX is well below that 16 level.

Sebastian felt that the S&P, which is already oversold, could have more room to run and could see new all-time highs if the Fed holds off on interest rates and the Chinese markets can decline in a slower, more managed fashion.

More Off the Charts

In a second "Off the Charts" segment, Cramer checked in with colleague Tim Collins over the Chinese markets, to see just how big a problem China may be for the global economy.

Collins looked at a daily chart of the Shanghai composite index, noting the decline in June, followed by the rally in July, which is actually a bearish consolidation pattern. He also noted the stochastics, which confirmed the June run up was too far too fast.

Turning to a weekly chart, Collins noted the Chinese market was rangebound for ages before its parabolic move in 2015. Just eight weeks into its collapse, however, there doesn't appear to be a strong correlation with U.S. markets.

There is, however, a strong correlation to the dot-com collapse of 2000. Given that correlation, Collins felt the Chinese market could wipe out all of its recent rally if key levels are not maintained.

Lightning Round

In the Lightning Round, Cramer was bullish on Jack in the Box (JACK - Get Report), Chipotle Mexican Grill (CMG - Get Report), Enbridge (ENB - Get Report), Taser International (TASR), Continental Resources (CLR - Get Report) and Nordic American Tanker (NAT - Get Report).

Cramer was bearish on Habit Restaurants (HABT - Get Report), Ship Finance International (SFL - Get Report) and Eastman Kodak (KODK - Get Report).

Executive Decision: Martin Richenhagen

In his second "Executive Decision" segment, Cramer spoke with Martin Richenhagen, chairman, president and CEO of Agco (AGCO - Get Report), a stock that's up 16% so far in 2015, thanks to a 25-cents-a-share earnings beat despite falling crop prices.

Richenhagen was optimistic for the second half of 2015, saying that operating costs continue to decline, yet his company remains ready to ramp back up as soon as markets improve. He also noted Agco's new line of smaller tractors as a driver for continued growth.

Richenhagen is also bullish on Agco's stock, saying the company remains aggressive buyers of its stock and will likely renew its buyback once the current authorization expires.

Cramer said Agco is a company with conviction and the stock is not done going 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 FB and GOOGL.