Cramer's 'Mad Money' Recap: New Playbook (Update 2)

(Story updated to add Cramer's Lightning Round picks, his comments on the health of the banking sector, and his concluding remarks.)

NEW YORK (TheStreet) -- Jim Cramer once again took on the market naysayers, telling his "Mad Money" TV show viewers Tuesday that they need to stop trying to out-think the markets and stop trying to draw linear conclusions where there simply aren't any.

The markets are in expansion mode, he explained, and that means investors need a whole new investing playbook.

Cramer panned the intellectuals still clinging to every word and innuendo out of the Federal Reserve. He said with the economy heating up and the laws of supply and demand taking over, "Washington has been left behind at the station" and the Fed is no longer a factor.

Cramer said with the economy recovering, even an ailing bank like JPMorgan Chase (JPM) can raise its dividend, since it can once again lend money and actually profit from it.

So what does an expanding market mean for stocks? Cramer said first, it means that stocks can indeed go higher. Second, he said it means that the Federal Reserve is just a sideshow from now on and won't meaningfully affect the markets. Third, Cramer said that supply and demand will be in charge going forward. And lastly, Cramer noted that investors needs to pay attention to companies with sustainable earnings.