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.
Cramer said investors need to look for growth companies, like Apple (AAPL) , a stock which he owns for his charitable trust, Action Alerts PLUS and Chipotle Mexican Grill (CMG) , stocks which are trading for less than one time their growth rate.
Disappointed in Congress
In the "Executive Decision" segment, Cramer once again checked in with Andrew Littlefair, president and CEO of Clean Energy Fuels (CLNE) , a stock that's up 65% since Cramer last spoke with Littlefair just four months ago.
Shares of Clean Energy Fuels were dealt a pair of setbacks this week, as the company reported a larger-than-expected loss and in Washington, when Congress failed to pass a subsidy bill for natural gas trucks.
Littlefair said that he was disappointed by today's congressional action. He said our country was counting on leadership and simply didn't get it today. Supporting natural gas is the only policy that will get America off foreign oil, explained Littlefair, and the bill that was defeated wouldn't have cost taxpayers a dime.
But Littlefair remained upbeat, saying that America doesn't need Washington to do the right thing. He said major corporations are already moving to natural gas vehicles and as more and more climb on board, the downward pressure on oil prices will begin. For it's part, Littlefair said that Clean Energy Fuels is building 150 new natural gas fueling stations across the country and will "make a dent" in the infrastructure needed to make natural gas a reality.