Yes, the averages all rallied on Tuesday, but that didn't stop Jim Cramer from wanting to scream. The action he saw in the markets was destructive as investors made snap judgments that led to stupid decisions.
"They might as well call it mistake season for all the ridiculous moves people are making," the "Mad Money" host said.
Cramer went down the list of stupidity he saw to show just how costly these earnings season mistakes can be.
JPMorgan, Wells Fargo and Johnson & Johnson all reported on Tuesday, and the action in their stocks had a level of lunacy that told Cramer that the people trading them were totally clueless. But the one that really took the cake of craziness for Cramer was JPMorgan.
As for Johnson & Johnson, Cramer recommended that its CEO take a chapter out of the book from Celgene when it bought Cramer-fave company Receptos for $232 per share in cash. It is time for some radical action with Johnson & Johnson, such as a split to break the company up into three divisions of consumer, devices and pharma.
"Congrats to all who bought Receptos after my endless recommendations and interviews with CEO Faheem Hasnain, who has done such a great job for shareholders, as has Celegene CEO Bob Hugin for that matter," Cramer said.
So, while Celgene and Receptos took positive action to create value in their companies, Cramer pointed out that just because a company does something smart doesn't mean the stock is worth owning.
One example was the split up of Energizer. Cramer was excited when Energizer announced it would break itself up into a battery company and a separate personal care company. It never really made sense to him to have batteries, razors and tampons all under the same business roof.
"But now that this breakup has actually happened, I don't think it's worth owning either of the resulting independent companies," Cramer said.
It's not that the breakup was a bad idea, the problems is that neither the battery nor the personal care business are in good shape right now.
Yet when Cramer looked at the action of the on Tuesday, the first thing he thought was that every dog has its day, and that day was Tuesday.
The biggest dog that wagged its tail was Micron, the low-cost DRAM and flash memory producer that was down almost 50 percent for the year as of the close on Monday. And while Cramer thinks the company is a terrific manufacturer, it has done nothing but act like a falling knife.
Everything changed Tuesday when investors learned that Tsinghua Unigroup reportedly wants to buy Micron for $23 billion, even though the company was worth $19 billion on Monday.
But biggest dog stocks that turned around were the offshore drillers. Wowzer! Just take one look at Diamond, Transocean and Ensco and see they are on fire. Why?
Because Wednesday is the day that companies can tender for oil rich Gulf of Mexico properties, for the first time in 80 years, which is great news.
So, while the action in these dog stocks was attractive Tuesday, Cramer is not about to start drawing any positive conclusions about them. However, he wouldn't be surprised to see some second-day rally activity. After all, the market finds a way to love the unloved eventually.
Cramer has also been very excited about eBay's upcoming spinoff of PayPal as an independent company. He highlighted it a few months ago and recommended that he liked eBay as a way to own PayPal.
But given that PayPal has already started trading on an issued basis, meaning a precursor to the real deal on Monday, Cramer decided it was time to revisit the story to make sure it's still worth buying.
"I think you need to snap up this stock because, even based on our very conservative estimates, PayPal's got a lot of room to run," Cramer said.
To get the inside scoop on the stock that is most owned by Cramericans, Cramer spoke with Ed Ponsi, a technician and managing director of Barchetta Capital Management and colleague of Cramer's at RealMoney.com, to discuss the future of Apple.
When looking at the charts, what Ponsi loved most was that resistance becomes support and support becomes resistance.
"You can see a perfect example of that on this chart," Ponsi said.
Ponsi's long-term projections show that there is a clear resistance level in the low $130s, which is not far away from its current price. However, the charts do indicate that Apple is still on a healthy uptrend.
Ultimately, Ponsi said that Apple is a good stock to own, despite any activity that occurred in the past few weeks. So, while many investors tell Cramer that they are disappointed with Apple because it doesn't have enough activity, Ponsi disagrees.
Cramer asked Ponsi if Apple could run up so much that it takes out the all-time high. Ponsi said he didn't even consider this to be a question, because the stock is not far away from that level, currently. So, while it is all dependent on the overall market, Ponsi could easily see the stock hitting $140 without much difficulty.
Read More Cramer: Why Apple could easily hit $140
In the Lightning Round, Cramer gave his take on a few caller favorite stocks:
CVS Health: "I think that they are doing everything right. I happen to prefer Walgreen Boots Alliance because that was an unbelievable quarter, but CVS is great too. And it's a three-fer, Rite Aid looks great too."
Harman International Industries: "People worry about Harman and the last time we had them on, Dinesh Paliwal [the CEO] talked about how the strong dollar was hurting them. I still believe in it and I do not think that Apple is cutting into its business."