Jim Cramer has always considered teen retailers to be the most puzzling, confusing and downright frustrating segment of retail.
Hence, he was very suspicious when this group that has been down in the dumps for ages suddenly bounced back after the election of Donald Trump.
"Historically, I have not liked the teen apparel plays. I think teenagers are incredibly fickle customers, and even worse, it's almost a truism that adults don't understand teens, even the adults who run these teen oriented apparel companies or the adults who analyze their stocks," the "Mad Money" host said.
When an investor buys shares in a teen retailer, it's a bet on what teenagers like, and that is something that can change on a dime.
To gain further insight to the group, Cramer spoke with technician Bob Lang, the founder of ExplosiveOptions.net and colleague at RealMoney.com. Lang said teen stocks like Zumiez, Tilly's, Francesca's and Five Below have been making some fantastic moves lately.
He even managed to enroll Cramer in believing in Five Below based on the fundamentals.
Technology stocks came back with a vengeance on Tuesday with another rotation in the Trump rally, and Cramer had his eye on FANG and Apple.
FANG is the acronym Cramer created to represent technology growth stocks Facebook, Amazon, Netflix and Google, (and now Alphabet) that tend to lead the market. With a potential rate hike from the Federal Reserve on the horizon, Cramer expects a host of stocks to head higher.
"Apple might even benefit from a rate hike because it will be able to get a better return from its gigantic hoard of cash," Cramer said.
As the Dow Jones industrial average approached a historical new high Tuesday, Cramer knew exactly what was happening behind the scenes at trading desks around the country.
It's a mad scramble to buy a big capitalization stock, especially one in the Dow like IBM that hasn't had much action.
"It would be a huge beneficiary of Trump's proposed lower corporate tax rates. It is a terrific play on a stronger economy, and IBM's got the backing of Warren Buffett," Cramer said.
After a day when Morgan Stanley downgraded the entire real estate investment trust group in anticipation that they will be less attractive against bonds in an impending rate hike, Cramer was on the hunt for REITs that can hang in there in a higher interest rate environment.
Digital Realty Trust is a company that owns and manages 156 data centers across 11 countries and four continents. Often there aren't enough data centers out there to meet the demands from businesses that want to securely store digital information.
Cramer spoke with Digital Realty's CEO Bill Stein, who explained why the company has managed to stay so stronger versus many of its competitors.
"It's really because of the demand drivers for our business … Cloud has obviously been a huge driver of business, social networking from many years ago has been pushing it up as well as content. But looking ahead, I think there's a tsunami of data coming ahead that is going to further drive our business," Stein said.
The possibility of higher interest rates could also mean good things for banks, which make more money from customer deposits. Cramer also was willing to bet that it means they will upgrade technology for things like ATMs and security systems to fend off the competition.
Diebold Nixdorf is the largest manufacturer and servicer of ATMs in the U.S. and many other countries, which just closed on its acquisition of Wincor Nixdorf over the summer.
And while the bank stocks have roared higher, Diebold Nixdorf was still down nearly 20 percent for the year. Cramer spoke with Diebold Nixdorf's CEO Andy Mattes, who explained the significance of the acquisition.
"Things are going well. We just did the biggest transformational deal in the 157 year history of our company. We have acquired a company pretty much the same size as ours, we have increased our total addressable market by 50 percent and we merged two big organizations," Mattes said.