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Cramer Remix: Why you shouldn’t base your investments off Trump’s erratic behavior

When investors wake up nearly every morning to a confusing or market-moving tweet from President Donald Trump, Jim Cramer takes it upon himself to expose the not-so-obvious trends pushing stocks up despite political rhetoric.

"Look, this show is about investing, not politics, so while Trump has the right to ponder whatever the heck he wants, you absolutely should not invest based on his musings," the "Mad Money" host said.

In reality, Cramer highlighted four ways that CEOs can move stocks amid political uncertainty, and said that the president's tweets about breaking up big banks and encouraging a government "shutdown" send a harrowing signal to the American people:

"Don't take me seriously, I just think and tweet as if I'm not president, but a provocateur in chief who doesn't know my own power," Cramer said.

NASA/Joel Kowsky | Getty Images

For investors who are looking for stocks that can pay out in an uncertain environment, Cramer reviewed some of the market's high-yield plays to see if they are safe or could become traps.

The "Mad Money" host looked into the stocks of Verizon, AT&T, Ford, Kohl's, and Macy's to see whether their hefty 5-percent-plus yields were worth their weight.

With both Verizon and AT&T reporting massive customer losses and trying desperately to conduct successful mergers, Cramer finds the telecom plays tempting at their lows, but worrisome.

"Dividend stocks are supposed to be safe. These two don't feel that way now," he said.

Ford also made Cramer uneasy considering the company's weak 2017 guidance, though he said he does not see the stock going much lower because auto industry negativity seems baked in.

The retailers, however, seem to have seen their trough and could be coming back, Cramer noted. "Of the fivers, I can go with Kohl's. The rest? I want more yield, which means I want lower prices before I can give the stocks my blessing," he said.

Microsoft CEO Satya Nadella
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Microsoft CEO Satya Nadella

As the Nasdaq climbed to new highs and left the S&P 500 behind, Cramer looked to the charts for answers to which companies were really behind the record move.

The "Mad Money" host turned to technician Ed Posni, the managing director of Barchetta Capital Management and Cramer's colleague at RealMoney.com, for his take on the tech-driven rally.

Posni first noticed the Nasdaq diverging from the S&P in March. When the whole market got a boost in April, the Nasdaq took off while the S&P struggled to retrace its February highs.

What Cramer found particularly interesting was that the usual suspects behind tech-fueled rallies, the FAANG stocks (Facebook, Apple, Amazon, Netflix, and Google parent Alphabet), are also heavily weighted components of the S&P 500.

"In other words, the stunning rally in the Nasdaq is about more than just these high-profile stocks," Cramer said.

The "Mad Money" host also spoke with Dara Khosrowshahi, the president and CEO of Expedia, to hear about how the travel industry is evolving.

Khosrowshahi expanded on how his goals for growing the business are helped by the rapid growth of mobile technology, part of a trifecta for success Expedia employees call the "three Ms."

"Mobile is always on and gives you location context. The second M is messaging. Messaging allows for asynchronous communication, so we don't need to be on the phone at the same time, you can just send me a message and I can respond to you, and it comes with identity. So if you send me a message, I know it's you. You combine that with machine learning and we can perfect our services just for you. We can be the perfect travel agent for you constantly driven by data and getting better and better and better every year," the CEO told Cramer on Tuesday.

Dan Schulman
Scott Mlyn | CNBC
Dan Schulman

Finally, with Wall Street buzzing about PayPal leading the next iteration of financial growth stocks, President and CEO Dan Schulman sees two major tailwinds that could push his business to new heights.

"Two big trends are happening: the digitization of money, so from cash to digital, and then in retail, that is fundamentally being redefined by the mobile phone," Schulman told Cramer on Tuesday.

Schulman said PayPal's network of 203 million users and 16 million merchants stands to benefit hugely from shifting retail trends, especially the rise of e-commerce.

"So much of what [once] happened offline or in-store is now moving online. It's sort of buy online, pick up in-store. And so you're seeing both of those trends play into the strengths that PayPal can offer into the market," the CEO said.

In Cramer's lightning round, he sped through his take on some caller favorite stocks, including:

Skyworks Solutions: "OK, now, Skyworks is going to go down because people are panicking that this iPhone didn't sell enough, it missed by a million units, inventories down – that's not true. Let it come down for three days, and then you can buy it. But that's the pattern. I'm getting tired of it."

Schlumberger Limited: "OK, Schlumberger, I told club members from [my charitable trust] ActionAlerts, 'Not yet, not yet, not yet.' We have a position in it, got to wait until it goes lower. How about you wait until it goes [down] 3 percent, maybe $68, $69. It's a high-quality company. It is too low. But not yet. I want oil to see if it can hold $47."

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