Cramer's 'Mad Money' Recap: The Market Reflects Reality (Final)

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NEW YORK (TheStreet) -- "It's time to set things straight with some cold, hard facts," Jim Cramer told the viewers of his "Mad Money" TV show Tuesday.

He once again took on the naysayers and market bears, this time with plain good old fashioned logic.

Lesson 1: Stocks do not go up idly. Cramer said stocks don't hit 52-week highs because things aren't going well. He said stocks go higher because the companies are hitting the ball out of the park.

Lesson 2: People buy things when they're feeling good. Cramer said when people buy tools, it means they want to make their homes worth more. When people buy cars, it's because they're feeling confident. And when people go shopping, it means they have a little extra cash.

Lesson 3: Last year, things weren't going well, but now they are. Cramer reminded viewers that this time last year, people weren't buying tools and cars and going shopping, but now they are, and that's because things are getting better.

Lesson 4: The stock market isn't lying. Cramer said the Dow Jones Industrial Average going from 6,500 to 7,500, to 8,500, to 9,500 is not a joke. He said because the companies that make up that average are all doing fine.

Cramer said there's logic to the markets. He said they reflect what's going on now, and what's likely to happen in the future. He said it's nuts that he has to defend this logic, and defend being positive, but so many bears just don't believe the rally.

Cramer said health care stocks, like Wellpoint (WLP Quote), are doing well because reforms aren't likely to hurt them any more.

He said that industrials, like Emerson (EMR Quote), are doing well because the dollar is weak. He said other sectors, like shipping, tankers, autos and technology, have all confirmed that things are getting better, not worse.

While things may not be great, and the country desperately needs jobs, Cramer said the truth is still positive, and the markets are reflecting that.