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Cramer's 'Mad Money' Recap: A Surreal Market

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NEW YORK ( TheStreet) -- The markets are at a surreal moment, Jim Cramer admitted to his "Mad Money" TV show viewers Monday, one where even the optimists are confounded by how bullish things have become.

Cramer said as he reviewed last week's charts, he found three disturbing patterns that are likely confounding money managers around the globe.

The first pattern: Stocks that run up ahead of their earnings and then run even higher after they report. Case in point: Whole Foods Markets (WFM), a stock that had been stuck in the low $80s for weeks, but then 10 days ahead of its earnings broke out above $90. Cramer said typically in a case like that, profit takers would come in and there would be a pull back before the run would resume. But not so with Whole Foods, which continued to rally still higher on the news, sending share up an additional $10.

That same trend was seen in both Walt Disney (DIS) and Domino's Pizza (DPZ).

Then there's the curious pattern of stocks that gap higher but don't retreat to "fill in the gap" before continuing higher. Cramer said this is a very typical bullish pattern, one of great news followed by brief consolidation then a continued move higher. But that pattern wasn't seen with Williams-Sonoma (WSM) or Restoration Hardware (RH), said Cramer, as both those stocks jumped higher and continued higher with not even a blink of consolidation.

Finally, Cramer said he's seeing a pattern of stocks that offer dismal earnings or gloomy outlooks, the kind that would normally send shares lower but the markets are sending higher as well. Examples include 3M (MMM), Caterpillar (CAT) and Emerson (EMR). Cramer noted that after gloomy outlooks from all three companies, these stocks were all rewarded with higher stock prices.

Cramer said despite all these rampant bullish signals the markets are still not getting any respect, even though respect is clearly its middle name.

Room to Run

Investing is all about putting together bits of information to form a solid thesis, Cramer told viewers. That's why when Charles River Labs (CRL) said two weeks ago that Big Pharma is spending less on early-stage research and more on late-stage clinical trials, investors should have been able to piece that information together with last week's IPO of Quintiles Transformational Holdings (Q - Get Report), a company that specializes in, you guessed it, late-stage research.

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