Cramer's 'Mad Money' Recap: Bears Have No Place to Hide

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The market is still trending higher because the bears are losing their places to hide and the bulls are just winning, Jim Cramer told the viewers of his "Mad Money" TV show Friday.

Cramer said today was another day where the bears and shorts lost another reason to be negative on the markets.

The bears thought the Treasury Department's banking stress test was a win-win, he said. That's because they believed the tests could've been too tough and the government would've been forced to gobble them all up.

On the other hand, they reasoned the tests could've been too easy, and the whole thing would've been called a sham. Yet in the end, the Treasury stress test was exactly what the bear didn't want, namely a statement that everyone needs more capital, and more time for the banks to find it.

With stress tests now a non-issue, the bears have only valuations to scare off investors with, said Cramer. However, he said, the only problem with that is that valuation is in the eye of the beholder.

In the battle of hedge funds versus mutual funds, the mutual funds are winning, said Cramer. These funds need to get fully invested and are buying stocks faster than the hedge funds can short them.

Cramer cited example after example where the big money is buying in, and taking stocks higher. In the eyes of the mutual fund managers, these stocks appear cheap: Fortune Brands (FO Quote), Honeywell (HON Quote), Microsoft (MSFT Quote), Bank of America (BAC Quote) and Schlumberger (SLB Quote), said Cramer.

If you look at a one-month chart of these stocks, they're expensive, but if you look at a one-year chart, you'll see why the bulls are winning, he said.