Cramer's 'Mad Money' Recap: May 4

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Today's market action was a classic "Mutual Fund Monday," when large funds poured new money into the markets, Jim Cramer told the viewers of his "Mad Money" TV show Monday.

He said the rally is being led by the Chinese recovery, which has now spilled over from just a consumer recovery to an industrial one that's beginning to lift the world markets as well.

"The trickle of new money in the markets is now a flood," said Cramer. "And it's not done," he continued.

So what to make of all the negativity in the newspapers? Cramer debunked the five topics he's been reading about over and over again.

1. The banks won't pass the stress test. "Wrong," said Cramer. The stress tests are a good thing, and the banks are rallying as a result.

2. There's no bottom in sight for housing. Cramer said this simply isn't true, given the National Association of Realtors report today that said sales were up year over year in Florida and California.

3. Obama will use the Chrysler model to nationalize everything. In the real world, no one seems to care, he said. Obama is not as anti-capitalism as we thought, he added.

4. Construction stocks have rallied too far, too fast. Again not true, he said. Today's construction numbers were blistering hot, he said, making these stocks cheap.

5. Swine flu will kill the world's GDP. The fact of the matter is the threat of a swine flu pandemic is beginning to ebb, and just might not be as bad as everyone first thought.

Cramer said all of these negative stories have been overhyped. "Don't let them keep you out of the markets," he said. There are still opportunities to make money.