Cramer's 'Mad Money' Recap: May 11

Click here for an archive of Jim Cramer's Mad Money recaps.

---

Editor's Note: Tonight we are testing a new concept to get the Mad Money Recap to you quicker by publishing installments live during the show. We invite you to bookmark TheStreet.com to make it easy to return for the next update. Please let us know what you think of this new approach by sending an email to the editor.

"After weeks of the markets going higher, it's time to a reality check," Jim Cramer told the viewers of his "Mad Money" TV show Monday.

He said that it's important to pause and review your investment theses to see if they're still pointing higher, or signal a downturn.

According to Cramer, there are five threats to the bull market. Four of which he said are under control, but one still keeps him up at night. These threats include:

1. Unemployment Spike. Cramer said employment must continue to head in the right direction, with jobless claims headed downward. He said there needs to be progress every week.

2. Obama's market view. Cramer said Obama's been doing a great job as of late by taking on Wall Street without demonizing it. This needs to continue, he said. Obama has to realize that he has the power to take the markets lower and needs to continue to promote it, he said.

3. Signs of Inflation. Nothing can stop an economic rally cold like inflation, but fortunately we're not seeing any signs of it, said Cramer. Cheaper housing, slumping autos and the collapse in banking should keep this recovery killer at bay.

4. Dip in Bank Stocks. The rally in banking will only continue as long as the big money is buying in, he said. Fortunately all of the recent secondary offerings made by banks were priced right, and investors are continuing to make money, he added.