Cramer's 'Mad Money' Recap: Six Reasons to Be Bullish (Final)

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NEW YORK (TheStreet) -- While many investors and market pundits are heading for the hills, predicting a market collapse, Jim Cramer told the viewers of his "Mad Money" TV show Tuesday that he "looks at the market differently."

He said that while the media obsesses over budget deficits, a potential collapse in commercial real estate, and a weak back to school shopping season, he's been asking the question "what can stop this market?"

Cramer said that according to colleague and chartist Dan Fitzpatrick, the markets are exhibiting a classic "reverse head-and-shoulders" pattern. Fitzpatrick suggested the S&P 500 could rocket to 1200 if the pattern holds. Given this information, Cramer identified six reasons why Fitzpatrick might be right.

1.Robust takeovers. Cramer said that while September is typically a sleepy month for the markets, this year, takeovers are everywhere and there's a flurry of activity.

2. Broadening leadership. Cramer said the markets, once led by oils, tech and the banks, is now broadening to include healthcare and freight stocks as well.

3. New money. Cramer said there is still a sizable about of new money flowing into mutual funds and hedge funds, and that money needs to be invested somewhere.

4.Slowing job Losses. Cramer said while companies may not be hiring yet, it's clear that the tidal wave of firings and layoffs has begun to recede.

5.The housing bottom. Cramer said it's also clear that the housing market is stabilizing, and that will be a welcome relief to the markets.

6.Back-to-school sales. Despite the worries, Cramer said the back- to-school shopping season was actually better than expected, and that's also great news for the markets.