'Mad Money' Recap: Pullback Playbook

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NEW YORK (TheStreet) -- "After a six day rally, it's rational to take profits," Jim Cramer told the viewers of his "Mad Money" TV show Thursday.

He said the markets just went up too far, too fast, and now there's a little profit taking. "There's nothing to get scared about," he told viewers, as he debunked another round of excuses from the bears.

Bear Excuse No. 1: Congress is focused on healthcare, and not on jobs. Cramer said it should come as no new revelation that Washington is focused on the wrong things. Just look at the stimulus, he said. We needed infrastructure and real stimulus, and got very little of both.

Bear Excuse No. 2: The federal deficit is too large. Cramer said the deficit has been big and looming for years now. This news should come as a shock to no one, he said.

Bear Excuse No. 3: Retail sales were disappointing. Cramer said compared to a year ago, people couldn't even imagine retail sales this good.

Bear Excuse No. 4 Oil and copper were both down today. Cramer reminded viewers that these two commodities have had breathtaking runs to the upside. One down day, he said, is nothing to write home about.

Bear Excuse No. 5: Housing is still stalled. Cramer said viewers need to listen to the homebuilders' conference calls. The bottom was in July, he said, and the hardest hit areas are stabilizing. It will take time to mount any sizable recovery.

Cramer said none of these excuses make any sense. He said what does make sense, is taking profits after a big run. And that, he said, is why the news didn't matter today and why the earnings didn't matter. The markets were overbought, and they corrected themselves.