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NEW YORK (
) -- "This rally is turning bears into house pets," Jim Cramer told the viewers of his "Mad Money" TV show Tuesday.
After a 103-point rally in the
Dow Jones Industrial Average,
Cramer said that the "parade of horribles" the bears have been counting on have simply evaporated, leaving corporate earnings to take center stage.
According to the bears, said Cramer, commercial real estate was on the brink of collapse. Instead, he said new firms are being created every day to buy distressed real estate and help the market recover.
The bears also predicted ever falling housing prices, but there too, they were wrong, he said, noting home builder
saying that home prices in California have finally stabilized.
The bears were also worried about a bubble in China, said Cramer, but it now looks like China's getting its second wind. He re-recommended
as a play on China's need for coal to make more steel.
In technology, the bears predicted a seasonally weak first quarter, said Cramer, but there too, they were dead wrong. He recommended
ahead of its earnings and once again extolled the strength of
, a stock which he owns for his charitable trust,
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Other bear arguments centered on health care reforms and banking reforms. But Cramer said that with no new taxes hitting until 2011, health care is a non issue, for now, and banking reforms have also been watered down to where they're not a threat to earnings.
Cramer said the big news that matters is that Washington is taking a vacation from the front page of the media, which leaves earnings to step into the spotlight. And with so many bull markets occurring, from tech to aerospace, shoes to fertilizer, the bears will be forced to admit their wrong and buy in big soon enough.