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NEW YORK (
TheStreet) -- "The sky better fall real soon," Jim Cramer told his his
"Mad Money" TV show viewers on Wednesday, poking at the bears after stocks rose for a third straight session. He added that, at this pace, the market is "liable to break out to new highs."
Cramer proceeded to "call out concepts" that he believes have bedeviled stocks in the past two months, and get in the way of investors making solid stock picks. The first notion he questioned was the idea that Greece was ever going to be allowed to default, saying the European Union and International Monetary Fund had the situation in hand all along. He called the protests over the past few days "non-confrontational" and "anemic."
Cramer next said the idea that housing will never come back is being undercut by the most recent data, and poked holes in the media's reference of the risk trade, saying this isn't language that hedge fund managers actually use, adding he should know, "I'm from that world."
He called the idea of a so-called risk trade influencing the markets a "total canard" and said it's of no value at all. His take was that cyclicals are simply being traded out for staples.
Next he assailed the idea that only improved employment numbers can bring the consumer back, noting that gas prices are a factor and that most people still have jobs. He also said QE2 is not the main concern of a stock trader, and that stock traders should be more concerned with earnings. And finally, he took issue with the notion that stocks trade in lockstep with other markets.
He advised investors to look at what helps stocks, datapoints like machine orders and retail sales, and mentioned a number of companies, including
IBM which he said will execute.
Cramer advised investors to make sure they understand the difference between worries that affect stocks and those that impact countries.
A question from a viewer about
Bank of America(BAC) was next, and Cramer said the stock looks okay, not great, after reaching an $8.5 billion settlement on mortgage-backed securities that went bad earlier on Wednesday. He noted the stock is one he owns for his charitable trust,
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, and said he's "stuck in it" now, and that he likes the regional banks better.
Cramer was also asked by a viewer about the potential for a merger between
Sprint(S) but he dismissed the idea, saying the companies are too different.