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TheStreet Open House

Cramer's 'Mad Money' Recap: New Normal for 2012 (Final)

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NEW YORK ( TheStreet) -- "All is right with the world, or at least with the markets," Jim Cramer proclaimed to his "Mad Money" TV show viewers Thursday.

Cramer said individual stocks are no longer trading in lock-step with the news of the day and are finally trading on their own merits, making the lost art of stock-picking relevant again.

Cramer said the pattern has been that if a company does well, its stock shoots higher, but if if fails to deliver, shares get instantly crushed. Nowhere is this pattern more visible than in retail, said Cramer.

For example, when Tractor Supply (TSCO) delivered an upside surprise shares shot up today by 10%. "Stunning," said Cramer. Likewise with Dick's Sporting Goods (DKS), a stock that had Wall Street on edge, delivered better than expected results only to see its share pop 12.5%. These join other retailers like Lululemon Athletica (LULU), which has seen an 18-point gain from its lows from last month.

But on the downside there's been stocks like Williams Sonoma (WSM), which did not deliver as promised, only to see its shares down sharply 12.2%. Tiffany & Co (TIF) told the same tale earlier this week.

Cramer said there's also another pattern emerging in the markets, one that's more concerning. He said some of the most beaten down stocks of 2011 are seeing an undeserved bounce in 2012, mainly the financials. He said that stocks like Bank of America (BAC) and Citigroup (C) haven't fixed any of their problems are are just as vulnerable to Europe as a month ago, yet these companies' shares are racing higher.

Cramer said he prefers good banks that are getting better, banks like US Bancorp (USB), a stock which he owns for his charitable trust, Action Alerts PLUS , and Wells Fargo (WFC) over bad banks that are still bad.

Finally, Cramer said there's also a rush into the tech sector. Some stocks, like Apple (AAPL), another Action Alerts PLUS name, deserve the rise in share price, he said. But others, like Micron Technology (MU), certainly do not.

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