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Cramer's 'Mad Money' Recap: A Rally Based on Facts

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NEW YORK ( TheStreet) -- Is the market's recent surge higher based solely on hope? Jim Cramer told his "Mad Money" TV show viewers Monday that he's not buying that explanation. Cramer said this rally is based on facts, which is why he no longer fears the future.

Make no mistake, there are plenty of sectors that are relying on hope, said Cramer, but they're easy to distinguish from the good ones.

Obviously, the international banks are trading on hope, he said, hope that the Europeans will finally save their economies. That's why Cramer said he's not a fan of these banks, other than J.P. Morgan Chase (JPM), a stock he owns for his charitable trust, Action Alerts PLUS .

Cramer said the industrials are hopeful the Chinese economy will recover, which is why stocks like Freeport McMoRan (FCX), Caterpillar (CAT) and 3M (MMM) trade higher on every bit of bad news. Surely the Chinese will have to do something eventually, won't they?

Other sectors, like the natural gas stocks and even the transports, like FedEx (FDX), are also hopeful that the world's economies will begin to gain steam.

However, there are plenty of sectors moving on cold, hard facts, like the fact that bank CDs and bonds pay next to nothing -- which makes the likes of Verizon (VZ), Kraft (KFT) and Home Depot (HD), with their bountiful dividend yields, very attractive.

Retail is also on fire, said Cramer, just look at Costco (COST) or Target (TGT) or PVH Corp (PVH). Housing is also strong, which we see in Owens Corning (OC), Stanley Black & Decker (SWK) and Toll Brothers (TOL).

Even in tech there is growth, noted Cramer, although it all resides with Apple (AAPL), another Action Alerts PLUS name, along with Google (GOOG) and Amazon.com (AMZN).

Cramer said any of these names is a good place to invest.

Breaking Up Is Great to Do

In the real world, breaking up is a miserable experience, but in the stock world, it's a glorious occasion, Cramer reminded viewers, as he featured oil and gas giant Hess (HES) to show just what could happen if this company decided to spin off some of its assets to unlock value.

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