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NEW YORK (TheStreet) -- It's nice to see the flow of money has reversed from last week's relentless selloff, Jim Cramer told his Mad Money viewers Monday. In fact, there were two reasons the markets were able to rally -- a positive news flow and money managers looking to add more stocks to their portfolios.
There were a number of positive headlines driving the markets, including a wave of mergers in the biotech sectors. Horizon Pharmaceuticals (HZNP) was one notable deal and its stock up a quick 18%. Teva Pharmaceuticals (TEVA) was also up on the day, as was Catamaran (CTRX), up 27%.
Must Read: Warren Buffett's Top 10 Stock BuysThere were also several positive research reports helping to vault stocks higher. An upgrade of Analog Devices (ADI) made Cramer re-recommend Skyworks Solutions (SWKS), while upgrades of Restoration Hardware (RH) and Nike (NKE) also caught his eye. In addition to all this positive stock news, it's also apparent that mutual funds are once again buying after last week's exodus. Funds are calmly looking for more exposure to stocks now that this most challenging quarter is coming to an end.