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Jim Cramer's 'Mad Money' Recap: The Market's New Reality

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NEW YORK (TheStreet) -- Why isn't there more selling in the market? That was the question Jim Cramer posited to his Mad Money viewers Wednesday.

His answer? Because too many bad things just aren't happening.

In a rare case of "everything that can go wrong just isn't," Cramer said the markets are simply adapting to the new realities and are focusing on the positive instead of the negative.

Cramer noted the markets have lived in fear for years that when the Federal Reserve began tapering its bond buying program the market would collapse. Yet, now that tapering has begun interest rates are heading lower, not higher.

Then there are the earnings. Everyone has been expecting bad news -- yet, report after report, companies like Facebook (FB) and Apple (AAPL), stocks Cramer owns for his charitable trust, Action Alerts PLUS, have surprised to the upside.

Cramer said where there is weakness in the markets, there's no longer any negative "pin action" taking the entire market with it. Some sectors, like the transports, oils and retail, have shown surprising strength of late.

Even the deadly initial public offering market has been tapering, allowing demand to catch up with torrent of new offerings. Cramer said that IPO tapering, plus rising corporate dividends, are all helping to send the markets higher because all of the bad things we've all been fretting about are turning out to be no big deal after all.

Unlocking Value

Sometimes companies need a little prodding to unlock value, Cramer told viewers, and there's no better way to light a fire under management than with an activist investor.

Cramer said that he's a fan of anything that legally moves stocks higher. Activist investors including Bill Ackman, Nelson Peltz and Carl Icahn all have great track records for spurring companies to do the right thing and unlock value for their shareholders -- whether that's by making acquisitions, breaking up or simply returning more capital to shareholders via dividends or stock buyback programs.

Stock quotes in this article: AAPL, FB, PPG, VRX, XLI, URI, TYC, MU, UA, MTB, XCO, EOG, NVAX, PKI, SIVB, WFC, AGN, MDLZ, PEP, IR 

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