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Today's market action was a classic "Mutual Fund Monday," when large funds poured new money into the markets, Jim Cramer told the viewers of his "Mad Money" TV show Monday.
He said the rally is being led by the Chinese recovery, which has now spilled over from just a consumer recovery to an industrial one that's beginning to lift the world markets as well.
"The trickle of new money in the markets is now a flood," said Cramer. "And it's not done," he continued.
So what to make of all the negativity in the newspapers? Cramer debunked the five topics he's been reading about over and over again.
1. The banks won't pass the stress test. "Wrong," said Cramer. The stress tests are a good thing, and the banks are rallying as a result.
2. There's no bottom in sight for housing. Cramer said this simply isn't true, given the National Association of Realtors report today that said sales were up year over year in Florida and California.
3. Obama will use the Chrysler model to nationalize everything. In the real world, no one seems to care, he said. Obama is not as anti-capitalism as we thought, he added.
4. Construction stocks have rallied too far, too fast. Again not true, he said. Today's construction numbers were blistering hot, he said, making these stocks cheap.
5. Swine flu will kill the world's GDP. The fact of the matter is the threat of a swine flu pandemic is beginning to ebb, and just might not be as bad as everyone first thought.
Cramer said all of these negative stories have been overhyped. "Don't let them keep you out of the markets," he said. There are still opportunities to make money.
Uptick Rule Update
In a special interview, Cramer welcomed Sen. Ted Kaufman (D., Del.) to the show to the discuss the Securities and Exchange Commission's progress in reinstating the uptick rule, which was designed to limit the impact of short sellers on the market.
Kaufman said people have lost the feeling that they're getting a fair deal when it comes to Wall Street, and he said he's pledged to make sure the market remains "on the level" for all investors.
He said he hasn't given up on SEC chairwoman Mary Schapiro, and hopes she does the right thing by reinstating the uptick rule. However, Kaufman said he's prepared to proceed with a law that's received bipartisan support in the event that doesn't happen.
Kaufman said simply that there needs to be a rule, regardless of exceptions or technological hurdles. He said the resistance to the rule is coming from an SEC that doesn't want to admit its past mistakes, but needs to.
Cramer encouraged viewers to visit the SEC's website at sec.gov and leave their comments during the remainder of the public comment period on short selling reforms.
Reaching Into the Bag
Has the seemingly unstoppable tech rally gotten too hot? Cramer doesn't think so. He said not only is the tech rally here to stay, it's getting strong, broader and more powerful by the day.
Cramer said the logic behind the rally is simple: the more tech rallies, the more the momentum chasers pile in. "People love winning mutual funds," he said, adding that's why the big money is shoveling as much cash as it can into technology.
But where to invest? This rally started with the high quality tech names, like
Research In Motion
( RIMM), said Cramer.
And while these names are likely to continue trending higher, the real opportunity is now in the small, unloved and forgotten tech names -- the once mainstream, but now speculative names.
Cramer said one such company is telco equipment supplier
( TKLC), which makes the equipment needed to make text messaging and local number portability possible.
Tekelec is a play on both the expansion of cellular networks as well as the growth of text messaging, he said. In addition, the company has exposure to India, which not only has the world's faster growing cellular market but is ready to begin rolling out number portability.
Cramer called Tekelec a major opportunity. While now considered a speculative stock, the company has no debt and $4 per share of cash on its books. Out of the eight analysts covering the company, only one calls it a buy, leaving lots of room for future upgrades, said Cramer.
Cramer told a viewer
remains his favorite way to play the demand for better lithium-ion batteries.
Cramer told other viewers that he'd sell half a position in
given the current state of affairs, but he would stick with
, which he also owns for his
Action Alerts PLUS portfolio, despite not receiving the favorable ruling on new accounting standards he was hoping for.
Cramer told another viewer that while
might get a bounce, he's a fan of
United Parcel Service
, followed by
, before any trucking company.
In the Lightning Round, Cramer was bullish on
Clean Energy Fuels
Cramer was bearish on
Las Vegas Sands
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"Cramer's Take onTop-Searched Stocks" on Stockpickr.
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At the time of publication, Cramer was long State Street, JP Morgan.
Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."
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