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NEW YORK ( TheStreet) -- "We used to cower when the old President Obama came on the air," Jim Cramer told the viewers of his "Mad Money"TV show Monday. "But today," he continued, "we received the ultimate confirmation that the new and improved President Obama is here to stay." Cramer said investors don't need to love the president, or even like him, but they do need to care if the markets like him. And with today's rally, the markets have signaled loud and clear that it no longer fears Obama. "There's no denying his change in attitude," said Cramer, adding the president is no longer demonizing big business. He said the facts have changed, and so has Cramer's stance on the markets. Cramer said the most important take away from today's CNBC town hall meeting was that the President is willing to compromise on middle class tax cuts. "Compromise breeds jobs," said Cramer, and without jobs there will be no trimming of bank losses or turn in housing starts or rally in the retail stocks. Compromise breeds certainty, and with certainty, business can once again flourish, he said. According to Cramer, the President wants to make deals and create jobs, and that's exactly what the markets needed to hear.
Security Data Plays"The business of protecting people and data is in bull-market mode," Cramer told viewers, as he followed up on one of his Top 10 investing themes of 2010. He said of the seven security stocks he featured on Oct. 16, 2009, three have received takeover bids at huge premiums. Cramer said that Cogent ( COGT) received a takeover bid and is up 10% from his last recommendation, but ArcSight ( ARST) and L-1 Identity Solutions ( ID) also received bids, and are up 89% and 70% respectively. With these three names now off the radar, Cramer has three new replacement stocks. All have had big runs recently, so Cramer suggested buying them only on a pullback. The stocks included Fortinet ( FTNT), makers of unified threat management software, Verint Systems ( VRNT), a video and communications analysis firm, and Radware Ltd ( RDWR), an applications delivery company. Cramer said all three of these companies have strong fundamentals. Receiving an honorable mention was NICE Systems ( NICE), a stock that's down 3% since Cramer's last recommendation. Cramer said NICE Systems also has strong fundamentals, with $9.37 a share in cash on the books and a stock that trades at just 10.6 times earnings. NICE Systems, he said, plays in both the physical and network security businesses, and deserves to trade much higher.
A Lesson on Technical AnalysisCramer kicked off a week-long segment entitled "Chart Week" to help viewers learn the ins and outs of technical analysis. Cramer said while he continues to value stocks based on their fundamentals, technical analysis has a place in investing. Charts don't predict what's going to happen, he said, but they do tell you what investors are actually doing. Cramer was joined by colleague and chartist Dan Fitpatrick, for the latest technical read on where the markets may be headed. Fitzpatrick said that investors need to keep their eyes open when looking at charts. "They send signals," he said, but only if you're looking for them. When looking at a weekly chart of the S&P 500, for example, Fitzpatrick noted the dreaded "head and shoulders" pattern that began late last year. According to chart theory, Fitzpatrick said investors should be selling now, but in reality, the average never completed the right shoulder, and had investors sold, they would have missed a powerful move higher. Turning to a daily chart of the Dow Jones Industrial Average, Fitzpatrick also noted the head and shoulders pattern, with the head appearing this past April. He said the pattern may seem cut and dry, but nothing is ever clear in technical analysis. He noted that the index stayed above its 40-day moving average, thus nullifying the head and shoulders. Going forward, Fitzpatrick said he expects some selling after today's rally, but ultimately sees the Dow heading to 11,000.