NEW YORK ( TheStreet) -- "The sky better fall real soon," Jim Cramer told his his "Mad Money" TV show viewers on Wednesday, poking at the bears after stocks rose for a third straight session. He added that, at this pace, the market is "liable to break out to new highs." Cramer proceeded to "call out concepts" that he believes have bedeviled stocks in the past two months, and get in the way of investors making solid stock picks. The first notion he questioned was the idea that Greece was ever going to be allowed to default, saying the European Union and International Monetary Fund had the situation in hand all along. He called the protests over the past few days "non-confrontational" and "anemic." Cramer next said the idea that housing will never come back is being undercut by the most recent data, and poked holes in the media's reference of the risk trade, saying this isn't language that hedge fund managers actually use, adding he should know, "I'm from that world." He called the idea of a so-called risk trade influencing the markets a "total canard" and said it's of no value at all. His take was that cyclicals are simply being traded out for staples. Next he assailed the idea that only improved employment numbers can bring the consumer back, noting that gas prices are a factor and that most people still have jobs. He also said QE2 is not the main concern of a stock trader, and that stock traders should be more concerned with earnings. And finally, he took issue with the notion that stocks trade in lockstep with other markets. He advised investors to look at what helps stocks, datapoints like machine orders and retail sales, and mentioned a number of companies, including Honeywell ( HON) and IBM which he said will execute. Cramer advised investors to make sure they understand the difference between worries that affect stocks and those that impact countries. A question from a viewer about Bank of America ( BAC) was next, and Cramer said the stock looks okay, not great, after reaching an $8.5 billion settlement on mortgage-backed securities that went bad earlier on Wednesday. He noted the stock is one he owns for his charitable trust,
Natural Gas EnginesCramer spoke to Westport Innovations ( WPRT) CEO David Demers, asking him about the company's deal this week to research natural gas engine technology with General Motors ( GM) Demers said the news is important, not just because the company is working with a heavyweight like GM, but because it points to growing acceptance of the concept of the feasibility of a natural gas vehicle. Cramer also asked about cost-effectiveness, and Demers said the argument that the engines will be too expensive is too simplistic. Demers noted that more mature markets like natural-gas powered buses already have pretty close pricing to gas-powered engines, and he sees a "promising payback" for business fleets. Natural gas supplies were also a question, and Demers shrugged these concerns off as well, saying he's not sure what natural gas skeptics have up their sleeve and asking if they have a better idea. Cramer then asked what real hope there is for a natural-gas powered car to get wide acceptance and asked about competition from electric cars. Demers described an uphill climb for wider acceptance of electric vehicles, saying "Our grid is not ready to power a nation of electric vehicles." Noting the stock is up 30% so far this year, Cramer then acknowledged an investment in Westport does involve speculation but said he likes the technology, and that the shares are worth considering if an investors is as "enamored" of the technology as he is.
Coffee TradesCoffee was the next topic of conversation, and Cramer was bullish and came out and endorsed Starbucks ( SBUX) as a great way to play international growth. He called Green Mountain Coffee Roasters ( GMCR), "a great way to play the turbo-charged single-serve home market," and said Caribou Coffee ( CBOU) was the pick for the speculative crowd. A coffee stock that Cramer didn't like was Peet's Coffee & Tea ( PEET), which he said has backed itself into a corner and is too expensive. Of Starbucks, he lauded the company's ability to create a welcome ambience, and noted the company's 23 million Facebook fans. His main bullish point though was the international growth, especially its push into Asia. He said he thinks the stock is a "great buy under $40" and was positive about the company's entry into the single-serve market. Green Mountain got high marks because its Keurig business is growing steadily, and can no longer be dismissed as a flash in the pan. Cramer noted that he moved away from Green Mountain because of past accounting issues, but that he's now back on board, likening the company's ability to sell K-cups for the Keurig machines to a 'razor blades for razors' business model. Cramer's affection for Green Mountain was the same reason he was skeptical about Peet's, which he also feels is too expensive.