Cramer's 'Mad Money' Recap: Bullish Market Signs (Final)

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NEW YORK ( TheStreet) -- "We're witnessing bull market behavior," Jim Cramer told his "Mad Money" TV show viewers Tuesday, as he outlined six reasons why today's market looks just like the bull markets of yesteryear.

1. Skeptics abound. Cramer said where there are skeptics, there is often a bull market. And in today's markets, there are plenty of naysayers trying to keep investors out of the market, he said.

2. Stocks are acting rationally. Cramer said for the first time in recent memory, good news actually matters for individual stocks. Moreover, good news is being taken at face value and not through a prism of global, macro economic events.

3. Disappointers aren't going down. Even the worst of stocks are only down for a few days, noted Cramer. From Goldman Sachs ( GS) to Alcoa ( AA), even the worst of earnings can't keep these stocks down for long.

4. Stocks are beating resistance. Cramer said that countless stocks from Microsoft ( MSFT) to McDonald's ( MCD) are blowing past resistance levels they've struggled with for years.

5. Winners keep taking share. Whether its Apple ( AAPL), a stock which Cramer owns for his charitable trust, Action Alerts PLUS, or Starbucks ( SBUX), the leaders in the market are taking market share from rivals.

6. Strength is coming from all sectors. Cramer said the breadth of the market rally is impressive, with everything from oil to retail, pharma to technology participating all at the same time.

Cramer said after a decade of stagnant market growth, investors may not even remember what a bull market looks like. This, he concluded, is what it looks like.

Bond Weakness

In the "Off The Charts" segment, Cramer went head to head with colleague Tim Collins over the chart of iShares Barclays 20+ Year T-Bond Fund ( TLT) to see if the 34% run in U.S. treasuries last year can continue this year.

According to Collins, the daily chart of the treasury index is worrisome, with the index consistently making lower highs as its directional trend indicators all point lower. He noted that the force indicator, a measure of price and volume, is also trending lower.

Collins also pointed out that bonds have many resistance ceilings, such as at $120, $119 and $118, but far fewer and much wider levels of support at $116, $112 and $108. Cramer said with so many chart watchers following bonds, a slip below $116 would be significant.

Turning to the weekly chart, Collins noted similar patterns with resistance on the upside and a long downward pattern towards the crucial level of $116 a share. The TRIX, a triple exponential moving average has also signaled a bearish crossover, yet another warning sign for the stock, he added.

Cramer agreed with Collins, noting that after trading in lock-step with the VIX volatility index, Treasuries have now diverged. He said this makes sense since the VIX measures fear and when investors fret, they buy bonds. But with the economy seemingly turning for the better, Treasuries are the last place investors want to be, he said, and that is showing in this bond fund's stuttering performance.

Cramer said the time to sell bonds and bund funds is now, as they will be dead money as stocks continue to heat up.

Union Pacific vs. Northfolk Southern

The next installment of "All Request Week" was a tweet that asked Cramer to compare railroads Union Pacific ( UNP) and Norfolk Southern ( NSC). He was only too happy to oblige.

Cramer said he's a big fan of the rails, as they are one group that directly benefits from a growing domestic economy. He also enjoys the rails thanks to the happy duopoly that Norfolk and Union Pacific have created. That said, these railroads are not the same, said Cramer, despite the fact that both flirt with their 52-week highs and have a 16% long-term growth rate.

Cramer said he prefers Union Pacific, due in part to a repricing effort that began in 2003 for both companies. While much of the repricing to higher levels is already completed, Cramer noted that Union Pacific still has the most to gain as it completes its transition.

But the real deciding factor is coal, said Cramer. With the political favor of coal waning and the price of cleaner natural gas plummeting to historically low levels, Cramer said coal will be in real trouble going forward. This bodes better for Union Pacific, as it only get 22% of its revenues from coal vs. 31% for Norfolk. But the distinction is made even more pronounced since Union Pacific is mainly a western U.S. player, where coal is cleaner. Cramer said that Norfolk's coal on the east coast is dirtier and more subject to regulation and decline.

When it comes to earnings momentum, Union Pacific also takes the lead, with a 18-cent-a-share earnings beat this past quarter compared to a five-cent-a-share miss for Norfolk on disappointing revenues. Cramer said that Union Pacific comes out the winner on all fronts.

Smallest Heart Pump

In the "Executive Decision" segment, Cramer sat down with Michael Minogue, chairman and CEO of Abiomed ( ABMD), a medical device maker that recently surprised Wall Street with a seven-cent-a-share earnings beat vs. estimates of a penny-a-share loss.

Minogue displayed his company's Symphony product, which is the world's smallest heart pump and is able to provide between 2.5 and five liters of blood per minute. He said that for patients who have suffered a heart attack, a minimally invasive procedure can install the pump into the heart and help it rest and recover. This compares to the costlier, more invasive procedures on the market today which often lead to the need for a later heart transplant.

Minogue went on further to noted that Abiomed is now in 605 hospitals, has over 7,000 patients and 72 patents, along with $70 million in cash and no debt. He said new clinical data on Abiomed's devices will be coming soon and the company is still in the early phases of a major rollout of its devices.

Cramer said that Abiomed is a compelling story, but cautioned investors that the company is small and should be viewed as a speculative investment.

Lightning Round

Cramer was bullish on Cedar Fair ( FUN), Paychex ( PAYX), Oneok ( OKE), Carrizo Oil & Gas ( CRZO), EOG Resources ( EOG) and Take-Two Interactive ( TTWO).

Cramer was bearish on IntraLinks Holdings ( IL).

IPO Warning

In his "No Huddle Offense" segment, Cramer said "buyer beware" when it comes to the pending IPO for Caesar's Entertainment. He said the details of this IPO have shown that only a tiny sliver of the available shares are being offering in this IPO, leaving investors at risk as a flood of secondary offerings are likely to follow.

Cramer said the regulators can do little to protect investors from this kind of misleading deal. He said the IPO is sure to generate excitement and the sliver of shares likely to pop and draw in investors. But Cramer said it seems wrong to offer stock in this manner, knowing they will be devalued in the future as the bulk of remaining shares comes to market.

"Stick with clean companies that have crystal clean balance sheets," Cramer concluded.

--Written by Scott Rutt in Washington, D.C.

To contact the writer of this article, click here: Scott Rutt.

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At the time of publication, Cramer was long Apple.

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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