(Story updated to add Cramer's Lightning Round picks, comments on trading the banking sector and concluding comments on Apple derivative trades.) NEW YORK ( TheStreet) -- Sometimes it isn't what has happened that drivers the markets, but rather what hasn't happened. Those were Jim Cramer's sentiments as he told his "Mad Money" TV show viewers that perhaps its time to drop the cynicism about the market's recent rally and acknowledge everything that's actually gone right. Cramer took viewers down memory lane, back to late summer and early fall of last year. Back then, the markets were a buzz with out of control government spending that sipped off the first-ever S&P downgrade of U.S. government debt. The fear was that interest rates would skyrocket. But in reality, interest rates didn't rise, said Cramer, the moment of the downgrade was actually a good time to buy, not sell, U.S. bonds. The markets were also worried about a European bond collapse last year, Cramer recalled. The key metric was the Italian bonds: Would they reach 7% and send the contingent into recession? In retrospect, no. Cramer said here again, those that bet against the naysayers make a boatload of money as the leadership of the European Central Bank changed and interest rates were slashed, offering relief to all. > >> Bull or Bear? Vote in Our Poll The worries of 2010 were aplenty, said Cramer, and also included worries over the fallout from the MF Global bankruptcy, the continued housing decline and a hard economic landing for China. But time after time, things seems to work out better than expected, said Cramer. There wasn't a lot of fallout from MF Global, housing continued its gentle decline and China managed a soft landing. Cramer concluded by saying that its easy to get caught up in the cynicism, but sometimes its prudent to take a look back and see exactly where all of that pessimism has gotten us. In this case, significantly higher than where we were just six months ago.
Next Week's Game PlanCramer went over the stocks he'll be watching in next week's trading. On Monday, Cramer said he'll be listening to the Adobe ( ADBE) earnings, as he still thinks this will the be great software story for 2012. Cramer called Adobe "a keeper" even though the stock is up 20% from his October recommendation. For Tuesday, Tiffany ( TIF), Cintas ( CTAS) and Oracle ( ORCL) will be reporting. Cramer was bearish on Tiffany and Oracle, but said that Cintas is a buy, even at its 52-week high. Then on Wednesday, General Mills ( GIS) reports, along with Discover Financial ( DFS). Cramer said he likes Kraft ( KFT), a stock which he owns for his charitable trust,
Sorting Out Conflicting RecommendationsWhen analysts disagree, investors win, Cramer told viewers, as he dove into conflicting recommendations for Urban Outfitters ( URBN), a beloved retailer that saw its shares rise 3500% from 2002 to 2010, only to lose its way in 2011. Cramer explained that last week, after reporting disappointing results and announcing higher spending, an analyst at Morgan Stanley ( MS) rated the stock "overweight," while another at Citigroup ( C) confirmed its "sell" rating. So who's right? Cramer said the bull case hinged on improving merchandise leading to fewer markdowns, along with a new pricing strategy focused on more lower-priced options. The report also cited improving inventory management and a resumption of the company's store expansion over the next four years. But the bear case said the company's proposed turnaround is unlikely to happen, and if it does, will take a while to materialize. The analyst said Urban Outfitters will be unlikely to make still inflated expectations without an increase in gross margins, and markdowns still remain a persistent problem at the company. Cramer said he's siding with the bears on this one. He said investors can't assume the company's turnaround will happen and it would be irresponsible to just take management's word on it. Cramer said Urban remains in "show-me" mode and only when the company has proven that it can deliver on its promises should investors consider getting back in.