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NEW YORK ( TheStreet) -- "The economists don't know a thing about stocks," Jim Cramer proclaimed to his "Mad Money" TV show viewers Thursday as he sounded off against the academics who have been trying to keep individual investors out of our red-hot stock market. Cramer said the economists who warn that weakness in China and Europe will spell doom for U.S. stocks or those who warn that increases in our payroll taxes or the price of gasoline will cause our economy to stop in its tracks have been wrong so many times it's a wonder they still bother to offer their opinions. These macro-economic theories may work in the classroom, he said, but so far in the real world they haven't amounted to a hill of beans. Cramer once again explained how important the housing sector is to the U.S. economy. Rising home prices make people feel wealthier, while new home construction allows them to move around more freely. A rising stock market has boosted IRAs and 401(k)s around the country, he said, and the strong dollar has created bargains for those traveling or selling overseas. The economists cite the rise in payroll taxes and gasoline as major worries, but for most people those changes have been barely noticeable, said Cramer. The fact is that most people are better off now than they were four years ago and that simple notion has lifted stocks from Macy's ( M) to Panera Bread ( PNRA), Pfizer ( PFE) to REITs including Kimco Realty ( KIM) and Tanger Factory Outlets ( SKT). Cramer said it doesn't take a genius to see what's happening in the markets, it just takes someone looking at individual companies rather than macro-economic trends that are hazy at best. The economists don't know about stocks, he concluded, because if they did they would see how dead wrong they've been for months.
Off the ChartsIn the "Off The Charts" segment, Cramer dove into the health of the Nasdaq with colleague Tim Collins to find out if the tech-heavy average can prosper without the leadership of Apple ( AAPL), a stock Cramer owns for his charitable trust,
Looking at a daily chart of the Powershares QQQ ( QQQ) Collins noted the Nasdaq appears to be in a topping out process, with the stochastics -- a momentum indicator -- once again showing a double-dip pattern, similar to those in December and February, both of which resulted in a 3% to 5% pullback in the average. Collins thinks that with the Nasdaq trading in such a tight range, it may be poised to lose its floor of support and slide significantly lower. The weekly chart painted a similar picture, noted Collins, with another rising wedge pattern coupled with the relative strength indicator, or RSI, signaling a bearish divergence of lower highs and lower lows. Cramer said Collins' analysis is worrisome because it shows the money that's been flowing out of Apple may no longer be flowing into the Nasdaq at large, which means the index may not be able to hold current levels for much longer. "I don't like it when the chart is against me," Cramer concluded.
Three Cancer FightersFor the next installment in his series of speculative biotech stocks, Cramer highlighted ImmunoGen ( IMGN), Seattle Genetics ( SGEN) and Onyx Pharmaceuticals ( ONXX), three companies leading the fight against cancer. Cramer said shares of ImmunoGen have doubled since he first recommended it in November 2009, but this $1.3 billion company still has a lot of room to run. The company's targeted cancer therapies are far more potent than old-line treatments. While recent drug approvals may benefit ImmunoGen's many partners more than itself, Cramer said the approvals validate the technology and will translate into big wins for the company's many other drugs in its pipeline. He advised waiting for a pullback in the stock before buying in ahead of its April 12 analyst day. Shares of Seattle Genetics are up 50% since Cramer got behind the stock in June 2012 and, like InnumoGen, this company also makes targeted cancer therapies. While Seattle Genetics may only have one drug on the market, it has 20 drugs in clinical trials, including four in late-stage trials. With its host of partnerships, Cramer said, Seattle Genetics will receive over $3 billion in milestone payments over the next few years to aid in the continuation of its development.
Finally, there's Onyx, a larger, $6.2 billion company with three products on the market treating five different indications. With over $1 billion in sales so far, things look bright for this biotech, which has a potential $5 billion breast cancer treatment in the works. With no new approvals expected soon, Cramer said investors can also wait for this stock to offer a good entry point before buying in.