Jim Cramer's 'Mad Money' Recap: A Winning Market

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NEW YORK (TheStreet) -- When good things happen that aren't suppose to happen, that's when you get a winning stock market, Jim Cramer said on "Mad Money" Wednesday. Cramer said there have been a host of negatives that were supposed to be keeping stocks lower but many of them have simply failed to materialize.

The financials have been heading lower quarter after quarter, Cramer noted, but today Bank of America (BAC) delivered a true upside surprise, a move which has that stock already up 10% for the year.

Intel (INTC) was supposed to be in horrible shape with the PC market declining. Yet, many of the component makers, like Seagate (STX), has all been rallying.

Even maligned businesses like construction equipment and oil tankers have been bucking the negative trends, with Caterpillar (CAT) seeing strong sales and low inventory in the U.S., while Nordic American Tanker (NAT) is seeing day rates for its ships soar.

Even cable TV, which is supposed to be suffering from cord cutters, is seeing stocks such as Comcast (CMCSA) hit 52-week highs as the bidding war heats up for Time Warner Cable (TWC).

This is what happens when the bad news isn't that bad, Cramer concluded. There's likely more positive news yet to come.

Executive Decision: Barry Davis

For his "Executive Decision" segment, Cramer sat down with Barry Davis, president and CEO of Crosstex Energy (XTEX), an oil and gas master limited partnership that's up 80% since Cramer last checked in with the company a year ago.

Davis said these are exciting time for Crosstex and a new era for the industry as the oil and gas revolution in America continues. He said his company's new partnership with Devon Energy (DVN) will help provide a diverse portfolio of assets that's over 95% fee-based, meaning they're not tied to the price of the commodities they move.

Davis continued that Crosstex and the new entity that will be created with Devon have multiple avenues for growth, from expanding their platform organically to having partners like Devon drop assets into the MLP, to additional mergers and acquisitions.

One of the challenges the oil industry now faces is production growth is not in the same places it has always been. But that plays right into the hands of Crosstex, which helps connect production to consumption.

Cramer said that even with Treasury yields on the rise, the yields from MLPs like Crosstex remain an attractive source of growth and income.

The Power of Technical Analysis

Technical analysis should be embraced by investors, Cramer told viewers, as he circled back to Carolyn Borodon's fabulous call on Apple (AAPL), a stock Cramer owns for his charitable trust, Action Alerts PLUS, on Monday.

Borodon once again correctly predicted a rally in Apple, on a bad day when the markets looked awful. She indicated that if Apple could break through resistance just above $534 a share it would trigger a sizable rally.

That rally occurred, as Apple is now trading at $557 a share. Boroden thinks the next stop for Apple is $587, or possibly even $603 a share if the stock can jump past its next resistance between $562 and $565 a share.

Cramer said he's a believer in Borodon because the cynicism surrounding Apple is totally out of sync with reality and no one is giving the company the benefit of the doubt about its opportunities in China and the possibilities of new product categories.

Lightning Round

In the Lightning Round, Cramer was bullish on Himax Technologies (HIMX), Alcatel-Lucent (ALU), Kraft Foods (KRFT), ITT Industries (ITT), Noble Energy (NBL) and Cemex (CX).

Cramer was bearish on Emerald Oil (EOX).


Executive Decision: Michael Mussallem

For his second "Executive Decision" segment, Cramer spoke with Michael Mussallem, chairman and CEO of Edwards Lifesciences (EW), one of last year's laggards that is now up 7% so far in 2014.

Mussallem commented on his company's recent legal win against Medtronic (MDT) for patent infringement. He called the decision a big win for his team as it's the second time a jury has found in the company's favor.

Mussallem said Edwards has always been an innovator, inventing the technology that allows heart value implants without the need for open heart surgery.

When asked why the company lowered expectations for Wall Street analysts, Mussallem said there was never a question of if competition was coming, only when. Now that it's here, it's only prudent to be realistic.

That said, Mussallem touted his company's new "Sapien 3" technology as the next generation of treatments, something the competition will not be able to mimic for quite some time.

Cramer said Edwards has a lot of great technology and last year's laggards may just be this year's big winners.

Am I Diversified?

In the "Am I Diversified?" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets.

The first portfolio included Borg Warner (BWA), BEA Aerospace (BEAV), Whole Foods Markets (WFM), Regeneron (REGN) and American Realty Capital (ARCP).

Cramer said this portfolio was totally diversified.

The second portfolio's top holdings included SPDR Gold Shares (GLD), Phillip Morris (PM), Standard Pacific (SPF), Energy Transfer Partners (ETP) and KBR (KBR).

Cramer also blessed this portfolio as properly diversified.

The third portfolio had Yum! Brands (YUM), Gilead Sciences (GILD), Discovery Communications (DISCA), Linn Energy (LINE) and Boeing (BA) as its top five stocks.

Cramer said he was also a fan of this caller's portfolio.

The fourth portfolio's top stocks were Google (GOOG), General Motors (GM), Goldman Sachs (GS), General Electric (GE) and Gilead Sciences.

"What a great portfolio," Cramer concluded.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

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

To email Scott about this article, click here: Scott Rutt

Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL, BAC, CAT, GE, GM, INTC, LINE, NBL and YUM.

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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