Jim Cramer's 'Mad Money' Recap: Running With the Bull Market

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NEW YORK (TheStreet) -- This is what a bull market is supposed to look like, Jim Cramer proclaimed on Mad Money Tuesday after a strong showing on Wall Street. Cramer said a bull market isn't supposed to be a walk in the park, it's supposed to transcend negativity -- which is exactly what this market has finally been able to do.

Cramer said he actually likes when the high-profile bulls start getting "cautious" and begin predicting a big correction. That's the time when all of the weaker holders get shaken out, he said, leaving only the true believers to march the markets market even higher.

Every bull market needs leadership from the transports, Cramer continued, and that was also on display today with UPS (UPS) and FedEx (FDX) on the move. Cramer said investors need to pick up some American Airlines (AAL).

Bull markets also need strong retail, but investors shouldn't take their cues from Wal-Mart (WMT) and Target (TGT), two big disappointments this quarter. Instead, focus on the dollar and the drug stores, which are taking share. Also on the mend: high-end retail including Tiffany (TIF) and Michael Kors (KORS).

Even the high-growth stocks were able to post a rally with Workday (WDAY) ending higher. Cramer said he likes Seattle Genetics (SGEN) and ISIS Pharmaceuticals (ISIS) to name a few.

Finally, don't forget the oil drillers such as EOG Resources (EOG) and Pioneer Natural Resources (PXD), Cramer concluded. This rally is legitimate, and investors need to be taking advantage of it.

Off the Charts

In the "Off The Charts" segment, Cramer went head to head with colleague Mark Sebastian over the chart of CBOE Volatility Index, commonly known by its ticker, the (VIX.X), to see where the markets might be headed next.

Using a chart of the S&P 500 and the VIX, Sebastian noted the VIX is now at its lowest level since 2008, which bodes well for the markets, as a low VIX led to a nice rally for the markets from 2002 through 2007.

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