The Wall Street Journal had published an article titled “Is a Crash Coming? Ten Reasons to Be Cautious”. On yesterday’s Mad Money show, Jim Cramer refuted those claims and showed investors 10 reasons not to be cautious or at least not overly cautious.

1. The WSJ stated that the market’s already very expensive with stocks trading at 20 times cyclically adjusted earnings. However, Cramer pointed out that stocks are actually the cheapest they have been in 30 years, when you take into account other factors.

2. The Fed is concerned about growth or lack thereof. To Cramer, this doesn’t seem like a bad thing. Would investors be more comfortable if the Fed wasn’t concerned?

3. There’s too much bullish sentiment in the market. According to Cramer, the market is extremely bearish right now. This sentiment is being shown in the vast sums of money that continue to be transferred out of stocks and into bonds.

4. Investors are worried about deflation. Cramer feels that there is more reason to be concerned about inflation. Cramer believes that Fed Chairman Ben Bernanke is an expert on fighting deflation.

5. Corporations still owe the government money. Cramer says that company’s balance sheets are getting healthier and delinquencies are falling.

6. Unemployment remains high. Cramer did acknowledge that high unemployment is hindering economic growth. However, he believes that high unemployment is already priced into the market.

7. Housing continues to struggle. Cramer also conceded that the housing market remains very disappointing. However, he believes that housing prices have bottomed and that higher prices are in store. The decline in housing starts should also help lift prices.

8. Labor Day is approaching. This hardly seems like a good reason to be bearish since Labor Day occurs every year. Cramer feels that stock fundamentals should be used in selecting stocks, not the calendar.

9.Gridlock in Washington. Cramer doesn’t see this as a bad thing. After all, the corporate world doesn’t need anymore wide-sweeping regulations passed.

10. Amber alerts. Cramer labeled this a “piece of vulgosity.” He believes that fundamentals have never been stronger.

While Bernanke painted a fairly grim picture as he testified before Congress yesterday, former hedge fund manager Jim Cramer gave investors a more optimistic view on his Mad Money show.

Here are 10 positive signs for stocks that investors should be aware of:

1. China
The Baltic Freight Index has been up for three straight days after being down for months. This has been driven by increasing demand from China which seems to be experiencing a soft landing.

2. Brazil
It seems that almost every company is talking about Brazil on their conference calls. The Latin American country is becoming a serious player in the global economy.

3. Europe
One early surprise this earnings season is that the euro hasn’t dragged down quarterly results. The euro is now in recovery mode and European banks like Banco Santander [(STD: 8.75 0.00%) are much stronger than they appeared just a few weeks ago.

4. Financial regulation
The uncertainty surrounding the financial reform bill is now over. Yesterday, President Obama signed the bill into law and so now financial firms can begin evaluating the impact.

5. Gridlock in Washington
After passing massive reforms to the healthcare and financial systems, the Democratic-controlled Congress is likely to face more gridlocks in the future. The American public has expressed their dissatisfaction with President Obama and Congress and it is unlikely that Democrats will be successful in the November elections.

6. Bernanke
Interest rates are extremely low courtesy of Fed Chairman Ben Bernanke. He is aggressively working to get America out of its current economic doldrums.

7. Strong earnings
We have seen several strong earnings reports particularly from tech stocks like Apple (AAPL: 476.68 0.00%) and Qualcomm (QCOM: 61.47 0.00%), but also from 3M (MMM: 87.97 0.00%), United Technologies (UTX: 81.74 0.00%), and Eaton (ETN: 51.65 0.00%).

8. Cheap Valuations
Stock valuations are very cheap right now, especially when compared to the minimal rates you get from owning bonds right now. Cramer believes that stock valuations are the lowest that he has seen in 30 years of investing.

9. Investor sentiment
Investor sentiment has been so bearish recently…it can only improve from here. That means that a lot of market sellers can be converted to buyers which will lift the market higher.

10. Long-term Stock Charts
The big gains experienced by the markets last year are getting ready to drop off the long-term stock charts. This will make the current market levels look much more attractive which could make many technical analysts much more bullish.