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.

Here is a review of the performance of Jim Cramer’s stock picks from Tuesday’s Mad Money show.

BJ’s Wholesale Club (BJ: 0.00 N/A)
In part 2 of the weeklong look at the next “discount king”, Jim Cramer focused on Costco (COST: 84.28 -0.05%) and BJ’s Wholesale Club. Cramer likes their membership model which also encourages customers to continue regular shopping habits. However, Cramer prefers BJ’s because the company is currently increasing their same store sales, while Costco has been flat or even slightly declining. Cramer also likes the fact that BJ’s offers nearly twice as many products as Costco, but has only one third as many stores as Costco. This presents the company with tremendous growth opportunities which BJ’s management intends to capitalize on. Finally, BJ’s currently trades at a discount to Costco’s valuation, but Cramer believes that will soon change. BJ’s stock was up 1.4% on the recommendation, while Costco gained 1.2%

Vale (VALE: 26.42 -0.34%)
Shares of the mining company dropped 0.7% despite a moderate recommendation from Jim Cramer yesterday. Morgan Stanley and HSBC recently put out conflicting reports with one upgrading and the other downgrading VALE’s stock. Cramer sided on the side of the upgrade due to rising iron ore and nickel ore prices and continued demand outside of China.

Cramer’s Lightning Round stock picks:

Medivation (MDVN: 68.68 -4.14%) dropped 0.7% – Cramer recommends the stock only as a speculative play.

Babcock and Brown Air Limited (FLY: 13.54 +0.15%) rose 4.2% – Cramer was bearish on this stock because he doesn’t like the aircraft leasing business and has been burned before.

Union Pacific (UNP: 114.35 -0.29%) dropped 1.0% – “Union Pacific is a great company that I think, at any pullback you pull the trigger. There is a lot more room to run.”

Seaspan (SSW: 16.09 -2.19%) fell 0.3% – Cramer feels that the stock is doomed.

Alcoa (AA: 10.67 0.00%) dropped 0.7% – “I think Alcoa is dead money.”

Boise (BZ: 8.35 +0.48%) fell 2.8% – “I think we missed that stock already.”

Hexcel (HXL: 26.71 +1.21%) declined 0.4% – “I don’t want to be in Hexcel.”

First Niagara Financial Group (FNFG: 9.74 -0.81%) rose 0.4% – “I think First Niagara might be best in show. It’s got a dividend.”

Weyerhaeuser (WY: 20.56 +0.88%) jumped 0.9% – Cramer is bullish on the stock and believes it is cheap.

Anadarko Petroleum (APA: 105.11 +0.55%)
Jim Cramer interviewed Anadarko Petroleum’s CEO Jim Hackett on yesterday’s Mad Money show. Mr. Cramer has been very bullish on the prospect of natural gas being a bridge fuel from oil to wind or solar energy. Cramer feels that APA is one of the best natural gas stocks and believes that natural gas stocks could double. Despite the bullish endorsement, Anadarko’s stock slid 2.4%.

Fannie Mae (FNM: 0.00 N/A)
Another stock that seemed to buck the “Cramer effect” was Fannie Mae. Cramer said investors were foolish to speculate on Fannie Mae and Freddie Mac (FRE: 0.00 N/A) given their uncertain future. However, investors seem to shrug off the warning that these shares could eventually be worthless and Fannie Mae’s stock shot up 9.4%.

Banco Bilbao (BBV: 0.00 N/A)
Banco Bilbao, the Argentina bank stock, rose 5.4% on Tuesday after Cramer said he preferred the stock over Banco Santander (STD: 8.75 +1.86%).

TJX Companies (TJX: 34.42 -0.52%)
TJX rose 3.6% after Cramer featured the stock in his weeklong special feature on discount retailers. While Cramer likes TJX’s clean balance sheet and growth, he believes the stock has little upside left. The company is no longer benefitting from retailers dumping inventory at fire sale prices and is currently having trouble with their Marshalls and Homegoods stores. Cramer thinks TJX has seen better days and is bearish on the stock. However, bullish investors seem to have ignored his warnings.

Other Cramer stock picks:

First Solar (FSLR: 45.81 -1.67%) rose 3.3% – Cramer is bullish on solar stocks even though they are out of fashion right now.
Citigroup [[C] gained 1.1% – Again investors didn’t seem to heed Cramer’s warning that the stock has already gone up too much too fast.

Wendy’s (WEN: 5.04 +0.80%) stock soared 6.3% after Cramer said Wendy’s is “the next big fast-food stock to make its move to higher territory”. Cramer sees a big opportunity for Wendy’s to expand its breakfast menu which currently only accounts for 2% of their total orders. The company is also expanding internationally with new locations in Saudi Arabia and Singapore. Cramer believes that Wendy’s is a buy and investors appear to be jumping in. 

Dell (DELL: 18.05 +1.23%) fell 1.6% after Cramer hinted that he is bearish on the stock. The Mad Money host feels that Dell won’t have a very good quarter and that the stock price has probably stalled. “.I think you only have a couple of points left in Dell”, said Cramer. 

U.S. Steel (X: 30.94 -2.31%) was another bearish stock pick of Mr. Cramer. The materials stock fell 1.5% after Cramer said the stock looks too expensive relative to Nucor (NUE: 45.31 -0.04%) after its recent monster move. 

Other Cramer stock picks: 

Yahoo (YHOO: 15.78 -0.32%) fell 1.2% – “The problem is that Carol Bartz set the bar so high she can only disappoint. At a certain price it is good. I don’t know about the earnings…don’t buy. I was expecting more myself and was disappointed.”

Oracle [[ORCL] inched up 0.1% – “I would like to be a buyer right now”

Navistar (NAV: 46.66 +0.86%) dropped 0.1% and Paccar (PCAR: 43.79 -0.18%) fell 2.5% – “I think the world of Navistar. I also like PCAR. I think the trucking cycle will come back, but it is a 2010 story not a 2009 story.”

Duoyan Global Water (DGW: 0.00 N/A) a Chinese stock that many had probably never heard of before Thursday night’s Mad Money show, gained a whopping 8.6% on Friday. In the Lightning Round segment Cramer stated, “It is a Chinese water company, the answer to a lot of people’s prayers is to try to find some play on water.” However, Cramer didn’t want to embrace DGW despite being a big believer in China. Nevertheless, the mere mention of the stock seemed to put it on the radar screen for many investors. 

Mylan (MYL: 22.89 +1.60%) gain 3.3% despite the fact that Cramer said he preferred Teva Pharmaceuticals (TEVA: 44.94 +0.29%) over Mylan. “You know, it has been a hot stock. If you are going to be in there, I like Teva Pharmaceutical Industries Ltd.” Teva’s stock finished virtually unchaged. 

Finally, Palm (PALM: 0.00 N/A) gained 2.2% on Friday even though Cramer recommended selling the stock and taking profits. A month ago Cramer was very bullish on Palm ahead of the release of the Pre phone, but with rumors of high return rates and low sales volumes Cramer would be selling the stock now. 

Other Cramer bullish stock picks: 

Google (GOOOG: 0.00 N/A) gained 2.1% – Cramer is bullish on tech stocks because these companies keep coming out with new products and don’t need any bailout money.

Aruba Networks (ARUN: 23.55 -1.96%) rose 1.6% – “It is a buy, buy, buy… it is a little $7, $8 stock… I think that it goes higher.”

Apple (AAPL: 476.68 +1.67%) jumped 1.4% – Cramer is clearly a strong fan of Apple and he believes it is the most “Washington-immune” tech stock and predicts the stock will reach $200.

SanDisk (SNDK: 46.84 +2.03%) shares jumped 9.1% and Cramer commented that Intel’s (INTC: 26.85 +0.79%) recent earnings beat and positive comments from Novellus’ (NVLS: 48.44 +0.50%) conference call mad SNDK a buy. Novellus had discussed significant price increases on NAND flash memory. Since Sandisk is the largest producer of NAND and flash chips, rising prices coupled with increasing demand should positively impact SanDisk’s stock price. The stock positioning as an unloved company with low expectations give it even more room to rise. 

Jim Cramer declared yesterday that FedEx’s skeptics are wrong and the stock responded positively gaining 7.7%. While the company had indicated last quarter that their business was improving, many criticized those comments as being too premature. According to Cramer, “Does the stock not tell you that FedEx is spot on? This stock should be going down. The transports are struggling and struggling to break out here. I think they do.” 

While Cramer ordinarily does not recommend individual Chinese stocks on his Mad Money program, A-Power Energy Generation Systems (APWR: 0.00 N/A) benefited from a de facto recommendation. Cramer stated, “You know, I think they’re good… I wish I knew more about the Chinese market.” That was enough for the market to lift APWR’s shares up 7.4%. 

Other Cramer bullish stock picks: 

Peabody Energy (BTU: 36.82 -1.58%) gained 4.1% – “We don’t like coal on this show because President Obama seems to be not that big a fan of coal… Peabody is the play for this situation.”

Intel (INTC: 26.85 +0.79%) up 2.5% – Cramer believes that Intel’s better than expected earnings is single-handedly responsible for the recent market rally. The company reported strong sales and earnings, and Cramer would keep buying the stock, which he believes has more upside potential.

American Express (AXP: 51.64 -0.94%) jumped 3.9% – Cramer speculated that the credit environment could be stabilizing before the unemployment situation begins to improve. While this seems counter-intuitive, Cramer cited American Express CEO Ken Chenault’s remarks about signs of green shoots as reason to pay more attention to credit card companies.

Capital One Financial (COF: 48.38 +2.41%) increased 4.2% – Cramer believes that Capital One Financial’s better than expected performance is another sign that credit is stabilizing. He stated, “I would not buy these names if credit weren’t stabilizing, because credit is my fear, not unemployment. Credit is stabilizing. That changes the story from being one where I’m nervous and worried to one where I say ‘How much upside?’ “

The one stock lifted yesterday by the Cramer effect was Old National Bancorp (ONB: 12.39 0.00%) which rose 1.7%. Cramer’s call on ONB, “It is a really, really good bank. I would keep buying more. It is not an interesting situation, but it is a cheap situation.” 

Meanwhile, other of Jim Cramer’s bullish stock picks saw massive declines. 

Schlumberger (SLB: 78.41 -1.37%) dropped 9.1% – even after Cramer said that at $50 SLB was a good buy and the stock is having a good year in spite of a decline in crude oil.

Transocean (RIG: 49.44 +0.16%) fell 9.4% – falling to $67 after Cramer recommended buying the stock at $60.

Boeing (BA: 75.46 +0.94%) was down 8.5% – Cramer said that despite the problems Boeing has had with making the Dreamliner plane, the stock still has a safe 4% dividend yield and he would buy Boeing at these prices.

AT&T (T: 30.02 -0.07%) dropped 2.1% – “I think buying AT&T is a very smart thing to do. I know it has done nothing, but you get that dividend and that dividend is safe.”

Adobe Systems (ADBE: 32.10 -0.56%), Southwestern Energy (SWN: 32.93 +1.35%) and Ultra Petroleum (UPL: 23.97 -1.24%) all dropped by over 2% today despite bullish comments yesterday by Jim Cramer on his Mad Money show. 

However, Mr. Cramer’s bearish picks performed quite well today. Topping the list would be THQ’s (THQI: 0.6114 +0.23%) more than 5% decline said he wouldn’t touch the stock or the gaming industry. 

Exxon Mobil (XOM: 85.32 -0.64%) and Merck (MRCK: 0.00 N/A) also dropped after Cramer expressed bearish sentiment about both stocks. However, Johnson Controls (JCI: 32.50 -1.52%) did manage to eke out a weak gain after Cramer endorsed the stock as “the best of a really bad neighborhood”.