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.

As investors have flocked to industrials stocks like Caterpillar (CAT: 114.04 +0.20%) and United Technologies (UTX: 81.74 +1.82%) in recent weeks, Cramer’s CANDIES stocks have underperformed the S&P 500. In fact, Chipotle is the only stock to have outperformed the S&P 500 index since Cramer announced this list of CANDIES stocks on June 3rd.

Cramer is still very committed to these seven stocks and believes they are resilient enough to bounce back from their recent subpar performance. On yesterday’s Mad Money show, Cramer reviewed the earnings performances from the five CANDIES stocks have reported so far.

Chipotle
Cramer called Chipotle’s second quarter results “absurdly unbelievable”. Rising Same-store sales (SSS) and a phenomenal growth rate has this stock primed for further gains.

Apple
Apple reported an “insanely great beat” driven by strong Mac, iPod and iPhone sales. Even in Europe, Apple saw sales jump 66% despite many people writing off Europe as a “challenged area”.

Deckers
Deckers reported earnings that were $.13 above Wall Street’s expectations driven by a 34% growth in revenues. Cramer believes this demonstrates that the bull market is alive and well in the shoe sector.

Intuitive Surgical
ISRG reported similar strong growth with revenues up 34% and earnings $.15 higher than the Street was expecting.

Netflix
The one CANDIES stock that disappointed investors was Netflix. However, Cramer believes that investors over-reacted to NFLX’s earnings. “’m standing by it because of its stable and growing subscription business” said Cramer.

Netflix did beat consensus estimates and raised their guidance, but they also reported a 7% decline in revenue per customer. Cramer believes that Wall Street analysts are too focused on the declining revenue per customer at Netflix and ignoring its fabulous subscription growth. The number of Netflix subscribers reached 15 million this quarter, and increase of 42% from last year.

Cramer pointed out that the earnings estimates for all of seven the CANDIES stocks have increased 30 – 50% year/year. The only exception was Deckers (DECK: 87.25 +1.21%), which only increased by 15%. However, Cramer says “the analysts are wrong” about Deckers, and the stock is up 118% since last year.

A review of the seven CANDIES stocks:

C – Chipotle Mexican Grill (CMG: 374.02 0.00%)

A – Apple (AAPL: 476.68 +1.67%)

N – Netflix (NFLX: 124.00 -3.03%)

D – Deckers (DECK: 87.25 +1.21%)

I – Intuitive Surgical (ISRG: 491.915 -0.42%)

E – Express Scripts (ESRX: 50.78 -0.42%)

S – Salesforce.com (CRM: 123.80 +0.81%)

On the other end of the spectrum is Research in Motion (RIMM: 16.49 -1.32%). This was formerly one of Cramer’s favorite picks, but stock has been delivering disappointing earnings growth. As a result RIMM shares are down 24%, but Cramer still doesn’t think the stock is cheap. Most Wall Street analysts agree and are suggesting that the stock price will go even lower.

It seems like Research in Motion may be the next Nokia (NOK: 5.21 +1.56%) or Motorola (MOT: 0.00 N/A). Both stocks have substantial declines in earnings momentum and as a result they are now trading near their 52-week lows. Research in Motion is losing market share to Apple (AAPL: 476.68 +1.67%) and doesn’t seem to have any product on the horizon to compete effectively with the iphone.

“It has gotten way too gloomy around here,” said Jim Cramer on his CNBC Mad Money show. However, Cramer said that Union Pacific (UNP: 114.35 -0.29%) is one stock that is “good and getting better.”

The railroad stock has benefited from recent bullish comments by CEO James Young. Mr. Young stated that the outlook for UNP was strong given that carloads are up 17% for the quarter so far, and pricing has risen 3.5%. All six of Union Pacific’s businesses have seen volume growth from the end of the second quarter up to now.

The railroad is also expecting more price increases in the second half of the year and is already ramping up for the expected demand increases. The company has rehired 2,000 former workers. And the outlook at the railroad is much cheerier than last year when the firm laid off over 3,000 workers.

This success from Union Pacific has surprised some investors, since railroad stocks generally only perform well when the economy is humming along nicely. However, Union Pacific’s CFO said the company is taking business away from their trucking competitors.

With a P/E multiple of 13 and a 12% growth rate, Cramer believes that Union Pacific is cheap and recommends investors jump aboard the train before it leaves the station.