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 0.00%) and United Technologies (UTX: 81.74 0.00%) 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.

Jim Cramer told investors on yesterday’s Mad Money show that Intel is “just too cheap”. It is astounding that Intel trades at a lower multiple than International Paper (IP: 30.95 0.00%) or Dow Chemical (DOW: 33.95 0.00%). Cramer said that he has never seen that happen before.

Cramer believes the market has oversold the entire semiconductor sector. However, the strong results from Intel along with bullish data from Novellus (NVLS: 48.44 0.00%) and ASML Holdings (ASML: 45.29 0.00%) point to reasons to be bullish on the sector.

Nvidia
Nvidia shares have fallen over 41% in 2010. The company supplies chips that power netbooks, laptops and smartphones. They also make semiconductors that power Adobe’s (ADBE: 32.10 0.00%) PowerSuite 5. Nvidia’s stock has been hammered this year, but Cramer predicts the stock will be one of the top gainers in the second half of the year.

Jabil Circuit
Jabil Circuit continues to report double-digit growth, but the stock has fallen 15% this year. The falling euro has negatively impacted the stock which has substantial European exposure. However, Jabil trades at only 7x consensus 2001 EPS. Wall Street expects revenues to grow 15% this year and 18% next year. With such a compelling valuation, Cramer recommends that investors buy the stock.

While the market has fallen 9% from its April highs, Mad Money host Jim Cramer believes the worst is over.

The financial reform bill appears set to pass. While the bill itself may not be entirely satisfactory to Wall Street, at least the market will not longer be weighed down by uncertainty.

The debt crisis in Europe appears to be contained. Just a month ago, Banco Santander (STD: 8.75 0.00%) was trading at a 52-week low, but has since jumped 50%.

It seems that the only remaining obstacles left to address are the Gulf oil spill and unemployment. Fortunately, it seems as though BP (BP: 46.97 0.00%) is nearing a solution to stop the oil spill. Of course it will take some time before the labor markets return to full strength.

Overall Cramer is very optimistic and he feels that we have already experienced the market lows for this year.

The financial reform bill has certainly caused some consternation among the financial stocks. Wall Street always hates uncertainty and the ambiguity of the 2,000 pages of the financial reform bill has caused plenty of it.

Yesterday, the Dow close down 268 points in what Jim Cramer described as a “horrible, stinking bad day” that was reminiscent of “Stalingrad or Verdun.” Well, maybe not quite that bad.

After looking at the carnage of the financial sector there is one stock that Cramer feels offers investors lots of upside.

Cramer describes Citigroup (C: 34.23 0.00%) as a “pitiful giant”. The stock has suffered from a mishandled attempt by the Treasury to sell their stake in Citi. These strong selling pressures have pushed Citi’s stock price down and there’s more still to come.

However, on a technical basis it appears that Citi is oversold. The Street.com technical analyst Tim Collins believes that the current prices provide a good entry point. He predicts that the stock could rise to $4.60 – $5.00 in the short term.

Cramer is even more positive on the fundamentals. He has faith in CEO Vikram Pandit and likes the firm’s mix of domestic and international business. Most importantly, Cramer believes that Citi has little exposure to housing which is once again become a huge problem area.

Cramer set a $12 price target for Citigroup over the long term. He recommends that investors buy Citi at its current levels.

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 0.00%), 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 0.00%)

N – Netflix (NFLX: 124.00 0.00%)

D – Deckers (DECK: 87.25 0.00%)

I – Intuitive Surgical (ISRG: 491.915 0.00%)

E – Express Scripts (ESRX: 50.78 0.00%)

S – Salesforce.com (CRM: 123.80 0.00%)

On the other end of the spectrum is Research in Motion (RIMM: 16.49 0.00%). 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 0.00%) 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 0.00%) and doesn’t seem to have any product on the horizon to compete effectively with the iphone.

It seems that the bad news has been capturing all of the headlines of late. Former hedge fund manager, Jim Cramer pointed out yesterday that good news from several great American companies have been seemingly ignored by investors.

Nike (NKE: 105.93 0.00%)
The shoe maker reported this week that they have “never been more profitable”. NKE had record cash flows of $2.8 billion and earnings that were $.12 above Wall Streets estimates. Yet the stock dropped 4% following the earnings report.

Bed Bath and Beyond (BBBY: 61.10 0.00%)
BBBY shares dropped over 5% yesterday despite a 53% improvement in earnings per share and a 40% increase in gross margins.

Adobe Systems (ADBE: 32.10 0.00%)
The tech giant reported a 34% growth in revenues on Tuesday. The next day the stock dropped over 7%.

Darden Restaurants (DRI: 49.13 0.00%)
The owner of Red Lobster and Olive Garden reported earnings that were below Wall Street’s expectations, but did maintain their full year guidance.

Jabil Circuit (JBL: 23.97 0.00%) and CarMax (KMX: 29.92 0.00%) also reported bullish data, but their stocks dropped.

Cramer feels that all 6 of these companies are great American stocks to consider. They all have impressive fundamentals which should lead their stocks higher when a rally begins. For now though, Cramer recommends waiting for the market to stabilize before buying these stocks.

Given the tremendous increase in Apple’s (AAPL: 476.68 0.00%) stock price, many analysts are nowwondering if Apple stock has become expensive. However, others claim that AAPL shares are cheap based on the furious earnings growth experienced by the company.

Yesterday, Deutsche Bank (DB: 46.26 0.00%) increased their earnings estimates and price target for Apple. Just a few months ago, they expected Apple $13 a share. Now with the release of iPhone 4 and the iPad, Apple is expected to earn $18 per share.

These earnings increases has resulted in Apple becoming an “accidently cheap stock” according to Mad Money host Jim Cramer. He believes that Wall Street analysts have consistently underestimated Apple. Piper Jaffray (PJC: 24.12 0.00%) had originally estimated that Apple would only sell 900,000 iPads by June. S.C. Bernstein had estimated much higher, but still only predicted 2M iPad sales. Of course Apple just announced that they have already sold 3M iPads.

Cramer likes that fact that analysts are increasing their estimates for Apple, but thinks Deutsche Bank’s estimates may still be too low. Cramer predicts that the tech giant could earn $19 per share. That would mean that Apple only trades at a multiple of 14x earnings and could result in significant upside in the share price.