Mad Money

Cramer: Hazards of skepticism

Cramer shares hazards of skepticism
VIDEO11:3411:34
Cramer shares hazards of skepticism

Jim Cramer wants to be a negative nelly. Really, really, really bad.

The market just keeps going higher, even though there are no new data points of consequence to explain it. What the heck is going on? People are just paying more for the same insights day after day, and the Dow, NASDAQ and keep climbing.

"I want to be more questioning, more critical of this market. But then again, that's like being skeptical of the damage that an 18-wheeler going 70 miles an hour can do to you as you stand in the middle of I-95," Cramer said.

So there's just no room for skepticism right now. Negativity is not being rewarded, except in a few situations involving social media, auto, mineral stocks and offshore drillers. Just take a look at what happened with Merger Monday, as an example.




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On Monday, Actavis announced that it would buy Allergan for a premium of $66 billion, or $219 a share. Then, the second largest oil service company, Halliburton, bid on the third largest, Baker Hughes.

"This has to signal some sort of top. You just don't get such dramatic overpays versus where the stocks were a short time ago without wondering about the wisdom of these deals," noted the "Mad Money" host.

But that doesn't matter. These stocks just keep going higher, and Actavis now rallied 10 percent in one day.

Cramer sees a trend that if you stay skeptical, you lose in the short-term. If you thought the Actavis deal was too sketchy, then you missed some big profits on Tuesday. What did you really accomplish besides missing a terrific opportunity?

"It takes years for some stocks to make moves like that. If you can claim those points now, why not? And if you miss them in the name of prudence and cynicism, what have you really succeeded in doing other than making less money? When you put it like that, you have to question your questioning, don't you?" Cramer said.

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Or how about GoPro? Investors have been shorting the stock so badly that Cramer is surprised they haven't been choked to death. But when GoPro announced a secondary offering of 10 million shares filed, from insiders and the company itself, they were in full glory mode, and the stock took off. Usually, this type of activity should depress a stock But not here.

So, while Cramer wants to be more questioning and critical of what is happening in the market, he knows when to recognize an opportunity. Time to consider the short-term view, and take advantage of proceeds while you can.

Call Cramer: 1-800-743-CNBC

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