Mad Money

As second half starts, what’s got Cramer’s eye?

Q2 a microcosm of 2014: Cramer
Q2 a microcosm of 2014: Cramer

(Click for video linked to a searchable transcript of this Mad Money segment)

The beginning of July brings more than fireworks and trips to the beach. It's also the time of year when investors position in an attempt to profit from the second half.

And Jim Cramer thinks the price action on June 30, the last day of the first half, is a kind of microcosm for the many catalysts that could drive the market right through New Year's Eve.

"First, we had takeovers," Cramer said.

Citing a deal inked by to acquire natural foods maker Flagstone Foods, Cramer said, "Going forward, I have to think, after those disappointing quarters, either General Mills or Campbell's is bound to make a bid for Hain."

"Also we had activism," Cramer added.

Adam Jeffery | CNBC

On Monday, published reports said that billionaire investor in what could lead to a shakeup over lagging stock performance and rising operating expenses. "In my study of activists, I found that Peltz is the only activist that, if you bought after his stakes were announced, you consistently beat the S&P 500 average," Cramer said.

"Also, there were upgrades," Cramer reminded, with both and getting the thumbs up on Monday and investors following the recommendations.

On top of that, IPOs ignited gains with the newly public jumping 13 percent on Monday.

And finally, Cramer added, "we have what I call the new drug love story."

That is, promising new drugs are making their way through the pipeline with the latest winner. It popped 10 percent on Monday after The U.S. Food and Drug Administration approved the company's inhaled insulin, Afrezza. "Also Piper Jaffray made positive comments about migraine treatments from GW Pharma," Cramer noted, sending shares 11 percent higher.

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All told, whether it's takeovers, activists unlocking value, enthusiasm about new companies, upgrades or medical breakthroughs, Jim Cramer sees plenty of reasons for the rally to endure.

"I see the last day of 2014's first half as a total microcosm of what's gone right for stocks in this most bountiful year. Sure the averages weren't all that much to write home about, but the action underneath? It was fabulous. What lies ahead? I suspect much the same," Cramer said.

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