Perplexed? Cramer Says Think Like Mark Haines

With the Dow Jones Industrial Average closing at a record high, Jim Cramer developed new strategy based on insights once shared by his CNBC colleague, the late Mark Haines.

"At these big levels I find myself searching," Cramer admitted. "And when I search I sometimes fall back on insights from the guy who brought me to television, Mark Haines. I ask myself what would Mark do? Why Mark? Because Mark was a true skeptic, who demanded rigour and would always pose questions."

And with the Dow now trading at levels not seen since October 2007 it would seem prudent to look at the market through the lens of someone who demands answers..

"Now I know, divining what Haines would think is no easy task, but I think I have an idea. He would be trying to figure out whether this new high was the real deal or whether it was just a flash in the pan," Cramer said.

How would he do that?

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Cramer thinks the types of questions and issues Mark Haines raised when the Nasdaqreached its top 13 years ago may provide a touchstone.

"Mark would look at the earnings, look at the revenues, and look at the histories or lack of them," Cramer said. "He hated the stocks selling at 40 , 50, 100 times earnings. He viewed his job to be a gauge of valuation, and when the valuation seemed absurd he would say so."Mark also felt it was his duty to let everyone know that he felt too many people were in the pool. He hated that, too."

In other words, Mark Haines evaluated the sustainability of the advance 13 years ago on valuations and sentiment.

Looking at those same catalysts today, Cramer feels strongly that there's great value in the market. And he doesn't think sentiment is overly optimistic, something considered a contrarian indicator.

Adam Jeffery | CNBC

Cramer also thinks Mark Haines would like the leadership and the breadth in the market. "13 years ago, Haines didn't like the leadership. It was concentrated in all of the stocks that did well because China was doing well."

Now contrast that with this market.

"This is a transport led market with participation from an amazing array of sectors. I can never recall a moment where consumer packaged goods, retailers, pharmaceuticals, utilities, financials and housing plays are all roaring right along with the transports. I don't know if I have ever seen that in my lifetime. I doubt Mark would have been unhappy with the leadership or the breadth."

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In addition, Cramer also thinks Haines would be impressed by the markets advance despite the headwinds coming out of Washington as well as Europe.

"I believe he would be impressed with the wall of worry that we have scaled, everything from the US debt downgrade to the fiscal cliff to the European Great recession to the miserable sequestration."

All told, Cramer said, "I think Mark would bless this market. "I always end my show with 'There's always a bull market somewhere and I promise to find it for you.' I think we are looking at it."

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