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Cramer's 'Mad Money' Recap: Looking for Real Leaders

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NEW YORK (TheStreet) -- This market needs leadership, but not reckless leadership, Jim Cramer cautioned his "Mad Money" TV show viewers Thursday. He said now is the time when investors need to stay focused because the markets may now be due for a pause.

Cramer explained that the market's big move in recent weeks started off well enough, with high-yielding dividend stocks leading the way. Those stocks were followed by the food, drug and beverage names, also great companies. Then the transports and technology names rallied, he said, followed most recently by the industrials, oils and mineral stocks. That was all well and good, until yesterday.

Yesterday and today saw big moves in Micron Technology , which rallied over 4% despite being a second-tier semiconductor company. Boston Scientific was also up big, despite that company being an also-ran. These are not stocks that should be leading a rally, said Cramer.

Other stocks with huge moves included Tesla , a stock with 46% of its shares currently sold short. Green Mountain Coffee Roasters , another hotly contested stock, saw its shares up 27%, along with Barnes & Noble , a company Cramer called the best house in a terrible neighborhood.

Cramer said it's certainly possible to be intellectually right on names like these while at the same time being practically wrong -- as many of the shorts found themselves over the past two days -- but moves likes these seem "frothy" he said, and could be indicative of an imminent pullback.

"This market needs to cool down," Cramer concluded, or these moves simply won't last.

Executive Decision: Joseph Papa

In the "Executive Decision" segment, Cramer sat down with Joseph Papa, chairman and CEO of Perrigo , a company that just delivered a two-cents-a-share earnings miss on what was perceived as lighter-than-expected revenue. Shares of Perrigo are up 152% since Cramer first recommended the company in February 2010.

Papa said he's excited about his company's 18% growth in the quarter, along with its 20% growth in its health-care product division. He said Perrigo's entrance into pet care products has been a big win for consumers, retailers and his company, with Perrigo products now available in our country's largest pet care chain, PetSmart .

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