Charles Dickens would have been proud of the market on Tuesday. Remember the popular phrase, if you go in with no expectations, they will always be beat.
The reduction of expectations can be attributed to the glorious win for the bulls on Tuesday, with the Dow Jones industrial average closing up 1.12 percent and the S&P 500 ending the session up 1.19 percent.
Jim Cramer thinks that at a time when company stocks are flying all over the place, it is a good idea to figure out what people are expecting. He knows that often it is the expectations, not the numbers themselves, that decide the direction of a stock when a company reports.
Case in point: Buffalo Wild Wings. This company represents two of America's favorite things—wings and beer. Since the price of chicken wings have skyrocketed this quarter, most expected a dramatic shortfall for the company.
Whoops. When Buffalo Wild Wings reported, it actually beat expectations and guided up. As a result, the stock closed up more than 13 percent on Tuesday.