Jim Cramer saw a dose of the good, old-fashioned rumor mill and takeover talks stir up stocks on Thursday. This is a dangerous game that investors are playing, and he had a few choice words of warning for investors to play it straight.
"Be sympathetic to the idea that takeovers, and even rumors, are working and getting stocks going. But also understand that this is a dangerous game. Invest in best of breed," said the "Mad Money" host.
Sometimes, the market just takes all correlations and throws them out the window. For instance, the dollar got stronger on Thursday, and one would expect that would put pressure on the averages.
Instead, people somehow started thinking that a stronger dollar means weaker oil, which translated into every oil company being vulnerable to a takeout.
"I can't blame anyone for reacting to mergers, or at least possible mergers. That's because investors continue to pile into any company that has merged already or seems to be on the verge of merging," Cramer added.
Cramer also thinks this is the time to take a good look at Twitter. He sees nothing but money just flying out of that one, and thinks there are way too many rumors out there that someone is going to buy Twitter.
In his perspective, Cramer thinks Twitter is making some big moves right now, and likes the improvements on the site that he is seeing.
"You own Twitter because, like Facebook, there could be an earnings breakout here, which will make people realize that the franchise is actually still one more user-generated cash machine. Not yet, but it will be," Cramer said.