As exciting as it is for Jim Cramer to be in San Francisco for "Mad Money," the market didn't care one single bit. Instead, some of the biggest market leaders, especially the domestic companies and the lowest of the low companies, were hit even harder on Monday.
So, is the market playing a cruel joke on investors for one day, or could there be macro trends in the market that affected stocks?
"The overriding reason why you can get a sea-change in all stocks has much less to do with earnings and much more to do with worldview," the "Mad Money" host added.
But then, Cramer saw a different playing field on Monday—one where earnings no longer determined the trajectory of stocks, and instead decisions were made based on some big-picture themes that overrode everything. So how do you spot these big-picture themes at work?
"Look at the best of the best among companies that reported good numbers, and the worst of the worst among companies that reported bad numbers. Then you extrapolate to make broader judgments," Cramer said.
The best of the best group was healthcare. The group has been on fire most of the year, especially UnitedHealth Group. It reported an amazing quarter and guided higher, proving it has amazing earnings power. Yet the stock was still hammered on Monday. What the heck?
In contrast Freeport-McMoRan, the minerals and mining play on copper, gold and oil, delivered a completely disastrous quarter. It lost $2.5 billion, and it even admitted that its copper business is totally disappointing. All of this comes after last month when it had an 84 percent dividend cut. Ouch.
The one theme that threads all of these things together is a weak dollar. Commodities are priced in dollars. So when the value of the dollar goes down, it takes more dollars to buy commodities. Thus, Cramer believes that the reaction to Freeport is simply a reaction to the possibility of a weaker dollar—not better earnings.
Even Apple reported an amazing quarter with much better iPhone sales and $5 billion in revenues. But could this breathtaking result change the tide of the stock sea?
"If you are worried about short-term movements, be aware that this vicious squall may not be finished and the damage in its wake could override terrific earnings for days and days before the tempest has passed."