Some may look at Tuesday's actions and think that the market is completely unreasonable—but not Jim Cramer.
"It's not that the market's stupid or unreasonable. It's just that it's prone to brain freezes and snap judgments," said the "Mad Money" host.
However, when Cramer took a look at the quick, dramatic judgments that rippled through the market Tuesday, he sees that they might not hold up in the long term.
First there was Twitter, which Cramer thinks could have more hard times ahead. He described its earnings release as one of the most bizarre, amateurish releases he has ever seen. Twitter was set to report after the bell on Tuesday. Somehow the information was leaked, and the market does not know how it happened. However, Cramer does know that the market hated it.
What the heck happened?
The company reported a much better than expected quarter, but then killed off all hope when it cut its forecast. This caused confusion, and sellers came out of the woodwork to get rid of the stock.
But then, when the numbers were released, Wall Street—Cramer included—figured out that they had been too optimistic about the stock. Cramer realized that the management was not able to execute; they couldn't even release their earnings right!
"I believe that Twitter remains a gold mine, and while I thought that these folks had figured out a way to mine it I was wrong. To mine the gold, Twitter has to figure out how to make it more accessible and while it is cool, cool is not translating."