Was it really just the halo from Warren Buffett, or could there be other forces at work that led the market higher on Monday? Jim Cramer thinks that it could be more than just the Oracle of Omaha at work for investors.
Or could it be an understanding that the dollar has peaked and Wall Street is done with estimate cuts? Or perhaps it's just that there is a ton of interest in high-growth stocks lifted by a positive news flow?
"I think it's a combination of all three—Buffett, the dollar top and high-growth adoration—that resulted in this rally, the best back-to-back days since February," the "Mad Money" host said.
First, Cramer thinks that Buffett made investors feel good about owning stocks. Buffett embodies the idea that investing in stocks is a good thing, even when they can—and do—go down.
The second thing that happened was the big sea-change that Cramer keeps referencing. He sees that the dollar has peaked, and soon those companies that have seen their earnings reduced because of overseas exposure could levitate back. He urged investors to keep track of major international players, like Cisco, to confirm that this trend is real.
The third leg of Monday's rally was the love affair for high-growth stocks that was rekindled on Friday. Cramer thinks it is all based on news. Biotech was sparked by Gilead reporting last week, and Taser jumped again, too.