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The triple threat combo triggering your portfolio

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.

Now, Cramer knows that Warren Buffett hates the day-to-day obsession of the intricacies of every day's stock action. And he also agrees with Buffett's view that if you aren't willing to do the homework, then you should just put your money into index funds.





Warren Buffett, chairman of Berkshire Hathaway Inc.
Lacy O'Toole | CNBC
Warren Buffett, chairman of Berkshire Hathaway Inc.

"That said, I know of way too many fortunes that were made in similar but less spectacular ways by people who put things into context and invested accordingly, using that day-to-day context to get those better prices," Cramer added.

In Cramer's perspective, there is an unmet need on Wall Street to help people buying stocks make sense of what happened in an individual session. So, with this in mind, what the heck happened on Monday?

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.

One stock that really had investor attention is Tesla. Cramer considers Tesla to be one of the most anti-Buffett stocks out there. It has really been on a tear since it announced its ancillary battery business.

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"Remember, Buffett likes to buy value. If you're buying Tesla, you need to know that you're firmly in the anti-Buffett camp."

Tesla reports on Wednesday, and it is a total battleground. It has just as many enemies as it does cult followers, and someone will look like a genius on Wednesday. Cramer is staying on the sidelines when it comes to Tesla.

Ultimately, it was a triple-threat combination of Buffett, the dollar peaking and a love affair with growth stocks that led to the rally on Monday, the exact ingredients needed to make a two-day rally.

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