Jim Cramer traced Thursday's rally back to the big industrials. To be able to spot the move, an investor had to understand the concepts of rotations, short-squeezes and under-ownership.
And the rally might not be over.
Cramer saw the rally coming; there were huge signs everywhere. Another gigantic industrial Dover preannounced hideous numbers. The stock dipped the next day, and then rallied back above to when it preannounced the crummy quarter.
"Remember, we are in both rolling bear market territory and rolling bull market territory," Cramer said.
That means one hand will wash the other. Banks and pharmaceuticals are selling off, while the industrials are rallying. Money is simply flowing from one bearish sector into the bullish ones with shocking velocity.
Another company on Cramer's radar on Thursday was Nike, which closed up 2 percent.
"Nike is the great American company that is king in every country there is. You do not touch that Nike and if it goes below $59, buy buy buy," Cramer said.