"The newspapers are filled with rumors of deals, and when was the last time when you had rumors of deals every day?" Cramer asked, noting that a succession of mergers and building momentum from individual stocks could help lift the overall market.
"There is a great schism right now between professionals who see a great opportunity to leave the market because there's froth," he said, but on the other hand there are a lot of individuals who can make a real bullish case for individual names.
He added that discounts continue to exist in the market and that you have to factor M&A activity into your investment strategy.
One name Cramer picked out was home builder Toll Brothers, which he says could go to $38 from under $36 right now. "This market gives you intraday, intrastock pullbacks and those are to be taken advantage of," he said.
Earlier this week, Cramer was making a parallel case that there was a growing divergence between consumers, likening the current market to "The Great Gatsby." In his thesis, he sees lower-end consumers being affected more dramatically by high gas prices and the end of the income tax holiday than high-end consumers, who are essentially unaffected. The way to play this, he said, was through luxury retailers like Michael Kors and VF Corp while betting against retailers like Dollar General and Dollar Tree.
— By CNBC's Paul Toscano. Follow him on Twitter and get the latest stories from "Squawk on the Street" @ToscanoPaul