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7 reasons why Cramer embraces selloffs

(Click for video linked to a searchable transcript of this Mad Money segment)

Despite all the market milestones, Cramer believes the path of least resistance remains higher.

And Wednesday's market action may illustrate exactly why.

Although both the S&P 500 and the Dow Jones started the session in negative territory, both indexes ultimately closed in the green with investors hitting the buy button with zeal shortly after lunch.

The price action suggests that buyers are likely to step in when the market sells off. Here's why.

Adam Jeffery | CNBC

1. Mario Draghi, the head honcho at the European Central Bank, is in total Ben Bernanke mode. "This is very good news," Cramer explained. "It suggests that the ECB will take heroic measures, if necessary, to prevent the economies of Europe from contracting."

2. Like it or not, bad news about Obamacare is good news for business. " The more trouble there is with Obamacare, the less likely it is, that it can hurt business," Cramer said. And it's costing President Obama some political clout; another positive for stocks, because it makes new tax increases that much less likely.

3. Oil has dropped significantly. "The decline in crude prices has put as much as a thousand dollars a year into the hands of every regular driver. It more than offsets the increase in the payroll tax that people have been fretting about all year," noted Cramer.

4. Banks are profiting from a better yield curve. "The average rate on a five-year certificate of deposit is 0.82%. The five year Treasury is at 1.4%. That's a huge net interest margin for the banks and a major positive for stocks," Cramer explained.

5. The Twitter hangover finally seems to have run its course. Some investors had feared the eye-popping surge in Twitter was a sign of the top and subsequently sold out of positions. Cramer expects that kind of selling pressure to now abate.

6. Individual companies are showing significant strength. In turn, that makes it harder for any negative developments to really gain a stranglehold over the market, broadly.

7. There's a chase for performance underway. Cramer fully believes that pros who are lagging their benchmarks are compelled to buy creating an upward bias in the market.

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All told, Cramer says there's every reason to believe bulls will prevail into the end of the year. "That's what happens every time you're up 20% coming into November. As I have said endlessly, I don't think this time will be any different."




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