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Cramer: Major market changes happening overnight

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

This market is moving so rapidly that some major changes are literally manifesting overnight.

So says Jim Cramer as he looked at some of the most influential developments in the market and what they mean for investors.

For example, only a few hours ago Apple was all about the potential of new products in China. Cramer said the Street was hyper-focused on the company's deal with China Mobile, which CEO Tim Cook called a watershed moment.

And it made sense; China mobile has an estimated 760 million subscribers.

But largely those developments as catalysts for the stock may be history.

Amanda Rohde | E+ | Getty Images

Now, Cramer believes Apple may trade on comments from Carl Icahn that were Tweeted on Wednesday.

The activist investor said he increased his stake in Apple but also Tweeted critical comments concerning the way in which Apple is run.

"Essentially Icahn said that Apple Is disgraceful for not buying back more stock given that shares are incredibly cheap here, and that it's governed poorly so he's going to put pressure on the company," Cramer explained.

"Icahn also charged that Apple has an imperial board of directors and he wants that to change. Icahn's also going to send a letter throwing down the gauntlet about a company."

As a result, Cramer thinks the catalyst that moves Apple in the days ahead are the follow-up comments from Icahn and not metrics such as overseas sales. "So much for the idea that Apple now revolves around China," Cramer said.

That's a massive change – overnight.

The Mad Money host says the same kind of rapid fire developments are influencing IBM, a Dow component.

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Warren Buffett holds a stake in the company and Cramer thinks his interest has ignited broad buying in the stock. "Buffett's an icon," Cramer said. And he puts money to work in companies with solid long-term prospects.

The trouble is that the tech industry may be changing so rapidly Buffett's investment thesis may be a little outdated.

"I went back and looked at a 1998 interview with Buffett and in it he says, 'I look for businesses in which I can predict what they're going to look like in ten or fifteen or twenty years. That means businesses that will look more or less as they do today, except that they'll be larger and doing more business internationally,'" Cramer explained.

That may have been a winning strategy in 1998 but not today. Cramer believes tech companies with promising futures are actively embracing cloud, mobile and social, today. The latest IBM earnings just released Tuesday don't show signs of any of that.

Again, it's a rapid development that could move a Dow component and by proxy, the market..

In some cases Cramer thinks overnight developments are sweeping across entire sectors.

"Until a few days ago, conventional wisdom had it that our domestic oil was landlocked, causing a glut," Cramer said. That was problematic for independent oil producers and a boon for refiners.

"Suddenly, today, we get the opening of a new pipeline from TransCanada that can help alleviate the glut and instantly all the oil stocks that had been hammered, such as Continental Resources and EOG burst higher, while the refiners like Valero and Holly Frontier, which had been so red-hot, went ice cold," Cramer noted.

That happened literally overnight.

Cramer sees similar developments happening all over the market. That is, he says catalysts that surfaced overnight are moving Dow Chemical, nat gas, telco equipment makers and more.

With developments such as these unfolding at lightning speed, Cramer wants you to be prepared.

"Changes of consequence are happening not virtually overnight, but actually overnight," Cramer said. Therefore, if you want to make money in this market, you've got to stay nimble. You need to monitor developments, digest the changes and plot a new course as needed.

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