A rally is a rally, and in the end, we got one Monday, regardless of it being led by the "wrong stocks" and his fear of the "limbo stick," Cramer said.
But which companies?
What really matters, Cramer said, is that until we see disappointing earnings, his instincts are to buy, not sell this market. Particularly when it comes to companies with great earnings, like Citigroup , which delivered a "monster good quarter, one that should take Citi beyond $5 and change, a level that has repelled the stock repeatedly. We've been behind Citigroup since it did that underwriting at $3.15, and we are reiterating that stance despite the 7 percent move today." It's outsized, he said, but not enough as it is still below where it traded last week.
But are we out of the woods? Cramer thinks it's still not clear. "As much as we liked the rally today, the wrong stocks led it," he said.
What are the wrong stocks?
- Johnson and Johnson
- Procter & Gamble
These stocks represent "the recession-proof names that you reach for when you think economies around the world are going to stall," Cramer explained. "When these stocks go up it reveals that buyers are more concerned about a slowdown than a global economic acceleration."
Consider these bits of anecdotal evidence: we got an extremely negative piece in the Wall Street Journal about Verizon's ability to pay its dividend. How did Verizon do? It rallied.