7 Reasons the Market Stays Higher

Investors on Tuesday learned that US consumer confidence is at its lowest level since February, but that didn't stop the market from maintaining its 9 percent gain this month. Despite negative news, Cramer said the market continues to push higher for these seven reasons:

First off, CEOs across the board have continued to deliver. From technology names like Apple to industrial names like Caterpillar, company executives are demonstrating effective leadership that's getting results.

Second, the negative news regarding housing is overblown. Cramer said the Case-Shiller housing data, released Tuesday, confirms stability in housing prices and also verifies that a bottom was reached last year. Yet the bears won't allow this empirical evidence to be heard.

Third, Cramer said it appears as though most people think things will improve after the November elections. He assumes that the Republicans will take a majority in at least the House, and that will provide the gridlock in Washington that markets likes so much. The hedge funds, however, don't see it this way and are now covering their shorts in high-flying stocks they think are overvalued. But Cramer thinks that's a bad idea because where a stock is going is more important than where it has been, even if it has enjoyed a big runup in share price. Take Apple, for instance. It may seem expensive, but based on actual future earnings it often sells at the same valuation as the average stock.

Fourth, European banks didn't fall as many had predicted. In fact, the European collapse never happened, and yet the doom-and-gloomers who expected it never admitted they were wrong. Instead, they continue to relentlessly argue their bearish stance.

Fifth, the rest of the world is so strong that "our own downbeat markets just don't matter," Cramer said. Companies like United Technologies or PPG Industries , for example, figured this out long ago. In turn, they moved their efforts overseas and continue to see the benefits.

Sixth, look no further than the chairman of the Federal Reserve.

"Our economy will eventually awaken and jobs will be created because Ben Bernanke is on the case," explained Cramer. "You can't fight the Fed. Old adage proving true."

Seventh, Cramer thinks the rally could be explained because institutions—not individuals—recognize that bonds are going to be a "terrible" investment. These entities, therefore, are investing in higher-yielding stocks for income.

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