"Common sense is nowhere to be found in the day-to-day of this market," Cramer said Tuesday.
Higher gas prices are supposed to hurt brick-and-mortar retailers, but Cramer noted the group performed well as oil prices soared Tuesday. Retailers, like Tiffany & Co. and The TJX Companies , saw shares rise as Internet retailer Amazon.com struggled. Web-based companies are supposed to do well when gas prices rise, Cramer complained.
What's happening, Cramer said, is that the market is taking its cues from all of the wrong things. When retail stocks go up, people assume the economy is stronger than expected. Of course, if oil goes higher the market will want to sell retail because oil is too high.
"This is all part of the knee-jerk linkage, which has made this market so stupid that you can't even bother to try to figure out the next hourly move it can make," Cramer said. "It's so dumb there's no telling which way the averages will go on a daily basis."
So what's the trade?
Cramer recommends listening to what actual companies are saying. He would play the longer-term themes, so long as you can afford to suffer some short-term underperformance. Caterpillar , Boeing and United Technologies , for example, have been bullish on their future prospects, even though there are some near-term obstacles. All three companies reward their shareholders with higher dividends. Being as they have clean balance sheets, they can make that happen.
These stocks are getting pounded in the near-term because the market is linking what can't be linked. But in the long-term, Cramer thinks common sense will prevail and these stocks could go higher.
When this story was published, Cramer's charitable trust owned Boeing and Caterpillar.
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