Amid growing fears of a default by debt-stricken Greece, the Dow Jones industrial average opened down 250 points on Monday, only to close down just 108 points. There are three reasons why the market rebounded, Cramer said on "Mad Money."
First, Cramer argued there will not be a Lehman Brothers-inspired collapse in Europe. In an interview with Cramer last week, U.S. Treasury Secretary Timothy Geithner made it clear that Europe will simply not allow the same kind of banking disaster the U.S. endured just a few years ago.
Meanwhile, the press suggests Geithner's second visit to Europe in a week's time was not received well, but Cramer disagrees. He thinks Europeans, as dysfunctional as they are, will still manage to work out a deal with Greece and then fix the European banks using Geithner's ideas.
To support his thesis, Cramer pointed to gold . The precious metal, he said, trades in response to the European debt crisis. When it looks as though there is no deal to avoid Greek bankruptcy, the price of gold goes higher. It falls when it appears a deal is likely. The price of gold went down Monday and Cramer thinks that's bullish for stocks.
(RELATED: Cramer's Plays on Gold)
Second, Cramer said there's hope the U.S. Federal Reserve will take action to get the market moving again. He called Fed Chairman Ben Bernanke a "Pied Piper" for the market, inspiring confidence and helping to lead the indexes higher.
Finally, Cramer said the real driving force behind U.S. stocks has been iUSA. In other words, "the United States of Apple." Although the market opened down considerably Monday, Cramer noted Apple's stock opened down just 5 points or so. It continued to climb throughout the trading day, taking out its old highs and helping push other high-growth stocks higher.
So how is Apple able to buck the negativity surrounding Europe's debt woes?
"The negativity is about an economy that is slowing or nearing recession . The European contagion means a collapse in earnings for many industrial companies," Cramer explained. "So what happens to all of the money sloshing around in this country that's always looking for a home? As always, it seeks growth wherever growth can be found ... Right now the most logical place on earth? Apple."
The technology stock was able to break out on Monday because there is an emerging consensus that the estimates for Apple are too low, Cramer said. He thinks the stock is very cheap. In the near-term, he thinks several analysts could raise their estimates for the stock. In addition, the summer months tend to be a slow time for tech, so the tech space is seeing business come back. Finally, Apple is expected to release a new iPhone imminently.
Apple's strength on Monday helped push other growth stocks higher, including Deckers , Green Mountain Coffee Roasters , Wynn Resorts , Ralph Lauren and VF Corp , among others.
What's the bottom line?
"Maybe Europe's not as bas as some think, courtesy of the decline in gold; maybe Bernanke has still one more ace up his sleeve," Cramer said. "Most important, the United States of Apple is alive, well, and going much higher."
When this story was published, Cramer's charitable trust owned Apple.
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