The markets may have rallied big-time today, but don't think it's all thanks to Fed minutes and economic data, Jim Cramer said Wednesday on CNBC's "Mad Money."
It was a winner of a day on Wall Street — all the major averages ended strongly on the session, with the Dow Jones up 89 points, 0.7 percent, at 13,090 and the S&P 500 rising 18 points, or 1.3 percent, to close out the day at 1,390. Apple's robust earnings report from Tuesday also sent the Nasdaq surging 2.3 percent higher to 3,029.
But while investors bask in the glory of Wednesday's growth, Cramer said too many have been infected by what he calls the "hedge fund media complex." He said we should not be tying this strength to the U.S. Federal Reserve's announcement that it would maintain low interest rates until 2014, and we should stop praying for further easing.
When the Fed talks, the market listens, he said. "Every utterance, every word, every nuance gets parsed and traded on."
He also said investors have become "consumed and blinded" by economic data like weak durable goods orders announced Wednesday and Tuesday's disappointing Case-Shiller home price report. "Many of the traders are under the mistaken perception that the economy must remain weak to keep the Fed on the team, helping stocks go higher," he said.
In other words, as things get better, the Fed will get less and less accommodative and the stock market will go down — a line of thinking that Cramer called "bogus and twisted."
