U.S. stocks closed higher Monday thanks to encouraging earnings results. That's worth noting, Cramer said on "Mad Money," because it seemed the European debt crisis seemed to be the only thing that mattered for a while. The October rally, though, is being driven by how companies are doing.
The market is re-thinking Europe's importance, Cramer continued. Stocks that had been hammered due to European exposure are now coming back. As an example, Juniper Networks had blamed its poor performance on Europe, but its stock is up 10 percent. FedEx rallied 16 percent from where it fell after earnings.
Meanwhile, the financials have been on the move despite fears about Europe. Cramer doesn't like the group, but noted Goldman Sachs' stock is up 7 points after posting a disappointing quarter.
Apparel stocks were also to be avoided due to European exposure. VF Corp hit a 52-week high, though, and boosted its dividend despite having considerable European exposure.
Europe's debt woes are not overblown, though. Its sovereign debt crisis cannot be overestimated, Cramer said. Nevertheless, that doesn't mean investors should let fear rule every investment decision. After all, U.S. Treasury Secretary Timothy Geithner told Cramer there would be no Lehman Brothers-type situation in Europe.
"But this earnings season has been a big mind changer: Europe just doesn't have the staying power to keep pushing our stocks down," Cramer said. "It's gone from being a huge impediment to our market to being something that creates huge buying opportunities when it knocks down our stocks."
Homegamers should look for stocks that have been hammered on European concerns and pick them up while they're still down. He likes Alcoa , Cummins and IBM in particular.
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When this story was published, Cramer's charitable trust owned Alcoa, Cummins and IBM.
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