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Cramer: There’s a 'Great Schism' in This Market

Cramer: A 'Great Schism' in This Market

In a market environment littered with deals and buyouts as well as pessimism and uncertainty, CNBC's Jim Cramer sees a growing divergence between market pros on the bullish and bearish ends of the spectrum.

"There is a level of excitement in the market. We're seeing levels we haven't seen in some time, and people are saying, 'Maybe I can make a little money,' while others are saying, 'Maybe I should leave.' I think the new view is the bullish one," Cramer said on "Squawk on the Street."

"The newspapers are filled with rumors of deals, and when was the last time when you had rumors of deals every day?" Cramer asked, noting that a succession of mergers and building momentum from individual stocks could help lift the overall market.

"There is a great schism right now between professionals who see a great opportunity to leave the market because there's froth," he said, but on the other hand there are a lot of individuals who can make a real bullish case for individual names.

He added that discounts continue to exist in the market and that you have to factor M&A activity into your investment strategy.

One name Cramer picked out was home builder Toll Brothers, which he says could go to $38 from under $36 right now. "This market gives you intraday, intrastock pullbacks and those are to be taken advantage of," he said.

Earlier this week, Cramer was making a parallel case that there was a growing divergence between consumers, likening the current market to "The Great Gatsby." In his thesis, he sees lower-end consumers being affected more dramatically by high gas prices and the end of the income tax holiday than high-end consumers, who are essentially unaffected. The way to play this, he said, was through luxury retailers like Michael Kors and VF Corp while betting against retailers like Dollar General and Dollar Tree.

— By CNBC's Paul Toscano. Follow him on Twitter and get the latest stories from "Squawk on the Street" @ToscanoPaul