Mad Money

Cramer: Has the decline stopped in its tracks?

What stops a sell-off in its tracks?

(Click for video linked to a searchable transcript of this Mad Money segment)

If you were negative on the market, Wednesday's price action probably blew you out of the water.

By the end of the session, stocks jumped on all three major indexes with both the Dow Jones industrial average and the rising more than 1 percent.

What caused the decline to stop in its tracks?

Conventional wisdom suggests that the Fed minutes, released Wednesday, buoyed sentiment by revealing that the central bank would likely remain more accommodating than previously expected.

Although Jim Cramer believes that the Fed minutes were an important catalyst, he doesn't think they were the only catalyst.

Tom Grill | Photographer's Choice RF | Getty Images

In fact, he says the bounce had everything to do with the decline.

"It started on April 2, and it occurred in a news vacuum," Cramer said. That is, there were few if any expected catalysts, such as earnings, to mitigate the negativity. "In that kind of environment, people get real negative, real fast."

Also, Cramer said that good stocks such as CBS and Time Warner sold off, for no apparent reason, adding to the uncertainty in the market.

Then, the bond market exacerbated the negative sentiment with investors fearing the rotation reflected concerns about an economic slowdown.

However, in recent days, the forces behind those negative catalysts have all started to abate.

That is, earnings have been relatively positive.

"Look no further than the multi-scorned Alcoa which came on 'Mad Money' just last night and talked about turns in aerospace, autos, non-residential construction and trucks. Those are all the needle movers in an economy for heaven's sake and Alcoa's Klaus Kleinfeld said they are all trending higher. Pow, bears, right in the kisser."

Also developments suggest weakness in stocks such as CBS and Time Warner were more to do with hedge fund liquidations that any fundamental headwinds.

In addition, Cramer says the money flow into bonds appears to be more about money fleeing Russia and not a referendum on the state of the U.S. economy.

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All told, the negative catalysts have ebbed while positive catalysts are flowing.

Therefore, Cramer sees every reason for optimism.

"Because people who panicked were blown out, I think the sellers are about to get seller's remorse," Cramer said. "I wouldn't be surprised if they actually start buying and, ultimately, I wouldn't be surprised if we catch a rally."

Call Cramer: 1-800-743-CNBC

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