Bears find market riddled with landmines: Cramer

When a market is rolling over, bears often take short positions, looking to profit from expected declines. But, Cramer said, in this market, negative bets can cost you an arm and a leg.

"Take OmniVision," said the "Mad Money" host. Although Cramer has been a fan of the stock, he can understand why bears might bet against it. "OmniVision shares have a long history of gut-wrenchingly volatile swings, including some huge multimonth declines," he said. "And there's a ton of competition in the space."

However, on Thursday Omnivision became the object of a takeover offer, valued at $1.7 billion or $29 a share, an 18 percent premium to its closing price.

Although the bid is expected to face scrutiny, a short position in this stock still did a world of harm to any and all investors betting on a decline.

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Cramer says these kinds of developments are happening to bears all the time; he pointed to Trulia as another stock that illustrates this point.

"Many pros thought rival Zillow would annihilate Trulia. They concluded Trulia couldn't withstand the competition; therefore it seemed like one of the better short ideas out there," Cramer explained.

However, late last month, Zillow announced plans to buy Trulia for roughly $70 per share, or a 25 percent premium. Again, a short position was anything but profitable.

Cramer cited Family Dollar as yet another example. "Sloppy execution, shrinking gross margins and missed quarters became the hallmark of Family Dollar," Cramer said. It would seem like the perfect short.

Yet, late last month, rival Dollar Tree inked a deal to buy Family Dollar for about $75 a share, a roughly 25 percent premium. Investors who were short, lost their shirts.

Cramer said in almost every corner of the market bears face similar perils. That is, companies that seem like sensible short positions turn into bearish landmines as a takeover offer or some other catalyst triggers an explosion higher.

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In turn, Cramer believes the price action is a sign that, contrary to reports of its demise, the bull is very much alive and kicking. Bears just can't pressure stocks all that much or they risk stepping on another landmine.

"In bad markets, none of this happens. In bad markets these stocks get pushed down by short-sellers and then crumble. That's not happening in this market. In this market, upside risks are being rewarded, even very big risks."

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