Sometimes it can feel like the market is all just smoke and mirrors.
Stocks ended sharply lower on Thursday with lingering concern of the strength of the global economy and the effect of corporate earnings, with the Dow Jones industrial average falling 335 points, or 1.97 percent, and the S&P 500 losing 40 points, or 2.07 percent.
So what is real, Wednesday's humongous rally or Thursday's hideous selloff?
Jim Cramer thinks that Thursday's selloff is the real deal, because Wednesday's rally was triggered by some positive Federal Reserve minutes, while the spiral on Thursday is based on real weakness in the global economy. Still, the averages are higher than when the year began.
"Now before I get started on the wacky nature of this market, let me just say, point blank, that we are in treacherous territory," Cramer said. American companies are doing well, but one strand of weakness can spook investors, and they won't see all of the good that's out there.
For example, Alcoa delivered on every item when it reported Wednesday. It showed strong growth in trucks, non-residential construction, autos and aerospace. It is strong companies like this that make Cramer believe that the market is not all that smart. In fact, it's downright dull-witted.
"What makes it so stupid in my eyes? Simple, this market is like the ignoramus who only reacts to the last thing he heard," Cramer said.