Sometimes regardless of the state of the economy, the market reverts to seeking growth.
Though the market may have been a yawner on Tuesday, the undercurrent behind the blah action in the averages was to solidify growth.
This growth came from three sectors: biotech, housing and cult stocks.
Tuesday's market created a good chance for consolidation, when in the absence of any real data or major market drama, the companies that had been growing continued to solidify their gains.
The one thing housing needed to grow in the current environment was low interest rates. Now we have them, and thus we are beginning to see results. Strong reporting and pricing came in from Toll Brothers and D.R. Horton to show that this lagging sector is starting to come back up.
Last week Cramer said HGX, the Philly Housing Index, looked as though it would break out. Sure enough, the index has continued to make gains.
"The follow-through makes me believe that this last leg of interest rate declines, the ones you would least expect given what the Federal Reserve has been doing, seem as though they're having a more positive impact on the economy than all of the Fed's bond buying did," said the "Mad Money" host.
Speaking of the Federal Reserve being irrelevant, biotechs have also been on a rally streak as well. Cramer thinks it is clear that this group is not trading with anything else but itself.