It's becoming a broken record. How the heck can the keep going down when so many things are going right?
Once again, the market fluctuated wildly and ultimately settled down as investors were freaked out at the low price of oil.
Jim Cramer thinks that this just doesn't make sense! To clarify why, he took a deep dive into all the indicators that show the economy is stronger than ever, despite the S&P.
First, PetSmart was acquired for a whopping $8.3 billion, marking the biggest leveraged buyout of the year. BC Partners acquired the company for $83 per share, a 39 percent premium compared to the closing share price just five months ago.
Then there is Apple. If the market is so horrible, then why did Barclays upgrade Cirrus Logic, the sound system company for Apple iPhone? JMP Group also jumped on the Apple train and increased its price target for Skyworks, the chip maker for iPhones. To top it off, a key Apple analyst recently even confirmed that there is an Apple phone shortage for the holidays.
"Three solid pieces about the largest company in the world, but we are supposed to ignore all of that good news and take Apple down because it is part of the S&P, and the S&P goes down when oil goes down? Is that what is supposed to happen?" The "Mad Money" host asked.
If things are so bad, then why did the restaurant chain Bob Evans Farms skyrocket on Monday based on the resignation of CEO Steve Davis? Many investors thought that Davis stood in the way of this company growing further. But that would just be crazy for this stock to do so well, because oil is down, right?
Or how about Twitter? Even this underperforming social media site had some good news when JMP allocated a "market outperform," citing that with 284 million monthly active users it has an enormous global reach with expanding margins.
And if things are really that bad, then why did Honeywell CEO Dave Cote stick with the forecast of worldwide growth and projections for his company?
Why did Morgan Stanley go from a "hold" to "buy" status on Oracle?
"I am sure, even after everything we have learned in the last two decades, there are banks and mutual funds with U.S. ties that have exposure to the ruble simply because they are idiots. Maybe they think it represents great value if Putin calls Angela Merkel tomorrow and says 'Look, I have to rethink this whole Ukraine thing,'" Cramer added.
Some may even assume that if mineral and oil prices are dropping at the same time as bond yields are, than there must be a huge problem with demand. However the CEO of Alcoa, Klaus Kleinfeld, had a different opinion on this when he spoke with Cramer.
Kleinfeld reiterated that the Chinese economy is still a strong engine and the U.S. economy is doing fantastic, and suggested that it is time to put the money into buying over there and building here.
With all of these indicators that the U.S. economy is awesome, Cramer wondered if it would be absolutely crazy to think that maybe things just aren't so bad.
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Read more from Mad Money with Jim Cramer
Cramer Remix: How you'll know when oil's bottomed
Cramer: When will the hideous downturn be over?
Cramer: How to end oil's tumble
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He knows who the culprits are causing such a stir in the market. It's the hedge fund trading machines with algorithms that assume it is time to sell, sell, sell when oil is down.
"But the machines say it has to be bad, and the machines are never wrong until, of course, we come in one day and realize that oil's down a lot, the bankruptcies aren't that devastating, and the other countries run out of money to produce oil even as we continue to do so. Then, maybe the machines will say, 'If things are this good why are we selling'?"
Then, at last, the market bottom will kick in.
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