The market on Thursday had all of the right ingredients for a major bull rally. Even "Mad Money" made history when a participant in the Lightning Round called in from their Apple Watch! But Jim Cramer warned investors to be careful—sometimes you will get what you want, and you won't be ready for it.
It was a terrific setup that allowed the averages to roar, with just the right price for oil and the dollar, a dash of excessive pessimism and solid earnings. Cramer dove into each topic independently, so investors could understand why the market was able to rally.
The first thing that the market needed was for oil to stop going up. In one blink of an eye, it has an amazing power to drop $2. When the price of oil goes up, that's the equivalent of taking away an awesome tax cut for people. Of course they're not going to like it!
The second item that is needed is for the dollar to stay weak. If a company's sales or margins were hurt by a strong dollar that meant its stock didn't go higher. But the big chink in the chain was that the money from these big international companies was rotating into the restaurants, retailers and healthcare stocks.
The third positive attribute on Thursday was all of the bad news recently made investors pessimistic. Yes, that's a good thing! They expected stocks to go down on Thursday when Fed Chief Janet Yellen said on Wednesday that stocks were overvalued—and then they didn't.
"Just as I abhor big up-openings, I like it when the market's looking down big at the open. Then people don't get picked off. If you have your shopping list you can buy when others are panicking," Cramer added.