"Then you realize that yesterday's sellers were simply of the hit-and-run variety, blasting out of the S&P futures because the dollar was too strong, commodities too weak, the euro on Greece-related death throes, and the Fed too vocal about a shake-and-bake tightening," the "Mad Money" host said.
Yet, on Wednesday the dollar was weaker, commodities did nothing and Greek negotiations had no rancor, which caused Europe to rally as the Fed stayed quiet.
Cramer sees Tuesday's action as a simple case of misguidance from the S&P 500 futures, as they once again gave investors the wrong signal. The "Mad Money" host considers this the ultimate violation of the Sonny Corleone dictum.
Recently, Cramer introduced the Sonny Corleone decree in honor of those who trade S&P 500 futures, flitting in and out of stocks based on silly news reports and not doing their homework. Cramer called it this referring to the classic "Godfather Part II" scene when Sonny learned that Michael had joined the Marines in WWII and said, "Did you go to college to get stupid? You are really stupid."
In fact, if the market were actually rational, Cramer would expect that Wednesday would have been a down day—not a day with record highs.
To prove this, Cramer outlined the following reasons as to why the market should have been lower on Wednesday:
First, Workday reported a flat-out disappointing quarter. The outlook showed a definite slowdown, right at the time when everyone expected acceleration. To make matters worse, it was the competition from companies like Oracle that was the main culprit.
However despite the gloomy news, this information did not spill over into other stocks as Cramer would have expected. In fact, the software and semiconductor stocks all rallied. That's not supposed to happen.
Second, there was the horrendous news from accessories company Michael Kors. A stock that was once loved by brokerage houses, it reported a not-so-hot number and then provided terrible guidance. Total disaster.
However, other stocks within the group weren't affected in the slightest. Fossil teetered for a second, but that was about it.
Then there was the continuous burn of Shake Shack. Cramer could see that the sellers finally figured out that the stock isn't up because the burgers are so fabulous. It is up because of short-sellers that have forced it to go up more than it is supposed to.
Heck, even McDonald's decided that it was going to no quit reporting same-store sales. Impact in the restaurant group? Nothing to write home about. Some stocks were up, some down.
All of this action adds up to a day that should have actually been down, not up. And Cramer knows this unusual reaction is caused simply by those who panicked the day before and sold the good with the bad.
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"I'm merely trying to encourage people to buy stocks of companies they like at prices they find attractive, and then have the conviction to own those stocks for the duration," the "Mad Money" host added.
Instead, Cramer sees investors buying stocks that they don't know and then sell them off at the first sign that the futures are down. It has become a wild pattern, one that Cramer considers to be stupid.
The actions in the market on Wednesday just didn't make sense. Cramer warned against joining panic that can be caused so simply.
"Oh, and don't forget the Sonny Corleone dictum, stop being stupid when, frankly, it's very unbecoming," Cramer said.