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Cramer: Oil, China & Greece are great for the bulls

With the averages closing in the red yet again on Monday, Jim Cramer reminded investors that there are always two sides to every coin.

"We always remember the first side, but we tend to forget the latter at the drop of a hat, which is a big reason why we got slammed today," the "Mad Money" host said.

The first topic that weighed on the averages on Monday was oil, as it threatened to take out the $43 level where it has bottomed several times before. But this time the decline feels pretty nasty to Cramer as the big dogs like Exxon, Chevron and Royal Dutch reiterated negative chatter when they reported last week.

Cramer finds this ironic considering these same companies were positive all the way down. They were all betting on a quick v-shaped recovery just two quarters ago, a slower U-shaped recovery one quarter ago and now no recovery at all!

Not only that, but Iran came out over the weekend and said that the moment the sanctions were lifted they will immediately increase output by 500,000 barrels and another 1 million in a month.

Basically, oil and oil stocks are both headed down. But should investors freak out about that?





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Nick M. Do | Getty Images

Not necessarily, as most companies benefit from cheaper oil. The airlines, restaurants and retailers are all bouncing back just like they did last time.

"There is no doubt in my mind that lower gasoline is a major victory for consumers who are hungry for good news. So what's negative for 10 percent of the S&P 500 is, I think, a major positive for about 30 percent of the S&P," Cramer said.

The second hidden positive in the market was the collapse of China. Yes, the official manufacturing numbers released out of China were horrendous, and most people don't even trust those figures. We know that the Chinese stock market is going lower, and the Chinese Communists can't even prop it up.

That is exactly why stocks of auto companies don't go up on the fabulous U.S. auto sales. And it's also why Apple and the whole semiconductor group stay under pressure.

"I personally believe that Tim Cook's telling you sales aren't slowing in China. But there are many people taking issue with that, saying that the great migration and middle-classification of China has finally hit a wall. That means these stocks will stay under pressure," Cramer said.

However, China's in such bad shape that it could also mean that the Fed will not tighten in September. That is a great flipside and good news for the bulls. As long as China is weak, it's an insurance policy against an aggressive Fed.

The last hidden positive on Monday was Europe, as the Greek market opened for the first time in ages. It freaked a lot of investors out to see their banks down about 25 percent.

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However, we also learned that the Eurozone manufacturing sector was very strong in July and it wasn't just Germany that was solid.

"Frankly, that's huge. It shows you that once Europe put the Greek crisis behind it, that country recedes into the background of a localized nightmare pretty quickly," Cramer said.

Europe is extremely important to U.S. earnings, and it could also mean that the dollar will stop going higher, which helps U.S.-based international companies.

So, while the cons might seem very one-sided on a day like Monday, Cramer reminded everyone that there is always another side to the coin. Maybe the world will not collapse because of commodities, Greece or China. It could come in handy one day to have a broad perspective on the drama.

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