Just when it seemed that the market was stuck in a nightmare that wouldn't end, the averages finally managed to rally on Monday. And of course, Jim Cramer took a close look at the big moves of the day to put the pieces together as to what triggered the rally.
Additionally, Google announced that it is reorganizing into another entity called Alphabet on Monday night. While some may think that this reorganization is just a cosmetic one, Cramer disagreed.
"I bet Ruth Porat, the new CFO...suggested this bit of financial engineering because it basically separates the Google media business from all of that venture capital it supports so Wall Street—the language she speaks—can better understand this entity as the holding company that it really is," Cramer said.
The rally came down to a few reasons for Cramer. First, stocks were radically oversold going into Monday's session. When stocks are that low for that long eventually sellers realize that they will destroy stocks if they keep selling them, so the buyers stepped up to the plate.
Second, China was both horrible and amazing. Chinese export data that was released over the weekend was terrible, but then the Chinese market rallied hard, up 4.9 percent. The horribly soft data gave investors the impression that maybe the Chinese government will do more to prop up its economy.
"They think their government's using some of the proceeds from the U.S. Treasurys they have been selling—$200 billion worth—in order to buy stocks to the point where the vicious head and shoulders pattern in the Shanghai Composite can't be broken, don't laugh," Cramer said.
Third, Warren Buffett made a massive $37.2 billion acquisition when he purchased Precision Castparts. Cramer was happy that this occurred, as any time Buffett does something bullish he tends to rule the market for a day or two.
"The fact that Precision Castparts is a gigantic industrial and the industrials have been sold willy-nilly in this market should not be lost on people. Buffett clearly thinks the pessimism about these behemoths is way overdone, or he wouldn't be buying one," Cramer added.