If there is one lesson that Jim Cramer has learned about the market, it is to never forget what brought it down and certainly don't forget what brought it back up. Most of the time unfortunately, investors forget these elements and let emotions control their actions on the tape.
However, the "Mad Money" host prefers to be clinical about things and remove emotions from the equation altogether. For instance, before Wednesday, oil stocks have been declining for ages, and the oil complex has been regarded as one of the most dangerous groups out there.
Cramer reviewed the oil charts with technician Bob Lang on Tuesday and actually found that the charts showed some of the major oil patch players were ready to bounce back. And despite the outrage from many investors that Cramer received, Wednesday marked one of the biggest oil stock rallies in ages.
"You know I haven't liked the set-up for ages, and that skepticism has been warranted as the Dow had been down nine out of the last 10 days. But, like the oils, this kind of selling can get overdone," Cramer said. (Tweet This)
Wednesday brought a second day of the Chinese devaluing its currency again, causing widespread implications. As a result, China pulled down a host of currencies worldwide and crushed commodities such as minerals and grains—but it didn't pull down the price of crude.