Though it might seem counterintuitive, all the wrong stocks lead the rally on Thursday—and it made complete sense to Jim Cramer. With crude oil making its biggest one-day move since March 2009, it was strong enough to power a rally in the averages.
So, how the heck can the market rally on higher oil? Cramer explained.
For ages any time Cramer saw mineral and mining stocks jump like they did on Thursday, he always assumed it was related to China. It made sense as the entire commodity bubble in the past decade stemmed from Chinese growth.
Lately, because of the declining growth in China, most investors had given up on commodities. So, does the rally in commodities mean they were premature in giving up on China? Maybe not.
"I think that today's torrid enthusiasm for the commodity stocks will prove to be short-lived because while it's terrific to see that oil has a pulse, the idea that China's prospective demand can somehow reverse the fortunes of crude seems just plain fanciful to me," the "Mad Money" host said.