The reason why Cramer has no problem with the short sellers? Because they expose frauds and faults. That is the group that makes money when a company falters or investors freak out and sell a stock for the wrong reasons. On the flip side, short sellers also lose money when a company's story is stronger than expected and they are forced to buy back shares to cover their short, sometimes for more than what they sold them for.
Thursday brought evidence of short sellers with bets that had gone bad, which created major wins for investors holding the long position. Alphabet and Amazon were perfect examples of this, as both companies have had inconsistent earnings, which made them the ideal target for short sellers. Much to the short sellers' dismay, both companies crushed earnings.
In the last few days Cramer has heard rumblings of short tellers attacking FANG, an acronym for the growth stocks of Facebook, Amazon, Netflix and Google.
"Well, guess what: Netflix may have failed to deliver, but the A and the G are roaring in after-hours trading, and so is Facebook, right on the backs of the short sellers. These are monster moves that are already sending up the futures for tomorrow's session," Cramer said.
Cramer also noted various other groups that were bolstered by the short sellers such as the banks, industrials, consumer packaged goods, and old tech stocks.
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"This market has been turned on its head, with what looked like fabulous shorts turning into magnificent longs, and vice versa," Cramer said. (Tweet this)
The action all stemmed from the massive rotation of stocks that Cramer has warned about all week, not actual numbers, which explains some of the massive moves seen in the market in the past three weeks.