There is one story Jim Cramer has heard from everyone's lips these days, and it basically questions how it could be possible that the stock market isn't soaring higher on the news that oil is collapsing.
Instead, the market fell on Tuesday when oil dipped below $30, and it only rallied in the afternoon when oil bounced back and closed down only 3 percent.
"With oil at $30, pretty much straight down for months now from June of 2014, when Brent hit $114, you would think we would be dancing in the streets. I can recall whole bull markets based on the falling cost of fuel," the "Mad Money" host said.
The visibility of the decline is so scary that it now colors the entire stock market.
This is how the combination of a once in a lifetime decline in everyone's budget and the budget of millions of corporations does not translate into a stock market rally. It is playing against the appalling losses of the oil companies themselves. It has prompted investors to ignore the positives of the decline and focus only on the negatives, Cramer said.
"We need to respect the fact that something good for the economy, lower oil, can actually be a negative for the stock market, at least short-term, no matter how wrong it might turn out to be over the long-term," Cramer said.
In other words, until oil stabilizes — at any level — do not expect a real relief from the sell-off.