Jim Cramer is no longer frightened that strong earnings could mean that the Federal Reserve will make a move.
"We are finally free to look at the merits of individual companies. We are free to stop fearing that parts of the economy are too good," the "Mad Money" host said.
Fed Chair Janet Yellen relieved the fear of many investors on Tuesday when she confirmed that the Fed would proceed with caution. It proved to Cramer that Yellen is aware that things are far more fragile than they seem and that Yellen understands her actions could severely impact both the U.S. and world economies.
Yellen also cited housing as an area where she would like to see improvement. Cramer was shocked at how little KB Home's stock rallied after reporting a monster quarter last week.
"It's worth more dead than alive, meaning its real estate is more valuable than the company's current market cap, especially its amazing West Coast holdings," Cramer said.
Cramer was surprised that Yellen clearly did her homework on the housing industry and recognized that it punches above its weight in the economy.