Cramer: This could end oil's downward spiral

Jim Cramer refused to be negative about the stock market. On Monday, he went down the list of companies creating leadership in various sectors, and noted that it would soon spread to others.

He just didn't count on it happening so soon.

Oil broke above $40 on Tuesday in anticipation of an OPEC meeting on the weekend, which lifted averages.

"That just might spell the end of the downward spiral in the group, something that could lift all boats, even if that idea seems counterintuitive," the "Mad Money" host said.

Spiral Staircase downward economy
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"Remember my thesis — it is the stocks that make me less gloomy than the average bear I see out there." -Jim Cramer

From Cramer's perspective, every commodity rally in the last few years has boiled down to the belief that the Asia must be doing better. And since there has been very little drop off in the production of oil, then many assume that demand has picked up.

"I believe that oil use is indeed up in the People's Republic, and that has been an important part of the move," Cramer said.

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So, with demand improved and just enough decline in supply from the U.S., Cramer does not expect oil to go back to the $20s. Because of the run in oil, investors have once again started buying oil stocks.

When commodities were falling apart many industrials, like Freeport-McMoRan, looked like they were doomed. But now that commodities are flying high, Cramer says Freeport could have one of the best charts in the book.

Somehow in the past two months, the oil complex has gone from bankruptcy fears to loan forgiveness and more stability.

"Remember my thesis — it is the stocks that make me less gloomy than the average bear I see out there," Cramer said.

Meanwhile, the IMF confirmed that things could be getting weaker around the world and economic growth is potentially going to be far less than expected. If that is the case, Cramer recommended investors to own consumer packaged goods stocks.

Ultimately, it is a best of both worlds situation for Cramer; the industrials, oils and soft good stocks are all going up at once.

While many investors want to have a negative perspective of the stock market, Cramer refused. It seems that stocks want to go higher, not lower right now, he said.

"It is not the end of the world as we know it, and the market wants to rally instead of collapsing," Cramer added.

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