For the past year, Jim Cramer has observed a ferocious phenomenon he calls the rolling bear market. One by one, each sector would head downhill as the bear sunk its claws into stocks.
Now it is time for the rolling bull market, and Cramer thinks it is just getting started.
"It is my job to recognize patterns, and what I see is that the rolling bear markets have been replaced by revolving bulls, and that is a pattern in its infancy, not on its last legs," the "Mad Money" host said. (Tweet This)
Cramer defined a rolling bull market as each sector getting a lift, which prompts a revaluation that boosts all stocks. He saw the action occurring on the market on Wednesday, especially when JPMorgan reported and managed to lift many financial stocks along with it.
"Maybe the worst is over? You have to believe that could be the case given the ability of the banks to withstand still one more withering governmental regulatory blast. It's a remarkable thing, " Cramer said.
The charts of Expedia finally just gave the buy signal that Cramer has waited for. That means both the technical and fundamentals are aligned, which he thinks could mean big things for the stock.
In early November, Expedia announced it would buy HomeAway for $3.9 billion in cash and stock. Cramer considered the deal transformative and believed it could propel the stock higher.
Even though Cramer likes this deal, he acknowledged that the entire online travel space has taken a hit, thanks in part to a strong dollar. However, now that the dollar is becoming weaker versus many other major currencies, he thinks it could provide a boost to Expedia's numbers.
Ultimately, Cramer thinks that at just 15 times next year's earnings estimates, this is a terrific entry point for Expedia.
"Expedia is going to benefit enormously from this HomeAway deal, and I suggest buying the stock before the rest of the market realizes just how positive and powerful this story could be," Cramer said.
Another stock on Cramer's radar this week was Illinois Tool Works. The maker of specialized industrial equipment, consumables and related services was initially crushed in the beginning of 2016, and is now off to the races.
The company was founded more than a century ago based on an improved method of gear grinding, but has grown into a diversified industrial with over $13 billion in sales and operations spanning 57 countries.
And while it specializes in a mosaic of businesses, Cramer noted that Illinois Tool Works seems to have no trouble managing them under one roof. As a result, the stock has been roaring steadily for years.
"Sure, Illinois Tool Works has gotten a bit expensive, but I think it deserves to trade at a premium to the industry," Cramer said.
Cramer recommended for investors to wait until it reports in a week, and then buy it into any post-earnings weakness, or weakness caused by another industrial that reports later on.
The large railroad company CSX Corporation reported earnings on Tuesday, and the message was loud and clear for Cramer: its business is struggling.
First-quarter earnings for CSX came in at 37 cents per share, compared with 45 cents per share last year. Additionally, revenues for the quarter declined 14 percent, and CSX acknowledged that volumes will slip again for the second quarter.
So, why the heck did the stock rally on Wednesday?
"Companies have seen these declines coming. They have taken action. They are doing far better than we thought possible even a year ago," the "Mad Money" host said.
Cramer has heard from many executives that this election year hasn't been very good for business. One way that the 2016 primaries have been positive, is that it has opened up the question of trade.
The "Mad Money" host at times has questioned the faith that free trade agreements are always good for the economy. That pro free trade consensus has been questioned by both Donald Trump and Bernie Sanders. In Cramer's opinion, some trading partners like China do not play by the same rules that the U.S. does.
To gain further insight on the topic, Cramer spoke with Dan DiMicco, the former CEO and chairman emeritus of Nucor and author of "American Made."
"What we have had is somebody finally step up to the plate and speak to the concerns of the American people, the American worker and Donald Trump has a lot of positions on a lot of things. Some we may agree on or not, but I'll tell you what, he's 100 percent right on trade," DiMicco said.
In the Lightning Round, Cramer gave his take on a few caller favorite stocks:
Prospect Capital: "These are that kind of strange financing stuff with big yield. I think if the economy is getting soft, you do not want to own this one. You just don't want to own it."
Insys Therapeutics: "This is another cancer therapy stock. We have never fought anyone who wants to buy one of these, but we always point the same thing out. It is way too speculative at this point in the cycle, but I'm not going to stop someone from getting it."