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Cramer: Don't get too carried away—this market has no conviction

On Monday, Jim Cramer watched as the stocks that were loved the most on Friday were suddenly loathed.

It all came down to new data that changed the opinions of the most influential investors on Wall Street.

"The fact that they rarely beat the S&P [500 Index] isn't important. What matters is that they never stop trying, and that explains what you saw on your screen today," the "Mad Money" host said.

U.S. employment data and Chinese trade figures were the proximate cause of Monday's mixed trading. When the Labor Department released non-farm payroll data on Friday, initially Cramer thinks the big buyers couldn't figure out what the data meant for the global economy. As a result, the market didn't sell off.

Electronic display financial prices
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"Don't get too carried away, the market gods crushed those who did that just 72 hours ago." -Jim Cramer

However, over the weekend China released trade numbers that were largely disappointing. Exports fell, and imports were down for the 18th month in a row.

"These numbers shocked people with a strengthening Europe, the destination for 25 percent of China's exports, there had been hopes that the Chinese exports could be more robust," Cramer explained.

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To make matters worse, the Chinese stock market dropped 2.7 percent on Monday.

Ultimately, the dollar and oil determined the direction of the U.S. stock market. It was clear to Cramer that these two factors just reinforced the soft payroll and Chinese data.

"If economies around the world are slowing at the same time that the dollar is strong, that means hedge fund managers sell the industrials, particularly the minerals and miners," Cramer said.

And if the domestic economy is slowing, Cramer added that large investors would then be prompted to buy drug and growth stocks that aren't dependent on the economy.

Freeport-McMoRan was up more than 65 percent for the year prior to Monday. All three of its end markets — copper, gold and oil — were on fire leading up to Friday. Freeport announced that it sold its interest in a copper mine in the Democratic Republic of Congo for $2.65 billion to pay down debt—and the stock was slaughtered, down 10 on Monday.

Yet, Cramer was convinced that if the asset sale had taken place before Friday's employment number and before Chinese trade figures, it would have jumped 10 percent on the news.

"I don't care for these kinds of rotations because they reveal a market that has no conviction whatsoever. I could call what happened today a resumption of the long-dormant bull market in the domestics," Cramer said.

That is simply the power of weak employment numbers, stumbling Chinese trade data and poor commodity pricing at work.

Cramer fears that if the market can change so quickly from one leadership group to another, it could easily change back on one piece of data again.

"Don't get too carried away, the market gods crushed those who did that just 72 hours ago," Cramer said.

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