Cramer: The weird stock phenomenon coloring the tape

Jim Cramer sees a brand new phenomenon at work in the stock market.

On a day like Wednesday, investors simply just wanted to pay more for stocks than they did the day before. The phenomenon is called re-rating, where stocks are upgraded to a "buy" from a "hold" simply because of good news that is completely separate from the overall stock market.

"Today we had a whole host of these re-ratings, more than I can recall in ages, and it colored the whole tape, so to speak," the "Mad Money" host said.

Nothing has occurred to warrant paying up for shares, investors are just willing to buy them at a higher price. Cramer thinks investors may be finally realizing that dumping stocks wholesale was a severe reaction to the Brexit news.

Oil refinery with fire,
John Guillemin | Bloomberg | Getty Images
"That reflects some genuine strength in the economy and is very positive for stocks." -Jim Cramer

In fact, in many ways the market is right back to where it was before the U.K. vote. Once again, stocks are taking their cue from the price of oil.

The rule is simple: if oil goes up, than stocks go up. If oil goes lower, than stocks are disliked.

Oil once again bounced from the $46 level that it hit after the Brexit vote, and now it's back at $49. That is the level before the U.K. vote.

"That reflects some genuine strength in the economy and is very positive for stocks," Cramer said.

Even better, this time around the fear of a rate hike from the Federal Reserve is off the table because of the turmoil overseas. The combination of higher oil prices and less likelihood of higher interest rates has launched the U.S. market into what Cramer described as a "weird version of stock nirvana."

Stocks like Wyndham, Marriott Vacation Worldwide, Priceline, Expedia and Southwest are some of the examples listed by Cramer as being back in favor.

It was precisely the worst stocks both before and after Brexit that were re-rated. Investors didn't like travel and leisure or airlines, as well as transports. They also despised everything retail, but when Nike soared on Wednesday, it gave the group hope.

"Yesterday was a relief rally. Today was something more permanent, a re-rating of previously despised stocks," Cramer said.

It was a welcome change for the "Mad Money" host. After all, if a positive disposition can emerge from such a hated move recently, who knows what these companies can contribute when they have news as a catalyst.

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