Jim Cramer has noticed a peculiar pattern behind the stocks thriving this earnings season.
"Right now demand is the secret sauce driving stocks higher. Is there demand for the product and does it exceed supply? That's how you sort out the winners from the losers in this peculiar environment," the "Mad Money" host said.
Cramer proved his thesis with just one look at the action behind Boeing. The stock has spent ages in the doghouse after a long period of outperformance. On Wednesday, the company raised its earnings and revenue forecast, and the stock rallied even before the open.
Then management said that some parts of the business, specifically wide body aircraft, had soft sales, and the stock plummeted. But then Boeing clarified that demand for narrow bodied planes is extensive, and the stock snapped right back and ultimately closed up more than 4 percent Wednesday.
Cramer sees the same roller coaster ride over and over. Management guides up, gets challenged, then becomes accepted again. All within two hours' time!