Jim Cramer diagnosed the stock market with a case of the "wacky bids underneath" on Wednesday.
A bid underneath is a technical term used by money managers, which means that as a stock sinks, buyers are on the sidelines and ready to do some buying. Often an institutional trader will ask for a "picture" to figure out what the actual supply and demand balance is before buying a stock.
"Ever since the Trump rally began, there have been buyers lurking underneath. They remain, even when the S&P 500 futures might drive stocks down off of whatever ails the market on any given day. They prop up the stocks that they are lurking under," the "Mad Money" host said.
However, once the patience wears off, the buyers step up and end up competing with one another and the price of the stock rises. Cramer attributed the lurking buyers underneath propelled stocks like Disney, Starbucks and NVIDIA on Wednesday.
Cramer was also stunned by short-sellers of Caterpillar, who thought nothing would get better for that company, especially with a strong dollar. However, now that Trump will be in the White House, his plans for infrastructure spending could include using American-made equipment.
"Post-Trump, CAT is widely hailed as the stock to own," Cramer said.