Everywhere Jim Cramer goes, investors ask him if it is too late to participate in the stock market's incredible rally.
"If you want to understand how this market has been able to run so much since the election … you have to stop thinking of the stock market as some kind of unified whole, and start viewing it as a market of stocks," the "Mad Money" host said.
The stocks leading the charge higher are a lot less vulnerable than many investors think, Cramer said. In fact, stocks that have led the Dow Jones industrial average to the brink of 20,000 are entirely justified to be at these levels.
More importantly, Cramer thinks the run could be sustainable because of overhead resistance. This refers to the amount of stock for sale. One thing Cramer noticed is that a large portion of the gains in the Dow are from the stocks that up more than 10 percent since the election, and don't have a lot of overhead supply.
For a long time these same stocks were considered to be losers compared to beloved players like Facebook, Amazon and Apple, which had massive overhead resistance. There were always sellers and investors taking profits.
That has all changed since the election.
"The biggest winners here are a host of stocks that simply don't have a lot of flippers; there is not much profit-taking because at least so far there isn't much profit to take," Cramer said.
Nothing compared to the power of Goldman Sachs and JPMorgan, though. These stocks were left to rot before the election, and even though they have rallied tremendously, Cramer still thinks they are inexpensive, assuming Trump will deliver on his deregulation agenda.
"The generals that have led the Dow are only very recently promoted. They have few profit takers, and, more important, very little overhead resistance. That is why these winners are still the place to be, and that's why it makes sense that we have run this much," Cramer said.