Pajama traders that used to plague the stock market opening every morning have mysteriously disappeared since Election Day, and Jim Cramer was determined to find out why.
The term "pajama trader" was coined by Cramer to refers to traders who control the opening of the stock market based on extraneous data, like the futures, and news events from overseas.
Yet, it seems that the volatility caused by these nefarious traders for years has simply dissipated. They were right there distorting the market open during the Italian bank restructuring, a struggling financial system and Brexit. Now they are gone.
"We are all for the better for getting rid of this artificial, silly, infantile, immature trading," the "Mad Money" host said.
Cramer speculated on theories of what happened.
Clearly, someone on Wall Street got wise to the moves of these traders and took their money away. Investors can't stick with a fund manager who was wrong by 9:34 am every morning.
The world has also gotten better since the election as well. Britain's market has been up for 12 days from a better business environment created by the weaker pound, courtesy of Brexit. The data coming out of China has been pretty good, too.
Even the news flow coming out of the U.S. is better, too, Cramer said. Shares of Merck closed higher on Wednesday after the company announced that the Food and Drug Administration is set to make a decision in May on its lung cancer treatment. United Continental also announced surprising better-than-expected numbers for December.
The one common theme that ties these events together? None of it has to do with Donald Trump.
"The reason why we don't care about the morning futures fluctuations anymore is that there is none, exaggerated or not. The terror that the futures struck — rightly or wrongly — has disappeared," Cramer said.
The market is better off without the pajama traders, who have either been kicked out of the business or have learned the errors of their ways. Only time will tell which one it was that caused them to stop.