When President Donald Trump speaks, he moves the market. Jim Cramer says the key is to understand that he does it in strange ways that can sometimes impact the market severely, and sometimes just be a glancing blow.
"As long as we are ready for his comments, we can profit from them," the "Mad Money" host said.
More important, Cramer said to get used to them occurring. They can be jarring, but it shouldn't freak the market out every time it happens.
On Monday, the president sat down with various small business leaders. Trump said he wanted U.S. makers of oil tube to benefit as a part of the deregulation he plans to introduce. That is a big deal, Cramer said, because many drilling sites do not use American made steel.
Cramer once spoke with the late Aubrey McClendon, former CEO of Chesapeake Energy, and asked him if he used U.S. made drill pipe. Though he felt bad about it, he admitted that he imported pipe from Mexico to save money.
"When you hear the president muse on trade and on steel pipe, immediately you need to be ready to jump on U.S. Steel, as long as the numbers away from oil country tube are looking good," Cramer said.
Homework shouldn't be thrown out the window just because Trump makes a statement or tweets. Investors need to be ready with both the trade and investment.
Trump also took on the financial regulatory reform Dodd-Frank, and said "We will be doing a big number on Dodd-Frank."
Cramer warned that doesn't mean investors should go buy bank stocks the minute they hear Trump say this, especially on a day like Monday when Trump's agenda was challenged by other issues.
What investors do need to understand, Cramer said, is that Trump makes business news almost every minute of the day. This will impact stocks.
"This president attacks and parries and surges and negotiates in the open in a way that impacts stocks constantly, in real time," Cramer said.
This is a new world where stocks can be impacted by tweets and photo ops for Trump. Cramer warned to adjust your horizons and be ready when it happens.
"This president can impact stocks like no other in history, both positively and negatively," Cramer said.