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Cramer fires back at naysayers: Here's your proof that this rally is real

Jim Cramer is sick and tired of investors doubting that the stock market could really power higher.

It is the real deal, he said, and he decided to prove it.

"It is one of the oldest theories when it comes to stocks that the transports have to confirm the strength in the Dow industrials before you can trust a rally … that is exactly what is happening," the "Mad Money" host said.

The theory of transports pertains to the notion that the transports group must make a new high at the same time as the Dow for the market to have solid grounding.

Bull and matador
Rafael Marchante | Reuters

And the good news is that the railroad stocks, truckers, freight forwarders and airlines are all leading the way, which means the rally is backed by an increase in commerce.

"It is the numbers themselves that are driving things, not the hoped-for-prospect of tax relief," Cramer said.

Warren Buffett's Berkshire Hathaway disclosed a significant $8 billion commitment to the U.S. airline industry on Tuesday. It was clear to Cramer that Buffett is a buyer because he thinks there is value in the airlines. They are inexpensive stocks relative to the rest of the market, and because of structure changes in the industry they are now also profitable.

Cramer isn't about to bet on Buffett as some yahoo that doesn't know what he's doing.

The leaders of the stock market were also evidence to Cramer that the rally is the real deal. The best acting group thus far has been the financials, which act as gasoline to the entire market.

If bank stocks rise, it is a sign that they are taking in more money form customers and either lending it out at good rates or buying Treasurys, buying back stock and paying higher dividends than they currently do. Or both.

Even better, the Federal Reserve is expected to raise rates multiple times this year, and this is fantastic news for the banks.

"I can tell you that when the bank stocks roar higher and are good investments, then commercial lending and economic expansion aren't far behind," Cramer said.

Even the technology and biotech stocks that have sat on the sidelines for years and are now undervalued on earnings are leading the way, too. Stocks like Amgen, Celgene and Gilead all reported strong quarters.

Housing stocks are also gaining strength, which wouldn't occur if higher interest rates were about to negatively impact the industry.

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