Even though Jim Cramer hates bonds for how boring they are compared to stocks, he cannot discount their intelligence when it comes to predicting day-to-day market activity.
On Tuesday, investors watched as bonds rallied and interest rates fell, signaling a slowdown. And while the "Mad Money" host made a point of saying stocks are not doomed due to the bond market's signals, he stressed the importance of paying attention to bonds when they seem to suggest that economic demand is weak.
One of the three factors that made bonds signal deflation came from Amazon announcing its new Prime Wardrobe service on Tuesday, which will allow customers to try clothes on at home and send back the items that do not fit, Cramer said.
"We can laugh, but Amazon's rampage is now getting out of control. This company is now wrecking the price structure of everything the consumer buys," Cramer said. "The whole consumer price index is being Amazon-ed and we're now at a moment where the Fed might need to acknowledge, 'Wait a second, Amazon's mowing down inflation to the point where maybe we don't need to raise rates anymore.'"