"RH up 31 percent today? Breathless. A perfect, perfectly crafted short squeeze," the "Mad Money" host said. "But once the short-squeeze ends, I got some interesting news for you: do you know I think that RH could have still more upside?"
In other words, the high-end furniture retailer's Tuesday earnings report proved that its stock, like the stocks of other retailers that surprised Wall Street with better-than-expected results, could still have more runway ahead, Cramer said.
"You know me, I hate chasing, but the near-term history in trading these skyrocketing retailers dictates that they aren't over after the first day, no matter how high they go," he told investors. "We've got a Pamplona-style running of the bulls going on right now in retail, and the shorts? They're just being trampled day after day after day."