Cramer: This Market Wants to Go Higher

If economic reports being released this week are positive, the market may climb for the rest of the year as cheap money drives investments, CNBC's Jim Cramer said Monday.

JC Penney, for example, lined up a five-year $1.75 billion financing package on Friday without an equity component, which many in the market expected. "This shows you this market wants to go higher. There isn't any sign that there is a turn in (JC Penney's) business and no one cares," Cramer said on "Squawk on the Street."

"It's a buoyant market, and I think the data this week, if it's benign, will make it so that we are beginning to have people thinking it could be a 15 percent plus S&P year, which would be rather remarkable," he said.

In this environment, companies and investors alike are "reaching for yield," which causes a certain type of buyer appetite, he said.

"If you have a U.S. that's not as strong and we know that rates are not going up, we want that 3 (percent) and change yield again," Cramer said, noting that there is a sense that investors want to rotate back into a company like Pfizer again.

He added that a floor has been put in for companies because of their dividend yields. For example, American Electric Power is one of the most expensive stocks based on its price to earnings ratio, he said. However, because of a dividend yield around 4 percent, investors still flock to it.

Cramer added that dividend payers like AT&T are "probably done going down," Apple is "getting attractive" and Disney "has momentum" in this environment, especially with the blockbuster film "Iron Man 3" hitting theaters this week.

"If we get a bottom in Europe, all these companies that we fret about in terms of revenue growth, we're going to say 'why didn't we buy them?' " he said. Cramer expects to see a bottom in the European economies when the governments focus on growth-creating activities instead of simply talking about them, such as environmental over-regulation. "What you need to see is a mindset change," he said.

Reading into last week's earnings, Cramer said that D.R. Horton was a big positive, demonstrating that the housing market was getting healthier. However, AT&T's earnings suggested that small businesses were still in trouble. When the Fed looks at this data, they're not likely to tone down their stimulus, he said.

However, with borrowing rates for European countries heading down, Cramer thinks this gives opportunity for troubled countries. "The issue had been that these countries couldn't borrow, now they can borrow all they want, so maybe they should borrow," he said. "If (Italy) wants to do $100 billion tomorrow, there will be demand for (the debt)." Interest rates on Italy's 10-year bond now sits below 4 percent.

"I'm waiting for copper to bottom," he said. "I do believe that if you don't see copper bottom, you're going to continue to have a bifurcated market of haves and have-nots."

— By CNBC's Paul Toscano. Follow him on Twitter and get the latest stories from "Squawk on the Street" @ToscanoPaul