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Cramer: Things Are Getting Better

There are still plenty of reasons for the market to go down, but nonetheless things are getting a little better, Cramer told viewers Tuesday.

A number of things are at work, he said.

First, stocks have been trading in tandem with news out of Europe, even if they don’t have the slightest connection to what’s happening there. So when the news was bad, the market went down and when news was good, the market rallied.

While many have been skeptical that the Europeans will fix their financial problems, Cramer thinks Tuesday’s rally—even with the late-afternoon reversal—means that there’s been a master plan working all along. Remember, U.S. Treasury Secretary Tim Geithner told the “Mad Money” host that there would not be a major banking collapse.

The rally “says that Geithner knew exactly what he was talking about,” Cramer said.

And stocks wouldn’t have had this kind of a move up if they hadn’t fallen so far. If you take a Lehman-like scenario off the table, these companies have to gain back some of those lost points.

But Cramer also thinks time is another factor. Specifically, enough time has passed since the government almost shut down due to the debt ceiling debate and Standard & Poors downgraded U.S. Treasuries.

“In fact, I believe one of the proximate causes of this rally is a genuine sense that things have gotten better in this country,” he said.

Gas prices are down, retailers and auto companies are saying better things, most of the recent Federal Reserve reports have been positive and most importantly, Washington has receded from the consciousness of American business, Cramer said.

“Maybe many of the stocks that rallied today did so on no news, but then again, they went down on no news, too,” he said. ”Now consider what happens if this country's memory of the dog days of summer might be fading. That means the consumer gets to focus on consuming, the manufacturers can go back to manufacturing, [and] the service providers can go back to servicing.”

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