Cramer's 'Mad Money' Recap: March 19

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"What's it mean when stocks goes higher on the worst of news?" Jim Cramer asked the viewers of his "Mad Money" TV show Thursday.

Cramer said it means that people think the worst is behind us.

Cramer brought up the case of FedEx (FDX Quote) where he said it's almost impossible to imagine how the stock could rally in the face of a 75% profit decline. Yet instead, investors chose to hone in on CEO Fed Smith's comment that "we do believe we've seen the worst of the declines."

Just three short months ago, said Cramer, the markets would not have believed comments like these from a CEO. What's changed? Cramer said there's now leadership in the markets, and where there are leaders, eventually there are followers as well.

According to Cramer, this market is being led by oil above $50 a barrel, by technology with its upside surprises, and by the banks with their swing towards profitability. The markets are no longer a bottomless pit of despair, said Cramer, and soon the hedge funds and short sellers will also reverse course and join in.

Adding to the virtuous circle are the food and drug stocks, both of which got clobbered today as money continues to move away from those sectors. "People feel like the worst is over," said Cramer, "they're following the leaders."