Cramer's 'Mad Money' Recap: The Catalysts Behind the Rally (Final)

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NEW YORK (TheStreet) -- After days of brutal declines, investors finally caught a break and saw the markets break to the upside, Jim Cramer told the viewers of his "Mad Money" TV show Tuesday.

Cramer identified four keys to the market's rebound. First, he said the markets are deeply tied to the European markets. He said anytime a country is in trouble, the hedge funds and money managers head for the exits. That's why when Jean-Claude Trichtet, the president of the European Central Bank, changed his travel plans to fly back from Australia, the markets surged on the possibility of a bailout for Greece. Cramer said not even President Obama could keep them down.

Second, Cramer said the markets love a weak U.S. dollar. He said while it may seem counter intuitive to bet against your own country, money managers know that a weak dollar allows multinational companies like Coca-Cola (KO) to make money overseas and convert it into tons of greenbacks.

The third thing that allowed the markets to rally was oil, said Cramer. He said the markets want to see oil head higher. This too may seem counter-intuitive, he said, but high oil prices mean the worldwide economy is growing, something the markets love to hear. Oil can't be going higher if things are bad, he said.

Finally, Cramer said copper allowed the markets to rally. Copper, like oil, is a gauge on the growth of China and the rest of the world. As copper prices headed higher, so too did the markets.

Cramer said all of these catalysts are tangential to how companies here in the U.S. are actually doing or how much they're actually earning. He said they're what the markets are fixated on.