RealMoney Radio Recap: Shakedown Street

Contrary to common belief, the "big shake-ups" at Bristol-Myers (BMY - commentary - Cramer's Take) and Hewlett-Packard (HPQ - commentary - Cramer's Take), the good numbers from Best Buy (BBY - commentary - Cramer's Take) and the better numbers from Goldman Sachs (GS - commentary - Cramer's Take) are not events that are driving the market this week, Jim Cramer said on his "RealMoney" radio show Tuesday.

It is actually the options on ETFs and how the various indices are working that are causing moves in the market, he said.

Cramer owns Bristol-Myers and Goldman Sachs for his charitable trust, Action Alerts PLUS.

This means "the normal rules of a good company plus good results equals a good stock price, are not applying this week," Cramer said. Instead, the rally is index related and not stock specific, he said.

Looking at housing, Cramer said that despite all the negative news on the sector, "homebuilding stocks are not going down." In fact, some such as Home Depot (HD - commentary - Cramer's Take) are going up.

"The homebuilding stocks are rallying furiously because two bubbles, that factor heavily in the housing sector have burst," Cramer said.

First, the costs of commodities that make up the material to build a home, such as copper, steel, nickel and oil, have gone down, he said. In addition, there is a slowdown in the number of homes being built.

"With the economy and jobs and the population growing -- that should take out the excess housing inventory," Cramer said, adding that the bubbles bursting is a signal that the Fed might be done raising rates.

---

At the time of publication, Cramer was long Sears Holdings, Goldman Sachs and Bristol-Myers Squibb.

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. Listen to Cramer's RealMoney Radio show on your computer; just click here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here.

TheStreet.com has a revenue-sharing relationship with Traders' Library under which it receives a portion of the revenue from Traders' Library purchases by customers directed there from TheStreet.com.