The Fed Has Got Your Back

This market likes this Fed. The market knows that the Fed is going to backstop them if things go bad. That, plus, it is the last day of a great month, and the buyers who waited until the big bad event was out of the way now are in buying in full force.

None of this should surprise you. The Fed is not looking at GDP or gold. It is looking at Countrywide (CFC - commentary - Cramer's Take) and Ambac Financial (ABK - commentary - Cramer's Take). The market is worried, as it should be, about MBIA (MBI - commentary - Cramer's Take), because MBIA doesn't know to be worried about itself. Notice, the housing-related stocks needed a half-point, they only got a quarter, and they can't rally. Everything else has.

That's because the buyers know the Fed is going to cut just fast enough to ease these companies out of existence and not shut them down at once. It is going to let those stocks go down, but it is not going to let them destroy the economy. That's why you do a quarter and not a half. That's why you do a quarter and not nothing.

I took this as a great moment for all of the stocks that are doing well to do better. I want to add retail here, but the market won't let me ... yet!

So, the Fed is looking at the ABK/MBIA complex and looking out for us.

That's why we get a rally. That's why we will keep rallying.

At the time of publication, Cramer had no positions in stocks mentioned.

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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. Watch Cramer on "Mad Money" weeknights on CNBC. Click here to order Cramer's latest book, "Mad Money: Watch TV, Get Rich," click here to order his 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.

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