Cramer's 'Mad Money' Recap: Bye-Bye, Bottom

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"This is what the bottom looks like," Jim Cramer said Wednesday on his "Mad Money" TV show.

Cramer saw indicators of a market bottom Wednesday that have failed him only one time in his career: the market crash of Oct. 19, 1987. Cramer says we're not headed for a repeat, which means "the bottom is in ... this was a ... reversal day."

Cramer said the day started out as ugly an October day in the market as he's seen. The headlines about Intel's (INTC - Cramer's Take - Stockpickr) earnings were negative even though the semiconductor maker's results were not that bad. The European markets were down big. Seasoned players were emailing Cramer with predictions of doom and gloom. The housing sector was being hit with downgrades. And, today was the 18th anniversary of Black Monday. But the market never does what everyone thinks it will do, said Cramer, and today was a day one had to buy stocks.

A caller asked if Wednesday marked a real bottom or just a bear market rally. Cramer said he believes Wednesday was the start of something bigger than just a bear market rally. But, he said, we'll only really know in hindsight. So, even if one is bearish, he believes higher prices are coming from which one could sell.

In response to a question about what caused the rally Wednesday, Cramer said it wasn't any particular data point. It was a function of real buyers coming into the market, he said, because prices had gotten too low. Pessimism had gotten too great.

VeriSign Signal

Cramer has changed his tune on VeriSign (VRSN - Cramer's Take - Stockpickr) after RealMoney.com contributor and TheStreet.com Internet Review author James Altucher brought the stock to his attention. Cramer had always dismissed VeriSign simply because the stock had been a poor performer at times in the past. But Cramer said that upon taking a closer look, VeriSign is "massively undervalued" and has a number of ways it can win.