Cramer's 'Mad Money' Recap: Heavily Hyped and Shorted

"If you're an analyst, and you're covering the oil patch, you always need to have some buys, some holds and some sells, Cramer said. "Even if oil is in free-fall, you're under a lot of pressure to put a buy on at least one or two oil companies. ... You can't say everything is a buy or everything is a sell."

Although this might be "terrible" for the analysts, it's great for investors, as it means "the Street will almost always treat a sector that's en fuego as being a lot less en fuego than it actually is," he said.

Therefore, people can make money by using this as an indicator to help get into hot sectors that will be "underappreciated even if they look like they're already smoking."

Enthusiasm Curbed

Taking a look at oil in 2003, 2004 and 2005, Cramer offered an example of how analysts were bullish but not as enthusiastic as they should have been.

"They would say things like higher oil prices were being caused by increased demand and not just tightness of supply," he said. "They would recommend oil stocks -- but not every oil stock. A lot got left behind by the analysts and went up anyway."