Cramer's 'Mad Money' Recap: The Dow Also Rises

Not only does the merger allow CME to raise its fees on the increasing trades, but the future cash flow with the merger should go through the roof, Cramer said. Plus, as the company mostly has fixed costs, and as it makes more money, most of it should go to the bottom line, he said.

Moreover, the stock may look expensive, but its earnings estimates are too low, Cramer said. CME is cheap, has accelerating revenue growth and is the "perfect play" on the volatility of the market, he said.

Hair There and Everywhere

Cramer devoted his entire "Sell Block" segment to explaining why people are selling companies that had better-than-expected earnings.

Buffalo Wild Wings (BWLD Quote), General Cable (BGC Quote) and MasterCard (MA Quote) all had better-than-expected quarters, but they all got "crushed."

"Bar and hair are two tricks of the trade," he said. "They explain the eternal disconnect between the companies and their stocks."

One of the reasons these companies fell in a span of two days is because they all beat their quarterly estimates three times. "They've set the bar higher," Cramer said. When they reported a fourth time, simply being better than expected was not good enough.

In addition, "in each case we got, what they call on Wall Street, hair on the quarter," he continued. What this means, Cramer explained, is that the quarter wasn't clean, there was something wrong with it.