TheStreet.com TV Recap: Viewing Stocks Through a Fed Prism

On Tuesday, retail stocks got an upgrade and went up. A lot of market players see a stock price and think the quarter must have been good, but in fact "the Saks (SKS Quote) quarter was not that good," he said. "There was no gross margin improvement and Saks is now annualizing some really hard compares." That stock, Cramer said, has gone from being a strong buy in his book to being a hold.

"Lowe's (LOW Quote) had nothing good to say," he continued. "They did mention they were going to annualize easy comparisons, but a lot of that is because lumber costs have come down and some of that is also because the northeast had better weather than last year."

The stock went up from $26 to $29 despite this because "the Fed has changed the psychology, and their downtick, which is basically what they predicted, is now considered to be better with a notion that there could be someone to rescue Lowe's," Cramer explained.

Historically, retail has been "a fabulous place" to be when the Fed stops raising rates and starts cutting. "People need to think of that prism," he said. "They can't just look at the company," because otherwise they'd be shorting Lowe's.

"What I'm emphasizing is use the lesson I've learned, which is that don't be so granular," Cramer advised. "Don't look at Lowe's and puzzle over why it is going up. Look at it and understand that we've flipped in the ways we look at things."