Cramer's 'Mad Money Recap': Play by the Rules

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."

In fact, oil stocks didn't keep going up just because oil prices kept going up. They went up because the analysts had to keep their estimates too low and had to keep sell ratings on some oil stocks that kept blowing away the analysts' estimates, Cramer said.

However, the same holds true on the negative end, he continued. Although analysts were bearish on stocks such as eBay (EBAY Quote), Amazon (AMZN Quote) and Lucent (LU Quote), before these stocks had "serious declines," they should have stayed negative longer because they could have probably saved a lot of market players from the pain of the stocks' further declines.