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NEW YORK ( TheStreet) -- Today's selloff hasn't changed the market's tune, Jim Cramer told "Mad Money" TV show viewers Thursday.
Cramer said there are two shortages that define the market: a shortage of new homes and a gold shortage, and both of those trends remain intact.
Today we saw a big gain in existing home values, said Cramer, news that confirms the strong earnings from Toll Brothers (TOL). Housing in on the mend in the U.S., even in hard-hit areas like Arizona and New Mexico.Why do home values matter to the markets? Cramer said it's because approximately 10 million homeowners are currently underwater on their mortgages. Rising home values can break that cycle, something that already appears to be happening at companies like Sherwin-Williams (SHW) and Williams-Sonoma (WSM). When homeowners can put money into their homes and get more money out of them, that's exactly what they do. Housing is a big driver of the U.S. economy, said Cramer, so as long as the housing trend continues to improve, so, too, will the economy. So what about gold? A rally in gold usually means investors are panicking, but in this case it means the Europeans are worried about their currencies, something that Cramer hopes will spur Germany into action to help its ailing neighbors. With the Currency Shares Euro Trust (FXE) also on the rise, Cramer said Germany likely won't have a choice but to help, which also would be a boon for the markets. Keep your eye on housing and gold, said Cramer, and investors will have their fingers on the pulse of the market.
Executive DecisionIn the "Executive Decision" segment, Cramer spoke with Marc Benioff, chairman and CEO of Salesforce.com (CRM - Get Report). Cramer wanted an update on where the company is heading. Benioff said that Salesforce continues to win major deals at the expense of traditional enterprise software platforms, a trend that led to the company's 34% growth during the quarter. He said the company continues to make major investments into its platforms and remains focused on revenue growth.
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