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NEW YORK (
TheStreet) -- Have the markets lost their minds or did Friday's miserable unemployment number just not matter?
That's the issue Jim Cramer pondered. He told his
"Mad Money" viewers that while it might seem unfathomable the markets could rally on a day with so much bad news, in reality the markets' reaction makes perfect sense.
Cramer said that first, with the economy still stalled, the markets are once again hoping for an early Christmas present from the Federal Reserve next week. If things get bad enough, the Fed will surely have to act. At least, that's the thinking on Wall Street.
Second, Cramer reminded viewers the U.S. is no longer at the center of the economic universe -- Europe is, and hope still springs eternal the continent is about to do the right thing.
Third, Cramer said the Chinese pulled the trigger on some big stimulus projects, which is great news for companies
United Technologies(UTX - Get Report),
Caterpillar(CAT - Get Report) and
Fourth, the woes at
Intel(INTC - Get Report) prove weakness in PCs, not weakness in technology overall, which is why
Apple(AAPL - Get Report), a stock he owns for his charitable trust,
Action Alerts PLUS
, along with
Google(GOOG - Get Report) and
Amazon.com(AMZN - Get Report) are all hitting highs.
Finally, Cramer said the markets are taking note to the fact that no sitting president has ever overcome high unemployment. Thus the markets are betting that Mitt Romney might have a chance in November, which would also be good for the markets.
Put all of these factors together and Cramer said it's easy to see why the markets were able to shrug off today's unemployment number and not get crushed as they would have in months past.
Next Week's Game Plan
All eyes will be on the Federal Reserve next week, Cramer told viewers as he laid out his "Game Plan" for next week's trading. Cramer said the Fed's meeting on Wednesday and Thursday will be key for the direction of the markets.
But beyond the Fed, Cramer said the week begins with Chinese economic data on Sunday. If these results are disappointing and with no interest-rate cuts, the sellers will be out on Monday and investors can look for their Friday gains to disappear.