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Cramer: Keep an Eye on Europe

What I've been saying is, it hasn't impacted us. It hasn't impacted us. You had a big percentage move in January because it wasn't impacting us. Well, new calender month, new talk -- impacting us.

I think that the combination of the guy wanting the currency lower -- which then makes it so that we feel like, well perhaps we're going to lose our advantage because of a weaker dollar -- and not doing anything with the rates, is an unholy move and making it so that our stocks could get hammered. We were talking about flow of funds into international funds.

Debra Borchardt: Right. We've definitely seen the inflows on the equities side, much bigger . . . huge record numbers in January. I believe 65 billion. We're seeing these numbers continue into February, going into the global equity funds, which I felt was very interesting.

Jim Cramer: Right. Why there?

Debra Borchardt: So, is that investors seeing value there?

Jim Cramer: I think a lot of people . . . we think that is undervalued. Now, Europe has already moved a lot, Europe had a good move.

Debra Borchardt: But that's a play that Europe's going to come up.

Jim Cramer: In terms of the conundrums right now, you have parts of Europe doing well, but they could falter. You have other parts of Europe with 25% unemployment like Spain, although they have off the books income. You say to yourself, well why are their rates still higher than us? They're in much more tenuous shape. You have a currency that still makes no sense to a lot of people.

So, let's put Europe back on the radar screen on the international stocks. Let them take down the domestic stocks...Europe take down domestic stocks like retail, which are weak this morning. I think it's more of an S & P issue. The good ones are week along with the bad ones. Then say that housing is going to continue to rebound so you buy those stocks into the weakness.

Debra Borchardt: I was going to say, when we were talking about Draghi and his comments, last week we had Germany saying that they wanted their gold back and they were talking a lot of their physical gold back. That's got a lot of people a little on edge about Europe.

Jim Cramer: Well yes, that's another great point. What is that about? Do they not trust the system? Europe is not a black hole of uncertainty. Europe is a negative. We had hoped that it would be a neutral by now, but it's still a negative. That's how I weigh it.

Debra Borchardt: OK. As Jim is saying, we're just not out of the woods yet on Europe.

Jim Cramer: Don't be complacent.

Debra Borchardt: Don't be complacent. Keep that eye on Europe right now.

-- Written by Debra Borchardt in New York

>To contact the writer of this article, click here: Debra Borchardt.
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.
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