"There's a lot of situations today where we basically didn't think companies could make as much money as they are making," said Jim Cramer on Monday's "Stop Trading!" segment on CNBC.
Cramer said he would have expected
, recently trading up 3.2%, "to be down huge." The company
, with earnings tumbling year over year but still beating analyst expectations.
another example," said Cramer. He said as he was watching its earnings report, he was thinking, "'This release is not so great,'" and then "Boom! The stock takes off."
He said that with news that Eaton's dividend isn't at risk, and with the company actually raising numbers, it was as if the shorts had nowhere to go. "There was nothing in Eaton that makes me want to pay up unless I was short and can't take it anymore," he said. The stock was recently up 7.4%.
"No one really cares right now whether business is strong or not," said Cramer. "They just thought these stocks got too hammered."
This is a notable change in the way people are thinking about the market, he said. "People are saying leap before you walk." Even though this means "the homeworkers are getting hurt," Cramer said, "I'm not even against it, because I've seen these rallies before, and they work."