The stock is up more than 7% over the past three trading days, with a bulk of those gains coming on Wednesday. This has been a stock loved by short-sellers, Cramer added.
However, this is no longer a good name to bet against. The stock has quietly rallied 30% on the year. Up 37% over the past 12 months, the stock is also the best performer in the Dow Jones Industrial Average over both time lengths.
A recent report from Credit Suisse says that mining equipment is bottoming, which would be a huge positive for Caterpillar, he reasoned. "This thing has bottomed," Cramer added.
The mining business has been a "black hole," and if that's going to be improving, it's too hard for investors to be short this name. Watch out for Caterpillar, Cramer concluded.
At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.